WATERLOO - Charlie Krogmeier, the newly appointed director of Iowa Department of Human Services, outlined his plans to change mental health delivery, his priorities for a looming state budget crisis and discussed the Atalissa bunkhouse case.

In an interview with The Courier on Friday, Krogmeier, 59, said difficult decisions loom for DHS when federal stimulus money runs dry next year. He said it will be a priority to protect local field staff from cuts because they perform child protection work. He declined to say what areas might have to be cut.

"We provide a lot of essential services. There's not a lot of wiggle room," he said.

With 5,700 employees, DHS is the state's largest agency and oversees programs that include Medicaid, welfare, food stamps, child protection and child support collections.

Krogmeier has held a variety of jobs in state government over the years, including a stint as director of the Department of Management under Gov. Chet Culver's administration. His confirmation hearing is scheduled for 2010 legislative session.

Krogmeier called the DHS intervention at an Atalissa bunkhouse with boarded-up windows and no central heating a success, despite criticism that DHS did not intervene sooner. Officials found 21 dependent adults living there, and several now live in Waterloo.

Former DHS director Gene Gessow's confirmation was turned down on a straight-line party vote. Republican senators said he was not forthcoming in questions asked during hearings.

As a result of the Atalissa case, state agencies implemented a number of changes including improved and standardized reporting between agencies. A state law passed this spring made it easier for DHS to intervene in adult abuse cases.

"The response from DHS has put them in a pretty good position. The end result for those men has been very good," he said.

Krogmeier said he wants to use recommendations in a University of Iowa study to create a new level of care between acute care psychiatric beds and residential beds. Iowa ranks among the lowest in the nation for psychiatric beds per capita. He said a third level of intermediate care will allow a smoother transition for patients before release.

"Residential homes don't always want to, or have the capability of, taking an acute patient," he said.

It's unclear how, and if, the changes would be implemented as the state navigates significant deficits.