FY 2016 Appropriation

The Utah State Office of Rehabilitation (USOR), under the direction of the State Board of Education, operates programs designed to assist individuals with disabilities through rehabilitation services and interventions to prepare for and obtain gainful employment as well as increase their independence. USOR contains a single line item and multiple programs, including an Executive Director's Office and four operating divisions: Services to the Blind and Visually Impaired, Rehabilitation Services, Disability Determination Services, and Services to the Deaf and Hard-of-Hearing. Detail on USOR operations can be found here.

Funding History

Funding Issues

USOE Indirect Cost Pool Transfers

No Description

Vocational Rehabilitation Structural Shortfall

A structural imbalance is when an agency's ongoing expenditures exceed ongoing revenues. The Utah State Office of Rehabilitation (USOR) has a structural imbalance in its Division of Rehabilitation Services (DRS) currently estimated to be $6,300,000 in state funds. The Division of Rehabilitation Services has been dealing with a structural imbalance since FY 2010. The DRS structural imbalance is primarily the result of: 1) 40 percent caseload growth from FY 2007 through FY 2013, 2) state and federal budget cuts during the same period, and 3) an internal decision by USOR to continue providing services to all who apply and are found eligible. Some other surrounding states established waiting lists (called Order of Selection) during this period to deal with budget reductions. USOR, instead, used a strategy of using one-time funding sources combined with reducing its overall expenditures per client in order to make its budget balance during this period. The one-time funding sources consisted of: 1) using accumulated reserve federal grant authority, 2) federal ARRA stimulus one-time funds, and 3) one-time federal re-allotment funds. All accumulated reserve federal grant authority and federal ARRA stimulus money have been exhausted. USOR estimates its current funds will last only through February 2015. USOR is looking to receive one-time funding to bridge it into the next fiscal year where a re-allotment of federal funds and USOR budget reductions will begin to bring its budget in structural balance.
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $81,578,400 from all sources for State Office of Rehabilitation. This is an 8.3 percent reduction from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $22,252,700 from the General/Education Funds, a reduction of 20.3 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Assistive Technology Program$0$500,000
OngoingOne-TimeFinancing Source
$0$500,000Education Fund, One-time
Funding this item provides items such as wheelchairs, ramps, grab bars, and hand bars in order to assist individuals with disabilities to be more independent in their homes and communities. This building block was funded with one-time money during the 2014 General Session. USOR states this request is, "to assist individuals with disabilities to be more independent in their homes and communities . . . to eliminate a waiting list of individuals with disabilities needing assistive technology devices."
Independent Living Center Services$0$275,000
OngoingOne-TimeFinancing Source
$0$275,000Education Fund, One-time
Under-served populations - Provide funding for Independent Living Centers to "Assist the six Centers for Independent Living to continue their efforts to serve youth and others with disabilities in training and education of independence and community integration skills (to include transition out of and diversion from nursing homes or other institutions)." This building block was funded with one-time money during the 2014 General Session but provides ongoing services. This funding is passed through to the independent living centers. USOR measures Independent Living Center performance by: 1) 20% of total served will be new consumers; 2) Report on total number served; 3) Report on number of youth served; 4) Report on number of individuals transitioned from nursing homes to the community; and 5) Report on number of individuals diverted from a nursing home placement."
Supplemental Federal Funds Adjustment - Office of Rehabilitation$0$6,400,000
OngoingOne-TimeFinancing Source
$0$6,400,000Federal Funds
No Description
USOE Indirect Cost Pool Transfers - USOR ($1,910,700) ($2,011,200)
OngoingOne-TimeFinancing Source
($1,910,700) ($2,011,200)Transfers - Indirect Costs
No Description
Voc Rehabilitation Structural Shortfall - Internal$0$2,928,200
OngoingOne-TimeFinancing Source
$0$2,928,200Education Fund, One-time
A structural imbalance is when an agency's ongoing expenditures exceed ongoing revenues. The Utah State Office of Rehabilitation (USOR) has a structural imbalance in its Division of Rehabilitation Services (DRS) currently estimated to be $6,300,000 in state funds. The Division of Rehabilitation Services has been dealing with a structural imbalance since FY 2010. The DRS structural imbalance is primarily the result of: 1) 40 percent caseload growth from FY 2007 through FY 2013, 2) state and federal budget cuts during the same period, and 3) an internal decision by USOR to continue providing services to all who apply and are found eligible. Some other surrounding states established waiting lists (called Order of Selection) during this period to deal with budget reductions. USOR, instead, used a strategy of using one-time funding sources combined with reducing its overall expenditures per client in order to make its budget balance during this period. The one-time funding sources consisted of: 1) using accumulated reserve federal grant authority, 2) federal ARRA stimulus one-time funds, and 3) one-time federal re-allotment funds. All accumulated reserve federal grant authority and federal ARRA stimulus money have been exhausted. USOR estimates its current funds will last only through February 2015. USOR is looking to receive one-time funding to bridge it into the next fiscal year where a re-allotment of federal funds and USOR budget reductions will begin to bring its budget in structural balance.
Vocational Rehabilitation Structural Shortfall$0$3,371,800
OngoingOne-TimeFinancing Source
$0$3,371,800Education Fund, One-time
A structural imbalance is when an agency's ongoing expenditures exceed ongoing revenues. The Utah State Office of Rehabilitation (USOR) has a structural imbalance in its Division of Rehabilitation Services (DRS) currently estimated to be $6,300,000 in state funds. The Division of Rehabilitation Services has been dealing with a structural imbalance since FY 2010. The DRS structural imbalance is primarily the result of: 1) 40 percent caseload growth from FY 2007 through FY 2013, 2) state and federal budget cuts during the same period, and 3) an internal decision by USOR to continue providing services to all who apply and are found eligible. Some other surrounding states established waiting lists (called Order of Selection) during this period to deal with budget reductions. USOR, instead, used a strategy of using one-time funding sources combined with reducing its overall expenditures per client in order to make its budget balance during this period. The one-time funding sources consisted of: 1) using accumulated reserve federal grant authority, 2) federal ARRA stimulus one-time funds, and 3) one-time federal re-allotment funds. All accumulated reserve federal grant authority and federal ARRA stimulus money have been exhausted. USOR estimates its current funds will last only through February 2015. USOR is looking to receive one-time funding to bridge it into the next fiscal year where a re-allotment of federal funds and USOR budget reductions will begin to bring its budget in structural balance.
Staff Analysis

Separate tables are shown under the tab labeled "Financials" in each COBI section. These tables provide information regarding: 1) funding sources (where the money comes from), 2) standardized state expenditure categories (where the money goes), and 3) agency sub-programs (when viewed at the line item level). For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

USOR Executive Director Detailed Purposes

Performance measures can be found at the individual program level.

USOR Performance Measures 1st Quarter Response - November 2014

Statute

Statutory provisions for the Utah State Office of Rehabilitation may be found in UCA, Section 53A, Chapter 24. In addition to state law, many functions provided by USOR have provisions detailed in federal law. Those federal law references, where available, follow the references in Utah Code.

Utah Code:

  • UCA title 53A, Chapter 24 -- State Rehabilitation Act, creates and defines the State Office of Rehabilitation and its functions.

Federal Law:

  • 29 USC 721 (a)(2) -- Designates the State Agency/Unit for Rehabilitation Services.

The Smith-Fess Act authorizing the state-federal vocational rehabilitation program was passed by Congress and signed into law in 1920. The program officially opened in Utah in 1921. The Utah State Office of Rehabilitation was created during the 1988 Legislative session under the direction of the State Board of Education and State Superintendent of Public Instruction. Prior to 1988 two separate departments, the Division of Rehabilitation Services and the Division of Services for the Blind and Visually Impaired, existed as separate divisions under the Utah State Office of Education. The Division of Services for the Deaf and Hard of Hearing was established to provide a community center, as well services to meet independent living, educational and community integration services with state funding, while the Disability Determination Services provides adjudication and review of Social Security benefits for people with disabilities and is completely federally funded.

USOR provides tailored services focusing on the needs, interests, abilities, and informed choices of each individual served. USOR provides direct rehabilitative services to clients through an array of professionals, and works in concert with other community service and resource providers to offer support services throughout the state.

Services are provided upon determination of eligibility for such. Eligibility requirements differ depending upon the division or services desired. In general, eligibility is based upon patrons having a physical or mental impairment that constitutes a substantial need in order to attain independence and/or gainful employment. State law requires a financial needs test to determine the extent to which a client may receive services.

Intent Language

HB0003: Item 94

The Legislature intends that the Utah State Office of Rehabilitation prepare proposed performance measures for all new state funding or TANF federal funds for building blocks and give this information to the Office of the Legislative Fiscal Analyst by June 30, 2015. At a minimum the proposed measures should include those presented to the Subcommittee during the requests for funding. If the same measures are not included, a detailed explanation as to why should be included. The Utah State Office of Rehabilitation shall provide its first report on its performance measures to the Office of the Legislative Fiscal Analyst by October 31, 2015. The Office of the Legislative Fiscal Analyst shall give this information to the legislative staff of the Health and Human Services Interim Committee.

HB0003: Item 94

The Legislature intends the departments of Health, Human Services, and Workforce Services and the Utah State Office of Rehabilitation provide to the Office of the Legislative Fiscal Analyst by June 1, 2015 a report outlining how funds are distributed within the state when passed through to local government entities or allocated to various regions and how often these distributions are reviewed and altered to reflect the relevant factors associated with the programs. (1) Is the program considered a statewide program (this would include something that serves all rural areas)? a. Is the implementation of the program really statewide? If not, is there a compelling reason why? (2) Who gets the money (by county)? (3) What is the methodology for distributing the money? a. How does the distribution compare to actual need as expressed by population? i. [If distributions are not reflecting current need (as represented by population), please explain why not?] b. If not done by population, what is the reason? (4) Does statute say anything about distribution and equity for the program?

SB0002: Item 87

The Legislature intends the Utah State Office of Rehabilitation (USOR), in conjunction with the Utah State Office of Education and the Utah State Board of Education, provide to the Office of the Legislative Fiscal Analyst no later than September 1, 2015: 1) A report on the USOR fiscal status for the recently completed state Fiscal Year 2015, including identification of one-time funding sources used to pay for ongoing services; 2) A projection of the USOR fiscal status for state Fiscal Year 2016, including any anticipated uses of one-time funding sources to pay for ongoing services; 3) A projection of the USOR anticipated fiscal status for state Fiscal Year 2017, including any anticipated uses of one-time funding sources to pay for ongoing services; 4) Any anticipated reductions in paid client services for state fiscal years 2015, 2016, or 2017; 5) The status of paid client services and numbers affected by reductions, if any; 6) The status of the Order of Selection waiting list and estimated numbers affected, if any; 7) The status of federal Maintenance of Effort and its effect on state liability; 8) Recommendations regarding the organizational placement of USOR and its subunits in order to provide proper oversight, management, and support; and 9) The history and current status of the individuals with Visual Impairment Fund.

SB0002: Item 87

The Legislature intends the Departments of Workforce Services, Health, Human Services, and the Utah State Office of Rehabilitation provide a report regarding each agency's highest cost individuals and possible efficiencies through coordination, early intervention, and prevention. The Legislature further intends these agencies provide a report to the Office of the Legislative Fiscal Analyst by September 1, 2015. The report shall include the following regarding high cost individuals: 1) a summary, by program, of individuals receiving services in excess of $100,000 total fund annually in any given agency, what percentage of total costs is spent on these individuals, and what the agency is doing to manage these costs in an efficient manner, 2) an assessment of these high cost individuals receiving services from multiple agencies, 3) a description of agency coordination regarding high cost individuals accompanied by a list of areas where agencies specifically coordinate on these high cost individuals, 4) recommendations regarding how best to serve these high cost individuals in least restrictive settings where appropriate and consistent with choice, and 5) recommendation on how agency efforts might better be coordinated across programs.

SB0002: Item 87

The Legislature intends that the Utah State Office of Rehabilitation prepare proposed performance measures for all new state funding or TANF federal funds for building blocks and give this information to the Office of the Legislative Fiscal Analyst by June 30, 2015. At a minimum the proposed measures should include those presented to the Subcommittee during the requests for funding. If the same measures are not included, a detailed explanation as to why should be included. The Utah State Office of Rehabilitation shall provide its first report on its performance measures to the Office of the Legislative Fiscal Analyst by October 31, 2015. The Office of the Legislative Fiscal Analyst shall give this information to the legislative staff of the Health and Human Services Interim Committee.

SB0003: Item 140

The Legislature intends that, under 63J-1-206(e), the Utah State Office of Rehabilitation transfer $9,837,000 from the federal Aspire Grant between the Executive Director's Office to the newly created Aspire Grant program beginning in FY 2016.

SB0007S01: Item 32

The Legislature intends that the Utah State Office of Rehabilitation report on the following performance measures for its line item: (1) Vocational Rehabilitation - Increase the number of rehabilitation outcomes (Target = 3,665), (2) Vocational Rehabilitation - maintain or increase a successful rehabilitation closure rate (Target = 60%), and (3) Deaf and Hard of Hearing - Increase in the number of individuals served by DSDHH programs (Target = 7,144) by January 1, 2016 to the Social Services Appropriations Subcommittee.

Two primary sources provide revenue for USOR. The largest contributor is the federal government, providing approximately 76 percent of total USOR revenues in FY 2014. In addition to federal funds, USOR receives a significant appropriation from state funds. Education Fund revenues, along with a small amount of state General Fund, account for roughly 23 percent of the total appropriation. In addition to state and federal resources, the office collects dedicated credits generated primarily through fees and the sale of services, goods and materials.

For analysis of current budget requests and discussion of issues related to this budget click here.

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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.