Cuts coming for Iowa Department of Human Services

The head of the state's human services agency today said he is looking at sizable cuts to jobs, provider rates and service delivery to save $132 million yet this fiscal year.

Charles Krogmeier, director of the state Department of Human Services (DHS), said he may have to resort to layoffs ranging from 150 positions up to 400 full-time jobs to comply with Gov. Chet Culver's order to cut general-fund spending across-the-board by 10 percent between now and next June 30.

Another possible cost-cutting option would be reducing the reimbursement rates paid to service providers under Medicaid or other DHS programs, he said. Also on the table are reorganization options to merger the eight DHS service area into a smaller number and expand the number of part-time DHS offices beyond the current 34 counties that have less than full-time hours.

“In general terms there will be some layoffs,” Krogmeier told members of the Council on Human Services. “There will be more counties that have part-time offices. There will probably be fewer services areas instead of eight.

“There will be some impact on provider rates in various program areas. Whether we target that in certain areas or do an across-the-board is one of the items that, frankly, is up in the air right now,” he said.

Krogmeier said he planned to meet with DHS staff, state Department of Management officials and union representatives over the next few days and have a tentative plan by Friday that he can analyze over the weekend and make public next week.

The state human services department currently has about 5,700 full-time positions – of which 264 jobs currently are unfilled, he said. Some DHS employees have indicated they would prefer unpaid furloughs to layoffs, but Krogmeier said it is difficult to implement furloughs while maintaining full work shifts at state institutions that are 24-hour operations.