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HomeMy WebLinkAboutHuman Services Departmental Budget PresentationCity of Virginia Beach Proposed FY 2026-27 Human Services Department Aileen L. Smith, Director of Human Services April 14, 2026 1 Trends & Issues – Opioid Abatement, SNAP & Medicaid Benefits 2 •Through funding from the Virginia Opioid Abatement Authority (VOAA), the City of Virginia Beach has launched several new programs, including: •Community engagement vehicles for Human Services and Police, “Teen to Teen” social media campaign, Regional Recovery High School, and the EMS Next Steps Co-response Team. •Additional programs underway include the Human Services Prevention Van and the Regional Collaborative Mobile Wellness and Treatment Vehicle. •Funding for five (5) of these projects were renewed for FY 2026 and planning is underway to renew at least four (4) of the projects for FY 2027. Opioid Abatement •SNAP Eligibility: Historically 28,000-34,000 Virginia Beach residents receive SNAP benefits monthly. This number is expected to decrease due to work requirements and the elimination of exemptions for veterans, former foster youth and homeless individuals. •SNAP Error Rate: Effective October 2027, a new cost-share requirement based on payment error rates (PER) will be instituted. The introduction of the new cost-share requirement is expected to result in increased state and local operational costs. In addition, localities will need to focus on additional training for staff on the new regulations. SNAP •Medicaid Eligibility: In August 2025, approximately 88,000 Virginia Beach residents received Medicaid benefits, included in this number is 26,000 individuals enrolled through the Medicaid expansion program. This number is expected to decrease due to new eligibility restrictions centered around work requirements and who can qualify for Medicaid benefits. •Medicaid Renewal Period: Effective January 2027, expansion enrollees will need to provide verification information and be re-assessed every six months instead of annually. •Medicaid Co-Pay: Effective in FY 2029, expansion enrollees will be required to pay a $35 co- pay for any item or service received. Medicaid Major Budget Changes 3 •One (1) Family Support Specialist: This position will provide additional supervisory and caseload support as part of a planned restructuring of the adult Social Services Employment Unit. This unit supports the Benefits team and assists with monitoring and supporting new Medicaid mandatory work requirements. Increases in these work requirements and new limitations on exemptions are expected to increase the caseload for this unit significantly. •The cost of this position is 65% funded by state and federal funds. Family Support Specialist – $29,454 (Net Cost) •Two (2) Additional Benefits Program Assistants: These positions will improve the department’s capacity to lower benefit error rates in advance of new and significant financial penalties that will be imposed in the upcoming year. Without the sufficient capacity necessary to achieve and maintain an acceptably low error rate, the penalties that would be imposed are significantly more expensive than the cost of these positions. •The cost of these two (2) positions is funded through an equal reduction in contracted manpower. Benefits Program Assistants – $0 (Net Cost) •The planned use of fund balance will be used to support the Permanent Supportive Housing program. The planned use of fund balance is a strategic approach that allows the department to maintain continuity of operations. Use of Restricted Fund Balance – $1,792,092 Questions? 4