Title IV-E Funding- States Get a Bonsus for Adopting Out Children- No Wonder They Are Snatching Them

This talks about Title IV-E Funding and all the money that is made off the backs of children who are sold into slavery. As you read this you will see the States are rewarded for adopting out children. They make a bonus and they make a bigger bonus when they adopt out older kids.

FUNDING RESOURCES FOR CHILD WELFARE
The funding of child welfare services is very complicated. Public child welfare
agencies depend on a variety of federal funding streams for their operation.
These funds along with state and/or local general fund appropriations are used
to hire staff and provide services directly as well as to purchase services from
third parties. Each of these revenue sources has their own set of rules,
regulations and policy interpretations. Some are open-ended entitlements;
others are capped entitlements; and others are specialized, focused or block
grants. As a general rule, the greater the flexibility, the smaller the amount of
money available. Some of these funds are administered directly by the State
Child Welfare Agency; while others, available to clients that both public and
private agencies serve, are administered by a different public agency.
This paper is not intended to give all the answers to all the particulars of each
of the described revenue resources. That would be a far more lengthy discourse
than is presented here. Instead, this paper will present the highlights of the
primary public child welfare administered grants as well as the rehabilitation
option and Targeted Case Management available under Medicaid, Title XIX.
Knowledge of the various funding streams available to public child welfare is
important to both public and private providers. Access to these funds and how
they are administered will vary from state to state.
The primary federal funding sources are as follows:

I. Title IV-E, Federal Foster Care, Kinship-Guardianship and Adoption
Assistance is a federal program administered by state and local public child
welfare agencies that is for poor children. The program is an open-ended
entitlement funded with a combination of federal and state/local matching
funds and is authorized under Title IV-E of the Social Security Act. In Fiscal
Year (FY) 2010 the projected cost of IV-E foster care is $4.6 billion. The
projected cost for the new Kinship-Guardianship program is $49 million and
IV-E adoption assistance is $2.4 billion. These totals include administrative
and training costs.
Eligibility

Title IV-E foster care and kinship-guardianship requires that the child must
have been a recipient of or eligible for AFDC (based on the State AFDC
standards that were in place on July 16, 1996) during the month a petition
was filed to remove the child (eligibility month) or the month a VPA (Voluntary
Placement Agreement) is signed. The child must have lived in the home of a
specified relative within six months of the eligibility month and be deprived of
parental support. In addition, there must be a court order that finds: (1)
Continuation in his/her own home would be “contrary to the welfare of the
child” and (2) reasonable efforts were made to prevent the removal of the child
from his/her family or to facilitate the return of the child who has been
removed.

As a result of legislation enacted in 2008, the Fostering Connections to Success
Act (PL 110-351), states have an option to extend this coverage to children
placed in subsided guardianships with relative caregivers. The same link to
AFDC still exists for these families. In addition, the child must have been
eligible for Title IV-E foster care while living for no less than six months in the
home of a prospective relative guardian. The state must also determine that
neither reunification with a parent nor placement in an adoptive family are
appropriate permanency options. The child must also demonstrate a strong
attachment to the relative and, in the case where a child is 14 years of age or
older, is consulted before being placed.

Title IV-E adoption assistance eligibility, until the enactment of PL 110-351,
followed Title IV-E eligibility for foster care. As a result of the new law the
adoption assistance eligibility link to AFDC will be phased out over time.
Starting in FY 2010, special needs adoptive children age 16 and older will all be
eligible for federal coverage. This age threshold will be lower by two years every
year until all special needs adoptions are covered by federal Title IV-E funding.
So in FY 2011, special needs adoption 14 and older will all be covered, in FY
2012 the age decreases to 12 years of age and so on. Starting in FY 2010 all
siblings who are placed with an eligible sibling will also be extended Title IV-E
coverage. Finally any child who has been in foster care for five consecutive
years will also be eligible for Title IV-E coverage if he or she is a special needs
adoption placement.

The age of care has also been extended as a result of PL 110-351. Currently
children in care are cover up to the age of eighteen. Beginning in FY 2011,
states will have an option to extend the age of foster care up to age, 19, 20 or
21. States also have the ability to extend care in kinship-guardianship and
special needs adoptions.

Title IV-E is a federal reimbursement for some of the federally eligible foster
care, kinship-guardianship or adoption expenses that the state has already
paid. Title IV-E is not a grant. Reimbursement is limited to three areas and the
funding formula is different for all three:
· Maintenance(45CFR1356.60(a)
· Administration(45CFR1356.60(c)
· Training (45CFR1 356.60 (b)

Maintenance is the board and room payment made to licensed foster parents,
group homes and residential child care facilities. For children that are Title IVE
eligible, the federal government reimburses the state for 50% to 83% of the
costs and the state pays the balance. The federal portion is called the “Federal
Financial Participation” or FFP. The FFP for Title IV-E foster care and adoption
assistance (maintenance) is the same as Medicaid (Title XIX) that is called the
Federal Medical Assistance Percentage or FMAP. A specific state’s FMAP is
based primarily on each state’s per capita income. The higher the state’s per
capita income, the lower the FMAP. If the child is not Title IV-E eligible, the
state is responsible to pay for the entire cost of care with other sources.
Administration includes those activities necessary for the proper and efficient
administration of the Title IV-E state plan. Examples of reimbursable
administrative activities included in federal regulations include:
· Referral to services
· Determination of Title IV-E eligibility
· Preparation for and participation in judicial determinations
· Placement of the child
· Development of the case plan
· Case reviews
· Case management and supervision
· Recruitment and licensing of foster homes and institutions
· Rate setting
· Costs related to data collection and reporting
· Proportionate share of related agency overhead

The state currently makes its claim to the federal government for
administrative reimbursement based on the total administrative cost, the
results of the Random Moment Time Study (RMTS), the percentage of Title IV-E
eligible children (often known as the penetration rate), and 50% FFP for
administration.

When states contract with private agencies to help them carry out public child
welfare responsibilities (such as conducting home studies for special needs
adoption), they claim reimbursement, based on the percentage of Title IV-E
eligible children in foster care or adoption assistance times 50% FFP for
administration

Training includes the cost of providing short and long term training at
educational institutions as well as in-service training for personnel employed
by or preparing for employment by the state (including a Tribe) or a local public
agency administering the Title IV-E state plan. Training also includes the cost
of short term training for current or prospective foster or adoptive parents and
members of state (or tribal) licensed or approved child care institutions
providing care to foster or adopted children.

The state currently makes its claim for training reimbursement based on the
total training cost, times the percentage of Title IV-E eligible children and times
75% FFP for training. The state is responsible for the balance or non-federal
share. In 2008 PL 110-351, extended this training to employees of private
agencies recognized by the state. The reimbursement for these workers will be
at 55% in FY 2009 increasing by 5 percent a year until this training is
eventually reimbursed at 75 percent.

II. Title IV-B – Subpart 1 – Child Welfare Services of the Social Security Act
was first established in 1935. The specific federal regulations are in 45CFR1
357. Congress is authorized to appropriate $325,000,000 annually and in FY
2010 appropriated $281,700,000. The allotment to each state is based on the
state’s population under age 21 as compared to other states and the “allotment
percentage of the state” (primarily the state’s per capita income). States must
submit a five year, “Child Welfare Services Plan” that is jointly developed with
the federal government. The Plan requires several assurances and
commitments by the state. Funds received may be spent on a wide variety of
child welfare related services and are considered very flexible. Annual status
reports regarding the Plan are required. States are limited to the amount of

Title IV-B, Subpart 1 money they can spend on foster care maintenance
payments, adoption assistance payments, and day care necessary for
employment, to the total amount of Title IV-B money the state received in FY
1979. At that time, the total national IV-B appropriation was $141,000,000.
Federally recognized Indian Tribes that submit a five year Child Welfare Service
Plan along with the necessary assurances are eligible for a portion of the
State’s allotment based on an enhanced population factor. There is a 25% nonfederal
match required.

III. Title IV-B – Subpart 2 – Promoting Safe and Stable Families is a capped
entitlement and was first passed into law as a part of the Omnibus
Reconciliation Act of 1993. In the 2001 reauthorization (Public Law 107-133),
the program was extended and language was added that allowed congress to
appropriate an amount up to $200 million in discretionary funds to the base
total of $305,000,000. The $305 million is considered “mandatory” money,
which means Congress does not have to approve the funding as part of the
annual appropriations process. In FY 2009 the total amount of funds available
through this program was $368,300,000. Each state’s share is based on the
average monthly number of children receiving food stamp benefits for the most
recent 3 federal fiscal years. As a general rule, at least 20% of the money must
be spent in each of four categories: 1) family preservation, 2) community-based
family support services, 3) time limited family reunification services and 4)
adoption promotion and support services. A description of how these funds are
to be expended must be included in the state’s five year Child Welfare Services
Plan. There is a 25% non-federal match required. Also 3 % is set aside for
federally recognized Indian Tribes or Organizations. The money awarded to
Tribes is based on child population and granted only to tribes that are
sufficient in size to generate at least $10,000 and who submit a five year Child
Welfare Services Plan.

As part of the reauthorization in 2005, mandatory funding was increased by
$40 to bring the total to $345 million. The additional $40 million in funding is
split between substance abuse treatment regional partnerships and workforce
state grants. The substance abuse grants are competitive on a national basis.
The workforce grants are awarded to all states provided a state can submit
data that verifies that caseworker visits to children in care are being conducted
monthly. For FY 2010, the substance abuse grants will be funded at $20
million and the workforce grants will be funded at $20 million.

IV. Child Abuse and Neglect Prevention and Treatment Act (CAPTA) are
funds authorized by Congress, not an entitlement, and must be appropriated
annually. During FY 2009 a total of $26,500,000 was appropriated. Receipt of
these funds requires that they must be spent on child protection activity. The
amount of money a state receives is based on its child population. In accepting
these funds, a state must in its state law, meet certain requirements related to
child abuse and neglect. These requirements deal with quality issues for the
delivery of child protection services.

As part of the CAPTA law, the federal government also provides funding to
Community Based Grants for the Prevention of Child Abuse and Neglect
(CBCAP). The purpose is to develop and expand a network of community-based
prevention focused resource centers in states as a way to enhance local
prevention efforts. For FY 2009 $41.6 million was appropriated for CBCAP.
CAPTA also includes a Discretionary Grant program that is used to fund
research and state and local initiatives. In FY 2009 Discretionary Grants were
funded at $28.2 million with an additional $13.5 million appropriated to assist
states in utilizing funds to establish, strengthen and expand home visitation
programs.

V. Chaffee Independence Program (Independent Living), formally known as
the Title IV-E Independent Living Initiative, the Foster Care Independence Act
of 1999 (now known as the Chaffee Independence Program) was signed into law
on December 14, 1999. The new law brought major changes in Independent
Living funding and regulations. The highlights are:
· $140 million capped entitlement which requires a 20% state match
· Allocation formula is based on number of children in foster care for the
most recent fiscal year with a minimum of $500,000 for every state.
· States may use the funds in “any manner that is reasonably calculated to
accomplish the purposes” of the program.
· Those eligible include foster children, without regard to their eligibility for

Title IV-E, who are likely to remain in foster care until age 18.
· States must use a portion of their funds for assistance and services for
former foster children age 18 to 21 who left foster care because they reached
age 18.
· States may use up to 30% of their program funds for room and board for
former foster children age 18 to 21 who left foster care because they reached
age 18.
· Optional Medicaid coverage for youth up to age 21 who were in foster care at
age 18. States may amend their Medicaid State Plan to cover this optional
group. States have flexibility in the extent of coverage including presumptive
eligibility.

In 2001, as part of the reauthorization of the Promoting Safe and Stable
Families program (Public Law 107-133), a new tuition voucher program
entitled, “Educational and Training Vouchers for Youths Aging Out of Foster
Care” was created to assist these youth in their educational needs. The law
amended section 477 of Title IV-E and provided an authorization of $60
million funding. The dollars are discretionary and congress must approve
funding each year. In FY 2009 the voucher program was funded at $45 million.
These funds are allotted to states under the same formula used to distribute
the general Chafee program. States use the funds for youth defined by the
program as eligible:
· Youth otherwise eligible for services under the State Chafee program
· Youth adopted from foster care after attaining age 16
· Youth participating in the voucher program on their 21st birthday until they
turn 23 years old, as long as they are enrolled in a post secondary education
or training program and are making progress toward completion of that
program

As a result of changes enacted by the Fostering Connections Act (PL 110-351)
new guidance and regulations will be issued in regard extending foster care to
age 21 including the definition of living independently in a supervised setting.
VI. Adoption Opportunities Program is in Title II of the CAPTA statute. Funds
are appropriated by Congress to help fund efforts to eliminate barriers to
adoptions and to help find permanent families for children in need of adoption.
In FY 2009 the program was funded at $26.3 million. The major goals of the
program include development of a national adoption information exchange
system, adoption training programs, post legal adoption services for families
and the funding of research that will help advance adoptions and address
barriers.

VII. Adoption Incentives Payments is funding awarded to the states based on
the level of increases in a state’s annual adoptions from the foster care system.
The incentive funding was created as part of the Adoption and Safe Families
Act adopted in 1997. The incentives were made a part of Title IV-E in that year
and reauthorized in 2003 and in 2008. States have a target number of
adoption from the foster care system they must exceed each year to receive a
bonus. The bonuses are awarded based on the increases in overall adoptions,
increases in the number of special needs adoptions and the number of
adoptions of older children. Older child adoptions are those children 9 or older
while the definition of special needs is drawn up by the state. The increased
emphasis on adopting older children was first included in 2003 and then
strengthened in 2008. States can receive up to $8000 per child if they increase
these older child adoptions. The 2008 reauthorization also included a new
base incentive of $1000 if a state exceeds a base rate in adoptions. This was
included to assist those states that may have increased the rate of adoptions
but their actual numbers have decreased because the number of children in
foster care has decreased. In FY 2009 the budget includes $36.5 million.

VIII. The Abandoned Infants Assistance Act The Abandoned Infants
Assistance (AIA) Program is designed to achieve safety, permanency, and wellbeing
for infants and children, who are abandoned or at-risk of abandonment
principally due to substance abuse and/or HIV, by providing them and their
families with comprehensive and coordinated services.
Under the AIA program, infants and children who are abandoned or at-risk of
abandonment are: (1) medically cleared from hospital settings, but board there
due to a lack of appropriate placement alternatives, commonly referred to as
“boarder babies”; (2) physically, emotionally, or intellectually deserted by their
parents, principally due to substance abuse and/or HIV; and/or 93) orphaned
because their parents are deceased from HIV/AIDS.
Comprehensive and coordinated services provided by the AIA programs
include, but are not limited to, the following broad categories: social;
psychological; developmental; educational; legal; medical; vocational; and
recreational. AIA programs provide services to children and families directly
and through coordination with other community agencies. There are presently
34 AIA programs in 18 states throughout the country. The programs have
served over 10,000 individuals, with documented improvements in the lives ofchildren and families and a dramatic reduction in the number of “boarder
babies” in these communities. In FY 2009 Congress appropriated $11.6 million.

IX. Temporary Assistance for Needy Families (TANF) is a capped state
entitlement block grant which provides states great flexibility to provide
assistance to needy families with children and was created with the passage of
the “Personal Responsibility and Work Opportunity Reconciliation Act of 1996.”
There is no state match required, but there is a MOE (Maintenance of Effort)
requirement. It replaced Aid to Families with Dependent Children (AFDC). As a
result the “Emergency Assistance” component of the old AFDC and its “openended”
entitlement status was eliminated. The funds expended on the EA
program were rolled into each state’s share of TANF. However, states that had
an EA program in their Title IV-A (AFDC) state plan prior to September 30,
1995 or at state option, August 21, 1996, are able to use the state’s TANF
funds for any of the purposes that were included in that state plan. In many
states TANF funds used for child welfare services rival the amount claimed for

Title IV- E. These states use TANF funds for non IV-E eligible foster care
maintenance payments and a range of reunification, early intervention and
secondary prevention services including, but not limited to, intensive in- home
services, parent aides, respite care and a variety of “wrap around” services. The
authorization for the TANF block grant was passed as part of the Deficit
Reduction Act of 2005 it expires in FY 2010.

X. Title XX Social Service Block Grant is authorized by Congress as an
entitlement to the states. At times Congress has changed funding through the
appropriations process. The funds are administered by the state social service
agency and there is great flexibility in how the funds can be expended. Most
states use these funds for a combination of childcare, child welfare and
services to the elderly. The amount of money granted to each state is based on
the state’s proportional population. There are minimal reporting requirements.
A total of $2.38 billion was provided nationally in FY 1996 but has been
reduced in successive years to a level of $1.7 billion by FY 2005. At the end of
2005 Congress approved a one-year increase of $550 million designated for
states effected by the hurricanes. The funds were a re-allocation of dollars
previously appropriated to the Federal Emergency Management Administration
(FEMA) final funding was $2.2 billion. SSBG continues to be funded at $1.7
billion.

XI. Title XIX – Medicaid is an open-ended entitlement program that provides
medical services to Medicaid eligible children under certain conditions. Each
state’s Medicaid program is different and unique to that state. The Federal
Medical Assistance Percentage (FMAP), which is established at the beginning of
each federal fiscal year, is based primarily on the state’s per capita income and
ranges between 50% and 83%. In FY 2010 Medicaid is projected to spend
$289.7 billion for patients of all ages and eligibility
.Within the federal regulations, states have great flexibility in how they
administer Medicaid. Some Medicaid services are mandated while others are
optional. States vary greatly in which services they select under the optional
category. Title IV-E eligible foster care, kinship-guardianship and all special
needs adoption children have categorical eligibility for Medicaid. In addition,
states usually cover non Title IV-E eligible foster children and children from low
income families under the “medically needy option.” In those states, almost all
foster children are Medicaid eligible.
Mandated Medicaid services include hospital, pharmaceutical services, nursing
home and clinic services. In addition there are a variety of 11 “optional
services” that states may choose from to include in their Medicaid program.
Medicaid eligible children may receive these services when prescribed by a
“practitioner of the healing arts.” Usually this is a physician or a clinical
psychologist, but in some states may also include a social worker or other
specified professional.
EPSDT (Early, Periodic, Screening, Diagnosis and Treatment) services must be
included in every state plan. If the screening team prescribes a Medicaid
reimbursable service that is not included in the state’s Medicaid plan, the
prescribed service is still eligible for federal Medicaid reimbursement for that
particular Medicaid eligible client. The Deficit Reduction Act of 2005 allowed
new options to states in how this is implemented.
Two of the “optional services” that some state child welfare agencies have
negotiated with the state’s Medicaid Division to provide are “Targeted Case
Management” and “rehabilitation services.”
Under Medicaid, “Case Management Services” mean services which assist
individuals eligible under the plan in gaining access to needed medical, social,
educational, and other services. “Targeted Case Management” allows the state
to provide case management to a “targeted” group such as child welfare, foster
care, adoption or mental health. The state Medicaid plan must address: “target
group, areas of the state in which services will be provided, comparability of
services, definition of services, qualifications of providers, free choice of
providers and assurance that payment for case management services under the
plan does not duplicate payments made to public agencies or private entities
under other program authorities for this same purpose.”
The federal definition of rehabilitation service is, “rehabilitation service, except
as otherwise provided under this subpart, includes any medical or remedial
services recommended by a physician or other licensed practitioner of the
healing arts within the scope of his practice under the state law, for maximum
reduction for physical or mental disability or restoration of a recipient to his
best possible functional level.” This very broad definition provides many
opportunities for children served in the public and private child welfare system.
Examples of Medicaid reimbursable rehabilitation services that relate to child
welfare currently being funded in one or more states include: residential
treatment centers, therapeutic family foster care and intensive in-home
services.
Federal Funds Under From Other Agencies
There are a number of other funds that may be made available to serve the
population of children served by the child welfare agency. This is because many
of the children or families have needs that cut across more than one problem
area, agency or funding source. Many of the services may be either provided by
the public agency or purchased from a private agency. Some examples of these
include:
· CCDBG (Child Care Development Block Grant)
· Head Start
· Mental Health Service Block Grant
· Substance Abuse Block Grant
· OJJDP (Office of Juvenile Justice and Delinquency Prevention)
· Children’s Justice Act
· Individuals with Disabilities in Education Act (IDEA) part C Infants and
Families
· Title V of the Social Security Act (Maternal and Child Health)
· Section 426 Grants (Universities for training in child welfare)In addition to
these funds, other non-governmental resources in public and private child
welfare include:
· Private foundations – a number of private foundations have specific and
special concerns regarding the provision of child welfare services. Some of
these foundations have committed significant funds to public, tribal and
private non-profit agencies that are interested in specific “reform” issues.
· United Way
· Private individual donations
Conclusion
The above are the primary funding sources for public child welfare. It is
important for managers of public, tribal and private child welfare agencies to be
aware of them so that federal funds can be accessed and needed services
delivered to vulnerable children and their families.
(CWLA)Child Welfare League of America