History was made in the last session of the Indiana General Assembly. The state of Indiana will now assume the cost of juvenile services. The counties have had this burden and taxpayers traditionally picked up the tab through their local property tax bills. House Enrolled Act 1001, P.L. 146, the comprehensive property tax relief plan, contains provisions for the state payment of the cost of juvenile services. The foundation of this new law is property tax relief. The local family and children’s levy in each county will be eliminated and the State of Indiana general fund will assume the costs for juvenile programs and services. As the state rather than the counties will be assuming the costs of placement, programs and services in juvenile delinquency and CHINS cases, the law requires that costs be subject to significant checks and balances in order to control the rate of growth. During negotiations with the governor’s office, and in presentations to the various legislative committees, judges maintained that the payment vehicle for placement, programs and services must allow for judicial decisions that serve the best interests of children and provide respect for the due process of law.
Judges, represented by members of the board of the Indiana Council of Juvenile & Family Court Judges, and the Juvenile Justice Improvement Committee of the Judicial Conference of Indiana led by Judge Charles Pratt, were involved in negotiations about the details of child welfare funding legislation. The Indiana Department of Child Services (DCS), representatives from the governor’s office, and the Indiana Association of Residential Child Care Agencies (IARCCA) participated in the negotiations with the judges. We reached a series of compromises and resolutions as to the details of this proposed legislation.
As passed by the House (93 to 1), the bill contained the basic framework suggested by the involved parties as to how placement and services in juvenile cases would be decided and funded. The Senate Tax and Fiscal Policy Committee (9 to 0) approved amendments to the House version, but there were no significant changes to the provisions we negotiated.
Jeff Bercovitz, Director of Juvenile and Family Law for the Indiana Judicial Center, has written an excellent, and more detailed, summary of H.E.A. 1001, P.L. 146, which is included in the Judicial Center’s legislative update of April 14, 2008 at: www.legislativeupdate.blogspot.com. This article focuses on some of the most significant provisions.
The State general fund will pay costs of certain placement, services, and programs for both juvenile delinquents and CHINS. The general fund of the county in which the juvenile case was first filed will be responsible for payment of the costs not paid by the state.
The new law provides for the appropriation of $239,908,502 to the DCS for funding to pay for child services delivered after December 31, 2008 and ending before June 30, 2009, with state augmentation if necessary. The state is required to make payment to service and placement providers within 60 days of billing. The provisions of the legislation related to payment for juvenile services will be effective January 1, 2009.
In a CHINS case, the court will enter its dispositional decree, after consideration of recommendations by DCS, parents, guardian ad litem (GAL/CASA), and all interested parties. If the court enters a dispositional decree other than one recommended by the DCS, the court must enter findings that the DCS recommendation is unreasonable based on the facts and circumstances of the case, or contrary to the welfare and best interest of the child. DCS has the right of an expedited appeal to the Indiana Court of Appeals.
In a juvenile delinquency or status case, the court will enter its dispositional decree, after consideration of recommendations by probation, parents, GAL/CASA, and all interested parties. If the state fund is to pay for any placement, program or services, DCS will have a right to submit its recommendations. If DCS disagrees with the court’s decree, the court must enter written findings as described above and DCS again has the right of an expedited appeal to the Indiana Court of Appeals.
In a juvenile delinquency case, if the state fund is to pay for placement, services, or programs ordered, the probation office must provide DCS with a copy of the preliminary and predispositional reports for review. Also, probation must conduct a risk and needs assessment, compile information to assist in determining if the child is eligible for federal Title IV-E funding, and provide this information to DCS.
Any modifications of the dispositional decree are subject to the same procedures as above. DCS must recommend or approve, or the court must enter necessary findings, for the state to pay for predispositional services, programs, and placements. In delinquency cases, DCS must be given pre-notice of predispositional placements, but the court can immediately order the placement upon finding that an emergency exists.
In order for the state fund to pay for services, programs or placement, the court must enter the necessary findings to establish the child’s Title IV-E eligibility. Judges will meet this requirement if they use developed and approved model orders available through the Indiana Judicial Center.
In all cases, the state will pay for the service, program or placement if the provider is Title IV-E or Title IV-B eligible. If the provider is not Title IV-E or Title IV-B eligible, the state will only pay if DCS has recommended or approved the services, program or placement.
The state will pay out-of-state providers for services, programs or placement that are Title IV-E or Title IV-B eligible, if: (1) DCS has approved it; or (2) the court makes written findings, based on clear and convincing evidence, that the out-of-state placement is appropriate because there is not a comparable in-state placement; or (3) the location of the home or facility is within a distance not greater than 50 miles from the county of residence of the child.
The state will not pay for placement, programs or services at secure detention facilities. The state will pay for the costs of juvenile placements at the Indiana Department of Correction.
The law was drafted to provide for the maximum amount of federal reimbursements for juvenile services. Counties will be responsible for the costs of juvenile services in those cases where the court and probation department do not make the effort necessary to qualify for such reimbursements. Therefore, it is imperative for judges and their juvenile probation officers to follow the requirements needed to maximize state funding of juvenile services.
We appreciate the hard work of those judges and judicial staff who assisted in negotiations and dealings with the legislative and executive branches of state government with respect to this historic legislation.