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Q&A
Discussion on foster care funding and reimbursement rates
3:40:33
ยท
3 min
Council Member Althea V. Stevens and Commissioner Jess Dannhauser discuss the additional funding for foster care in the fiscal year 2025 budget, focusing on reimbursement rates for foster care, kinship, and adoptive parents. They explore how the funding amount was determined, its utilization, and the metrics used for performance evaluation in foster care.
- The additional funding of $138.8 million is to fill the gap created by new state-approved rates without increased state funding.
- The total foster care budget for FY2025 is close to $800 million, with a baseline of $682 million for FY2026.
- ACS is in discussions with OMB to adjust the baseline budget to align with current demand and required reimbursement rates.
Althea V. Stevens
3:40:33
Foster care, so I'm gonna move to foster care.
3:40:35
The primary budget includes an additional hundred and 38,800,000.0 in city funds for foster care in fiscal twenty twenty five.
3:40:42
Only the state mandated reimbursement rates for foster care, kinship, and adoptive parents.
3:40:47
How was this funding amount determined and how was the funding and how will this funding be utilized?
Jess Dannhauser
3:40:53
So this is really filling the gap that was created when the state approved new rates for foster parents, adoptive parents as well, kinshipguardianship payments as well.
3:41:06
When they approved new rates they did not increase the funding.
3:41:10
And so each year depending on the number of children in care, the specific rates that play out we work with OMB to try to fill that gap and that's what the number was for fiscal year twenty five.
Althea V. Stevens
3:41:24
What metrics are used and does ACS find those metrics to be significant for the reimbursement rates?
Jess Dannhauser
3:41:32
So you know we look at a number of things as it relates to our performance in foster care, reunification with families, the safety of those reunification, adoption numbers, the safety of children in care, the stability of children in care, all of the funding that goes into foster care, it's a pretty, there's several funding streams that support it, relate to those key outcomes that children are safe and that they're achieving permanency.
Althea V. Stevens
3:41:58
Why was funding added for only one year and not baselined?
Jess Dannhauser
3:42:01
Because it's sort of a moving target.
3:42:05
We're not depending on the it all depends on the census, so there's different types of rates.
3:42:10
So there's an exceptional rate if a young person has a significant developmental disability, as an example, and it's a special medical foster parent.
3:42:18
There is rates for a sort of more standard level of care.
3:42:24
And so depending on what those rates shape out to be and the number of young people in care, we fill that and work with OMB to assess what that gap is.
Althea V. Stevens
3:42:36
How much is the full budget for foster care in fiscal twenty twenty five?
Jess Dannhauser
3:42:40
The full budget for 2025 is $670,000,000 I believe.
3:42:51
600 and for '25?
Nate Duval Estrella
3:42:53
I
Jess Dannhauser
3:42:56
believe it's $6.82 plus the 183 that was added.
3:43:02
So a little under 800,000,000.
Althea V. Stevens
3:43:07
What is the baseline budget for foster care in fiscal twenty twenty six and in the out years?
Jess Dannhauser
3:43:14
$682,000,000.
Althea V. Stevens
3:43:17
Does the agency plan to adjust the baseline budget to be more aligned with the current levels of demand and the requirements required reimbursement rates?
Jess Dannhauser
3:43:26
Yes.
3:43:27
We are in conversations with OMB, again, sort of looking at that analysis.
3:43:31
There's, we'll also look at the 4E rates as we were discussing earlier from the federal government.
3:43:36
All of those come together to identify what services, the total cost.
3:43:43
The commitment that we have to our providers is already in the contracts.
3:43:48
We have no cuts that we're announcing to that so providers can be assured that our commitments will remain.