There are many questions about the impact facing the Colorado Department of Human Services (CHDS) due to the recent sequestration. Sequestration is $85 billion in Federal spending cuts across most departments and agencies because Congress was unable to reach an agreement on how to reduce the budget deficit.
There are a number of federal human service programs that are exempted from sequestration, including Social Security benefits, Medicaid, Child Care entitlements to states, Foster Care and Adoptions, Food Assistance, Child Support Enforcement and Temporary Assistance to Needy Families (TANF).
For programs that are not exempt from the sequestration cuts, the impacts will vary from program to program. In some instances, a federal agency has informed the department that the agency is taking every step to mitigate effects of these cuts, but based on initial analysis, it is possible that program grants or cooperative agreement awards may be affected.
In other instances, the federal agency has told CDHS that, based on initial analysis, the overall funding for fiscal year 2013 will likely be reduced by either 5 percent or 5.1 percent, but also states that reductions for individual grants will vary depending on the factors that are used to allocate funds in accordance with statutory requirements.
Based on current information CDHS is not anticipating any major disruption in levels of service, or impacts to current staffing in 2013. Many of the programs will be able to manage any reduction in funding using unspent funds from prior grant periods, or through vacancy savings. Some contracts may need to be reduced between now and September 30, 2013, but the level has not yet been determined.
CDHS will post pertinent documents to this site as they become available.