MIFed Policy Press February 2012: Issue 62 Policy Press

Michigan Federation for Children and Families

Your guide to keeping up to date with the latest legislative and policy news in the child welfare field!

In this Issue: State

Updates - Bills Merging Mental Health, Substance Abuse Services Head to Floor - Governor Delivered Second Executive Budget Presentation: What Are Legislative Leaders Saying Now? -Residential Contract Negotiations Resume

Resource Corner

-Federation Calendar

Celebrating 40 years of advocating on behalf of vulnerable children and families!

STATE NEWS

- Obama Releases FY 2013 Budget Proposal -House Subcommittee Passes Homeless Children and Youth Act

National News

Bills Merging Mental Health, Substance Abuse Services Head to Floor

A package of bills that would merge mental health and substance abuse services received bipartisan support in the House Health Policy Committee Thursday, February 16, and now heads to the floor. HB 4862 and HB 4863 received a lot of committee support, with the exception of the vote of Representative Gail Haines (R-Lake Angelus), committee chair.

A number of amendments were added to the bills, but they did not sufficiently address concerns raised by Oakland County health officials, who said their system is run efficiently, and these tie-barred bills might add costs and do a disservice to their clients. Representative Haines, represents a portion of Oakland County and said that is why she opposed the bills. However, Representative Haines felt there was value in the bills sponsored by Representative Earl Poleski (R-Jackson), which is why she allowed the bills to move forward.

Representative Poleski said the goal of the bills is to make sure that those who suffer from mental health and substance abuse issues are treated as well as the limited resources allow, and to create an opportunity for administrative efficiencies that could lead to more funding being available to go toward treatment. If the bills become law, substance abuse coordinating agencies would be rolled into community mental health.

Amendments added in committee aimed to provide more oversight in areas where a community mental health agency covers more than one county. In those cases, a substance abuse advisory board would be created to act as a watchdog on the substance abuse process. Each county involved would have at least one member on the committee.

The bills’ effective date was also moved from October 1, 2012 to January 1, 2013, to give the organizations more time to make the transition. The Federation will continue to closely monitor action taken on this bill package and any related policy developments.

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MiFed Policy Press February 2012: Issue 62

Governor Delivered Second Executive Budget Presentation: What Are Legislative Leaders Saying Now?

In a joint hearing of the House and Senate Appropriations Committees on Thursday, February 9, 2012, Governor Rick Snyder delivered his second Executive Budget Presentation, with the support of Lieutenant Governor Brian Calley and Budget Director John Nixon. A full summary of this presentation and highlights of the Executive Budget are available to Federation Membership at the following link: http://www.michfed.org/2012_executive_budget_presentation

Governor Snyder stated that the fiscal year 2012 budget took a “common sense responsibility” approach to eliminating the $1.5B deficit in our state. The FY 2013 budget is going to be about empowering our people and continued relentless positive action. The Governor’s reinvention of Michigan is based on a vision of developing more and better jobs, and focusing on our state’s children, with the goal of having 100% of Michigan’s kids college and career ready. Governor Snyder believes that a strong partnership between the public and private sectors will create jobs and make a difference for kids.

The FY 2013 Budget the Governor presented amounts to $48.2B in total; 76% of this overall funding is within the Health and Human Services and Education categories alone. The Governor’s proposed budgets for each of fiscal years 2013 and 2014 recommend total funding of $6.6 billion for Human Services, of which $1 billion is general fund. In addition, one-time funding of $16.2 million, $7.9 million general fund, is recommended for fiscal year 2013. With all of these highlights, what are the legislators saying?

Director Corrigan has often talked about the goal of increasing the number of foster parents in the state this year, as is mandated by the modified settlement agreement, and Governor Snyder proposed a financial incentive to help in that effort. At a cost of $11.3 million ($6.3 million general fund), foster parents would receive about $1,000 more per year. The amounts those parents receive hasn't been increased since 2003.

Senator Bruce Caswell (R-Hillsdale), Senate Appropriations Human Services Subcommittee chair, said the extra money for foster parents is nice, but that money alone is not going to entice more people to become foster parents.

The Governor also proposed a new in-hospital paternity testing program, the idea being genetic testing would lead to an increased child support collections by establishing more paternities. It would cost $1.8 million ($600,000 general fund). "I want to know where that one is going," said Representative David Agema (R-Grandville), chair of the DHS budget in the House. A DHS spokesperson said the genetic testing would be done at birth and be voluntary. As family and living situations change, the Department could save time from having to investigate and find the responsible father later, he said. Chairman Agema said he had other questions about this program and will be working the Department to address them.

For the programs receiving increased funding, Chairman Agema said he wants to know what is being done now and if giving more to some programs will result in savings down the line - especially in giving smartphones to caseworkers. "If this is going to do that, I'm all for it," the Representative said. The budget proposes $935,000 to provide smartphones and laptops to staff members in the child welfare, licensing and inspector general staff. This will allow staff members to spend more time in the field, rather than in the office, and will also provide some enhanced safety measures. The phones will include a push-button to make a distress call and have a GPS locator. The money for the new technology came from savings made internally. Continued on page 3

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MiFed Policy Press February 2012: Issue 62

Executive Budget, Continued… Chairman Caswell applauded the move as well, saying it will allow the department to use its resources more effectively. "I like that workers are going to be made mobile," Senator Caswell said.

Senator Vincent Gregory (D-Southfield), minority vice chair of the human services budget, said it was good to see the governor recognize areas that needed help, including adult services. "It is a positive step," he said.

Chairman Caswell said he was glad to see the budget focus on self-sufficiency and prevention as well. The Governor’s budget invests over $942 million ($359 million general fund) in Michigan’s child welfare system, an overall increase of about $60M over FY 2012. Child welfare improvements continue to be a priority for fiscal year 2013. During the last six years, Michigan has invested $283 million ($191 million general fund) to enhance child welfare services for abused and neglected children. These funds support staff for child protective services, foster care, adoption and contract monitoring; private agency staffing and administrative costs; a needs assessment to aid in service provision; a federally required child welfare automation system and expansion of foster care program eligibility to age 21. Together, these improvements to the child welfare system help keep children safe in their own homes and, when necessary, support alternative living arrangements including foster care and adoption.

Residential Contract Negotiations Resume On Monday, February 13, the Residential Contracting Workgroup that has been meeting with DHS Leadership for the past 18 months, and under two administrations, resumed meetings at the Federation offices. In attendance at the meeting representing DHS Leadership was Director of Children's Services Administration Steve Yager; Director of Policy and Program Office Suzanne Stiles Burke; Mary Mehren, Federal Compliance Unit; Foster Care Program Manager Nancy Rostoni; and Director of DHS Office of Logistics and Rate Setting John Ferrigan. Every single private agency that has been involved in this group since its inception was represented at the meeting, which has been a collaboration of both Federation membership and other private agency leaders. The DHS provided a draft copy of the contract, a new version that incorporates much of the work done by the workgroup over the past year and a half. The Department acknowledged there is a contract extension is in place now through September 30, 2012, but the goal is to have the new contract in place before then. Private agency representatives have been asked to review the document and provide feedback to Federation Policy Analyst Kadi Janssen before Monday, February 20 in order that all comments may be compiled and shared with DHS for review prior to the next meeting. The workgroup will be meeting again at the Federation offices on Wednesday, February 29, at which time the Department will be distributing a second draft contract based upon the workgroup’s feedback.

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MiFed Policy Press February 2012: Issue 62

Obama Releases FY 2013 Budget Proposal This year’s budget debate officially kicked off on Monday with President Obama’s release of his Fiscal Year 2013 (FY 2013) Budget. With a $1.3 trillion deficit projected for 2013, deficit reduction is going to be a major theme again in the coming budget year discussions. President Obama’s budget proposal includes a number of cuts to reduce federal expenditures over the next decade, including $520 billion in savings from non-defense, discretionary programs, $487 billion from defense spending, $217 billion from mandatory programs, and $360 billion from health care entitlements including Medicaid.

For the Department of Health and Human Services specifically, the budget proposal provides $76.4 billion, or $0.3 billion above the 2012 funding level. The budget strengthens Medicare, Medicaid, and other health programs by implementing payment innovations and other reforms that encourage high quality and efficient care, improve program integrity, and preserve the fundamental compact with seniors, individuals with disabilities, and low-income Americans these programs serve.

The President's budget proposal also includes $140 million for critical juvenile justice programs. Specifically, the President has requested the following: $70 million for the Juvenile Justice and Delinquency Prevention Act (JJDPA) Title II State Formula Grants Program (increase of $30 million over FY12 final); $40 million for JJDPA Title V Delinquency Prevention Program (an increase of $20 million over FY12 final) with no earmarks or set asides taken out; and $30 million for the Juvenile Accountability Block Grant (JABG) Program. These funds support vital state efforts to effectively strengthen juvenile court services, such as behavioral health screening and assessment for court-involved youth and alternatives to detention.

Despite the difficult fiscal condition the federal government is in, Obama does propose increases for some important programs, notably child care and Head Start. The vast majority of child welfare programs are again flat-funded, meaning though they are not directly being cut, their funding is not keeping up with inflationary costs. The budget includes a number of additional legislative proposals. Among these is the $2.5 billion (over 10 years) incentive program for foster care that first appeared in the President’s budget last year, a proposal to make permanent the TANF Supplemental Grant program, and enhancements to the child support program. It also proposes reforms to foster care in order to improve outcomes for children including promoting their social and emotional well-being.

House Subcommittee Passes Homeless Children and Youth Act On February 8, the House Financial Services Committee’s Insurance, Housing, and Community Opportunity Subcommittee passed by voice vote the Homeless Children and Youth Act (H.R. 32). This bill streamlines the homeless referral process by amending the U.S. Housing and Urban Development (HUD) definition of homelessness to include children, youth, and their families who are verified as homeless by other federal programs, including McKinney-Vento school district liaisons, Head Start programs, Runaway and Homeless Youth Act programs, and Individuals with Disabilities Education Act, Part C early intervention programs. Modeled on child nutrition and higher education policies, it also allows these programs to refer clients to HUD in addition to making them eligible for HUD services. In practice, these changes would cover children, youth and families who live in temporary, unstable situations, including with other households and in motels. The Federation will be monitoring the movement on this bill.

NATIONAL NEWS

MiFed Policy Press February 2012: Issue 62

Michigan Federation for Children and Families 320 N. Washington Square, Suite 100

Lansing, MI, 48933

P: 517-485-8552 F: 517-485-6680

Resource Corner

Upcoming Meetings: Mark Your 2012 Calendars!

March 8: Federation Board of Directors Meeting

March 14: HR Lunch and Learn and HR MIN Meeting

April 18: Adoption, Licensing, Foster Care, IL/Homeless Youth

MIN Meetings

April 25: Residential Treatment MIN

May 9: Annual Spring HR Training Day at the Michigan Chamber

of Commerce

June 19-20: 2012 Michigan Teen Conference at Ferris State Univ.

2012 Board meetings: Thursday March 8; Wednesdays, June 13,

September 12, November 14, 2012

This publication is a benefit of membership of the Michigan Federation for Children and Families.