Richman to become Chief Operating Officer at U.S. Dept. of Housing and Urban Development

Governor Edward G. Rendell has announced the resignation of Public Welfare Secretary Estelle B. Richman, effective Dec. 31. Richman has served as secretary since the beginning of Governor Rendell’s administration in 2003.

“Secretary Richman served during one of the most challenging periods in modern Pennsylvania history for human services, and she met that challenge in a way few others could have done,” Governor Rendell said. “The recession increased demands on social services just as public money became scarce, yet she improved the quality of DPW programs while still managing the department with heightened efficiency.

“Since 2003, Secretary Richman has been a champion for vulnerable children and their families in every corner of Pennsylvania,” the Governor added. “Low-income families are stronger, healthier and on the road to self-sufficiency because of her passion for their well-being. We are delighted that Estelle will now focus that same energy on national housing issues in her role as Chief Operating Officer at HUD.”

The Governor has nominated Harriet Dichter of Philadelphia to succeed Richman as secretary. Her nomination is subject to Senate confirmation.

At DPW, Richman oversaw an agency with more than 19,000 employees, providing services and support to low-income, elderly and disabled Pennsylvanians, including children.

Through Richman’s leadership, Pennsylvania now provides health care through Medical Assistance for more than two million Pennsylvanians while improving health outcomes with pay-for-performance initiatives. Through better disease management and coordination of care initiatives, Richman reduced the severity of illness for more than half of those enrolled in the Medical Assistance program.

With family roots in education, Richman recognized early learning and development of young children as foundational to their school achievement and lifetime economic contribution. Partnering with the Department of Education, Richman built a nationally recognized early care and education program that unifies Pennsylvania’s early childhood programs and improves service quality.

Pennsylvania’s commitment to a continuum of early childhood programs has provided more than 170,000 children with quality childcare programs through Keystone STARS, with nearly 80 percent of centers participating. More importantly, approximately 70 percent of children receiving child care assistance are now using regulated care, through Child Care Works, a 38 percent increase from 2006-07.

Richman was committed to remaining a good steward of taxpayer dollars. She achieved savings -- without cuts -- by revamping the department’s pharmacy operations and holding Medical Assistance Managed Care costs down, all while reducing the overall agency staff by nearly 3,000 employees since 2003 – a 13 percent reduction in the department’s workforce.

Richman has spearheaded initiatives to move people to home and community based living to reduce dependence on institutional care, mainly through the successful closures of Harrisburg and Mayview State Hospitals and the Altoona Center. She focused on implementing major initiatives to reduce the waiting list for mental retardation services, with more than 2,000 people with disabilities removed from the list over the past two years.

At DPW, Richman supported a culture of employment and productivity for the most vulnerable citizens, recognizing that jobs for the lowest-income families are critical to the economic vitality of the state. Specifically, under Richman’s guidance, Pennsylvania reduced the TANF caseload by over 25 percent and successfully turned the Supplemental Nutritional Assistance Program into a national model.

“Secretary Richman has compiled an incredible record of accomplishment,” Governor Rendell said. “Her ability to do so in a climate where the legislature is often under pressure to cut rather than support social services is another testament to her remarkable strength and her dedication to the mission of her department.”

Richman’s accomplishments are evidenced through accolades the department has received from the federal government including three performance awards from the U.S. Health and Human Services worth over $13.4 million for accuracy in the SNAP program, marking Pennsylvania as a model among large states. Richman also worked with staff to increase the amount of child support distributed to families by $129 million, earning five national awards since 2005.

Harriet Dichter, the Governor’s nominee to succeed Richman, currently serves as Deputy Secretary, Office of Child Development and Early Learning for the departments of Public Welfare and Education. She leads state efforts to bolster early education and care for Pennsylvania children, overseeing planning, program and policy development and implementation for a total investment of $1.3 billion.