Recently there’s been a buzz about
some excess funds at the Maryland Board of Social Work Examiners (BSWE) being
diverted from a planned refund to Maryland social workers. The money – something
like $450,000 – had come from the pockets of Maryland social workers paying
licensing fees. What we heard was that instead of the refund, the Governor would
be taking the money to pay for a new special Department of Human Resources (DHR)
project to develop what the Governor’s bill (HR148) referred to as a “social
worker training academy” - presumably at the University of Maryland School of
Social Work where much DHR training takes place.
Needless to say, we thought we
should check this out! Here’s what we learned.
Why the fees went up
Several years ago, BSWE raised its
bi-annual licensing fees significantly. (Different categories of social workers
owe different amounts; an LCSW-C would have jumped from $125 due in 2001 to $200
in 2003.)
There were two reasons for this
large increase, the first increase in tenyears. First, the BSWE is self-funded,
and the only way to cover expenses and staff salaries is to match costs with
licensing fee revenue. There had been two years of shortfall, some increase was
needed.
The second reason was that the State had decided to develop and install a new
electronic system to make on-line payments possible, with each agency to foot
the cost of a pro rata portion of this installation. BSWE was asked to budget
over a period of years for a one-time charge of up to an additional $800,000.
What happened next?
A State personnel freeze resulted in
some reduction in the staff expenses for BSWE. More dramatically, however, the
State decided that the Department of Health and Mental Hygiene should absorb the
entire cost of the new electronic payment system – thus freeing up several
hundred thousand dollars at BSWE.
What happened to our refund?
There was never going to be a
refund! Maryland State rules are clear that when there is excess money in an
agency’s account at the end of the fiscal year, 25% can be kept by the agency
for future needs, and the rest is to go to the State General Fund. Any talk of
giving social workers their money back came from a hopeful misunderstanding of
the rules; such talk did not originate at BSWE.
Here’s the good news: social
work licensing fees at every level will be reduced by 30% starting with the next
cycle (2005). Developing an effective fee structure is complex because of the
unpredictable comings and goings of licensees (moving out of the state,
retiring, beginning practice, etc). BSWE is hoping that the new fee structure
will produce the revenue needed without overburdening its social workers
licensees.
And the Academy?
Governor Erlich announced, through
his proposed budget proposal, that the BSWE excess funds be designated for what
appears to be a social work purpose. Perhaps we should be pleased, since as a
general rule, excess funds are simply absorbed into the State’s General Fund at
the end of the fiscal year, to be used without regard to their source. However,
in large measure because the announcement came as such a surprise to us all
(including BSWE), questions are being raised.
As of this writing, we know very
little about the proposed Academy for Social Work Training beyond its name and
the possibility that federal matching funds might be available. What has not
happened is the kind of thorough fiscal and health policy review we ordinarily
expect of our government as it makes budgetary decisions – an open process
beginning with public discussion and hearings, a fiscal and health policy
review, and a thoughtful determination of needs. Perhaps our concerns are
ill-founded, but is it possible that the proposed training may not be for social
workers, but rather a short-cut for certifying others to do “social work” for
less pay? And in any case, is a DHR training academy what social workers would
consider our most critical need in this time of budgetary distress?
These and other issues should have
been discussed before an announcement was made. “Transparency” needs to be more
just than a buzz-word: when an executive decision seems to bypass the
established protective checks and balances, we may be left with confusion,
feeling perhaps like victims of a political shell game.
And ultimately, what about the
breach of trust?
Let us agree that the State does
have the authority to take and spend these moneys at will. Still, does it not
amount to a breach of trust when a single specific class of workers is asked to
pay large fees ostensibly for covering costs for the monitoring of their
profession, and then that money is taken from their Board and proposed to be
used to fund a program for a statewide need? Social work licensees were
significantly overcharged: are we not looking at the proverbial “slippery
slope”? What a dangerous precedent to permit an overcharge to be arbitrarily
made and then, in effect, confiscated and treated as a windfall by the executive
branch!
By the time you read this, it is
likely that decisions will have been made in Annapolis – perhaps in support of
the Governor’s proposal, or perhaps in favor of more open consideration of the
proposed Academy and, hopefully, how best to handle the BSWE fund. Meanwhile,
your Legislative Council of Social Work Organizations (with representatives from
GWSCSW, NASW-DC Metro, and Maryland SCSW) and lobbyist Alice Neily will be
addressing our questions and concerns to DHR and to legislators.
We look forward to public
discussion, and will keep members informed via the listserve and our website (http://www.gwscsw.org).
If it appears that our members can influence the ultimate results, we will put
that on the listserve, too.
Prepared by Margot Aronson,
2/11/05