October 8, 2010
Dear Child Placing Agency Partners:
I am writing to inform you of a change to the proposed budget reduction of 60 percent for one of the Child Placing Agency service fees.
Upon further examination, we recognize that the proposed 60 percent reduction is too much for the system to absorb at one time. We originally proposed a reduction to the per-child monthly service fee of $404.43, which is for case management service and foster care recruitment and support.
In place of the proposed reduction, effective November 1, 2011, we will implement a 6.287 percent across-the-board reduction to be applied to all fees currently paid to Child Placing Agencies, excluding reimbursement for foster care maintenance payments for children.
Child Placing Agencies currently provide case management and service coordination activities to assist with access to needed medical, social, educational and other necessary services. Effective July 1, 2011, service coordination will be a requirement of all master contractors who will provide services as a part of performance based contracts. As such, it is the intent of Children's Administration to phase out service coordination performed under current contracts.
We have scheduled two meetings with child placing agencies to discuss the impact from these budget reductions:
We are currently exploring other budget reduction options to make up the reduced child placing agency reduction. We did not have many choices when making these budget decisions; and the decisions were difficult given the size of the reductions required and the options available. We need and want to make these reductions in a way that will minimize the impact on Child Placing Agencies. Please know that we do value the diversity of our Child Placing Agencies and the community partnerships.
Please keep in mind that these will not be the end of budget reductions that state government and DSHS will face. Our fiscal staff are already working on further reductions that will be required to balance the 2011-13 Biennial Budget to be developed by the Governor and the Legislature this winter.
I look forward to seeing you at one of the scheduled meetings.
Denise Revels Robinson