BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 1570                                      
          S
          AUTHOR:        Alquist                                      
          B
          VERSION:       March 27, 2006
          HEARING DATE:  March 28, 2006                               
          1
          FISCAL:        Senate Judiciary                             
          5
                                                                      
          7
          CONSULTANT:                                                 
          0
          Sue North
                                        

                                     SUBJECT
                                         
                            Foster Care: Group Homes

                                     SUMMARY  

          This bill would require the Health and Human Services  
          Agency develop a plan by July 1, 2008 to transform the  
          system of group home care for foster children and for  
          children with serious emotional disorders in residential  
          care.

                                     ABSTRACT  

          Existing law provides for the Department of Social Services  
          (DSS) to manage child welfare services, community care  
          licensing standards and rate setting for out-of-home care  
          for children in California.  The ongoing responsibility for  
          all children in out-of-home care, such as those with  
          serious emotional disorders, is often shared with other  
          state agencies.  This bill focuses the development of a  
          plan to reform group home care on the Health and Human  
          Services Agency, the state agency responsible for  
          interagency collaboration and cooperation.

                                                         Continued---



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                                  FISCAL IMPACT  

          Unknown; the bill as introduced carried a $1 million  
          appropriation which was recently amended out of the bill.   
          Implementation of the bill will be dependent upon actions  
          in the budget.

                            BACKGROUND AND DISCUSSION  

           Current Foster Homes and Funding
           Foster care group homes serve an average monthly caseload  
          of approximately 12,000 children, consisting of 7,000  
          abused/neglected foster children placing by county child  
          welfare agencies, 4,000 delinquent foster children placed  
          by county probation departments, and 1,000 seriously  
          emotionally disturbed (SED) children placed in out-of-home  
          care through their Individualized Education Program (IEP)  
          under AB 3632.*

          There are approximately 650 group home programs operated by  
          private nonprofit agencies receiving funding under the  
          AFDC-Foster Care program to provide care and supervision  
          and social work services to these children.  The programs  
          are operated at approximately 1,500 licensed facilities  
          with a total licensed capacity of approximately 14,000  
          beds.

          It is estimated that the total costs in 2006-07 for group  
          home placements in the AFDC-Foster Care program, including  
          the AB 3632 SED placements, will be approximately $782  
          million ($192 million in federal funds, $236 million in  
          State funds, and $354 million in county funds).  The  
          AFDC-Foster Care rates schedule ranges from $1,454 per  
          month for the lowest level of care at Rate Classification  
          Level (RCL) 1 to $6,371 per month for the highest level of  
          care at RCL 14.  The average AFDC-Foster Care group home  
          payment is approximately $4,975 per month.

           Foster Care Policy Reform Efforts

           Over the past three decades there have been a major reform  
          efforts in child welfare and foster care.  In the late  
          1970s the Congress passed major reform legislation aimed at  
          forcing timetables and decisions to occur much sooner in  
          the course of a child's placement out of their home in the  




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          foster care system.  The current system of foster care  
          places emphasis on decision making by the juvenile court  
          relative to six month increments regarding family  
          reunification, termination of parental rights, adoption  
          and/or permanency planning.

          Over the past thirty years legislative efforts focused on  
          creating models for family unification and preventing  
          family disintegration when possible.  Today many counties  
          orient their "interventions" towards a preventive model and  
          even include dependency court supervision for some families  
          where children are not removed from the home but are  
          considered at high risk for neglect or abuse.  New programs  
          and policy standards for child protective and child welfare  
          workers family reunification when possible or emphasize  
          first choice placement of children with relatives or  
          extended family.  This policy direction has been successful  
          in reducing unnecessary long term out-of-home placement of  
          children in more "institutional settings" like group homes.

          Most of the policy innovations have been effective in  
          addressing less dysfunctional family circumstances, working  
          best with fewer children in a family unit at younger ages  
          where the children themselves more often have been  
          neglected rather than abused.  More severe cases at the  
          rate of about 12,000 per month still find their way into  
          group homes in the foster care system.

          The Need for the Bill:
          
          The current group home system in California costs approach  
          $800 million per year, supports an average of 12,000  
          children and youth at an average cost of $5000 per month  
          per child.  The last major legislation focused on group  
          homes in the foster care system was SB 933 Thompson  
          (Ch.311, Statutes of 1998).  However, that bill was borne  
          of a scandal in the author's district and focused mainly  
          reducing out-of-state placement, 'cleaning up' a complex  
          set of governance and administrative issues and imposing  
          clear background check policies for all employees.

          In the past few years legislation has been enacted designed  
          to push the foster care out-of-home system to adapt itself  
          to become more "normalized" settings, with new emphasis on  
          identifying and changing more stigmatizing licensing rules  




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          and regulations which today make day-to-day living so  
          difficult for many children and teens in foster homes and  
          group homes.  More attention is also been paid to  
          emancipating foster youth who are unprepared for  
          independent living after years of living in group homes.

          One of the many reasons why youth emerge from the group  
          home system unable to transition successfully into  
          adulthood stems from the state's own policies about the  
          role and function of group homes.  Group homes are the  
          placement of last resort in the current foster care system,  
          where placement is determined by the level of supervision  
          and treatment needed to manage the child's behavior.  It is  
          NOT designed to achieve specific outcomes.  According to  
          the sponsor, "The current AFDC-Foster Care program neither  
          authorizes nor funds group homes to provide services that  
          may be needed by families to achieve reunification, or,  
          when reunification is not possible, to prepare/support  
          relatives or another family willing to provide a permanent  
          home.  As a result, many foster children remain in group  
          homes longer than would otherwise be necessary, or they are  
          discharged to another foster care setting without achieving  
          a stable and permanent family living situation."

          SB 1570 requires the development of a reform implementation  
          plan, to be submitted to the Legislature by July 1, 2008  
          which would be designed to transform California's current  
          system of foster care group homes into a system of  
          "residentially-based services" designed to expedite  
          placement in a more permanent family setting.  The bill  
          defines:

                 the role of group care in California's child  
               welfare, juvenile justice, and mental health systems;
                 the range of services they are to provide;
                 the outcomes they are to achieve for their  
               children; and
                 how they are to be paid for these services.

          The goal of system reform is to improve outcomes for foster  
          children by enhancing the quality and scope of care and  
          services provided with the specific objective of expediting  
          a permanent family placement.  The bill would transform  
          group homes  from  structured often long-term living  
          environments for children who have experienced multiple  




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          failed placements in foster family homes  into  intensive  
          interventions tasked with returning children to their own  
          homes or to another permanent and stable family setting in  
          as short a time possible.

           Comments:
           
          The language of the proposed reform reflective in SB 1570  
          is the product of a series of stakeholder group meetings  
          which produced a document called a "Framework for  
          Residentially-Based Services."  The bill calls for counties  
          and private providers to develop and test models on a pilot  
          basis.  Since California has a number of private  
          philanthropic foundations who have already invested  
          substantial grant funds in foster care, should the bill be  
          amended include their involvement when possible and  
          appropriate?


                                    POSITIONS  

          Support:       California Alliance of Child and Family  
          Services (Sponsor)
                         County Welfare Directors Association
                         LeRoy Haynes Center
                         Hathaway-Sycamores Child and Family Services
                         California Permanency for Youth Project
                         Rebekah Children's Services
                         Vista Del Mar
                         Optimist Youth Home and Family Services
                         Sunny Hills Services
                         Five Acres
                         Regional Youth Services/ North Valley School
                         Advent Group Ministries
                         Sacramento Children's Home

          Oppose:   None received



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