BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 2015
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          |Author:   |McCarty                                               |
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          |Version:  |March 18, 2016         |Hearing    |June 28, 2016    |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Mareva Brown                                          |
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             Subject:  Public social services:  2011 realignment report


            SUMMARY
          
          This bill adds requirements to the 2011 realignment report that  
          the California Department of Social Services (CDSS) must provide  
          annually to the Legislature. Additional requirements include  
          reported expenditures for counties that are participating and  
          making claims under a federal Title IV-E child welfare services  
          waiver, how those counties are maximizing the utilization of  
          funds, and how close counties are to funding optimum caseload  
          ratios.
            

          ABSTRACT
          
          Existing law:

             1)   Creates a system of child welfare to protect children  
               who have suffered, or there is a substantial risk that the  
               child will suffer, serious physical harm inflicted  
               non-accidentally upon the child by the child's parent or  
               guardian, as defined. (WIC 300, et seq.)

             2)   Requires that if the social worker determines that it is  
               appropriate to offer child welfare services to the family,  
               the social worker shall make a referral to these services,  
               as specified. (WIC 328)









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             3)   Realigns various state-funded and county-run programs to  
               the counties to provide local control and discretion over  
               funding programs such as child welfare, mental health and  
               criminal justice services. (GOV 30025)

             4)   Includes in realignment funding transferred from the  
               Health and Human Services Account, as defined, and requires  
               that the moneys in the Protective Services Subaccount and  
               the Protective Services Growth Special Account shall be  
               used exclusively to fund adult protective services, child  
               welfare and adoptive services, foster care grants and  
               services, and other specified realigned services. Within  
               the realigned programs is the  Title IV-E Child Welfare  
               Waiver Demonstration Capped Allocation Project. (GOV  30025  
               (f)(16)(A))

             5)   States Legislative intent to ensure that the impacts of  
               the 2011 realignment of child welfare services, foster  
               care, adoptions, and adult protective services programs are  
               identified and evaluated initially and over time, and that  
               information is publicly available and accessible and can be  
               utilized to support the state's and counties' effectiveness  
               in delivering these critical services and supports. (WIC  
               10104)

             6)   Requires CDSS to report annually to the appropriate  
               fiscal and policy committees of the Legislature, and to  
               publicly post on the department's Internet Web site, a  
               summary of outcome and expenditure data that allows for  
               monitoring of changes over time. (WIC 10104 (b))


             7)   Requires that, to the extent the information is readily  
               or publicly available, the report also contain the amount  
               of funds each county receives from the Protective Services  
               Growth Special Account, as defined, child welfare services  
               social worker caseloads per county, and the number of  
               authorized positions in the local child welfare services  
               agency. (WIC 10104 (c))


             8)   Requires CDSS to contract with an appropriate and  
               qualified entity to conduct an evaluation of the adequacy  
               of the current child welfare services budgeting methodology  









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               and make recommendations about appropriate caseload levels,  
               supportive services, and preventative services, in order to  
               accurately and adequately fund the system. Requires  
               consideration of a number of factors, including the impact  
               of the child welfare services case management system on the  
               workload of workers in the system. (WIC 10609.5)

          This bill:

             1)   Deletes from WIC 10104 (c) the qualifier "to the extent  
               the information is readily or publicly available," thus  
               requiring the annual report to contain information about  
               the amount of funds each county receives from the  
               Protective Services Growth Special Account, social worker  
               caseloads per county and the number of authorized positions  
               in the local child welfare agency.
          
             2)   Requires the annual realignment report to include  
               reported expenditures for counties that are participating  
               and making claims under the federal Title IV-E waiver, how  
               those counties are maximizing the utilization of funds, and  
               how close counties are to funding the optimum caseload  
               ratios, as defined.
          
            FISCAL IMPACT
          
          An analysis by the Assembly Committee on Appropriations  
          identified unknown, but potentially significant costs (GF) for  
          counties to collect, update, compile, and present to CDSS, data  
          necessary for determining caseload ratios. CDSS is still  
          evaluating whether they already have access to some or all of  
          the necessary data. Thus, it is unclear to what extent counties  
          will need to be involved in providing data. The committee also  
          identified minor and absorbable costs to CDSS to incorporate the  
          additional items into the report.

            BACKGROUND AND DISCUSSION
          
          Purpose of the bill:

          According to the author, current law requires that CDSS annually  
          report to the Legislature a summary of outcomes and expenditure  
          data that allows for monitoring program and support service  
          delivery since realignment, however it is unclear whether the  









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          state is collecting the data necessary to support any recent  
          improvement, current deficiencies or emerging best practices  
          that exist within the new system. According to the author, the  
          required reporting in AB 2015 will give the state and  
          Legislature a clear picture of what protocols and practices are  
          successful and identify where counties can improve the delivery  
          of support services to children in the child welfare system.
          
          Realignment

          As part of the 2011-12 budget, the Governor and Legislature  
          realigned various major social services and public safety  
          programs from the state to local governments. The realignment  
          moved $6.3 billion and program responsibility to the local  
          governments - primarily to the state's 58 counties - which  
          provide and directly oversee services. The legislation  
          eliminated some state oversight functions and increased  
          flexibility. Subsequent legislation established a permanent fund  
          structure for 2011 realignment, limited the amount of funding  
          that could be transferred between accounts, and made other  
          changes. 

          Annual report

          SB 1013 (Committee on Budget and Fiscal Review, Chapter 35,  
          Statutes of 2012) required CDSS to report annually to the  
          appropriate fiscal and policy committees of the Legislature, and  
          publicly post on the CDSS internet website, a summary of outcome  
          and expenditure data that allows for monitoring of changes over  
          time that may have occurred as a result of the 2011 Realignment  
          of the child welfare services and adult protective services  
          systems.


          In 2016, CDSS published the fourth annual realignment report,  
          which concluded there did not appear to be any negative  
          consequences of having transferred fiscal responsibility for the  
          child welfare system to the county level. Overall rates of  
          referral have remained relatively constant, with a slight uptick  
          in 2014; entry rates have remained nearly unchanged and the rate  
          of cases found to be substantiated after investigation decreased  












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          slightly, according to the report.<1> 

          IV-E waiver demonstration project
          
          In 1994 Congress passed Public Law 103-432,<2> which gave the  
          Secretary of the Department of Health and Human Services the  
          authority to approve State demonstration projects which waive  
          certain provisions of the Social Security Act relating to child  
          welfare services funding. There were six early implementing  
          states, including California, Florida, Illinois, Indiana, Ohio,  
          and Oregon, which continue to use waiver agreements in 2013.  
          Meanwhile, nine additional states received approval to implement  
          new waiver demonstrations in Federal Fiscal Year 2012.

          The original six states received waivers to implement  
          demonstration projects using flexible funding, which varied in  
          scope, services and structure. In California, the waiver was  
          initially granted to just two counties in 2007 - Los Angeles and  
          Alameda. It allocated fixed amounts of title IV-E dollars to  
          local public and private child welfare agencies in an effort to  
          provide new or expanded prevention services rather than  
          providing services only in an out-of-home setting once a child  
          is removed from home. 

          The waiver counties assumed that the cost of prevention and  
          early intervention services would be offset by subsequent  
          savings in foster care expenditures. According to a 2013 US  
          Health and Human Services report, "a number of States and  
          counties (e.g., Florida and Alameda and Los Angeles Counties in  
          California) documented large declines in their foster care  
          populations, although the extent to which these decreases are  
          attributable to their flexible funding demonstrations or to  
          broader changes in child welfare policy and practice is  
          unclear." Since that time, Butte, Sacramento, San Diego, Sonoma,  
          Santa Clara and Lake Counties have applied for and been granted  
          IV-E waivers. 

          ---------------------------
          <1> Child Welfare Services & Adult Protective Services  
          Realignment Report: Outcome & Expenditure Data Summary, April  
          2016

          <2>  
           http://www.acf.hhs.gov/sites/default/files/cb/waiver_summary_fina 
          l_april2013.pdf  








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          SB 2030 Study

          Amid concerns about social worker caseloads nearly two decades  
          ago, the Legislature passed SB 2030 (Costa, Chapter 785,  
          Statutes of 1998) which required that CDSS undertake an  
          evaluation of workload and budgeting methodologies and set forth  
          certain requirements for such a study. The evaluation was  
          conducted from June 15, 1999, through December 15, 1999 in all  
          58 counties and the subsequent report provided a foundation for  
          conversations about appropriate caseloads for social workers  
          doing various tasks within the child welfare system. 

          Related legislation:

          SB 855 (Senate Committee on Budget and Fiscal Review, Chapter  
          29, Statutes of 2014) added to the 2011 realignment report the  
          requirement that the report also contain the amount of funds  
          each county receives from the Protective Services Growth Special  
          Account, as specified, child welfare services social worker  
          caseloads per county, and the number of authorized positions in  
          the local child welfare services agency, if the information is  
          readily available.
          
          SB 1013 (Budget and Fiscal Review, Chapter 35, Statutes of 2012)  
          established the requirement for CDSS to annually report summary  
          and outcome information to the Legislature about the child  
          welfare system. 

          AB 118  (Budget and Fiscal Review, Chapter 40, Statutes of 2011)  
           and ABX1 16 (Blumenfield, Chapter 13, Statutes of 2011)  
          realigned CDSS funding for Adoption Services, Foster Care, Child  
          Welfare Services, and Adult Protective Services, and programs  
          from the state to local governments and redirected specified tax  
          revenues to fund the effort
          
          SB 2030 (Costa, Chapter 785, Statutes of 1998) required CDSS to  
          contract with an appropriate and qualified entity to conduct an  
          evaluation of the adequacy of current child welfare services  
          budgeting methodology, and would require the department to  
          report to the appropriate committees of the Legislature by  
          January 30, 2000.


            PRIOR VOTES









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          |Assembly Floor:                                            |80 - |
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          |Assembly Appropriations Committee:                         |20 - |
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          |Assembly Human Services Committee:                         |7 -  |
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            POSITIONS
                                          
          Support:       
               None.

          Oppose:
               None.
                                      -- END --