| | Statement of Cornelia Ashby, Director, Education, Workforce, and Income Security, U.S. Government Accountability Office Testimony Before the Subcommittee on Income Security and Family Support of the House Committee on Ways and Means May 23, 2006 Mr. Chairman and Members of the Subcommittee:
I am pleased to be here today to present information from
our 2003 report on how states used funds authorized under Title IV-B of the
Social Security Act to help families address problems that lead to child abuse
and neglect and subsequent separation of children from their families.[1] For
federal fiscal year 2004, child protective services (CPS) staff in state and
local child welfare agencies reported investigating or assessing an estimated 3
million allegations of child maltreatment and determined that approximately
872,000 children had been the victims of child abuse or neglect by their
parents or other caregivers. Established in 1935, Title IV-B first authorized
funds to states that could be used to provide a wide array of child welfare
services including those necessary to investigate reports of child
maltreatment, remove children from their home and place them with a temporary
foster family, help preserve or reunify families, and place children who cannot
be safely reunified with their families in an adoptive home.
The Congress has passed various laws over the years
emphasizing the need for states to use Title IV-B funding to provide supportive
services to preserve and reunify families. In 1980, for example, the Adoption
Assistance and Child Welfare Act established a dollar cap on the amount of
child welfare funds that states could use under Title IV-B for foster care and
certain other activities to encourage states to use additional funding for
services to families. In 1993, the Congress established the family preservation
and family support services program under Title IV-B subpart 2, authorizing
funding to states for family preservation and community-based family support
services. The Adoption and Safe Families Act of 1997 further encouraged
spending on family support services by reauthorizing subpart 2, renaming it
Promoting Safe and Stable Families, and expanding the types of programs on
which states were authorized to spend Title IV-B funds to include adoption
promotion and support services and time-limited family reunification services.
In fiscal year 2006, the Congress appropriated $287 million for child welfare
services under subpart 1 and $394 million for family support services under
subpart 2.[2] These
funds are administered to states by the Department of Health and Human Services’
(HHS) Administration for Children and Families (ACF).
My testimony today is primarily based on information
included in our 2003 report. Specifically, I will be discussing: (1) how states
used Title IV-B dollars to serve families under subparts 1 and 2; (2) the
extent that federal oversight ensured state compliance with spending
requirements under subpart 1; and (3) what the research said about the
effectiveness of services states have provided to families using Title IV-B
funds.
In summary, while overlap exists, states reported using
Title IV-B subpart 1 funds primarily to staff and administer child welfare
programs and serve families in the foster care system, while states reported
using subpart 2 funds primarily for prevention and support services for families at risk of
child abuse and neglect. It is difficult, however, to clearly differentiate
among the various service categories and populations served. HHS provided
relatively little oversight in how states spent federal funds under subpart 1, and
at least 10 states spent a total of over $15 million over the legislated cap
for foster care and adoption assistance payments. Although the predominance of
federal funding spent for foster care and adoption assistance has long been
cited as providing a disincentive to preserve and reunify families, little
research is available on the effectiveness of the services subpart 1 funds
provide and HHS evaluations of services funded under subpart 2 have generally
shown no or little effect. Similarly, the extent that differences in how
states spent funds to support children and families resulted in better or worse
outcomes for children is unknown.
To help address this information gap, our 2003 report
recommended that the Secretary of HHS consider the feasibility of collecting
and using data on states’ use of Title IV-B subpart 1 funds. We made this
recommendation not only to facilitate federal oversight and analysis of how
states’ spending patterns correlate to child outcomes, but also so that HHS
could use this data to inform the design of alternative funding proposals that
would give states more flexibility in spending federal child welfare funds. We
also recommended that the Secretary provide the necessary guidance to ensure
compliance with statutory restrictions on the use of Title IV-B subpart 1funds.
ACF agreed with our findings and implemented guidance to states reminding them
of the statutory requirements for subpart 1 spending. However, ACF disagreed
with our recommendation to consider collecting data on subpart 1 expenditures.
ACF believed that its level of oversight was commensurate with the scope and
intent of subpart 1, noting that its oversight efforts were more appropriately
focused on reviews of the states’ overall child welfare systems. ACF did not
comment on our recommendation to use such data to inform the design of an
alternative financing option.
Our review was based on two surveys to child welfare directors
to obtain information on how they use Title IV-B funds. We also visited four
states—California, New Jersey, Ohio, and Washington—where we interviewed state
and local officials and service providers. We also held discussions with HHS
headquarters and regional office officials and child welfare experts. We
reviewed results from HHS’s assessments of state child welfare agencies as well
as the literature assessing the effectiveness of various child welfare
services.
Background
Title IV-B of the Social Security Act authorizes funds to
states to provide an array of child welfare services to prevent the occurrence
of abuse, neglect, and need to place children in foster care. The
Administration for Children and Families within HHS is responsible for the
administration and oversight of federal funding to states for child welfare
services under Title IV-B. HHS headquarters staff are responsible for
developing appropriate policies and procedures for states to follow in
obtaining and using federal child welfare funds, while staff in HHS’s 10
regional offices are responsible for providing direct oversight of state child
welfare systems. No federal eligibility criteria apply to the children and
families receiving services funded under Title IV-B. The amount of subpart 1
funds a state receives is based on its population under the age of 21 and the
state per capita income, while subpart 2 funding is determined by the
percentage of children in a state whose families receive food stamps.
Subpart 1 provides grants to states for child welfare
services, that are broadly defined. Subpart 1 funds are intended for services
that are directed toward the accomplishment of the following purposes:
- protect
and promote the welfare of all children;
- prevent
or remedy problems that may result in the abuse or neglect of children;
- prevent
the unnecessary separation of children from their families by helping families
address problems that can lead to out-of-home placements;
- reunite
children with their families;
- place
children in appropriate adoptive homes when reunification is not possible; and
- ensure
adequate care to children away from their homes in cases in which the child
cannot be returned home or cannot be placed for adoption.
Subpart 2 services are similar to those allowed under
subpart 1, although the range of services allowed under subpart 2 is more
limited in some cases. For example, time-limited family reunification services
can only be provided during a child’s first 15 months in foster care, while no
such restriction is placed on the use of subpart 1 funds. In addition, states
must spend a “significant portion” of their subpart 2 funds on each of four
service categories:[3]
- Family
preservation service. Services designed to help families at risk or in
crisis, including services to (1) help reunify children with their families
when safe and appropriate; (2) place children in permanent homes through
adoption, guardianship, or some other permanent living arrangement; (3) help
children at risk of foster care placement remain safely with their families;
(4) provide follow-up assistance to families when a child has been returned after
a foster care placement; (5) provide temporary respite care; and (6) improve parenting skills.
- Family
support services. Community-based services to promote the safety and
well-being of children and families designed to increase the strength and stability
of families, to increase parental competence, to provide children a safe and
supportive family environment, to strengthen parental relationships, and to
enhance child development. Examples of such services include parenting skills
training and home visiting programs for first time parents of newborns.
- Time-limited
family reunification services. Services provided to a child placed in
foster care and to the parents of the child in order to facilitate the safe
reunification of the child within 15 months of placement. These services
include counseling, substance abuse treatment services, mental health services,
and assistance to address domestic violence.
- Adoption
promotion and support services: Services designed to encourage more
adoptions of children in foster care when adoption is in the best interest of the
child, including services to expedite the adoption process and support adoptive
families.
Federal child welfare funding has long been criticized for
entitling states to reimbursement for foster care placements, while providing
little funding for services to prevent such placements. When the Congress
enacted the Adoption Assistance and Child Welfare Act of 1980, it created a new
funding source for foster care and adoption assistance under Title IV-E of the
Social Security Act. Title IV-E provides an open-ended entitlement for foster
care maintenance payments to cover a portion of the food, housing, and
incidental expenses for all foster children whose parents meet certain federal
eligibility criteria.[4] Title
IV-E also provides payments to adoptive parents of eligible foster children
with special needs.[5] While
states could still use Title IV-B funding for foster care and adoption
assistance for children ineligible under Title IV-E, the law established a
dollar cap on the amount of Title IV-B funds that states could use for three
categories of service: foster care maintenance payments, adoption assistance
payments, and child care related to a parent’s employment or training. The law
requires that the total of subpart 1 funds used for these categories cannot
exceed a state’s total 1979 subpart 1 expenditures for all types of services. The
intent of this restriction, according to a congressional document, was to
encourage states to devote increases in subpart 1 funding as much as possible
to supportive services that could prevent the need for out-of-home placements.[6] However,
this restriction applies only to the federal portion of subpart 1 expenditures,
as the law provides that states may use any or all of their state matching
funds for foster care maintenance payments.
For the fourth consecutive year, the President’s budget
proposes a Child Welfare Program Option. HHS developed the proposal to give
states more flexibility in using Title IV-E foster care funds for preventive
services such as those under Title IV-B. Under this proposal, states could
voluntarily choose to receive a fixed IV-E foster care allocation (based on
historic expenditure rates) over a 5-year period, rather than receiving a per
child allocation. States could use this allocation for any services provided
under Titles IV-B and IV-E, but would also have to fund any foster care
maintenance payments and associated administrative costs from this fixed grant
or use state funds. No legislation to enact this option has been introduced.
States Used Subparts 1 and 2 to
Support Similar Services and Populations, but Funding Emphasis Differed
While overlap exists, states reported using subpart 1
funding primarily for costs to staff and administer child welfare programs and
serve families in the foster care system, while states reported using subpart 2
funding for family support services and to serve families at risk for child
abuse and neglect. Officials in almost all of HHS’s regional offices supported
retaining the current balance between allowing states some flexibility in use
of funds and targeting some resources toward prevention. States reported in our
survey that flexibility was important to meet the needs of their child welfare
systems, and thus generally preferred the financing structure of subpart 1 over
subpart 2
States Emphasized Different
Services under Subparts 1 and 2
While states funded similar services under subparts 1 and
2, most states reported using subpart 1 funds primarily to pay for costs
associated with operating child welfare programs, while most states reported
using subpart 2 funds for family services as shown in table 1. For example,
states used over 44 percent of subpart 1 funds to pay for staff salaries and
costs to administer and manage programs. In contrast, states spent over 71 percent of subpart 2 funds for services to support, preserve, and reunify
families.
Table 1: States’ Reported Use of Federal
Funds Under Title IV-B, fiscal year 2002
|
|
Subpart 1 |
Subpart 2 |
|
Service Category |
Number of states |
Amount |
Percent |
Number of states |
Amounta |
Percentb |
|
Child Protective Services |
17 |
$40,543,000 |
15.8 |
5 |
$2,248,690 |
0.9 |
|
Program
Operation |
|
Staff positions |
25 |
$70,965,578 |
27.6 |
17 |
$6,229,058 |
2.4 |
|
Administration and management |
16 |
43,143,097 |
16.8 |
18 |
11,614,667 |
4.5 |
|
Subtotal |
n/a |
$114,108,675 |
44.4 |
n/a |
$17,843,725 |
6.9 |
|
Family
Services |
|
Family support/prevention |
17 |
19,840,891 |
7.7 |
28 |
127,430,496 |
49.8 |
|
Counseling and mental health services |
2 |
8,350,562 |
3.2 |
5 |
1,354,763 |
0.5 |
|
Family preservation |
7 |
5,986,045 |
2.3 |
23 |
30,308,896 |
11.8 |
|
Family reunification |
4 |
2,446,570 |
1.0 |
26 |
23,625,973 |
9.2 |
|
Subtotal |
n/a |
$36,624,068 |
14.2 |
n/a |
182,720,128 |
71.3 |
|
Foster care
and adoption |
|
Foster care maintenance payments |
17 |
27,890,783 |
10.8 |
2 |
647,154 |
0.3 |
|
Adoption subsidy payments |
7 |
4,657,546 |
1.8 |
2 |
737,412 |
0.3 |
|
Recruitment and training for foster/adoptive parents |
9 |
2,260,061 |
0.9 |
16 |
6,828,885 |
2.7 |
|
Adoption support and preservation services |
2 |
446,877 |
0.2 |
27 |
28,481,585 |
11.1 |
|
Subtotal |
n/a |
$35,255,267 |
13.7 |
n/a |
$36,695,036 |
14.4 |
|
Miscellaneous |
|
Multiple responsesc |
8 |
25,806,347 |
10.0 |
4 |
3,503,585 |
1.4 |
|
Other |
11 |
4,817,180 |
1.9 |
15 |
12,795,915 |
5.0 |
|
Subtotal |
n/a |
$30,623,527 |
11.9 |
n/a |
$16,299,500 |
6.4 |
|
Totald |
n/a |
$257,154,537 |
100.0 |
|
$255,807,079 |
100.0 |
Source: GAO survey.
Notes: Percentages do not always total to 100 due to
rounding.
Data on subpart 1 expenditures are based on survey
responses from 46 states and data on subpart 2 expenditures are based on survey
responses from 44 states. While Pennsylvania responded to our survey, it did
not provide expenditure data for subparts 1 or 2.
- When providing data for
our survey, states were asked to indicate the single service category that best
described the type of program funded by subparts 1 and 2. States may not have
been consistent in categorizing services. For example, several HHS officials
told us that the delineation between family support and family preservation
services is not clear, thus two states providing the same services to the same
types of families may report them in different categories. Inconsistencies such
as these could have an effect on any measured differences among service
categories.
- States may spend less than
20 percent of their subpart 2 funds on any of the required service categories
if they have a strong rationale. Some HHS regional officials said that they
approve exceptions to the 20 percent requirement if a state is spending a
significant amount of nonfederal funds on a subpart 2 service category.
- Although states were asked
to indicate the single service category that best described the type of program
funded by subparts 1 and 2, several states selected multiple program categories
when responding to our survey. For example, Rhode Island reported that it
funded a home visitation program and indicated that this program includes
family support, health, and family reunification services. Thus, the responses
from states that reported multiple categories for a program are represented by
this category.
- The aggregate dollars
reported in the service categories do not match the total allocations for
subparts 1 and 2 in fiscal year 2002. States have 2 years to spend their Title
IV-B allocations. As a result, expenditures in fiscal year 2002 may include
dollars from a state’s fiscal year 2001 Title IV-B allocation, as well as its
fiscal year 2002 Title IV-B allocation. Similarly, some fiscal year 2002 allocations
may not have been spent until fiscal year 2003.
Subpart 1 Services
The majority of subpart 1 funds were spent on staff
salaries, and Washington officials said that in their state, over half of these
costs paid for staff providing direct services to children and families. Overall,
states reported that nearly half of Title IV-B funds used for staff salaries
supported social worker positions in child protective services. Another 20
percent of funds supported positions for other social workers. The remaining
costs supported other staff including those providing supervision of
caseworkers and legal services. (See fig. 1.)
Figure 1: Proportion of Title IV-B Funds
States Reported Using to Support Staff Salaries under Subpart 1 by Position,
Fiscal Year 2002 Notes: Some states spent subpart 1 funds on salaries, but
could not provide information on the types of staff positions included.
Percentages do not total to 100 due to rounding.
The remaining subpart 1 funds were split fairly evenly
among administration and management, child protective services, and foster care
maintenance payments:
- Administration
and management comprised the second largest category of subpart 1 expenditures,
accounting for almost 17 percent of subpart 1 dollars. These services included
rent and utilities for office space, travel expenses for agency staff, and
staff training.[7]
- Child
protective services represent the third largest category of subpart 1
expenditures. States reported using about 16 percent of their subpart 1 funds
to provide a variety of CPS services, such as telephone hotlines for the public
to report instances of child abuse and neglect, emergency shelters for children
who needed to be removed from their homes, and investigative services.
- States
reported using nearly 11 percent of their subpart 1 funds to make recurring
payments for the room and board of foster children who were not otherwise
eligible for federal reimbursement. For example, New Jersey officials reported
spending over half of the state’s subpart 1 funds on foster care maintenance
payments.
Subpart 2 Services
States reported using over 70 percent of their subpart 2
dollars on serving families, with nearly half of these funds used to fund
family support and prevention services. These services included mentoring
programs to help pregnant adolescents learn to be self-sufficient, financial
assistance to low-income families to help with rent and utilities, parenting
classes, child care, and support groups provided by community-based resource
centers.
The remaining subpart 2 funds were split fairly evenly
among family preservation, family reunification, and services to support and
preserve adoptive families.
- Family
preservation services accounted for nearly 12 percent of subpart 2 dollars. Services
provided by Washington state in this category included counseling and parent
training services for up to 6 months for families with children who were at
risk of being placed in foster care.
- Adoption
support and preservation services accounted for over 11 percent of subpart 2
dollars. With these funds, states provided services such as counseling for
children who were going to be adopted, family preservation services to adoptive
families, and respite care for adoptive families. Officials in Ohio reported using almost half of its subpart 2 dollars for adoption services, including
post adoption services and services to recruit families for children in need of
homes.
- Family
reunification services accounted for over 9 percent of subpart 2 funds. These
services included supervised visitation centers for parents to visit with their
children who were in foster care and coordinators for alcohol and drug
treatment services for families whose primary barrier to reunification was
substance abuse. New Jersey funded a supervised visitation program that offered
parenting education, counseling, transportation, and support groups and was
located in a private home, allowing families to visit together in a homelike
setting and engage in more natural interactions.
States Emphasized Different
Populations Served Under Subparts 1 and 2
States served similar populations under subparts 1 and 2;
however, states reported using most subpart 1 funds primarily to serve families
whose children had been removed from the home, while most subpart 2 funds were
reported to serve families with children at risk of removal due to child abuse
or neglect, as shown in table 2. For example, states used 42 percent of subpart
1 funds to serve children in foster care and/or their parents. In contrast,
states used 44 percent of subpart 2 funds for children at risk of child abuse
and neglect and/or their parents.
Table 2: Populations Served under Subparts
1 and 2 of Title IV-B as Reported by States, Fiscal Year 2002
|
|
Subpart 1 |
Subpart 2 |
|
Population served |
Number of services |
Amount of funding |
Percent of funding |
Number of services |
Amount of funding |
Percent of funding |
|
Children in foster care and/or their parents |
33 |
$34,732,673 |
42 |
46 |
$15,218,065 |
9 |
|
Children at risk of child abuse and neglect and/or
their parents |
28 |
13,751,328 |
17 |
133 |
73,996,404 |
44 |
|
Multiple populations |
21 |
11,949,444 |
14 |
43 |
18,119,756 |
11 |
|
Children at risk of child abuse or neglect and/or
their parents and children living in foster care and/or their parents
|
12 |
7,077,448 |
9 |
39 |
17,606,172 |
11 |
|
All populations |
5 |
7,513,368 |
9 |
7 |
11,028,464 |
7 |
|
Children waiting for adoption, adopted children, and
adoptive parents |
9 |
4,153,271 |
5 |
54 |
27,340,372 |
16 |
|
Other populations, such as delinquent teens and
foster parents |
10 |
3,492,142 |
4 |
16 |
3,336,070 |
2 |
|
Totala |
118 |
$82,669,674 |
100 |
338 |
$166,645,301 |
100 |
Source: GAO survey.
Note: This analysis is based on survey responses from 35
states with state-administered child welfare systems that provided population
data for their subpart 1 services and 39 states with state-administered child
welfare systems that provided population data for their subpart 2 services.
Therefore, these data can only be generalized to states with state-administered
child welfare systems.
The dollar totals in this
table do not match those in table 1 because we do not have population data from
states that completed the county-administered survey. Due to the differences in
information available from states with county-administered child welfare
systems, we did not request data from these states on the types of children and
families who received services funded by Title IV-B. In addition, we did not
collect data on the populations served for the category of staff salaries, and
we excluded population data for the category of administration and management
expenses since these expenses are not targeted to a particular population of
children and families.
In our survey, we asked states for more detailed
information about the populations served by programs under subparts 1 and 2,
such as demographic and socioeconomic characteristics. However, few states were
able to provide this data. For selected subpart 1 services, 10 states were able
to estimate the extent to which the same children and families also received
services under subpart 2:
- four
states reported that generally none or almost none of the recipients also
received a service funded by subpart 2,
- three
states reported that generally less than half of the recipients received
subpart 2 services,
- one
state reported that all or almost all recipients received subpart 2 services,
and
- two
states provided varying estimates for different subpart 1 services.
HHS Officials and States Supported
Flexibility of Title IV-B Funding
Officials in almost all of HHS’s regional offices
supported retaining the current balance between allowing states some
flexibility in use of funds and targeting some resources toward prevention,
regardless of whether federal funding sources are combined under alternative
financing options. One regional official noted that the current financing
structure of subpart 1 gives states the flexibility to address unexpected
circumstances affecting the child welfare system—for example, the need to
develop substance abuse treatment programs for parents affected by the cocaine
epidemic of the 1980s.[8] Other
regional officials noted that the spending requirements under subpart 2 helped
ensure that states used some funds on family support services and prevention
activities to help preserve families and keep children from entering foster
care.
States reported in our survey that flexibility was
important to meet the needs of their child welfare systems, and thus generally
preferred the financing structure of subpart 1 over subpart 2, as shown in
figure 2.
Figure 2: State Reported Preferences for
Financing Structure of Subparts 1 and 2 of Title IV-B Note: Data on state preferences are based on responses
from 46 states, although they did not all respond to each item.
Federal Oversight Insufficient to
Ensure State Compliance with Title IV-B Spending Requirements under Subpart 1
HHS provided relatively little oversight specific to state
spending under subpart 1. HHS does not collect data on subpart 1 expenditures,
relying instead on cursory reviews of plans submitted by states that discuss
how they intend to use their subpart 1 funds in the coming year. HHS regional
officials reported that they review these plans for relatively limited purposes
because there are few restrictions on how states can spend subpart 1 dollars. We
also found that HHS regional offices had paid little attention to statutory
limits in states’ planned use of subpart 1 funds. In response to our survey, 10
states reported actual 2002 subpart 1 expenditures that exceeded the spending
limits by over $15 million in total.
HHS Had Little Information about
States’ Use of Subpart 1 Funds
HHS received forms from states each year that showed how
they planned to spend subpart 1 funds, but had little information on how states
actually spent these funds. Officials from four HHS regional offices said that
they generally reviewed the forms to ensure that states were requesting the
total amount of subpart 1 funds to which they were entitled, and that they
complied with the requirement to match 25 percent of subpart 1 funds with state
funds. Most regional offices indicated that their review of the state submitted
forms focused more on subpart 2 than subpart 1. For example, they reported
reviewing planned subpart 2 spending to ensure that states complied with the
requirement to spend at least 20 percent of funds on each of the service
categories and spend no more than 10 percent of funds for administrative
purposes. Several HHS officials said that they did not monitor subpart 1 funds
as closely as other federal child welfare funds due to the relatively small
funding amount and the lack of detailed requirements about how these funds
could be spent.
Oversight of subpart 1 was further limited because
spending plans states provided on the annual forms may not reliably show how
states actually spent Title IV-B funds. HHS officials explained that states’
actual expenditures may vary from planned expenditures as states address
unforeseen circumstances. The timing for submitting the annual forms also
affected how well states could plan Title IV-B spending. HHS required states to
submit their initial spending plans for the upcoming year by June 30, prior to
states receiving information on program appropriations for the upcoming year.
While we did not conduct a review comparing state submitted planned
expenditures to actual expenditures for previous years, we did identify
instances that suggested differences in planned and actual expenditures as well
as data on actual expenditures that were not always accurate. For example, two
states with county-administered child welfare systems said they could not
reliably estimate planned spending by service category because the states did
not collect expenditure data from county child welfare agencies that administer
Title IV-B funds.[9]
One regional official explained that the only way to
determine how a state actually used its Title IV-B funds was to review its
financial accounts. At the time of our review, three regional offices had
indicated that they had begun asking states to provide Title IV-B expenditure
data.
HHS Regional Offices Were Unaware
of Spending Limits or Did Not Enforce Them
HHS regional offices paid little attention to the
statutory limits on the use of subpart 1 funds for foster care maintenance and
adoption assistance. Officials in only 1 of HHS’s 10 regional offices said that
they ensured state plans complied with statutory spending limits for subpart 1.
In contrast, 5 regional offices were unaware that any limits on the use of
subpart 1 funds existed. Four other regional offices were aware that some
limitations existed, but did not ensure state compliance with them.
Two regional offices said they did not monitor planned
expenditures for subpart 1 because they had no data to calculate the spending
limit for each state, and HHS had not provided guidance on how to enforce the
limits. Officials in another region said that their office discontinued subpart
1 compliance reviews because they considered the limits to be meaningless
because state and federal funds are fungible and state funds spent on child
welfare services greatly exceeded subpart 1federal funds. In other words, any
attempt to enforce the limits, according to these officials, would only lead to
changes in how states accounted for state and federal funds.
Some states reported in our survey that they spent 2002
subpart 1 funds in excess of the statutory authority for foster care maintenance
and adoption assistance payments. (See fig. 4.) While spending excesses were
small in some states, they were large in others, ranging from a low of $27,000
in New Hampshire to nearly $4 million in Michigan. In total, reported actual
spending by the 10 states exceeded the statutory limit by over $15 million.
Figure 4: States Reporting Actual
Expenditures in Excess of Statutory Authority for Foster Care Maintenance and
Adoption Assistance Payments under Title IV-B, Subpart 1, Fiscal Year 2002
Subsequent to our review, ACF issued guidance to states
reminding them of the statutory spending limits for Title IV-B subpart 1 funds
in November 2003. This guidance included information needed by each state to
calculate its spending limit for foster care and adoption assistance payments,
and day care related to employment or training.Little Research Existed on the
Effectiveness of Title IV-B Services
Research on the effectiveness of services provided under
subpart 1of Title IV-B was limited, and HHS evaluations of subpart 2 services
showed no or little effect on children’s outcomes. In our survey, 22 states
reported providing services other than maintenance payments, staff salaries, or
administration under subpart 1; however, none of these states had evaluated the
outcomes of these services. One state official said that few states could
afford to divert resources away from direct services to families in order to
conduct formal program evaluations, given the tremendous service needs of families
involved in the child welfare system.
Similarly, our literature review showed that few
evaluations had been conducted, and evaluations that had been conducted
produced mixed results. For example, one study evaluating a program[10] in
Texas to increase family literacy and prevent child abuse by enhancing
parent-child interactions cited results showing positive effects on children’s
measured competence and classroom behavior. However, evaluation of the same
program in New York did not consistently show differences in outcomes for
children and parents in the program compared to those in a control group.
HHS evaluations of subpart 2 services also have shown no
or little effect, as reported by the Congressional Research Service.[11] The
Congress required HHS to evaluate the effectiveness of programs funded under
subpart 2 as part of its initial approval of funding for family preservation
and family support services. HHS focused on the use of subpart 2 funds in three
large-scale evaluations. One looked at overall implementation issues for the
program, the second looked at the effectiveness of two models of family
preservation services (both providing relatively intensive casework), and the
third looked at the effectiveness of a wide range of family support services. Overall,
the findings were similar across all evaluation sites showing subpart 2
services provided no or little effect in reducing out-of-home placement,
maltreatment recurrence, or improved family functioning beyond what normal
casework services achieved.[12] No
similar large scale evaluations of time-limited reunification services or of
adoption promotion and support services have been made.
Prior Recommendations
Our 2003 report recommended that the Secretary of HHS
provide the necessary guidance to ensure that HHS regional offices are
providing appropriate oversight of subpart 1, consider the feasibility of
collecting data on states’ use of these funds to facilitate program oversight
and guidance to states, and use the information gained through enhanced
oversight of subpart 1 to inform its design of alternative child welfare
financing options. ACF agreed with our findings and implemented guidance to
states reminding them of the statutory requirements for subpart 1 spending. ACF
disagreed with our recommendation to consider collecting data on subpart 1
expenditures. ACF believed that its level of oversight was commensurate with
the scope and intent of subpart 1, noting that its oversight efforts are more
appropriately focused on reviews of the states’ overall child welfare systems. ACF
did not comment on our recommendation to use such data to inform the design of
an alternative financing option.
Mr. Chairman, this completes my prepared statement. I
would be happy to respond to any questions you or other Members of the Subcommittee
may have.
[1]GAO,
Child Welfare: Enhanced Federal Oversight of Title
IV-B Could Provide States Additional Information to Improve Services, GAO‑03‑956 (Washington, D.C.: Sept. 12, 2003).
[2]States
are required to provide matching funds in order to receive federal Title IV-B
funding.
[3]HHS
program instructions require states to spend at least 20 percent of their
subpart 2 funds on each of the four service categories, unless a state has a strong
rationale for some other spending patterns. By statute, states can spend no
more than 10 percent of subpart 2 funds on administrative costs.
[4]States
are entitled to Title IV-E reimbursement on behalf of children who would have
been eligible for Aid to Families with Dependent Children (AFDC) (as AFDC
existed on July 16, 1996), but for the fact that they were removed from the
home of certain specified relatives. While the AFDC program was replaced by the
Temporary Assistance for Needy Families program in 1996, eligibility for Title
IV-E payments remains tied to the income eligibility requirements of the now
defunct AFDC program. In addition, certain judicial findings must be present
for the child, and all other requirements included in section 472 (a) and (b)
of the Social Security Act must be met, in order for the child to be eligible
for Title IV-E foster care maintenance payments.
[5]Special
needs are characteristics that can make it difficult for a child to be adopted
and may include emotional, physical, or mental disabilities, emotional
disturbance, age, or being a member of a minority race. To qualify for an
adoption subsidy under Title IV-E, a state must determine that the child cannot
or should not return home; a state must make a reasonable, but unsuccessful
effort to place the child without the subsidy; and a specific factor or
condition must exist that makes it difficult to place the child without a
subsidy.
[6]Staff
of the House Committee on Ways and Means, 106th Congress, Background Material
and Data on Programs Within the Jurisdiction of the Committee on Ways and Means
(Comm. Print 2000).
[7]This
amount may be understated since some states may not have separately reported
administrative expenses associated with a specific program. For example,
officials in one state reported that the total spending for a family support
program included salaries for agency staff, overhead expenses, and related
staff travel.
[8]States
face similar challenges addressing the service needs of families caused by the
current epidemic of methamphetamine use.
[9]Most
states administer their child welfare systems at the state level; however a few
states delegate administrative responsibility and control to counties or other
local entities. Several large states, such as California, New York, Ohio, and Pennsylvania, are county-administered.
[10]The
Home Instruction for Parents of Preschool Youngsters (HIPPY) program has a goal
to prevent academic underachievement of children when they enter school. HIPPY
works with parents in their homes or in parent groups to increase the degree of
literacy in the home. The program also seeks to prevent child abuse by
enhancing child-parent interactions and focuses on economically disadvantaged
parents who may not be involved in parenting programs.
[11]Congressional
Research Service, The Promoting Safe and Stable
Families Program: Reauthorization in the 109th Congress, April 7, 2006.,
pp. 10-18.
[12]U.S. Department of Health and Human Services, Evaluation of
Family Preservation and Reunification Programs, Final Report (Volumes 1 and 2),
Dec. 2002. | |