Hawaii's Department of Human Services to Cut 41 Social Service Programs, Saving $84 Million Over Two Years

Strategic Insights -

As the state of Hawaii grapples with a $116 million budget deficit, the Department of Human Services will be terminating 41 social service programs, including those for children, families, and individuals in need, effective April 1. The cuts aim to save the department $84 million over the next two years and three months, with the majority of the savings coming from program reductions rather than layoffs. The programs being cut include support services for recovering drug addicts, family literacy programs, and teen pregnancy prevention initiatives, among others.

Key Takeaways:

  • The Department of Human Services will terminate 41 social service contracts, affecting programs such as Read Aloud America, Big Brothers Big Sisters, and the Institute for Human Services.
  • The cuts will save the department $84 million over two years and three months, with the majority of the savings coming from program reductions rather than layoffs.
  • The state's Medicaid shortfall is approximately $57.5 million, and the Temporary Assistance for Needy Families program shortfall is around $58.8 million, both due to increased enrollment caused by the economy.
  • Patricia McManaman, interim human services director, stated that the department prioritizes direct cash assistance and job training programs, leading to the elimination of support services for vulnerable populations.
  • Many of the contracts being eliminated will impact nonprofits in the community and the people they serve, with some organizations like Women in Need and Read Aloud America facing significant budget cuts.
  • The Human Services Department will bring contracted services in-house for additional savings.
  • The state is seeking emergency appropriations to cover the deficit, with plans to ask for money to make it through the rest of the fiscal year.

Statistics:

  • The Department of Human Services will terminate 41 social service contracts, with a total value of $21.7 million.
  • The cuts to the Social Services Division's positive youth development and family strengthening program will come with a loss of $6.2 million.
  • Women in Need, a nonprofit providing services for recovering drug addicts, will have to terminate half of its 14-member staff due to a loss of its $300,000 contract.
  • Read Aloud America, the state's largest family literacy program, will lose $1.4 million, or 95 percent of its budget.
  • The Department of Human Services is facing a $116 million budget deficit, with a $57.5 million shortfall in Medicaid and a $58.8 million shortfall in the TANF program.

Sources:

  • The Honolulu Star-Advertiser, February 2011
  • The Star-Advertiser, February 2011, citing Toni Schwartz, human services spokeswoman
  • The Star-Advertiser, February 2011, citing Patricia McManaman, interim human services director
  • The Star-Advertiser, February 2011, citing Alex Santiago, executive director of Phocused
  • The Star-Advertiser, February 2011, citing Jed Gaines, president and founder of Read Aloud America
  • The Star-Advertiser, February 2011, citing Mary Scott-Lau, executive director of Women in Need