The 2023-24 Budget: Analysis of Child Welfare Proposals and Implementation Updates

2023-24 BUDGET The 2023-24 Budget: Analysis of Child Welfare Proposals and Implementation Updates GABRIEL PETEK | LEGISLATIVE ANALYST | FEBRUARY 2023 SUMMARY Governor’s Budget Proposal for Child Welfare Reflects Net Decrease. The 2023-24 Governor’s Budget includes around $920 million General Fund ($9.3 billion total funds) for child welfare programs under the Department of Social Services (DSS). This represents a net decrease of around $420 million General Fund ($270 million total funds) from the 2022-23 revised budget. The net decrease largely reflects the expiration of one-time and limited-term augmentations—most of which include multi-year spending authority—that had been provided for child welfare programs by recent budgets. Under the 2023-24 proposal, implementation would continue for these recently-funded programs, as well as for major ongoing child welfare programs, such as Continuum of Care Reform and Family First Prevention Services Act. Includes One Major New Spending Proposal. While overall child welfare funding is proposed to decrease, the Governor’s Budget includes one significant new spending proposal. As part of the broader California Behavioral Health Community-Based Continuum federal waiver demonstration project, the administration proposes $10.6 million General Fund in 2023-24 for increased child welfare workload costs under DSS beginning January 1, 2024. Prior to implementation, the federal government would need to approve the waiver request. DSS Has Taken Steps to Begin Implementation of Many New Child Welfare Programs Funded by Recent Budget Acts. DSS has received more than $1 billion General Fund to augment child welfare programs in recent years, comprising mostly one-time funds for new limited-term programs. For example, some of these major new programs include: building capacity and placement flexibilities for youth with complex care needs, increasing support for family finding and engagement, and developing prevention services. In most cases, DSS has provided guidance and allocations for these new programs within 6 to 12 months, although reaching full program implementation often takes additional time. Recommend Continuing Oversight and Seeking More Information Around Implementation of New Programs. To improve oversight of the many new child welfare programs, the Legislature could ask the department to provide more detailed anticipated timelines before implementation begins. In addition, the Legislature could direct the department to report on: why developing guidance and launching new programs requires the amount of time it does, what challenges have arisen and required additional time to address, what any unanticipated obstacles have been, and what programs are achieving in terms of impacts on youth and families. Ultimately, the Legislature could use this information to help determine whether the department has sufficient resources to undertake this many new programs simultaneously, as well as whether the new programs are meeting legislative expectations. www.lao.ca.gov 1 2023-24 BUDGET INTRODUCTION California’s children and family programs include including child welfare services (CWS) and foster an array of services to protect children from abuse care programs; (3) provides implementation and neglect and to keep families safely together updates on a number of programs that were when possible. This analysis: (1) provides program funded in the current and prior years; and (4) raises background; (2) outlines the Governor’s proposed questions and issues for the Legislature to consider. 2023-24 budget for children and family programs, PROGRAM BACKGROUND Child Welfare Programs and Services. 2011 Realignment. Until 2011-12, the state When children experience abuse or neglect, the General Fund and counties shared significant state provides a variety of services to protect portions of the nonfederal costs of administering children and strengthen families. The state CWS. In 2011, the state enacted legislation known provides prevention services—such as substance as 2011 realignment, which dedicated a portion of use disorder treatment and in-home parenting the state’s sales and use tax and vehicle license support—to families at risk of child removal to fee revenues to counties to administer child welfare help families remain together, if possible. When and foster care programs (along with some public children cannot remain safely in their homes, the safety, behavioral health, and adult protective state provides temporary out-of-home placements services programs). As a result of Proposition 30 through the foster care system, often while (2012), under 2011 realignment, counties either providing services to parents with the aim of safely are not responsible or only partially responsible reunifying children with their families. If children for CWS programmatic cost increases resulting are unable to return to their parents, the state from federal, state, and judicial policy changes. provides assistance to establish a permanent Proposition 30 establishes that counties only need placement for children, for example, through to implement new state policies that increase adoption or guardianship. California’s counties overall program costs to the extent that the state carry out children and family program activities for provides the funding for those policies. Counties the state, with funding from the federal and state are responsible, however, for all other increases in governments, along with local funds. CWS costs—for example, those associated with Federal Funding. When a family is affected by rising caseloads. Conversely, if overall CWS costs the child welfare or foster care system, and that fall, counties retain those savings. family meets federal eligibility standards based Continuum of Care Reform (CCR). Beginning in on income and other factors, states may claim 2012, the Legislature passed a series of legislation federal funds for part of the cost of providing care implementing CCR. This legislative package and services for the child and family. State and makes fundamental changes to the way the state local governments provide funding for the portion cares for youth in the foster care system. Namely, of costs not covered by federal funds, based on CCR aims to: (1) end long-term congregate care cost-sharing proportions determined by the federal placements; (2) increase reliance on home-based government. These federal funds are provided family placements; (3) improve access to pursuant to Title IV-E (related to foster care) and supportive services regardless of the kind of Title IV-B (related to child welfare) of the Social foster care placement a child is in; and (4) utilize Security Act. universal child and family assessments to improve placement, service, and payment rate decisions. 2 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET Under 2011 realignment, the state pays for • Congregate Care Placements. Foster the net costs of CCR, which include up-front youth with intensive behavioral health implementation costs. While not a primary goal, the needs preventing them from being placed Legislature enacted CCR with the expectation that safely or stably with a resource family may reforms eventually would lead to overall savings to be placed in a Short-Term Residential the foster care system, resulting in CCR ultimately Therapeutic Program (STRTP). These becoming cost neutral to the state. (We note that facilities provide specialty behavioral health CCR is a multiyear effort—with implementation of services and 24-hour supervision. STRTP the various components of the reform package placements are designed to be short term, beginning at different times over several years— with the goal of providing the needed care and the state continues to work toward full and services to transition youth safely to implementation in the current year.) resource families. Pursuant to new federal Extended Foster Care (EFC). At around the requirements—specifically the Family First same time as 2011 realignment, the state also Prevention Services Act (FFPSA), described implemented the California Fostering Connections more below—STRTPs must meet new to Success Act (Chapter 559 of 2010 [AB 12, Beall]), federal criteria to continue receiving Title which extended foster care services and supports IV-E funding for federally eligible youth. to youth from age 18 up to age 21, beginning in In addition, STRTP placements must be 2012. To be eligible, a youth must have a foster care approved by a “Qualified Individual” (QI) such order in effect on their 18th birthday, must opt in to as a mental health professional. receive EFC benefits, and must meet certain criteria • Independent and Transitional Placements (such as pursuing higher education or work training) for Older Youth. Older, relatively more while in EFC. Youth participating in EFC are known self-sufficient youth and NMDs may be as non-minor dependents (NMDs). In addition to placed in supervised independent living case management services, NMDs receive support placements (SILPs) or transitional housing for independent or transitional housing. placements. SILPs are independent settings, Foster Placement Types. As described above, such as apartments or shared residences, when children cannot remain safely in their homes, where NMDs may live independently and they may be removed and placed into foster care. continue to receive monthly foster care Counties rely on various placement types for foster payments. Transitional housing placements youth. Pursuant to CCR, a Child and Family Team provide foster youth ages 16 to 21 supervised (CFT) provides input to help determine the most housing as well as supportive services, such appropriate placement for each youth, based on as counseling and employment services, the youth’s socio-emotional and behavioral health that are designed to help foster youth needs and other criteria. Placement types include: achieve independence. • Placements With Resource Families. Total Foster Care Placements Have For most foster youth, the preferred placement Remained Relatively Stable, With Shifts type is in a home with a resource family. in Placement Types. Over the past decade, A resource family may be a relative (either the number of youth in foster care has ranged a noncustodial parent, other relative, or from around 55,000 to 60,000 at any point in nonrelative extended family member), a foster time. While the total number of placements has family approved by the county, or a foster remained relatively stable, the predominance of family approved by a private foster family various placement types has shifted over time. agency (FFA). FFA-approved foster families In particular, congregate care placements have receive additional supports through the decreased in line with the goals of CCR, while FFA and therefore may care for youth with independent placements for older youth have higher-level physical, mental, or behavioral increased since the implementation of EFC. health needs. www.lao.ca.gov 3 2023-24 BUDGET Figure 1 illustrates changes in the Figure 1 proportions of foster placement types over time. Foster Care Placement Types Foster Youth Are Percentage of Youth in Foster Care, 2010-2022 Disproportionately Low Income, Black, and Native American. 100% A broad body of research has 90 found that families impacted 80 by child protective services are 70 disproportionately poor and overrepresented by certain racial 60 groups, and are often single-parent 50 households living in low-income 40 communities. In California, Black Other 30 Independent and transitional placements for older youth and Native American youth in Congregate care placements 20 particular are overrepresented Placements with nonrelative resource families Placements with resource families who are relatives, 10 in the foster care system relative nonrelative extended family members, or guardians to their respective shares of 2010 2012 2014 2016 2018 2020 2022 the state’s youth population. Notes: As illustrated in Figure 2, the Data: Child Welfare Services/Case Management System 2022 Quarter 3 Extract, retrieved January 21, 2023 from California Child Welfare Indicators Project website. proportion of Black and Native American youth in foster care Data reflects point-in-time count of youth in care for October 1 of each year shown. is around four times larger than Data reflects child welfare placements; probation placements not included. their proportion of the population Other placement types include pre-adoption placements and trial home visits, youth in shelters, youth who have runaway or are missing, and other placements. in California overall. While the information displayed in Figure 2 is point in time, significant disproportionalities have persisted Figure 2 for many years. (The figure displays aggregated state-level Racial Disproportionalities in Foster Care data; disproportionalities differ Proportion of Youth in Population Compared to in Foster Care across counties.) FFPSA. Historically, one of 60% the main federal funding streams Proportion of California's Populationa available for foster care—Title 50 Proportion of In-Care Totalb IV-E—has not been available for 40 states to use on services that may prevent foster care placement in 30 the first place. Instead, the use of Title IV-E funds has been restricted 20 to support youth and families only after a youth has been placed 10 in foster care. Passed as part of the 2018 Bipartisan Budget Black White Hispanic Asian/Pacific Islander Native American Act, FFPSA expands allowable a As of July 1, 2022. Data from Department of Finance Demographic Projections, retrieved January 21, 2023. uses of federal Title IV-E funds to Includes youth ages 0 through 20, inclusive. include services to help prevent b Child welfare in care count from California Child Welfare Indicators Project as of July 1, 2022. children and families from entering Child Welfare Services/Case Management System 2022 Quarter 3 Extract, retrieved January 23, 2023. 4 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET (or re-entering) the foster care system. Specifically, The law is divided into several parts; Part I (which FFPSA allows states to claim Title IV-E funds for is optional and related to prevention services) and mental health and substance abuse prevention Part IV (which is required and related to congregate and treatment services, in-home parent skill-based care placements) have the most significant impacts programs, and kinship navigator services once for California. States were required to implement states meet certain conditions. FFPSA additionally Part IV by October 1, 2021 in order to prevent the makes other changes to policy and practice to loss of federal funds for congregate care. States ensure the appropriateness of all congregate may not implement Part I until they come into care placements, reduce long-term congregate compliance with Part IV. care stays, and facilitate stable transitions to home-based placements. OVERVIEW OF GOVERNOR’S BUDGET Proposed Spending in 2023-24 Decreases emergency response is proposed to end in the Compared to 2022-23, Primarily Due to current year (although expenditure authority will Expiration of One-Time and Limited-Term continue for a few more years). A more detailed Funding. As shown in Figure 3, total funding for accounting of the program changes resulting in the child welfare is proposed to decrease by more than net year-over-year decrease is laid out in Figure 4 $400 million General Fund ($270 million total funds) on pages 6 and 7, and the one new child welfare from the current year, 2022-23, to the budget year, discretionary proposal is described more below. 2023-24. This net change is the result of a new Governor’s Budget Includes One Significant discretionary proposal ($10.6 million General Fund New Discretionary Proposal for Child Welfare. to help facilitate activities proposed as part of a The Governor’s budget proposes $314 million federal Medicaid waiver demonstration project) and General Fund ($6.1 billion total funds) for the some automatic programmatic increases—primarily Department of Health Care Services (DHCS) annual cost-of-living and caseload adjustments, and DSS over five years to fund the California estimated growth in county spending as a result of Behavioral Health Community-Based Continuum realignment growth, as well as some small funding Demonstration (CalBH-CBC), effective augmentations to implement new legislation—which January 1, 2024. A component of the ongoing are more than offset by larger spending decreases California Advancing and Innovating Medi-Cal due to the expiration of one-time/limited-term initiative, one goal of the proposed CalBH-CBC program augmentations. For example, funding is to deliver early interventions to reach children for the previously authorized Excellence in Family and families to help prevent entry into (or further Finding block grant program, Bringing Families involvement with) the child welfare system. Home program augmentation, and increase in Figure 3 Changes in Local Assistance Funding for Child Welfare Includes Child Welfare Services, Foster Care, AAP, KinGAP, and ARC (In Millions) Total Federal State County Reimbursement 2023-24 Governor’s Budget proposal $9,296 $3,168 $918 $4,995 $215 2022-23 revised budget 9,566 3,307 1,338 4,709 213 Change From 2022-23 to 2023-24 -$271 -$139 -$420 $286 $2 Note: Does not include Child Welfare Services automation. AAP = Adoption Assistance Program; KinGAP = Kinship Guardianship Assistance Payment; and ARC = Approved Relative Caregiver. www.lao.ca.gov 5 2023-24 BUDGET Figure 4 Drivers of Overall Child Welfare Net Spending Decrease (In Millions) Total Funds General Fund Change From Change from 2022-23 (Revised) 2022-23 (Revised) Item to 2023-24 to 2023-24 Description CalBH-CBC $14.0 $11.0 This amount reflects child welfare-specific costs included in the Demonstration proposed demonstration project. This initial funding amount is for child welfare social worker workload to participate in CFT meetings for Family Maintenance cases. Other costs are budgeted under DHCS. Net changes in CCR 14.0 8.0 The net increase in CCR costs reflects increases in the HBFC costs rate and PPA, partially offset by decreases in CFTs, RFA backlog, and other program areas. See CCR table for more detail regarding these changes. SMHS 3.2 2.6 Costs for additional social worker time to fulfill documentation documentation and notification requirements when foster youth receiving and notification to SMHS are placed out-of-county, as required by Chapter 402 support continuity of 2022 (AB 1051, Bennett). Costs also include automation for of care (AB 1051) data collection on foster youth receiving SMHS. Other costs are budgeted under DHCS. Case management 1.3 1.3 Costs for additional social worker time to conduct case activities for management activities for youth placed in psychiatric psychiatric residential treatment facilities, as required by Chapter 589 of residential 2022 (AB 2317, Ramos). treatment facilities (AB 2317) Juvenile records 1.1 0.8 Costs for additional social worker time to prepare juvenile case access (SB 1071) files for certain administrative hearings, as required by Chapter 613 of 2022 (SB 1071, Umberg). Family finding and 1.1 0.8 Costs for additional social worker time to investigate the names investigations and locations of any alleged parents of children entering foster (SB 384) care, as required by Chapter 811 of 2022 (SB 384, Wiener). Costs also include one-time county child welfare and probation department reporting costs. Documentation of 0.2 0.1 Costs for additional social worker time to provide sufficient family reunification documentation during applicable status review hearings that services FR services were provided or offered, as required by (AB 2866) Chapter 165 of 2022 (AB 2866, Cunningham). Excellence in -308.0 -150.0 One-time grants in 2022-23, expendable over five years, to local Family Finding child welfare agencies for family finding, engagement, and and Engagement support activities. Participating counties are required to provide block grants matching funds equal to one-half of the state funds. COVID-19 -111.0 — During the public health emergency, the federal government has temporary eFMAP been providing a 6.2 percent increase in the federal match rate (referred to as eFMAP). The eFMAP will begin to phase out April 1, 2023, and will drop to 0 as of January 1, 2024. Child welfare -100.0 -100.0 2022-23 Budget Act included $200 million in 2022-23 and $100 stabilization million in 2023-24 ($300 million total over two years). funding for Los Angeles County Bringing Families -93.0 -93.0 Limited-term augmentation of $92.5 million provided in 2021-22 Home program and 2022-23 ($185 million total over two years). augmentation (Continued) 6 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET Total Funds General Fund Change From Change from 2022-23 (Revised) 2022-23 (Revised) Item to 2023-24 to 2023-24 Description Increase in -68.0 -50.0 Limited-term augmentation of $50 million General Fund provided emergency in 2021-22 and 2022-23 ($100 million total over two years), to response social help local child welfare agencies respond to the public health worker funding emergency. Child abuse -43.0 — One-time augmentation provided in 2022-23 for various federal prevention child welfare grant programs. federal grants augmentation Minor victims of -25.0 -25.0 One-time augmentation in 2022-23, expendable over three commercial years, to support placement and services for youth who sexual exploitation have been impacted by human trafficking, and to develop a specialized training curriculum for child welfare staff and other stakeholders who interact with these youth. STRTP provider -10.0 -10.0 Limited-term support in 2021-22 and 2022-23 for STRTPs that IMD transition would be classified as IMDs, to assist them with transitioning support program models in order to retain federal funding eligibility for SMHS. Additional funding is budgeted under DHCS. Reporting costs for -7.0 -5.0 One-time funding in 2022-23 for county manual data collection removing barriers as required by Chapter 687 of 2021 (SB 354, Skinner) to to placements compile and submit data on criminal records exemptions and with relatives denials for relative caregivers. (SB 354) Child welfare -7.0 -7.0 Limited-term funding in 2021-22 and 2022-23 for child welfare training additional training additional support. support RFA backlog -6.0 -4.0 One-time funding in 2022-23 to help counties address the RFA resources backlog by allowing counties to pay overtime for existing staff to expedite RFA application review. California Parent -5.0 -5.0 One-time funding in 2022-23, expendable over three years, to and Youth continue providing a support helpline for children and families Helpline who may be at risk of involvement with child welfare or entry to foster care. The helpline was initially funded as a pandemic emergency response initiative. Foster Youth -1.0 -1.0 One-time funding in 2022-23 for case management and services Independence to increase utilization of federal housing choice vouchers for pilot program former foster youth up to age 25, who are or are at risk of experiencing homelessness. Tribal technical -0.1 -0.1 One-time funding in 2022-23 to support tribal engagement with assistance counties to develop tribal consultation protocols, as required (AB 2083) by Chapter 815 of 2018 (AB 2083, Cooley). Other Net Changes 479.0 6.0 This amount reflects the net effect of other changes across programs, including caseload changes, CNI COLAs, and estimated increases in county expenditures under 2011 realignment. Totals -$271.0 -$420.0 CalBH-CBC = California Behavioral Health Community-Based Continuum; CFT = Child and Family Team; DHCS = Department of Health Care Services; CCR = Continuum of Care Reform; HBFC = Home-Based Family Care; PPA = Placement Prior to Approval; RFA = Resource Family Approval; SMHS = specialty mental health services; FR = family reunification; eFMAP = Enhanced Federal Medical Assistance Percentages; STRTP = Short-Term Residential Therapeutic Program; IMDs = Institutions for Mental Disease; CNI = California Necessities Index; and COLA = cost-of-living adjustment. www.lao.ca.gov 7 2023-24 BUDGET In implementing CalBH-CBC, the administration Comments on Governor’s Budget proposes to request a federal waiver to establish Specific Objectives of Child Welfare new preventative Medi-Cal benefits, such as CalBH-CBC Funds Are Unclear. Certainly, the housing vouchers, joint DHCS/DSS home administration’s stated goal of the CalBH-CBC visiting programs, and stipends for youth child welfare funding—to deliver early interventions extracurricular activities. to reach children and families to help prevent Specifically, for child welfare, the proposal entry into or deepened involvement with the child includes $10.6 million General Fund ($14.5 million welfare system—is compelling. However, the total funds) in 2023-24 for DSS to fund increased specific anticipated outcomes to be achieved child welfare social worker workload for through the proposed funding amount is unclear. participation in CFTs for certain families at risk of The Legislature could consider asking for more child removal. At full implementation, CalBH-CBC program detail—including the likelihood that the funding under DSS would increase to around federal government would approve the waiver $33 million General Fund ($45 million total funds) request in time for implementation to begin and is proposed to include case management January 1, 2024, and specific objectives and services to help facilitate home visiting programs outcome targets of the child welfare funding (jointly administered by DSS and DHCS) and foster component—before deciding whether to approve, youth participation in extracurricular activities. modify, or reject the Governor’s proposal. For a more detailed overview and comments on the administration’s overall CalBH-CBC proposal, refer to our Behavioral Health budget analysis. IMPLEMENTATION UPDATES In this section, we describe progress that DSS CCR is making progress toward achieving its has made in implementing various programs overarching goals. Below, we provide updates funded in the current and prior years. We begin by on some CCR components of recent legislative describing the implementation of the major, ongoing interest, and Figure 5 displays the net costs of CCR initiatives that have been underway for several budgeted in 2023-24, relative to those in 2022-23. years and conclude with the newer, more recently (For a more extensive overview of these and funded efforts. additional CCR components, refer to our previous budget analysis.) Long-Term Implementation • Resource Family Approval (RFA) First, we provide updates on two broad-reaching Processing Times. To become eligible to and multifaceted programs: CCR and FFPSA. provide care to foster youth and receive foster As described in the program background section, care maintenance payments, households implementation for CCR has been ongoing for must complete the RFA process. The target nearly ten years. FFPSA implementation began for completing RFA is 90 days, but the state in California in 2021-22 (although initial planning has yet to reach that target as an average began earlier); full implementation—particularly of or median processing time. As of November prevention services components—likely will take 2022, median approval time was 119 days several years. (107 days for families with Placement Prior CCR. The state continues to work toward to Approval). This is a slight improvement achieving all of its CCR goals in the current year. from the third quarter of 2021, when median Several components of CCR have been fully approval time was 120 days (109 days for implemented for a few years now and, overall, families with Placement Prior to Approval). 8 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET The 2022-23 budget included both one-time Specifically, four workgroups were convened and ongoing augmentations to help counties comprising relevant stakeholders to consider process resource family applications in rates for: resource families, foster family a timelier manner. One-time funding of agencies, intensive services foster care (ISFC), $4.4 million General Fund is being used in the and STRTPs. The workgroup participants current year to pay social worker overtime reached consensus around a number of to help address the backlog, and ongoing key findings (that reflect the perspectives of funding of $50 million General Fund beginning workgroup participants and not necessarily in the current year will be allocated to counties that of DSS), including: to improve caregiver approval time lines » The current rates are inadequate across all permanently. At the time of publication, it placement settings. Rates aim to support is our understanding that DSS had not yet care and supervision but do not address released any guidance or the specific county the need for services/supports. allocations for the $50 million augmentation. » Rates should follow the child and not the • Foster Care Rates Development. placement type; assessment should identify The 2022-23 budget package extended the child’s level of need, not where the child the date through which interim foster care should be placed. rates—developed as part of the initial CCR DSS is now working to develop a proposal for implementation—shall remain operative. the permanent rate structure to be implemented These rates are now in effect through by January 1, 2025 as required by statute. When December 31, 2024, with final rates expected DSS will share a draft of this proposal with the to be implemented by January 1, 2025. Legislature is not yet known. DSS convened a number of stakeholder workgroups in the fall of 2022 to provide input into the permanent rate structure. Figure 5 Changes in CCR Budgeted Costs (In Millions) 2023-24 Governor’s 2022-23 Revised Budget Proposal Change Total Nonfederal Total Nonfederal Total Nonfederal HBFC rate $271.3 $165.8 $294.3 $180.2 $22.9 $14.4 PPA (statutory change July 1, 2022) 14.1 14.1 15.3 15.3 1.2 1.2 CANS (child welfare workload only) 4.1 4.1 4.0 2.9 -0.1 -1.1 CCR Reconciliation for 2019-20 — — — — — — CCR—contracts 7.7 5.6 7.6 5.6 -0.1 — Second Level Administrative Review 0.2 0.1 0.2 0.1 — — CFTs 95.3 69.6 91.9 67.6 -3.4 -2.0 RFA (funding for Probation Departments) 5.8 4.2 5.8 4.3 — — RFA backlog (one-time overtime funding for 6.1 4.4 — — -6.1 -4.4 county social workers) Caregiver Approvala (ongoing augmentation 50.0 50.0 50.0 50.0 — — to counties for RFA) LOC Protocol Tool 10.0 7.3 9.9 7.3 -0.1 — SAWS 0.5 0.2 — — -0.5 -0.2 Totals $465.0 $325.5 $479.0 $333.3 $14.0 $7.9 a The administration does not include the Caregiver Approval premise as part of its CCR total. HBFC = Home-Based Family Care; PPA = Placement Prior to Approval; CANS = Child and Adolescent Needs and Strengths; CCR = Continuum of Care Reform; CFT = Child and Family Team; RFA = Resource Family Approval; LOC = level of care; and SAWS = Statewide Automated Welfare System. www.lao.ca.gov 9 2023-24 BUDGET • CFT Meetings. CFT meetings involve • Potential of Using CANS Assessment the youth, family members, and various for LOC Determinations. Stakeholders professionals (for example, social workers, have raised various concerns with the mental health professionals, and QIs) and LOC Protocol Tool since its implementation community partners (for example, teachers) and have suggested that a CANS assessment for the purpose of informing case plan module could be developed and used for and placement goals and strategies to rate determinations in lieu of a separate tool. achieve them. Since 2017, guidance from DSS is in the early stages of working with DSS has indicated that all foster youth and the Praed Foundation to develop a potential NMDs should receive CFT meetings within Decision Support Model using CANS data 60 days of entering care and periodically that may be used for LOC determinations. thereafter. In the current year, nearly all youth Concurrently, DSS is providing technical in foster care are receiving at least one CFT assistance and support to counties to ensure meeting at some point during their placement. CANS assessments are being conducted • Child and Adolescent Needs and Strengths in a timely manner and with fidelity, in the (CANS) Assessments. In 2018, DSS selected context of CFTs. Additionally, DSS is working the CANS assessment tool as the functional to build functionality of CANS automation tool to be used in CFT meetings. CFTs began into the new child welfare information implementing the tool in 2019—with child technology system currently being developed welfare and behavioral health staff jointly (CWS-California Automated Response and responsible for completing all required CANS Engagement System [CWS-CARES]) to data. (The CANS tool also is used by the QI to support a CANS module potentially being meet FFPSA congregate care assessment used as the tool for LOC determinations. requirements, as of October 1, 2021.) FFPSA. The state has continued to make Guidance from DSS required child welfare progress toward implementing FFPSA in agencies to begin entering CANS data into an the current year. Below, we describe some automated system by July 1, 2021. However, key components that have yet to be fully when CANS assessments are completed by implemented. (For a more extensive overview of behavioral health staff and entered into the these and additional FFPSA components, refer behavioral health reporting system, that data to our previous analysis.) In addition, 2022-23 is not accessible through the child welfare supplemental reporting language requires DSS to system. Therefore, all CANS data is not provide bi-annual reports to the Legislature on the currently available through a single system. progress of FFPSA implementation. The first report • Level of Care (LOC) Determinations. was due to the Legislature by February 1, 2023. Beginning April 1, 2021, all home-based family DSS has needed additional time to prepare the care placements with resource families were required data and now intends to provide the eligible to receive the basic rate or LOC rates report in April 2023. 2 through 4 and ISFC, based on assessed • State Prevention Plan. To opt in to Part I need using the LOC Protocol Tool. As of of FFPSA, states must submit a five-year July 2022, more than 14,000 placements Title IV-E prevention plan (state plan) to had received an LOC assessment, and the be approved by the federal Administration proportion of those assessed as LOC 2 of Children and Families (ACF). A state through 4 or ISFC was 53 percent. This is a plan must detail the state’s selection of moderate increase from a year prior, when evidence-based prevention services; plans fewer than 10,000 placements had received for identifying populations at imminent risk an LOC assessment and the proportion of of entry or reentry into foster care (who those receiving a rate other than the basic rate may be assessed as candidates); and the was 31 percent. approach that will be used to comply with 10 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET federal evaluation, model fidelity, activity • Title IV-E Claiming for EBPs. In order to and outcome tracking and reporting, and begin claiming Title IV-E funds for EBPs safety and risk monitoring requirements. included in the state prevention plan, DSS submitted the state plan to ACF in the state must be able to meet federal August 2021 and received significant requirements around tracking per-child feedback and questions from ACF. In prevention spending. Such tracking is beyond response, DSS submitted an updated state California’s child welfare data system’s plan for federal approval in November 2022. current capacity, but will be incorporated into This resubmission included several the forthcoming CWS-CARES. We note that, updates around California’s selection of based on historical progress of CWS-CARES evidence-based practices (EBPs), eligibility development, this solution could take and candidacy, target population for EBPs, significant time—potentially several years— implementation and continuous monitoring to develop. of EBPs, oversight of monitoring child • Transition Support for STRTPs With safety, child welfare workforce training and 16+ Beds. In defining criteria for Qualified support, and more. The complete state plan Residential Treatment Programs (QRTPs), submitted to ACF in November can be viewed the federal Centers for Medicare and here, and a summary of changes from the Medicaid Services (CMS) established that August 2021 submission to the November Institutions for Mental Disease (IMDs) cannot 2022 submission can be found here. At the be QRTPs and therefore would be ineligible time of publication of this budget analysis, for federal Medicaid financial participation. California’s state plan has not yet been In particular, larger behavioral health approved by ACF. facilities (those with 16 or more beds) would • State Funding for Prevention Services. be defined as IMDs. In July 2020, DHCS The 2021-22 Budget Act included requested that CMS exempt California’s $222 million General Fund for one-time block STRTPs from being considered IMDs. grants to assist counties with developing CMS rejected this request and indicated that and implementing comprehensive prevention each STRTP must be reviewed individually plans (CPPs), including specific EBPs that to determine whether it should be deemed are newly eligible for Title IV-E federal an IMD. DHCS was required to make these financial participation and included in the individual determinations by December 2022. state prevention plan, described above. To support facilities that would otherwise All 58 counties have expressed their intent have been determined to be IMDs (those to DSS to opt in to receive block grant with 16+ beds) the 2021-22 and 2022-23 dollars and are required to submit their budgets provided around $10 million in CPPs to DSS by January 31, 2023. Prior to each year to help those facilities transition submitting their plans, counties also were their program model. Thirteen STRTPs in required to complete capacity and readiness total received transition funds. Of those, assessments and asset mapping and needs 12 facilities (with total capacity of 238 beds) assessments to guide selection of Title have successfully transitioned their program IV-E-eligible EBPs and other prevention models, while one facility (25 beds) ultimately strategies. DSS has been providing technical has chosen not to transition. Two additional assistance to counties as they prepare facilities (157 beds) opted not to receive their CPPs. The department anticipates transition funds. DSS and DHCS are in reviewing CPPs and disbursing grants in the communication about the plan for the three coming months. non-transitioned providers. www.lao.ca.gov 11 2023-24 BUDGET Implementation of Recently Improving Services for Youth With Complex Funded Programs Care Needs. Recent budgets have included significant augmentations to increase county Next, we provide implementation updates on capacity, placement and program options, the numerous initiatives that have been newly and funding flexibilities for youth with complex created and/or received significant funding behavioral health and other care needs. In part, augmentations in 2021-22 and 2022-23. Figure 6 recent augmentations also aim to ensure youth summarizes the current implementation status with complex needs can be served effectively of these programs and we provide more detailed within California to eliminate the need for updates below. out-of-state congregate care placements. Figure 6 Summary of Implementation Status of New Programs New Augmentations Provided in 2021-22 and 2022-23 (State General Fund) Implementation Program Funding Status Child-Specific Funding Allowancesa $18.1 million ongoing beginning in 2021-22 █ █ █ █ █ █ █ █ █ █ █ █ █ █ County Capacity Buildinga $43.2 million one-time in 2021-22, expendable for 5 years █ █ █ █ █ █ ██ █ █ Children’s Crisis Continuum Pilota $60 million one-time in 2021-22, expendable for 5 years █ █ █ █ █ █ Family Finding and Engagement Block Grantsb $150 million one-time in 2022-23, expendable for 5 years █ █ █ █ █ █ ██ █ █ Center for Excellenceb $750,000 ongoing beginning in 2022-23 █ █ █ █ █ █ Flexible Fundsb $50 million one-time in 2022-23 and again in 2023-24, █ █ █ █ █ █ expendable for 3 years Emergency Response Augmentation $50 million one-time in 2021-22 and again in 2022-23, █ █ █ █ █ █ █ █ █ █ █ █ █ █ expendable for 4 years Minor Victims of Commercial Sexual Exploitation Pilot $25 million one-time in 2022-23, expendable for 4 years █ █ █ Projects Bringing Families Home Augmentation $92.5 million one-time in 2021-22 and again in 2022-23, █ █ █ █ █ █ █ █ █ █ █ █ █ █ expendable for 3 years Los Angeles County Child Welfare Stabilization $200 million one-time in 2022-23 and $100 million one- █ █ █ █ █ █ ██ █ █ time in 2023-24 Emergency Child Care Bridge Program Augmentation $35 million ongoing beginning in 2022-23 █ █ █ █ █ █ █ █ █ █ █ █ █ █ Legal Counsel for Tribes in Child Welfare Cases $4.1 million ongoing beginning in 2022-23 █ █ █ Support for Tribally Approved Homes $4.8 million ongoing beginning in 2022-23 █ █ █ Expanded Access to Social Security Income for Older $1 million ongoing beginning in 2022-23 █ █ █ Youth Parent and Youth Helpline Augmentation $4.7 million one-time in 2022-23, expendable for 3 years █ █ █ █ █ █ █ █ █ █ █ █ █ █ Foster Youth to Independence Housing Voucher Pilot $1 million one-time in 2022-23 █ █ █ █ █ █ █ █ █ █ █ █ █ █ Initial Planning and Preparation Phasec █ █ █ Partial Implementation: Guidance Has Gone Out█ █ █ █ █ █ Partial Implementation: Allocations Have Been Determined █ █ █ █ █ █ ██ █ █ Full Implementation Underwayd █ █ █ █ █ █ █ █ █ █ █ █ █ █ a These program elements are part of the complex care needs funding package. b These program elements are part of the support for home-based placements funding package. c “Initial planning and preparation phase” may include substantial progress toward implementation, such as stakeholder meetings and other significant work toward program launch. d “Full implementation underway” indicates all guidance and systems are in place for implementation. However, the program still may be underutilized, may not yet be achieving its intended impact, and/or may not necessarily be progressing in line with legislative expectations. Note: This information is point in time and reflects our best understanding at the time of publication. 12 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET Below, we provide updates on progress DSS wraparound and community-based and counties have made in implementing various treatment programs, to act as alternatives funding components. to congregate care placements. • Child-Specific Funding Allowances. » Contracting with highly specialized The 2021-22 Budget Act provided $18.1 million STRTPs for youth who otherwise might General Fund in 2021-22 and ongoing for have been placed in an out-of-state individual foster youth with complex needs congregate setting. on a case-by-case basis. All counties are As of October 2022, three counties had provided with an annual allocation, as submitted proposals to access this funding. determined by an allocation methodology DSS anticipates that additional counties will developed by DSS in partnership with the submit plans in the coming months, as the County Welfare Directors Association (CWDA) department has consulted with and provided and Chief Probation Officers of California technical assistance to several other counties. (CPOC). To access their allocations, counties • Children’s Crisis Continuum Pilot are required to complete and submit a Project. The 2021-22 Budget Act created child-specific funding template for each youth the Children’s Crisis Continuum Pilot Project, who benefits from the funds. The template an initiative to be jointly administered by DSS details the youth’s assessed needs related and DHCS, and provided $60 million General to behavioral health, permanency and family Fund to fund the pilot on a one-time basis, finding, and placement challenges, as well as with funds available for five years (through any extraordinary developmental or medical June 30, 2026). The aim of the pilot is to allow needs. As of October 2022, $4.5 million from counties to develop a robust, highly integrated 2021-22 funds and $3 million from 2022-23 continuum of services designed to serve foster funds had been approved for 111 requests. youth who are in crisis—addressing currently • County Capacity Building. The 2021-22 perceived gaps in the existing array of crisis Budget Act also provided $43.2 million response services. According to guidance General Fund one time to assist counties from the departments, the primary function of in the up-front costs of establishing a the pilot program will be to provide therapeutic high-quality continuum of care designed to interventions, specialized programming, support foster youth in the least restrictive and short-term crisis stabilization, and to setting possible. All counties are provided with ensure youth are able to transition seamlessly a total allocation and the funding is available between placement settings and health for five years (through June 30, 2026). To care programs as needed. DSS and DHCS access their allocations, counties are required developed a Request for Proposal (RFP) to submit proposals to DSS (proposals can process to solicit funding applications from be submitted yearly or on a one-time basis). counties; the departments released the Guidance from DSS indicates that potential RFP in July 2022 and proposals were due uses for the capacity building funding include: December 1, 2022. Eight counties have » Establishing specialized foster care models applied and DSS anticipates sending notice of such as ISFC. intent to award grants to awardees by the end of February 2023. » Funding therapeutic foster care, which is a specialty mental health service. Increasing Support for Home-Based » Providing intensive child-specific Placements. Recent budgets also have included recruitment, family finding, significant augmentations to help ensure as many and engagement. foster youth as possible can receive all needed » Developing specialized models of individualized supports in home-based settings, home-based care, such as high-fidelity thereby reducing reliance on congregate care. www.lao.ca.gov 13 2023-24 BUDGET Below, we provide updates on progress DSS and CFE will become operational March 1, 2023 counties have made in implementing two main and will conduct training and technical funding components. assistance for counties and tribes that opt into the family engagement block grant program, • Excellence in Family Finding, Engagement, described above. In preparing to launch CFE, and Support Block Grants. The 2022-23 DSS and UC Davis held initial peer learning Budget Act included $150 million one time sessions in October and November 2022, and in 2022-23, available for five years (through conducted a number of stakeholder meetings June 30, 2027), to fund block grants to in January and February 2023 to determine counties and tribes to supplement family what specific services and supports are most finding, engagement, and support activities. needed from CFE. As a result, CFE’s trainings Budget language established the program, and technical assistance will include: specifying that DSS shall: » Conducting evidence-based, » Develop the allocation methodology in organization-specific assessments of consultation with CWDA, CPOC, and tribes. quantitative and qualitative data related to » Make funds available by March 1, 2023. permanency outcomes and operations. » Establish procedures for program data » Strengthening trauma-informed collection and reporting to include specific permanency practices and programs. measures described in statute. » Developing workforce capacity around Statute also requires counties that elect to supporting permanency and family finding participate in the program to: and engagement. » Provide a match of local funds, equal to half » Providing guidance and research on of state funds provided. the latest high-fidelity, evidence-based » Hire (or contract for) family finding workers permanency and family finding and to be dedicated to the program full time. engagement models and practices. DSS released initial guidance and county » Providing peer-to-peer learning opportunities for counties, tribes, and allocations in February 2023. According providers to share and leverage best to the guidance, counties opting in to the practices and program sustainability. program will need to submit a written plan to DSS for approval and will be able to access » Fostering a culture of diversity and inclusion their allocations as of the date their plan is that actively invites the contribution and approved. Plans will be reviewed on a rolling participation of those who are most basis; counties may submit plans up until impacted and is representative of diverse June 30, 2025. Detailed claiming information identities and communities. will be made available via forthcoming • Flexible Funds. The 2022-23 Budget Act also fiscal guidance. included $50 million one time in 2022-23 (with • Center for Excellence in Family Finding. another $50 million in 2023-24), available for The 2022-23 budget package established the three years, to be allocated to counties and state Center for Excellence (CFE) in Family tribes to provide support for foster youth and Finding under DSS. Statute specifies that caregivers on a case-by-case basis. Budget the Center will provide training and technical language specified intended uses for the assistance to help increase and stabilize funds, including: placements with and connections to relatives » Respite care for foster caregivers. (including tribes). DSS has contracted with the University of California, Davis (UC Davis) to » Costs to facilitate participation in house CFE. According to the initial information enrichment activities. released by the department in February 2023, 14 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET » Supports to enable a youth’s connections or other incentives for emergency response staff. with relatives/tribe. Counties also will be required to submit annual plan » Costs to facilitate a youth’s placement with updates to DSS, with the first annual update due on a relative who otherwise would be unable June 30, 2023. According to initial county claims to take the placement due to housing data, more than $35 million had been claimed as of arrangement limitations. January 2023. Pilot Projects to Support Minor Victims In January 2023, DSS published guidance of Commercial Sexual Exploitation. The for counties (with additional guidance for 2022-23 budget provided $25 million one time, tribes forthcoming) specifying requirements available for four years, to administer contracts to access these funds, along with specific to community organizations for pilot programs claiming instructions. The department also to develop innovative placement continuums for released individual county allocations via youth who are, or at risk of becoming, victims of a separate fiscal letter. According to the commercial sexual exploitation. Funding for the guidance, counties intending to use their pilot programs is a one-time augmentation to allocations will be required to submit a letter California’s ongoing federally and state-funded of intent to DSS; letters will be accepted on a commercially sexually exploited children (CSEC) rolling based through July 1, 2024. Counties programs, which aim to prevent exploitation, that elect to use their allocations also must provide various services to victims and those at submit an annual reporting and evaluation risk, and provide specialty training on CSEC to form. The form, which DSS included in its social workers. Statute specifies that the pilot January guidance, will be used to collect programs must meet certain criteria, such as information about the outcomes achieved providing intensive trauma-informed services for as a direct result of the funding claimed. youth and their caregivers during recovery, peer If counties claim funds for the specific and survivor support groups, and specialized uses detailed in the budget language, no training for impacted youths’ caregivers. Statute prior notification or application is required. further requires DSS to provide to the Legislature However, if counties would like to use their two reports: one by January 1, 2024 identifying funding for a different purpose, they are gaps in the service array for youth who have required first to submit a request to DSS and been exploited, and the second by June 30, 2027 receive written authorization prior to claiming discussing the implementation and outcomes of the funds. the funded pilot programs. As of November 2022, Emergency Response Augmentation. DSS had determined the specific project areas The 2021-22 and 2022-23 budgets each provided and selected some of the organizations who will $50 million General Fund one time, expendable conduct the pilots: for four years, to enhance counties’ emergency response services. DSS released guidance for • $7 million for a Bay Area pilot by the the 2021-22 funds in December 2021, requiring Department on the Status of Women. counties to opt in by March 1, 2022. Additionally, • $7 million for a rural regional pilot by the DSS released guidance for the 2022-23 funds in Children’s Legacy Center. December 2022; counties will be required to opt in • $10 million for a Southern California pilot, for this second round of funding by March 1, 2023. which DSS intends to release for competitive Counties electing to receive funds are required bid in March 2023 (for a contract start date to develop and submit plans to DSS, which toward the end of the calendar year). the department must approve prior to counties • $1 million to fund training contracts. claiming funds. The guidance details examples of potential uses for the funds, such as hiring additional emergency response social workers, supervisors, or support staff, and increasing pay www.lao.ca.gov 15 2023-24 BUDGET Bringing Families Home (BFH) Program demonstration projects. (The federally approved Augmentation. BFH provides housing supports projects allowed participating counties to use their and services to families receiving child welfare Title IV-E dollars more flexibly. The projects ended services who are experiencing or at risk of in 2019, and from 2019 until 2021, the federal homelessness. The goal of BFH is to increase government provided step-down grants to help family reunification and prevent foster care counties transition.) To demonstrate these funds placement among participants in cases where supplement and do not supplant existing child housing instability prevents reunification or could welfare funding, statute specified Los Angeles lead to foster care placement. BFH is a County shall provide its 2011 realignment balances county/tribal optional program supported to DSS. Based on consultations with Los Angeles by General Fund resources and requiring a County, DSS determined that funds will be provided dollar-for-dollar local match. The 2021-22 and on a reimbursement basis. In January 2023, DSS 2022-23 budgets each provided an augmentation issued the specific allocations for child welfare of $92.5 million, expendable for three years, and probation along with templates that social and accompanying budget language exempted workers and probation officers will use to invoice participating counties and tribes from the match funds. In addition, DSS issued the templates requirement. Fifty-one counties and one tribe that county workers will use to report their are receiving 2021-22 funds. DSS reported that 2011 realignment balances. as of June 2022, BFH had served more than Emergency Child Care Bridge Augmentation. 3,900 families since the beginning of program The Emergency Child Care Bridge program aims to implementation. According to initial findings of stabilize foster placements by providing time-limited an ongoing program evaluation, of families who child care vouchers for resource families and by exited the program during the first two years providing child care navigators to assist eligible of funding, around half exited to permanent families in accessing long-term subsidized housing, 14 percent exited to community-provided child care. In addition, the program provides or temporary housing, and 3 percent were trauma-informed training to child care providers experiencing homelessness upon exit. (Remaining working with child welfare system-impacted exiting families left the program without a reported children. Prior to the current year, vouchers could destination.) Regarding the 2022-23 funds, DSS be provided for up to 12 months. The 2022-23 published allocations in December 2022, indicating budget provided an ongoing augmentation of 53 counties and one tribe have opted in. Further, $35 million to expand access to the program, DSS established a program update schedule and and accompanying language directed DSS is requiring participating counties and tribes to to develop guidance specifying that effective report on various program outcome measures. September 1, 2022, counties may extend vouchers The first report on 2021-22 funding outcomes was beyond 12 months based on a compelling reason. due to DSS January 20, 2023. Some counties Budget-related legislation also adjusted the have needed extensions to prepare the required eligibility criteria for vouchers to include parents data; DSS anticipates having key findings from the who work or attend school from home. DSS surveys in late February. published the required guidance on September Los Angeles County Child Welfare 26, 2022. While the funding augmentation for Stabilization. The 2022-23 budget included 2022-23 has been disbursed to counties, data $200 million (and an additional $100 million in on impacts of the expanded funds—for example, 2023-24) for Los Angeles County to increase how many families have received vouchers beyond funding for family reunification services, 12 months—are not yet know. prevention services implementation, and other Legal Counsel for Tribes in Child Welfare activities upon the expiration of federal funding Cases. The 2022-23 budget provided $4.1 million certainty grants, which had been provided to General Fund ongoing to provide resources for counties that participated in Title IV-E waiver legal counsel to represent tribes in Indian child 16 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET welfare dependency cases. In implementing this Parent and Youth Helpline Augmentation. new assistance component, DSS is in the process The California Parent and Youth Helpline provides of holding consultations with tribes, and intends phone, e-mail, video chat, and group support to to enter into memorandums of understanding children and their families who may be at risk of with participating tribes by May 1, 2023. All 109 involvement with the child welfare system or entry to of California’s federally recognized tribes are foster care. An emergency contract for the helpline potentially eligible; tribes wishing to receive was initially funded in response to the COVID-19 assistance will be required to submit a letter of pandemic; the current $3.7 million contract is interest by April 7, 2023. DSS anticipates around valid through June 30, 2023. The 2022-23 budget 70 to 80 tribes will opt in. Based on tribal interest, provided a $4.7 million General Fund one-time DSS plans to issue allocations to individual tribes augmentation to fund the helpline for an additional in June 2023. three years. From May 2020 through August 2022, Support for Tribally Approved Homes. the helpline received over 40,000 texts, e-mails, The 2022-23 budget provided $4.8 million General and other communications from youth and parents Fund ongoing to support tribes in increasing in total. In addition, nearly 300 parents participated recruitment and approval of tribally approved in online support groups. homes for the purpose of foster or adoptive Foster Youth to Independence (FYI) placement for Indian children, pursuant to the Housing Voucher Pilot. The federal FYI program, Indian Child Welfare Act. DSS intends to release administered by the U.S. Department of Housing initial draft guidance and consult with tribes and Urban Development (HUD), provides housing beginning in mid- to late February. Similar to the vouchers for former foster youth up to age 25 who process for implementing support for legal counsel are, or are at risk of, experiencing homelessness. for tribes, described above, tribes will be able to HUD implements the program through local public opt in and DSS anticipates providing allocations housing authorities who are required to coordinate by June 2023. with local child welfare agencies to provide recipient Expanded Access to Supplemental Security youth with supportive services (such as counseling Income (SSI) for Older Youth. The 2022-23 on lease agreements, basic life skills and money budget provided around $1 million General management training, and education and career Fund ongoing for increased county workload to preparation assistance) for 36 months while the facilitate access to federal SSI benefits for eligible youth receives the housing vouchers. To help fund older foster youth. Budget language described the required supportive services component of additional steps that county child welfare agencies FYI for one year and encourage more California must take around submitting initial applications, public housing authorities to opt in to administer reconsiderations, appeals, and redeterminations to the federal vouchers, DSS dedicated $4 million the federal Social Security Administration for youth in supplemental flexible federal Chafee dollars ages 16-18, and directs DSS to develop guidance (received for the federal fiscal year 2020-21), which to this effect. Budget-related legislation further were expendable through September 2022. The specified these new county requirements would 2022-23 budget provided an additional $1 million take effect January 1, 2023, or 30 days after DSS General Fund to ensure supportive services could issues the guidance, whichever is later. At the time be maintained beyond September 2022 for the of publication, DSS had not yet issued the required required 36 months of the program. guidance; the department indicated it aims to release the guidance by the end of February 2023. www.lao.ca.gov 17 2023-24 BUDGET COMMENTS AND QUESTIONS In this section, we provide comments and To help the Legislature improve its ability to questions for the Legislature to consider. Given track the implementation time lines of the many the numerous new activities being implemented new programs across DSS, the Legislature could across child welfare—and considering that there is ask the department to provide more detailed only one significant new proposal included in the anticipated timelines for implementation up front. 2023-24 Governor’s Budget—most of our comments This could help the Legislature more easily monitor focus on some key areas for Legislative oversight of progress of the many various moving pieces as ongoing implementation. implementation begins. Implementation Is Underway for Most In addition, the Legislature could direct Major New Child Welfare Funding Provided the department to report on: Why developing in Current and Prior Year… As summarized in guidance requires the amount of time it does, what Figure 6 and described above, DSS has begun challenges have arisen and required additional time implementing most of the new initiatives and to address, and what any unanticipated obstacles significant program augmentations funded by recent have been. budgets. In general, the department has provided Ultimately, the Legislature could use this implementation guidance (where needed) within information to determine whether the department around six months and counties have been able has sufficient resources to undertake this many to commence activities within around a year of the new programs simultaneously. The Legislature Legislature providing funding through budget acts also could use this information to shape future (although the planning period for comprehensive budget-related legislation to help ensure new prevention services has been notably longer). program launch may proceed as seamlessly …But Still Too Early to Fully Assess Impact. as possible. Even for programs we have categorized as “full Furthermore, to help ensure augmentations implementation underway” in Figure 6, assessing for programs that are of the highest legislative what is actually being achieved remains challenging. priority are able to begin implementation as In many cases, it remains too early to assess any quickly as possible, the Legislature also could implementation trends, particularly impacts and consider directing the department to prioritize outcomes for youth and families (more on this point implementation of various new programs in a below). We note that DSS is planning evaluation certain order. contracts to assess certain programs, but those Continue to Seek Opportunities to Hear results will not be available for quite some time. Directly from Youth and Families to Help Seek Information to Better Understand Ensure Legislative Expectations Are Being Any Implementation Challenges and Identify Met. As referenced throughout this brief, publicly Potential Areas to Streamline. As noted available guidance and other information shared throughout this brief, in many cases, the department by DSS can help the Legislature track DSS’s has taken 6 to 12 months or longer to develop efforts to implement various new child welfare guidance and launch new program activities. We programs—in terms of tracking the specific acknowledge that DSS has received numerous actions the department is taking. In addition, once significant allocations for new/expanded child implementation has been ongoing for some time, welfare programs over the past few years, while data collection and required reporting can help simultaneously managing all the programmatic provide some insight into overall programmatic changes that resulted from the pandemic. Within outputs. However, more nuanced tracking around this context, certainly some lead time between progress, impacts, and outcomes at the local level funds being provided through the annual budget for individual youth and families—and how actual process and program implementation launch is to implementation ultimately meets or falls short of be expected. 18 LEGISLATIVE ANALYST’S OFFICE 2023-24 BUDGET legislative expectations—may be less clear. To gain frame for introducing its final rates proposal to a deeper understanding of the extent to which ensure sufficient time for legislative and stakeholder funding is achieving the Legislature’s intended review and given the importance of the final rates to impact and goals for youth and families, we the success of CCR’s objectives. recommend the Legislature continue to seek input Forthcoming Report on FFPSA directly from stakeholders—including youth and Implementation Will Provide Oversight families—as feasible. In addition to regular oversight Opportunity. As noted above, the administration and budget hearings, other opportunities to hear now intends to provide the first required directly from system-involved youth and families supplemental reporting language report on FFPSA could include partnership with the California Health implementation in April 2023. We anticipate the and Human Services Agency’s Child Welfare data and information provided in this report will Council and the newly created Youth Empowerment provide an opportunity for deeper understanding Commission housed under the Governor’s Office of around how implementation of FFPSA Parts I and IV Planning and Research. is progressing and where challenges may remain. Forthcoming Final Rates Structure Will We will review the report when it becomes available Be Important to CCR’s Overall Success. As and share our feedback with the Legislature as described above, DSS is in the process of preparing applicable at that time. a proposal for the final rate structure under CCR, which is statutorily required to be implemented by January 1, 2025. The Legislature may wish to ask the department to commit to a more specific time www.lao.ca.gov 19 2023-24 BUDGET LAO PUBLICATIONS This report was prepared by Angela Short, and reviewed by Ginni Bella Navarre and Carolyn Chu. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 20 LEGISLATIVE ANALYST’S OFFICE