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Lake County social services director warns federal and state funding changes could squeeze local programs
Summary
Lake County Social Services Director Rachel Delman Parsons told supervisors the department is tracking federal and state actions — including an OMB freeze on some fund portals, possible Medicaid changes and Older Americans Act funding gaps — that could reduce services or delay payments to local providers.
Rachel Delman Parsons, Lake County social services director and executive director of the Area Agency on Aging of Lake and Mendocino Counties, told the Board of Supervisors on Oct. 12 that several federal and state funding developments could reduce services or delay payments to local providers.
Parsons said the department has made recent program improvements — completing delayed medical recertifications, consolidating buildings and recruiting long-term care ombudsmen — but faces new risks from federal actions and proposed policy changes. "The portals for providers to pull down funds for Medi-Cal ... are frozen," she said, adding she has escalated the issue to the County Welfare Directors Association and the California Department of Social Services.
Why it matters: changes to federal and state funding streams could affect Medi-Cal, In-Home Supportive Services (IHSS), nutrition and senior services, and housing assistance that serve low-income residents and older adults in Lake County.
Parsons listed three federal policy proposals of particular concern: shifting Medi-Cal to a block grant, imposing work requirements, and a potential repeal of the Affordable Care Act (ACA). She said a block grant "would reduce overall funding for the program. It would potentially result in lower payments to providers, less services for the public." On repeal of the ACA, Parsons said the change "would be bad," noting that ACA expansions are why a substantial share of County residents now have Medi‑Cal.
She also warned that the Office of Management and Budget action that froze certain federal fund draw portals appears to be a pause rather than an immediate cut, but that the local impact remains unclear. Parsons said the freeze is delaying some provider payments and that the County is working with state associations to clarify the situation.
On the Older Americans Act (OAA), Parsons said the federal continuing resolution omitted OAA funding that supports the Area Agency on Aging and senior-center meals. Parsons said the AAA had pulled down enough federal funding to cover two months (January and February) but that if federal reauthorization does not occur the AAA will need to use state funds reserved for contracted services to avoid service interruptions. She warned using state funds now could complicate later reimbursement if federal funds arrive.
Parsons also described ongoing state-level pressures: more program responsibilities being shifted to realignment funds, proposed reforms at CalHR that affect hiring, and an administrative funding proposal for IHSS. To manage uncertainty, she said she has implemented a hiring "frost" in the department while continuing to fill essential social worker positions; the department's current vacancy rate is 19%, and retention is about 87%.
Program figures Parsons presented include: roughly 50% of Lake County residents enrolled in Medi‑Cal; about 30% enrolled in CalFresh, which she said delivers about $35,000,000 in benefits annually to the county; 2,492 IHSS recipients (which Parsons said brings more than $5,000,000 in wages to providers); and roughly 2,458 people on CalWORKs. She said an average of 94 people exit CalFresh each month due to increased earnings.
Housing supports also face pressure. Parsons said Section 8 payments may be reduced to roughly 87% of current funding; the department has paused issuing new vouchers and would remove the smallest vouchers first if funding drops, restoring them when funds permit. She said the Lake County Housing Authority board will be reconvened to provide direction on housing priorities "coming soon to an agenda near you."
Board follow-up and next steps included a special board meeting scheduled for the next day to discuss Area Agency on Aging funding. Parsons said the department will keep the board informed as federal and state situations develop.
The presentation included a brief public-comment period with no substantive changes to staff recommendations recorded during the meeting.
