RD435 - Consolidation of Local Departments of Social Services in Localities with a Population of 20,000 or Less - December 2008


Executive Summary:
A review of data collected in accordance with the study resolution presents no compelling reason to mandate consolidation of LDSS in localities with populations of less than 20,000. However, a review of previous studies and reports, as well as the comments of directors of LDSS’ that have recently consolidated, suggests anecdotally that localities that voluntarily consolidate with a common objective of reducing costs and improving services are likely to achieve those objectives over time. Neither the statistical data nor the anecdotal data suggest an immediate appreciable cost savings or service improvement.

The Executive Summary of “The Need for Restructuring the Commonwealth’s Local Social Services Delivery System,” a legislative subcommittee report completed in 1993 on the need for restructuring the Commonwealth’s local social services delivery system, states:

Although the impetus for this study was a Wilder administration budget-reduction proposal to consolidate the management of the Commonwealth’s 124 local social service agencies into 38 agencies, the scope of the study included an examination of administrative costs and automation needs of local agencies. The subcommittee concluded that consolidation proposals imposing financial penalties on local social services agencies that fail to consolidate should not be pursued and that incentives for cooperation and consolidation would be a more productive avenue to pursue.

It does not appear that the environment for consolidation has changed significantly in a manner that would render the current environment conducive to mandatory consolidation.

A 2003 report by the Commissioner of DSS entitled “Report on the Study of Consolidation of Local Departments of Social Services” examined the consolidation of LDSS and the criteria and models used by jurisdictions to consolidate. The report contained several recommendations for future studies, including:

Conduct a study of local departments in designated geographic areas to determine if a combination of incentives, State department support and regional cooperation would facilitate consolidation.

Examine the creation of departments of human services in localities across Virginia.

Examine models for consolidation to develop a comprehensive method for localities to use when considering consolidation….”

DSS continues to believe that these recommendations have merit.

In addition, the General Assembly may wish to consider alternative efficiencies through use of technology. Enterprise applications have shown the capability to demonstrate efficiencies in the administration of program functions. Exploring technological advancements, including the use of enterprise applications to enhance efficiencies, may be a more viable long term solution.