INDIANAPOLIS – State officials on Friday announced 10 percent cuts in foster care per-diem rates and adoption assistance, a move that will save $17.5 million over the biennium.
The Indiana Department of Child Services has been given the task by Gov. Mitch Daniels to reduce their agency’s spending, and the foster care and adoption payments are the first significant element of those cuts.
The reduction begins Jan. 1.
"These were incredibly difficult deliberations and everyone involved recognizes the magnitude of the decisions made. At the heart of the discussion was the focus on our primary responsibility – protecting Indiana’s abused and neglected children," DCS Director James Payne said. "This rate reduction, while unfortunate, still keeps Indiana foster care rates higher than most states.
"DCS places a high value on foster parents and we believe they are an essential part of the team of professionals providing the highest quality service for children in our care. These are difficult times for everyone and we hope that state revenues will begin to rise soon."
To accompany the announced cuts, the agency quoted a 2007 report called Foster Care Minimum Adequate Rates for Children to show that Indiana’s regular foster care per diem was among the highest in the nation.
That report revealed that 49 states were falling short of adequate reimbursement rates for foster families at the time of the study. The report said that states across the nation would need to raise the rates by which they reimburse foster parents by an average of 36 percent to cover the actual costs of supporting a child in foster care.
But Indiana’s $760 monthly foster care rate actually fared well in two of the three categories rated. The latter category called for just a 4 percent increase.
But the 10 percent cut brings the monthly payment down to $684, – now below the amount recommended by that report in two of the three categories.
"Historically we know that these kinds of things make an impact. It’s a tough time for everyone," said Chris Morrison, executive director of the Indiana Foster Care and Adoption Association. "It seems often that women and children and families are the first to get hit."
She said it is hard to say whether the cut will deter people from being foster parents.
"People become foster parents to help children," Morrison said. "They might have the motivation, but if you can’t feed your own family, it’s hard to bring someone else into the home."
The maximum monthly adoption payments are tied to the foster care per-diem rates and will also see a 10 percent reduction.
This week, DCS announced cut to other programs and services contracted through the agency. The Healthy Families Program, Youth Services Bureau, Project Safe Place, Residential Services, and Child Welfare Services will see reductions in their rates beginning Jan. 1.
