Department of
Economic Security

Annual Report
SFY 2002 - 2003

Janet Napolitano, Governor
David A. Berns, Director

MISSION
The Arizona Department of Economic Security is dedicated to promoting the
well-being and self-sufficiency of individuals and families through the delivery
of quality integrated services.

VISION
Our vision is a Department that is valued for its leadership and excellence in
the delivery of quality human services in Arizona. We value employees and
strive to create organizational pride. We recognize that children are our
greatest natural resource, individuals and their families are the foundation of a
strong society, and that each must be afforded safe, secure and nurturing
environments. The Department’s service delivery is responsive and sensitive
to individuals, cultural and community differences, and balances prevention
and crisis assistance.

GUIDING PRINCIPLES
•

We Lead by Example

•

We Value Teamwork and Stakeholder Partnerships

•

Customer Service is Vital to Our Success

•

Employees are Valued

•

Continuous Improvement is the Cornerstone of Our Agency

•

We Manage by Facts

•

Diversity is a Strength

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TABLE OF CONTENTS
Page
Number
HISTORICAL PERSPECTIVE AND OVERVIEW............................................................................ 1
ORGANIZATION AND SERVICES PROVIDED ............................................................................. 1
Organizational Chart ........................................................................................................................ 5
ECONOMIC CONDITIONS AND OUTLOOK.................................................................................. 7
INITIATIVES .................................................................................................................................... 9
Major Initiatives ................................................................................................................................ 9
Automation Initiatives ..................................................................................................................... 15
AWARDS ....................................................................................................................................... 19
KEY PERFORMANCE RESULTS................................................................................................. 21
Family Assistance Administration Client Satisfaction with Quality of Services.............................. 23
Percentage of Employment Placements for TANF Participants .................................................... 25
Average Length of Cash Assistance Spell (TANF) ....................................................................... 27
Child Protective Services Response Rate ..................................................................................... 29
Child Support Amount Collected.................................................................................................... 31
STATISTICS .................................................................................................................................. 33
Comparison Between Arizona and United States Population........................................................ 35
Comparison Between Arizona and United States Per Capita Income........................................... 37
Expenditures by Function and Funding Source ............................................................................. 39
Revenues by Funding Source........................................................................................................ 41
Comparison Between Arizona and United States Unemployment ................................................ 43
Unemployment Insurance Financial Transaction Summary .......................................................... 45
Food Stamp Benefits Participants.................................................................................................. 47
General Assistance ........................................................................................................................ 49
Temporary Assistance for Needy Families .................................................................................... 51
Jobs Program – Comparison of Participants and Participants
Employed to the Percentage Retained ....................................................................................... 53
Child Support Enforcement Collections ......................................................................................... 55
APPENDIX A ................................................................................................................................. 57
Children and Family Services Training Program Fund Status Report........................................... 58

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Historical Perspective and Overview
The Department was established by the State Legislature in July 1972 by combining
the Employment Security Commission, the State Department of Public Welfare, the
Division of Vocational Rehabilitation, the State Office of Economic Opportunity, the
Apprenticeship Council, and the State Office of Manpower Planning. The State
Department of Mental Retardation joined the Department in 1974.
Children, families, the elderly, and disabled may access an array of programs and
services through a single state agency.
Approximately 82 percent of the
Department’s funds are for services and benefits, and approximately 34 percent are
for service contracts with a comprehensive provider network.
Organization and Services Provided in State Fiscal Year 2003
The Department is organized into divisions that provide protective, social, and
community services; employment and economic assistance; and operations support,
as follows:
Programs:
•

The Division of Children, Youth and Families (DCYF) provides child protective
services, foster care services, kinship care, independent living services for young
adults, adoption services, in-home family services, intensive family services, and
substance abuse treatment services for families whose children are at imminent
risk of out-of-home placement. 1

•

The Division of Child Support Enforcement (DCSE) administers Arizona’s child
support enforcement program. The Division provides services which include
locating absent parents, establishing legal paternity for children born out-ofwedlock, and establishing legal obligations to pay child support. The Division
enforces and collects child support through a variety of administrative and judicial
remedies, and is responsible for the State Disbursement Unit that processes and
distributes child support payments.

•

The Division of Benefits and Medical Eligibility (DBME) administers the Temporary
Assistance for Needy Families (TANF) Cash Assistance, Food Stamps, and statefunded General Assistance programs. In addition, the Division determines
eligibility for the State’s medical assistance program (AHCCCS), as well as
supplemental security income through its Disability Determination Services
Administration.

•

The Division of Employment and Rehabilitation Services (DERS) administers
Arizona’s Unemployment Insurance, Job Service, and Vocational Rehabilitation
programs. In addition, the Division provides job training opportunities through
administration of the Workforce Investment Act (WIA) and the Jobs Program. The

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As of December 2003, this Division has been elevated to report directly to the DES Director.

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Division also administers a comprehensive set of child care programs and
Independent Living Rehabilitation services.
•

The Division of Developmental Disabilities (DDD) provides services to individuals
with developmental disabilities through a 100 percent state-funded program and
the Arizona Long Term Care System (ALTCS), which is funded by the Centers for
Medicare and Medicaid Services (formerly the Health Care Financing
Administration) through the Arizona Health Care Cost Containment System
(AHCCCS). Both programs provide home and community-based services,
residential and day programs, children’s services, and services to children in
foster care. In addition, the ALTCS program provides acute medical care to
eligible individuals.

•

The Division of Aging and Community Services (DACS) provides and contracts for
services, such as emergency and energy-related assistance, food distribution
information for the hungry, rural food banks, shelter and supportive services to
victims of domestic violence, refugee resettlement services, and shelter for the
homeless. Adult services programs include adult protective services, the
supplemental payments program, home care, congregate and home-delivered
meals, case management, long-term care ombudsman program, State Health
Insurance Assistance Program, legal assistance, Senior Community Service
Employment Program (Title V), the Foster Grandparent Program, and the Family
Caregiver Support Program.

•

In addition to the divisions and programs listed above, the Arizona Early
Intervention Program (AzEIP) is also located in the Department. AzEIP was
established by Executive Order 89-11, and A.R.S. 8-652, which designated the
Department as the Lead Agency responsible for the administration and
supervision of the comprehensive interagency system of early intervention
services. AzEIP is governed by the Individuals with Disabilities Education Act
(IDEA), Part C (P. L. 105-97).

Operations:
•

The Division of Employee Services and Support (DESS) provides support
services to all employees and programs, including appellate services, audit and
management services, special investigations, licensing, safety and security,
economic research, organization and management development, and volunteer
services.

•

The Division of Business and Finance (DBF) provides office and general business
services to the Department, such as accounting, finance, budget, collections,
procurement, facilities management, purchasing, payroll, printing, records
retention, supplies distribution, surplus management, forms management, and
mail management. The Division is also responsible for the implementation of the
federally mandated Health Insurance Portability and Accountability Act (HIPAA).
DBF also provides the following services to the Department: development and
coordination of Department policy, planning and project management; best
practices and innovative approaches in human services; strategic planning and

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evaluation; analyzing and developing new policies and rules; and coordinating
cross-divisional projects.
•

The Division of Technology Services (DTS) provides the information technology
solutions to meet the needs of the Department. DTS provides technical and
systems services for the development, maintenance, and enhancement of
automated business systems. DTS works to design integrated systems that are in
compliance with the Government Information Technology Agency (GITA) and
agency standards.

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Arizona Department of Economic Security
As of June 30, 2003
Office of the
Attorney General

Governor
Economic Security Advisory Council

Governor’s Advisory Councils

Office of Equal Opportunity
Office of Communications
Office of Ombudsman
Legislative Services

Director

Governor’s Council on Aging
Governor’s Council on Developmental Disabilities

Deputy Director Of
Programs

Arizona Early
Intervention Program

Division of
Children
Youth and
Families

Child
Protection
Services
Comprehensive
Medical
and
Dental
Program
Finance &
Business
Operations

Division of
Child Support
Enforcement

Systems and
Automation
Finance
Policy &
Resources
Legal
Services
Service
Quality
Management

Division of
Benefits
and Medical
Eligibility

Disability
Determination
Family
Assistance
Program
Evaluation

Division of

Division of

Employment

Developmental

and
Rehabilitation
Services

Disabilities

Child Care
Employment
Security
Jobs Program
Workforce
Investment
Act
Rehabilitation
Services

DDD
LTC
Acute Care

Deputy Director of
Operations and
Special Projects

Division of
Aging and
Community
Services

Aging & Adult
Community
Services
Intergovernmental
Operations

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Division of
Employee
Services
and
Support
Appellate Services
Audit &
Management
Services
Internet Safety and
Security
Licensing,
Certification &
Regulations
Organization and
Management
Development
Research
Special
Investigations
Volunteer Services

Personnel

Division
of
Business

and
Finance
Accounting
Business
Systems
Financial
Services
Operations
Support
Facilities
Management
Accounts
Receivables &
Collections
Procurement
Policy,
Planning &
Project
Control
Best Practices

Department of
Administration

Division of
Technology
Services

Systems &
Programming
Data Center
Technical
Support
Customer
Service
Solution
Center
Resource
Planning
Services

Special
Projects

Child Support
Data
Reliability
HIPAA
Efficiency
Review

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Economic Conditions and Outlook
The following economic information has been obtained from the Department’s Research
Administration’s “Annual Update Forecast 2003” press release dated August 2003.
Arizona’s economy has continued to add jobs in calendar year 2003. In fact, throughout
most of the year Arizona was ranked in the top ten fastest job-growing states in the
nation. More than 82,000 jobs will be added to the Arizona economy during calendar
years 2003 and 2004. Although jobs grew at a slower than expected rate during the
second quarter, momentum picked up during the remainder of 2003 and is expected to
continue into 2004. Most of this stems from improving consumer optimism and business
confidence and the expected gradual recovery extending through other geographic
regions.
Arizona’s goods-producing industries are expected to grow by 800 jobs over calendar
years 2003 and 2004. This group of industries shows a surprising endurance in job
creation in the case of construction, while manufacturing shows a loss of industry share
in its return to 1993-94 levels.
These two most cyclical industries have shown sharply different experiences since 2001.
Construction is an industry serving mostly “home-grown” demand. Population growth in
Arizona, among the fastest in the Mountain states region, helps to supply the demand for
job growth, while the continued low interest rates add to the affordability and attraction of
housing and other related products. Manufacturing, on the other hand, is an industry
largely serving demand external to our state. With demand levels sharply curtailed in
recent years from other regions, manufacturing firms have struggled to adjust by
shedding plant, equipment, and jobs, a process generally referred to as consolidation.
Increasingly, however, manufacturing and mining firms have also opted to close,
relocate, or prioritize their expansion efforts abroad.
During the calendar years 2003 and 2004, construction is forecast to add more than
11,000 jobs. Continued strong demand for housing has developers building new homes,
homeowners expanding and remodeling, and cities and counties grappling with a great
deal of infrastructure development such as improvements of roads and highways.
Additionally, continued attraction to rural regions from retirees and locals is forecast to
incite economic planning and development groups to work hard in an effort to stay
ahead of demand pressures.
Meanwhile, projected gains for construction are largely offset by the anticipated losses of
nearly 10,000 jobs in manufacturing and a decrease of roughly 700 jobs in mining.
Computer and electronic manufacturing firms experienced the largest blow in the most
recent downturn, and these related sectors are projected to show a prolonged struggle
toward recovery.
Service-providing industries are forecast to add more than 81,000 jobs during 2003-04.
This group of varied and diverse providers has been growing faster than the goodsproducing industries, due to large sectors of the economy catering to Arizona’s fast
growing population and industries serving tourists.
Health and education sectors are projected to show growth of more than 26,000 jobs.
Annual growth rates are expected to average roughly 5.5 percent during 2003-04.

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Notably, increases in health services jobs are forecast to outpace most all others during
the next few years.
Professional and business services sectors are forecast to show increasing demand for
labor over the next two years, growing by 1.7 percent in 2003 to more than 4 percent in
2004. This industry is forecast to add 18,600 jobs, accounting for more than 22 percent
of the increase on jobs during the 2003-04 period. Projected to be one of the fastest
growing sectors of this super sector, the employment services sector is already leading
this group as it serves the growth in many other industries.
The combined trade, transportation, warehousing, and public utilities group is forecast to
add almost 15,000 jobs during 2003-04. This represents nearly 18 percent of all jobs
added during this two-year period. Trade is projected to be the fastest growing of this
group, but loses in wholesale trade are expected to drag down improving retail sectors
benefiting from rising and sustained levels of consumer optimism. Wholesale trade
showed losses in 2003 but is expected to contribute to growth in 2004.
The information services sector is forecast to experience a difficult period toward
recovery. Publishing and other information services are forecast to pare more than
3,000 jobs during 2003-04. This industry has been one of the hardest hit in the serviceproducing industries following the post 2000 economic downturn.
Arizona’s leisure and hospitality industry is forecast to add 7,600 jobs during 2003 and
2004, averaging roughly 1.5 percent over the two-year period. More than 9 percent of
the total increase of jobs will come from this mostly tourism and entertainment group of
sectors.
Financial services forecasts showed a slight loss of jobs in 2003 with modest gains
forecast for 2004. Real estate is projected to be the source of continued growth,
whereas the securities and commodities related sectors, along with the insurance
sectors are forecast to experience some slight consolidations to cut costs and match
lower demand.
Other services, a mix of service providing industries not elsewhere categorized, is
forecast to add nearly 5,000 jobs. Growth rates of 2.3 percent and 3.3 percent are
forecast for 2003 and 2004, respectively.
Providing services to Arizona’s growing population, government is forecast to add almost
11,000 jobs during the two-year period. Annual growth rates are expected to be modest
and average less than 1.5 percent during the two-year period. Local education is
projected to generate most of the jobs in government. Growth in federal government
jobs stems from the demand for greater security and other services across the state.
Fiscal pressures are expected to restrain job growth in state and local government to
levels sharply lower than historical trend.

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Major Initiatives
During State Fiscal Year (SFY) 2003, the Department continued, initiated, and planned a
number of projects aimed at streamlining processes and improving customer service.
The most significant projects are outlined below.
• Governor’s Initiative to Reform Child Protective Services (CPS)
The Division of Children, Youth, and Families fully participated along with community
and other State partners in Governor Napolitano’s initiative to reform Child Protective
Services. This participation resulted in 42 recommendations for the reform of Arizona’s
Child Protection System. In SFY 2004, the Division of Children, Youth, and Families is
actively engaged in the planning and implementation of the Governor’s action items.
•

Efficiency Review Project

Governor Napolitano announced in January of 2003 the establishment of a Statewide
Efficiency Review (ER) project with a mission of finding practical and sensible solutions
to improve customer service, reduce costs, and eliminate duplication. Consistent with
the purposes of the Governor’s ER project, the Department, during SFY 2003, pursued
internal efficiencies, investments that draw down additional federal funding, and
improved outcomes for customers that keep them out of more expensive systems of
care.
In February of 2003, DES solicited cost-saving ideas from all employees. Employees
submitted over 1,000 suggestions. These ideas were grouped into the categories of:
Procurement, Telecommunications, Technology, Staffing, Printing, Revenue, Increased
Inter-Divisional Cooperation, and Training.
Through the active participation of a DES Efficiency Review Team, the Department
identified more than 30 different efficiency ideas for immediate implementation to realize
cost avoidance in SFY 2003 and on into SFY 2004. These ideas ranged from energy
conservation measures to procurement issues such as substituting generic for brand
name office supplies and renegotiating contracts for office equipment and supplies.
Through the implementation of ER measures, the Department was able to redirect $4.2
million dollars during SFY 2003 while maintaining critical services and operations.
•

Healthy Families Arizona Program

Healthy Families Arizona (HFAz), the nationally credentialed home visiting program
administered by the Division of Children, Youth, and Families, is in its twelfth year of
operation. The goals of the program are to enhance parent and child interaction,
promote child health and development, and prevent child abuse and neglect. The
program has an intensive independent annual evaluation that is exemplary in its many
positive outcomes over the years. The most recent evaluation in 2003 finds that 97
percent of children in the program are linked to a medical doctor, and the immunization
rate for infants in the program is 89 percent (compared to 71 percent in the state).
Parents with the highest stress score improved the most, and 99 percent of program
participants did not have a substantiated CPS report during FFY 2002.

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HFAz has been recognized in four national initiatives. The Children’s Bureau’s Office on
Child Abuse and Neglect selected HFAz as a Program with Noteworthy Aspects in the
Effective Programs Category. Harvard University’s website included HFAz as an
example of a program that helps achieve school readiness; the National Center for
Children in Poverty, Mailman School of Public Health, Columbia University selected
HFAz as one of 25 programs with noteworthy aspects; and the Child Welfare League of
America highlighted the program in a past publication as an emerging practice that is an
evidence-based family-strengthening program.
•

Health Insurance Portability and Accountability Act of 1996

In 1996, Congress passed the Health Insurance Portability and Accountability Act of
1996 (HIPAA). HIPAA mandates significant changes in the legal and regulatory
environment to guarantee the security and privacy of health-related information and to
standardize the format of electronic transmissions of health-related data.
The
Department is working collaboratively with other State agencies to accomplish the
mandated changes.
The Department has placed HIPAA and its three current sub-parts, Standardization of
Transactions and Code Sets (TCS), Privacy, and Security, under Project Control. A
HIPAA Chief Privacy Officer position was established. A Security work group has been
implemented. There are four programs within three Divisions that must be compliant
with HIPAA Transactions and Code Sets. Three of these programs are included in the
QMACS automated system, HIPAA’s TCS solution. It is anticipated that QMACS will be
HIPAA TCS compliant by April 2004. The fourth program, DDD Long Term Care, is not
included in the QMACS solution; plans for Long Term Care HIPAA TCS compliance are
now being finalized. The Department is working closely with the Arizona Health Care
Cost Containment System (AHCCCS) on TCS implementation.
HIPAA had an enormous impact on the Department’s resources in SFY 2003. The
Department and other covered state agencies have been tasked with keeping sensitive
medical data private and secure. It is a major challenge to implement the complex
requirements of HIPPA and to comply with the mandates within the relatively short
timeframes.
•

Arizona Families F.I.R.S.T.

Arizona Families F.I.R.S.T. (Families in Recovery Succeeding Together) is an
innovative, community-based approach in the provision of substance abuse treatment
that is built on research, best practices, and community involvement. The program
provides the opportunity for families referred to CPS or participants in the Jobs Program
to overcome the barrier of substance abuse in order to reach the outcomes of
permanency for children, family re-unification, and self sufficiency.
The framework of the Arizona Families F.I.R.S.T. program was designed to do business
through collaboration and innovation while weaving the goals of child welfare, TANF,
and family-centered practice into the delivery of substance abuse treatment. The
program provides a continuum of substance abuse and recovery services and
emphasizes outreach, engagement, aftercare, and support services in addition to
traditional substance abuse treatment. Programmatic accomplishments include:

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Over 5,000 individuals have received an opportunity to be screened and assessed
for substance abuse treatment.
Engagement and retention rates are above the benchmarks of similar programs.
More than 50 percent of clients referred are engaged in treatment services.
Arizona Families F.I.R.S.T. program has demonstrated a retention rate of 49 percent
for clients receiving treatment services for at least six months.
Arizona Families F.I.R.S.T. is maximizing the use of federal dollars for substance
abuse treatment as 66 percent of program participants are eligible and served with
Title XIX funds.
According to the evaluation team of James Bell Associates, there has been a
perceivable increase in the availability and timeliness of substance abuse treatment
services.
A quality improvement process across state agencies is contributing to systemic
changes in the way substance abuse treatment is delivered.
Arizona Families F.I.R.S.T. has contributed to increased collaboration among
community agencies.
•

National Family Caregiver Support Program

The Older Americans Act Amendments of 2000 established a National Family Caregiver
Support Program. Arizona received an allocation of $2.3 million to implement the
Arizona Family Caregiver Support Program. The program calls for all states, working in
partnership with area agencies on aging and local community-service providers, to have
five basic services for family caregivers, including the following:
Information to caregivers about available services.
Assistance to caregivers in gaining access to supportive services.
Individual counseling, organization of support groups, and caregiver training to assist
caregivers in making decisions and solving problems relating to their caregiving
roles.
Respite care to enable caregivers to be temporarily relieved from their caregiving
responsibilities.
Supplemental services, on a limited basis, to complement the care provided by
caregivers.
Services are to be provided to (1) family caregivers of older adults and (2) grandparents
and other relative caregivers of children not more than 18 years of age. The statute
requires states to give priority consideration to (1) persons in greatest social and
economic need (with particular attention to low-income, minority individuals) and (2)
older individuals providing care and support to persons with mental retardation and
related developmental disabilities.
In SFY 2003, the Family Caregiver Support program provided assistance to 42,007
caregivers, of which 3,777 were grandparents or relative caregivers over age 60 for
children not more than 18 years of age. As part of the activities of the Family Caregiver
Support Program, the Division of Aging and Community Services in collaboration with
the Arc of Arizona, hosted a workshop in Phoenix in May 2003, designed to explore how
local groups from aging and disabilities services can work together to better service
aging adults with mental retardation and related disabilities, and their caregivers. In
attendance were 95 family caregivers and social service professionals from all over
Arizona representing both the aging and developmental disability communities. The
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National Family Caregiver Support Program, through a special grant from the United
States Administration on Aging, provided keynote speakers from the University of Albany
(NY).
•

Alzheimer’s Demonstration Project

The Alzheimer’s Demonstration Project, called the Alzheimer’s CARE Program, helps
families to care for family members with Alzheimer’s disease. The Camino de Amistad,
or “Walk of Friendship” component ensures culturally appropriate services are provided
to Spanish speaking families. Families receiving services through the project are offered
the flexibility of receiving in-home personal care or respite care by either traditional
provider agencies or by selecting family members or friends to perform those services.
Adult Day Care, group respite, and transportation services are also provided through
grant funds. Training for family and professional caregivers, and case management
services, are provided by the Alzheimer’s Association.
Supervision of direct services is provided by grant funds through the Area Agency on
Aging, Region One, Inc. Arizona’s Alzheimer’s Demonstration Project is the result of a
grant awarded by the Federal Administration on Aging to the Aging and Adult
Administration in June of 2000. The program has been funded for a third year allowing
the Aging and Adult Administration to provide additional services to caregivers caring for
people with Alzheimer’s disease through State Fiscal Year 2004.
In 2003, the Alzheimer’s Demonstration Project provided direct services to 96 families in
Maricopa County and rural northern Arizona. The project also developed an Alzheimer’s
Disease Training Curriculum that includes a special section on cultural diversity. Over
100 copies of a dementia-specific staging and resource guide were distributed to
organizations and agencies statewide. The project has conducted 44 training sessions
on caring for persons with dementia for 474 community and family members and 679
professional health care workers. The project also provided in-home personal care or
respite care training to 36 family members or friends. Recreational technician training
was provided to five family members at Adult Day Care centers.
•

Community Action Network Funding

The Division of Aging and Community Services implemented Funding Formulas based
upon the recommendations of a 14-member stakeholder committee, to distribute over
$21 million in funds more equitably to the Community Action Network. The Community
Action Network will use the funds to provide emergency and energy-related services
across America.
•

Need for Services Assessment (NFSA) Pilot

The Division of Aging and Community Services successfully completed the NFSA pilot
project with four domestic violence shelters in partnership with Sojourner Center. NFSA
is an empowerment-based, client assessment, and goal setting process that was
developed by Sojourner Center and Arizona State University to improve the
effectiveness of their case management with victims of domestic violence. The Division
is planning to train eight more shelters in the first half of SFY 2004 through a contract
with Sojourner Center.

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•

Fatherhood Program

On October 4, 2002, the U.S. Department of Health and Human Services awarded the
Division of Child Support Enforcement a federal grant to increase child support
collections from low-income parents. The goal of the Fatherhood Program is to assist
low-income non-custodial parents in becoming financially and emotionally responsible
parents through collaboration of the child support agency with local fatherhood
programs, the workforce development system, and faith-based organizations. Principle
objectives of the program include helping fathers through the development of a
customized curriculum, “Fatherhood Academy”.
The curriculum focuses on job
readiness, money management, life skills training, relationship building, and the role of
marriage. The Fatherhood Academy is designed to help fathers through a collaboration
of the child support agency, local fatherhood programs, the workforce development
system and faith-based organizations. The program also works on producing realistic
child support orders for non-custodial parents with limited incomes and encourages the
prompt payment of support.
•

Ticket to Work Program

The goal of the Ticket to Work Program is to increase the choices of Social Security
beneficiaries with disabilities for obtaining employment, vocational rehabilitation, or other
support services from public and private providers. The program issues Social Security
beneficiaries with disabilities a ticket they can use with either an Employment Network or
the State’s Vocational Rehabilitation Program to obtain the services needed to become
successfully employed. In Arizona, 152,088 tickets and packets were mailed to eligible
beneficiaries during 2002-2003. This year, the Social Security Administration’s growth is
projected to have 3,000 to 5,000 new beneficiaries. The Division of Employment and
Rehabilitation Services has continued to build strong relationships with the existing 25
Employment Networks within Arizona and continues to have memoranda of
understandings with 15 Employment Networks. In SFY 2003, the Division established
an Employment Network association involving all in-state Employment Networks that
allows members to share information, discuss current activity, and to provide
collaboration on technical and future training for the Ticket to Work Program. In addition,
the Division invited all Employment Networks to receive annual training regarding Social
Security benefits.
•

Faith-Based Initiative

The Division of Employment and Rehabilitation Services joined in a statewide initiative to
expand the role of grass roots, faith-based and community-based organizations. The
Department targets residents who might not seek such assistance in the Department’s
field offices or One-Stop Career Centers. The faith and community-based organizations
are a resource the Department uses to meet the needs of a community. The project
intends to address barriers such as the lack of knowledge, undeveloped associations,
and proximity. Through federal funding, the Division purchased and installed 74
personal computers and 26 printers. The Division installed, configured, and deployed
the equipment throughout the state to organizations selected by the Arizona Department
of Commerce. This initiative bridged the gap between our community’s workforce
development needs and the available resources.

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•

DES Diversity Implementation Team

The Department established a Diversity Implementation Team consisting of at least one
representative from each division. The team developed an Intranet web-site for the
Division of Employment Services and Support that later was transferred to the
Department’s web-site. The team began planning for diversity recruitment, training, and
procurement. In addition, the team designed a training curriculum and developed a
diversity program targeting various competency levels. The web-site educates and
informs employees and our customers about the Department’s commitment to diversity.
The training curriculum that was piloted allows the Department to receive feedback from
employees regarding the need for agency-wide diversity training that will help the
Department reach beyond our differences, both internally and externally.
The
Department enhanced and increased its recruitment of bi-lingual staff to address the
special needs of our customers.
•

Case Management Screening Guide

In April 2003, the Division of Employment and Rehabilitation Services implemented the
Case Management Screening Guide as a more comprehensive way to review the needs
of Temporary Assistance for Needy Families (TANF) recipients who participate in the
TANF work program. This tool is used to obtain participant information regarding work
experience, family issues and needs, educational achievement, and barriers to
employment. The screening guide helps the participant and the case manager to
understand the family’s needs and identify activities and services that will help achieve
the ultimate goal of financial independence for these TANF families.
•

Qualified Vendor System and Published Rates

In the fall of 2002, the Division of Developmental Disabilities began the planning and
development of a new process to streamline the purchasing of support services for
persons with developmental disabilities and their families. This new process, the
Qualified Vendor System, enhances the control that persons with developmental
disabilities and their families have over the selection of service providers. The Qualified
Vendor System provides an open and continuous process of provider recruitment that
greatly simplifies the way the Division contracts with providers to deliver support
services.
In conjunction with the redesign of the procurement system and the method of vendor
selection, the Division also established published rates for most of its services. An
independent consultant analyzed the local and national labor markets and comparable
service sectors to set benchmark rates for each service. The initial call for Qualified
Vendors was made in the Spring of 2002, and on June 30, 2003, the Division had over
350 new Qualified Vendors ready to begin delivering services on July 1, 2003.
A Design Team comprised of persons with developmental disabilities, family members,
advocates, provider vendor staff, and state staff set the conceptual framework for these
changes. Legislation that passed in 2002 requires the establishment of a published rate
system for services.

14

•

Qualified Vendor Application and Directory System

In conjunction with the Qualified Vendor System, the Division of Developmental
Disabilities is developing the Qualified Vendor Application and Directory System. This
highly automated and easily accessible web application is being developed to meet the
provisions of the same legislation that mandated the Qualified Vendor System.
Currently, this system supports the Vendor application process. Future phases of the
system will create an information portal for potential vendors and a notification system
for unmet client needs. Additionally, the system will allow for compilation of vendor
information into a Qualified Vendor Directory. This Directory will facilitate consumer and
family choice of providers.
•

Establishment Grants

The Division of Employment and Rehabilitation Services plans to award up to $4 million
in grants to public or non-profit Community Rehabilitation Program providers to
establish, develop, or improve capacity to provide vocational rehabilitation services that
promote competitive integrated employment opportunities for individuals with disabilities.
The Division will solicit applications in nine program areas including: coordination of
transportation services, behavioral health, training programs for public agencies such as
fire or police departments, comprehensive adjustment services for the blind, employer
linkages, One-Stop Workforce Development initiatives, development of a system of
supports for juveniles to maintain employment, and delivery of service enhancements for
TANF recipients.
•

Navigator Grant

Arizona is one of 14 states that received a U.S. Department of Labor (DOL) Disability
Program Navigator (DPN) grant. The DOL grant funds seven positions for Arizona.
These positions will be located at various One Stop Career centers throughout the State.
The grants target the thirteen original Ticket to Work states and California. The
Navigators will assist individuals with disabilities to access the wide variety of programs
available to support their successful entry or re-entry to the workforce.
Automation Initiatives
The Division of Technology Services continues to enhance the Department’s automation
capabilities. Automation can have a positive impact on the way the Department provides
services to the public and can enhance the productivity of Department staff. The
Department has completed or has underway several major automation initiatives,
including the following:
•

Child Support Enforcement System Certification

The U.S. Department of Health and Human Services, Administration for Children and
Families, Office of Child Support Enforcement, granted full system certification to
Arizona’s automated child support system. All states were required to satisfy provisions
of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA) related to
child support enforcement program automation. On May 1, 2003, Arizona became the

15

twenty-first state to achieve full certification. In order to receive this, the Department had
to implement the complete functionality specified in the PRWORA Certification Guide,
and the Administration for Children and Families had to review and approve the results.
•

DES Intranet

The DES Intranet provides employees with a new tool for communication and
information sharing. The Intranet will provide general information to employees about
each division, program, and unit. A number of DES Intranet sites are currently being
developed. Each site will represent various organizations in the Department and provide
information to employees on what they do, how they do it, and the benefit their
organization brings to the agency and the employee.
These sites will have information on policy, breaking news, events, and milestones.
Depending on the site, many of the internal agency procedures that are now
accomplished through paperwork will become automated and be made available to
employees in a real time environment. The sites will allow the Department to move
more rapidly toward a paperless office environment that will save both money and the
environment.
Though in its infancy, the DES Intranet provides the agency with many ways to gather
information from employees through surveys and polls. It is easily used as a means to
make announcements to all staff and reduce the burden on our email system.
Department-wide information that has been difficult to obtain will now become more
easily and universally available through the use of the DES Intranet. As the DES
Intranet matures, employees will find that they may be able to submit time sheets, fill out
travel vouchers, enter fleet service information, and perform a number of other functions
that now require paper and excessive turnaround time for approvals.
•

Arizona Workforce Informer

In collaboration with 22 other states through the U.S. Department of Labor, the
Department has developed a new web-site that puts customized labor market
information at the fingertips of policymakers, business leaders, economic developers,
students, job seekers, and others. The system allows any individual, from corporate
CEO to college student, to obtain information needed for career and work-related
decisions.
The Department is the main source of labor market information and has maintained a
web-site of national and statewide data on an ongoing basis. The new web-site contains
web-enabled and customer friendly tools, which help the customer make better use of
the information available. The new web-site also provides information in a standardized
format known as America’s Labor Market Information System (ALMIS) that allows
customers to compare the same information from one state to another. The web-site is
designed to allow integration with other programs within the Department and elsewhere.
•

Health-E-Arizona

A partnership between AHCCCS, the Department, and the Community Health Center
Collaborative Ventures, Inc., is piloting a new web-based enrollment application called
“Health-E-Arizona” at Health Center locations, AHCCCS, and Department offices in
16

Pima County. Health-e-app is a paperless application process for public health
insurance. It was designed for use by application workers in community-based
organizations, clinics, and private businesses to help individuals and families apply for
public health insurance.
The application process is more efficient for both administrators and clients. Preliminary
eligibility and health plan/provider preference are integrated real-time during the
application process. Supporting documents are faxed and associated electronically with
the application data. It offers English and Spanish versions. Outreach workers or
applicants can toggle between any point in the application process.
In a similar pilot project performed in San Diego County, application errors were reduced
by nearly 40 percent. In addition, the time between application submission and eligibility
determination decreased by 21 percent. A survey of applicants showed that 90 percent
would rather apply using Health-e-app, and 95 percent liked the confirmation that the
application was received and the immediate preliminary decision.
•

Disaster Recovery Plan

The Division of Technology Services continued its efforts, within existing resource
limitations, to alleviate concerns regarding potential data loss by developing and
implementing various procedures in the Department's Data Center to improve data
security. During the year, the Division also developed plans and funding estimates
necessary to implement a full Data Center Disaster Recovery plan. The Department has
requested SFY 2005 funding to provide the ability to recover mission-critical application
systems and their data in a minimum amount of time, with time and the currency of the
recovered data being the most important factors. The request for funding proposes a
multi-year, multi-phased approach to disaster recovery implementation in order to
reduce yearly expenditures and work our way into the complexities of an instant
recovery environment.
•

E-Government (e-Gov)

E-Government (e-Gov) is a continuation of the Inter/Intra/Extranet initiative. It is meant
to eventually provide the ability to obtain government services through non-traditional
means, allowing access to government information, and the completion of government
transactions on an anywhere, anytime basis in conformance to equal access
requirements. E-Government is segmented into three transaction and information types:
E-Employee (Intranet), business-to-government (Extranet), and constituent-facing
services (Internet). Three committees, comprised of representatives from each division,
are providing recommendations for web infrastructure, standards, projects, and
resources. Currently there are standards for defining the “look and feel” of the three
environments, and guidelines and procedures in place to ensure consistency and
accuracy of content. The Department’s Internet web templates have been designed to
meet state standards and have been approved by the Government Information
Technology Agency (GITA). The security infrastructure that is required to provide safe
movement of data without compromising Department or client data has been
implemented and meets the GITA technical infrastructure standards.

17

•

Internet-Based Service

In 2003, the Division of Employment and Rehabilitation Services implemented an
Internet-based application that provides Unemployment Insurance (UI) claimants and
employers additional access points to UI services. Arizona employers are now able to
file their Quarterly UI Wage and Tax Reports via the Internet. In addition to the current
telephone call center system, UI applicants may now utilize the Internet to file their initial
claim for benefits or to file subsequent weekly claims. Most Internet claims are
processed with no worker intervention.
The Division is currently developing two additional Internet applications to provide
enhanced services to Arizona employers. An Electronic Fund Transfer (EFT) application
will allow employers to submit payment for their quarterly UI wage taxes on-line. Also, in
conjunction with the Arizona Department of Revenue (ADOR), the Division is developing
an Internet Joint Registration application which will allow new employers to meet the
statutory provision of registering with both the Department and ADOR on-line rather than
submitting a paper form.
•

Worker Profiling Reemployment Services (WPRS)

The purpose of the federally-mandated WPRS is to identify Unemployment Insurance
claimants likely to exhaust benefits and refer them to reemployment services early in
their claims experience. In 2003, the Division of Employment and Rehabilitation
Services implemented the Arizona Reemployment Services Network System (AIRSNet).
AIRSNET is an Intranet-based system that replaced the WPRS automation mainframe
application - Arizona Integrated Reemployment Services (AIRS). The AIRS system
used an outdated statistical model that did not provide any tracking mechanisms to
assist the field in retrieving outcomes for service referrals either inside or outside the
Department. AIRSNet has streamlined data entry and provides reports to assist both
Department staff and external service providers user-friendly tools for referrals and
retrieving outcomes. A new flexible statistical model can be adjusted as needed to
changing economic trends without system redesign. Service providers outside the
Department access AIRSNet via the use of secure identification logons.
•

Fingerprint Re-Certification – Paperless Process

The Division of Employee Services and Support successfully eliminated the paper
process of requesting fingerprint re-certification of over two thousand licensed foster
parents, and adult household members, by establishing an electronic request procedure.
The new automated procedure is more efficient, reliable, and cost effective. Both the
Department and contracted agencies have realized savings resulting from reduced
handling of paper request forms each month and postal cost associated with forwarding
the requests to the Office of Special Investigations (OSI). This also eases the process
for OSI by receiving one consolidated request each month with all licensees and adult
household members included on a single report.
•

The Human Resource Information System (HRIS) Project

The Department of Administration is replacing the existing payroll and personnel system
(HRMS) with a new system (HRIS). The implementation date is December 2003. The

18

Department will need to integrate to the new system by this date. This project will
require new system interfaces, changes in procedures, communication, and training.
New complex system interfaces will have to be designed, developed, and tested to
integrate data from the Department’s automated financial management system (FMCS)
to HRIS.
The Department has already implemented several steps including
establishment of several internal project teams to ensure the timely and efficient
implementation and integration of HRIS.
Awards
•

In June 2003, Arizona received enhanced funding as a result of reducing the Food
Stamp Program payment error rate for Fiscal Year 2002 below the national goal of
5.9 percent. This bonus funding for FY 2002 in the amount of $3,841,799 is for
additional administrative reimbursement for Arizona’s Food Stamp Program.

•

The Computer Honors program recognized the Division of Children, Youth and
Families’ Statewide Automated Child Welfare System (SACWIS) application –
CHILDS – as a 2003 Honor’s Laureate. CHILDS was nominated and accepted as an
entry in the "Government & Non-Profit" category. The CHILDS application is used by
Child Protective Services staff for documenting Intake Reports, Investigations, Case
Management activity, Eligibility Determinations, Provider and Financial data, and to
make payments to providers for services to children and families.

19

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20

Key Performance Results
2003
The Department of Economic Security reports monthly to the Arizona Department of
Administration on Key Performance Results (KPRs). The KPRs focus on critical issues
that are important to the agency. The KPRs are shared with the Governor’s Office to
demonstrate agency progress and success in providing quality services to Arizona
residents.

21

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22

Department of Economic Security
SFY 2003 Monthly Key Performance Results
By June 30, 2003, DES will have client satisfaction with the quality of services received from the Family Assistance Administration at 88.20%.

FAMILY ASSISTANCE ADMINISTRATION
Client Satisfaction with Quality of Services

94%
92%
90%
88%
86%
84%
82%
80%

SFY 2001 Actual
SFY 2002 Actual
SFY 2003 Target
SFY 2003 Actual
1st

2nd

3rd

4th

Quarterly

This is a point-in-time measure and represents the percentage of clients who rated services from 1 to 3 on a scale of 1 to 5, with 1 being
the highest rating and 5 being the lowest rating. Ratings are based on a sampling of all active TANF, Food Stamps and Medical customers.
Approximately 2500 individuals are sent a customer satisfaction survey each quarter.
2nd

3rd

4th

SFY 2001 Actual

88.40%

1st

89.50%

91.60%

92.00%

SFY 2002 Actual

90.60%

90.10%

89.90%

92.00%

SFY 2003 Target

88.20%

88.20%

88.20%

88.20%

SFY 2003 Actual

90.40%

89.90%

89.60%

90.20%

Client satisfaction data are collected on a quarterly basis only.

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24

Department of Economic Security
SFY 2003 Monthly Key Performance Results
By June 30, 2003, DES will achieve 49% employment placement for the TANF population.

Percentage of Employment Placements for TANF Participants
70%
60%
50%
40%
30%
20%

SFY 2003 Target

10%

SFY 2003 Actual

0%
1st

2nd

3rd

4th

This measure represents the cummulative number of employment placements for TANF participants as compared to the constant TANF population
as of July 31, 2002, of 25,348 (TANF population defined as adults 18 years and older, excluding tribal cases).
1st

2nd

3rd

4th

SFY 2003 Target

12%

24%

37%

49%

SFY 2003 Actual

14%

28%

44%

63%

Placement numbers are typically available 45 days following the close of the quarter. Actual data may change as system-generated information is updated.

25

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26

Department of Economic Security
SFY 2003 Monthly Key Performance Results

Average Length of Cash Assistance Spell
(TANF)
10
SFY 2001 Actual
9

SFY 2002 Actual
SFY 2003 Actual

8
7
6
JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

SFY 2001 Actual

7.9

7.7

7.7

7.9

7.9

7.8

7.9

7.8

7.8

7.9

8.1

8.2

SFY 2002 Actual

8.0

7.9

7.9

7.8

8.0

7.9

8.0

8.0

8.2

9.0

9.1

9.2

SFY 2003 Actual

9.1

8.5

8.7

8.0

8.2

8.0

7.9

7.9

8.0

8.0

8.6

8.6

This measure represents the cumulative monthly average of the length of a Cash Assistance Spell for cases closed each month.
A Cash Assistance Spell means the period from the first month benefits are paid until the case is closed.
Data have been collected since November 1995 and are available 45 days following the close of the month.

27

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28

Department of Economic Security
SFY 2003 Monthly Key Performance Results
By June 30, 2003, DES will maintain the Child Protective Services and Family Builders combined response rate of 100%.

CHILD PROTECTIVE SERVICES
Response Rate
100%
99%
SFY 2001 Actual

98%

SFY 2002 Actual
SFY 2003 Target

97%

SFY 2003 Actual

96%
95%
JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

This measure represents the number of CPS reports assigned for investigation plus the number of reports referred to Family Builders
compared to the total number of CPS reports received.
JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

SFY 2001 Actual

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

SFY 2002 Actual

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

SFY 2003 Target

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

SFY 2003 Actual

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Monthly data are available 60 days after the last day of the month.
Data are reported after resolution of fluctuations between reporting periods.

29

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30

Department of Economic Security
SFY 2003 Monthly Key Performance Results
By June 30, 2003, DES will increase total IV-D collections to $264,000,000.

CHILD SUPPORT
Amount Collected
$270,000.0
$245,000.0
$220,000.0
$195,000.0
$170,000.0
$145,000.0
$120,000.0
$95,000.0
$70,000.0
$45,000.0
$20,000.0

SFY 2001 Actual
SFY 2002 Actual
SFY 2003 Target
SFY 2003 Actual

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

This measure represents the total year-to-date amount of IV-D dollars collected under Title IV-D of the Social Security Act.

JUL

AUG

SEP

OCT

SFY 2001 Actual

$20,495.0

$38,625.5

$55,834.3

$73,821.0

$90,962.7

$107,773.7

$126,635.1

$143,207.4

$167,512.2

$189,380.0

$213,934.0

$238,037.6

SFY 2002 Actual

$20,035.0

$41,951.5

$60,962.2

$82,280.2

$100,384.8

$118,579.9

$137,905.0

$157,059.1

$179,972.3

$203,860.3

$229,343.9

$254,095.0

SFY 2003 Target

$22,287.5

$41,699.3

$60,159.4

$80,618.5

$99,514.2

$118,229.4

$138,870.0

$157,334.3

$183,168.5

$208,687.0

$236,321.6

$264,000.0

SFY 2003 Actual

$22,293.0

$43,031.2

$62,119.7

$83,041.8

$100,630.3

$120,812.3

$140,564.1

$159,444.7

$183,440.7

$207,281.9

$231,994.2

$256,555.0

(THOUSANDS)

NOV

DEC

Monthly data are available 45 days after the last day of the month.

31

JAN

FEB

MAR

APR

MAY

JUN

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32

Statistics
The Department of Economic Security presents statistical tables that are relative to its
operations as a human services agency in the State of Arizona.

33

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34

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Comparison Between Arizona and United States
Population
For the Calendar Years Ended December 31

Year

Arizona
Population

United States
Population

Percentage
Change
in Arizona
Population

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

3,915,740
4,065,440
4,245,089
4,432,499
4,586,940
4,736,990
4,883,342
5,023,823
5,130,632
5,306,966
5,456,453

256,514,224
259,918,588
263,125,821
266,278,393
269,394,284
272,646,925
275,854,104
279,040,168
282,224,348
285,317,559
288,368,698

2.44%
3.82%
4.42%
4.41%
3.48%
3.27%
3.09%
2.88%
2.13%
3.68%
2.82%

Percentage
Change
in U.S.
Population
1.40%
1.33%
1.23%
1.20%
1.17%
1.21%
1.18%
1.15%
1.14%
0.95%
1.07%

Source: The United States Bureau of Economic Analysis; and the Arizona Department of
Economic Security, Research Administration.
Note:

The information contained in the sources used for this table is revised on a continuing
basis and, accordingly, the amounts in the above table have been revised. Therefore,
amounts presented for some years may not match the amounts reported for prior years.

Population Growth
5%
4%
3%
2%
1%
0%

Calendar Year

Arizona

United States

35

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36

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Comparison Between Arizona and United States
Per Capita Income
For the Calendar Years Ended December 31

Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

Arizona Per
Capita Income

U.S. Per
Capita Income

$

$

18,131
18,756
19,774
20,634
21,611
22,780
24,133
25,173
25,578
25,872
26,157

Percentage
Change in
Arizona Per
Capita Income

Percentage
Change in
U.S. Per
Capita Income

2.67%
3.45%
5.43%
4.35%
4.73%
5.41%
5.94%
4.31%
1.61%
2.03%
1.10%

4.68%
3.02%
3.97%
4.34%
4.62%
4.96%
5.59%
4.48%
3.96%
2.36%
1.18%

21,082
21,718
22,581
23,562
24,651
25,874
27,321
28,546
29,676
30,472
30,832

Source:

The United States Bureau of Economic Analysis.

Note:

The information contained in the sources used for this table is revised on a continuing
basis and, accordingly, the amounts in the above table have been revised. Therefore,
amounts presented may not match the amounts reported for prior years.

Change in Per Capita Income
6%
5%
4%
3%
2%
1%
0%

Arizona

Calendar Year
United States

37

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38

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Expenditures by Function and Funding Source
(Governmental Funds and Unemployment Insurance Benefits)
For the Fiscal Years Ended June 30
HEALTH AND WELFARE:
State
Year
Funds
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

$

353,782,600
372,114,400
386,169,400
370,757,400
400,340,700
425,235,500
422,155,816
442,940,537
449,946,977
434,725,701

Federal
Funds

Other
Funds

$ 1,111,025,346
1,129,460,885
1,092,763,240
1,072,660,950
1,018,548,228
1,045,925,462
1,134,907,352
1,215,771,799
1,406,217,101
1,350,528,136

Total
Funds

$ 238,523,964
240,231,124
225,288,163
216,699,361
202,518,001
220,049,050
241,950,698
278,444,218
511,087,455
856,181,840

$ 1,703,331,910
1,741,806,409
1,704,220,803
1,660,117,711
1,621,406,929
1,691,210,012
1,799,013,866
1,937,156,554
2,367,251,533
2,641,435,677

Source:

The Arizona Department of Economic Security, Audited Annual Financial Report, 1993;
Audited Comprehensive Annual Financial Report, 1994, 1995, 1996, 1997, 1998, 1999, 2000
and 2001; and Audited Financial Statements, 2002 and 2003.

Note:

The Federal Funds amounts include amounts for food stamp benefits distributed.

Expenditures by Function and Funding Source
(In millions)
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

Fiscal Year
State Funds

Federal Funds

39

Other Funds

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40

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Revenues by Funding Source
(Governmental Funds and Unemployment Insurance Benefits)
For the Fiscal Years Ended June 30
State
General Fund
Year Appropriations

Federal
Financial
Assistance

Employers UI
Contributions

Interest on
Investments

1994 $ 356,801,100
1995
379,581,100
1996
397,217,300
1997
373,669,400
1998
409,640,900
1999
425,530,200
2000
434,171,319
2001
434,834,859
2002
463,456,900
2003
422,581,074

$ 1,121,879,899
1,142,831,235
1,110,112,146
1,078,901,892
1,016,492,399
1,045,521,174
1,143,846,770
1,267,241,399
1,604,700,337
1,683,066,873

$ 201,229,020
235,800,076
239,480,340
225,101,956
223,517,434
191,326,704
177,603,712
175,736,341
162,157,379
160,962,888

$ 26,681,446
30,346,709
38,861,761
43,414,155
51,591,704
58,281,429
64,010,350
69,609,832
66,619,568
58,776,481

Other
$ 37,330,662
45,731,486
48,154,973
47,406,581
49,907,366
56,212,888
57,845,055
61,579,318
76,573,245
72,830,370

Total
$ 1,743,922,127
1,834,290,606
1,833,826,520
1,768,493,984
1,751,149,803
1,776,872,395
1,877,477,206
2,009,001,749
2,373,507,429
2,398,217,686

Source: The Arizona Department of Economic Security, Audited Annual Financial Report, 1993;
Audited Comprehensive Annual Financial Report, 1994, 1995, 1996, 1997, 1998, 1999, 2000
and 2001; and Audited Financial Statements, 2002 and 2003.
Note:

The Federal Financial Assistance amounts include amounts for food stamp benefits distributed.

Revenues by Funding Source (In millions)
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

Fiscal Year
State General Fund Appropriations
Employers U I Contributions
Other

Federal Financial Assistance
Interest on Investments

41

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42

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Comparison Between Arizona and United States Unemployment
For the Calendar Years Ended December 31

Year

Number of
Unemployed Arizona

Number of
Unemployed U.S.

Unemployment
Rate Arizona

Unemployment
Rate U.S.

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

138,492
115,250
127,992
111,258
121,714
101,415
93,400
104,000
98,100
121,400
165,000

9,611,167
8,926,667
7,975,500
7,406,917
7,231,083
6,728,667
6,203,833
5,881,583
5,688,833
6,842,167
8,388,500

7.60%
6.30%
6.40%
5.10%
5.50%
4.60%
4.10%
4.40%
3.90%
4.68%
6.20%

7.50%
6.80%
6.10%
5.60%
5.40%
5.00%
4.50%
4.20%
4.00%
4.79%
5.80%

Source: The Arizona Department of Economic Security, Research Administration,
Economic Analysis; and the United States Department of Labor,
Monthly Labor Review.
Note:

The information contained in the sources used for this table is revised on a continuing
basis and, accordingly, the amounts in the above table have been revised. Therefore,
amounts presented for some years may not match the amounts reported for prior years.

Unemployment Rate
8%
7%
6%
5%
4%
3%
2%
1%
0%

Calendar Year
Arizona

United States

43

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44

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Unemployment Insurance Financial Transaction Summary
For the Fiscal Years Ended June 30
Total
Employer
Contributions

Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

$

253,105,103
236,679,799
240,046,970
227,644,491
228,236,334
200,221,238
188,348,457
182,095,014
338,555,460
237,542,722

Total
Benefits
Paid
$

238,666,989
173,317,247
177,755,864
172,336,147
159,930,580
169,265,609
177,980,914
202,900,332
407,021,875
467,411,646

Fund
Balance
$

412,794,159
504,536,522
613,437,439
711,845,399
831,262,488
919,819,409
993,052,630
1,038,116,687
1,033,275,970
860,871,706

Source:

The Arizona Department of Economic Security, Unemployment Insurance
Financial Transaction Summary Report.

Note:

The total benefits paid amount for all fiscal years has been adjusted to include
interstate benefits.
Unemployment Insurance Contribution to Benefits and
Fund Balance (In millions)
1200
1000
800
600
400
200
0

Fiscal Year
Employer Contributions

Benefits Paid

45

Fund Balance

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46

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Food Stamp Benefits Participants
For the Fiscal Years Ended June 30

Year

Average
Monthly
Number of
Households

Average
Monthly
Number of
Persons

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

186,714
182,782
161,415
141,981
112,345
95,938
95,238
102,307
134,135
171,247

510,477
494,637
434,542
385,061
311,142
260,736
257,989
277,192
355,722
442,320

Source:

Average
Monthly
Allotment
Per Household
$ 190.10
195.05
200.91
199.34
201.11
207.73
208.83
211.04
217.64
223.06

Average
Monthly
Allotment
Per Person
$ 69.53
72.08
74.63
73.50
72.61
76.43
77.09
77.89
82.07
86.36

Average
Monthly
Benefits
Distributed
$ 35,494,355
35,651,359
32,429,993
28,302,483
22,593,553
19,929,511
19,889,001
21,590,998
29,193,426
38,198,140

The Arizona Department of Economic Security, Family Assistance Administration.

$230

200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

$220
$210
$200
$190
$180
$170
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Fiscal Year
Average Monthly Number of Households
Average Monthly Allotment per Household

47

Per Household

Households

Food Stamps Benefit Participation

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48

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
General Assistance
For the Fiscal Years Ended June 30

Year

Average
Monthly
Number of
Recipients

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

9,855
7,618
6,655
3,631
2,883
2,627
2,566
2,912
3,520
2,615

Source:

Average
Monthly
Payment
Per Recipient

Average
Monthly
Payments

$ 147.63
143.73
141.97
147.25
146.87
146.67
151.93
152.13
152.67
153.74

$ 1,455,003
1,094,888
944,841
534,679
423,430
385,315
389,855
443,007
537,348
453,103

The Arizona Department of Economic Security, Family Assistance Administration.

$200

10,000

$150

8,000
6,000

$100

4,000

$50

2,000

03

02

20

01

20

00

20

99

20

98

19

97

19

96

19

19

19

95

$0

94

0

19

Recipients

12,000

Fiscal Year
Average Monthly Number of Recipients
Average Monthly Payment Per Recipient

49

Average Monthly Payment

Recipient to Payment Comparison

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50

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Temporary Assistance for Needy Families
For the Fiscal Years Ended June 30

Year

Average
Monthly
Number of
Cases

Average
Monthly
Number of
Recipients

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

73,470
73,277
67,784
57,526
43,601
35,730
34,211
36,146
42,102
47,298

205,203
201,019
183,274
155,037
119,011
95,556
89,770
93,857
109,547
121,193

Source:

Average
Monthly
Payment
Per Case

Average
Monthly
Payment
Per Recipient

$ 300.32
296.57
292.15
296.30
290.35
282.66
283.82
282.66
286.99
282.76

$

107.52
108.11
108.05
109.94
106.37
105.69
108.16
108.86
110.30
110.35

$ 22,064,301
21,731,910
19,803,335
17,045,065
12,659,966
10,099,685
9,709,791
10,216,987
12,082,660
13,373,618

The Arizona Department of Economic Security, Family Assistance Administration.

$350
$300

80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0

$250
$200
$150
$100

03

02

20

01

20

00

20

99

20

98

19

97

19

96

19

95

19

19

19

94

$50
$0

Dollars Per Case

TANF Cases

Cases

Average
Monthly
Payments

Fiscal Year

Average Monthly Cases

Average Monthly Payment Per Case

51

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52

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Jobs Program
Comparison of Participants and Participants Employed
To the Percentage Retained
For the Fiscal Years Ended June 30

Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

Number of
Participants
Number of Participants
11,446
19,544
21,263
21,734
30,520
25,209
23,802
23,290
23,818
32,008

Percentage
Retained
After 90 Days
Retained After 90 Days
75%
66%
72%
57%

Total
Employed
Employed
2,445
3,984
5,905
7,433
10,930
9,604
9,950
12,405
12,513
15,490

N/A
N/A

52%
46%
46%
46%

Source: The Arizona Department of Economic Security, Jobs Administration.
The Jobs Program started in fiscal year 1991. In fiscal year 1998 and the first
half of 1999, percentage retained after 90 days was not traced as a performance
measure.

35,000
30,000
25,000
20,000
15,000
10,000
5,000
0

80%
60%
40%
20%

03

02

20

01

20

00

20

99

20

98

19

97

19

96

19

95

19

19

19

94

0%

Percentage Retained

Jobs Program Participants
Employed to the Percentage Retained
Number of Participants

Note:

Fiscal Year
Number of Participants

Employed

53

Retained After 90 Days

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54

ARIZONA DEPARTMENT OF ECONOMIC SECURITY
Child Support Enforcement Collections
For the Fiscal Years Ended June 30

Year

TANF
Collected
for Arizona

1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

$ 20,679,000
23,813,000
23,226,800
25,042,400
21,895,100
22,700,300
25,100,000
26,106,500
28,407,500
26,262,600

TANF
Collected for
Other States
$ 4,756,100
5,025,800
5,893,600
6,142,200
7,164,900
7,284,700
8,212,400
8,538,800
8,193,600
8,267,100

Non-TANF
Collected
for Arizona
$

53,339,400
65,478,200
86,903,200
103,245,200
117,104,400
145,367,800
165,356,200
186,167,200
199,834,500
204,043,700

Non-TANF
Collected for
Other States
$ 11,696,800
12,983,200
13,220,700
12,632,300
13,532,600
13,791,700
16,248,800
17,225,100
17,659,300
17,981,500

Non-IV-D
Collected
$

$ 143,074,200
251,380,400
262,336,000
270,510,400
281,660,900

Source: The Arizona Department of Economic Security, Division of Child Support Enforcement.

Child Support Collections (In millions)
300
250
200
150
100
50
0

Fiscal Year

Non-TANF Collected for Other States
Non-TANF Collected for Arizona
TANF Collected for Other States
TANF Collected for Arizona

55

Total
Collections
90,471,300
107,300,200
129,244,300
147,062,100
159,697,000
189,144,500
214,917,400
238,037,600
254,094,900
256,554,900

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56

Appendix A

Children and Family Services
Training Program Fund
Status Report

57

Arizona Department of Economic Security
Administration for Children, Youth and Families (ACYF)
Children and Family Services Training Program Fund
STATUS REPORT
The Child Welfare Training Institute (CWTI) was commissioned by the Legislature in
January 2001. The Department established workgroups composed of staff and
community partners to provide the structured base for CWTI. In January 2002, the
CWTI initiated a new comprehensive Case Manager Core curriculum. This
curriculum combines child welfare theory and practice principles, child welfare policy
and legal requirements, and automated case management and case record
documentation into one comprehensive curriculum.
Institute training goals include the following:
1. Developing training based on clearly identified training needs.
2. Using child welfare best practices and state-of-the-art methodologies.
3. Emphasizing cultural competency.
4. Integrating family-centered child welfare best practices consistent with existing
national standards.
5. Promoting and facilitating the transfer of knowledge, skills, and awareness from
the training site to the job site.
6. Supporting the professional growth and development of ACYF staff.
7. Involving field staff in decision making on training issues.
8. Revising training based on assessment of effectiveness through a continual
evaluation process.
9. Providing a comprehensive, hands-on automated case management system to
ensure improved documentation and case planning.
Initially, CWTI Training Officers provide the classroom curriculum. In April 2002,
the Department initiated cross training of classroom, field, and Childrens Information
and Data Source (CHILDS) automated system trainers. Field training supervisors are
located in ACYF offices throughout the state to reinforce the classroom work.

58

In addition to the above training, one and two-day advanced in-service workshops are
conducted during the year in locations throughout the State. To ensure availability of
training for experienced case managers, ACYF also conducts parent aide and
supervisor core training. The Department encourages staff to pursue a bachelor’s or
master’s degree in social work to further improve the quality and professionalism of
services.
SUMMARY OF ACYF TRAINING
SFY 2002
Type of Training
Case Manager
Core
Supervisor
Core**
Parent Aides
Core
Specialized
Training

Number of
Modules/Weeks

Number of
Days Per
Group

Total Number
of Days

Number of
Classes
Started

7*

30.5

336

12

8

16

32

2

7

3

24

16

23

1-2

35

23

* Denotes the number of weeks Case Managers attend classroom Core Training. This is a
12 week training course which incorporates seven weeks classroom training with five weeks
field training.
** In April 2002, a Supervisor Task Force was formed to re-work Supervisor Core Training.
New classes began in December 2002. During this time, Supervisor Core was under revision.
Supervisor Core was discontinued in April 2003 due to budgetary constraints until July 2003.
Supervisors still attended mandated supervisory classes through OMD.
Note: Training Costs are paid for by the Child Protective Services Training Fund with Title
IV-E training reimbursement of federal grant funds.

New Case Managers receive the Introductory Guide which includes reading materials
and assignments. The Introductory Guide is intended to be completed within the first
month of employment by the new case manager.
New supervisors receive a Supervisor Handbook as part of the recently revised
Supervisor Core training. The Revised Supervisor Core Curriculum was developed as
a collaborative effort with the Office of Management Development for mandated
supervisory courses such as Excellent Staff Through Example Education Motivation
(ESTEEM) Evaluation training and Cultural Diversity trainings.

59

The CWTI also provides a revised Parent Aide Curriculum. Specialized and
Advanced Workshops for ongoing and experienced staff are provided at locations
throughout the State.

60

DES Service Delivery Presence by District
Director’s Office
1717 West Jefferson Avenue
Phoenix, AZ 85007
(602) 542-5678

District Offices
District I
815 North 18th Street
Phoenix, AZ 85006
(602) 307-9016
District II
400 West Congress, #420
Tucson, AZ 85701
(520) 628-6810
District III
220 North Leroux
Flagstaff, AZ 86001
(928) 779-2731
District IV
350 West 16th Street, #232
Yuma, AZ 85364
(928) 782-4343
District V
2510 North Trekell Road
Casa Grande, AZ 85222
(520) 836-2351
District VI
209 Bisbee Road
Bisbee, AZ 85603
(520) 432-5703

DES Web Site - www.de.state.az.us
Call 602-542-2106 for copies of this report

Equal Opportunity Employer/Program
Under the Americans with Disabilities Act (ADA), the Department must make a reasonable accommodation to allow a person with a
disability to take part in a program, service, or activity. For example, this means that if necessary, the Department must provide sign
language interpreters for people who are deaf, a wheelchair accessible location, or enlarged print materials. It also means that the
Department will take any other reasonable action that allows you to take part in and understand a program or activity, including
making reasonable changes to an activity. If you believe that you will not be able to understand or take part in a program or activity
because of your disability, please let us know of your disability needs in advance if at all possible. This document is available in
alternative formats by contacting:: Office of Policy, Planning and Project Control at (602) 542-2106.

©
MIX-077 (12-03)