Hamilton County's poor are about to get poorer.

        The county's Department of Human Services (DHS) — the agency responsible for helping the poor by providing, among other things, job training, counseling and welfare programs — must cut as much as $25 million from its budget starting this summer.

        That equates to 3.4 percent of DHS's roughly $725 million budget, which includes agency administration and direct payments to clients for welfare, food stamps and Medicaid, said Mindy Good, DHS spokeswoman.

        The budget slashing would mean huge cuts to services provided to the area's most needy people.

        Don Thomas, DHS director, said his staff is reviewing and ranking the agency's contracts and services. Mr. Thomas will take the list to county commissioners, probably in June, with suggested cuts.

        Among the services that could take a hit:

        • Various training programs that help people get jobs or advance from entry- level jobs.

        • Payment for transportation for the working poor.

        • Programs aimed at preventing high-risk people from going onto the welfare rolls.

        • Counseling for children.

        • Programs to help people with mental illness, child development and victims of domestic violence.

        “We've got significant problems and we're still evaluating how to deal with them,” Hamilton County administrator Dave Krings said. “This is not something we can simply absorb in the budget, so there will have to be changes.

        “There will be good people who have received good services from good programs who we will not be able to serve anymore,” Mr. Krings said.

        Fewer state dollars, combined with increased spending statewide for welfare reform, have put the department in a quandary, Mr. Thomas said.

        Some programs, such as food stamps and child care for working families, won't be cut because they are mandated by the federal govern ment.

        But since January, DHS has instituted a hiring freeze, cut back on travel and training, delayed buying equipment and reduced contracts.

        Meanwhile, state officials are sitting on a reserve of more than $300 million in federal welfare funds, some of which could be released to counties this year.

        If done, amilton County would be looking at cuts of between $10 million and $15 million.

        Ohio Senate President Dick Finan, R-Evendale, said that money was set aside as a “rainy day fund,” in case a downturn in the economy would result in more people going onto the welfare rolls.

        Bruce Jewett, director of the Butler County Department of Job and Family Services, said it's raining.

        Mr. Jewett's office is looking at about $3 million in cuts if the money isn't released. Butler County has joined with Hamilton County in lobbying for the release of the money.

        “It's important for us to utilize all the resources we have so we can do the most good for our citizens,” Mr. Jewett said. “The state for the last two years has been encouraging us to spend, spend, spend because the money was there. Now the state is concerned about the spending level.”

        Advocates for the poor say it's a sham to cut programs while the state sits on a bundle of cash.

        Katy Heins, director of the Contact Center in Over-the-Rhine, said the surplus money needs to be spent. The Contact Center is an organization that lobbies for changes in the welfare system.

        “It's irresponsible on state level because that money could be lost this coming year when they reauthorize (welfare) dollars,” Ms. Heins said. “I do understand the budget problems, but there is federal money there and it should be spent.”

        That's not the message coming from the Ohio Department of Job and Family Services.

        Joel Potts, the department's policy expert on welfare reform, testified to the House Human Services Finance Sub-Committee on Wednesday that the welfare surplus should stay in the bank.

        “The administration feels prudent reserves are set aside,” Mr. Potts said.

        Mr. Finan said he doesn't want the surplus spent on programs that will require on-going funding, because the money might not be there in the future.

        “The reason that money is there is because we didn't trust the feds in the first place and wanted to create one or two years of back funds so we could phase out those programs as opposed to cutting them off completely,” Mr. Finan said.

        The debate will continue until the state legislature sets the budget in June.

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