December 5, 2005 |
2005-R-0810 | |
STATE-BY-STATE COMPARISON OF ADOPTION AND FOSTER CARE COSTS | ||
| ||
By: Susan Price, Associate Attorney Ryan F. O'Neil, Research Assistant | ||
You asked how much states spend on their foster care and adoption assistance programs.
SUMMARY
Foster care and adoption programs are funded by a wide array of federal, state, local, and private sources. States vary significantly both in the amounts and proportion of government funds they use to pay for their programs. For example, while the average mix is 51% federal, 37% state, and 12% local, Indiana’s program used only 30% federal funds; North Carolina, by contrast used about 78%.
This report describes the major funding streams and restrictions on how they can be used. Table 1 describes federal funding guidelines in general, while Table 2 provides a 50-state snapshot using data collected for state fiscal year 2002.
DEDICATED FEDERAL CHILD WELFARE FUNDS
Titles IV-E and IV-B of the Social Security Act authorize the largest federal programs dedicated for child welfare. Title IV-E, the largest funding stream, consists of the Foster Care and Adoption Assistance programs, which are open-ended entitlements, the Chafee Foster Care Independence Program, which is a capped entitlement; and a non-entitlement funding authorization for education and training vouchers to youth who have aged out of foster care.
Title IV-B authorizes discretionary and capped entitlement funding to the states and consists of two sub-parts – Child Welfare Services and Promoting Safe and Stable Families. There are also several small discretionary grants targeted for child welfare, which are briefly discussed below.
Title IV-E
Purposes. The Foster Care Program reimburses states for maintenance payments provided to cover shelter, food, and clothing costs for eligible children in care; placement and administrative costs; and training for staff and foster and adoptive parents. The Adoption Assistance Program reimburses states for payments to adoptive parents of eligible special needs children; administrative costs; training for staff and adoptive parents; and nonrecurring expenses, such as court costs and attorneys fees associated with the adoption of special needs children.
The Chafee Foster Care Independence Program provides funding to states for services and programs to prepare youth in foster care (or those who have aged out of the system) to live independently. Its funding is capped at $ 140 million a year, and state allocations are based on each state’s share of the nation’s foster care population.
Eligibility Requirements. Not every foster child is eligible for Title IV-E. For example, 264,670 out of 540,563 (48. 9%) of the children in the child welfare system were IV-E eligible during state fiscal year 2001.
States can claim expenses only for those with family incomes that would have met AFDC (cash welfare) standards in 1995. In addition, (1) the child’s removal and foster care placement must be based on a voluntary placement agreement signed by his parents or a court finding that remaining in the home would be contrary to the child’s welfare; (2) with some exceptions, reasonable efforts were made to avoid removing the child or to return him to the home; and (3) care and placement of the child are the state’s responsibility.
Title IV-B
Two funding streams comprise Title IV-B: (1) the Child Welfare Services Program and (2) Promoting Safe and Stable Families. The former provides grants to states to prevent placement and reunify families, prevent abuse and neglect, and provide services to children in foster care or adoptive homes. Limited funds may be used for foster care maintenance payments, adoption assistance payments, and child day care. The Promoting Safe and Stable Families stream funds activities in four specific areas: (1) family preservation, (2) community-based family support programs, (3) time-limited reunification services, and (4) adoption promotion and support services.
Non-Dedicated Federal Funds
In addition to Title IV funding, states may use federal Temporary Assistance for Needy Families (TANF), Social Services Block Grant (SSBG), Medicaid, and Social Security Disability (SSI) dollars for some services for child welfare clients. Many states use TANF, SSBG, and Medicaid to pay for foster care costs that are not allowable under Title IV-E, including the board and care of children ineligible for that program and therapeutic services for children in care. States can use TANF funds only for child welfare activities that (1) assist needy families so that children may be cared for in their own homes or with relatives; (2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; (3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish numerical goals for preventing and reducing the incidence of these pregnancies; or (4) encourage the formation and maintenance of two-parent families (Social Security Act, Sec. 401(a)).
Table 1 below describes how the federal funds may be used.
Table 1: Uses of Federal Funds
Funding Source/ 2002 Expenditures |
Eligibility |
Services |
Funding Level |
Title IV-B Child Welfare $ 265 million
Promoting Safe and Stable Families $ 283 million Title IV-E Foster Care Maintenance $ 1. 7 billion Administration $ 1. 7 billion Training $ 154 million Title IV-E Adoption Assistance Special Needs Adoption Payments $ 978 million Administration $ 239 million Training $ 39 million Nonrecurring Expenses (included in “Special Needs Adoption Payments” above) Title IV-E Chafee Foster Care Independence Program $ 132 million Title IV-E Statewide Automated Child Welfare Information System (SACWIS) $ 130 million TANF $ 2. 7 billion SSBG $ 875 million Medicaid $ 1. 1 billion SSI $ 72 million |
No eligibility criteria No eligibility criteria Certain very low income children (income and assets no more than those allowed under 1995 AFDC program Expenses associated with Title IV-E eligible children in foster care and proportional administrative expenses for the protective services population Cost of training proportional to number of children eligible for IV-E Special needs children eligible for AFDC or Supplemental Security Income (SSI) Expenses associated with children eligible for Title IV-E adoption assistance Cost of training proportional to number of children eligible for IV-E Special needs children Youth (no minimum age) likely to remain in foster care until age 18; youth age 18-21 who have aged out of foster care Not applicable Needy families with children (as defined by state law); no need requirement for services to prevent or reduce pregnancy or encourage family formation Varies by state Varies by state, but all IV-E eligible children are eligible; non-IV-E foster and adoptive children are eligible at state option, as are former foster youth age 18-21 Low-income children and adults who are aged, blind, or disabled |
Abuse and neglect prevention, family reunification, adoption, and ensuring adequate foster care Family support to avert foster care, time-limited family reunification services, and adoption promotion Payments to foster parents to cover basic maintenance and parental visits Placement services, case management, eligibility determinations, licensing and recruiting foster parents Training agency staff and foster parents Payments to adoptive parents, not exceeding comparable foster care rates, to cover basic maintenance costs, including food, shelter, daily supervision, school supplies, insurance, and incidentals Child placement and other administrative activities Training of agency staff and adoptive parents (not private contractors) Reasonable and necessary adoption fees, court costs, attorney fees, and related expenses Basic living skills training, education, employment initiatives, substance abuse prevention, and preventive health services Development of automated child welfare information systems Child welfare services must meet one of the four purposes of the program (see text above) or have been in the state’s AFDC plan immediately prior to 1996 welfare reform Discretionary funds for direct social services, as well as administration, training, and case management Targeted case management and rehabilitative services Food, clothing, and shelter and some nonmedical disability-related costs |
Nonentitlement capped at $ 292 million in 2002. 25% state match required. State entitlement capped at $ 375 million in 2002. 25 % state match required. Open-ended entitlement with federal match equal to state Medicaid matching rate Open-ended entitlement with 50% federal match Open-ended entitlement with 75% federal match Open-ended entitlement with federal match equal to state Medicaid matching rate Open-ended entitlement with 50% federal match Open-ended entitlement with 75% federal match Open-ended entitlement with 50% federal match up to $ 2,000 per placement State entitlement capped at $ 140 million in 2002; no more than 30% of funds may be used for housing youth age 18-21; 25% state match required Open-ended entitlement with 50% match for ongoing operational costs States’ entitlement capped at $ 16. 5 billion through 2002; no state match, but states must spend at least 75% of what they spent in 1994 Of the $ 1. 7 billion appropriated in 2002, $ 875 million was spent on child welfare services Open-ended entitlement with a variable federal matching rate, ranging from 50 to 83% depending on state’s per capita income Federally funded program with no state match |
Source: The Urban Institute, “The Cost of Protecting Vulnerable Children (IV),” (2004).
STATE AND LOCAL SPENDING
The majority of state and local spending is on foster children ineligible for IV-E services, either due to family income or placements other than those permitted under federal programs. Other expenditures are necessary to meet the match federal programs impose on the states as a criterion for receiving the federal funds.
Table 2 below shows how much states spend to earn federal matching dollars in Title IV-E programs.
State |
Net Maintenance Payments [2] |
Federal Assistance Matching Percentages |
State Net Maintenance Payment |
Child Placement Services and Administration |
State contribution to Child Placement Services and Administration |
SACWIS (operation and development) |
State Contribution to SACWIS |
Training |
State Contribution to Training |
Demonstrations [3] |
Federal Total |
State Total |
Combined Total |
AL |
6,507,161 |
70. 45 |
9,236,566 |
14,618,219 |
29,236,438 |
3,124,669 |
6,249,338 |
2,562,604 |
3,416,805 |
0 |
26,812,653 |
48,139,148 |
74,951,801 |
AK |
1,913,686 |
57. 38 |
3,335,110 |
6,511,597 |
13,023,194 |
596,552 |
1,193,104 |
1,773 |
2,364 |
0 |
9,023,608 |
17,553,772 |
26,577,380 |
AZ |
20,894,326 |
64. 98 |
32,155,011 |
15,420,921 |
30,841,842 |
989,568 |
1,979,136 |
2,682,946 |
3,577,261 |
0 |
39,987,761 |
68,553,250 |
108,541,011 |
AR |
12,854,952 |
72. 64 |
17,696,795 |
11,654,634 |
23,309,268 |
932,967 |
1,865,934 |
7,241,169 |
9,654,892 |
0 |
32,683,722 |
52,526,889 |
85,210,611 |
CA |
402,213,699 |
51. 40 |
782,516,924 |
615,485,943 |
1,230,971,886 |
65,999,351 |
131,998,702 |
76,786,660 |
102,382,213 |
10,785,467 |
1,171,271,120 |
2,247,869,725 |
3,419,140,845 |
CO |
13,391,878 |
50. 00 |
26,783,756 |
28,337,609 |
56,675,218 |
4,537,856 |
9,075,712 |
861,675 |
1,148,900 |
232,896 |
47,361,914 |
93,683,586 |
141,045,500 |
CT |
13,090,111 |
50. 00 |
26,180,222 |
34,458,341 |
68,916,682 |
0 |
0 |
2,660,269 |
3,547,025 |
-33,830 |
50,174,891 |
98,643,929 |
148,818,820 |
DE |
1,419,222 |
50. 00 |
2,838,444 |
6,936,833 |
13,873,666 |
1,812,853 |
3,625,706 |
447,244 |
596,325 |
50,713 |
10,666,865 |
20,934,141 |
31,601,006 |
DC |
15,840,750 |
70. 00 |
22,629,643 |
8,984,393 |
17,968,786 |
255,261 |
510,522 |
0 |
0 |
0 |
25,080,404 |
41,108,951 |
66,189,355 |
FL |
27,503,714 |
56. 43 |
48,739,525 |
78,852,099 |
157,704,198 |
14,355,767 |
28,711,534 |
6,085,126 |
8,113,501 |
0 |
126,796,706 |
243,268,758 |
370,065,464 |
GA |
28,631,456 |
59. 00 |
48,527,892 |
29,389,502 |
58,779,004 |
-31,494 |
-62,988 |
3,643,191 |
4,857,588 |
0 |
61,632,655 |
112,101,496 |
173,734,151 |
HI |
3,853,508 |
56. 34 |
6,839,737 |
11,926,549 |
23,853,098 |
0 |
0 |
1,265,419 |
1,687,225 |
0 |
17,045,476 |
32,380,061 |
49,425,537 |
ID |
1,866,335 |
71. 02 |
2,627,901 |
3,277,786 |
6,555,572 |
390,020 |
780,040 |
156,919 |
209,225 |
0 |
5,691,060 |
10,172,738 |
15,863,798 |
IL |
56,315,965 |
50. 00 |
112,631,930 |
88,536,604 |
177,073,208 |
15,735,747 |
31,471,494 |
7,740,502 |
10,320,669 |
152,876,835 |
321,205,653 |
331,497,301 |
652,702,954 |
IN |
25,880,981 |
62. 04 |
41,716,604 |
13,968,129 |
27,936,258 |
3,104,489 |
6,208,978 |
351,494 |
468,659 |
3,569,525 |
46,874,618 |
76,330,498 |
123,205,116 |
IA |
11,513,059 |
62. 86 |
18,315,398 |
7,686,597 |
15,373,194 |
276,079 |
552,158 |
1,036,458 |
1,381,944 |
0 |
20,512,193 |
35,622,694 |
56,134,887 |
KS |
5,003,426 |
60. 20 |
8,311,339 |
21,473,067 |
42,946,134 |
0 |
0 |
1,887,476 |
2,516,635 |
0 |
28,363,969 |
53,774,108 |
82,138,077 |
KY |
28,129,898 |
69. 94 |
40,220,043 |
14,878,936 |
29,757,872 |
1,729,494 |
3,458,988 |
9,432,353 |
12,576,471 |
0 |
54,170,681 |
86,013,374 |
140,184,055 |
LA |
22,355,413 |
70. 30 |
31,800,018 |
23,793,603 |
47,587,206 |
703,251 |
1,406,502 |
5,998,406 |
7,997,875 |
0 |
52,850,673 |
88,791,601 |
141,642,274 |
ME |
25,233,345 |
66. 58 |
37,899,287 |
3,429,040 |
6,858,080 |
1,676,618 |
3,353,236 |
3,448,729 |
4,598,305 |
-364,022 |
33,423,710 |
52,708,908 |
86,132,618 |
MD |
58,320,081 |
50. 00 |
116,640,162 |
64,374,960 |
128,749,920 |
5,790,465 |
11,580,930 |
6,786,518 |
9,048,691 |
5,934,922 |
141,206,946 |
266,019,703 |
407,226,649 |
MA |
31,330,039 |
50. 00 |
62,660,078 |
24,206,179 |
48,412,358 |
-717,174 |
-1,434,348 |
0 |
0 |
0 |
54,819,044 |
109,638,088 |
164,457,132 |
MI |
73,661,114 |
56. 36 |
130,697,505 |
68,995,838 |
137,991,676 |
404,804 |
809,608 |
772,405 |
1,029,873 |
1,039,754 |
144,873,915 |
270,528,663 |
415,402,578 |
MN |
22,634,258 |
50. 00 |
45,268,516 |
33,882,375 |
67,764,750 |
6,706,450 |
13,412,900 |
11,254,576 |
15,006,101 |
0 |
74,477,659 |
141,452,267 |
215,929,926 |
MS |
2,015,038 |
76. 09 |
2,648,230 |
2,982,091 |
5,964,182 |
4,771,549 |
9,543,098 |
131,534 |
175,379 |
88,762 |
9,988,974 |
18,330,888 |
28,319,862 |
MO |
24,900,065 |
61. 06 |
40,779,668 |
35,833,790 |
71,667,580 |
383,305 |
766,610 |
5,993,052 |
7,990,736 |
0 |
67,110,212 |
121,204,594 |
188,314,806 |
MT |
5,821,743 |
72. 83 |
7,993,606 |
3,763,391 |
7,526,782 |
25,217 |
50,434 |
39,448 |
52,597 |
106,587 |
9,756,386 |
15,623,419 |
25,379,805 |
NE |
11,955,428 |
59. 55 |
20,076,285 |
7,065,678 |
14,131,356 |
91,370 |
182,740 |
2,853,150 |
3,804,200 |
0 |
21,965,626 |
38,194,581 |
60,160,207 |
NV |
3,854,147 |
50. 00 |
7,708,294 |
6,418,259 |
12,836,518 |
2,788,043 |
5,576,086 |
772,640 |
1,030,187 |
0 |
13,833,089 |
27,151,085 |
40,984,174 |
NH |
5,077,968 |
50. 00 |
10,155,936 |
4,830,262 |
9,660,524 |
499,832 |
999,664 |
1,279,298 |
1,705,731 |
112,968 |
11,800,328 |
22,521,855 |
34,322,183 |
NJ |
32,553,577 |
50. 00 |
65,107,154 |
40,589,881 |
81,179,762 |
113,956 |
227,912 |
3,833,196 |
5,110,928 |
0 |
77,090,610 |
151,625,756 |
228,716,366 |
NM |
3,383,627 |
73. 04 |
4,632,567 |
7,446,405 |
14,892,810 |
0 |
0 |
5,031,922 |
6,709,229 |
32,593 |
15,894,547 |
26,234,606 |
42,129,153 |
NY |
296,058,821 |
50. 00 |
592,117,642 |
161,251,697 |
322,503,394 |
11,754,680 |
23,509,360 |
10,560,977 |
14,081,303 |
0 |
479,626,175 |
952,211,699 |
1,431,837,874 |
NC |
17,962,589 |
61. 46 |
29,226,471 |
28,927,733 |
57,855,466 |
0 |
0 |
1,779,029 |
2,372,039 |
14,953,122 |
63,622,473 |
89,453,976 |
153,076,449 |
ND |
4,959,357 |
69. 87 |
7,097,978 |
7,473,996 |
14,947,992 |
-4,704 |
-9,408 |
676,720 |
902,293 |
0 |
13,105,369 |
22,938,855 |
36,044,224 |
OH |
118,955,006 |
58. 78 |
202,373,266 |
89,323,470 |
178,646,940 |
0 |
0 |
13,221,456 |
17,628,608 |
451,444 |
221,951,376 |
398,648,814 |
620,600,190 |
OK |
15,317,644 |
70. 43 |
21,748,749 |
7,767,556 |
15,535,112 |
1,416,586 |
2,833,172 |
4,665,330 |
6,220,440 |
0 |
29,167,116 |
46,337,473 |
75,504,589 |
OR |
13,435,092 |
59. 20 |
22,694,412 |
16,015,115 |
32,030,230 |
345,423 |
690,846 |
795,715 |
1,060,953 |
1,290,854 |
31,882,199 |
56,476,441 |
88,358,640 |
PA |
189,695,986 |
54. 65 |
347,110,679 |
139,008,103 |
278,016,206 |
1,457,005 |
2,914,010 |
15,091,730 |
20,122,307 |
0 |
345,252,824 |
648,163,202 |
993,416,026 |
PR |
13,435,698 |
50. 00 |
26,871,396 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
13,435,698 |
26,871,396 |
40,307,094 |
RI |
4,501,167 |
52. 45 |
8,581,825 |
6,863,286 |
13,726,572 |
2,158,784 |
4,317,568 |
336,443 |
448,591 |
0 |
13,859,680 |
27,074,555 |
40,934,235 |
SC |
12,464,415 |
69. 34 |
17,975,793 |
17,162,958 |
34,325,916 |
2,350,180 |
4,700,360 |
3,353,688 |
4,471,584 |
0 |
35,331,241 |
61,473,653 |
96,804,894 |
SD |
2,781,489 |
65. 93 |
4,218,852 |
2,720,716 |
5,441,432 |
207,500 |
415,000 |
84,888 |
113,184 |
0 |
5,794,593 |
10,188,468 |
15,983,061 |
TN |
15,543,551 |
63. 64 |
24,424,184 |
6,769,456 |
13,538,912 |
2,253,423 |
4,506,846 |
-356,825 |
-475,767 |
0 |
24,209,605 |
41,994,176 |
66,203,781 |
TX |
75,205,354 |
60. 17 |
124,988,124 |
66,374,527 |
132,749,054 |
0 |
0 |
6,485,577 |
8,647,436 |
0 |
148,065,458 |
266,384,614 |
414,450,072 |
UT |
3,078,789 |
70. 00 |
4,398,270 |
14,200,750 |
28,401,500 |
834,607 |
1,669,214 |
1,975,024 |
2,633,365 |
0 |
20,089,170 |
37,102,349 |
57,191,519 |
VT |
9,074,824 |
63. 06 |
14,390,777 |
2,408,969 |
4,817,938 |
0 |
0 |
1,311,417 |
1,748,556 |
0 |
12,795,210 |
20,957,271 |
33,752,481 |
VA |
27,219,581 |
51. 45 |
52,904,919 |
47,463,399 |
94,926,798 |
1,451,781 |
2,903,562 |
5,091,709 |
6,788,945 |
0 |
81,226,470 |
157,524,225 |
238,750,695 |
WA |
16,290,322 |
50. 37 |
32,341,318 |
32,170,806 |
64,341,612 |
3,229,208 |
6,458,416 |
1,450,897 |
1,934,529 |
-10,000 |
53,131,233 |
105,075,876 |
158,207,109 |
WV |
18,600,506 |
75. 27 |
24,711,713 |
2,113,177 |
4,226,354 |
1,774,879 |
3,549,758 |
763,250 |
1,017,667 |
0 |
23,251,812 |
33,505,491 |
56,757,303 |
WI |
26,117,466 |
58. 57 |
44,591,883 |
45,931,332 |
91,862,664 |
5,269,992 |