Narrative: d. 2. M. i. II.

In late 2015, DVR was made aware of a potential shortfall in funding. Further analysis of the reasons behind the projected shortfall revealed: • The required 15% Title I set—aside for Pre Employment Transition Services is reducing the funding available for all other clients other than Students with Disabilities. • Case service costs and expenditures have increased over the past year by approximately 20%, mostly due to an increase in applications by individuals seeking assistance with hearing aid costs • DVR has increased the numbers of individuals served and successfully closed in employment in each of the last five years while funding has not increased. • A high level of staff vacancies over the last year may result in immediate and premature referrals to fee—for—service providers

When DVR became aware of the situation, the State Rehabilitation Council was advised and offered feedback and support for the implementation of an Order of Selection for Category 3 via their regularly scheduled executive committee and full group meetings. Additionally, in December 2015 two phone calls were held with RSA to apprise them of the situation.

In 2014 and 2015, DVR spent approximately $567,000 and $690,000 respectively on individuals with disabilities who were in Category 3. By instituting an Order of Selection for Category 3, DVR believes that it will achieve the cost savings that will allow it to keep serving Categories 1 and 2. Individuals who have the fewest barriers to employment may be served through referrals to other services provided by Maine’s workforce development system.