Last fall, the National Association of Public Child Welfare Administrators (NAPCWA) presented to Congress in several committee hearings a child welfare financing reform package that would enable states to provide funding for the child welfare system through recognizing and supporting positive child and family outcomes. The proposal called for supporting a state through ongoing financial reimbursement, even when the out-of-home care population is being reduced. While supporters do not use the term “block grant,” the proposal ensures ongoing sustained funding for states for Title IV-E and IV-B to meet the needs of children who come to the attention of the child welfare system. The proposal expands covered services for Title IV-E beyond foster care services and expands covered populations by delinking IV-E eligibility from Aid to Families with Dependent Children (AFDC) standard. In a presentation to the states on Friday by Commissioner Bryan Samuels, the future of the financing reform proposal was challenged.
Due to the erosion of the Title IV-E eligibility rate, which relies on the 1996 AFDC income standard, the Office of Management and Budget (OMB) projects a significant decline in federal support of the Title IV-E program. In recent years, the out-of-home care population has been significantly reduced nationally, which has resulted in less utilization of the Title IV-E program federal budget. OMB has examined this increasing decline in out-of-home care expenditures and with Congress’ pressure to find ways to reduce the federal budget; Title IV-E has become a target. If Congress approves smaller budgets for the Title IV-E program, the basis of the child welfare financing reform is in jeopardy.
NAPCWA will be revisiting the framework of the proposal and attempt to negotiate with Congress the necessity of sustaining the budget. As members of NAPCWA we have an opportunity to participate in those discussions and drafting of revisions.
The House of Representatives Ways and Means Committee introduced legislation last week for a renewed authorization of Title IV-E Waivers. It is expected that the Senate will release waiver legislation in the near future as well. While the House released identical legislation from the 111th Congress, the Senate is expected to make some revisions, most significantly reducing the amount of time from 5 years to 3 years. State representatives express concern over such a shortened period of time to fully demonstrate cost neutrality, a major goal of any approved waiver.
