| TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB69 by Nelson (Relating to child protective services.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | ($2,031,486) |
| 2011 | ($2,583,622) |
| 2012 | ($1,528,079) |
| 2013 | ($1,528,079) |
| 2014 | ($1,528,079) |
| Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
Probable Savings from General Revenue Fund 1 |
Probable (Cost) from Federal Funds 555 |
Probable Savings from Federal Funds 555 |
|---|---|---|---|---|
| 2010 | ($2,031,486) | $0 | ($334,008) | $0 |
| 2011 | ($12,634,109) | $10,050,487 | ($2,077,243) | $1,652,455 |
| 2012 | ($11,578,566) | $10,050,487 | ($1,903,695) | $1,652,455 |
| 2013 | ($11,578,566) | $10,050,487 | ($1,903,695) | $1,652,455 |
| 2014 | ($11,578,566) | $10,050,487 | ($1,903,695) | $1,652,455 |
| Fiscal Year | Change in Number of State Employees from FY 2009 |
|---|---|
| 2010 | 0.0 |
| 2011 | (121.0) |
| 2012 | (121.0) |
| 2013 | (121.0) |
| 2014 | (121.0) |
SECTION 2 would amend Section 264.101(d), Family Code, to require that criteria and guidelines for the payment of foster care include higher rates for providers whose children achieve and maintain progress goals than for providers whose children fail to achieve and maintain progress goals.
SECTION 3 would amend Section 264.106(c), Family Code, to require the Department of Family and Protective Services (DFPS) to establish a goal of privatizing case management services in 10 percent of the cases in which the agency has been appointed managing conservator of a child. It would also require DFPS to ensure that private agencies providing case management services also provide family-based safety services.
SECTION 4 would amend Section 264.1075, Family Code, to prohibit DFPS from assessing the substitute care placement of a child identified as requiring specialized or intense-level services more than once every six months.
SECTION 7 would add Section 264.123, Family Code, to require DFPS to establish a mentoring program for foster parents to help foster children’s parents comply with the terms of a service plan.
SECTION 9 would amend Section 45.002(a), Human Resources Code, to also require that DFPS establish a goal of contracting with one or more providers of case management services in 10 percent of cases not later than September 1, 2011.
Criteria and Guidelines for the Payment of Foster Care. The Health and Human Services Commission has indicated that any rate differential for foster care providers whose children achieve and maintain progress goals would be incorporated into rate structure determinations and, on the whole, cost neutral. There is a potential for higher costs if the commission’s rules result in an overall rate increase.
Privatization of Case Management Services. DFPS has indicated that it would privatize 10 percent of case management services starting on September 1, 2010. This estimate only covers the 5 percent incremental increase above current law. It is assumed that the agency would contract for the delivery of both conservatorship and family-based safety services; the average daily caseload per conservatorship worker would be 31.3 and the average daily caseload per family-based safety services worker would be 19.5; and most of the costs associated with privatization would be offset by savings to the agency. Costs not offset by savings include one-time set-up costs, administration (10 percent of direct services), and profit (5 percent of direct services). The direct cost to privatize 5 percent of case management and family-based safety services would be $14.6 million for fiscal year 2011 and $13.4 million each following year. The direct savings would be $11.7 million per year starting in fiscal year 2011. The savings include a reduction of 121 FTEs at the agency.
DFPS estimates there would be an additional cost to develop and operate a web-based extranet for contracted caseworkers to record data into the agency’s IMPACT automation system. This cost is estimated to be $2.4 million in fiscal year 2010 and $0.1 million each following year.
Reassessment of Substitute Care Services. DFPS indicates that the requirement to reassess the placement of children in specialized or intense foster care no more than once every six months would be cost neutral. The provision could result in higher expenditures if children stay in expensive levels of care for longer periods of time.
It is assumed that any cost to implement the provision relating to the foster care mentoring program would be minimal and can be absorbed within available resources.
| Source Agencies: | 308 State Auditor's Office, 529 Health and Human Services Commission, 530 Family and Protective Services, Department of
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| LBB Staff: | JOB, CL, NM, MB, BM, TP
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