The Arc

Of The District of Columbia, Inc.

at the McCormick Pavilion
415 Michigan Avenue, NE • Washington, D.C. 20017
202-636-2950 • fax 202-636-2996
website: www.arcdc.net • email: ArcDC@arcdc.net

DEPARTMENT ON DISABILITY SERVICES (DDS)

MAYOR’S PROPOSED FY 2011 BUDGET

FY 2010 Budget FY 2011 Budget: Mayor’s Proposed

(Approved)
Proposed Cut ($) Cut (%)
TOTAL $95,129,832 $91,965,611 -$3,164,221 -3.33%
RSA $28,702,000 $27,991,000 -$711,000 -2.48%
DDA $50,685,000 $48,516,000 -$2,169,000 -4.28%
Management $15,742,832 $15,458,611 -$284,221 -1.81%

MAJOR CHANGES: REHABILITATION SERVICES ADMINISTRATION (RSA)

Amount Explanation
($2,000,000) A reduction in the District’s federally-mandated maintenance of effort
(MOE) for the federal Vocational Rehabilitation grant.

MAJOR CHANGES: DEVELOPMENTAL DISABILITIES ADMINISTRATION (DDA)

Amount Explanation
($1,299,370) Reduce Human Care Agreement by cost management of room, board, and
locally funded services
($1,016,500) Relocate consumers from out-of-state placements Agency Management
Program and convert to the Medicaid Waiver
($435,000) Reductions to budget for Quality Trust, Special Master, and Evans monitor
($276,700) Require employed individuals receiving DDA services to contribute to
their cost of care
($67,000) Offset food allowance in Human Care Agreements with qualified
individuals enrolling in food stamps
($49,000) Reduce consumer transportation expenses to projected expenditures
$571,000 Increase slots for residential services in the Human Care Agreement to
keep the DD Waiver open for urgent cases
$986,000 Increase contracted medical consultants

* Explanations of major changes for DDA are quoted from the Mayor’s proposed FY 2011
budget, available at http://cfo.dc.gov.

April, 2010. For more information contact T.J. Sutcliffe at (202) 636-2963 or tjsutcliffe@arcdc.net.
 The Arc
Of The District of Columbia, Inc.
at the McCormick Pavilion
415 Michigan Avenue, NE • Washington, D.C. 20017
202-636-2950 • fax 202-636-2996
website: www.arcdc.net • email: ArcDC@arcdc.net

DC REHABILITATION SERVICES ADMINISTRATION (RSA)

“MOE” FUNDING FACTS, APRIL 2010

RSA vocational rehabilitation services help District residents with disabilities gain independence
and self-sufficiency by helping individuals prepare for, obtain and keep jobs.

RSA Vocational Rehabilitation Programs are funded by Federal and local funds…

The federal share is 78.7% and the local share is 21.3% (34 CFR § 361.60(a)(1)).
States must provide a maintenance of effort (MOE)…

To keep receiving federal funds, a state must pay a local maintenance of effort (MOE)
equal to the state’s expenditure for the fiscal year 2 years prior (34 CFR § 361.62(a)(1)).

For FY 2011 the District’s MOE is $8,112,946, based on expenditures in FY 2009.
Proposed for FY 2011…

The RSA local fund MOE budget would be cut by $2M.

RSA plans to avoid a MOE deficit by:
o Applying for a federal exemption to its MOE;1 and/or
o Identifying local spending at other agencies that can count toward the MOE.

Is it a cut? Will services be affected?

RSA projects that it will have approximately $2.68M in carryover funds available in
FY2011. It plans to use these funds to help offset the $2M reduction in local funds.

Nevertheless, the proposed 2011 budget shows a net decrease of $1.211M in RSA
Vocational Rehabilitation Services. It is unclear if this includes carry-over funds.

Options for avoiding a MOE deficit are restricted…

The District cannot apply for an exemption until after the 2011 budget is final.

MOE expenditures cannot be “costs borne by another Federal grant,” (34 CFR §
80.24(b)(1)) nor can they also count toward “satisfying a cost sharing or matching
requirement” for another Federal grant or award (34 CFR § 80.24(b)(3)).

What happens if the District runs a MOE deficit in FY 2011?

The Federal payment for FY 2012 would be reduced by the amount of the MOE deficit.2

1
The Secretary of Education may waive or modify the MOE to permit a state to “respond to exceptional or
uncontrollable circumstances” such as a serious economic downturn…” (34 CFR § 361.62(d)(1)).
2
If a state has a MOE deficit the Secretary of Education will reduce the state’s federal payment in the following year
by the amount of the deficit (34 CFR § 361.62(a)(1)).

April, 2010. For more information contact T.J. Sutcliffe at (202) 636-2963 or tjsutcliffe@arcdc.net.