 January 14, 2025
Greetings VRS stakeholders,
VRS is reaching out to provide updated information to you regarding our fiscal forecast. VRS is needing to make some immediate adjustments to our expenditures due to the following factors:
- Significant increases in the number of VRS participants, especially Pre-ETS students, since 2021.
- Significant increases in the overall cost of operating VRS programs, primarily staffing and case services.
- Flat funding
As shown in the graph below, our spending on VRS case services went from $17.1 million in 2017 to $28.4 million in 2024. This trajectory of spending is unsustainable for VRS.
Strategies to reduce spending:
VRS has already implemented multiple strategies to reduce our spending, but we now must consider additional strategies. We’ve implemented or anticipate implementing the following:
- Review of all VRS operating costs.
- Work towards closing of priority categories.
- Continue to closely monitor funded services on a monthly basis.
- Continue with the VRS hiring freeze implemented in September of 2024.
- Additional VRS workforce planning.
- Leverage internal VRS staff capacity to provide additional services, as feasible. We will continue to work with Community Partners to help meet the needs of VRS participants.
- Explore additional partner grant-funded programs and opportunities for participants.
We value your partnership and dedication to our mission to “empower Minnesotans with disabilities to achieve their goals for employment, independent living and community integration.” We appreciate your continued partnership as we work together to address these challenges with care and transparency.
Dee Torgerson
Director, Vocational Rehabilitation Services
More Information
For additional information, please join us at the VRS + Community Partners Forum on Tuesday, February 4, 2025, 10:30 am – 12:00 pm: Forum Registration.
If you have questions, please reach out to Chris McVey at Chris.McVey@state.mn.us and Lori Thorpe at Lori.Thorpe@state.mn.us.
What is the DEED-Vocational Rehabilitation Services Community Partner and Stakeholder listserv?
The Vocational Rehabilitation Services (VRS) Division of the Minnesota Department of Employment and Economic Development (DEED) comprises the public Vocational Rehabilitation program, the Minnesota Extended Employment program, Independent Living services, Individual Placement and Supports grants, and Deaf and Hard-of-Hearing grants.
The DEED-VRS Community Partner and Stakeholder listserv is the communication platform for current VRS Community Partners, potential VRS Community Partners, and other interested stakeholders in Minnesota’s disability employment services system. We encourage you to subscribe if you are an interested stakeholder in Minnesota’s disability employment services system.
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