Human Services Commissioner Prepares to Request 2011 Budget;
Brief Senators on Challenges Due to Recession

Human Services Commissioner Chris Finch will appear before the 28th Legislature Tuesday to request a fiscal year 2011 budget ample enough to sustain the territory's critical social services during difficult economic times.

The Department of Human Services provides a multitude of social services that enhance the quality of life for many Virgin Islands residents and support some of the Territory's neediest families.

In his testimony, Finch will brief legislators about the department's revenue streams and budget expenditures, highlight some recent accomplishments and outline major plans for Human Services in fiscal year 2011.

Finch will request $54,022,753 from the General Fund for the department's 11 divisions. He will also ask for $1,000,000 from the Crisis Intervention Fund, money that is later re granted to non-profits; $1,500,000 from the Pharmaceutical Assistance Fund which pays for senior's medications; $307,392 from the Home for the Aged Revolving Fund, which pays for physicians and other nursing home expenses; and $500,000 from the Miscellaneous Budget for the Energy Crisis Assistance Program. Human Services also manages another $2.4 million in grants.

To facilitate the delivery of so many vital services, the department expects to receive over $28 million in federal grants from several U.S. agencies, including the Department of Health and Human Services, Agriculture, Education, Justice and Corporation for National Service. With federal funding, Human Services distributes more than $40 million in food stamps. 

Several Human Services programs have received money through the American Recovery and Reinvestment Act totaling $6,341,473 in the stimulus period. Finch anticipates spending $3,480,539 of stimulus funds by the end of 2010, and the remainder in fiscal year 2011. 

In all, Human Services manages more than $132 million dollars each year. The Department's requested appropriation from the general fund for fiscal year 2011 is a reduction of 4.5 percent from last year's initial appropriation, an amount later reduced by 1 percent. Sixty percent of that budget pays personnel costs. Human Services has 959 positions on its books, down from a peak of 1,028 a few years ago. Of those positions, 423 are federally funded.

To ensure the Virgin Islands has an adequate social safety net, Human Services distributes each year some $55 million in individual and family benefits. Demand for those benefits has grown during the last two years because of the recession.

Human Services officials have been focused on making sure that food stamps, needy family assistance and medical care remain available to all who rely on those programs.

The global economic downturn, however, presents a challenging conundrum. Like every other government agency, Human Services is attempting to tighten its belt and work within the constraints of a reduced budget. At the same time, the number of people who depend on the Department increases as the economy worsens, with more families desperately in need of emergency and financial assistance. Despite that difficult balancing act, Finch will tell legislators that with the requested budget, the Department can maintain essential services and operate quality programs efficiently. 

Additional challenges include a sharp rise in foster and residential costs for young children, as well as services required by the elderly. The territory's population has been aging. The number of senior citizens living in the Virgin Islands is 65 percent greater than it was at the start of the last decade. This demographic shift has resulted in long nursing home waiting lists for many frail elderly. The number of Meals on Wheels clients is also at an all time high.

This year, Human Services has prioritized improving the quality of early childhood services in the Territory. This is partly in response to troubling statistics that show educational inadequacies; studies report that Virgin Islands kids are already behind by the time they start school. The territory's youngsters must start kindergarten ready to learn. To achieve that goal, Finch has been working closely with other officials in the de Jongh administration to improve education and health services to young children and their families, an initiative that should yield numerous long-term social benefits. 

Finch will inform senators of a number of recent accomplishments: Human Services has reestablished the Developmental Disabilities Council and funded an ADA Vocational Summer Camp, completed a federal review of the Head Start program and provided curriculum training, increased parent volunteer participation in Head Start, increased benefits for needy families, held bereavement camp for children whose parents were victims of homicide, created many subsidized employment positions for seniors and the needy with ARRA grants, awarded mini-grants to child care providers, launched a program for juvenile aggression, and hosted Project Homeless Connect service days reaching 274 homeless people and planning sessions. 

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