Arizona Department of Economic Security: sunset review

              ARIZONA STATE SENATE
RESEARCH STAFF
RECEIVED
DEC 0 3 2007
SPEAKER'S OFFICE
TO:
DATE:
JOINT LEGISLATIVE AUDIT COMMITTEE
Senator Robert Blendu, Chairman
Representative John Nelson, Vice-Chairman
November 27,2007
AMBER O'DELL
LEGISLATIVE RESEARCH ANALYST
PUBLIC SAfETY &
HUMAN SERVICES COMMITTEE
Telephonc: (602) 926-3171
Facsimilc: (602) 926-3833
SUBJECT: Sunset Review of the Department of Economic Security
Attached is the final report ofthe sunset review ofthe Department ofEconomic Security, which
was conducted by the Senate Public Safety and Human Services and the House of Representatives
Human Services Committee of Reference.
The Committee of Reference recommends that the Dcpartmcnt of Economic Sccurity be
continued for tcn years.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Timothy S. Bee
Senate Members
Senator Linda Gray, Cochair
Senator Chuck Gray
Senator Jack W. Harper
Senator Leah Landrum Taylor
Senator Victor Soltero
Department of Economic Security
Office of the Auditor General
Arizona State Library, Archives & Public Records
Senate Majority Staff
Senate Research Staff
Senate Minority Staff
Senate Resource Center
AO/jas
Attachment
Speaker of the House of Representatives
Representative James P. Weiers
House Members
Representative Pete Hershberger, Cochair
Representative Nancy K. Barto
Representative David Bradley
Representative Chad Campbell
Representative Andrew M. Tobin
House Majority Staff
House Research Staff
House Minority Staff
Chief Clerk
Senate Public Safety and Human Services and
House of Representatives Human Services
Committee of Reference Report
DEPARTMENT OF ECONOMIC SECURITY
Background
Pursuant to A.R.S. § 4] -2953, the Joint Legislative Audit Committee (JLAC) assigned the
sunset review of the Department of Economic Security to the Committee of Reference comprised of
membcrs of the Senate Public Safety and Human Services and the House of Representatives Human
Services committees.
Established by the Legislature in 1972, the Department ofEconomic Security (DES) combined
the Employment Security Commission, the State Department of Public Welfare, the Division of
Vocational Rehabilitation, the State Office ofEconomic Opportunity, the Apprenticeship Council and
the State Office of Manpower Planning. In] 974, the State Department of Mental Retardation was
added to DES. For FY 2006-2007, DES has 5,680.8 full-time equivalent positions and a budget of
$2,512,345,600, including $718,950,200 from the state General Fund.
DES is organized into nine divisions that provide protective, social and community services;
employment and economic assistance; and operations support. There are three administrative divisions,
and the following six program divisions:
• The Division ofChildren, Youth and Families (DCYF) provides child protective services, foster
care services, kinship care, independent living services for young adults, adoption services, in­home
family services, intensive family services and substance-abuse treatment services for
families whose children are at imminent risk of out-of-home placement.
• The Division of Child Support Enforcement (DCSE) administers Arizona's child support
enforcement program, providing services that include locating absent parents, establishing legal
paternity for children born out of wedlock and establishing legal obligations to pay child
support. DCSE enforces and collects child support through a variety of administrative and
judicial remedies and is responsible for the State Disbursement Unit, which processes and
distributes child support payments.
• The Division of Benefits and Medical Eligibility (DBME) administers the Temporary
Assistance for Needy Families (TANF) Cash Assistancc, Food Stamps and state-funded General
Assistance programs. In addition, DBME determines eligibility for the state's medical
assistance program (AHCCCS), as well as supplemental security income through its Disability
Determination Services Administration.
• The Division of Developmental Disabilities (DDD) provides services to individuals with
developmental disabilities and their families. Services include home- and community-based
services, residential and day programs, children's services and services to children in foster care.
In addition, DDD is the AHCCCS contractor for the Arizona Long Term Care System
(ALTCS). ALTCS-enrolled individuals receive medical carc from DDD in addition to the other
services they need.
1
• The Division of Aging and Community Services (DACS) provides and contracts for services
such as emergency and energy-related assistance, food distribution information for the hungry,
rural food banks, shelter and supportive services to victims of domestic violence, refugee
resettlement services and shelter for the homeless. Adult services programs include the
supplemental payments program, home care, congregate and home-delivered meals, case
management, the State Health Insurance Assistance program and legal assistance.
• The Division of Employment and Rehabilitation Services (DERS) administers Arizona's
Unemployment Insurance, Job Service and Vocational Rehabilitation programs; provides job
training opportunities through administration ofthe federal Workforce Investment Act and the
Jobs program; and administers child care programs and independent living rehabilitation
serVIces.
In 2005, the Office of the Auditor General (OAG) performed a sunset audit ofDES, issued six
reports and made approximately 90 recommendations to improve perfonnance. The OAG noted during
its presentation at the public hearing held November 28, 2005, that DES agreed with the
recommendations and that many of them had already been implemented. In 2006, the Legislature
continued DES for two years and required the OAG to report in 2006 and 2007 the progress ofDES in
implementing the OAG's recommendations to the Senate Public Safety and Human Services and the
House of Representatives Human Services committees and the Committee of Reference.
Committee ofReference Sunset Review Procedures
The Committee of Reference held one public meeting on November 19, 2007, to hear the
OAG's presentation regarding the progress of the implementation of its 2005 recommendations; a
response by DES, including the sunset factors and required agency factors (A.R.S. § 41-2954); and to
receive public testimony.
Committee Recommendations
The Committee of Reference recommends that the Department of Economic Security be
continued for ten years.
Attachments
1. Meeting Notice
2. Minutes of Committee of Reference Meeting
3. Statutory Sunset Factors and Required Agency Factors
4. Supplemental Questions
5. Department of Economic Security Annual Report: FY 2005-2006
2
REVISED REVISED REVISED
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.us/lnterimCommittees.asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE COMMITTEE ON PUBLIC SAFETY AND HUMAN SERVICES
HOUSE OF REPRESENTATIVES COMMITTEE ON HUMAN SERVICES AND
SENATE PUBLIC SAFETY AND HUMAN SERVICES AND HOUSE HUMAN SERVICES
COMMITTEE OF REFERENCE FOR STATUTORY AUDITS RELATED TO THE DEPARTMENT OF
ECONOMIC SECURITY
Place:
Date:
Time:
1.
2.
3.
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5.
6.
7.
8.
Monday, November 19, 2007
9:00 A.M.
SHR 109
AGENDA
Call to Order
Opening Remarks
Presentation on TANF cash assistance
Presentation on question and answer documents and information briefs related to the
Department of Economic Security prepared by the Office of the Auditor General: Child Abuse
Hotline, Substance Exposed Newborns, Federal Grant Monies, Federal Deficit Reduction Act
of 2005, In-Home Services Program, Confidentiality of CPS Information and Licensed Foster
Homes
Presentation on the Department of Economic Security Sunset Reports by the Office of the
Auditor General pursuant to Laws 2006, Chapter 330
• Response by the Department of Economic Security and presentation of sunset factors
• Public Testimony
• Discussion
• Recommendations by the Committee of Reference
Presentation on the Division of Children, Youth and Families Performance Audit by the Office
of the Auditor General conducted pursuant to Arizona Revised Statutes, Section 41-1966
• Response by the Department of Economic Security
• Public Testimony
• Discussion
• Recommendations by the Committee of Reference
Presentation on the Division of Child Support Enforcement Special Audit by the Office of the
Auditor General conducted pursuant to Laws 2006, Chapter 209
• Response by the Department of Economic Security
• Public Testimony
• Discussion
• Recommendations by the Committee of Reference
Adjourn
Page I of2
Members:
Senator Linda Gray, Co-Chair *
Senator Chuck Gray *
Senator Jack Harper *
Senator John Huppenthal
Senator Leah Landrum Taylor *
Senator Rebecca Rios
Senator Victor Soltero *
*Committee of Reference Members
10/18/07
11/7/07
br
Representative Pete Hershberger, Co-Chair *
Representative Mark Anderson
Representative Nancy Barto *
Representative David Bradley *
Representative Judy Burges
Representative Chad Campbell *
Representative Mark DeSimone
Representative Barbara McGuire
Representative Rick Murphy
Representative Andrew Tobin *
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: (602)926-4231 (voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 2 of2
·,
ARIZONA HOUSE OF REPRESENTATIVES
Forty-eighth Legislature - First Regular Session
SENATE COMMITTEE ON PUBLIC SAFETY AND HUMAN SERVICES
HOUSE OF REPRESENTATIVES COMMITTEE ON HUMAN SERVICES AND
SENATE PUBLIC SAFETY AND HUMAN SERVICES AND HOUSE HUMAN
SERVICES COMMITTEE OF REFERENCE FOR STATUTORY AUDITS
RELATED TO THE DEI>ARTMENT OF ECONOMIC SECURITY
Minutes of Meeting
Monday, November 19,2007
SHR 109 -- 9:00 a.m.
Pursuant to Laws 2006, Chapter 330, Section 4, Cochairman Gray and Cochairman Hershberger
called the committees to order at 9:07 a.m.
Members Present
Senator Jack Harper*
Senator Leah Landrum Taylor*
Senator Rebecca Rios
Senator Victor Soltero*
Cochairman Senator Linda Gray*
Senator Chuck Gray*
Senator John Huppenthal
Representative Mark Anderson
Representative Nancy Barto*
Representative David Bradley*
Representative Chad Campbell*
Representative Barbara McGuire
Representative Rick Murphy
Representative Andrew Tobin*
Cochairman Representative Pete Hershberger*
Members Absent
Representative Judy Burges
Representative Mark DeSimone
*Committee of Reference (COR) Members
Cochail111an Gray explained that because of statutory requirements, the Senate Committee on
Public Safety and Human Services and the House of Representatives Committee on Human
Services were called to this meeting, but only the Committee of Reference members arc
permitted to make recommendations and vote.
PRESENTATION ON TANF CASH ASSISTANCE
Tracy L. Wareing, Director, ADES, narrated a presentation on Temporary Assistance for Needy
Families Cash Assistance Program (TANF) (Attachment 1).
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November] 9,2007
Ms. Wareing responded to questions posed by Committee members as follows:
• There are procedures to ensure that recipients of TANF have legal presence in the u.s.
and are eligible to receive services according to federal law.
• There is not a state requirement that applicants or recipients of cash assistance must be
tested for drugs.
• The disabled community would not reach the 60-month lifetime benefit limit.
Technically, six-month extensions could continue to be granted. In addition, there are
many programs available for the disabled through the Division of Developmental
Disabilities and Vocational Rehabilitation programs.
• There are additional extensions for persons in rural areas.
• Ms. Wareing explained that according to state law, the 60-month time clock did not begin
until October 2002.
Senator Harper inquired as to whether there were any Committee members who stated they
would have a conflict of interest in renewing any section of ADES.
Cochairman Gray asked if Senator Harper was referring to COR members. He replied yes, and
Cochairman Gray responded no.
Senator Harper requested that his written inquiry be placed in the minutes of the meeting
(Attachment 2), along with any declaration of any member who might declare a conf1ict of
interest. Cochairman Gray agreed with the request.
Dan Hunt, Office of the Auditor General, narrated a Presentation on ADES/DCYF/CPS
information briefs and questions-and-answers documents (Attachment 3).
Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, answered
questions posed by Committee members as follows:
• The department is in the process of evaluating the In-Home Services Outcome Goals for
contracts awarded in 2006.
• Child abuse protection laws take effect at the time of a child's birth. ADES does not
have jurisdiction to intervene with an individual who is using alcohol or legal substances
during a pregnancy.
• If DCYF receives a report through CPS that a woman is pregnant and is abusing
substances, the individual is referred to a substance abuse program for evaluation and
assessment. DCYF has no legal authority to order or mandate the individual to comply
with a referral. There is no penalty for an individual who uses alcohol or illicit drugs
during a pregnancy.
• Access to Families First, the substance abuse program available through the child welfare
system, is a tremendous asset for Arizona. According to data received through periodic
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November 19,2007
2
drug testing, sixty percent of the individuals referred to the program complete the
program and maintain abstinence.
• A medical doctor is required to report an incidence of potential abuse or neglect of a
child.
• If illicit substances or drug paraphernalia were discovered during a home investigation,
that information would be reported to law enforcement.
• Because of the Deficit Reduction Act, there will a $17 million reduction in
reimbursement from the federal government on an annual basis. Last year, ADES did
request, and receive a supplemental appropriation from the Legislature.
• As to the $10 million deficit, Mr. Deibert explained that when ADES receives definitive
rules from the Children's Bureau at HHS as to what they will reimburse, the division
would immediately change procedures to ensure the deficit does not grow.
ADES Follow-up to Sunset Review
Shan Hays, Office of the Auditor General, narrated a presentation of the ADES Follow-up to
Sunset Review (Attachment 4).
DES CONTINUATION HEARING
Tracey Wareing, Director, ADES, responded to the Auditor General by narrating a presentation
on DES Continuation Hearing (Attachment 5). Ms. Wareing answered questions posed by
Committee members as follows:
• ADES has closely monitored eligibility and accuracy determinations have met most
federal standards over the last few years. The improvement recommendations from the
Auditor General have benefited the programs.
Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, explained that if
a child is removed from a biological parent, and there is a current child support order for that
child, the Child Welfare System could receive that payment to offset state and federal costs
associated with providing out of home care for that child. With the permission of the biological
caregiver parent, ADES can request a child support order from the Court for an absent parent.
Ms. Wareing continued with her presentation. She responded to questions posed by Committee
members as follows:
• ADES has seen minimal impact from the increase in the m1l1lmUm wage on the
developmentally disabled community's ability to work, partly due to involvement of the
Industrial Commission. It is important for those individuals who are capable of work to
receive a full wage.
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November] 9,2007
3
Senator Leah Landrum Taylor commented that from the information presented to the Committee,
many improvements have been made, and she believes that ADES should receive a ten-year
extension.
Sharon Sergent, Deputy Director, ADES, in response to query from Representative Tobin
regarding the accuracy of processing unemployment insurance and eligibility, explained that the
percentage of overpayment is approximately 11 percent. She said she would verify that number
and report back to the Committee.
Ms. Wareing responded to questions posed by Committee members as follows:
• The number of finalized adoptions has increased every year for the past several years.
• ADES is working on an innovative project in conjunction with the Department of
Corrections. When a person who has children is being released from DOC, the Family
COlmection Team coordinates with the staff from DOC prior to, and after release, to
determine what support services can be provided for the family.
• There are some circumstances under federal law wherein a person who is not a citizen
may obtain a social security number.
• Ms. Wareing stated she would provide the Committee with information regarding the
curriculum for cultural competency training.
Senator Soltero moved that the Committee of Reference make the recommendation
to continue the Arizona Department of Economic Security for ten years.
Cochairman Hershberger seconded the motion.
Mr. Tobin said he had not had all of his questions answered. He said he was uncomfortable with
recommending a ten-year extension.
Cochairman Hershberger said that ADES receives extensive scrutiny by the Legislature on an
on-going basis. He said he believes the completion of almost all of the ninety recommendations
reflects the ADES process of continual improvement. He explained that regardless of the length
of continuation, the Legislature would maintain responsibility for oversight of the agency. He
said he respectfully disagreed with a shorter period of time.
Cochairman Gray stated there have been many improvements to the agency under the leadership
of the new Director of ADES, and she commended the Director.
Senator Soltero said that the Committee could request an audit of ADES at any time if problems
develop. Cochairman Gray agreed.
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November 19,2007
4
Question was called on the motion that the Committee of Reference make the
recommendation to continue the Arizona Department of Economic Security for ten
years. The motion carried by a voice vote.
THE MEETING RECESSED AT II: 17 A.M.
THE MEETING RECONVENED AT 11:27 A.M. ALL MEMBERS WERE PRESENT
EXCEPT SENATOR CHUCK GRAY, SENATOR HUPPENTHAL, SENATOR HARPER,
REPRESENTATIVE BURGES, REPRESENTATIVE DESIMONE, REPRESENTATIVE
ANDERSON AND REPRESENTATIVE TOBIN.
Presentation on DES/DCYF Prevention Programs Performance Audit
Catherine Dahlquist, Auditor General's Office, narrated a presentation on DES/DCYF
Prevention Programs Performance Audit (Attachment 6).
Ms. Dahlquist responded to questions posed by Committee members as follows:
• A site visit by a contractor will typically take two days. The payment rate is
approximately $7,000 for each site visit report. The contract evaluator reviews family
files, various supervisory internal controls, and contacts certain family members to ensure
the quality of services received. The evaluator monitors the operation of the program
site. Based on the review, the evaluator holds an exit meeting with the site supervisor
and staff to discuss findings. If improvements are recommended, or the site staff request
particular training, a follow up visit will be scheduled.
• Ms. Dahlquist said she reviewed approximately 10 of the 58 site visit reports, and
generally, the sites seemed to be meeting requirements.
Ken Deibert, Deputy Director, Division of Children Youth and Families, ADES, thanked the
Auditor General's staff for their work in evaluation of the DCYF Prevention Program. He
explained the Healthy Families program served in excess of 6,000 people this past year, and 98
percent of those individuals served did not have contact with the CPS program. He said the
DCYF believes that at the conclusion of the six-month review by the Auditor, all of the
recommendations that were made will indicate the program has demonstrated full
implementation of the recommendations.
Mr. Deibert responded to questions posed by Committee members as follows:
• DCYF provides both individual parenting classes, as well a group training programs.
• The evaluation that contractors provide assures that DCYF is meeting standards of
accreditation for a Healthy Families Program. The monies charged for evaluations
includes preparation and review of data before going to a site, training, special
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November 19,2007
5
consultation with the program staff, preparation of reports, a long term corporate data
analysis, and ongoing consultation and support.
• The five-year contracts are awarded through the typical procurement process.
Cochairman Gray asked if there were any recommendations by the Committee of Reference.
Cochairman Hershberger noted these programs do not require a recommendation to continue.
Cochairman Gray agreed.
Presentation on ADES - Division of Child Support Enforcement
Anne Hunter, Office of the Auditor General, narrated a presentation on the Division of Child
Support Enforcement, DES (Attachment 7).
Sharon Sergent, Deputy Director, ADES, explained that ADES has concurred with all of the
Auditor General's Findings, has already implemented certain provisions, and will take steps to
address the remaining recommendations. She provided a summary of the ADES response to the
Findings.
Cochairman Hershberger thanked ADES and the Auditor General's Office for the presentations.
Cochairman Gray voiced her thanks and noted that many improvements have been made.
Without objection, the meeting adjourned at 12:23 p.m.
Yvette O'Connor, Committee Secretary
November 19,2007
(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives
available at http://www.azleg.gov/)
Senate Committee On Public Safety And Human Services
House Of Representatives Committee On Human Services
and Senate Public Safety And Human Services and
House Human Services Committee Of Reference
November 19,2007
6
ARIZONA DEPARTMENT OF ECONOMIC SECURITY
--------- 1717 W. Jefferson· P.O. Box 6123· Phoenix, AZ 85005 ---------
Janet Napolitano
Governor
Amber O'Dell
Arizona State Senate
1700 West Washington
Phoenix, Arizona 85007
Dear Ms. O'Dell:
AUG 3 1 Z007
Tracy L. Wareing
Director
Pursuant to A.R.S. §41-2594, the Arizona Department of Economic Security (DES) has prepared
the attached response addressing the 12 Sunset Factors identified in statute, the six additional
factors, and supplemental questions requested in Senator Linda Gray's letter dated July 9,2007.
We are pleased to provide this information, which clearly demonstrates both the recent progress
and continuous improvement at DES. Please note that the Department has fulfilled all of the
actions required in response to the Auditor General's recommendations, except those that
required funding that was not available. The Department looks forward to a 10-year renewal of
the agency and the opportunity to answer any additional questions in the Sunset Review hearing.
If you have any questions, please contact Herschella Horton, DES Chief of Legislative Services,
at (602) 542-4669, or me at (602) 542-3678.
Sincerely,
Tracy 1. Wareing
Director
Attachment
cc: Senator Linda Gray
Representative Peter Hershberger
Eden Rolland, House Human Services Analyst
Herschella Horton, Chief of Legislative Services, DES
Arizona Department of Economic Security
Sunset Audit
2007
Arizona Department of Economic Security
Section 1: Sunset Factors
1. The objective and purpose in establishing the agency 1
2. The effectiveness with which the agency has met its objective and purpose and
the efficiency with which it has operated 3
3. The extent to which the agency has operated within the public interest 5
4. The extent to which the rules adopted by the agency are consistent with the
legislative mandate 7
5. The extent to which the agency has encouraged input from the public before
adopting its rules and the extent to which it has informed the public as to its
actions and their expected impact on the public 7
6. The extent to which the agency has been able to investigate and resolve complaints
that are within its jurisdiction 9
7. The extent to which the Attorney General or any other applicable agency of state
government has the authority to prosecute actions under the enabling legislation 11
8. The extent to which the agency has addressed deficiencies in the enabling statutes
which prevent it from fulfilling its statutory mandate 12
9. The extent to which changes are necessary in the laws of the agency to adequately
comply with the factors listed in the Sunset Laws 12
10. The extent to which the termination of the agency would significantly harm the public
health, safety, or welfare 14
11. The extent to which the level ofregulation exercised by the agency is appropriate
and whether less or more stringent levels ofregulation would be appropriate 15
12. The extent to which the agency has used private contractors in the performance of
its duties and how effective use of private contractors could be accomplished 16
Section 2: Additional Factors
1. Describe the role and function of the agency, including major activities/projects,
accomplishments, and obstacles to success 18
2. Provide financial data, such as number of full-time employees, expenditures and
revenues and fee structure, if applicable 24
3. An identification of the problem or the needs that the agency is intended to address 1
4. A statement, to the extent practicable, in quantitative and qualitative terms, of the
objectives of the agency and its anticipated accomplishments 25
5. An identification of any agencies having similar, conflicting, or duplicate objectives,
and an explanation of the manner in which the agency avoids duplication or conflict
with other such agencies '" 26
6. An assessment of the consequences of eliminating the agency or of consolidating
it with another agency 14
Section 3: Supplemental Questions
Supplemental Questions 27
Appendix
Arizona Department of Economic Security Annual Report: SFY 2005-2006 30
..
11
Section 1
Sunset Factors
I
Arizona Department of Economic Security
Sunset Factor 1: The objective and purpose in establishing the agency;
and
Additional Factor 3: An identification of the problem or the needs that the
agency is intended to address
The Department of Economic Security (DES) is an integrated human services agency that
provides critical protective and assistance services to Arizona's children, adults and families.
The Arizona State Legislature established DES (A.R.S. §41-1954) in 1972 by consolidating the
authority, power and duties of five separate state agencies, followed by a sixth in 1974. The
intent of the 1972 legislation and subsequent amendments was to provide an integrated approach
to human services.
The DES Vision is that every child, adult and family in the State of Arizona will be safe and
economically secure.
The Department strives to achieve this through its Mission to promote the safety, well-being and
self-sufficiency ofchildren, adults andfamilies.
There are five core values that fom1 the basis for the work that DES does in the fulfillment of its
mission: collaboration, accountability, innovation, diversity and respect. These values serve
several purposes and are applied in the daily work across DES.
DES' mission is best achieved through the holistic delivery of human services across programs.
The Department's 10,000-plus employees in more than 50 programs and services at DES work
together to help many of Arizona's vulnerable citizens, including low-income working families,
abused and neglected children, individuals with developmental disabilities, the elderly, victims
of domestic violence, and those seeking basic supports (food, utility and shelter). The
Department provides services to more than 1 million Arizonans every year.
Together, DES' programs impact the safety, well-being and self-sufficiency of Arizonans. Some
of these programs include: Child Protective Services; Children Services to provide families the
tools they need to care for their children; child care assistance for working parents; Adult
Protective Services; domestic violence shelter and supports; early intervention services for
infants and toddlers at risk of developmental delays; home and community-based services for
individuals with developmental disabilities and the aged; independent living programs for both
seniors and young adults; unemployment insurance; employment assistance (including
vocational rehabilitation and job training); and child support enforcement.
These programs and services are delivered through DES offices and staff statewide, and also
through a network of contracted community-based providers. DES works collaboratively with
the communities it serves, local and national advocacy organizations, other state agencies, the
federal agencies that oversee DES' programs, the courts, and Native American tribes in the
delivery of services to the citizens of Arizona.
1
Arizona Department of Economic Security
Sunset Factor 1: The objective and purpose in establishing the agency;
and
Additional Factor 3: An identification of the problem or the needs that the
agency is intended to address
Having one agency to provide services allows those in need to find assistance in an integrated
fashion. DES staff are expected to work to work together across programs and to become
familiar with the array of services that DES provides. Co-location of those services can make this
coordination much easier. For example, the DES Avondale Multi-Service Center houses nearly
200 DES staff and contractors from seven different programs who all work together in one
office. Individuals and families have access to services and staff including developmental
disabilities, family assistance, child welfare, Family Connections, rehabilitation services, child
care and the Jobs Program.
The Department's objective is to move beyond simply delivering services and to place greater
focus on helping families gain the tools they need to effectively and permanently escape the
hardships of poverty and other barriers that currently prevent them from being self-sufficient.
While some situations warrant more intensive and longer-term involvement between DES and
families, the Department's primary focus is to prevent dependence and where possible, provide
short-term, less intrusive services and supports that help the individual or family take ownership
of their own success.
Arizona Department of Economic Security
Sunset Factor 2: The effectiveness with which the agency has met its
objective and purpose and the efficiency with which it has operated
Effectiveness and efficiency are both measured by the outcomes achieved by the families DES
serves and are based on three overarching, interrelated goals:
• Strengthen Individuals and Families;
• Increase Self-Sufficiency; and,
• Develop the Capacity of Communities.
DES' integrated approach to doing business and the Department's collaboration with families,
community partners, and other government entities provide greater accountability across the
agency and generate a more efficient and comprehensive way of delivering services. On many
occasions, DES staff and programs are the first contact families have with service providers
when seeking help for their issues. The Department often serves as a triage point, working with
families to identifY their needs and strengths, which will determine the course of their service
plan. The following are examples of three different client populations that may come to the
attention of DES:
• An individual who needs a single, often short-term service, wants it done efficiently and
within their service needs. Oftentimes, individuals interacting with a variety of DES'
programs have the same need in order to achieve self-sufficiency: immediate employment
assistance, such as helping with job search or writing a resume. These services are
invaluable to many of the DES' client populations, including individuals with disabilities,
those who have become unemployed, families involved in the child welfare system, and
seniors. Once employed, these clients frequently no longer require other assistance.
• People who need more than one service to achieve their desired outcome, but do not
present any risk to themselves or their family. These individuals require some
coordination in order to achieve this outcome. This may include individuals who are
receiving Cash Assistance, and are working toward finding employment through the Jobs
program, which is providing supportive services such as child care assistance.
• People with multiple service needs and multiple risks. These individuals often interact
with multiple agencies at the state and community levels, and typically lack support
. systems. This level of client requires collaboration with the community to help with
services that the state can not always provide and to sustain those services and stability
for the individual. Individuals and families in this group may benefit from the support of a
Family Connections team, which provides a single point of a contact for a family to access an
array of comprehensive, integrated services, with the goal of assisting the family in achieving
self-sufficiency, safety, and overall well-being.
By working with clients to determine their strengths and what services they need to achieve
safety, well-being and self-sufficiency, the Department ensures that services are provided that
effectively meet those needs and efficiently utilize available resources. Additionally, DES' focus
on prevention and early intervention helps to prevent problems from escalating into situations
that may require more .intensive and expensive services.
3
Arizona Department of Economic Security
Sunset Factor 2: The effectiveness with which the agency has met its
objective and purpose and the efficiency with which it has operated
Accountability for the effective and efficient delivery of services is a key priority for DES and is
supported in numerous ways, including DES' Efficiency Review initiatives.
DES continues to avoid costs in the delivery of services through the development and
implementation of Efficiency Review projects. The Department achieved Efficiency Review
savings of $29.9 million in fiscal year 2005 and $58 million in fiscal year 2006. The Department
will be submitting its Comprehensive Efficiency Review Tracking System report detailing fiscal
year 2007 savings in the fall of 2007. Significant cost avoidance has been achieved through
programmatic initiatives that have contributed to a reduction in the Cash Assistance case10ad and
to a reduction in the number of children placed in costly shelter and group home settings. Several
other Efficiency Review projects involve the implementation of new technologies. Specific
technological advancements within DES offer additional examples that the agency has met
effectiveness and efficiency goals:
• The FAA Communications Center provides the ability for consumers and staff to process
changes to Food Stamps, Cash Assistance and Medical Assistance eligibility information.
There are more than 2.1 million annual client eligibility changes to process statewide. The
old, paper-driven process required workers to constantly interrupt their other activities. The
communications center centralized the handling of these changes in Maricopa County,
resulting in reducing processing time by five minutes per change.
• AZTECS Replacement: Inforn1ation is critical to DES' ability to work effectively with
families. AZTECS will replace the antiquated eligibility, case management and payment
systems for what were once three separate systems in the Family Assistance, Jobs and Child
Care programs, with one modem, web-based, integrated system. The new system will
enhance service delivery, help with recruitment and retention of staff, and reduce errors in
the eligibility determination process. Upon full implementation of the replacement system, it
is anticipated that annual total funds savings will be $10 million beginning in fiscal year
2013.
• Quick Connect: This online service has streamlined family foster home licensing by allowing
licensees to input information online for initial or renewal Ecenses. The new service
provides: easier referrals of the family to a contracted service provider; access to information
through any Internet connection; tracking of a family's application; requires only updates to
current information when applying for a license renewal; improves turnaround time of
application processing; and generates cost avoidance related to eliminating paper handling
and storage. Quick Connect has effectively decreased the appEcation processing time by 50
percent, while the number of applications has increased by 40 percent ?tatewide. In addition,
paper volume has been reduced from at least 60 pieces of paper to five pieces of paper via
Quick Connect.
Arizona Department of Economic Security
Sunset Factor 3: The extent to which the agency has operated within the
public interest
DES operates within the public interest through programs and services that further the
Department's three broad goals - strengthen individuals and families, increase self-sufficiency,
and develop the capacity ojcommunities - by focusing on:
• Prevention and early intervention designed to keep individuals and families from
penetrating to deeper ends of the system.
o Healthy Families Arizona, a voluntary program that reaches out to new parents
experiencing multiple stressors that may put them at risk for child abuse or
neglect, has expanded from 23 to 58 sites across Arizona, serving more than 140
communities statewide.
o The Arizona Early Intervention Program coordinates with other state agencies and
schools to provide services to infants and toddlers with, or at risk of,
developmental delays. Early Intervention services enhance the development of
children and the capacity of families, thereby reducing future costs.
• Maximizing people's independence by working with the community to provide services
and supports.
o DES, the eight regional Area Agencies on Aging, and a contracted provider
network work together to provide home and community living supports - such as
home-delivered meals, home health aids, and caregiver support - to Arizona's
elderly population. The supports are designed to assist aging and vulnerable
individuals to remain independent in their own homes.
o Arizona remains best in the nation in helping individuals with developmental
disabilities to live independently or with their families, tailoring the majority of
supports and services to meet a person's needs in home and community-based
settings. At the end of fiscal year 2007, 88.5 percent of consumers were provided
services in their homes and communities.
• Promoting self-sufficiency by assisting families in obtaining the supports they need.
o Establishing legal paternity for the regular monthly collection of child support
payments helps to secure a child's financial future.
o Providing child care subsidies to working families can help them overcome the
only obstacle in their ability to secure employment.
o Employment services are an integral part of many clients' case plans and are
provided to individuals receiving Cash Assistance or Unemployment Insurance,
youth aging out of foster care, and individuals with developmental disabilities.
• Providing protective services to vulnerable populations.
o Through extensive work with community providers, DES has implemented a
comprehensive in-home services model to prevent many children from coming
into out",of-home care by providing services to children safely in their own homes.
5
"
Arizona Department of Economic Security
Sunset Factor 3: The extent to which the agency has operated within
the pu blic interest
o In cases when children cannot remain with or return safely to their parents, DES
assists in placing children in out-of-home care in the most family-like setting
possible, including relative care, foster care, guardianship and adoption.
o Adult Protective Services annually investigates approximately 8,000 reports of
abuse and neglect of vulnerable adults.
o DES contracts with domestic violence shelters to provide a safe haven for more
than 11,000 victims of domestic violence.
In addition to the services DES provides, the Department works closely with community
stakeholders to ensure that it is responsive to the needs of, and accountable to, the communities
is serves. The Economic Security Advisory Council (ESAC) provides input from a community
stakeholder perspective on such issues as planning, funding and implementation of programs that
support the Department's mission.
The Department also promotes public involvement and community collaboration through 19
Community Network Teams and 20 Breakthrough Series Collaborative teams statewide.
Community Network Teams are broad-based and focus on community-wide issues and
initiatives. Staff from DES are partners in those efforts. The goal of COllli1mnity Network Teams
is to develop self-reliant, self-sustaining cornnmnity organizations that mobilize local, state and
federal resources to improve the quality of life for the families in their communities.
The Breakthrough Series Collaborative consists of teams across the state, with equal
representation from families, community partners and DES staff. The Breakthrough Series
Collaborative ensures that the voice of the individual/family is heard and considered throughout
the delivery of services and builds their capacity as leaders. The team works together to identify
how DES programs, services, processes and even offices can change in order to be more family­focused,
strengths-based, comprehensive and integrated. They also develop small tests of those
changes and, when they find an effective strategy, they take leadership in spreading that strategy
to other offices or areas.
DES services have a direct, positive impact on the lives of more than 1 million children, adults
and families throughout Arizona each year, and the Department collaborates with stakeholders to
ensure that it is operating in the public interest.
6
Arizona Department of Economic Security
Sunset Factor 4: The extent to which the rules adopted by the agency are
consistent with the legislative mandate;
and
Sunset Factor 5: The extent to which the agency has encouraged input from
the public before adopting its rules and the extent to which it has informed the
public as to its actions and their expected impact on the public.
The Department of Economic Security complies with all legislative mandates for rulemaking, as
required by A.R.S. §41-l021.02 and A.R.S. §4l-l954(A)(3).
The Department derives its rulemaking authority from A.R.S. §41-1954(A)(3) and a variety of
program-specific statutes that direct the Department to adopt rules addressing specific legislative
mandates. The Department complies with all legislative mandates for rulemaking by adopting
rules that set forth the requirements for the public to access its programs and benefits. As the
Department amends and updates its regulations, it strives to draft rules that are clear, concise,
understandable and consistent with current program objectives.
Prior to the formal rulemaking process, which includes review by the Governor's Regulatory
Review Council (GRRC), the Department's draft rules undergo extensive review and editing to
ensure that they comply with state and federal laws. The Department provides opportunities for
both inforn1al and formal public input during the rulemaking process and is constantly striving to
update and improve its regulations to meet the needs of its clients. The Department publishes its
regulatory agenda annually, as required by A.R.S. §41-1021.02, and has consistently met all
statutory deadlines for mandatory reporting. Mandatory reporting includes five-year review
reports, the licensing time frame report, the five-year review report progress report, and the
substantive policy statement certification letter.
The Department actively seeks input from the public during all phases of the rulemaking process
in order to best address the concerns and questions that are most important to DES stakeholders.
In addition to uniform compliance with all statutory publishing and notification requirements, the
Department engages its stakeholders through a variety of in-person and electronic
communication methods. With virtually all of DES' rulemaking packages, DES surpasses
statutory requirements for public input by including stakeholders at the very initial stages of the
rulemaking process.
Each DES program that formulates rules maintains a list of its stakeholders and distributes draft
versions of proposed amendments to its rules well before the statutory requirement to do so.
When rule making or rule changes are applicable, public comments are sought and addressed
early in the process so that stakeholders are aware of upcoming changes before the Notice of
Proposed Rulemaking is published in the Administrative Register. The Department use a variety
of methods to keep the public informed of rulemaking activities, including e-mail, newsletters,
workgroups and the DES public Web site. Questions and comments are addressed and resolved
by in-person meetings, e-mail, phone and letters.
7
Arizona Department of Economic Security
Sunset Factor 4: The extent to which the rules adopted by the agency are
consistent with the legislative mandate;
and
Sunset Factor 5: The extent to which the agency has encouraged input from
the pu blic before adopting its rules and the extent to which it has informed the
public as to its actions and their expected impact on the public.
The Department also strives to keep the public informed of policy developments, contract
amendments and changes to general business practice. Through in-person meetings, program­specific
pages on the Department's public Web site, e-mail, community forums, online policy
manuals and participation in a variety of community advisory groups, the Department distributes
information about policy and practice and seeks input, recommendations and feedback from the
public on an ongoing basis.
Recently, the Department implemented rule changes necessitated by legislation passed in 2006
for the child care program. Although the changes were based on an exempt rulemaking package,
the Department sought extensive input from stakeholders during the rule writing process.
Department staff met over several months with a standing stakeholder committee on child care
issues, which has broad representation from a variety of entities including: child care providers,
advocates, governmental agencies and other stakeholders. Additional meetings were held with
child care providers, the Arizona Child Care Association, and Children's Action Alliance to
obtain feedback on the proposed implementation of the new rules and to assist with further
refinement of the business processes that would be implemented as a result. The exempt rule
package was filed with the Secretary of State's Office in December 2006 and the legislative
changes were implemented by DES in January 2007.
Another example of DES' commitment to public input for addressing rule changes were the
recent amendments to group home licensing rules. The Department held a meeting with
stakeholders, including staff and providers who work directly with youth transitioning out of
foster care and homeless youth, and partners from the Administrative Office of the Court,
Juvenile Justice Services Division and the Arizona Department of Juvenile Corrections. The
discussion focused on amendments required that pertain to how grouphome facilities could meet
the needs of young adult clients while still complying with licensing regulations. As a result of
this meeting and subsequent communication with the stakeholders, the Department amended the
rules by Emergency Rulemaking in June 2006 and filed a Notice of Final Rulemaking in May
2007.
Arizona Department of Economic Security
Sunset Factor 6: The extent to which the agency has been able to investigate
and resolve complaints that are within its jurisdiction
The Depmiment is proud of the work it does with communities across Arizona. Through the
work that takes place with the Economic Security Advisory Council, Community Network
Teams, Breakthrough Series Collaborative and Community Development Initiative (among
others), DES maintains a presence in the community and provides several ways in which
individuals can communicate issues they may have with the agency. Encouraging active
participation of individuals, families and community members who have actually experienced
the DES service delivery system has resulted in practices at the local level being adjusted to
better meet needs, improved cross-agency and cross-program integration of policies, and
demonstrated to community members, including the individuals and families that DES serves,
that the programs, services and staff at DES are approachable, accessible and responsive to their
concerns. The Department also looks to these groups to be a voice for other family and
community members who may have concerns that need to be addressed and to assist with
solutions.
Recognizing that complaints are typically a byproduct of miscommunication and/or a person not
understanding what to expect or what options are available to them, DES seeks input from those
on both sides of the front lines. As a result, DES is better able to respond to issues often before
they happen or need further attention.
In addition, the DES Director's Office of the Ombudsman provides customers and partners with
a confidential, neutral and informal manner to raise concerns and identify solutions, provide a
communication linkage between community members and the Department, and serve as a
change agent for resolving concerns.
The Department also responds to issues raised through the Legislative Ombudsman's Office, the
Legislative Family Advocacy Office and the Governor's Office. The Department maintains an
open, collaborative relationship with the state Ombudsman's Office and has a process in place by
which responses are expeditiously carried out.
Other mechanisms for investigating and resolving complaints include:
• The Protective Services Review Team provides an impartial, external review process for
individuals who wish to appeal cases of substantiated child abuse or neglect that have not
been assigned to the formal dependency court process.
• Legislation in 2006 created an Adult Protective Services registry to include substantiated
reports of abuse, neglect and exploitation of vulnerable adults. The statute also creates a
process enabling a person about whom DES has substantiated an accusation of abuse, neglect
or exploitation of a vulnerable adult to receive notice that the Department intends to add his
or her name to the registry and information on the person's right to appeal the decision.
• Consumers with developmental disabilities who express dissatisfaction regarding the services
they received have their issue investigated within 90 days.
9
Arizona Department of Economic Security
Sunset Factor 6: The extent to which the agency has been able to investigate
and resolve complaints that are within its jurisdiction
• Those who request an appeal regarding eligibility or benefit decisions are served by the
Department's Appellate Services Administration (ASA).
• Child care and residential facilities are monitored for compliance with acceptable standards
of care for clients by the Department's Office of Licensing, Certification and Regulation.
• The Family Advocacy Office within the Division of Children, Youth and Families reviews
and responds to complaints regarding individual cases that involve the child welfare system
and, upon request, reviews the decision to remove a child from his or her home before a
dependency petition is filed.
Arizona Department of Economic Security
Sunset Factor 7: The extent to which the Attorney General or any other
applicable agency of state government has the authority to prosecute actions
under the enabling legislation
The Attorney General has the authority to prosecute cases brought by DES, pursuant to A.R.S.
§§ 25-509,41-192,41-1963, and 46-133. The Attorney General's Office provides representation
to each of DES' programs, including legal defense when actions are taken against the
Department in both administrative and other types of court proceedings, and, through the
prosecution of individuals who have c011111Utted fraud against DES, as well as other criminal acts
authorized by statute.
In addition, the Attorney General's Office provides all required legal services for the
administrative operations of the Department, such as procurement and personnel matters. And,
the Child and Family Protection Division of the Attorney General's Office provides legal
counsel to the Department in the areas of aging and community services, benefits and medical
eligibility, child abuse and neglect, child support, developmental disabilities, employment and
rehabilitation services.
11
Arizona Department of Economic Security
Sunset Factor 8: The extent to which the agency has addressed deficiencies in
the enabling statutes which prevent it from fulfilling its statutory mandate;
and
Sunset Factor 9: The extent to which changes are necessary in the laws of the
agency to adequately comply with the factors listed in the Sunset Laws
The Department takes an active role in seeking legislation and making recommendations for
legislative changes where necessary and appropriate. The Department's diverse stakeholders and
community partners provide input in recommending legislation that promotes efficiency and
effectiveness in fulfilling statutory mandates and improving outcomes for clients.
Through the DES Legislative Services office, proposed legislation is moilltored and information
is collected to determine the expected impact of legislative changes on DES' programs and the
individuals and families served by DES. The Department continuously looks for potential
unintended consequences that may arise from existing law and monitors changes at the federal
level that impact DES' programs and clients, which includes reviewing best practice
recorrunendations from national organizations and those implemented in other states. In addition
to analyzing and determining what substantive legislative changes are required, the Department
also carefully considers what budget issues must be addressed in order to effectively carry out
DES' statutory mandate and to respond to changes in federal policy and in the social service
enviromnent.
In the past two years, DES has worked with the Legislature to enhance the current human service
delivery network and DES operations. The following DES legislation has recently been enacted:
Promote self sufficiency by clarifying the sanction process and improving the cash
assistance diversion program: Legislation passed in 2007 requires cash assistance clients to
demonstrate compliance with the work requirements rather than show an "intent to comply" in
order to avoid sanctions. This change should result in additional clients participating in work
activities. The legislation also modifies the cash assistance Grant Diversion program to allow
more clients to take advantage of grant diversion instead of using long-term cash assistance and
allow grant diversion participants to receive employment assistance and other supportive
services. These changes will make the Grant Diversion program more effective in preventing the
need for long-term cash assistance.
Conform with federal requirements for child support: In 2007, legislation sought by DES
was passed to implement a federal mandate included in the Deficit Reduction Act of 2005 (P.L.
109-171) that requires custodial parents who have never received public assistance to pay a fee
of $25 per child support case after $500 of child support has been collected on their behalf.
Improve DES' process for child support collection: In 2007, legislation sought by DES was
passed that will simplify the process for suspension of professional licenses by making it an
Arizona Department of Economic Security
Sunset Factor 8: The extent to which the agency has addressed deficiencies in
the enabling statutes which prevent it from fulfilling its statutory mandate;
and
Sunset Factor 9: The extent to which changes are necessary in the laws of the
agency to adequately comply with the factors listed in the Sunset Laws
administrative, rather than judicial process, while retaining due process protections. The law also
increases from two months to six months the arrearage threshold for license suspension and
allows DES to assist child support payors who have paid a judgment to release liens when the
obligee is unable to be located or is uncooperative. These changes will allow DES to improve
collections owed to custodial parents.
Streamline unemployment insurance services: Legislation passed in 2007 will require the
DES Appeals Board to prepare a written transcript in unemployment insurance hearings at DES'
expense only in cases where judicial review is sought by an interested part)'. Each hearing is
recorded, but written transcripts still had to be prepared regardless of whether they were
requested. The new law also changes the unemployment insurance hearing postponement
provisions to specify that a party is only entitled to a postponement upon a showing of good
cause.
13
Arizona Department of Economic Security
Sunset Factor 10: The extent to which the termination of the agency would
significantly harm the public health, safety, or welfare;
and
Additional Factor 6: An assessment of the consequences of eliminating the
agency or of consolidating it with another agency
Terminating DES would harm the public health, safety and welfare because it is the
Department's responsibility to provide critical services to Arizona's most vulnerable children,
adults and families. Through the integration of programs that work with families and
communities and collectively provide critical protective, early intervention and supportive
services to more than 1 million Arizonans, DES is able to leverage resources across a number of
programs.
Without the work that is done across DES, 35,000 reports of child abuse and neglect and 8,000
reports of abuse and neglect of vulnerable adults would not have been investigated, more than
$300 million in child support would not have been collected, working parents of nearly 45,000
children each month would not have been able to access child care with the help of the child care
subsidy, more than 14,000 homeless individuals would not have been served in emergency
shelters, and more than 24,000 individuals with developmental disabilities would not have the
supports needed to live independently or with their families.
On many occasions, DES staff and programs are the first contact families have when seeking
help for their issues. The Department's focus on prevention and early intervention and its
coordination with its commumty provider networks to find and secure necessary services help to
prevent problems from escalating into situations that may require more intensive and expensive
serVIces.
Without these and other critical services in Arizona, abuse and neglect of children and adults,
including the elderly and individuals with disabilities, could go unreported and untreated,
resulting in harm to individuals. Victims of domestic violence would have fewer options for
shelter services and supports. The absence of prevention programs that are currently provided
through the Department's integrated service delivery system would remove critical initiatives
that address the root causes of abuse and neglect of Arizona's most vulnerable children and
adults. The absence of employment, rehabilitation and training services combined with services
that help families meet basic subsistence needs would result in a significant deficit in the ability
of DES' commumty partners to meet individuals' and families' needs.
14
Arizona Department of Economic Security
Sunset Factor 11: The extent to which the level of regulation exercised by the
agency is appropriate and whether less or more stringent levels of regulation
would be appropriate
The Legislature has charged the Department with regulating family foster home licensing, child
welfare and adoption agency licensing, child and adult developmental home licensing, and
home- and community-based service provider certification. In addition, the Department issues
licenses for participants in the business enterprise program and certifies family child care homes.
The level of regulation exercised by DES is appropriate.
The Department exercises its regulatory authority in order to protect the children and vulnerable
adults served by its licensed and certified entities. The monitoring and supervision exercised
upon the Department's regulated community safeguards the health, safety and well-being of
these populations while balancing the autonomy required by licensed and certified providers.
As part of DES' continuous improvement, the Office of Licensing, Certification and Regulation
have recently debuted an online service for family foster home licensing, Quick Connect, which
allows licensees to input information online for initial or renewal licenses. This new service, in
addition to other recent efficiency efforts aimed at facilitating the timely and accurate processing
of licensing and certification applications, has served regulated entities by eliminating some of
the duplication encountered with handwritten applications for family foster home licenses. Quick
Connect has effectively decreased the application processing time by 50 percent, while the
number of applications has increased by 40 percent statewide. These efficiencies provide another
indication of the Department's commitment to balancing the needs to regulate its programs with
the responsibility to protect vulnerable Arizonans.
15
Arizona Department of Economic Security
Sunset Factor 12: The extent to which the agency has used private contractors
in the performance of its duties and how effective use of private contractors
could be accomplished
The Department is a critical member of a larger community service delivery network, and the
bulk of DES' work is done in partnership with private vendors. Department-administered
programs and services fom1 the foundation for providing a vast array of critical and essential
services across the state, and private contractors constitute a core part of this service delivery
network. Many of DES' services are best provided through contracts with community groups
that are structured to more readily meet community needs. The Department contracts and
coordinates with community-based organizations for the provision of critical services that
contribute to vulnerable individuals' health, safety and welfare.
The Department has more than 14,500 contracts and agreements with nonprofit, for-profit and
other community partners to provide services to Arizonans across the human service delivery
continuum, including: home and community-based services for the elderly and individuals with
developmental disabilities; shelter for victims of domestic violence and the homeless;
employment services; programs designed to prevent entry into the child welfare system as well
as in-home and out-of-home services for children who are in the system; education and training
for low-income families; and child care.
Specific examples of ways in which the Department engages with contractors through specific
performance-based expectations to improve the safety, self-sufficiency and well-being of
Arizonans include:
.Jobs Privatization: Contracts were awarded for the Jobs Program in March 2007 to two
qualified vendors who combined will serve 17 service delivery areas across Arizona. In July
2007, the Jobs Privatization contracted vendors began working in partnership with DES to
restructure how employment services to cash assistance recipients are delivered in order to assist
individuals to achieve self-sufficiency. These performance-based contracts have well-defined
performance and compliance measures to ensure program efficiency, community involvement
and client confidentiality. The formal transition from the DES Jobs Program to the private
contractors will be completed by October 2007.
Services to Individuals with Developmental Disabilities: The Department administers the
largest fiscal intermediary program for persons with disabilities in the United States. This
statewide program provides an avenue for consumers to hire their choice of independent
providers for home and community-based services. The fiscal intermediary assists families in the
management of authorizations of services and payments to providers. In addition, all services
except support coordination are delivered through a contracted provider network.
Rehabilitation Services: The Department awarded 22 contracts to community rehabilitation
service providers and individual employers for performance-based Employment Services in June
2007. Through a perfonnance-based contract, the primary goals for these contracted services are
to assist persons with disabilities, increase the number and rate of successful rehabilitations,
Arizona Department of Economic Security
Sunset Factor 12: The extent to which the agency has used private contractors
in the performance of its duties and how effective use of private contractors
could be accom plished
ensure quality of job placements for clients, improve client satisfaction with achieved
employment outcomes, and increase efficiency and effectiveness of service delivery.
Additionally, the contracts incorporate services for persons with special needs that can be
efficiently and effectively addressed by a private vendor, such as social services to refugees,
crisis shelters for victims of domestic violence, day treatment and training, and housekeeping
serVIces.
In-Home Services for Families referred to the Child \Velfare System: In January 2006, DES
contracted with 10 community agencies to provide comprehensive in-home services statewide to
children and family members referred by CPS. This program provides a wide range of services
including, but not limited to: crisis intervention counseling; family assessment, goal setting and
case planning; individual, family, and marital therapy; conflict resolution and anger management
skill development; communication and negotiation skill development; problem solving and stress
management skill development; home management and nutrition education; job readiness
training; development of linkages with community resources to serve a variety of social needs;
behavioral management/modification; and facilitation of family meetings. This program also
assists families to access services such as substance abuse treatment, housing, child care, and
many other supports. The average monthly number of children receiving contracted in-home
services has increased from 4,376 in fiscal year 2005; to 4,829 in fiscal year 2006; to 5,154 as of
June 2007.
Home Recruitment, Study and Supervision (HRSS) Services: In November 2006, DES
contracted with 23 community agencies to provide home recruitment, study and supervision
services for targeted recruitment of resource families including child-specific recruitment;
resource family orientation; initial, advanced, and ongoing training for resource families; and
licensed foster family placement, tracking, and monitoring services. The contract integrates new
goals, objectives, payment points, and reporting requirements that align with the goals of Family
to Family, and emphasize shared parenting between birth families and resource families. Specific
outcomes and performance measures in the HRSS contracts promote shared parenting, sibling
contact, placement stability, sibling group placements, placement within children's own
neighborhoods, timely application processing and training and resource family retention.
Area Agencies on Aging (AAA): The AAAs are public or non-profit private agencies that DES
contracts with to develop a network in local areas to foster the development of more
comprehensive and coordinated service systems to serve older individuals. This includes
funding, implementation and coordination of services to older adults such as family caregiver
support, home and community living supports, legal services assistance, and the mature workers
program.
17
Section 2
Additional Factors
Arizona Department of Economic Security
Additional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
The mission of the Department of Economic Security is directed through three interrelated,
overarching goals which are designed to improve outcomes for children, families and individuals
in Arizona:
• Strengthen Individuals and Families;
• Increase Self-Sufficiency; and,
• Develop the Capacity of Communities.
Role and Function of the Agency:
The Department of Economic Security (DES) is an integrated human services agency that
provides critical protective and assistance services to Arizona's children, adults and families.
Approaching the way human services work is carried out from an integrated approach has helped
to provide greater accountability across the agency and has generated a more efficient and
comprehensive way of doing business through collaboration with families, community partners
and other government entities.
The DES Vision - Every child, adult and family in the State of Arizona will be safe and
economically secure - and Mission - to promote the safety, well-being and self-sufficiency of
children, adults and families - are exemplified through the work of DES in more than 50
programs and services that work together to help Arizona's most vulnerable citizens. These
programs and services are delivered through DES ofIices and staff statewide, and also through a
network of community-based providers under contract with DES.
Major Activities and Projects:
Recent years at DES have seen a unique expansion in the concept of integrated services, sparking
a new era of collaboration among families, community partners and the Department. The
attached DES 2005-2006 Annual Report provides information that describes this work, including
major activities that demonstrate how DES is achieving its goals. The following are a few
examples of how DES is currently working through key partnerships on significant policy issues:
• Family and Community Partnerships: To enhance and expand family involvement and
community collaboration, DES established an Office of Community Partnerships and
Innovative Practices. This office combined the work that was formerly carried out in DES'
Community Services Administration, Intergovernmental Services and Service Integration. It
includes programs that administer basic safety net services (shelter, food and energy
assistance), and DES' Family Connections, Breakthrough Series Collaborative and
Community Network Teams. This office works with families and community partners in the
change process and allows for the ability to test for effectiveness before broad-scale
implementation.
18
Arizona Department of Economic Security
Additional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
• Repositioning the DES Workforce: DES' Human Resources Administration is working in
partnership with several DES programs, state and national organizations to address staff
recruitment, retention, and succession planning. This work is critically important because
fewer students are entering the social work and related fields, and there is an increasing
number of seasoned staff reaching retirement.
• Office Modernization: Across DES, it is recognized that work must be done to bring
technology for human services into the 21 st Century. Government is in the midst of a
technology "revolution." For example, in 2006,77 percent of state Web sites provided online
services compared to just 22 percent in 2000. The Department is working to improve
customer service through technology enhancements including implementation of a document
management system and replacement of antiquated eligibility systems. Special consideration
must be given to the potential adverse consequences modemization can have on certain
populations, such as the elderly or homeless individuals and families, who do not always
have the ability to use computers. And, the ASU School of Design is working with DES to
help guide the design of DES offices and lobbies to provide for effective, customer-friendly
delivery of services.
Recent Accomplishments:
DES' has achieved a number of significant accomplishments as it promotes the safety, well­being
and self....sufficiency, of Arizona's children, adults, and families. The Department measures
itself in tern1S of its three goals. Only a handful of these accomplishments are noted below, but
they are indicative of DES' widespread successes.
Strengthen Individuals and Families
• By they end of fiscal year 2007, DES was providing in-home services for more than 15,000
children in families involved in the child welfare system or at risk of becoming involved, a
significant increase from the beginning of fiscal year 2004 when fewer than 9,000 children
were receiving in-home services. These services frequently provide families the tools and
skills that they need to care for their children, avoiding the need for out-of-home placements.
• The creation of the Grandparent Kinship Care subsidy in fiscal year 2007 provides modest
financial assistance to support grandparents caring for their grandchildren. DES has partnered
with the Area Agencies on Aging to administer the program. Assistance has been provided
for more than 1,700 children.
Increase Self-Sufficiency
• DES continued to invest in enhancements to the child support enforcement program and
collected a record $336 million in fiscal year 2007, an increase of 9.4 percent over fiscal year
2006.
• DES continued to move families from Cash Assistance to employment in fiscal year 2007.
From its recent high point in fiscal year 2004, the Cash Assistance caseload has declined by
more than 17,000 families. The average wage of individuals placed in employment increased
Arizona Department of Economic Security
Additional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
by approximately $1 per hour, to more than $9 per hour, in fiscal year 2007 compared to the
prevIOUS year.
Develop the Capacity of Communities
• Thanks to the support of the Governor and Legislature and the efforts of DES' provider
partners, fiscal year 2007 was the first year in which a victim of domestic violence looking
for emergency shelter was more likely to find a bed than to be turned away. In prior years, as
many as two-thirds of requests for shelter were turned away due to a lack of space. In fiscal
year 2007, contracted shelters served almost 11,000 individuals.
• DES continued to be best in the nation in terms of providing supports and services to
individuals with disabilities in their homes and communities rather than institutional settings.
As of June 2007, more than 88 percent of these consumers were in their homes and
communities.
Current Human Services Environment:
There are notable factors in the human services environment that present both challenges and
opportunities for DES and for the individuals, families and communities the Department works
with. This work requires a collaborative approach, rigorous dialogue, leadership at all levels of
the organization and clear communication about purpose and direction.
At the same time, DES must address both opportunities and challenges in the human services
environment - seeing both as a way to make an impact on continuous improvement for
individuals and families, for staff, and for the state. The following are some of the current factors
in the human services environment that DES recogruzes and utilizes in its planning for both
current and future service delivery to meet the requirements in the Department's enabling
statutes:
• Population Growth: As reflected in the chart and table below, Arizona is now the fastest
growing state in the nation. State statistics identify several populations that will grow
significantly, including the birth-to-five year old population, and the number of individuals
ages 65 and older.
The number of children in Arizona birth to five years of age will increase by almost 40
percent in the coming years, and there are a number of investments to be made in order to
attain the best outcomes for children. Research shows that comprehensive, high quality care
and early learning experiences are linked to children's success in school and in life, and
investments in early learning save money by preventing future expenses for remedial
education, incarceration and cash assistance. The Department is working with community
partners and with other state agencies to meet the needs of this population. Additionally, the
Department remains committed to improving outcomes in the early childhood development
field through its work in the Arizona Early Intervention Program and the Child Care
Administration's efforts to improve the quality of child care in the state. As Arizona
20
Arizona Department of Economic Security
AQditional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
continues to grow, and the number of children under five years old increases, DES will be
required to work with its partners in state government and in the community to assure that
these challenges are effectively addressed.
Older adults, ages 65 and over, are the fastest-growing segment of the U.S. population. By
2020, 26 percent of Arizona's population will be over 60 years of age compared to 17
percent in 2003, and for those over 60, the fastest growing age group is of persons over 85
years of age. As the population ages, Arizona is likely to see an increase in people with
medical complications that will limit their ability to live independently. These changes will
likely produce a significant increase in demand for long-term care services. At the same time,
Arizona's population will have unprecedented numbers of senior citizens as life expectancy
edges higher each year. This will require us to change thinking about how to support
independence in the elderly population and people with disabilities recognizing how this will
impact all segments of society, not just human services - transportation, housing, etc.
Additionally, as more and more people have children later in life, there is a growing segment
of the population that are raising children at the same time they are taking care of their
parents. This population growth also presents an opportunity for DES, through work with its
partners, to develop civic engagement and volunteerism for the senior population.
Arizona Population Growth
2,000,000
1,500,000
1,000,000
500,000
2000 2005 2010 2020
1° 0
-
5
1IIlI65+1
Arizona is the Fastest Growing State in the Nation
4/1/00 Census 7/1/05 Est. 7/1/1°Proj. 7/1/20 Proj.
Total 5,130,632 5,953,007 6,637,381 8,456,448
0-5 382,286 ~56,001 515,408 630,601
65+ 667,839 765,957 922,010 1,520,622
Arizona Department of Economic Security
Additional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
The Department must engage in strategic short-term and long-range planning for this growth,
engaging partners in other state agencies such as the Department of Health Services and
AHCCCS as well as local governmental entities, public and private service providers, and the
communities to meet the upcoming needs.
• Social and Economic Stressors: In Arizona, more than 14 percent of people live in poverty,
and 20 percent of Arizona's children are living below the federal poverty level. The federal
povelty level for a family of four is cun-ently $20,444 annual income. At DES, best practice
research on anti-poverty practices is being utilized to develop strategies to meet these
challenges. Strategies include: expanding knowledge for working families of the federal
Earned Income Tax Credit (EITC) and the child care tax credit; helping families with
relatives transitioning out of prison to successfully reintegrate back into their home
communities; providing training and education for employment through the Jobs Program;
and strengthening the role of fathers in supporting their families. Additional areas must be
addressed through innovative program designs utilizing community partnerships.
Families face more complex issues. Violence against children continues to be an issue,
oftentimes brought on by the compounding effect of multiple risk factors including poverty
and substance abuse; thus establishing critical needs for protective, remedial and prevention
services for children and families. Arizona leadership has recognized that Arizona faces a
methamphetamine crisis. DES has been involved from the start in efforts to respond to the
problem, particularly in the areas of prevention, treatment of adults and juveniles, improving
access to treatment statewide, and with community efforts to establish Drug Endangered
Children (DEC) protocols.
The challenges that families face are complex and are often inten-elated. The strategies and
remedies to address them call for a collective effort. The Department continues to innovate
and integrate the spectrum of human services both internally and with the community in
order to provide and coordinate the most effective services and delivery systems to assist the
vulnerable individuals, children and families of Arizona.
L
• Federal Funding Reductions: In recent years, the federal government has shifted costs in a
number of social services programs to the states, creating additional strains upon the agency
and the state's budget. Most recently, DES was detrimentally impacted by the Deficit
Reduction Act of 2005, which shifted costs to states for child welfare and child support
enforcement services, as well as established new administrative burdens. While thankfully,
the Governor and the Legislature provided funding to replace most of these cuts in the
Department's fiscal year 2008 budget, these investments do not represent an increase the
overall investment in human services programs. Since the state has limited resources, these
backfills restrict Arizona's ability to strengthen existing programs or invest in new,
innovative services..
22
Arizona Department of Economic Security
Additional Factor 1: Describe the role and function of the agency, including
major activities/projects, accomplishments, and obstacles to success
• Workforce/Service Delivery: Repositioning the human services workforce is a major focus
across the country. While fewer students are electing to enter the social work and related
fields, more experienced staff are reaching retirement age. Across Arizona, DES and its
partners are advocating for solutions and developing strategies to improve employee
recruitment, retention and training. Arizona can be a national leader in this area through
strong partnerships, and DES will continue to address workforce needs in a collaborative
way.
Beyond addressing specific needs of the human services workforce, capacity is a key
environmental factor in service delivery. Capacity issues include lack of early intervention
services; substance abuse treatment; transportation; and other infrastructure issues. In
addition, Arizona's smaller and rural communities, while sometimes facing capacity
concerns themselves, also present an opportunity for DES engagement and improvement, by
working together, and seeing the smaller size as an advantage.
23
• _'io- ~
Arizona Department of Economic Security
Additional Factor 2: Provide financial data, such as number of full-time
employees, expenditures and revenues and fee structure, if applicable
The schedule of revenue and expenditures for the years ended June 30, 2005 and 2006 IS
included below in the format used by the Auditor General in the prior Sunset Audit.
Revenues:
Grants and reimbursements
State General Fund Appropriations
Employers' unemployment insurance contributions
Arizona Industries for the Blind sales
Fees
Fines, forfeits, and penalties
Interest
Other
Total Revenues
Expenditures and reversions:
Personal services and employee related
Professional and outside services
Travel and food
Aid to individuals and organizations
Other operating
Capital outlay
Debt Service:
Principal
Interest
Unemployment insurance benefit payments
Arizona Industries for the Blind operating expenditures
Total expenditures
Reversions to the State General Fund
Total expenditures and reversions
Excess (Deficiency) of revenues over expenditures and reversions
2005 2006
1,890,772,736 2,030,771,430
606,123,799 632,655,200
268,894,477 311,826,259
18,870,249 14,389,642
2,820,947 1,161,728
4,297,044 2,772,378
41,418,202 43,213,241
70,670,300 61,421,558
2,903,867,754 3,098,211,436
430,458,268 479,269,136
39,637,467 39,285,634
7,210,299 7,612,315
1,977,434,969 2,073,027,446
93,492,229 97,015,132
7,626,543 9,340,350
1,057,824 1,717,343
117,506 170,392
292,126,736 226,171,154
19,555,091 15,492,021
2,868,716,932 2,949,100,923
3,433,749 10,465,026
2,872,150,681 2,959,565,949
31,717,073 138,645,487
Data from DES' most recent full-time equivalent utilization report, through the final pay period
in fiscal year 2007, is reported below.
Utilization
Divisions Approp Authority Non Approp Total
Administration 250.88 0.00 690.98 941.87
Developmental Disabilities 134.00 1,630.46 0.00 1,764.45
Benefits & Medical Eligibility 642.53 0.00 2,300.50 2,943.03
Children, Youth & Families 1,587.51 0.00 677.60 2,265.11
Employment & Rehabilitation Services 505.28 0.00 1,047.65 1,552.93
Aging & Community Services 87.92 0.00 89.82 177.74
Child Support Enforcement 280.95 545.35 0.00 826.30
Public Assistance Co1kctions 7.70 -6.70 0.00 1.00
Total Agency 3,489.08 2,175.80 4,806.55 10,471.44
24
Arizona Department of Economic Security
Additional Factor 4: A statement, to the extent practicable, in quantitative
and qua,litative terms, of the objectives of the agency and its anticipated
accomplishments
As noted in DES' mission statement, the more than 50 programs and services in the Department
work together to help Arizona's vulnerable citizens achieve greater safety, well-being and self­sufficiency.
These programs and services are delivered through DES offices and staff statewide,
and also through a network of community-based providers under contract with DES.
The Department's objective is to move beyond simply delivering services by focusing on helping
families gain the tools they need to effectively and permanently escape the hardships of poverty
and other barriers that currently prevent them from being self-sufficient. This objective is carried
out in the daily work of staff, family and community partners who are key in both the
development and implementation of how DES plans to chart its course.
DES holds itself accountable for achieving results that promote the safety, well-being and self­sufficiency
of Arizona's children, adults and families through its three broad goals of
strengthening individuals and families, increasing self-sufficiency, and developing the capacity
of communities. The Department tracks and reports these and other outcomes in a number of
documents, including its annual Master List (A.R.S.§35-122) and the Pay-for-Performance
measures (Laws 2006, Chapter 1).
In addition, in order to execute the requirements of an organization that provides integrated
services to individuals and families, DES must position itself within the community through a
solid foundation that is grounded in qualified, motivated employees and high quality business
systems, including a sound technological base. To facilitate integrated services and improved
outcomes for children, adults and families in Arizona, the Department is placing particular focus
on workforce planning and information technology improvements.
DES is poised to move forward in collaboration with its many community partners to accomplish
the goals set forth by the Department. The integrated and innovative approach to human services
that is inherent to DES is crucial to developing and incorporating how to best assist the
populations DES serves in order to achieve the best possible outcomes for the vulnerable
individuals, children and families of Arizona.
25
Arizona Department of Economic Security
Additional Factor 5: An identification of any agencies having similar,
conflicting, or duplicate objectives, and an explanation of the manner in which
the agency avoids duplication or conflict with other such agencies
The Department of Economic Security (DES) recognizes its inherent interdependence and
interconnectedness with Arizona's communities in successfully providing the wide array of
human services needed by the diverse population of Arizona. The Department coordinates with
sister agencies and community organizations in program planning and service delivery to ensure
there is no duplication of efforts. '
The Department's focus on service integration and expansion of these concepts and practices in
recent years has resulted in an increased emphasis on partnerships at both governmental and
community levels. DES regularly coordinates with many governmental entities at the local, state
and national level. In addition, partnerships at the community level incorporate coordination with
numerous councils, coalitions, advocacy bodies, associations and community human service
organizations, which also offer feedback to the Department on improving service delivery and
approaches. This coordination ensures not only that there is no duplication of effort in providing
services, but also that complementary services are provided in the most efficient and effective
n1anner.
Among the breadth of the services that DES provides in Arizona, the Department also
collaborates and coordinates with other state agencies. Following are a few of the many
examples of the relationships the Department maintains with other agencies:
Health and Human Services:
Staff and Department management work regularly with the Arizona Department of Health
Services and the Arizona Health Care Cost Containment System on cross-agency efforts such as:
coordination for eligibility determinations; Health-e-Arizona, a web-based emollment
application for Medical Assistance, Food Stamps and Cash Assistance; coordinated behavioral
health service delivery to children and families; and other prevention activities related to
improving healthy outcomes for Arizona's citizens.
Infrastructure Support:
Through DES' work with the Government Information Technology Agency, the Arizona
Department of Administration and the Attorney General's Office, DES collaborates on multiple
projects that provide infrastructure support. For example, DES' Human Resources
Administration works with the Arizona Department of Administration's Human Resources
Division on succession planning, recruitment and retention best practices for state employees.
Workforce Development:
DES partners with the Department of Education and the Department of Commerce to address
multiple issues for developing Arizona's workforce capacity across the state. In addition, DES'
Rehabilitation Services Administration works with the Department of Juvenile Corrections staff
to help develop vocational rehabilitation services for at-risk youth.
26
Section 3
Supplemental Questions
Arizona Department of Economic Security
Sunset Committee of Reference, Supplemental Questions
In addition to providing information on the list of Sunset factors for the Arizona Department of
Economic Security's (DES) Sunset Review, you also asked DES to respond by September 1,
2007 to several questions related to immigration issues. Specifically, these questions relate to the
number of illegal immigrants and people without social security numbers served by DES, the
types of services, and cost of services provided to such individuals. In addition, you questioned
whether or not, based on your review of DES' application on the website, DES policy complies
with Proposition 200.
1. Application
To address the last point first, DES has fully complied with the laws enacted by Proposition 200.
The eligibility requirements and the processes that DES staff use to determine eligibility ensure
that only persons who meet the lawful standards receive those benefits. We do ask for
information regarding citizenship and immigration status as required and/or permitted by
applicable state and federal laws.
The integrated application for Cash Assistance, Food Stamps, AHCCCS Health Insurance
(medical assistance) and General Assistance (FA-OOl) informs applicants that they are required
to tell DES about the citizenship and immigration status for all persons for whom benefits are
being requested. Specifically, the application states that, "You will be required to tell us about
the citizenship and immigration status for:
• You, if you are applyingfor benefits for yourself.
• All persons that you are applyingfor benefits for."
The specific Web site to which your question is directed is this integrated application (FA-OOl).
The language on this application is complicated by the multiple and varied requirements for the
different programs, and we agree that it may not have been worded as clearly as it could have
been with regards to citizenship requirements. DES reviewed the language on the application
and revised it. A copy of the revised language is attached and is now on the DES Web site. In
practice, however, the prior wording ofthe application on the website has not resulted in a failure
to comply with any applicable state or federal laws.
DES uses a single, integrated application for the programs referenced above. This is more
efficient, allowing the eligibility worker to process information once instead of multiple times,
and is, therefore, less costly to the State in terms of time to review and process information. It is
also less subj ect to error because the information is not replicated on numerous documents.
Because there is some variance in the eligibility requirements among the programs on this
integrated application, it does make the wording ofthe application instructions more complex.
Your specific question is related to the fact that the integrated application includes Federal
Emergency Medical Services (FES), which is an AHCCCS medical benefit. Pursuant to 8
U.S.c. §1611 (b)(1 )(A), this emergency medical benefit is available to all immigrants regardless
27
of immigration status. Thus, if an individual wishes to apply for the FES benefit, we are required
by federal law to take the application. Federal law prohibits DES, however, from requiring the
applicant to provide verification of immigration status in order to qualify for FES.
Additionally, DES policies require eligibility workers to verify and document the identity of an
applicant at each interview for Food Stamps, Cash Assistance, AHCCCS, and General
Assistance. DES retains a copy of the documentation provided to verify identity. In the
programs that have citizenship or alien eligibility requirements, potentially eligible alien
applicants must provide their Alien Registration Number issued by the United States Citizenship
and Immigration Services. Their immigration status is then verified through the automated
Systematic Alien Verification for Entitlements (SAVE) process. Documentary evidence of U.S.
citizenship is required for General Assistance and AHCCCS non-FES benefits. Such
documentation is also required in the Cash Assistance and Food Stamp programs when there is
an inconsistency in the applicant's claim of U.S. citizenship, such as when the applicant is born
outside of the United States or its territories, or there is more than one birth place listed. DES
retains a copy of the documentation in the case file.
II. Tracking and Expenditures
You have also asked about the number of undocumented immigrants receiving benefits. State
and federal laws prohibit providing benefits to undocumented persons with the exception of
certain programs. Under federal law, 8 U.S.c. §§ 1611 and 1621, states may only provide
certain assistance to persons who are U.S. citizens, U.S. nationals, or qualified aliens. DES is in
compliance with the federal requirements for verification of U.S. citizenship, U.S. national
status, or qualified alien status as to federal public benefits. l Additionally, in the past year, DES
has implemented the new Medicaid documentation requirements regarding citizenship and legal
status? DES employees obtain infoill1ation and documentation regarding citizenship and
immigration status as required and/or permitted by state and federal laws.
In programs in which federal law allows for the provision of benefits to undocumented
immigrants, such as FES, applicants do not have to provide proof of immigration status.
Individuals who qualify for FES include undocumented immigrants and documented immigrants
who do not meet the AHCCCS qualified non-citizen criteria.3 Therefore, the fact that someone
I 8 U.S.c. § 1642; 7 C.F.R. § 273.2(b)(1)(iii), (f)(1), and (f)(2); Department of Justice Interim Guidance on
Verification of Citizenship, Qualified Alien Status and Eligibility Under Title IV of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (62 FR 61344, November 17, 1997).
2 42 C.F.R. §§ 435.406-407
3 Immigrants are classified as either qualified non-citizens or non-qualified non-citizens. In addition to immigrants
that are undocumented, a non-qualified non-citizen may be lawfully present in the United States but not meet the
federally prescribed qualified non-citizen criteria. Examples include;
• Lawful Permanent Residents whose date of entry is less than five years in the past.
• Applicants who are authorized to work temporarily in the U.S. and have been issued employment
authorization documents by the United States Citizenship and Immigration Services (an 1-688B
Employment Authorization Card or 1-766 Employment Authorization Card).
e Border Crossers viho have either a Non-Resident Alien Canadian Border Crossing Card (1-185) or a Non­Resident
Alien Mexican Border Crossing Card (1-186).
28
qualifies for FES does not mean that the individual is here illegally. As a result, it is not possible
to calculate the amount of benefits provided to undocumented immigrants.
You also asked about persons without social security numbers (SSN) who are receiving benefits.
Under the federal Privacy Act of 1974, found at Section 7 of Pub. L. 93-579 (the "Act"), state
and local government entities may only require an applicant to provide a SSN when Congress
has mandated that it be provided. Agencies that require a SSN are to cite the specific federa11aw
authorizing them to require the SSN and indicate how the SSN will be used.
Government programs that are not mandated to use social security numbers may only ask a
person to voluntarily provide a SSN. The program must also explain that the program will not
deny services if the SSN is not provided and what uses the program will make of the SSN.4 If
the person voluntarily provides the SSN, the program may only use it for the purposes that were
stated.
In many programs, including Food Stamps, Cash Assistance, and AHCCCS, all applicants who
will receive benefits are required to provide SSNs. DES does not provide benefits to persons in
programs in which SSNs are required if the SSN is not provided. In programs where the SSN is
voluntary, DES does not track this information and cannot provide information as to the number
of individuals who do not provide a SSN. It should be noted that many persons who are not U.S.
citizens may legally obtain a SSN. Therefore, a SSN, by itself, does not provide proof of U.S.
citizenship or immigration status.
4 5 U.S.c. §552a in note; S.ection 7 of the Act.
29
Appendix
Arizona Department of Economic Security Annual Report: SFY 2005-2006
30
Arizona
Annual
Report
Department of
Economic Security
SF\'
2005· 2006
Governor
Janet Napolitano
DES Director
Tracy L. Wareing
MISSION
The Arizona Department of Economic Security promotes the safety, well-being,
and self-sufficiency of children, adults, and families.
VISION
Every child, adult and family in the State of Arizona
will be safe and economically secure.
GUIDING PRINCIPLES
Systems of care must:
• Be customer- and family-driven
• Be effectively integrated
• Protect the rights of families and individuals
• Allow smooth transitions between programs
• Build community capacity to serve families and individuals
• Emphasize prevention and early intervention
• Respect customers, partners, and fellow employees
Services must be:
• Evaluated for outcomes
• Coordinated across systems
• Personalized to meet the needs of families and individuals
• Accessible, accountable, and comprehensive
• Culturally and linguistically appropriate and respectful
• Strength-based and delivered in the least intrusive manner
Leaders must:
• Value our employees
• Lead by example
• Partner with communities
• Be inclusive in decision making
• Ensure staff are trained and supported to do their job
Janet Napolitano
Governor
ARIZONA DEPARTMENT OF ECONOMIC SECURITY
1717 W. Jefferson' P.O. Box 6123 -Phoenix, AZ 85005
Tracy L. Wareing
Director
MAR 27 2007
The Honorable
Janet Napolitano
Office of the
Governor
1700 West Washington
Phoenix, Arizona 85007
Dear Governor Napolitano:
The Arizona Department of Economic Security's Annual Report for the period July 1,2005,
through June 30, 2006, is enclosed. This report is submitted pursuant to A.R.S. §41-1960,
which requires the Department to make an annual report of Arizona's economic security
needs and resources; the use, training, and placement of manpower; and recommendations
for the forthcoming fiscal year for the state's developmentof relevant programs.
During state fiscal year 2006, the Department continued, initiated, and planned a number of
projects that will directly assist children, adults, and families to be safe and economically
secure. The Cash Assistance caseload continued to decrease during the year, reflecting the
Department's success at placing individuals in employment that leads to self-sufficiency.
The Department continued to integrate services to focus on prevention and early intervention,
launched a Breakthrough Series Collaborative effort that allows local teams to spread
successful ideas, and expanded the use of multidisciplinary Family Connections teams.
In addition, the Department implemented a number of automation initiatives and
administrative enhancements designed to increase Department efficiency and improve
customer service.
This report includes highlights of many of the Department's accomplishments that will help
improve outcomes for children and their families throughout the state.
Sincerely,
Y;~1 L. tfc/~
Tracy Wareing,
Director
TABLE OF CONTENTS
DEPARTMENT OVERVIEW 1
MAJOR INITIATIVES 1
ORGANIZATION, MANPOWER AND TRAINING 20
Organizational Chart 23
Children and Family Services Training Program Fund 24
ECONOMIC CONDITIONS AND OUTLOOK , 29
STATISTICS 32
Comparison between Arizona and United States Population 33
Comparison between Arizona and United States Per Capita Income 34
Expenditures by Function and Funding Source 35
Revenues by Funding Source 36
Comparison between Arizona and United States Unemployment.. 37
Unemployment Insurance Financial Transaction Summary 38
Food Stamps Benefit Participants 39
General Assistance 40
Temporary Assistance for Needy Families .41
Comparison of Participants to Participants Employed and the
Percentage with Retained Employment .43
Child Support Enforcement Collections .44
DEPARTMENT OVERVIEW
The Department of Economic Security has approximately 10,350 full-time equivalent
(FTE) positions and has 234 offices throughout the state, including 183 direct service
offices, 15 residential and medical facilities, and 36 administrative and training offices.
Six district offices are located in Phoenix, Tucson, Flagstaff, Yuma, Casa Grande, and
Bisbee.
For the past two years the Department has focused its attention on the methodologies
used to provide necessary services to its clients. The Department has continued to
integrate its service delivery as the standard method of how it does business.. Service
integration builds individuals' and families' capacities to improve their lives by focusing
on prevention and early intervention. Through service integration, individuals and
families are assessed for their strengths and engaged in developing plans to build on
those strengths and reach progressive goals in the areas of safety and self-sufficiency.
As is identified below, many of the major initiatives directly support the integration of
program services.
MAJOR INITIATIVES
Service Integration
The Department continues to integrate its service delivery. A new era of collaboration
among families, community partners, and the Department now drives the mission of
promoting the safety, well-being, and self-sufficiency of children, adults, and families.
The Department's objective is to move beyond delivering services and to garner a
greater focus on helping families gain the tools they need to effectively and permanently
escape the hardships of poverty and overcome barriers such as homelessness and
family violence. The adoption of new business models that are holistic, inclusive, and
strength-based in their approach will result in overall improved outcomes for families.
Service integration increases the likelihood that families and individuals will benefit when
services are delivered in a more cohesive and coordinated manner. Service integration
is:
• Flexible, progressive, and outcome-driven;
• Family-focused;
• Locally managed; and
• Collaborative.
Success requires the adoption of a methodology for performance measurement and
evaluation. Although the Department monitors indicators of success in all program
areas, three areas were selected for primary focus in FY 2006:
(1) Reducing the Cash Assistance adult caseload by promoting self-sufficiency;
(2) Safely reducing the number of children in out-of-home care by strengthening families;
and
(3) Safely reducing the number of children and adults in group homes, shelters, and
institutional care by developing the capacity of families and communities.
Initial strategies being deployed involve the development and refinement of local service
delivery models. These models incorporate collaborative efforts with some of the
following elements:
• Developing coordinated case plans that encourage engagement in activities that best
improve their families' circumstances;
• Accessing a range of activities and strength-based services to meet the families'
needs;
��� Embracing a work-focused, family-centered approach to case management that is
customized to meet individual and/or family needs; and
• Improving services to customers by offering regular and frequent face-to-face
contact.
In order to effectively guide and support local ownership, innovation, and implementation
of service integration efforts, the following parameters have been defined:
• Activities must comply with federal and state law, rule, and regulation;
• Issues must be resolved at the lowest level of the agency, whenever possible; and
• All activities should move the Department toward its vision that every child, adult,
and family in Arizona will be safe and economically secure.
Community partners bring a wealth of knowledge and resources that, when embraced,
enhance and expand opportunities for mutual customers. It is critical that these
partnerships continue to be developed at a grassroots level to ensure that the true needs
of the community are met. These partnerships are exemplified by community network
teams and business continuity planning teams, both of which comprise Department
personnel and external community partners.
In an effort to build on the prior year's service integration improvements in reducing the
Cash Assistance caseload and reducing the number of children in out-of-home care, the
Department began a series of service delivery system changes. Components of the new
service delivery approach include:
Family Connections: The Department initiated Family Connections (TANF/Child
Welfare) teams in January 2005. The purpose of Family Connections is to engage
families who are receiving TANF Cash Assistance and are at risk of involvement in the
child welfare system in comprehensive integrated services with the goal of assisting the
families in achieving self-sufficiency, safety, and overall well-being.
The mission of Family Connections is to promote and empower safe, healthy families by
connecting them to suitable community resources that will assist them in achieving their
highest potential. Services are family-focused, strength-based, voluntary, and
coordinated.
During SFY 2006, there were ten Family Connections teams operating in Arizona. The
teams continue to be multidisciplinary, composed of a team lead, child welfare
specialists, a TANF specialist, Jobs employment staff, case aids, and domestic violence
advocates. The Maricopa County teams are sharing a Rehabilitation Services
Administration (RSA) staff person that completes individual assessments with family
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members and qualifies them for rehabilitation services and/or benefits. Having a RSA
staff assigned to a Family Connections team has been so effective and successful that
assigning additional RSA staff to Family Connections is being considered.
The four additional Family Connections teams added during SFY 2006 have specific
areas of focus based on the identified needs of Maricopa and Pima counties. Two of the
teams have a focus of providing kinship care services. The focus is to become involved
with a relative or nonrelative placement early in the placement process, complete a
needs assessment, and provide services that support the kinship family and the child
placed with them. The intent is to prevent disruptions, provide support, and, when
applicable, be able to assist in transitioning the child back into the birth family home.
The other two teams are focused on working closely with Child Protective Services
(CPS) to review and accept cases that are closing with CPS within 30 days but that still
have risk issues to be addressed. Family Connections also participates in the CPS team
decision making process with the intent of sharing resources, participating with families
to access services, or, in some situations, being available to accept an appropriate
referral for long-term intervention.
Participation in Family Connections continues to be voluntary. Team members engage
families in their homes, work, or wherever the family feels most comfortable, and work
with them to develop goals of self-sufficiency, child safety, and well-being. Resources
necessary to achieve stability and self-sufficiency are identified and coordinated through
a team lead member. Resources include those available through the family, family
support networks, the Department, other state agencies, and community- and faith­based
organizations. This approach to working with families has been extremely
successful and families consistently praise Family Connections team members for
providing hands-on services.
The teams still serve only Maricopa and Pima counties. Ongoing target populations are
the families that are the hardest to serve and include: kinship care; TANF/child welfare
families referred by Department staff; families involved in the child welfare system with
open CPS cases that are within 30 days of closure and do not present safety issues;
families identified through family and juvenile court child welfare-related mediation; and
homeless victims of domestic violence. Family Connections has expanded its referral
base to include referrals from homeless shelters where families are residing and need
permanent housing along with other services.
During SFY 2006, Family Connections teams took a lead in the integration of services at
the Arizona Veterans Memorial Coliseum and Katrina Evacuation Center. These
services included housing and furnishings, health and mental health care, employment,
public benefits, legal aid, and emergency aid for displaced Hurricane Katrina and
Hurricane Rita victims. Specifically, teams targeted some of the most difficult to engage
evacuees and facilitated entry into housing and access to benefits and employment.
Team members continue to assist many of these individuals and families through
involvement in a long-term recovery effort. Family Connections is only one participant of
several that includes faith-based and community agency personnel.
Assessments of families served through Family Connections and homeless shelters
include an initial screening and use of a self-sufficiency matrix that has been tested for
validity and reliability. Areas of assessment include income, housing status, education,
health care, substance abuse, mental health, and community involvement. Data is
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collected at intake, at three-month intervals, and upon exit. The desired outcome for the
teams is the development and implementation of a service integration model that results
in families achieving goals of self-sufficiency, safety, and well-being. The Self­Sufficiency
Matrix was recently incorporated into a Family Connections mini-data system
that has been designed to gather critical data about families served by Family
Connections. The data will be reported during 2007.
Families that have come into contact with the Department are often struggling with
issues of domestic violence and poverty. In Arizona, there has been consistent data
from domestic violence shelters identifying the number of women receiving public
benefits when they enter shelters. Those who enter the shelters with no resources are
routinely referred to Department offices to apply for public benefits such as Cash
Assistance and Food Stamps. In order to stabilize these families and to achieve the
goals of increasing stability and self-sufficiency, four Family Connections teams, each
consisting of experts in public benefits programs, including employment and TANF, child
welfare, mental health, and domestic violence advocacy, work with victims of domestic
violence exiting shelters in Maricopa and Pima counties.
In the past year, an emphasis of the project has been to increase disability awareness of
Child Protective Services specialists for referrals to Vocational. Rehabilitation counselors.
Discussions are underway to incorporate the Division of Developmental Disabilities
(DOD) as a partner in the project. RSA hired a Service Integration coordinator to work
with the Family Connections program. Two RSA Vocational Rehabilitation counselors
will be dedicated to serve individuals in the Family Connections units in Maricopa
County. The service integration coordinator will also be involved in the coordination
activities of the foster care projects with DCYF and DOD.
Creation of the DES Customer Service Representative (CSR) position: The CSR
provides the first point of contact for families receiving services at designated
Department multiservice facilities. The CSR is an integrated position that provides
support to all programs within the Department. The CSR works for, and on behalf of, the
entire Department by providing a comprehensive triage of individuals at the point of their
first contact with the Department. These positions were created to have flexible duties so
they can be adapted throughout the state based on the unique differences of each
multiservice facility. The goal of the CSR is to improve the customer service the
Department provides to families by increasing access to services based on up-front
screening, assessment, and referral.
Creation of the TANF Service Coordinator (TSC) position: The TSC provides an
integrated holistic approach to addressing barriers to self-sufficiency by coordinating the
services of multiple programs both in the Department and outside the Department for
families receiving TANF Cash Assistance. The TSC interviews applicants and
determines eligibility for Cash Assistance, Food Stamps, and Medical Assistance and
conducts the initial strength- and needs-based assessment to connect the family to
employment and other self-sufficiency related services as early as possible. When
appropriate, the TSC diverts eligible families from long-term receipt of Cash Assistance
through the Grant Diversion Program.
Breakthrough Series Collaborative on Service Integration: This collaborative effort
involves the use of a continuous quality and systems improvement methodology known
as the Breakthrough Series Collaborative (BSC). Small, rapid tests of change are
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developed by local teams that improve outcomes for specified target cases. To keep the
tests small, the question is asked, "What can you do by next Tuesday?" that will directly
improve outcomes for children, adults, and families in their local communities. What is
unique about Arizona's implementation of this methodology is that the Department has
invited families and community members to be equal partners at the table.
Activities are grounded in a standard, comprehensive Framework for Change that helps
guide team members on principles and values for collaboration and improved outcomes.
The Framework provides components for strategies to be tried, studied, adjusted, and, if
successful, replicated. The SSC methodology bridges the gap between knowledge and
practice. Collaboration allows for greater learning and spreading of successful ideas.
Rapid Plan-Do-Study-Act (PDSA) cycles are used and are based on the premise that
anyone can have and test ideas. Consensus is not needed, and power and influence
within the team is equalized. Change happens at all levels. Local, organically grown
strategies and improvements create a more sustainable culture for improved outcomes.
The Collaborative is supported by various methods of communication. Teams
communicate through "all collaborative conference calls" and through use of an Extranet
site in which each team has a unique page to report their progress and chronicle their
activities along with the outcomes of their PDSAs. Ideas are "stolen shamelessly," and
successes are spread quickly.
Arizona's SSC involves 20 statewide community teams compnslng 18 members: six
family partners, six community partners, and six agency partners. Two of the 20 teams
focus on tribal interactions. Teams meet approximately biweekly and at times that are
conducive to family and community partner participation. Teams are chaired by family
and community partners serving in leadership roles. Agency staff are informed that all
ideas are to be tested provided they are legal and in keeping with the agency's guiding
principles.
The SSC lasts for 12 months and consists of three Learning Summits: an initial Learning
Summit, a mid-cycle Learning Summit, and a Celebration Summit at the end of the 12
months. The agency has engaged Arizona State University-West to conduct an
assessment and evaluation of the SSC and, most importantly, to document the process
and the improved outcomes for families.
Advancing the Goals of Service Integration
During state fiscal year (SFY) 2006, the Department continued, initiated, and planned a
number of improvements that will result in better outcomes for children and families.
The most significant projects are outlined below. Many of the improvements advance
more than one of the three goals of the Department's integrated service philosophy:
(1) Promoting economic self-sufficiency;
(2) Reducing the number of children in out-of-home care; and
(3) Reducing the number of children and adults in institutional settings.
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Promoting Economic Self-Sufficiency
Reducing the Cash Assistance Caseload
The Department continued to reduce Arizona's Cash Assistance caseload during
SFY 2006. In June 2006, there were 40,630 Cash Assistance cases compared with
44,392 cases in June 2005. This represents a caseload decrease of more than eight
percent during SFY 2006. The Cash Assistance caseload began decreasing in
November 2003 after reaching a high of 55,495 cases in October 2003. The decline in
the caseload reflects the Department's success at placing individuals in work that leads
to self-sufficiency.
Workforce Development One-Stop Partners
Arizona was recognized by the U.S. Department of Labor, Employment and Training
Administration for being a national innovator for compliance with statutory and regulatory
requirements to administer job training and employment programs according to
standardized performance measures across the One Stop Partner programs. This was
mandated to improve customer service, standardize customer data collection, and to
ensure accuracy and timelines of performance results necessary when demonstrating
program integrity and value. Arizona's partners worked together integrating program
personnel as one team in the development of the training curriculum and the
presentation of the training to all participating program staff throughout the state. This
was the first time that such a comprehensive training had been attempted and
successfully executed on such a large scale.
Workforce Investment Act Incentive Grant
In 2006, Arizona was awarded a Workforce Investment Act (WIA) Title V Incentive Grant
for exceeding the performance measures in workforce and education programs under
the WIA Program Year for 2004. The partner programs that exceeded program goals to
earn these incentive funds were: WIA, Adult Education Services (AES), and Career and
Technical Education (CTE). The purpose of the grant is to carry out innovative
workforce and education programs consistent with the three major programs involved in
exceeding the performance measures. The grant funds of $709,618 were evenly
distributed between the three programs (WIA, AES, and CTE), that have implemented a
statewide collaborative project called Enhancing Arizona's Workforce Connections. This
project focuses on activities occurring at the state and local levels to prepare Arizona's
job seekers for opportunities in health care disciplines. Activities under this project will
continue through June 2008.
Unemployment Insurance Adjudication Training
The U.S. Department of Labor called upon Arizona's Unemployment Insurance Training
staff to participate in the development of a National Adjudication online training that
could be delivered and accessed over the internet. Upon completion of the development
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of the curriculum, a Department of Economic Security trainer continues to perform as the
adjunct faculty for the U.S. Department of Labor, taking the lead role in the facilitation of
the national training sessions.
Motivational Workshops for Cash Assistance Recipients
Employment Services provided workshops to Cash Assistance recipients to reinforce
skills needed to achieve self-sufficiency. Workshop topics include resume preparation,
job interviewing skills, and job search techniques. The number of Cash Assistance
recipients who attended the motivational workshops in SFY 2006 was 1,261. '
Navigator Grant
The Navigator Program secured $1.6 million in funding through June 30, 2007, and
continues to make significant systems change with staff and locations. The
Rehabilitation Services "Navigators" continue to actively work in One Stop Career
Centers on a statewide basis, opening the door for individuals with disabilities. The
Navigators work with Centers for Independent Living and many others throughout
communities in Arizona to increase assistive technology and resources for individuals
with disabilities to access local resources to become employed.
Video Relay Services and Video Remote Interpreting for the Deaf
The Department successfully completed work on a Video Relay Services (VRS) project.
This pilot is successfully operating in five Vocational Rehabilitation offices. VRS permits
deaf staff to communicate with consumers, vendors, and other stakeholders using
American Sign Language, a much more natural communication mode for them.
The Rehabilitation Services Administration is committed to moving communication
standards for deaf employees and consumers into the 21 st century, and plans to expand
this VRS project to all other RSANR offices throughout the state.
Arizona's Statewide Needs Assessment Project (SNAP)
The Rehabilitation Services Administration (RSA) contracted