We had previously informed you in a November 5, 1998 memo that the federal Social Services Block Grant funding was reduced by 17%. We have received the specific federal fiscal year 1999 allocations for Wisconsin. The net effect of the federal budget cut results in a 2.94% reduction in the CY 99 Basic County Allocations. As stated in that November 5 memo, the Department is implementing the reduction in CY 99. This means that the reduction reflects 15 months of lower SSBG dollars because the federal cut was effective October 1, 1998. We did not reduce 1998 contracts and instead implemented the reduction beginning January 1, 1999. The attached schedules identify the amount of reduction for the new 1999 BCA level.
You should be aware that there is still an additional SSBG reduction of 10% proposed by the federal government for FFY01. We will not know if this reduction is implemented until summer or fall 2000. We will keep you informed of federal budget actions on this program.
There have also been modifications of funding levels for Kinship Care Assessments (Profile 380) and CIP IB (564). These allocations have been lowered from the initial level to reflect the funds available to support the program.
The original allocation memo is also attached for your information. We have been informed that a number of agencies did not receive this memo.
Counties should be receiving the 1999 State and County Contract shortly for review and signature. The amount on the allocation attachment will be reflected in the contract.