CHILD WELFARE FUNDING MODEL                                                                  S.B. 1231:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 1231 (as reported without amendment)

Sponsor:  Senator Peter MacGregor

Committee:  Appropriations

CONTENT

The bill would amend the Youth Rehabilitation Services Act to remove the section that requires the Department of Health and Human Services (DHHS) to pay 100% of the administrative rate to providers responsible for foster care case management services in a county with a population of not less than 575,000 or more than 650,000, and only for cases transferred by the DHHS child placing agency to families of children who were court-ordered into foster care because of abuse or neglect and placed into the care and supervision of the DHHS, regardless of placement setting until a prospective payment system was implemented.

Currently, DHHS, notwithstanding current provisions, and subject to appropriations, must implement a prospective payment system as part of a State-administered performance-based child welfare system in a county with a population of 575,000 to 650,000, for foster care case management of children in accordance with Section 503 of the Article X of Public Act 252 of 2014. (Article X of Public Act 252 provides for the DHHS's budget in the annual appropriation for fiscal year 2014-15. Section 503 pertains to a performance-based funding model for child welfare services.) The bill would increase the upper limit of the county population ranges from 650,000 to 750,000.

The bill also would remove the May 1, 2018, date for which the Act's requirements no longer apply.

MCL 803.305

FISCAL IMPACT

The population range in the bill currently would apply only to Kent County. As the prospective payment and performance-based funding model is currently in operation in Kent County through the West Michigan Partnership for Children, there would be no fiscal impact to State or local government.

Date Completed:  12-5-18                                                Fiscal Analyst:  John P. Maxwell

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.