By Karen Ocamb

A war is brewing between the Los Angeles County Department of Health Services and its Office of AIDS Programs and Policy and the County's HIV Commission. The dispute was prompted by an Oct. 5 letter from OAPP to County Health Deputies and HIV/AIDS service providers proposing service contract reductions totaling $1.6 million for next year, beginning March 1, 2006.

HIV/AIDS agencies are also angry at how OAPP tried to justify the cuts, at a time when service providers are concerned about adjustments in the Ryan White CARE Act, which has not yet been reauthorized. Additionally, the proposed cuts come at the same time OAPP is increasing it administrative costs by $1.2 million to lease new office space, despite a current abundance of empty cubicles.

"There are several factors that contribute to the need for contract reductions including the over-allocation of resources, continued reductions in the percentage of underspending by contractors, unanticipated costs, unfunded mandates and level funding for care and treatment services," wrote OAPP Interim Director Mario Perez in a contract negotiating letter to Whitney Engeran, executive director of Being Alive Long Beach detailing the proposed 3-9 percent funding cuts in his contract for next year.

In an Oct. 17 letter to the Board of Supervisors, HIV Commission co-chairs Nettie DeAugustine and Al Bellesteros said the HIV Commission determined the cuts were "premature and unacceptable ... because service cuts should not be used as the first line of defense against financial hardship, and other alternatives such as cuts in administrative overhead should be considered and implemented first."

The HIV Commission recommended that the board reject the proposed cuts and find alternative solutions, and instruct OAPP to be transparent, accountable, and provide the commission with "all pertinent" information.

At the Oct. 25 board meeting, Supervisor Zev Yaroslavsky introduced a motion to instruct OAPP "to identify administrative cost reductions in an amount sufficient to mitigate the proposed $1.6 million contract service reductions" and report back on Nov. 1. Meanwhile OAPP must suspend contract negations.

Supervisors Gloria Molina and Don Knabe added amendments. Saying that OAPP's reason for the proposed cuts "has highlighted the need for change in the way OAPP allocates money to providers," Molina called for OAPP, the Chief Administrative Office and the Auditor-Controller to analyze the current system and come back with recommendations for "a new methodology implementation plan. She also called for full disclosure of OAPP's budget to the HIV Commission.

Miki Jackson, from AIDS Healthcare Foundation, and AIDS Project Los Angeles Advocacy Coordinator Ruel Nolledo also blasted OAPP. The letter "blames these cuts on unanticipated expenditures, such as the $1.2 million office lease for OAPP," Nolledo told the board. "These cuts are totally unacceptable. OAPP cannot be allowed to balance its apparent need for more bureaucracy against the care and treatment for people living with HIV."

Jackson later told IN that she thinks "AIDS dollars are being used to underwrite the county budget. But considering the board's action, this is the act of a lone DHS official and not entirely the work of OAPP."