Record number seek help from state health care, human service programs last year

DES MOINES – A record number of Iowans sought assistance from state human services programs last year in the midst of the current economic downturn.

More than 892,000 Iowans -- roughly 31 percent of the state's population --received assistance for health care, food, welfare, child support collections or other social programs run by the Iowa Department of Human Services. Those figures are for fiscal year 2009, which ended June 30.

DHS Director Charles Krogmeier said their caseload is expected to grow in the next 12 to 18 months before declining.

The increased caseloads come as the state is facing its own budget challenges, but Krogmeier said they are not proposing that state lawmakers change eligibility guidelines for those programs to bring caseloads down.

“We're not recommending that the state back off of its commitment, particularly now,” Krogmeier said.

Enrollment in Medicaid, the state's health care program for low-income and disabled Iowans, jumped nearly 8 percent in fiscal year 2009. Officials say when the economy worsens and unemployment increases, more people access Medicaid to pay for health care needs.

The number of people receiving food assistance grew at an even faster rate, rising by more than 18 percent last year.

In June, more than 303,000 people were receiving assistance, compared to roughly 257,000 a year earlier. DHS officials have taken a number of steps to improve participation in the federally funded program, previously known as food stamps.

Enrollment in the state's Family Investment Program, which provides welfare benefits, also has begun to grow after a decade of declines. Last year, the program's caseload averaged nearly 15,700 families, rising nearly 1,100 from July 2008 to June 2009. Families received an average monthly grant of $318.

Ann Wiebers, a DHS official, said they expect the caseload to continue to grow before stabilizing in fiscal year 2011.

DHS officials have been directed to create a “status quo” budgets without spending increases. The proposed budget they presented Tuesday would spend $1.44 billion from the state's general fund in fiscal year 2011.

DHS officials are facing more uncertainty in the budgeting process this cycle as they wait for action by Congress.

Federal stimulus dollars from the American Recovery and Reinvestment Act that helped prop up DHS programs this year might not be there next year.

Another unknown is what Congress might do in its health care reform efforts that could affect funding for state health care programs.

A pair of potential cost-saving measures was not factored into DHS's budget proposal. DHS and a task force are studying the possibility of closing one of the state's four mental health institutions, and recommendations for a department reorganization also are expected this fall, Krogmeier said.

A hiring freeze has kept open about 250-300 department positions to save money, according to Krogmeier.