NDACo Provides Testimony on Social Service Redesign Progress Including Issues Related to Indirect Costs

Traynor testifies at Interim Human Services Committee

The Interim Human Services Committee received the first update on the redesign of county social services since the Legislature passed SB 2124 earlier this year. This monumental legislation provides state funding for county social services, and will result a more efficient method to deliver and administer social services to citizens. The committee recently requested NDACo Executive Director Terry Traynor to provide the county’s perspective on how the project is progressing.

“In June we had a statewide meeting of social service directors, county commissioners, social service board members and county auditors in June. This was surprising in its productivity,” testified Traynor. “When groups of counties were asked to break out and discuss with their neighbors the likelihood of creating zones, it was a testament to the commitment these officials have for implementing the law and doing the best for North Dakota citizens.”

The counties themselves, with very little guidance from the state Department of Human Services, have formed 19 zones. This is from 46 local social service agencies. A statewide transition team has been created involving Traynor, four county directors, and a half dozen DHS staff. They have held weekly meetings to address issues as they surface.

“Obviously, there is a lot yet to do, this is an enormous undertaking, but my confidence is high that results, very positive results, will be achieved,” said Traynor.

The committee asked Traynor to convey any concerns counties have about the implementation of the redesign project. Traynor and NDACo staff have attended numerous county visits to gather input, concerns and ideas.

“We are talking about the delivery of vital human services to the most vulnerable North Dakotans, and we are also talking about the employment of about 1,000 of our citizens. So, there are, and should be, concerns. Officials and staff have some degree of anxiety, and I suspect it will continue through the interim.” Traynor added, “As part of the transition team, we are hopeful that we can lessen this anxiety with each question that gets answered and decision that is made, both locally and at the state level.”

He also summarized the work counties in most zones are doing to find solutions in addressing employee benefits. With 46 separate local social service agencies, there are 46 separate benefit packages. “When we merge employees with disparate benefits, we must do so with great care that we avoid significant impacts to employees and their families or disrupt the benefit programs that are ‘left behind’.”

The longer-term issue for the committee to be aware of relates to “indirect costs” and how the Legislature will address them in 2021. “The various means of addressing space (rental or county-owned), office equipment (agency-owned, or for countywide use), travel (mileage reimbursement, motor pool, agency-owned vehicles), IT support, insurance, etc. are quite different,” Traynor explained. “As planning moves these towards greater uniformity, I firmly believe we will need to be very careful that more of these costs don’t become just partially reimbursable. If this is the Legislature’s decision, it would undoubtedly mean a county general fund tax increase that could taint the success of this important initiative.”