BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                       Senator S. Joseph Simitian, Chair


          BILL NO:       AB 363                                       
          A
          AUTHOR:        Chu                                          
          B
          VERSION:       March 29, 2005
          HEARING DATE:  June 28, 2005                                
          3
          FISCAL:        Appropriations                               
          6
                                                                      
          3
          CONSULTANT:                                                
          Hailey
                                        

                                     SUBJECT
                                         
                     Child and family service review system

                                     SUMMARY  

          Creates the child welfare services outcomes and  
          accountability incentive fund to be used by counties as  
          they implement improvements outlined through their federal  
          child and family service review.

                                     ABSTRACT  

           Current law
          1.  Requires counties to establish and meet outcome  
          measures in the delivery of child welfare services on  
          behalf of abused and neglected children.

           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 funds, in the  
          2005-06 Budget Act or subsequent budget acts, for  
                                                         Continued---



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          implementation of program improvements.

          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.


                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, $3.7  
          million General Fund was proposed in the governor's May  
          Revision of the 2005-06 Budget for the child welfare  
          services outcome improvement project.  Although AB 363 does  
          not appropriate these funds, this bill is designed to  
          address similar purposes.

          In its budget actions, subcommittees in both the Senate and  
          Assembly approved the May Revision proposal for $14.3  
          million ($4.4 million GF) million and adopted an increase  
          of $5.6 million ($3.5 million GF) for the child welfare  
          services outcome improvement project.   According to the  
          Senate budget subcommittee on health and human services,  
          this funding would support program reforms and improvements  
          to the child welfare services system, including  
          implementation of the child welfare services' outcomes and  
          accountability system, the state's program improvement  
          plan, and expanded child abuse prevention efforts.

                            BACKGROUND AND DISCUSSION  

          In 2001, the Legislature passed AB 636 (Steinberg) Chapter  
          678, Statutes of 2001.  This bill 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.  Counties, in collaboration with other local  
          agencies and their communities, are required to formulate a  




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          county system improvement plan, which outlines program  
          priorities, defines strategies and steps to achieve  
          improvement, and sets forth quantitative measurements of  
          success.

          In 2002, California, along with nine other states, failed  
          all seven safety, well-being, and permanency outcomes in  
          the federal child and family service review.  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 activities this  
          year, allowing them to identify weaknesses in their  
          performance and focus on specific improvements.  To avoid  
          federal penalties, California must develop and implement  
          program improvement plans.  Every county has submitted  
          their system improvement plan to DSS.  In the coming  
          months, DSS is expected to send letters to each county  
          indicating their approval of each plan.  Despite the  
          progress counties have made on the plans, according to the  
          author, counties do not have the necessary funds to  
          implement needed improvements.

          Additionally, a legislatively mandated child welfare  
          workload study released in 2000 documents that child  
          welfare workers carry caseloads that are twice as high as  
          they should be in order to meet the law's basic  
          requirements let alone ensure the provision of enhanced  
          activities required to improve county performance.

          While this bill does not appropriate funds, it creates a  
          fund and a competitive grant process that counties can use  
          to implement their plans, should funds be appropriated by  
          the Legislature.  Counties can then use these dollars to  
          meet the benchmarks for success as outlined in their plans  
          and as required by the federal review.

          In 2003, DSS released the legislatively mandated child  
          welfare services redesign final report.  Among other  
          recommendations, the report identified 11 counties to pilot  




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          a series of child welfare service system improvements.  The  
          original recommendation also identified a second cohort of  
          counties to continue the pilot.  The governor's January  
          2005 budget proposal requests money to complete the work by  
          the first cohort of counties and to initiate a second  
          cohort of redesign counties.  If these funds are included  
          in the 2005-06 Budget Act and this bill becomes law, the  
          funds will be deposited into the special account and used  
          to fund improvements to the CWS system as outlined in each  
          individual county system improvement plan.  The author  
          believes that this course of action would expedite program  
          improvements as required by the federal review and could  
          enable 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' improvement plans.

           Assembly votes
           Floor:              74-0
          Appropriations Committee:18-0
          Human Services Committee:  6-0

                                    POSITIONS  

          Support:       County Welfare Directors Association  
          (sponsor)
                         American Federal of State, County and  
                    Municipal Employees
                         California State Association of Counties 
                         Service Employees International Union
                         Solano County Board of Supervisors

          Oppose:   None received






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