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Student Financial Aid Program (State) Vocational Rehabilitation 09/15/2009 Vocational Rehabilitation Page 1 09/15/2009 Vocational Rehabilitation Page 2 Item 24 - Vocational Rehabilitation - Salaries and Benefits 2010-11 BUDGET REQUEST 2010-11 2009-10 Fund Source 2009-10 Restoration Requested Total Request Appropriation Non- Recurring Base Funding % Change Recurring Base of Non- Increase/ Recurring Change Over Over Current Recurring (Decrease) Current Year Year Gen Rev 9,255,992 0 0 9,255,992 9,255,992 0 9,255,992 0 0.00% Admin TF 196,452 0 0 196,452 196,452 0 196,452 0 0.00% Fed Rehab TF 35,849,326 0 0 35,849,326 35,849,326 0 35,849,326 0 0.00% Workers' Comp Admin 4,531,717 0 0 4,531,717 4,531,717 0 4,531,717 0 0.00% Total 49,833,487 0 0 49,833,487 49,833,487 0 49,833,487 0 0.00% REQUEST NARRATIVE SUMMARY OF BUDGET REQUEST: • COST TO CONTINUE Continuation funding of $49,833,487 is requested for 1,007 full-time employees in the Division of Vocational Rehabilitation to support 68 field units for general vocational rehabilitation services, six district offices for the Bureau of Rehabilitative and Reemployment Services, and the Division's central office. • SALARY RATE AUTHORITY A salary rate authority increase of $2,149,394 is requested to provide targeted salary increases in order to attract and retain qualified staff. The request will increase the salary rate authority from $35,823,228 to $37,972,622. Based upon the historical turnover rate and current vacancies, the Division has sufficient budget authority to cover the requested salary rate authority increase. KEY DEPARTMENT OF EDUCATION EXECUTIVE RESPONSIBLE AND ALTERNATE CONTACT: Bill Palmer (850) 245-9399 or Alternate David Guido (850) 245-3305 ISSUE NARRATIVE: SALARY RATE AUTHORITY An increase of 6% in salary rate authority is requested for the Division of Vocational Rehabilitation (Division) to attract and maintain qualified counselors and staff. The increase of $2,149,394 would increase the salary rate authority for the Division from $35,823,228 to $37,972,622. The salary rate authority is needed for the Division to be able to provide competitive salaries for counselors and other staff. The average salary for an entry-level Vocational Rehabilitation Counselor as of May 2009 is $31,100. Vocational Rehabilitation’s State Plan with the federal government indicates that Florida Vocational Rehabilitation will, by 2012, have all counselors meet a national standard of being eligible to take the Certified Rehabilitation Certification exam. At the current time, only 52% of Florida’s counselors meet this standard. The minimum criteria for this certification include a master’s degree in vocational rehabilitation or related field. Current salary levels are insufficient for the Division to be competitive in attracting and retaining qualified individuals with a master’s degree. Additional salary rate authority is necessary for Florida to comply with this requirement. Comparable federal jobs with the Veteran’s Administration are reported to begin at $54,500. In addition, Florida is 14.5% below the national average for entry-level counselors. During 2008-09, the Division’s employee turnover rate at the entry-level counselor position was 32% (59 of 186 positions). For Senior Counselor positions, the employee turnover rate was 15% (27 of 181 positions). Turnover of counselor positions and other staff is costly with regard to training. Most importantly, counseling turnovers have a negative impact on the success of Vocational Rehabilitation customers. Data shows that a customer whose 09/15/2009 Vocational Rehabilitation Page 3 counselor changes is twice as likely to be unsuccessful as those who have one counselor. In February 2007, Vocational Rehabilitation implemented an exit interview for employees leaving the Division. Sixty- two percent of those completing the survey indicated that they were dissatisfied with their salary, and 40% indicated that salary was the primary reason for leaving the Division. The Division of Vocational Rehabilitation continues to be under an Order of Selection which is a federal requirement to provide a fair and orderly way to serve clients when financial and/or human resources are insufficient to meet all clients’ needs. Since the Order of Selection was invoked on August 4, 2008, 15,113 individuals have been selected for services from the waiting list. The waiting list currently contains 11,230 individuals requiring services and an additional 4,227 individuals are in the application process. Maintaining quality personnel and providing service consistency for Vocational Rehabilitation customers are critical to reducing the waiting list and achieving overall success for Vocational Rehabilitation customers and the Division. GOALS DEPARTMENT OF EDUCATION GOALS: [ ] 1. Strengthen foundation skills [ ] 2. Improve college and career readiness [ ] 3. Expand opportunities for post-secondary degrees and certificates [ ] 4. Improve quality of teaching in the education system [ ] 5. Improve K-12 educational choice options [X] 6. Align resources to strategic goals PROGRAM BACKGROUND LONG RANGE PROGRAM PLAN: Vocational Rehabilitation - General Program(ACT1625) Worker's Compensation (ACT0561), STATUTORY REFERENCES: Sections 413.20-413.74 and Sections 440.491, Florida Statutes Rehabilitation Act of 1973, as amended PURPOSE: To provide vocational rehabilitation services to individuals with disabilities and injured workers; and to enable them to maximize employment opportunities, economic self-sufficiency and independence. PROGRAM DESCRIPTION: Vocational Rehabilitation is a federal and state grant program per Chapter 413, Florida Statutes, and the Federal Rehabilitation Act of 1973, as amended. The Vocational Rehabilitation Program serves individuals with a broad range of disabilities and provides eligible individuals the opportunity to obtain gainful employment. This program is administered on a statewide, comprehensive, coordinated basis and requires 21.3% state funding match to 78.7% federal funding. All of the $9,255,922 general revenue recurring dollars are used for match. The Rehabilitation and Reemployment Services Program is designed to assist eligible injured workers, who have suffered a work injury covered by the Florida Workers' Compensation Law, return to suitable gainful employment through the provision of reemployment services. The Division of Vocational Rehabilitation is comprised of 1,007 employees (FTE) of which 86% are dedicated to supporting direct services to customers with disabilities and injured workers. The Basic Support Program is administered through 68 offices statewide with 795 (79%) employees providing direct client services. The Injured Workers Program is administered through six offices statewide with 70 (7%) employees providing direct client 09/15/2009 Vocational Rehabilitation Page 4 services. The Salaries and Benefit category is a match category for federal grant purposes. The division's match is calculated using general revenue match categories and Basic Support Program categories as follows: FY 2009-10 Appropriations General (for Basic Support Program) Revenue Trust Fund Total Salaries and Benefits (Match) $ 9,255,992 $ 35,849,326 $ 45,105,318 Purchased Client Services (Match) 26,018,630 81,987,847 108,006,477 Transfer to DMS/Human Resources (Match) 74,883 281,690 356,573 Data Processing Services Other (Match) 154,316 515,762 670,078 Other Categories (Non-Match) 0 18,912,816 18,912,816 (OPS, Expenses, OCO, Contracted Services, Risk Management, and Education Technology and Information Services) Total Appropriations for Match and $35,503,821 $137,547,441 $ 173,051,262 Non-Match Categories Percentage of Appropriations 20.5% 79.5% 100.0% (Note: The appropriated percentage for general revenue and the federal trust fund do not match the exact General Revenue/federal match ratios.) For matching purposes, General Revenue costs are limited to four categories ((1) Salaries and Benefits; (2) Purchased Client Services; (3) Transfer to the Department of Management Services - Human Resource Services Purchased per Statewide Contract; and (4) Other Data Processing Services); and, all federal trust fund costs (i.e. all federal trust fund categories) are used in the match calculation. A match ratio of 21.3% non-federal to 78.7% federal is required. Once the general revenue match requirement has been met and the Division draws the full 78.7% in federal funds, all federal trust fund categories including those categories which do not contain General Revenue match can expend federal funds. PRIOR YEAR FUNDING: •2008-09 - $48,985,390 •2007-08 - $49,753,127 09/15/2009 Vocational Rehabilitation Page 5 Item 25 - Vocational Rehabilitation - Other Personal Services 2010-11 BUDGET REQUEST 2010-11 2009-10 Fund Source 2009-10 Restoration Requested Total Request Appropriation Non- Recurring Base Funding % Change Recurring Base of Non- Increase/ Recurring Change Over Over Current Recurring (Decrease) Current Year Year Fed Rehab TF 819,103 0 0 819,103 2,994,763 2,175,660 819,103 (2,175,660) (72.65%) Workers' Comp Admin 125,742 0 165,284 291,026 125,742 0 125,742 165,284 131.45% Total 944,845 0 165,284 1,110,129 3,120,505 2,175,660 944,845 (2,010,376) (64.42%) REQUEST NARRATIVE SUMMARY OF BUDGET REQUEST: • COST TO CONTINUE Continuation funding of $944,845 is requested to hire temporary employees such as undergraduate students or graduate assistants, for the Vocational Rehabilitation program and the Bureau of Rehabilitation and Reemployment Services. • RESTORATION OF NONRECURRING The division is not requesting
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