|   Weather   |   Traffic   |   Contact Us   |   Mobile
Follow us:



 
ADVANCED
SEARCH>>










ADVERTISEMENTS
RECENTLY POSTED JOBS
See all>




TOP JOBS
See all>
Share on Facebook
Share on Twitter
Delicious
Share
E-mail this article
E-mail
Leave a Comment
Comment
Print this Article
Print
advertisement

State health department head Joshua Sharfstein spent a day this week answering questions from people who were bewildered, skeptical and angry.

His inquisitors included the chairmen of two state Senate committees and roughly 250 service providers, caregivers and family members of Maryland’s disabled population.

The question they wanted answered: How did the Developmental Disabilities Administration fail to spend $34.5 million in state and federal funding at the same time the department has a long list of people awaiting its services?

Because of the accounting irregularity, this fiscal year the disabilities administration had to give back to the state’s general fund $25.7 million in unspent money that it might have used to provide services to its clients. The department’s list of people awaiting its services currently stands at 6,695.

On Thursday, 54 members of the House of Delegates sent a letter to Gov. Martin O’Malley (D) asking him to restore the $25.7 million to the DDA’s budget in his proposed fiscal 2013 budget.

“A failure to restore the reverted funds to the DDA budget would only serve to further strain a community that is already over-burdened and under-served in Maryland,” the delegates wrote.

In the meantime, some of Sharfstein’s questioners Wednesday — including Senate Finance Committee Chairman Sen. Thomas McLain Middleton — said the revelation of the unspent money particularly troubled them in light of the fact that the General Assembly this year hiked the state’s alcohol tax by 3 percent in part to provide funding to reduce the DDA’s waiting list.

Sharfstein said he and other department officials don’t know why the money went unspent and will hire a forensic auditor to provide an answer. He also pledged to retool DDA’s accounting system, which he called antiquated.

He laid out for senators and advocates a plan to beef up service for some of DDA’s most vulnerable clients this fiscal year and to revamp the way some of the administration’s support services operate so they can become eligible to receive more federal funding.

Senators and advocates praised his openness in revealing the problem, which came to light in July, and expressed confidence that he would act aggressively to fix the problem. But they stressed that they won’t be entirely convinced until they see the results of the secretary’s proposed reforms.

“We’re pleased that [Sharfstein] wants to make things right and that he wants to make things as transparent as possible,” said Laura Howell, the executive director of the Maryland Association of Community Services, a nonprofit dedicated to strengthening service to people with developmental disabilities. But, she added that she continues to be concerned about whether the administration will be able to receive the critical funding it needs in future years.

Unanswered questions

DDA officials first became aware of the unspent money in July, as they closed out the department’s fiscal 2011 books, said DDA Director Frank Kirkland, who took the reins of the department Aug. 1, after the irregularity came to light.

The closeout revealed $25.7 million in unspent state funding and $8.8 million in unspent Medicaid reimbursement money from the federal government that had been rolled over from fiscal 2010. Because the state money was unspent, it reverted to the general fund, Kirkland said, adding that officials were able to forward the $8.8 million in federal money to this year’s DDA budget.

Officials referred the matter to the department’s inspector general, Thomas V. Russell, Sharfstein said Wednesday afternoon in a briefing on the matter before members of the Senate Finance and Budget and Taxation committees.

Russell told the senators that his investigation revealed no evidence of criminal wrongdoing or fraud. However, he and Sharfstein said the investigation uncovered an antiquated communication and accounting system within DDA. Russell said he recommended that DDA revamp its accounting system and that officials hire a forensic auditor to probe the irregularity.

Officials have said they believe the unspent money built up over several years, but that the surpluses didn’t come to light previously.

Officials expect to hire a forensic auditor in several weeks, Thomas H. Kim, the health department’s deputy secretary for operations, told the committees.

Middleton (D-Dist. 28) of Waldorf said after the briefing that he was confident Sharfstein will correct the problem and put in place policies to ensure that it not occur again.

He added that if the process requires legislation, he would like to see a report from the audit by mid-March so that legislation can be filed and heard during the 90-day General Assembly session that begins in January. However, he added that he did want to speed up the process.

“I don’t want a rush job just so it coincides with the legislative session,” he said.

Allaying concerns

Sharfstein and other health department officials appeared before roughly 250 advocates and caregivers for the disabled in a town hall meeting Wednesday night at Woods Memorial Presbyterian Church in Severna Park.

During the two-hour session, a variety of speakers expressed outrage at the lost money, reiterated concerns about past funding cuts to DDA and complained of the red tape they must endure to receive service from the administration.

James List, a member of the board of directors of The Arc Baltimore, which provides advocacy and support to people with developmental disabilities, said he was concerned that revelation of the unspent money would hinder the Arc’s fundraising among private donors and asked Sharfstein to mount a public relations campaign to assure the public that funding for the disabled won’t be wasted.

The perception among some potential funders is that the DDA “threw away $34 million,” List said in a later interview.

As he did with the senators, Sharfstein laid out a plan in which DDA this fiscal year would spend $7 million to provide service to clients who are at high risk of a crisis and $6 million to beef up infrastructure — such as transportation and information technology — for providers.

Officials also will spend roughly $1 million this fiscal year to revamp some of DDA’s services so that they can become eligible for more federal funding. That would yield $10 million annually starting in fiscal 2014, Sharfstein said.

Brian Cox, executive director of the Maryland Developmental Disabilities Council, which advocates for people with developmental disabilities, said after the meeting that he hopes O’Malley will restore the lost money to DDA in future budgets.

“Families appreciate and support DHMH's initial steps to provide short-term services but they also have a very high expectation that Governor O'Malley address the mistakes that were made by restoring and increasing funds for ongoing services,” Cox said in an emailed response to request for comment. “There is tremendous unmet need.”

The delegates who sent the Dec. 1 letter to O’Malley want to ensure that the $25 million not be used to plug a deficit in the coming fiscal year, said Del. Heather Mizeur, (D-Dist. 20), of Takoma Park, who organized the letter.

O’Malley has not yet decided on the specifics of the state’s fiscal 2013 budget, spokeswoman Raquel Guillory said Thursday.

skelly@gazette.net