SOCIAL WORK Riley contines to help struggling families

New welfare director pledges to keep family impact in mind in tough budget.
COLUMBUS (AP) -- As she moves to a corner office in a downtown skyscraper to oversee a $16 billion organization, Barbara Riley keeps in mind her work 35 years ago in St. Louis with the same type of jobless and low-income families helped by the Ohio Department of Job and Family Services.
"If you are on the streets of any large city where poverty was and is a way of life, you gain an understanding for what the impact is of policy decisions," said the former social worker, who takes over the department Dec. 18. "Something actually happens in the life of a human being as a result of that."
She replaces Tom Hayes, who was brought in to right the ailing department in 2001 and takes over the Ohio Lottery Commission on Jan. 1 in his hometown of Cleveland. During his tenure, the department brought its child support system in compliance with 8-year-old federal regulations, fixed an Internet job-matching system and replaced or started replacing six of the seven major computer systems that run programs such as Medicaid and unemployment.
Riley, 57, has led nonprofit agencies and worked 10 years for Ohio's legislative budget office before joining Job and Family Services in 2000. She's been assistant director since February.
The combination of client work and budget-making experience richly prepares her for the top job, said Jerry Friedman, executive director of the American Public Human Services Association for welfare agency directors in all 50 states and some cities.
"It's a stunning appointment," he said. "I'm a big fan of Barbara."
Potential cuts
But Riley reaches the pinnacle of her career while the economy is in the pits. She must immediately delve into a two-year budget request for the largest single spender of state money, and the largest target for lawmakers seeking potential cuts.
"The hurdles are horrendous. They're almost indescribable," Riley said. "We are clearly facing cuts in anything dependent on state general funds."
A temporary sales tax increase that raised $2.5 billion over two years is set to expire and the department can't count again on a one-time $385 million in federal aid that saved the last two-year budget.
Also, state expenses for administration of Medicaid and food stamps are automatically higher because they're being accurately counted for the first time. In an accounting mess discovered in the final months of Hayes' tenure, federal welfare funds had incorrectly covered county expenses for determining eligibility and setting up accounts, hiding their true costs. Also, the state has to repay the federal government, with the tab so far at $273 million and the rest still being calculated.
Meanwhile, medical care is more expensive and more people need help. The state can reduce Medicaid expenses through freezing rates paid to hospitals and doctors, tighter eligibility or eliminating some optional services such as dental and vision care, all of which Riley said would be examined.
Every state is wrestling with Medicaid, now the largest provider of health care in the United States, Friedman said.
Still, county agencies feel more secure with someone they know and trust fighting for the budget, said leaders of Ohio Job and Family Service Directors' Association.
"She's absolutely the right person to be representing the department in discussions with the General Assembly," said Bruce Jewett, the group's outgoing president and head of the Butler County agency.
"She listens, she doesn't just try to fix a problem from a management standpoint," said Loretta Adams, the executive director.
Riley said she will consider the consequences of any cuts to counties, but "that does not mean I won't do things they don't like."
The department's 4,285 full- and part-time employees coordinates multiple programs with three federal and at least nine other state agencies. Riley's salary has not yet been set; it was $106,000 as assistant, and Hayes made $125,000. She lives in Columbus.
She said she wants more focus on the "job" part of the agency's title, reminding employers and job seekers that the department can benefit more than just the neediest Ohioans.
"We have something very concrete to deliver to the economy," she said.