The budget cuts are starting and the largest government agency looks like it will take the first hit. The Department of Health and Human Services has been notified that their budget could be trimmed by as much as $173 million.
DHS’s current budget is $1.13 billion; the 15% cut would bring the budget down to $954 million. Agency director, Charlie Krogmeier, stated that the cut may require laying off 500 employees. The agency currently has about 5,700 employees.
The director also noted that all 99 counties have DHS workers and this could cause some regionalization of these county programs. It could also involve closing some of the government wards and institutions around the state. Less staff may also create longer caseload waiting times for assistance with adoptions or to get approved for a specific program.
The largest agency expenditure is on Medicaid payments to low and moderate income Iowan’s. Over 435,000 people are enrolled and are covered by Medicaid.
As I read the data concerning this cut it struck me about why the legislature might cut this agency? I realized that there is a possibility that it could be back-filled with federal funds. I find it interesting that government always finds a way to keep its programs. Taxpayers will continue to pay, if the State cannot find the means, the federal government will find a way to help out.
I am learning that government has become a game. A shuffling of money pots and programs. We hear about the massive budget gap but it’s only a gap when you cannot find another fund or government agency to grab the money from. It is impossible to get your hands around such massive bureaucracy.