A year ago, Minnesota counties began cutting a service called targeted case management for children, the mentally ill and retarded adults because Medicaid was about to issue a rule cutting deeply into the service. Officials say that rule, issued last week, likely will cut deeper than they expected.

WHAT IT IS

Targeted case management has been used to help thousands of children at risk of abuse or neglect and their families.

Case managers help them get medical, mental health, social, housing, educational, vocational, transportation and other services, also extended to adults and children with mental illness and to mentally retarded adults. The new rules appear to restrict services to medical and psychological help.

2006 COSTS AND CLIENTS

Child welfare: $96 million for 70,555 children and families, with $48 million from federal funds and $48 million from counties.

Mental health: $66 million for 20,370 children and adults, half federal and half county funding.

Developmental disabilities: $10 million for 7,300 adults, half federal and half county money.