HARRISBURG - The state's top United Way official is calling for an independent evaluation of how a state law to produce an estimated $400 million in savings under the Department of Public Welfare was carried out.
The 2011 law gave DPW Secretary Gary Alexander special authority for one year to expedite regulations to put the anticipated savings in effect through such steps as changing eligibility rules and revising payment rate for service providers.
"We believe that an independent evaluation of Act 22 is in order to provide policy makers with the best information regarding the impact of cost containment measures," said Tony Ross, president of the United Way of Pennsylvania.
He said such an evaluation could be carried out by the state auditor general, state Independent Fiscal Office or the Legislative Budget and Finance Committee.
The Corbett administration and Republican lawmakers pushed the law to crack down on what they described as "waste, fraud and abuse" in welfare programs. With
the grant of special authority, Mr. Alexander was able to implement changes to programs without seeking approval from the Legislature and the Independent Regulatory Review Commission, which includes appointees from the legislative and executive branches.
Mr. Ross said the law has meant cuts for vital services.
He said Home and Community Based Services to provide long-term care to senior citizens at home though Area Agencies on Aging so they can stay out of more expensive nursing homes is a case in point.
Act 22 led to a cut in the amount paid service providers from $900 per successful enrollee to $65, said Mr. Ross.
The result is that a number of agencies plan to drop the program, he said.
DPW changed from providing one lump sum payment to a per-service payment in order to comply with federal regulations to provide more accountability in the program, said agency spokeswoman Donna Morgan. She said the program has benefited from long-term spending growth.
The $400 million in cost savings includes actions taken outside the purview of Act 22, she added.
State Auditor General-elect Eugene DePasquale of York said a review of Act 22 is on his radar screen. Mr. DePasquale is now setting office priorities for after his term starts Jan. 15.
He pointed out that any Act 22 review will be a time-consuming and complicated process. Mr. DePasquale voted against Act 22 as a Democratic House lawmaker.
"I do think it needs an independent set of eyes," added Mr. DePasquale.
"Having seen some of the Department decisions to go after quality programs backfire and hurt working Pennsylvanians, I fully support an evaluation of the changes made in Act 22 to see if they are truly working to cut waste and fraud or simply a means to cut worthwhile programs," said Sen. John Yudichak, D-14, Nanticoke, a member of the Senate Appropriations Committee.
Mr. Yudichak voted for Act 22, but he questioned Mr. Alexander about the impact of cuts at last year's state budget hearings.
"Cost containment through Act 22 is part of a larger effort to make sure welfare programs remain sustainable," said Ms. Morgan.
Contact the writer: rswift@timesshamrock.com