STATEMENT OF SAM MCCONNELL, CHAIRMAN, HEALTH AND WELFARE COMMITTEE, LEGISLATOR OF THE STATE OF ARIZONA ARIZONA DEPARTMENT OF ECONOMIC SECURITY-VOCATIONAL REHABILITATION PROGRAM Neither Federal legislation nor Federal regulations, based on the Vocational Rehabilitation Act, have provided for a comprehensive single State agency responsible for the delivery of multiple categorical program services through a single organization. The Arizona Department of Economic Security is unique in State human resource departments. It is not an umbrella agency. It is a single State agency and the director is responsible, with line authority, for all direct consumer services. A single unbroken line of authority exists from the director down to the individual who provides client services to the consumer. Program quality and integrity is preserved and accounted for by staff bureaus who provide the technical assistance needed by any line organization. In addition to program and procedures development as well as assistance to the line organization as changes are implemented, the staff bureaus are responsible for a continuing monitoring and evaluation of the direct delivery of services to consumers. They assure that people who are eligible for and can benefit from services are served. They assure that positive results are being achieved through the delivery of services to people. They assure that the resources are distributed geographically and by client group on an equitable basis. They assure that the line organization does not direct resources from one categorical program to another. They assure that program linkages are formed that maximize the utilization of resources available through any one single program and prevent inappropriate utilization of one program resource, even though it may be legal, when another program has primary responsibility for providing that service. One classic example of inappropriate though legal utilization of Voc Rehab resources is the use of V.R. funds for medical costs, particularly for indigents, when health services have the legal responsibility, obligation, and financial resources to provide the medical services. Agreements with county health department and the State health services department are being and will be developed. The fiscal integrity of a categorical funding source must also be guarded. Assurance that funds are spent only on those eligible for the expenditure and assurance that staff resources are expended only on those eligible to receive services must be maintained. This involves cost accounting controls and recording of staff time. Consumers receiving services, the services received, the results achieved, the employee time, the employee activities or the services provided to the specific consumer must all be recorded and charged to the appropriate categorical program. No categorical program can be charged for services provided to an ineligible consumer nor can services not authorized under a particular categorical program be charged even though the consumer is in need of those services and eligible for the program. The budget development and control bureau, the accounting bureau, and the internal audit section share the responsibility for assuring continuing program fiscal integrity. Now to some realities. No Federal categorical program, with the possible exception of an income maintenance program such as social security, is ever funded at a level sufficient to provide services to all those eligible and in need of services. Voc rehab in Arizona is not an exception. There are approximately 60,000 eligible handicapped individuals in Arizona. Careful use of resources permits the voc rehab program to provide services for up to 1/3 of the eligible recipients. The State must find other ways to provide the services that are demanded by the people that are eligible and in need of services. This can only be accomplished through utilization of other program resources available through the Department of Economic Security. Consumers in need of human resource services are individuals with multiple problems and multiple needs. They are in need of personal counseling and, more often than not, family counseling. They need income for living expenses, both personal and family. They need training and retraining. They need medical as 1 The vocational rehabilitation counselor in field offices establishes eligibility for vocational rehabilitation services, develops an individual rehabilitation law and authorizes the expenditure of vocational rehabilitation funds. sistance ranging from something as simple as eyeglasses to something as complex as open-heart surgery. They need employment placement assistance. Frequently the latter must take the form of employer subsidy such as O.J.T. or breakage and spoilage of the product. Transportation while in process and while in job entry, occupational license, employment bonding, and tools of the trade, to name just a few of the needs that can either be provided out of voc rehab funds, which in turn reduces the number to be served, or from other D.E.S. resources that can and do provide a fiscal response to these needs. People, their lives, their families, future generations are at stake. Failure to support the family unit in this time of crisis results in breakdown of the family unit, divorce, delinquency, and the beginning of or the continuation of the poverty cycle. Continuation of fragmented categorical programs, each competing for a like or similar consumer group, none funded to meet either the universe of need or all of the services needed by the individual and the family unit, ignores the very real problem of individuals and family units. Arizona has taken a massive forward step that no one has had either the courage or foresight to take. Arizona has combined social services, public assistance, unemployment insurance, employment services, vocational rehabilitation, veterans services, apprenticeship program, economic opportunity programs, and comprehensive manpower planning in an effort to meet the universe of need for services through a delivery of comprehensive services that maximizes the positive aspects of each program. We did not create the categorical program authority and arouse the expectations of the eligible consumer groups. We did not recommend a level of funding far below the level of need. We did take a positive step in combining resources in order that more eligible consumers would be served with increased positive results. We are eliminating administrative overlap in categorical programs! We are eliminating duplication of effort and administrative cost. In short, in Arizona we will get more "bang for the buck!" Arizona has designed, through legislative action, a comprehensive delivery system that goes beyond concern for private fiefdoms and perpetuation of status quo. We care about people. We believe people in need of services are more important than organizational structure. We believe that an organization that is not responsive to the needs of people must change. Arizona has done something about it and in so doing has built in all of the needed checks and balances to assure program quality, program integrity, and program fiscal integrity. Controls have been developed and installed. We believe that today's demands for responsive government have created a crisis situation whereby you are either part of the problem or part of the solution. Arizona is part of the solution. We will be more than willing to work with the individuals responsible for drafting regulations in an order to develop new Federal regulations that provide for and recognize this type of response to the needs of people. We will work with individuals responsible for drafting legislation that provides for this type of response to the needs of people. Let's not penalize consumers because existing regulations and legislation have not previously considered this innovative response to local consumer needs. We find ourselves at a crossroads. Either fund the programs at a level to meet the universe of need or provide the latitude for States to develop the best local response. We are all in accord that the quality, the program integrity, and the fiscal integrity must be preserved. Reasonable people can arrive at arrangements which will assure these concerns are met and people are served in a responsive manner that maximizes the available resources. STATEMENT OF THE NATIONAL RECREATION & PARK ASSOCIATION ON VOCATIONAL REHABILITATION PROGRAMS Mr. Chairman, we appreciate this opportunity to present our views on the Vocational Rehabilitation programs of the U.S. Department of Health, Education and Welfare. The purpose of this statement is two-fold. First, to discuss the role and importance of recreation and leisure services in the successful rehabilitation of the handicapped and disabled of our nation; second, to express our grave concern over the lack of commitment shown by the Administration to rehabilitation of the disabled and the Administration's apparent disdain for Congressional mandates in carrying out rehabilitation programs. |