BILL ANALYSIS SENATE RULES COMMITTEE Office of Senate Floor Analyses 1020 N Street, Suite 524 (916) 445-6614 Fax: (916) 327-4478 . UNFINISHED BUSINESS . Bill No: SB 969 Author: Watson (D) Amended: 9/14/95 Vote: 21 . SENATE HEALTH & HUMAN SERV. COMMITTEE: 6-0, 4/19/95 AYES: Watson, Haynes, Hughes, Mello, Polanco, Solis NOT VOTING: Leslie, Maddy, Thompson SENATE APPROPRIATIONS COMMITTEE: 8-2, 5/15/95 AYES: Johnston, Alquist, Greene, Killea, Leslie, Mello, Mountjoy, Polanco NOES: Kelley, Leonard NOT VOTING: Calderon, Dills, Lewis SENATE FLOOR: 35-1, 5/25/95 AYES: Alquist, Beverly, Boatwright, Calderon, Campbell, Costa, Craven, Dills, Greene, Haynes, Hughes, Hurtt, Johannessen, Johnston, Kelley, Killea, Kopp, Leslie, Lewis, Lockyer, Marks, Mello, Monteith, Mountjoy, O'Connell, Peace, Petris, Polanco, Rogers, Rosenthal, Russell, Solis, Thompson, Watson, Wright NOES: Leonard NOT VOTING: Ayala, Hayden, Johnson, Maddy ASSEMBLY FLOOR: 77-0, 9/15/95 . SUBJECT: Intensive treatment foster care program SOURCE: California Association of Childrenos Homes California Association of Services for Children . CONTINUED SB 969 Page 2 DIGEST: This bill makes intensive treatment foster care services available statewide to allow emotionally disturbed foster children to be treated in family-based settings. Assembly Amendments: 1. Permit the foster family agency to have a contract or memorandum of understanding with the county. 2. Revise the intensive treatment foster care rates. 3. Specify the activities that an applicant county would have to undertake as part of the application process. ANALYSIS: Current law authorizes the California Department of Social Services (CDSS) to implement an intensive treatment foster care (ITFC) pilot program for emotionally disturbed children in Alameda and Yolo Counties. In-home support counselors provide a specified number of hours of intensive support services to the children and their families to enable them to live in foster homes instead of institutional care. One foster family agency (FFA) in each county may serve up to 25 children per year, all of whom must be either placed from a group home with Rate Classification Level 12 through 14 (the three highest levels of care), or at imminent risk of psychiatric hospitalization or placement in an RCL 12 or higher group home. Rates are set according to the level of services provided to each child. An interim evaluation of the ITFC pilots was due December 31, 1994, with a final evaluation due a year later. Intake into the pilot program will cease June 30, 1996, and authorization for the entire pilot will expire on January 1, 1999. This bill would: 1. Permit the ITFC program to operate in any county, subject to department approval. The limit on one FFA per county would be removed. 2. Expand the pool of children eligible for ITFC services to include children voluntarily placed in an RCL 12 or higher group home pursuant to Section 7572.5 of the CONTINUED SB 969 Page 3 Government Code (so-called AB 3632 severely emotionally disturbed children). 3. Remove the 25 child limit on the number of children who may be served annually but retain the 20% cap on the number of at-risk children who may be served in the program. 4. Establish new requirements for FFAs that propose to serve ITFC children from RCL 12-14 programs. The FFA must have a contract or memorandum of understanding with the county that addresses such services as social work emergency response; psychiatric coverage in emergencies; a treatment plan for each child, with periodic reviews; documentation of treatment services provided; recruitment, selection and training of foster parents and in-home support counselors; respite services; and evaluation of outcomes and services. 5. Modify and convert to a monthly basis, the required hours of ITFC service from in-home support counselors. Therapy, behavior modification services, respite, family therapy and other alternative services may be offered in lieu of in-home support services when determined by the county interagency review team and FFA to be in the best interests of the child. 6. Update ITFC rates to the 1995-96 fiscal year, with the maximum rate set at $3,733. The rate paid cannot exceed what would have been paid if the child had remained in group home placement (for children placed from group homes), or the rate determined by the interagency review team at time of placement (for at-risk children). 7. Repeal the two sunset dates for the current ITFC pilot programs. According to Senate Health and Human Services Committee: The intensive treatment foster care program was established by SB 2234 (Presley; Chapter 1250, Statutes of 1990) to show that severely emotionally disturbed foster children could thrive in a foster home with family-based therapeutic foster services. Utilizing extensively trained foster CONTINUED SB 969 Page 4 parents as the primary caregivers, this program blends the "normalizing" features of foster home placement with intensive counseling, case management, and support services provided by in-home support counselors. Absent the pilot, the placement choice for these children is high level institutional group care or psychiatric hospitalization. Two FFAs--Seneca Center for Children in San Leandro and FamiliesFirst in Davis--are participating in the pilot. Children in the Seneca program are typically 10 years old, male and members of an ethnic minority. They have suffered abuse and neglect from an early age; have been in multiple foster placements, often from a very young age; and have emotional, behavioral and learning problems that make treating them in a family-based environment a formidable challenge. The FamiliesFirst program serves children who tend to be male and slightly older, 12 to 13 years old. Like the Seneca children, they have experienced multiple placements; have been subjected to serious neglect and abuse; have developed what is referred to as ooinstitutionalized behavior patternsoo such as lying, acting aggressively, and lack of trust of adults and peers; have a poor self-image; and have difficulty developing life skills and solving problems on their own. Recently completed independent evaluations of both pilot programs have shown very positive outcomes for the children, exceeding even the expectations of the participating FFAs. Children receiving ITFC services have shown significant improvements in such areas as psychosocial functioning and development of life skills, some showing improvement as early as six months. They experienced longer periods of placement stability than similar children in standard foster care and cost savings have accrued from use of lower levels of residential treatment. Over 90% of children and youth previously served in high level institutional care have been successfully served in the ITFC pilots. Their placement in lower levels of residential treatment have also generated savings in foster care costs. Annual projected savings per child range from $2,500 to $7,000 and higher. Additionally, foster parents, county social workers, and program staff have expressed support for the program. CONTINUED SB 969 Page 5 This bill would make the ITFC program available to more emotionally disturbed foster children than currently are served. Access to ITFC services would be expanded geographically (available statewide at county option). Participating FAAs would have to meet additional requirements in recognition of the increased difficulty of serving these children. The program design would be modified based on operational experience over the last four years, and current sunset dates would be repealed in the conversion to non-pilot status for the ITFC program. This bill implements a recommendation from the Legislative Analyst to expand the ITFC pilot program statewide, with county participation voluntary (Analysis of the 1995-96 Budget Bill, page C-123). FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No According to Assembly Appropriations Committee: Unknown, but potentially major savings to the General Fund, federal funds and county funds for reduced foster care placement costs for seriously emotionally disturbed children. Counties, however, would accept the full risk of increased costs. The extent of this risk cannot be quantified. Based on preliminary pilot project results, statewide expansion of ITFC has the potential to result in major savings to the foster care system. These savings would result because the ITFC pilot approach has been able to reduce the cost of treatment for some of the most expensive children in the foster care system. The limited scope of the pilot program, however, makes it difficult to predict the actual savings that would result from potential statewide expansion. Moreover, because the bill requires that expansion result in no new General Fund costs, counties would, presumably undertake the full risk of increased costs. As a result, it is not clear how many counties would decide to pursue an ITFC application with the CDSS. SUPPORT: (Verified 9/11/95) CONTINUED SB 969 Page 6 California Association of Childrenos Homes (co-source) California Association of Services for Children (co-source) Seneca Center for Children, San Leandro FamiliesFirst, Davis CONTINUED CP:sl 9/14/95 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****