FY 2016 Appropriation

Rehabilitation Services is comprised of two major programs: Vocational Rehabilitation and Independent Living.

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, $47,628,400 from all sources for Rehabilitation Services. This is an 18.8 percent reduction from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $15,012,800 from the General/Education Funds, a reduction of 28.6 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."
USOE Indirect Cost Pool Transfers - USOR ($828,500) ($872,100)
OngoingOne-TimeFinancing Source
($828,500) ($872,100)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

For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

USOR Rehabilitation Services Detailed Purposes

Increase the number of rehabilitation outcomes

Maintain or increase a successful rehabilitation closure rate

Regarding the negative trend greater than 5% to maintain or increase a successful rehabilitation closure rate from the Vocational Rehabilitation program performance measures, the agency states, "This negative measure is a first for the division. In anticipation of an Order of Selection (Wait List), DRS strategically directed VR Counselors to review their client bases and close the cases of any clients not making adequate progress toward employment in an attempt to ensure that limited resources were available to individuals making progress toward employment. This resulted in DRS having more unsuccessful closures than were planned for in the development of these performance measures."

Statute

The statutory references below detail the Division of Rehabilitation Services, Assistive Technology Services, and various advisory councils in Utah law. Appropriate federal law references may be found following the state code section.

Utah Code:

  • UCA 53A-24-110.5 -- Establishes the Rehabilitation Services Advisory Committee as an advisory council for the Utah Center for Assistive Technology.
  • UCA 53A-24-110.7 -- Provides an ongoing revenue source for Assistive Technology. Funding assists individuals in accessing, customizing, or using assistive technology devices.
  • UCA 53A-24-114 -- Establishes the Governor's Committee on Employment of People with Disabilities and defines its duties.
  • UCA 53A-24-202 -- Establishes within the Utah State Office of Rehabilitation, the Division of Rehabilitation Services.
  • UCA 53A-24-203 -- Provides that the Executive Director of USOR appoint the director of the Division of Rehabilitation Services with the approval of the State Board of Education.
  • UCA 53A-24-204 -- Outlines the statutory responsibilities of the Division of Rehabilitation Services.
  • UCA 53A-24-205 -- Provides for the creation of an advisory council for the Division of Rehabilitation Services to advise the office on issues relating to the needs of persons with disabilities and how they relate to office functions and vocational rehabilitation services.

Federal Law:

  • 29 USC 721 (a)(2)(B) -- Designated State Unit
  • 29 USC 721 (a)(21)(A)(ii) -- State Rehabilitation Council
  • 29 USC 796 (1) -- Independent Living Services
  • 29 USC 796 (3) -- Statewide Independent Living Council.

Vocational Rehabilitation provides services directed towards the goal of employment. Services include clinical vocational rehabilitation counseling and guidance, comprehensive assessment of rehabilitation needs, assistive technology, job training, job placement, and post-employment follow-up. Eligibility for vocational rehabilitation is based on the presence of physical or mental impairment that constitutes a substantial impediment to employment. Once determined eligible, an individual will work with a counselor to develop an individualized program that leads to employment.

The division provides statewide services to people with disabilities through 28 offices. All 41 school districts in the state, through cooperative agreements, receive vocational rehabilitation services. Vocational rehabilitation counselors are assigned to each high school in the state. The division also works through cooperative agreements with the Department of Workforce Services, the Division for Children with Special Health Care Needs, the State Board of Regents, the Division of Services for People with Disabilities, the Division of Medical and Healthcare Financing in the state Department of Health (Medicaid), and the Division of Substance Abuse and Mental Health.

Utah's Independent Living Centers enable people with disabilities statewide to live independently. The Division of Rehabilitation Services works with the independent living centers, the Division of Services for the Blind and Visually Impaired, and the Utah Statewide Independent Living Council to coordinate services. Services provided include: peer support, skills training, recreation and community integration programs, and assistive technology.

Eligibility for the program is based on the presence of a disability coupled with the ability to benefit from services. All services are based on individual need in accordance with an Independent Living plan that includes specific goals and objectives. Services are time-limited and designed to assist consumers to increase and maintain their levels of independence and community participation.

Currently, six Independent Living Centers (ILC's) and four satellites operate throughout Utah, including: Options for Independence in Logan with a satellite in Brigham City; Roads to Independence Center in Ogden; Utah Independent Living Center in Salt Lake City, which also operates a satellite in Tooele; Central Utah Independent Living Center in Provo; Active Re-Entry Independent Living Center in Price, which also operates two satellites in Vernal and Moab; and Red Rock Independent Living Center in St. George. Each ILC operates on a combination of State and federal funding. All ILCs provide, at a minimum, the services detailed above.

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.

The federal government provided the largest portion of division funding at over 78 percent in FY 2014. A combination of state funds (Education Fund and General Fund) contributes roughly 21 percent of division funds. The remaining division revenue is generated through dedicated credits. The division's dedicated credits revenue comes from a Department of Workforce Services receivable contract, a Department of Health receivable contract, and the Department of Education -- At Risk Students receivable contract, all of which contribute to this revenue source.

The division's dedicated credits revenue comes from a Department of Workforce Services receivable contract, a Department of Health receivable contract, and the Department of Education -- At Risk Students receivable contract, all of which contribute to this revenue source.

Rehabilitation Services receives revenue from state General Fund of $270,400. This funding stream has existed at or near the current level for several years. The General Fund appropriation provides for the Utah Center for Assistive Technology (UCAT). UCAT began as a federal grant serving multiple state agencies, such as the Division of Services for People with Disabilities, the Division for Children with Special Health Care Needs, the Division of Aging, and the Department of Workforce Services. When the federal grant ended, the Legislature continued the program and placed the Center under the direction of the Utah State Office of Rehabilitation. The General Fund is used to continue services to other non-education related state agencies. Note: the Utah Center for Assistive Technology (UCAT) is a separate entity and different than the Utah College of Applied Technology, also known as UCAT.

Display By:
Appropriation Type:
Appropriation History by
Show Table   |   Show Additional Information

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.