| PRIVATIZATION
OF CHILD WELFARE SERVICES
LWVK Study
From
the February 2000 VOTER, LWV/L-DC
Background
(Summarized by Ben Zimmerman, LWVK Study Chair)
The League
of Women Voters of Kansas is conducting a
study
of the privatization by the Kansas Department
of Social
and Rehabilitation Services (SRS) of three
child
welfare services: family preservation, foster
care,
and adoptions. Child abuse and neglect is the
only
child welfare service that the Department
retained
in-house. The following background should be
helpful
as the study proceeds.
SRS was
established in 1973 by consolidation of
county
Welfare Boards into a centralized, statewide
system
with 15 (later 12) area offices--now reduced
to 11
with the recent merger of the Salina and
Manhattan
offices. For purposes of privatization,
these
area offices are divided into 5 regions
Region 1. Olathe, Chanute, Emporia, with
area offices in Johnson, Neosho and Lyon
counties.
Region 2. Kansas City, Lawrence, with area
offices in Wyandotte and Douglas counties.
Region 3. Topeka, Manhattan-Salina, with
area offices in Shawnee and Riley counties.
Region 4. Hutchinson, Hays, Garden City,
with area offices in Reno, Ellis and Finney
counties.
Region 5. Wichita, area office in Sedgwick
County. (For more specific information,
check your phone book under Kansas, State
of and under that, Social and
Rehabilitation Services.)
The first
Secretary of the newly-created SRS in 1973
was Topeka
League member Robert Harder, who held that
post
for many years.
Like other
departments, SRS develops a detailed
yearly
budget that, once approved by the governor, is
submitted
by him as part of a budget package to the
legislature,
which frequently reworks it before final
approval.
Once passed by the legislature, the package
is returned
to the governor for his signature. By
law,
the governor retains the right to veto line
items,
leading to further negotiations. (Many
observers
believe with good reason that the budget is
the chief
policy document developed by state
government.)
The chief
committees involved in these decisions are
the House
Appropriations Committee and the Senate Way
and Means
Committee, though both Houses have standing
committees
that deal with substantive issues falling
within
their purview. (For additional information on
the budget
and various departments go to www.ink.org
and www.da.state.jks.us/budget
and follow the links.)
When Rochelle
Chronister, former chair of the Senate
Ways
and Means Committee, was named Secretary of SRS
(she
resigned in October 1999 to be replaced by Janet
Schalansky),
she made a number of fundamental
changes.
She declared that the mission of the agency
was to
protect children--thus the retention of
protective
services for children--and to move adults
into
the workforce--thus the welfare-to-work
initiative.
Then in short order, she transferred
adult
services to the Department on Aging, and by
law,
transferred Youth Services to the newly created
Juvenile
Justice Authority. That left the agency with
the so-called
"money" programs, i.e., cash grants,
welfare
to work, food stamps, and Medicaid, as well
as the
three remaining child welfare services. In
1996,
over a period of a few months with little or no
planning
and no involvement of judges, foster
parents,
or local communities, these three services
were
privatized.
In 1997,
LWVK initiated a two-year project to monitor
the changes
in SRS and their impact on local
communities.
The primary focus of the project was
foster
care, about which there was enormous concern
all over
the state. An executive summary of this
monitoring
project was presented at the LWVK
Convention
in 1999. It was also at that Convention
that
the League decided to undertake a two-year
study--the
monitoring project was not a study--and to
look
at all three child welfare services that had
been
privatized to develop criteria by which to judge
them.
Although
all of the child welfare services are
closely
linked, thus making it possible to refer to
them
as a system, each plays a special role. The
easiest
way to get a handle on them is by a brief and
simplified
rundown of how the current system
(ideally)
works.
1. SRS involvement can be initiated only by
a report of child abuse or neglect. An SRS
social worker investigates the report. If
the child appears to be imminent danger,
the child is removed from its home and
placed in a temporary foster home or other
safe setting.
2. Within three days, SRS has to decide
whether to return a child to its home or to
ask a judge to declare him/her as a Child
in Need of Care and to place him/her in a
more "permanent" foster home. In either
case, Family Preservation (a short-term
crisis intervention program) is supposed to
be made available to the family and a plan
worked out to assist the child with his/her
problems.
3. While the child is in foster care,
permanency plans are developed either to
reintegrate the child with his/her own
family or to sever parental rights, usually
within a year, and to put the child up for
adoption. Each of these decisions, as well
as treatment plans, has to be approved by a
judge.
At the
present time, except for the investigation of
reported
child abuse, decisions about services are
made
largely by private contractors and
subcontractors.
SRS, who retains legal custody of the
child,
enters the picture mainly when there are
disagreements
between contractor staff and SRS staff.
SRS has
declared that its role vis-à-vis the
contracts
is to manage them and that its chief
concern
is with outcomes.
Several
terms have been used to describe the new
system,
with "privatization" being the most common.
Another
is "contracting out," which SRS has always
done
but on a far more limited basis. Never has a
whole
program area such as child welfare services
been
contracted out or privatized. While several
states
are considering various forms of
privatization,
none has gone so far as Kansas.
"Managed
care," a phrase derived from the health care
system,
particularly the HMOs, is based on
capitation,
i.e., providing a fixed amount of money
for each
case. If a case costs less than the fixed or
capitated
rate, the contractor can keep the money or
apply
it to a case that is more expensive. Several
times
during the course of privatization, SRS has
lowered
requirements for outcomes and adjusted
capitation
payments upward. As this is being written,
new contracts
are being negotiated as a result of
Requests
for Proposals or RFPs.
Recently
SRS has undergone another reorganization.
There
are no longer commissioners; instead, there are
three
assistant secretaries. Joyce Allegrucci, who
replaced
Teresa Markovitz as Commissioner of Children
and Family
Services a year or so ago, is now
Assistant
Secretary for Children and Family Policy, a
title
that suggests she is no longer directly
responsible
for services.
Is privatization
working well? Is it better than the
previous
system? Is a managed care approach
applicable
to child welfare services? These are among
the questions
that the LWVK study will try to answer.
So stay
tuned. Local Leagues will be holding
discussion
units in the spring and concurrence units
in the
fall. Make sure you attend them.
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