The Department of Natural Resources and the Department of Agriculture introduced their budget proposal to the legislature to meet the 4% cut. Agriculture will use attrition and current expense reductions to meet the 4%. Natural Resources is having employees do a one day furlough and will use restricted funds for the rest of the cuts. The information below has a detailed outline of what the two departments are doing to meet the 4%.
Natural Resources ($2,115,000)
Ag ‐ Current Expense Reductions ($114,600)
Ag ‐ Replacement with Dedicated Credits ($135,000)
Ag ‐ Retirements ($196,500)
Ag ‐ State Fair Reductions ($27,000)
Ag ‐ Travel Reductions ($50,000)
DNR ‐ Admin One Day Furlough ($8,100)
DNR ‐ DWR One Day Furlough ($32,900)
DNR ‐ FFSL One Day Furlough ($8,700)
DNR ‐ FFSL Replacement with Restricted Funds ($1,456,800)
DNR ‐ OGM One Day Furlough ($5,600)
DNR ‐ Parks One Day Furlough ($26,500)
DNR ‐ UGS One Day Furlough ($10,600)
DNR ‐ Water Resources One Day Furlough ($8,900)
DNR ‐ Water Rights One Day Furlough ($20,500)
PLPCO ‐ Public Lands Current Expense ($13,300)
Health and Human Services Sub Appropriations Committee
Department of Health
Executive Director, Dr. David Sundwall updated the Health and Human Services Sub Appropriations Committee regarding the cuts that the Department of Health has made in light of Governor Herbert’s executive order to reduce each agency’s personal budget by 3%. Dr. Sundwall reported that they were able to find efficiencies and approximately $100,000 savings through a reorganization that recently occurred – resulting in ongoing savings of $400,000. In addition, the mandatory day of furlough will save $120,000. The department has offered an early retirement incentive that is projected to save $300,000. Also, they will now begin charging for UTA passes, only buying computers when they break down, and implementing a hiring freeze.
The legislature has asked for a 4% cut that is problematic for the Department of Health. Although, the department has been able to identify $2.6 million, Dr. Sundwall cautioned the committee to try to avoid digging deeper into the budget coffers, due to reductions in services resulting in the potential for AARA fund pay back of $160 million. Sundwall indicated that he was willing to make accommodations where possible and work with the legislature in finding the means to effectively serve the state of Utah.
Department of Human Services
Department of Human Services Executive Director, Lisa Michelle Church, provided the committee with the changes that she intends to make with the Governor’s requested budget cuts through the remainder of FY2010. DHS will need to cut $2.9 million to cover the 3% budget gap. Church stated that she intends to do this through 4 means:
1. Fund Balances: DHS estimates that it can use $56,300 from the DCFS fund balance and $50,000 from the Division of Substance Abuse and Mental Health fund balance.
2. Personnel Expenses: DHS has cut more than 300 positions over the past year. Church stated that, “DHS has analyzed the potential for employee furloughs but finds that they would more deeply reduce services to the public and potentially pose health and safety risks for Utahns.” As a result of the analysis, it was determined that DHS would not implement furloughs at this juncture. The department has also implemented a hiring freeze that is estimated to save $570,000 for the remainder of FY2010.
3. Restricted Accounts: DHS is planning on using $1.6 million in restricted accounts- $1.1 million will be coming from the Domestic Violence Services Account, and another $500,000 will be coming from the Children’s Trust Account.
4. Operating Expenses: Church indicated that the department will delay purchasing computers and use other small sources to help with the control of operating costs. DHS estimates that $570,000 can be saved in this category.
Based on the legislature’s request to reduce the total budget by 4%, the department would need to cut $10.5 million. This would come at a great cost, including disturbances in service, eliminating positions, and furloughing employees. In addition, Church stated that deep program cuts would result.
Church was very concerned with each of these issues as she shared a day-in-the-life of an average employee. She discussed how workload is increasing, citizens are becoming more impatient, benefits are decreasing, co-workers are leaving without a replacement, training has been cut down substantially, and problems are continually increasing with the rise in population.
The committee members kept referring back to the fact that they have been given a directive to recommend 4% adjustments, while identifying the impacts on the cuts.
