MINNEAPOLIS, February 1, 2008—Minnesota is distributing $32.7 million in state money to counties to help them cope with the loss of more than $60 million in federal funding  for care for troubled, abused or foster children.

"That will help, but the fact is that most of these important and effective programs are being cut back, and in some cases eliminated," Patricia Coldwell, policy analyst for the Minnesota Association of Counties, told the Star Tribune.

The federal cutbacks spell pain for children, families and older and disabled adults, she told the reporter.

State, county and social service agency officials all told legislators that changes to a Medicaid rule that take effect March 3 will take a bite out of a county-operated service called targeted case management.

Targeted case management allows social workers to assess the needs for an entire family, develop a care plan and then seek medical and psychological help, housing, jobs, education, parenting help and other services.

In a strongly worded letter last week to the Centers for Medicare and Medicaid Services (CMS), the Minnesota DHS argued that the rule changes "are so problematic that we request that CMS withdraw this regulation altogether."

The Legislature last year set aside $32.7 million to help ease the impact of the cuts on counties.

Star Tribune article