BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 363
                                                                  Page  1

          Date of Hearing:   March 29, 2005

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                 Noreen Evans, Chair
                      AB 363 (Chu) - As Amended:  March 29, 2005
           
          SUBJECT  :  Child and Family Service Review System Incentive Fund.

           SUMMARY  :  Creates the Child Welfare Services Outcomes and  
          Accountability Incentive fund to be used by counties as they  
          implement improvements outlined through their Child and Family  
          Service Review.  Specifically,  this bill  :  

          1)Establishes a fund consisting of money appropriated by the  
            Legislature in the annual Budget Act.

          2)Requires the Department of Social Services (DSS) to establish  
            a process for allocating the moneys in the fund to counties  
            that are not already receiving funding through the budget  
            process for implementation of program improvements in the  
            2005-06 Budget Act or subsequent budget acts.

          3)Requires the allocation process to take into account the  
            extent to which the proposed funding would be used for  
            activities that are reasonably expected to help the county  
            make progress toward their outcome measures as specified.

          4)Requires, to the extent possible, that counties use moneys  
            received through this fund in a manner that enables the county  
            to draw down additional federal, state and local funds, while  
            noting that the counties' inability to receive additional  
            matching funds shall not play a determining factor in the  
            allocation process. 

           EXISTING LAW  :  Requires counties to establish and meet outcome  
          measures in the delivery of Child Welfare Services on behalf of  
          abused and neglected children. 

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  In 2001, the Legislature passed AB 636 (Steinberg)  
          Chapter 678, Statutes of 2001.  This measure established the  
          Child Welfare Outcomes and Accountability System which measures  
          outcomes-based indicators for each county, including the  
          measures used in the federal Child and Family Service Review  








                                                                  AB 363
                                                                  Page  2

          (CFSR).  Counties, in collaboration with other local agencies  
          and their communities, were required to formulate a County  
          System Improvement Plan (SIP) which outlined program priorities,  
          defined strategies and steps to achieve improvement and set  
          quantitative measurements of success.    

          In 2002 California, along with nine other states, failed all  
          seven safety, well-being and permanency outcomes in the federal  
          CFSR.  While states may be penalized for failing to meet their  
          outcomes and measurements, California and other states have been  
          given an opportunity to submit plans for improvement, and meet  
          specific benchmarks towards success before they are assessed  
          penalties.  The state Child Welfare Outcomes and Accountability  
          System also requires counties to address all of the federal  
          review indicators and measurements. 

          Counties began to receive data from AB 636 this year, allowing  
          them to identify weaknesses in their performance and focus on  
          specific improvements.  Every county has submitted their SIP to  
          the Department of Social Services (DSS).  In the coming months,  
          DSS is expected to send letters to each county indicating their  
          approval of each SIP.  To avoid federal penalties, California  
          must develop and implement program improvement plans.  But,  
          despite the progress counties have made on the plans, they don't  
          have the necessary funds to implement needed improvements.  

          Additionally, the legislatively mandated Child Welfare Workload  
          Study released in 2000 documented that child welfare workers  
          carry caseloads that are twice as high as they should be in  
          order to meet even basic requirements let alone fund the  
          enhanced activities required to improve county performance.

          Despite the need, AB 363 does not appropriate any money, but  
          instead creates a fund and a competitive grant process the  
          counties can use to implement their SIPs, should funds be  
          appropriated by the Legislature.  Counties can then use these  
          dollars to meet the benchmarks for success as outlined in their  
          SIPs and as required by the federal review.

          In 2003, DSS released the legislatively mandated Child Welfare  
          Services Redesign (Redesign) Final Report.  Among other  
          recommendations, the Redesign selected 11 counties to pilot a  
          series of CWS system improvements.  The original recommendation  
          also identified a second cohort of counties to continue the  
          pilot.  The Governor's January 2005 Budget contains money to  








                                                                  AB 363
                                                                  Page  3

          both complete the work by the first cohort of counties, and to  
          initiate a second cohort of Redesign counties.  The Legislature  
          and the Governor may wish to consider allocating funds to the  
          first cohort of counties to complete their work, but not fund  
          the second cohort.  The budgeted dollars could then be deposited  
          into the account created by AB 363 and used to fund improvements  
          to the CWS system as outlined in each individual county SIP.   
          This would serve to expedite the CWS program improvements as  
          required by the federal review and could allow California to  
          avoid federal penalties.   

          According to the author, "AB 363 will additionally create a  
          feedback mechanism between the Legislature and DSS."  DSS would  
          be required to provide information to the Legislature regarding  
          the findings and recommendations for improvements identified in  
          the counties' SIPs.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          County Welfare Directors Association of California (sponsor)

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Caitlin O'Halloran / HUM. S. / (916)  
          319-2089