March 11, 2026 · Budget Subcommittee No 2 Human Services · 34,469 words · 22 speakers · 383 segments
Good afternoon and welcome. This is the Assembly Budget Subcommittee 2 on Human Services issues. Today we will be discussing issues and programs related to children's issues in the child welfare system and foster care, as well as community care, licensing, and with the Department of Child Support Services. The issues before us today are among the most pressing facing our state. Yet they, too, rarely find their way into our conversations here in the State Capitol. I often say, if you can't see me, you can't serve me. That principle rings true for so many of our underserved populations and continues to serve as my guiding theme throughout this budget process and my tenure in the Legislature. I'm particularly proud of this subcommittee's past work, particularly last year's efforts to secure funding for the Bringing Families Home programs at cvss, a program of which we will be discussing today, and a program that is making a real difference in the lives of so many Californians. As mentioned, our focus turns to the status and outcomes of California's foster youth. These are literally our children in California. We have made real progress for these individuals. But we have many miles to go. Our work is not done until we can say that we are putting these young people on a pathway to thrive. Surviving is not enough if they are not thriving. We have work to do. I look forward to advancing conversations about how we create clear pathways to housing and careers for this population and how we fulfill the promise and obligations our state has made to them. These young Californians represent the future of this great state, and they deserve nothing less than our full commitment and attention to their needs. With that, I will look forward to having our colleagues join us. As you all know, this is a part of the year where we're everywhere trying to get our bills through the process. We want to make sure that as we start the panels for our speakers on these issues on the agenda, that we'll make sure that everyone knows that we will be taking public comment after all the panels are concluded. Each person providing public comment will have 1 minute each to make your remarks. So please prepare for that now. Please prepare for that now. Look at your script now and say to yourself, can I get this done in one minute? Be honest with yourself. There will be no votes taken in today's hearing. I'm going to ask for the first panel to come on up and take your seats at the witness table. We'll ask that you please introduce yourself before you speak. And we will go in the order listed on the agenda. Lao, Department of Finance, take your positions. Here we go. And dss, you may begin when you are ready.
Thank you so much. Good afternoon Chair Jackson and Staff. Wonderful to be here with you this afternoon. My name is Jen Troia and I am the Director of cdss. I want to first start out by sharing a little bit about our vision for child welfare in California. First and foremost, it's our vision that children and families remain safely together whenever possible without entering into the foster care system when necessary. The child welfare system is also responsible for removing a child from their parents or guardians. Undoubtedly, this is one of the most sensitive roles the government plays in our society and once we undertake this role, as the Chair was emphasizing, we bear responsibility for the safety, permanency and well being of that child. Our goal is for children to remain with relatives or extended family whenever possible, as we know they do best when connected to their culture, their community or tribe and to the people they know and love. This vision of a family centered and kin first foster care system is critical for all children, including those who have experienced significant trauma and may be facing the greatest challenges to thriving. Overall, the Governor's budget includes $10.3 billion in fiscal year 2026-27 for children and Family services programs which are overseen by CDSS and administered locally by the counties. In terms of that pillar about prevention, several reform efforts in recent years have furthered these goals of preventing the separation of families, including implementation of state funded Family First Prevention Services Block grants, counties building community pathways with community partners to allow families to receive greater supports outside of the child welfare system, and the efforts of groups like the mandated Reporting to Community Supporting Advisory Committee, which I know the Chair is very familiar with. In keeping with this vision and these concerted efforts, the population of children and youth in foster care is projected to be at a historic low in the budget year of 36,000 young people. Overall, rates of entry into foster care decreased by 43% between federal fiscal years 2015 and 2025. Together, we've also invested in furthering the realization of the Family Care Centered and Kin first foster care system. These efforts have included the continuum of care reform and other reforms that resulted in the decrease of 91% over 10 years in the number of youth with a first placement into a congregate care setting and a 72% reduction in point in time congregate care placements, the creation of a Center for Excellence on Family Finding and Engagement and the launch of kinship Accelerator pilots in eight counties. Among a number of other efforts, the adoption and preparation for implementation of the tiered rate structure which we'll be discussing further on the Next panel also has huge implications for our work to center family based care and to support kin. With that, I will turn it over to Deputy Director Schwartz to talk more about some of those trends and challenges we're facing.
Good afternoon. It's the Sun. Good afternoon. Chairs and members of the committee, Angie Schwartz, Deputy Director of the Children and Family Services Division, going to focus on what additional things our data shows about the progress that we're making, where the gaps and challenges remain, and the expected impacts of the federal HR1 cuts to CalFresh and Medi Cal. In addition to the positive outcomes that Director Troia just noted, we are also seeing other meaningful improvements. Extended foster care to age 21 is one of the most impactful reforms that we've made. According to the CAL Youth Study, youth who leave foster care before age 19 are three times more likely to experience homelessness than those who remain in extended foster care. And every additional year in extended foster care improves outcomes. With higher rates of high school completion, college enrollment, more employment and savings, stronger social support, and significantly lower rates of food insecurity, homelessness and arrest, we do have challenges that remain. Persistent disparities for Native American and Black children remain a critical challenge. We're working to disrupt these disparities through the investments in the tribally approved homes, stronger implementation of the Indian Child Welfare act, and a new Disrupting Disparities Advisory Committee, which we're so pleased to have Chair Jackson as a member of. Also, although relative care continues to produce better outcomes, as Director Troia noted, compared to placements that are not with kin, the percentages of youth whose first and predominant placements are with relatives has not increased as we had hoped. These findings reinforce the importance of the center for Excellence, the Kin First Accelerator Pilot, and the new tiered Foster Care Rate structure, all of which are designed to expand, expand and strengthen connections with relatives and ensure that they have the support that they need. In terms of the potential impacts of the federal HR1 cuts, those cuts to CalFresh and Medi Cal will increase hardship for families already facing significant challenges. CalFresh serves 5.5 million Californians and the expanded work requirements will put many at risk of losing essential food assistance. Non minor dependents and former foster youth who aged out of foster care who were previously exempted from the work requirements will need to qualify for an exemption on a case by case basis or will become subject to work requirements, increasing their vulnerability to benefit loss. This is especially concerning given that roughly 30% of transition age foster youth involved with foster care involvement already experience fear, food insecurity My colleagues at CDSS are working to minimize the harm of HR1 policies by maximizing exemptions to work requirements for those who are eligible and ensuring that we can connect recipients to workforce opportunities. Our focus remains clear. Keep families safely together. Support youth who enter foster care. Build a kin first community rooted system. Continue to make investments in disrupting disparities, expanding prevention and modernizing our rate structure. These are essential to ensuring that every child can thrive in the care of their families, their communities, their tribes and remain connected to their culture. Thank you for the time. Happy to answer questions.
Thank you Mr. Chairman, members of the Committee, I'm Daniel Webster, University of California Child Welfare Indicators Project. Thanks for the opportunity to share my perspective. I'll just echo the trends that Director Troia and Deputy Swartz have shared. I fully think they're all correct and they're available on the public website, which I think is one of the great directions of the Department is the accountability and transparency to have those kinds of data points available to the wider stakeholder community for us to have a collective conversation about the direction of the system. I would add in terms of key trends, reentry is something that we've decreased over the past decade or so, but it has leveled off and I'd see that as an area where we may want to focus some of our efforts. Also in terms of the direction of the Department, I fully agree with a kin first culture. It is supported by data and evidence and research and I really think that we need to continue those efforts. And as we move more towards prevention efforts and moving upstream towards a child well being system, I think it will be all the more incumbent on us to build that resource for children with our relatives. I also think that the Department's good faith efforts with the mandated reporting community supporting task Force Advisory committee are laudable. This is again moving towards the child well being system. This is an important direction that we need to go, but it needs to be done planfully. The implementation needs to be done planfully with guided by good evidence and data. And I think the Department is working with the members of that advisory committee to do that. But I want to just make sure that we I underscore that point that there are a lot of great implementation suggestions that are made, but we want to make sure that we support them at each juncture with good solid data to make sure that we're doing the right thing and doing it successfully. Evaluation efforts that are going on in the Department I think are also critical to give us important information on needed target populations such as Those that we're providing guaranteed income to or those that the crisis children's crisis continuum of services. There's a pilot project looking at that. So to the degree that we can get targeted research to understand about the needs and services that are effective for those children, I think will redound to our benefit across the board. And I think we need to apply that same approach to the prevention efforts that we're talking about. Family First Prevention Services act and the mrac. And then in terms of challenges we mentioned racial disparities remains a challenge. We have decreased the rates of system contact in our state across the board. And it's actually at a greater degree and better than our national counterparts. So that is a positive. But we still, as you pointed out, Dr. Jackson, have much work to do. I'd say. The last thing I'd say is around the talk about federal storm clouds on the federal horizon. I do see that as a big challenge, both with the HR one, but also with the administration's recent moves to take offline public data sets that were formerly available and to remove from data reports that were formerly available. And what this does is it cuts down the discourse. It starts to remove the number of diversity of voices that can speak to changes that need to be made. And so I would suggest that we tend to be different in California, but I would really want us not to go in that direction because we've spent a couple of decades building a public accountability and transparency system would really be detrimental to the health and welfare of our kids if we didn't maintain that.
Thank you.
Thank you, Dr. Jackson and members of the committee. Andrew Shane. He him with the county Welfare Directors Association. I'm going to focus on the need to sustain targeted, flexible resources that sustain the front end of the child welfare system and are even more vital tools given the unprecedented threats we've heard about from HR1 that threaten to remove fundamental concrete supports that are proven to stabilize families and lower the risk of child welfare system involvement. First, the emergency response enhancement funding emergency response programs are truly the front line of our system. Social workers respond day and night to reports of abuse and neglect and conduct safety assessments and investigations. Incredibly taxing work responding to the trauma of families experiencing crisis. The 20, 21 and 22 budget acts provided a total of $100 million to stabilize county emergency response. Staffing and operations are nearly completely expended. Counties have used these funds to hire and retain staff and strengthen supervision and safety decision making. In Riverside county, this included reducing the reliance on overtime and emergency assignments, which of course helps Them reduce staff turnover and stability and improve morale. During this period, foster care entries declined by approximately 26%. As we've heard. There are several reasons driving this, but it does underscore the importance of front end capacity to support prevention goals. That includes, for example, in Sacramento county, these funds improve prevention by increasing the number of families who receive child and family team meetings to prevent foster care entry. At the same time, counties report increasing case complexity, including more investigations involving sexual and physical abuse as well as severe neglect. So without continued support, counties anticipate facing greater staff turnover and burnout, higher caseloads, delayed investigations and reduced capacity. We are seeking $20 million one time to continue current funding levels and thank assembly member Crell for her leadership and as the agenda lays out well, the fiscal cliff could not come at a worse time. Giving the looming consequences from HR1 sustained emergency response resources are critical to maintaining the front end capacity as HR1 makes historic cuts to concrete food and healthcare supports that research shows and I provided two recent bulletins actually just yesterday from the experts at Chapin hall which demonstrate the buffering effect of CalFresh and Medi Cal and the removal of those and the effects that has the straight line to the risk of maltreatment of investigations and child welfare system. And I know that we know these numbers, but it's just worth talking about 665,000 people on CalFresh, 1.8 million people on Medi Cal and to think about the progress we've made in reducing entries, the boat swamping effect that that can help that that can have. Moving quickly to family flexible supports Again, $100 million was provided over two years providing county resources to stabilize family based placements that we all agree are so important. This provides incredibly tangible and concrete supports such as In Tulare County 10 caregivers were supported for home safety by paying for improvements such as pool fence installation. The real things that we need to support the stability of placements in Sacramento county, respite services are provided to caregivers of 29 youth to support that stability. This funding sunsets on June 30, 2026. A two year extension is what we're seeking just to extend the ability to utilize these funds that will support not only only the placement stability, but ensure that we can utilize these funds to sustain the transition to the Cheered rate structure. In particular, the types of costs that the flexible family supports allows cannot be sourced to any other funding stream and are similar to the types of costs that can be covered by the strengths building component of the TRS and as families are being served, we do not want to have disruption, but instead have continuity of supports for children and caregivers. Thank you,
lao.
Thank you, Mr. Chair. Ginny Bella with the Ledge Analyst Office.
Aren't you guys usually over here?
I don't know.
This is a new room for us this year.
Y' all need to stop playing with me. Okay?
So in the other room, we are just a big picture note on the budget. There are no new proposals in child welfare, new augmentations or new reductions in the governor's proposed budget for the program. There is a year over year decline in the general fund of about 60 million. But that's really related to the expiration of one time funding that was provided last year, which will be items that you talk about later in your agenda, such as bringing families home. On the issue of disproportionality, our office has issued a report on that. It's about a year old now, but it's. A lot of the themes are addressed in your agenda here. We do find that it's a very complex issue that has existed for many, many, many years. And there's not one, unfortunately, one policy solution that could solve it. And as you've heard today, the administration has been working to address it from multiple levels. It's also beyond the Department of Social Services. It takes sort of a multi prong approach and it's even beyond the state level. There's local levels and nonprofits all involved in kind of addressing this issue. Which is why the data that we spoke about that's available publicly is so helpful to all of us to be able to provide this oversight and be able to watch how policy changes might affect the outcomes that we're seeing. Especially in light of HR1 where we know there are these changes, we know that concrete supports, really, the absence of concrete supports really do increase risk factors for families. So again, thinking about the publicly available data and the creation of our new system and what we can learn and know from that to be able to ensure that we're able to exercise appropriate oversight.
Thank you, Department of Finance.
Thank you, Sohaman Zoo or the Department of Finance.
Nothing further to add
questions or comments from committee members. So I want to spend a little bit more time on just really understanding the outcomes as well of these young people. We spend a lot of time on whether we're decreasing the amount of population within the system, which is a good sign. But when they age out, what are their outcomes? I don't think we spend enough on that. So I want to spend a little bit more time on this, right? In terms of poverty rates, in terms of employment, in terms of housing stability, when they start families, are these families that are beginning cycles of poverty? Can you all share with me a little bit more on that? In terms of are we setting them up for success?
I'll start. I want to first emphasize that the vast majority of children and youth who enter into our foster care system do not spend dramatically long periods of time there. They reunify with their families or achieve permanency in some other fashion. There are, of course, a cohort of young people who do age out of the system, and we appropriately spend a significant amount of time talking about their outcomes. But I just want to sort of offer that larger context for the overall system first. With respect to the young people who do age out of care, I think Deputy Director Schwartz was referencing that more than a decade ago we extended the age of foster care from 18 to 21 and allow people to come in and out of the system and to have greater flexibility as non minor dependents in extended foster care, which has made a significant difference. But the bottom line that we were starting from when we entered into that policy is that they disproportionately experience all of the challenging outcomes that you referenced. Food insecurity, lower rates of graduation from high school, higher rates of homelessness, higher rates of incarceration. Extraordinary challenges. And that is something that we have been working for decades to try to address, both in the preparation for adulthood, in the support for them to achieve permanency and not age out of the system. Goal number one is that they shouldn't age out, but if they are aging out, it's the supports as much as possible. We just had a presentation this morning from Dr. Mark Courtney, who is now at UC Berkeley at a Transition Age Youth project, talking about both how much extended foster care has improved some of these outcomes. So I'll give you two concrete examples that I have in front of me. One is that 67% of foster youth graduated in 2425, which is up from 55% in 2020, 21, 73% in a recent cohort earned a diploma or GED by age 19. And in terms of homelessness, 12% of youth reported homelessness in that recent cohort, which is former foster youth for a few years, down from 20% in the prior cohort, but still high. We are seeing improvements and extended foster care is making a difference. Part of what Dr. Courtney was emphasizing this morning is that what is especially successful is when we are providing that extended Foster care inclusive of additional supports like transitional housing programs or other kinds of more wrapped around supports in addition to the foster care payments and continued court jurisdiction.
No, that's excellent.
Director Troy.
I would just add to that. I really think the point about that the kids that come into the system, they do tend to not stay very long and it's a misperception to think that children stay and languish in foster care as a rule, it does happen, but like that is not the norm. And so I think, and as we, as we again, as we move towards a child well being system where we're trying to keep kids, you know, in their communities with their families that I think we need to, that's a much wider swath of the population that we're going to be, you know, needing to, to help and to provide services for. So I would also say that we do the work that Professor Courtney has done that Director Troy is talking about required a lot of multiple data systems in order for us to answer the kinds of questions that you're curious about, like what are their long term outcomes with respect to employment or education and that sort of, or use of public assistance and that sort of thing. And to do that you've got to have data systems that you can link up and talk to each other. And we've done that with the transition age youth kids. And I think we need to try to broaden that and follow it prospectively for all of our kids that frankly that are involved with the child welfare system. But that's a heavy data system lift. But I do think that our new data system that we mentioned hopefully will help facilitate that by being more up to more state of the art and have data exchanges that are better than that sort of thing.
What are still some opportunities to that we should be thinking about to continue to increase positive outcomes for these children?
I mean, I think the reforms that we have underway right now are those positive opportunities. First among them, the tiered rate structure that is set to implement next summer. And we'll talk about that more on the next panel. But that shift away from funding placements to really seeing and funding the needs of children so that they can be supported within their own families and truly remain connected to their relatives. I mentioned in my testimony that we haven't had the increases in first placements and predominant placements with relatives. But structurally our system is not set up right now to truly support those families, particularly as the intensity and acuity of needs increases because the funding is tied right now to the placement setting and the Only place where you can get the highest level of services and funding is in institutional care.
Correct.
Not within those families. And TRS fundamentally shifts all of that and makes those investments directly in families. I would say the prevention work that we're also doing is also really fundamental to these reform outcomes and to shifting those long term outcomes. So focusing on how do we support families before removal ever becomes necessary and really understand what the needs of those families are. The implementation of our block grant, the Family First Prevention Services dollars, has been really instrumental in that work. And then soon with CARES coming online, we'll also be able to start drawing down those $40 for those prevention services. Anything you would add?
I would just add to what Deputy Schwartz is saying around the prevention piece. And as we're again, we're trying to keep kids safely in their communities, so we need to identify what are their needs, what are the presenting complicating factors that these families that right now they come to child welfare for substance use disorder and mental health and domestic violence related things and poverty related things, inadequate housing, that kind of thing. We need to identify those factors as best we can and then identify what are the services in the communities that we need to connect this population to. And so what I'm getting at is that as we build this community supporting network, we need to work with our community based organization, network of people so that we can coordinate do same kind of data understanding of what slots do they have to help what populations in what areas so that we can direct the populations to those places so that we can get the families and children the services they need so that the situation does not, you know, risk levels don't go up and then they eventually come to the attention of the child welfare system. And that is, it's a big lift. But I think with data systems being what they are now, there are some, I think that it's a possibility to build such a system, but it's going to take some resources and some good solid thinking.
Part of my thinking is always as we already have things in the works. Totally know we have some great things in the work. Still baking it, baby. Right. But are there some seeds we could be planting for that next thing? Right. Because I don't think we can ever have a gap in continuing to try to get better for these young people. And so what are some seeds we could be planting now while we're still baking the rest of the stuff? Right.
So I guess I want to hearken back to our reference to the, for example, the disrupting disparities advisory Committee. So this is a dedicated body of community members and lived experts and professionals in the field who we have pulled together from the department with the ask to have that conversation and to think about in particular, with respect to disparities for African American children and youth, what are we missing? What's working well? So what we often are trying to do in the vein of what you're describing as well, is to lift up the best practices from any individual county or jurisdiction elsewhere in the country and to really try to bring those to scale across the state and to raise information about that. So some of it is about new investments, some of it is about embedding what we know works and works the best and really disseminating that information and making it more consistent.
What are we currently doing right now to assist counties in building that community support system?
I would say the Conversed accelerator pilot is one example of how we're trying to sort of think about how do you really prioritize and support children within their own family systems and within their own communities and in their tribes, and how do we increase the number of children that have those first and predominant placements with relatives? So we have eight counties that were selected to be part of the Kin First Accelerator pilot. It's a partnership with UC Davis and Casey Family Programs. And think of us and our we've got lots of folks in our division as well that are working to support those eight counties. And each of those counties, it's an accelerator program. It's called that because we're using data in those counties in order to identify sort of where are the greatest areas for opportunity. So those seeds, as you referred to them, Chair Jackson, and which one do we really want to invest in and figure out how to innovate around in order to accelerate the outcome that we're trying to accelerate? So for most of the accelerator counties, it's first placements with relatives and really trying to accelerate the rate at which we've got children who are experiencing that very first placement with relatives. But the strategies that each of the counties will use will really be dependent on their unique workforce and their culture and their community and the support that. And so it's very much embedded in, like, what is needed here in this county, in this jurisdiction in order to make the meaningful change that we're trying to make. So we're really excited about the work of the accelerator. We're only about a year in, so we've launched in each of the eight counties. But they're all in sort of that design phase, designing those their implementation strategies
just to quickly add on county support and appreciation for the accelerator and their positive experience with it. The initial data are strong on default patients with family, but obviously it's still underway, so we'd be glad to follow up. Just a couple other thoughts given these other questions. Improving educational outcomes, moving upstream. Obviously children can be moving and experiencing some instability in school. So thinking about ways to strengthen that as well as improving community based supports. Obviously Calaim is helping with housing for youth, but there may be other things that we can think through in partnership with with the state of New for more seats. So thanks for these questions.
Does the emergency response funding or the flexible family supports help in any of this?
So we certainly have seen that it's strengthening placements with family both to support the caregivers and the children. And while that's in the flexible family supports on the emergency response side, while it's certainly not the same thing as mandated supporting to community, mandated reporting to community supporting it is making sure that the staff have the bandwidth, the training in order to address families in crisis, connect them, if it's safe, with family resource centers or other services from a prevention mindset. And so while it's obviously a Venn diagram from some of the questions you've had about, you know, older youth. Right. And not all circumstances will apply, it's certainly helping support the goals that the state just outlined.
But it seems to me one of the weaknesses we still have in a whole, I mean, obviously it seems to me one of the things we still need to focus on more on is building community capacity. Am I right in that?
Yes, I agree with that, Dr. Jackson, for sure. And I think we have the, I think the work of the mandated Reporting Advisory Committee is a great coalition of folks that we have community based organizations, we have the California Department of Social Services, the Office of Child Abuse Prevention is deeply involved with that. They've invited Berkeley to be part of the data, help them think through the data issues. And I talked a little bit about some of the challenges with that. But I think also to Deputy Schwartz's comments about the implementation of things is we're a natural laboratory in California in terms of we have 58 different child welfare systems. And I do think there's some promising work, for example, in Los Angeles that they I think are a little bit ahead of the curve in terms of building this more upstream model. And I think there's some things we can learn from the great work that they do there. Yeah. And so I'd say I'd look to that as a possibility.
We also have a couple of organizations that I think are close to getting included in the Clearinghouse for kinship navigation. So speaking to what you were saying about community resources, those kinship navigator programs, I think are really essential to helping connect families to all of the different resources in their community. And then the work that we're doing collectively with the Department of Healthcare Services on implementation of the High Fidelity RAP and then integrating that with the Immediate Needs program is also, I think, a great way of streamlining and making sure there's accessible supports for families. And the whole model of High Fidelity RAP is to try to sort of not be a siloed system, to bring in all of the different systems and community partners to support kids and families when they're in crisis with. Of course, the goal being that that child gets to remain within that family and doesn't have to experience a removal or doesn't have to, you know, experience, you know, residential care or institutionalization. So it's a real investment in how do we make sure that we have high fidelity wraparound that's accessible to all of the kids and families across California that need it.
Data resiliency, we are seeing it in many other spaces. And you're correct in terms of we've been relying so much on federal systems and federal reports that when they're gone, what do we do? Are we also saying that, particularly in this space in this population, that there may be a need to continue to build our own capacity to really understand long term outcomes and things like that? When it comes to the foster population,
I think we are extremely fortunate in California to have a very robust infrastructure of data that we do collect and that we make public in a very transparent way. And we get analysis of that data in our partnership with UC Berkeley that is not necessarily federally driven in a way like they are not necessarily pulling back anything that we've seen yet on our capacity to do? I think the things that were raised are more about the federal government pulling back on the data that they choose to publish or that they emphasize in their infrastructure. I like your term of data resiliency. I haven't heard that one before. So we are very committed to continuing to have that kind of robust data here in California. And unlike things like the CalFresh program where we've talked before with the CFAP program, we've talked before about our reliance on the federal government for like running pieces of it through their systems for the payment system. And that makes us very reliant on some of the federal rules. This is more about our state data systems and structures and UC Berkeley partnership. We are, and we'll be talking in the future panels about the rollout of our new automation system, the CWS CARES system, later this year going live. And that will also be a significant improvement in our capabilities. So of course we will have to respond depending on what happens and what the federal government does. And we don't know in advance what that is, but we are well set up at this point, I would say.
And then two more things. You're asking cwda, you're asking for a two year extension in terms of flexible family supports. So are you saying that the funding that has still not been spent is sufficient and all you need is just additional time to continue to draw down from it?
That's correct. It's just a no cost extension and I think as has been said, it's it's an important bridge to get to the trs, which we discussed later. But it's funding a similar type of need that the strengths building component will also address once that's in place.
Director, as you know, I've been spending some of the last two or three years now starting to work on the mandated reporting recommendations and every year I get a few scars going through the process. It seems to me, because I do agree that we need a more organized way to get to where we need to go in terms of these reforms. And it seems to me that just like I see trailer bill language and other things on other issues regarding. All the work that you do, I'm wondering if we'll ever start seeing any trailer bills coming that helps to implement some of the recommendations as well. Have you thought about how do we begin to operationalize the recommendation? I know there's some that requires a legislative solution and I'm more than willing to continue to get some of those scars. But it seems to me that we could be more methodical about this. What are your thoughts?
So we are very involved in the continuing work of the Mandated Reporting Advisory Committee, the outgrowth of the Mandated reporting to Community Supporting Committee. There are frequent meetings and conversations among those folks. There's a set of tri chairs who are now leading that work in committee and it is an outgrowth of the Child Welfare Council which you codified in statute as a result of legislation in support of the furtherance of that work. We are doing the work on the revisions of for example, the mandated reporter training that is well underway. So there are a number of recommendations that are in flight in terms of our work together with the Advisory committee to implement There are additional recommendations. There were 14, I think total. So there are certainly many additional recommendations that we continue to discuss, some of which are administrative in nature, things that we can do on their own, others of which as you point out, would take investment or potentially statutory change. So we don't have any proposals before you, but are always listening and willing to engage and have conversations about ideas that people have.
Okay.
Anything else anyone would like to add before we conclude this? Panel members?
You.
Good. Thank you so much. I really just want to make sure that advocates and the children themselves know or thinking about them. We want to do right by them.
And
I have something that I tell myself and I always say not on my watch. And so if there's more that can be done, I want to make sure that we're doing it. I want to make sure that we're. This is not just a business as usual thing because I don't think they should need a lobbyist to be able to make sure that they're prioritized. And so let's continue to go about that business appropriately. Thank you very much.
Thank you.
Thank you.
Sure.
I really should have brought that.
Issue number two is in purpose for the preparation of the tiered rate structure implementation. Cdss. You may begin when you're ready.
Sure. Hello again. Angie Schwartz, deputy director for the Children and Family Services Division. And thank you for having this discussion today. I do want to connect our discussion on the tiered rate structure to the broader goals that we were just talking about in the last panel on how to transform our child welfare system into a true child and family well being system. The tiered rate reform is a first and it's first in the nation reform. It finally aligns our funding with what we know children do best when they remain with their own families, with their relatives, with their tribes and in their communities. We talked about this in the last panel. For far too long we have tied our funding to the type of placement that the child is in. And TRS changes that by allowing children with the highest level of needs to receive full funding and services in family based settings, importantly in the settings of their own relatives and extended family members. It also shifts us to a strengths based model. Children are more than the sum of their trauma and TRS finally invests in building and maintaining a child's strengths through a self determination model. And it also gives us a way to immediately see and respond to a child's actionable needs through the new wraparound immediate needs program. Bringing together child welfare and behavioral health in a way that we've never done before. These are seismic shifts. TRS is a person centered, holistic approach and essential to achieving the long term goals that we just spent the last panel talking about. In terms of the status of implementation, we are on track to release all the foundational TRS policy guidance by the end of this year, which will allow us to focus the first half of 2027 before the rates go live on the training, capacity building and preparation of the workforce. In terms of what might impede our progress, Certainly the broader fiscal climate remains uncertain and is a risk within this context. It's important to note that by addressing needs earlier and supporting children within their own families, TRS will reduce the time youth spend in care, improve outcomes for children and their families, and avoid those more costly interventions later. In terms of the question about CANS and CFT timeliness, we do expect cans and CFTs to be timely by the end of this calendar year. We've added staff, issued updated guidance and fidelity tools, expanded training and technical assistance through the CAL Academies, and are focused on improving data entry, which we've identified along with our county partners as one of the primary needs for technical assistance regarding the readiness of automation. The tiered rate structure functionality within CWS CARES will have been tested and will be ready for launch. This will include training of county staff and it will happen before July 1, 2027. I'm happy to answer additional questions about the implementation of the tiered rate structure and we'll now turn it over to Assistant Deputy Director Wagner to provide an update on the CWS CARES milestones.
Good afternoon Chair and members of the Committee. My name is Diana Wagner and I am the Assistant Deputy Director for Children and Family Services Division. By way of background, CWS CARES is an updated child welfare information system that has been developed in partnership with counties that is intended to not only meet the case management needs of the social worker, it will also be able to integrate data from multiple sources. Having data readily available will improve social workers ability to make accurate decisions quickly and provide better services to families. CARES will also give back time to social workers, allowing them to focus on children and families, spend more hands on time with them and ensure their needs are being met. Additionally, CWS CARES will integrate assessments such as the child adolescent needs and strengths and the structured decision making tools which will support increased participation from families and tribes to drive the child family team, the case planning and joint decision making throughout the life of a case. The system is now months away from going live, which is important as it will allow child welfare system to better support our social workers and improve services to children, families and tribes across California as we move towards implementation. We appreciate our continued close partnership with counties, including CWDA leadership and county Directors. Thank you. I will now turn it over to Chief Deputy Hansard.
Hello. Rolling deep today?
I think we're just rolling right.
All right. Okay.
Good afternoon Dr. Jackson committee members. My name is Brandon Hansard with the Office of Technology and Solutions Integration. I want to address a couple of the questions that were in the agenda as it relates to trs. You asked what was the status CWS CARES and issues with statewide implementation? The CWS CARES project has completed v1 initial development and is working to complete the quality assurance testing. The project is currently conducting the end user scenario testing with county and state staff and continues to move forward with readiness activities for the plan. Go live October 2026 specifically regarding the implementation and training efforts in alignment with feedback received from acf, the State moved to re procurement of implementation services rather than to increase the current contract. We anticipate that contract execution by end of March. You asked a question about the pilot and whether there would be one and if not, what risks are associated with I will say that there will be a production simulation phase now to allow counties, the state and tribes with a California Title IV E agreement to practice their work, to test and to conduct organizational change readiness activities within the system. This approach supports all users for approximately a five month readiness window rather than the original pilot strategy which was only five counties for a six week duration. The production simulation allows users to test with legacy system converted data test system interfaces with external systems and allows for the project to conduct the performance testing with actual users to see how the system reacts. This allows the project to train and prepare end users for the new system while simultaneously identifying data conversion or performance issues that would need to be fixed prior to Go Live. The State believes we reduce our risks for Go Live by offering this more expansive approach to preparing all users for Go Live through production simulation. We also avoid the technical risks of a pilot that required real time data synchronization between the legacy system, cws, CMS and CWS cares, thus reducing the risk to child safety that would have been present during that six week pilot. We are confident that our users will be more prepared for Go Live with the production simulation approach. I'll be happy to answer any questions.
Good afternoon. Carlos Marquez on behalf of the County Welfare Directors association, the successful launch of TRS is predicated on two precipitating events that CARES goes live smoothly and without delay and that the Legislature and the Administration fund the appropriation necessary to implement trs. Not piecemeal, but comprehensively. Implementing just one of these generational changes to the child welfare operations in California would be transformational on its own. But the fact that TRS is being implemented concurrent with Cares Go Live and at the same time as HR1 implementation is understandably being met with some anxiety by counties. But there is also an equal sense of opportunity that when we emerge on the other side, we can finally retire a legacy case management system that no longer serves our kids, our families, and the needs of our workers.
I thought you were gonna say you'll be retiring once it's all done, let's
see how it goes.
I was like, dang, that's an announcement.
I hope I'm reclaiming my time.
My bad. Ooh, that doesn't work with me.
With the implementation of trs, we're going to be positioned to better meet the individual needs of each child in foster care in their community, together with or as close to their family as possible, and with a renewed focus on minimizing the negative developmental impacts associated with child welfare involvement, TRS county readiness activities currently include making progress toward improving KANS fidelity overall and ensuring staff are up to date on the retraining the training requirements related to KANSA and CFT fidelity. We're also working with the state, philanthropic and other partners on a capacity assessment. However, it's important to note that until we receive additional state guidance related to key TRS provisions, county planning can be challenging in the near term. In terms of concerns that we continue to discuss with the state, counties remain concerned about the possible gaps between existing service delivery capacity and the eventual demand for intensive services, including high fidelity rap, but also other services outside of rap, like family finding, for example, or respite care or specialty mental health services that are non rap. Additionally, because CAN doesn't effectively measure the needs of medically fragile children, counties remain concerned that their resource families may receive less than under the current rates. Furthermore, for counties that are currently administering effective programs at reducing the involvement in congregate settings for youth and children, it's unclear how these programs, like intensive Services for Foster Care, will continue. CWDA continues to request that counties have access to the latent CLASS analysis data so that we can identify cost and service gaps in preparation for TRS implementation. As I mentioned earlier, TRS is predicated on the successful launch of cares. Delays in access to needed information in CARES can be dire to child safety. CARES is significantly different, it should be noted, than cwscms. This is the system that workers have been used to using for 30 years. Because the stakes are so high with this conversion, we are actively in communication with our partners at CDSS and OTSI along with our child welfare leadership and we're messaging an all hands on deck approach to counties so that we can maximize full participation of all counties in the production simulation that our colleagues mentioned. So thank you for the opportunity to detail how the state and counties are partnering to ensure TRS is implemented and that CARES can go live on time.
Awesome, Elio, thank you.
Just a technical Note really. As Mr. Marquez noted, the the appropriation for the tiered rate structure it is subject to an appropriation by the legislature and as such it's our understanding that those numbers that we all heard from the administration in January about the size of the structural deficit in the out years, they do not yet include the cost of the tiered rate structure in those. So that's just something to keep in mind is that the sort of default is that it is subject to an appropriation by the legislature. And so as such I think we're laid out in your agenda. Pose some questions for the legislature to ask about what that means if the appropriation is not made by the legislature. Clearly the administration and counties are going forward despite this uncertainty. An enormous amount of work is being done to prepare for the tiered rate structure. So what happens to those resources? Currently the implementation is phased in over three years. Is there a different phase in schedule that the legislature could consider that would not cost as much initially or are there different components of it that could be rolled out first? So these are the some of the questions that we pose as you think about these out year implementation effects and the costs and how they work with the structural deficit numbers that you're hearing now.
Department of Finance so Hamans we're the
Department of Finance so currently the administration does not have a proposal to change the implementation approach. The governor's budget maintains the funding to
continue implementation activities leading up to the implementation date of July 1, 2027 should the funding be appropriated. But we will defer to the department now if they have any additional information
to share on that.
How much is this going to cost us?
What's the latest multi year? I think I have that.
I understand that it's not a part of the governor's budget proposal, but obviously we have some sense of what this is going to cost us and it'll be nice to know that now as someone who's going to people are going to be coming to me a full
implementation the latest multi year, and the full implementation doesn't happen until fiscal year 2930, but it's projected to be about 890 million full implementation.
800.
And the state cost for that would be around 705 million.
Okay, thank you for that. Before I continue on with this, I was supposed to do some stuff from the last panel. So, Director, this is just me having to say this and then we'll follow up. And lao, obviously we want to make sure that we have feedback from the county's request. And they made two requests. One is the 20 million for the emergency response, and then the second one was the two year extension for the flexible family spending. And I believe those are the only two that were within the request. And so let's just make sure we get the. We would like to have that feedback, please, before. My goal is to see if we can get this written by the in writing by April 6, definitely before the May revise. Oh, you didn't have to. I was just, you know,
I'm not
sure how much more we'll have to say in writing besides what I would say here verbally. So if it's okay, I'll just go ahead and say some of that now, which is to say that as you are aware and have noted, we don't have any proposals to, to accomplish the things that are presented by the County Welfare Directors association as options for you. That said, you know, it is our understanding that the funds have been used as intended and have served the intended purposes and are serving the purposes that they were initially set out for. So I don't know that we have any particular technical assistance for you outside of really indicating that it's a question of ultimately, and I'll defer to finance for this, but ultimately of the sort of general fund cost of providing those.
Did we see positive outcomes from the emergency response program utilizing those funds?
Yeah, I don't know that we have specific data that we can track and maybe the counties have more that they could add. But we are aware of the needs that they indicated and the degree to which they indicated that this would assist with caseloads and capacity of workers and understand anecdotally from them that it has served that purpose.
Yeah, I would agree with that. And it's important to note that while our caseloads have reduced overall, the acuity and complexity of our cases during and after the pandemic have actually worsened significantly. The types of cases that we're seeing are, in no uncertain terms, fairly egregious and are taking a great deal of staff Time. So some of the strategies that our counties are putting in place are not just hiring new new child welfare units, but also making sure that the existing investigative units are being properly compensated so that we can retain them in the first place. The turnover for these staff is the highest of all staff within child welfare departments. So we are seeing positive signs. I think we're seeing improved redirection to CBOs when necessary. We're seeing improvement in terms of kin based placements when we can make them. And because of sort of those incidental. One of the incidental benefits I think is also reducing some of the disproportionality that you discussed in your last panel.
Do you have any data that you can share with us?
Some specific county? I think we actually have a Riverside case study that we can share with you as well and statewide data.
It'll be good to make sure that you're sharing that data with all of us so that we can make an educated decision. I'm in cloying to be supportive, but I do agree, you know, having data will be very important to be able to make any final decisions on that. Where there's also the no cost extension in terms of flexible spending. I mean is that, do you find any red flags with that in terms of being able to continue on with funding that's already been allocated?
I'm going to defer to department of finance on that.
Department of Finance. Hopefully you guys can hear me. Yeah,
so we're aware of the requests
and I think like we were open
to continuing conversations with the legislature on these requests.
But I think we would just as with any new proposal that would result in general fund costs, we would just
flag that there's going to be some
general trade offs within the budget as we work to.
We continue working to approve a balanced budget.
Well, if you can share with us what those trade offs could be and any other additional information on the two year extension. We would, we would like to do that as we begin our discussions on this.
Sure, we can take that back.
Yeah, I think it just to. To I think re emphasize why we believe that an extension of spending for flexible dollars is essential to a bridge to TRS is because the strengths building component within TRS we're going to have to educate families about the fact that these enrichment dollars to support the, you know, the well being system that we're trying to build that they exist and families aren't going to know off the bat how to access those dollars. So the dollars that we're asking for an extension on are Essentially a proxy for how well the strengths building component will be utilized. If we don't start demystifying the availability of these enrichment dollars now, then we're going to have to start from the beginning when we launch trs, hopefully on the strengths building component.
Awesome. Okay, that's enough of that. That was more than I even thought it was going to be. But. But we'll continue that. Just know that we are, this committee is taking those two requests seriously and so we want to make sure that we have some thoughtful and thorough discussions on it moving forward. Thank you about on that. Let's come back to this panel in terms of the trs. First committee members, do you have any questions or comments at this time in regards to trs? Obviously it seems like TRS in terms of all the technical things and all the foundational system things seem to be on track. We are now in the stages of making sure that is working as intended and all those good things. Tell me about. I believe you also said that the CANS assessments and the CFT meetings, making sure that they're occurring on a timely basis by July 1st. We're on track with that as well.
It's really our goal to have them occurring timely by the end of the calendar year. So December of this year, because it's really important that we have that lead time between January 27th and July 27th when the tiered rates are set to go live, that we've got the CFT and the cans happening, that we're actually able to sort of train and ready the workforce on all the other components of the tiered rate structure. And CFT and CANS are really foundational. That's the way in which we identify which tier the child will be assigned to and what their strengths and their needs are. So there's a lot of work happening right now. We are fully staffed up. We hired a new unit within the department in order to do that fidelity
work with the counties and CWS cares. Obviously as we are moving forward with that, is there going to be any piloting involved before we do full wide?
No. So as I mentioned with the phase of production simulation, we are looking to actually have a production like environment made available to all users that would be available to train in to see how the data migrates from CMS to see and prove out any of the scenario testing that the end users would be using so that there's a high level of readiness and the ability to know that the system will perform by the time we go live. That's the approach that we are Taking
and when we think about the tiered system, obviously there, I remember last year, and we have talked about this discussion, that there seemed to be some concerns from our ear, from our providers in terms of how the tier rates will go, whether it will be enough. When we're making the assumptions in terms of base funding versus the additional funding based upon the population and the needs, have we gotten closer with advocates and providers in terms of understanding whether it'll be enough? And so that as we transition that we are actually not putting ourselves in the position where we might lose additional providers when it comes to these items,
I would say that we are, we are continuing to work on that. The tiered rates are an investment. It's an increase in funding almost across all categories, right? So it's an increase in the care and supervision for children. Most of our kids in our current system are receiving the level of care funding and most of them are in LOC 1 or 2. So tiered rates provides more support for 100% of those kids that are in LOC 1, 2, 3 or 4. So in terms of the entire level of care system, which serves the vast, vast majority, more than 90% of kids in our care, the tiered rates are an increase for the caregiver themselves in terms of the care and supervision component. And then keep in mind, the tiered rates also then provides two new sources of support for that child and that family, which is the strength building dollars, which is all new. We've never done that before. We've never had a source of dollars directed exclusively towards the enrichment activities of the young person. And then the immediate needs program which is serving the kids with the higher acuity of needs, starting at tiers two and then continuing in tier three and three plus. And those dollars will be combined with the Medi Cal high fidelity RAP dollars. And so the dollars that are associated with that investment in our budget are actually not the whole of what those, how we're funding the needs of those children because you have to add the high fidelity RAP component to it as well. And we've had really productive conversations with the associations and advocates as well as a lot of real partnership with our partners at Department of Healthcare Services and how we're building that wraparound immediate needs program to make sure that it will be fiscally viable and be able to actually really meet the needs of the kids that have that higher acuity of needs in tiers 2 and 3 and 3 plus. So I would say the number of conversations that we're having is exceptional. And we are in Constant conversation with our partners, through listening sessions, through work groups, through meetings. We have a steering committee that I think was mentioned that includes public and private philanthropy partners. So we are trying to sort of think about this through all of the different angles as we approach implementation.
The one thing I would just add to those remarks is that you had asked us to look in greater depth at the costs of providing services to young people who have a higher level of needs and what services and supports they do need. And we did take that look. We both ourselves and with a contractor and in quite a bit of engagement with providers themselves and with variety of stakeholders. And we submitted that report to you in January. So it's another resource to look to for that additional detail on sort of spelling out what the needs are and how that overlays onto the tiered rate structure. The conclusion of that report ultimately was that when these things are all layered together contingent on that high fidelity rap rollout from dhcs, that it does meet the needs that are outlined in that report.
So, and we, we've been as, as, as Deputy Schwartz acknowledged. Right. We've been in what the exceptional level of conversation in terms of frequency and, and levels of conversations. Broad stakeholder. I'm proud to be a part of the steering committee on trs, but we do know, not just us, some of our partners, the alliance you'll probably hear from during the next panel. We have ongoing questions about the cost analysis that was legislatively mandated and that was delivered to you in January, particularly around the funding adequacy of TRS. When it comes to STRTPs, the analysis, it's our understanding that it was based on a sort of a minimum licensing standard. And so if we really want to make sure that our kids who are in strtps are in that care for as short and an intensive amount of time possible. I think there's questions about the standard, the licensing standards that were used as a basis for rendering that cost analysis. And we look forward to continuing to work with our partners at the state to understand more, which is a perfect
segue into our next panel, which is issue number three. Thank you very much for this panel.
Hi.
Just gonna hang out up here.
We don't mean to surround you.
It's all right. You just get to sit up here all day. I mean, this is what I do.
Cvss. You may begin when you're ready.
Hello again, Angie Schwartz, Deputy Director of the Children and Family Services Division. I want to start in our discussion of the critical issues facing the STRTPs and FFAs by noting that our foster family agencies and short term residential treatment programs play a critical role in California's continuum of care. Based on the most recent Point in time data from October 2025, about 17% of youth are placed through an FFA and about 3% are NSTRTPS. The expertise of these providers and supporting youth with complex needs will remain essential as we move to implement the tiered rate structure. We anticipate these providers will be able to better serve a broader range of youth by expanding their services to better support children living with relatives and with extended family members, as well as serving the youth that are within their facilities. In terms of the report that we were just discussing and that's also referenced in the agenda, after the enactment of the tiered rate structure, the legislature required CDSS to complete an analysis of the needs of youth in Tiers two, three and three plus. We worked with the center for Innovation and Population Health, the Public Consulting Group and the Public Works alliance to complete that report which was submitted in January of 2026, so just a couple months ago. The immediate needs analysis focuses squarely on understanding what the needs of those young people are, what services most effectively address those needs, the factors that drive additional supervision, the reasonable administrative activities that providers must perform in meeting those needs, and the cost of meeting those needs. A core principle throughout TRS that we've been discussing in each of the last three panels is ensuring that the child's needs can be met in any setting. This is essential to allowing to the goal of allowing children to live within their own families and not tying the services or funding to any particular placement type to deepen our understanding of the youth in those higher tiers. As I mentioned, we partnered with the center for Innovation and Population Health and they conducted a fractured analysis of the IP CANS data. That fractured analysis identified subgroups of youth whose needs clustered together and helped clarify what supports were required. We also convened an expert panel to help us interpret that data, identify what the unmet needs are, and recommend the services that would need to be in place in order to meet those needs, the panel found that high fidelity wraparound is the most effective foundation for meeting the needs of youth in Tiers two, three and three plus because it's a holistic cross system teams based approach. Financial modeling also showed that coordinating wraparound with the immediate needs program is effective and sustainable when medi cal is maximized and the flexible funding is preserved for the non medical services. In terms of the insurance crisis, CDSS continues to engage sorry to engage with foster family agencies, counties, consumer attorneys and the California alliance and the Department of Insurance to address the long term insurance availability and affordability. We have about 7.5 million left of the 31.5 million that was allocated last year to support the FFAs, and the agencies are able to continue to apply for these funds through June 30, 2027 or until they're fully utilized. As of March 3rd of this year, 28 FFAs have closed. Importantly, all of the active homes that were part of those FFAs were successfully ported to either another FFA or to a county, preventing placement disruptions and allowing those families to continue to support those children. Once TRS is implemented, foster family agencies will also receive administrative funding tied to the use tier, better aligning the resources and the needs that shift funding following the child as opposed to the placement type will significantly strengthen the financial stability of FFAs and enable them to serve the full spectrum of youth's needs because those administrative costs are much higher for, well, for all kids actually. So starting at tier one because it's higher than the level of care administrative rate for FFAs and then also within the tier three and the three plus, it's a level of administrative funding that has never been available to Support youth and FFAs before because that level of funding has always been reserved for strtps.
Thank you Chair and good afternoon. Thanks for the invitation. Really appreciate it. My name is Pete Weldy and I'm the Chief Executive Officer of the California alliance of Child and Family Services. We represent more than 200 accredited nonprofit community based organizations around the state. There's at least one of our members in every California county. Our members are indeed foster family agencies. They're also short term residential therapeutic programs, STRTPs, transitional housing programs, 988 call centers, family resource centers, behavioral health programs, and much more. And they of course all serve the most vulnerable in our communities, including foster youth, youth and probation and foster and adoptive families caring for those youth. These organizations are critical partners to counties. They help place families or place children in family settings and provide residential care when the youth need additional care and stabilization. The alliance is in complete alignment with the state's vision that's supported by research that outcomes are better for children when they're with their families. We strongly support the state's efforts to place children in family settings, strengthen wraparound supports, improve outcomes for youth with complex care needs, and align funding to ensure children and youth get whatever they need when they need it. At the same time, sometimes children and youth with the most complex behavioral health needs need and may require a short term stay in a residential therapeutic program. So our system must, though, preserve enough provider capacity to ensure every child has access to a safe license placement when they need it. However, achieving these goals depends on whether implementation timelines and payment structures are workable for providers to accept and deliver these services. And I'll be honest, the chaos and cruelty at the federal level with HR1, combining the uncertainty of the state's efforts to reform its rate structure, combined again with the myriad efforts to transform the behavioral health system, all while provider organizations are dealing with an insurance crisis, is becoming too much for trusted nonprofit organizations who have been operating in communities for decades. As Deputy Director Schwartz mentioned, 28 foster family agencies have closed their doors over the last two years. And just this morning I should mention, Calmatters published an article with the headline California's Foster System Foster Care System is Buckling under the Weight of this unexpected cost. And of course the cost they're referring to is insurance. And without action, community based providers will simultaneously lose temporary insurance relief. The $31.5 million which we're so grateful for, it's made a huge difference while transitioning to new rates, and for many programs, those rates are projected to actually be lower than current funding levels. All of this threatens the stability of the provider network that thousands of foster families and families across California rely on, and we do deeply appreciate our partnership with the state and with CDSS to find solutions both to the insurance crisis and continue to work closely together in all the forums that Deputy Director Schwartz mentioned earlier to make sure that TRS works for children and youth and the
providers that serve them.
Thank you.
Good afternoon Chair Jackson and members of the Subcommittee. I am Victoria Kelly and I'm the CEO for Redwood Community Services, a multi service organization based in rural Northern California serving Mendocino, Lake and Humboldt Counties. Through our FFA and STRTPs, we address local needs by building strong relationships with children, families and county partners across child welfare and behavioral health. Our commitment to individualized services and caregiver support has led to remarkable results in the past year. Every child placed in an RCS home maintains stability without any placement disruptions. Strtps like ours play a pivotal role in the child welfare continuum, providing safe and therapeutic environments for youth in need of stabilization before moving to family based homes. If our FFA or STRTPs were to close, many youth, especially those with complex needs, would have no other place to go. Even with family finding efforts, we are unable to find family with the resources to support every child's needs at every step of their journey. Probation departments and county social workers rely on our services to ensure that youth receive the necessary support to address challenging behaviors with the goal of preventing future placement disruptions and promoting long term stability. And without these resources, many youth would face multiple placements and ultimately potentially homelessness. Nevertheless, FFAs and STRTPs continue to face significant obstacles. Thank you for last year's FFA Bridge funding. Your support helped keep our doors open. Though ongoing challenges with insurance costs remain. Without a long term fix to the insurance crisis, me and many colleagues may need to make the very difficult decision to close our doors. The complexity of our work is further compounded by TRS implementation. This payment shift threatens our ability to offer critical services, retain staff and fulfill regulatory obligations due to the insufficient reimbursement structure. If left unaddressed, the current TRS structure could also force FFAs and STRTPs to close, further limiting access to community based care. Another additional challenge with TRS is in regards to wraparound immediate needs expectations. RCS is working toward high fidelity wraparound certification and maintains two contracts with two counties. However, one county's ongoing decision to not contract wraparound services threatens our ability to meet requirements and raises concerns about whether a sole wraparound provider will deliver the best care for children and youth. In closing, I urge the subcommittee to recognize that FFAs and STRTPs are not optional, they are essential. We are the sole FFA provider in one of our counties and the sole STRTP providing services to the three rural Northern California counties we serve. Addressing the impacts of TRS and insurance challenges is not about preserving our programs. It's about ensuring that children and youth in California have access to safe healing and community based care that make true permanency possible. And I think we all share that goal. Thank you for your leadership in allowing me to speak today and share our perspective of rural providers.
Elio, Nothing to add on this issue? Department of Finance Nothing further to add on this issue.
Assemblymember Lee thank you.
Thank you.
Chair Jackson, I have a question for the Department. So I understand that when you were doing the re tiering process for foster Youth, you categorized 74% of youth to be in tier one, the lowest tier of need, right?
That's what the CANS data shows. Exactly.
Yeah. So I wanted to ask what would your Plan B be if this was an underestimation of the needs of so many foster youth? I am just quite surprised that 74% of them are in the lowest low cost here.
So it's an estimate based on the current CANS data which was based on hundreds of thousands of cans scores over a period of time. So some of those cans scores were for the same child over multiple periods of time. And then we looked at the data. It's based on a latent class analysis and it's very reliable in predicting the child's tier. However, we've talked about the fact that we are continuing to try to have timeliness of cans and cfts and make sure that all of the cans data is entered into the data set so that we can continue to analyze it. And as we do that, the distribution among the tiers may change. So there's not a set number that has to be in tier one or two or three or three plus all of it is determined by the child's can score. So it could be that as we get closer to implementation and we continue to run the numbers, we'll see the distributions changing because, you know, we'll have more data that we're basing it on.
Okay, well, since we are in the budgetary context, it's just important to, I think, in a sense to budget the maximum need rather than budgeting the minimum need for children. A second topic to be this was brought up a little bit with the FFAs and the insurance aspect. You know, Lafayette, last session last year we also passed immunity for the FFAs. Do you believe, does department believe that extending the immunity from 2027 to 2030 will stabilize the FFAs?
I don't believe we have a position on that.
Okay.
All right.
That's all I have for now.
I believe in regards to the insurance part of it, we still have dollars available for.
We do to draw down from 7.5 million has not been spent yet or not been allocated yet to the FFAs, and they can apply for that through June of 27th.
And you believe that will be sufficient to carry us through the next fiscal year?
Well, that represents a pretty small percentage of the 31.5 million that was allocated for this year. And so those dollars are only available either until June of 27 or until they're expended. And so we're continuing on a rolling basis to accept applications from the foster family agencies to apply for those dollars as their needs continue to arise.
So one thing that I've learned that just because money is still available doesn't mean it'll carry us through the next fiscal year. And then we start getting reports that money is now gone, but a need still happens. So I'm trying to. I want to avoid that this time.
And
so I would like to get some possible technical assistance Leo, and also have discussions with the department and Department of Finance. How do we make sure that there's enough money available that we won't have an issue with? And I know there's estimates and all this stuff, we're not going to get it perfect. But something tells me, because we're California, that 7 million may not be enough. And so I want an estimate on what would be enough of a cushion realistically to ensure that and going into next fiscal year that this budget is preparing for that we'll have enough money for any additional needs that may arise. So I'm no longer accepting we have money still in the account now. I learned that last year. I'm learning, baby. I'm finding out where them dead bodies are. I'll tell you. And I want to prevent that from happening because we can't. We, we, we got to get it right on this one. Unless I'm wrong, this is pretty important, right? So let's make sure that we talk about that. I would love to get some technical assistance on that, both from from Department of Finance, LAO and of course the administration on that one. Obviously there are I'm skeptical about the, the wraparound because relying on the federal government. And so I'm wondering how, how are we going to what is our level of confidence that our relying on the federal government in terms of drawing down dollars for wraparound will be there?
I think that's partly a question for my colleagues at the Department of Health Care Services. I mean, we are in conversation with them about the integration of the two programs. And then they are really the experts on the Medicaid funding. So I would have to defer to them.
I mean, I love the in terms of innovation and there's no doubt ain't sorry, I was about to get a little. There's no doubt that there's no doubt that we're leading the way in terms of innovation when it comes to these things and how we're trying to make sure that we're breaking down silos and utilize all the dollars possible. I'm worried, though, what is our Plan B for this and do you think we need a Plan B because that is meant to making sure that we're covering the full cost. Right. Do we you think we need a Plan B when it comes to ensuring that when we're implementing tier structure and that we're covering the full cost of making sure these young people are getting the services that they need? What are your thoughts on that?
Well, so we have our investment, the immediate needs dollars, our Entirely state general fund investment.
Right?
So that's all new dollars in order to meet those immediate needs of those children. What we found in our analysis, and we believe to be true, is the most effective model in actually seeing and responding to the needs is through integration with high fidelity wrap and that the integration of those two things is going to one, allow us to expand those dollars and leverage additional federal dollars, so make them go farther. But that also High Fidelity wraparound as the model with or without federal Medicaid dollars. That High Fidelity wraparound is the right model to actually see and meet the needs of our children. Because it is that integrated model that combines, you know, different systems in order to meet the child's needs. And so we have our dollars and we also have existing high fidelity WRAP programs, some of whom are not using Medicaid right now. And so combining it with that high fidelity RAP model, I think is really what's essential is building it as that RAP program. That said, it's also really important that some of the dollars remain flexible. And so our proposal is not that everything get integrated into a RAP model, but that you also have some of the dollars set aside that do not have to be integrated and that can meet the other sort of flexible needs that come up in any individual child or family's case in order to really have that holistic model. So I'm not sure that there would be a plan B in terms of the model itself. I think you're asking about like the funding streams to support the model. And so I think again, we'd have to continue those conversations with our Medicaid partners.
Thank you for that. Obviously, when we are thinking about the rate structure, stakeholders continue to say that their assumptions are significantly higher in terms of actual cost of service delivery. Have we made any room in terms of, of trying to get closer and closer to the same projections or numbers when it comes to the financial models?
Are we talking about the immediate needs program itself still within
in terms of the
cost of the cost analysis?
Yes.
So I think our cost analysis has shown, as we mentioned, that the care and supervision component of the rate is sufficient to meet the licensing standards for the STRTPs. And we're continuing to have conversations about how we arrived at that and sort of the numbers that were utilized. And so we'll continue to have those conversations and be able to share those as well. And then you've got the strength building dollars that are all new. And then the High Fidelity immediate needs dollars, I think is part of the conversation that's really at the Heart of what you're talking about, which is when and how are those dollars available to support the child within the strtp? Because keep in mind that the tiered rate structure is not built on current assumptions about how dollars flow and how we meet the needs of kids. And so there is a shift in terms of how we're going to meet those needs and what our provider community will be able to do to meet those needs. So right now the STRTP rate is a bundled rate that's only paid when the child's within that strtp. But the tiered rate structure breaks it apart and says the immediate needs funding is one attached to the child and integrated into a high fidelity RAP program. Which also means that our providers can serve kids with those dollars who are not placed through their programs, but can also serve them in relative homes, in the homes of extended family members and tribes. And that's really key to the model is that we don't want a provider community that only serves kids that are within their facilities. That we want something that's building a team for the child and then that team stays with that child even if their placement changes. So even if they have to go into another setting, they don't have to lose everything and start over. And you don't have to say the only way we can get those services is if the child is placed in that setting, that we can actually bring those services to the child where they are. That's the whole point of the tiered rate structure, which also means the business models of our foster family agencies and our STRTPs can evolve and expand to also provide those services through those community settings and to actually be able to meet the needs of kids that are with their relatives and expand our ability to support kids in the settings where we know they do best.
When we think about placement stability and the security for children and youth,
what
evidence supports the assumption that more families will step forward to care for higher acuity youth under the proposed structure?
So I think we talk about that a lot as well and a lot of folks, I mean I heard in your testimony saying like we have a hard time recruiting families to care for the needs of youth with more complex needs. We also don't have a system that provides funding or supports to the families when we are able to recruit them. So there's a complete mismatch right now in terms of like you can recruit a family, but the most funding that you're really going to be able to provide for that family is usually within LOC 1 or 2, most of our relatives are not within the ISFC program. They're not getting that level of service and support because that's a place based rate. And so. And there is no immediate needs program to support kids in relative homes right now. And there are no strength building dollars to support kids in relative homes right now. So you really are talking about a completely different world in which we're recruiting family members to step up and care for kids. So I don't know that it's that we're not seeing families that want to be able to care for their own family members who have a high acuity of need. I think they don't feel like it's possible within the way that we've currently set the system up. But if you have the care and supervision rate at the levels that the tiered rate structure allows so that you can actually take the time off work and really dedicate the time that this child's going to need in terms of care and supervision and you have a high fidelity rap team and you've got strength building dollars, your ability to care for that child has fundamentally changed.
It just seems to me that even when we are able to provide that new structure, I mean that still is a lot of trauma to deal with, there's still a lot of instability to deal with. And so it just seems to me that we should also make sure that we have some additional contingencies for even those that say, hey, I know you're going to provide me with this type of support, but emotionally and all that other stuff, we might need to still. I may not still be able to.
I think it's why high fidelity rap is such an important model that's part of this. Because you can't do it alone, right? Like we can't just turn on the care and supervision rate and say more dollars alone is what's going to enable you to care for this child. You need a team, you need that team, you need that support, you need to be able to get the respite and the other things that you need. And so the integrated approach, all of the different components of TRS and how they come together to meet the needs of that family is really important. So I couldn't agree with you more. I think what you said is right on. And it's why we didn't just say we need to change the care and supervision rates when we looked at this. And actually when we met with more than 40 work groups back in 2023, when we were looking at our current rate system and saying what doesn't work about this rate system? We heard that so loudly from people like we need more like one, the needs need to be linked to the child and not the placement. And two, we need services. We need a team. These families need more than just dollars. And so those things were integrated into the tiered rate structure.
Ms. Kelly?
Yes, thank you. I just, I agree with most of what the department's saying. I think the challenges for providers is the predication on the certification for High Fidelity rep. As being part of that whole, whole funding structure that we would be able to draw down. And I think the challenge that many STRTPs and FFAs face is the continuous operational costs rising back to insurance and even the discussion around like what the TRS rate structure is based on assumptions of our current LOC rate structure that already has shortfalls for providers. And so we're setting it up from the get go on a system that is a shortfall for providers with additional expectation for providers to have an additional certification which is going to have costs associated for maintaining that certification, maintaining staff training to be a High Fidelity RAT provider. And I think that that's a significant challenge for many providers. We have high fidelity RAT programs, but it takes a significant investment for us to maintain that. I don't think it's being considered when we're adding that expectation on to providers in the rate structure.
Is there any. What is your accounting for that additional
two things I would say about it. One, we are convening a group to look at the licensing standards and the certification standards and the mental health and making sure that there's not duplication that we're streamlining. So I think that, that that work is really important to do and it's underway. And then in terms of the capacity, I think we are also was mentioned in one of the panels about to embark on a landscape analysis of High Fidelity RAP and look at sort of what capacity we have across the state right now within existing High Fidelity RAP providers and then what capacity do we need to build and to bring online. So I think on both of those points I would agree that's really critical that we make sure that that providers that want to provide those services can step into that space and that we have the capacity to serve kids. And so that capacity analysis is underway and will be completed this year.
Obviously insurance continues to be pretty volatile and this seems that it might just be our new reality in terms of the volatility of the insurance market. How are we building in that instability
now
into our current rate structure and the Rate structure we're going to be going into. Right. Because it seems to me that the emergency part that we're providing right now, it's just the band aid. But how do we build it into just our numeral cost course of doing business and our rate structures?
There is a work group that is meeting in order to discuss some of those long term solutions and it involves our partners at Department of Insurance and us. And I think it's being led by the California Alliance. And so those conversations are continuing. I think with regard to the foster family agencies, there is more admin dollars available through the tiered rate structure overall because the admin funding for the tier one youth is more than LOC 1, 2 or 3. Right. So like it raises that for all of those youth. And you also can get the admin dollars at tier 3 plus equivalent to the work that they're actually doing right now often in serving the youth with the most complex needs through ISFC programs. But we're seeing that many of those youth are probably going to fall into a higher tier and actually should be supported with a higher amount of funding. And so there is a right sizing that happens with the tiered rate structure as well in terms of those admin dollars.
But what about the current system though? Because the current system seems to not to. I mean it wasn't. The current system wasn't prepared for this insurance rate craziness. What are we doing? When will we. First of all great that you're doing a working group with Department of Insurance. Absolutely necessary. What's your timeline though in developing a long term structure not just with the tiered rate system, but the current system that we're under right now? Do you have a timeline when you're trying to wrap up this work to try to have a more long term structure solution to this?
I'm not sure that I have a timeline per se. I mean we are actively meeting and working to come up with those solutions.
It seems to me that this might be one of those times where we need to start really kind of solidifying like a time when we can. The legislation can get a report on what are the solutions for this. So I'm going to ask LAO to kind of assist in some language on this in terms of having a report to the legislature on the long term solution to the insurance market fluctuations. Because I'm sure. And of course more technical assistance in terms of. But we also want to know the feasibility of what is a reasonable timeline. I mean we don't want to do something that's unreasonable. But it seems to me we got to conclude with this so that we don't come every year with do we got enough money for emergencies, for insurance. Right. I want to offer a little bit more stability when it comes to this so that we don't have to do that. And so let's have further discussions about this. Lao. We're going to probably need some assistance in kind of codifying some of these, reporting back to the legislature on this as well. Anything else? Am I forgetting anything? Am I forgetting anything? Okay, I'm sure I forgot something, but we'll continue to talk. Absolutely. Thank you so much. Thank you, Chair, and thank you for all the work that you all are doing. This is a humongous thing. And thank you for the way you're handling it. Thank you for the vision of this. Let's bring this baby home. All right. I'm actually going to skip to for issue number seven because I know you.
Sure.
Okay. All right. I tried. God bless you. As we're going through this, issue number four, come on up.
I don't know.
And CDSs. You may begin when you're ready.
Good afternoon. My name is Hana Azamati and I'm the Deputy director of the California Department of Social Services Housing and Homelessness Division, or hhd. The Bringing Families Home program, or bfh, aims to reduce homelessness and housing instability amongst families in the child welfare system, including tribal child welfare systems. By improving housing stability, the program also intends to prevent foster care placement and support family reunification. Nationally, BFH is one of the first large scale programs focused specifically on the housing needs of child welfare involved families. It provides family centered support such as housing, navigation, case management and rental subsidies. To answer your first question in the agenda, BFH has no ongoing funding but has received two tranches of 92.5 million in time limited funding in Budget Acts 2021 and 2022 which led to an increase in grantees from 23 in 2019 to 78. Now, counties and tribes spent several years building up staffing and infrastructure before reaching peak scale in fiscal year 20. That year, counties supported a caseload of 4,754 families. That included 2,641 newly enrolled families. Counties expended 56.8 million in that year. Maintaining that level of service would require similar annual funding as was expended that year. To the second question on the agenda, where is the program faltering due to infinite due to finite resources? In terms of the impacts of receiving recurring time limited resources, county and tribal grantees have shared with CDSS that it is challenging to sustain staffing, local partnerships, and program infrastructure. Over time, funding uncertainty has required some grantees to scale back services or narrow the range of supports that they offer, for example, reducing the availability of emergency housing, reducing the length and duration and depth of rental subsidies, and cutting supportive services. These funding fluctuations can lead to service interruptions, disruptions for families, and reduce efficiency for programs as grantees must repeatedly scale programs up and down instead of focusing resources on serving families. To the third question as to what families will do if BFH funds expire with no new investment. I want to just provide background. As you know, that BFH serves a uniquely vulnerable population. 2024 External evaluation of the program found that BFH families had substantially deeper child welfare involvement compared to other child welfare involved families and were less likely to be connected to homeless response programs. Despite these complex needs, the program delivers very strong outcomes. In fiscal year 2425, BFH participants exited to permanent housing at a rate of 68%. That's up from 57% the year prior, and that's compared to 35% on average across local homeless response systems in California. The BFH evaluation also found a 68% increase in family reunification for children in foster care at entry into bfh, underscoring the foundational role that housing plays in the lives of families that are in general but also in particular who are engaged with the child welfare system. Since the program has no ongoing funding, BFH programs would shut down as counties and tribal grantees exhaust remaining funds if there were no further investment and more families could be at risk of prolonged homelessness as well as reduced chances of reunification. Thank you for your time and happy to take questions.
Thank you. Thank you, Chair and members. My name is Megan Van Sant. I'm a senior Program manager with the Mendocino County Department of Social Services on behalf of county child welfare agencies. We're deeply appreciative to you, Chair Jackson, the members of this committee, and the Legislature for breathing new life into the Bringing Families Home Program through last year's State Budget Act. This funding provides critical housing interventions that prevent costly and disruptive foster care placements as well as enable children to return to their parents more quickly. I'd like to share a real life case history that illustrates just how critical and effective this program is. In October of last year, social workers responded to a situation involving a mother with three children living in an overcrowded and uninhabitable home. The house was dilapidated and contaminated by pests and mold, and the children were sleeping on mattresses on the living room floor. This household included a 16 year old girl struggling with a complex medical condition that has required multiple hospitalizations in the past three. Her 15 year old sister who was pregnant at the time, and an eight year old brother. We fear that neither of the teenagers have regularly attended school since the pandemic. We immediately gave the family temporary shelter in a motel and then secured permanent housing in a three bedroom apartment. Our BFH program provided a full house of furniture and ongoing rental assistance while we worked through securing a Family Unification Program voucher for this household. The two teenagers and now the new infant who was born last week are now receiving support from the Calaim Enhanced Care Management Program at First five and the local health clinic. They're reconnected to their high school and the household is enrolled in both CalWorks and Cal Learn. This family has a long road ahead of them to get from surviving to thriving. But without BFH support I have no doubt that these children would have entered the foster care system and a foster placement for these teens, the baby and their brother would have been extremely difficult if not impossible to find in our rural county. To the specific question on the agenda, our number one need is for funding stability. Knowing that we will have continued funding year after year so that promises do not need to be broken to our families and relationships severed with our partners and contractors in Mendocino County. The loss of BFH would halt the progress we've made with establishing a cooperative agreement with our tribal nation Partners for Families of Mutual Concern. Continuous resources also allow us to serve families longer when needed. As you know, family reunification services can take 12 to 18 months or possibly longer if we're also maintaining continuing to support the family through court ordered family maintenance services after reunification. BFH was specifically designed to address families unique needs in child welfare. Without housing resources targeted to these families, they will be lost within the larger homelessness system that frankly prioritizes chronic street level homeless individuals without children. The household I described earlier would not be highly prioritized within the broader pool of homelessness services. What will families do if bringing families home funds expire with no new investment? More children will unnecessarily enter the foster care system and more children will have to wait longer to reunify with their families. Bringing families home is a wise investment both financially and morally on the part of California.
Thank you Elio.
Nothing to add, but happy to help with any technical assistance you might need on this one.
It's coming. Department of Finance.
Nothing further to add so I want
to cut to the chase on this one, this committee believes that this is an essential part of a 21st century social safety net. We will not allow anyone to be a part of our social safety net or be or have to enter our social safety net simply because they didn't have the support that they needed. And so LAO and administration, we do want to make sure and the critical number is this. How much will it take to ensure that funding levels will last the entire fiscal year? I know some counties, they, they ran out of funding before the fiscal year ended. We want to prevent that from happening for the next fiscal year. What number will it take to ensure that all counties have the funding necessary, including any unmet needs that have that would, that there were possibly. How much would that cost us? And so I know that we might need to do some digging and speak more with our county partners on this. But we want to make sure that we we right size this to ensure that that that this gets done.
Any follow up questions?
Lao? Thank you. Hold on. Did anyone have a question? Did you have a question? Administration.
You good?
No?
Okay,
thank you.
Issue number five.
Hello. Angie Schwartz, Deputy Director of the Children and Family Services Division. Let me start by noting the intent of the proposed trailer bill on the adoption assistance program out of home placement and wraparound services. The intention is to align with the Continuum of Care reform initiative which eliminated the use of group homes and requires youth in foster care to be supported within short term residential therapeutic programs or STRTPs to provide standardized guidance for the requirements that must be met anytime the adoption assistance payment is funding either the out of home placement in the STRTP or the wraparound services to decrease the fraudulent use of AAP payments. To clearly define the criteria for wraparound services paid by adoption assistance and ensure that the providers who provide those services are meeting the high fidelity RAP certification standards. And to clarify that if a child and family reside in another state, a wraparound service provider in the child's state of residence may be utilized if the eligibility requirements are met. In terms of the overall reaction to the trailer bill, I would say that we engaged in the four listening sessions in four listening sessions with with stakeholders in August, September and December of 2025 to hear about what they wanted to see in the trailer bill. And the trailer bill as introduced is largely reflective of the input received from stakeholders. And so we are hearing a generally positive reaction. There have been some requests to discuss or extend the 60 day transition period out of an STRTP to be 120 or 180 days. As was noted in the agenda, I would say the other area where there's been significant discussion is on how to ensure that adoptive families can easily access the wraparound services without delay and unnecessary administrative barriers. This may be more of an implementation question than a question for the trailer bill language itself, but I would note that we share that goal and also would note the extensive work that we were talking about just a couple panels ago about how we're developing standardized and accessible high fidelity wraparound services across California through the development of the certification standards and also through the work that's being led by the Department of Healthcare Services in terms of specific areas where stakeholders are seeking changes. We're continuing these discussions with stakeholders about where we may need to refine the trailer bill and in terms of outcomes expected. We expect children who are adopted to spend less time in congregate care, allowing them to heal within their families with strong wraparound support and with services like wraparound enhanced care management and other post permanency supports. We anticipate greater adoption stability and fewer disruptions before an out of home placement is ever needed. Happy to answer questions.
Good Afternoon Chair Jackson and members. Diana Voyer County Welfare Directors Association CWDA generally supports the intent of the proposal to encourage short stays in residential settings when needed and to promote access to high quality in home wraparound services. We also support the staff recommendation in the agenda as we feel the language needs more work to ensure all adoptive families can quickly access appropriate services and prevent foster care re entry and retraumatization. This proposal builds on last year's trailer bills. Unfortunately, some of the impacted families are struggling with the new restrictions because they cannot find intensive services for their adopted children returning to California. Once a child is adopted, county child welfare agencies are only mandated to authorize AAP payments. They cannot, they are not resourced nor do they have jurisdiction to case manage. Counties may see instances of children adopted at a young age but who struggle years later. For example, Orange county is currently trying to assist an adoptive family with a child who will refer to as Adam. Adam was adopted at age 7. At age 13, he started to have concerning behaviors and received outpatient mental health services and medication support, but his behaviors quickly escalated. He began punching, kicking, screaming and using sharp inflammable objects to destroy property. Orange County's Mental Health Crisis Team, the Mobile Crisis Team tried several times to assist the family in their home without success, leading to the need for in state residential treatment for Adam. However, post discharge, Adam became paranoid and violent which led to an involuntary psychiatric hospitalization. Then a knife episode at school sent him to a more intensive residential treatment setting out of state where he continues to be physically violent. Adam's now 15 and his parents are desperate for assistance as the AEP out of state payment will end this July. So what does this particular case illustrate and how might it inform the current proposal? First, neither are in state services nor these out of state settings served Adam and his family very well. He is clearly struggling with his unresolved trauma. Second, California does not have the continuum of services that Adam and his family need. Psychiatric residential treatment facilities were designed to treat young people with highly acute mental health needs, but these facilities do not yet exist. They exist in other states, but there have been rightful concerns over the quality of care and oversight areas that California's model will address. STRTPs can meet the needs of some youth who are less acute than Adam, but additional support is needed for them to ensure adoption focused and trauma informed care. Third, we know that an adoptive family is likely to repro. I'm sorry, an adoptive child is likely to reprocess their trauma in adolescence, yet adoptive families feel unprepared and our systems of care are not adequately resourced to support them. Lastly, last year's legislation required updating policies to support transition planning to home based services. The TBL doesn't accomplish this goal as some children will need more intensive home based services than wraparound can offer. Thank you,
thank you Chair Jackson and members for the opportunity to respond to the AAP Trailer Bill language My name is Chantel Johnson and I am the directing advocate at the Youth Law Center, a nonprofit legal advocacy organization that works to transform foster care and juvenile justice systems so that you young people and families receive the support they need to thrive. For many years, Youth Law center has worked with youth families and advocates and policymakers to address the harms associated with out of state residential placements. We helped lead prior efforts to prohibit the use of these facilities for youth in foster care because of the well documented abuse, neglect and trauma children experience in many of these programs. And we were closely involved in last year's trailer bill language addressing the use of out of state residential placements for families receiving Adoption Assistance Program benefits. Through our work with youth who have experienced these placements, we've heard directly about the lasting harm many of the children have suffered in these settings. We appreciate the Administration's attention to the needs of adoptive families and youth impacted by recent changes to aap. As you know, legislation last year in the budget restricted the use of these funds for out of state placements as A result, counties and adoptive families are now working to identify alternative supports for these youth whose needs previously led families to seek these care out of state for many years, one of our core concerns has been that families who adopt children from foster care are often left largely on their own to find services for children who have experienced significant grief, loss and trauma. In many cases, the services families needed simply were not available early enough or in the right form to support children and families before challenges escalated into crisis. For some families, turning to residential programs out of state was not a first choice. It was a last option they could find when the services their children needed were not available closer to home. It is also important to acknowledge that many of these facilities used by California's families have extensive histories of abuse and harm to children. We know that many youth returning from these programs were left with greater trauma than when they left left. No child should have to enter these settings and not receive the help they need. Children heal best in the families and communities and not institutions. Ensuring successful transitions home will require thoughtful planning and strong supports for both youth and their families. We appreciate that the proposed trailer bill seeks to clarify how AAP payments can be used for in state placements and wraparound services. Strengthening access to high quality wraparound across the state for youth receiving AAP is a positive step, but this proposal represents only the beginning of what these youth and families are likely to need. During our recent conversations with CDSs, the department shared that this proposal was not intended to address the full range of needs of youth and families who relied on out of state placements. We appreciate their openness and their commitment to continue working with stakeholders on these broader issues. For Youth Law center, the most urgent priority is ensuring that the youth currently returning to California and their families have the services and supports necessary for successful transitions. It is critical that the Legislature and CDSS prioritize learning directly from these youth and families who experience these placements. Their experience can help us identify the gaps in services that contributed to these crises and their early supports that could have prevented youth from ever reaching the point where residential care or even a wraparound appeared to be the option. Thank you for your time.
Thank you very much, leo.
Thank you. Mr. Chair, we're still reviewing the trailer bill in front of you here. We understand the intent and concept, but also understand the concerns raised today and we see the staff recommendation to convene meetings to work through some of that and we're happy to participate in those two.
Department of Finance Nothing further to add
a couple of things here. Obviously, despite passage of the State law to establish the psychiatric residential treatment facilities. We have yet to be able to do so. Am I correct in that right.
That licensing is still.
How do we plan on rectifying that?
I believe it's in the works with our partners at Department of Healthcare Services to develop the standards.
When do we. Do we have a timeline on how? We're trying to. Because it seems like these are important facilities to have. I know it might take a while to kind of to get some. Get the skeleton together, but do you have a sense of when we should be expecting these facilities to be available?
Again? This is the work that's happening within with our partners at the Department of Healthcare Services. So let me check and I can, I can get back.
Yeah, I mean maybe we can just set up an update. Sure, that would be helpful so that we can make sure that we're have a full grasp of expectations and those type of things for this trailer bill. There are some concerns in terms of the fact that the AAP payments being narrowed to only being used for short term residential treatment facilities, as well as the capping of the payments to no more than a 12 month cumulative period, The wraparound caps, those type of things. The social worker in me just says that whenever you have cookie cutter caps someone's going to get hurt unnecessarily because humans are on their own timeline. And so I'm fundamentally opposed to just caps just for cap's sake. And so I would like to see some more work on that. Also. There seems to be additional possible burdens when it comes to being able to access wraparound services. For instance, the trailer bill requires adoptive families to search for providers, provide proof that providers meet certification and state standards, and enter into contracts with service providers. This seems that it could serve as a barrier for timely access. And so I want us to take another look at that as well. Just with those concerns. This committee is going to be rejecting this proposal under its current form. But we are going to be looking forward for the administration to convene some meetings on the trailer bill proposal just to assure that questions are answered before we make final decisions on this. I know that. I mean we've proven we can work through these before, before showtime and after the May revise. And I hope we can get there. Okay, that's all I have. Thank you very much.
Thank you.
We will jump ahead to issue number seven. So issue number seven, panel, come on up. And then we will return to issue number six. That's a bit easier since it's my proposal. Issue number seven. And this is a proposal for tribally developed foster prevention services and I think are the first ones to. The first one will be. The vice chair. Ms. Chacon, you may begin when you're ready.
Dr. Jackson and members of the committee, thank you for hearing on AB 1574. Today I speak on behalf of the Pechanga Band of Indians, a co sponsor of the support of AB 1574, and I ask that you support this bill as well. My name is Catalina Chacon. I'm a member of the Pechanga Band of Indians where I serve as a councilwoman. I'm here today as not only a councilwoman, but also my capacity as the Vice Chairwoman of the California Tribal Families Coalition, both co sponsors of this bill. The Indian Child Welfare act was passed over 45 years ago and it is the most important civil rights law of the 20th century for native peoples. I have been involved in ICWA work for over 12 years and was a champion of the legislation and work done to codify ICWA into state law. ICWA is incredibly important to me as a Native woman. For generations, Native women were taken from their families and communities, which caused deep harm to our cultures and identities. ICWA helps make sure that our children stay connected to their families, tribes and traditions whenever possible. To me, it represents protection for our kids and respect for our sovereignty. And it helps ensure that future generations can grow up knowing who they are and where they come from. I see the negative impacts in my community every day. Native children are still overrepresented in the California child welfare system at a rate of close to five times higher than that of white children. AB 1574 attempts to support the promise of ICWA, which is to prevent the breakup of tribal families, by building on current law to prevent our children from entering foster care. Tribes are best positioned to do this work directly with our own families because we know how to provide programs that our families need. Tribes are best positioned to efficiently deliver services that also support connections to our culture and our community. California has developed its approach to providing these new early intervention and prevention programs, but tribes have largely been left out. This is a serious mistake that AB 1574 will fix. Failing to provide funding to tribes to do this work, and by only looking to community based organization and counties, we again fail those children most disproportionately impacted and involved in the child welfare system. Expanding the ability of tribes to provide behavioral health and parenting support services for those families at risk of entering the child welfare system will improve outcomes for our families, reduce the number of children going into the foster care system and reduce the pressure on our already overburdened county systems. The grant program created by this bill will ensure that can happen. Please join me in supporting AB 1574. I thank you for your time.
Boozhoo hello Chair Jackson, Assemblymember Rogers, thank you for having us today. My name is Michelle Castine. I'm a citizen of the Sault Ste. Marie Tribe of Chippewa Indians. And I'm coming to you today in my role as the co Executive Director of the California Tribal Families Coalition. So I'm wearing both the hat of the staff lead representing 50 member tribes from across the state who have unified around issues that impact tribal families and as an attorney who's in courtrooms across the state pretty much every day and very much seeing the immense need that we need to invest in services prior to families coming into contact with the child welfare system to really prevent the impact that that's having on an investment in the prevention services. And for tribes to provide prevention services directly is very much needed. We've heard from colleagues and other panels today that the child welfare system generally is moving in the direction of investing in prevention services and that there have been good outcomes to that extent. Unfortunately, tribes have largely been left out of that infrastructure building and currently only two of the 109 tribes federally recognized tribes here in California can access prevention services funding. 1574, authored by Assemblymember Rogers, would fix that and it would make funding available to all tribes to be able to administer their own prevention services funding programs. We know that investing in prevention services works. We've heard today that investments through the Family Services Prevention act has driven down the rates of foster care generally in California by about 30%. And we know even more that tribally driven programs can have great success too. There's a program called the My2Aunties program. It's a tribal program that the San Diego County Welfare services invested in heavily and they saw a reduction in foster care rates of their families of 98%. So almost no families entering into child welfare because that tribally driven and tribal consortium led program was working with families before they ever became system involved. And I'll leave it at that. Thank you.
Good afternoon, Chair and members of the committee. My name is Diana Wagner and I'm the Assistant Deputy Director for Children and Family Services Division. I am happy to be here today to talk about prevention services that support tribes. As the prior panels have emphasized, keeping families together safely whenever possible is a significant priority. This includes preventing child welfare involvement in Native American, foreign Native American children and families who experience some of the greatest disparities in child welfare involvement in all groups in the state. In terms of prevention services that support tribes, California's Family First Prevention Services Block Grant allocated funds to counties and tribes with California 4e agreements who chose to opt into the program. Both the Karuk and Yurok Tribes have opted in and received an allocation to support prevention services once CWS goes live in October of 2026. These tribes and any others that become tribes with California 4E agreements may claim Title IV E prevention funds for prevention services that are included in the state's five year prevention plan. The Department is also exploring additional options to support tribal prevention programs. We recently engaged informal government to government consultation with tribes to gain their input on the potential to develop a pilot tribal linkages approach relying on existing funding that would support collaboration between tribes, Tribal Temporary Assistance for Needy Families, and county or tribal child welfare. The goal is to increase family self sufficiency and prevent tribal children from entering foster care system through case coordination, connecting families to resources and comprehensive services. The outcomes that we are currently seeing for tribal children include the following the number of Native American youth in foster care has been steadily decreasing over time. On October 1st of 2015 there were 798 youth in care and on October 1st, 2025 there were 537. This is a reduction of 32.7%. Placement stability among Native American youth in foster care has been fairly consistent between quarter four 2017 and quarter four of 2025 at between three to four placement changes per 1,000 days in care. Placement with relatives among Native American youth in foster care has been consistent at approximately 63% being placed with relatives between Quarter 42017 and Quarter 4 2025. Exits among native American youth in foster care has remained stable with an average of 9.4 exiting year over year for Quarter 42017 through Quarter 4 2025. Reunification with relatives and adoption among Native American youth in foster care has been stable between October 15 and September 2025, averaging 64% of exits over that period. The Department is happy to provide any further technical assistance to the Legislature or to explore additional prevention options with tribes through tribal consultation and any other forms of engagement.
Thank you very much. Leo. Nothing to add, Department of Finance.
We would just like to flag that
this is not an administration proposal, so
notwithstanding the merits of this or any
other proposals, any new proposals requiring new
general fund will require offsets in other areas of the budget as we work together to approve a balanced budget.
Thank you very much. Looking forward to working with you all on that. Assemblymember Rogers, any questions or comments? Yeah, I'll just make a couple of quick comments. And first, I want to start with thanking the chair for his interest in this topic and for all of the work that he's done on this. As he and I have discussed numerous times, this is a huge issue in my district. And as we try to right some of the wrongs of California's history towards our tribal governments that we partner with, we need to make sure that we're also continuing to stop the bleeding at the same time. And we see that a concerted effort and a culturally relevant and responsive effort can, in fact, do that and address the overrepresentation that we see of tribal youth in our communities. And so I've been very proud to partner with him on this as well. We did work on this last year. There was a bill that was vetoed. So the proposal that's before us for funding is responsive to the concerns from the administration. And we know just even from an economic and a budget perspective, it is treating. Treating with preventative medicine before somebody gets to the emergency room in the social sense, that this will, over time, save us money in the state of California, and that it is responsible budgeting, and it's the moral and right thing for
us to do as well.
So I want to thank you for holding the panel. I want to thank you all for your advocacy, and I'm very supportive of it. Thank you very much. Actually, you know, it wasn't until at the end of last session that I even realized that there wasn't even a such program to ensure that we're providing enough support for our tribal brothers and sisters. And so after learning that, it just reminded me of the adage of. Of asking a bootless person to pick themselves up by their bootstraps. Right. And the idea is that we know, and my own academic studies show me, that culturally specific interventions is the platinum level that you can achieve. Ensuring that people are able to receive the interventions in a way that is culturally specific and in a way that allows them to get those services provided by their own community is the best practice. And so it is our intention to ensure that not only do we continue to make sure that we atone for the. The history that the state has done to Native people, I think this is a moral responsibility that we have, and it is my intention that we deliver on those needs as well. And so we want to thank you for bringing this to our attention. And there is nothing better that I think we can be using our dollars to be able to do so. Thank you all very much and we look forward to continue working with you throughout this process.
Thank you.
Thank you.
And thank you very much, Assembly Member Rogers, for hanging in there with us now. Now you, you know what we go through. Good to see you. All right, going back to issue number six, Let me just preface this by saying that I really take seriously the notion that these children are our children in terms of the state. And so I'm always thinking, now, I never made the mistake of having children, but I assume that as a parent, so inappropriate. I know. I remember when I turned 18 and my mom said, if you gonna still live here, you're either going to go to school or you're going to work. And she did everything she could to ensure that she would support me into achieving those. I ended up doing both. But so to me it seems like it's also our responsibility as a state to ensure that they are able to get gainful employment as well, especially if they're aging out of the system because they have no one else to help them with that. And so this is my attempt to have a conversation and try to find a way that how can we make sure that if the young person ages out of the system that they actually have employment to go to, whether it's an entry level state job or an entry level county job? How do we make sure we're setting them up for success in a meaningful way? Of course they have an opportunity to say no, but it should never be where they can't find the employment that they need to. Number one, have an opportunity to have health care. Number two, have an opportunity to start building on retirement. Right. Which is something we're all trying to do. So let me just start with that and see if you have any comments.
Angie Schwartz, Deputy Director of Children and Family Services I would just say that we greatly appreciate your interest in this topic and absolutely share the goal of facilitating employment opportunities and creating more professional pathways for foster youth. We do have a number of initiatives that are currently in place and so I think that might be one place to start is looking at those and seeing where we can strengthen them. Those span activities of child welfare transition services and then also workforce and apprenticeship program programs, education and training supports and public sector employment pathways. So just to name a few, we've got our independent living program, which is all about employment readiness and career exploration, referrals to work and training opportunities. Our transitional housing providers also work with youth to sort of develop those career pathways. The Workforce Innovation and Opportunity Act Youth in America's Job center for California are also locally operated workforce programs that provide that kind of job readiness. Importantly are the Chaffey Education and training vouchers, which provide not just for support in community college and college, but also can be used for vocational training as well. We've got state hiring preferences for foster youth. And then we also have Resource page. There's been an interagency apprenticeship coordination, which is a cross agency collaboration collaborative that is trying to align child welfare outreach with California's registered apprenticeship programs and services. So that's underway. So there are things. And then of course there's things that happen at the county and the community level. So there are things that are in place right now. And I think part of the conversation is how to strengthen those things and make sure that young people are actually able to utilize them. We could think about different ways to do that through expanding and formalizing paid government internships and apprenticeship programs, creating those structured career pathways within government, which I think is part of what you were just talking about, aligning government workforce programs with apprenticeship programs. I think some of those conversations are the conversations that are happening within some of these collaboratives. I would also just note, and this goes back to the conversation that we were having in the first panel, another one of the most impactful things that we've done for non minor dependent for young people aging out of foster care is not make them age out at age 18. So that extension of foster care until age 21 had a significant impact on young people's ability to both go to college and enter the workforce and also increase the amount of earnings that they had. So we do see that just the ability to have stability and support in a place to live was incredibly impactful in terms of career and college readiness and actually entering the workforce and taking advantage of educational opportunities. So I'll leave it there.
Thank you for that. It looks like a lot of things that we can discuss and kind of mull around. I'm very excited by some of your ideas as well and what other collaborators have come up with and all those things. How do we bubble those up now to see if we can make some take things to another level.
Elio, nothing to add.
The Department of Finance.
We just want to echo our comments from the previous issue because those comments apply to this issue.
Yep. Appreciate that. Thank you so much. We'll leave this. We'll continue to ask the department to work with my office to provide any TA on additional ways to accomplish this. And looking forward to the continued discussion. And we'll leave this issue open. Thank you so much. Going on to issue number eight. We're already at eight. We might see the sun today.
Yeah, let's hope so. Chairman Jackson, thank you very much. Kevin Gaines, CDSS Deputy Director for Community Care Licensing thanks for the opportunity to provide an update on licensing programs and our performance, including our status on backlogs, inspection timeliness, complaint response and areas of ongoing continuous improvement. Just to recap for this committee, the community care licensing mission is promotion of health safety and quality of life for each person in community care through an effective and collaborative regulatory enforcement system so overall workload is stabilized after the pandemic and our programs. And just as an aside, being a responder of last resort, especially in adult and senior care programs, we were deeply affected by the pandemic and infection control response requirements, but our programs continue to meet key inspection mandates. Adult and senior care, children's residential, childcare and home care services programs have each made significant progress in maintaining inspection schedules, improving complaint response and supporting program capacity. So we'll start with backlogs and an update on that. So the adult and senior care program continues to work through a complaint backlog that began during COVID 19 using cross regional support. And there are about 14 offices across California where those those employees there lend each other a hand workload balancing and overtime and and with those we increase complaint dispositions and reduce that those backlogs still struggling. The child care program doesn't have a significant complaint backlog at all. In children's residential, we reduced the complaint backlog to by 32% over the last fiscal year 2425 and we expect continued improvement this year. In home care services, which is a relatively new program, they've reduced complaints pending more than 90 days by 83% thanks to added staff. Thank you to this committee in particular for that and process improvements. As far as inspection timeliness and complaint response are concerns. Adult and senior care program met its annual inspection mandate for calendar year 2025. Child care program exceeded its milestones, inspecting 63% of all its licensed facilities, although it's only required to inspect 30% of those facilities annually. Children's residential program met its biennial inspection mandate and the home care services branch completed 700 inspections in fiscal year 2425, or about a third of its biennial requirement. And with recent staffing increases and more efficient inspection protocols, the branch expects to meet the full two year mandate starting in 2028. It's going to take us a while to kind of get better across programs. Complaint response times continue to improve, especially in Children's, residential and home care services. We're also seeing shifts in facility growth trends. Adult and senior care facilities increased by just over 4% last fiscal year. Childcare licensing continues to grow as well with a nearly 4% increase in facilities. As far as our staffing, our vacancy rate is now 5.1% as of February 1st. And the workforce stability there is really helping us achieve our statutory mandates. Where do we need to improve? So continuous improvement priorities for us include further reducing adult and senior care complaint backlog, strengthening our ability to manage emergency related disruptions, and refining long term inspection strategies as programs grow in number and in complexity. For home care services, that's a specific target of mine, stabilizing program funding and maintaining fiscal solvency remain our key goal. That's supported by increased enforcement and an 11% rise in licensed home care organizations in fiscal year 2425. So increased increase in licenses means increased fees, which means, you know, additional revenues which support our operations. And with that, thanks for your time. Happy to answer any questions you have, Leo.
Thank you. Mr.
Chair.
Just a note, there is a question in the agenda related to the home care fund and we would just note that we got that report last night, so we are currently reviewing it and we will let you know if there's any issues to raise from that.
Please let me know. Let's make sure we do a debrief on it.
Department of Finance, nothing further to add.
Thank you so much you all. I'm reading here that June 30, 2025, you all stopped accepting new county contracted complaints. Is that still the case?
It is still the case.
So, and is there any danger to that?
We don't believe so. As a part of continuing care Reform legislation and Policy Development 2015 to present. One of the things we ended up doing, just in terms of context, is my staff ended up striking agreements with about 17 counties, including LA county and a couple of other larger Southern California counties, to provide the services that they're required to undertake under resource family approval. Which one of which is dealing with complaints of, I don't know, violations of policy within care facilities that were managed by counties. So we did that on contract on their behalf.
So now they're doing it now, picking up that response. So it's not that no one's getting a complaint, it's that it's just, okay,
so, so we, we stopped taking new referrals back last, last fiscal year and this fiscal year we've cleaned up all. By July, June 30, we will have cleaned up all the pending. All the pending complaint traffic in our queue and then those counties are ready to fly on their own.
Okay. Are you going to do any of the quality control on that to making
sure they're doing what we do have staff that. That are specifically. That are specifically involved in oversight and technical assistance to counties in running all phases of resource family approval, including complaint response and inspections. The whole note.
All right.
Thank you so much.
You're very welcome.
Let's move on to issue number nine, Dcss. You may begin when you are ready.
Thank you so much. Chair Jackson, Director Kristin Erickson Donady and Chief Financial Officer Nan Chen, who will start our remarks.
Good afternoon. So I'm just going to kind of go through the questions. So the Child Support Services. Child support services plays a critical role in supporting children in California and California families. Approximately 80% of our caseload is comprised of families that were previously or are currently receiving financial benefits through CalWORKs. In 2020 through 24, the department collected $2.488 billion in support payments, which is projected to increase to $2.53 billion in 2627, an increase of $44 million in additional financial support for California families, the vast majority of which, over 90% of child support collected goes directly to these families. The department and its local child support agencies work tirelessly to provide the best possible results. Between 2022 and 2025, the average collection per case rose by 5.3% statewide, but most importantly by 18% for families currently receiving CalWORKS benefits. We're working collaboratively with our parents to reach stipulated orders and seeing a 2% increase. We've reduced the time it takes to go from case opening to order establishment, improving by nearly 4%. Our collections through income withholding orders have increased by 6.2%, generating more consistent, reliable payments that families can depend on. For our parents burdened by government odors, we're working collaboratively with them to develop reduction plans. In 2025, we reduced government owed arrears by 46 million dollars while increasing collections by 5 million. The child support program works to bring positive outcomes to our communities. In the 2026-27 proposed budget, the department is requesting $1.2 billion, an increase of $22 million total funds compared to the 2025 enacted budget. The increase is primarily due to two significant adjustments. The first is an increase of 4.6 million federal funds due to an estimated increase in federal performance incentives. The total federal performance incentive pool is increasing annually due to a CPI adjustment. And because of past CPI levels, the total pool has increased significantly and therefore California's share is increasing alongside it. The Department does not anticipate similar large adjustments in the future as CPI has obviously come down. The second increase in the requested budget is $17.6 million. 6 million general fund for the restoration of a two year limited term reduction to local child support agency funding that was enacted as part of the 2024 budget. As discussed in the agenda, DCSS anticipates that past underspending has dissipated and LCSAs are fully utilizing available resources. This augmentation is needed to maintain service levels due to upcoming staffing cost increases as well as impacts from recent statutory changes that increase the need for individualized review from case managers that cannot be addressed through automation. In regards to why the $22 million is so critical for the program, the child Support program was established in a unique way in California. Unlike other social programs, although the program is overseen by the state, it is operated locally by local county staff. For the counties. They see the program as a state and federal responsibility and thus in almost all situations counties don't contribute any financial support when the state implements a cost of living adjustment or salary increases. There's a mechanism in the state budget process to fund state staff and state departments, but local counties staff are not included in this and when counties negotiate similar cost increases, they don't see the county staff as part of their responsibility because the child support program is seen as a state financial responsibility. As a result, local child support agencies have this constant staffing erosion mechanism inherently built into its budget structure. This was one of the issues that was implemented when the LCSA funding methodology was enacted in 2019 and it was designed to capture these local staffing cost increases. To blunt this erosion. Over the last six years LCSAs have seen staffing costs significantly increase by over 30% on average. As a result, the increase in staff the increase in cost of doing business for staff has greatly outpaced the decline in our case. Between 2021 and 2526, child support caseload has decreased by approximately 8% and LCSA staffing has also decreased in tandem by approximately 8%. However, I would highlight that during the last two years caseload decreased by about 45,000 as a result of one time foster care case closures pursuant to AB 1686. That's also discussed in the agenda. If not for the one time loss for foster care cases, our caseload would have only declined by 4.6%. In other words, during the past five years LCSA staffing has decreased faster than caseload even while receiving additional budget augmentations. If additional funding was not appropriated, the staffing decline would have been significantly more severe to the detriment of our services provided program performance and compliance. Additionally, AB 1686 and the closure of those foster care cases required individualized review of each case by a case manager to ensure that it met the criteria for closure as well as the technical work for the closure process. These kind of one time workloads still require the ability to have staff on hand to be able to absorb such workload. Prior to the two year limited term reduction enacted in 2024 when LCSAs were receiving additional funding, there was a two year period in which staffing remained flat. This stability allowed LCSAs to conduct outreach to better educate and raise awareness within our communities. These efforts resulted in an increase in our caseload during that time, meaning more families were reserved by our program that wouldn't have otherwise. Without restored funds the struggle to maintain existing services, these community efforts would be impacted. Another consideration is the Child Support Program has statutory compliance requirements such as the number of days it takes to open a case, performance metrics on order, establishment and collections on support, failure to meet performance standards and federal compliance audits would put the California total TANF funding received at risk which impacts programs like CalWORKS. I would also uplift that the Department services directly impact predominantly low income and minority families, families that likely overlap with those impacted by HR1. Child support can be a significant source of income and LCSA staff are necessary to continue our efforts to support those in need. DCSS recognizes that its caseload decline and staffing levels have declined as well. The 22 million proposed in the Governor's budget is necessary to provide a manageable rate of decline in our staffing. Without additional funding, LCSAs would have to reduce staffing much faster, in some cases through layoffs and at the detriment of our case participants that depend on our services that we provide and I'm going to hand it over to Kristen.
Thank you so much. To address the question about what we can do to make our program more family friendly, I want to share that our commitment is to provide a holistic suite of services for all families regardless of their income level. The most any family can be charged for these services is $35 per year, which is a federal requirement. Any family who is currently or has ever received CalWORKs benefits does not pay anything for the services. We have greatly reduced the need for families to take time off by shifting to remote services. For example, every time we open a new case, there's a requirement to interview parents. And for many local child support agencies, these can be done remotely via video calls. Now, we've also worked with our courts and have many of the options to appear via video as well. Gone are the days when parents had to take an entire day off of work to come to court, so they're able to call in and reduce those administrative burdens to get the formal orders. We've also worked to be more family friendly by changing the terminology we use. We no longer say things like non custodial parent and custodial parent. We speak to parents using their names. They are parents or they are the person who receives support. We've simplified our enrollment process and shifted away from language like an application. Nobody has to apply for our services, they merely need to enroll. And we're working on ways to make that enrollment process much easier for these families. We've also expanded our options for making payment of child support and exploring what the future of payment of child support looks like using money such as digital wire wallet. Seeing what the future holds and what might be possible in terms of family friendliness. We also want to focus on getting a good job and training if necessary. California was awarded 2 out of only 10 grants that were awarded by the Office of Child Support Enforcement. At the federal level, these are next gen employment grants being operated in Los Angeles, Sacramento and Stanislaus counties providing holistic wraparound services to assist families in providing in training and employment services. We're also collaborating with several counties led by Contra Costa in San Francisco, seeking a waiver from the Office of Child Support Enforcement that would allow us to provide in kind support to satisfy child support orders. So for example, if the person receiving support offered to have goods and services satisfies that order. So it's kind of one of its kind coming in the future in terms of the HR1 impact. I want to note that child support is a critical source of income for many low income families raising children out of poverty. When we look at the administrative burdens that are posed by the new work requirements, we understand that many families will be shifted off of those benefits. They will no longer be able to meet them, some of them if only because of the administrative burden of doing so of meeting those compliance requirements. We did participate a member of our staff on the inaugural Governor's Innovation Fellowship, lending our expertise from the child support perspective and how to find income administratively without having to bother the family. So that was really great to have a member participate there. We do think that there is a lot of overlap with these families and that as families are not able to access benefits such as CalFresh, the need for child support will be greater and so we need the staffing levels to maintain so that we're able to meet their needs needs. For the last two questions I will answer briefly but then Defer More to Ms. Peck, the Director for the Solano County Department. As Nan noted, the actual staffing levels decreased greatly over the past few years and LCSA staffing is primarily spent on staffing. So the funding it's 85 to 90% sent on staffing without an Sorry, without. With the reduction, there could be meaningful impacts to the services delivered to families without the consistency of support to support that staffing level. Thank you.
Good afternoon.
Chair Jackson Leeann Peck, Director of Solano County Child Support Services and also Cal CSA Board President. So as Kristin mentioned, the impacts of the cut we've had reduction in staffing statewide of nearly 300 staff and it's had a trickle down approach to the local level and to service delivery. We've reduced our work with outreach and partnerships and our workforce programs. We've reduced our lobby hours. In Solano as an example, we're focusing solely on compliance timeframes and the niceties that we've been able to provide when we've been adequately funded are disappearing. We are becoming less proactive and more reactive with our customers. Staff are doing more with less covering multiple assignments. They're stretched really thin. The unfunded mandates that have come down in the past, specifically and most recently with fem, requires far more manual intervention by caseworkers, and it's taking upwards of one and a half to two times longer to manage the cases as they were in the past. There's longer wait times for families, slower establishment and modification of orders, fewer opportunities to prevent arrears from growing and respectfully. Our ability to secure consistent support depends on a balanced set of compliance and enforcement tools that encourage engagement, cooperation, resolve non compliance and maintain accountability when needed. Over time those tools have become more limited or more difficult to use in practice and so at the local level we leave with service, engagement and problem solving. However, when the set of backstop tools becomes more limited, it's harder to secure that payment and it can take longer. All of this requires human contact. Child support work is highly individualized and requires time to manage cases effectively and address the specific barriers parents face in meeting their obligations. Caseworkers are spending significant time contacting parents directly, meeting with them in person or virtually, as Kristin mentioned, or on the phone. When local funding is constrained, as it has been with the existing Cut. It doesn't just impact and reduce the administration. It reduces the outcomes for children and families and may push already fragile families closer to poverty.
Hello.
Thank you, Mr. Chair. There are no new proposals in the Department of Child Support Services. There is this restoration of the prior reduction to administrative funding for local child support agencies. Of the 6 million general funds, 17 million total funds. This really is part of what was a multi year effort to increase administrative funding for local child support agencies that had been frozen in funding for decades at the time. So in 1920, the legislature authorized this multi step increase that was supposed to take three years and it was going to give local child support agencies enough funding to get their caseworker to case ratio to about 180 cases per caseworker. But because of budget constraints and other reasons, we haven't fully funded what was originally envisioned. We're about 90% there, but in the meantime the target's sort of moving because the cost of getting there is increasing and the caseload is decreasing. So that's what you're hearing today is that even with this restoration of 6 million general fund, you'd be at about 90% of what was originally envisioned for that option augmentation, but you still wouldn't be at that 180 cases to case worker ratio. Because of those changes, you're around a little over 200 cases to case worker. So there would still be cost to fully realize that case worker ratio that was originally envisioned.
Thank you, Department of Finance.
Kayla Knott, Department of Finance.
Nothing further to add.
Thank you for that and thank you all for being very clear on your answers and resolving, answering the questions that we had. You know, there's not a year that doesn't go by that I get a call from a constituent and I meet with them personally where, I mean, as you know, these things can be messy. And I know because as a child, my family was a client of your department. There's always issues that come up with, you know, the parent who's not the supportive parent who's receiving support. There's always an issue that comes up in regards to visitation. And I know these things can be messy sometimes, but there's always the constant reframe. I'm providing this support to the child, but I don't even get to see my child the way I'm supposed to. How are we dealing with issues like that? I mean, is there a mechanism, is there a way that we can improve those situations? Obviously, sometimes when the parents are not getting along, you know, unfortunately the child is caught in the middle and sometimes is being used as a punishment towards the other parents and all that kind of stuff. What are we doing in those cases? Is there a way to resolve that?
Thanks so much for the question, Dr. Jackson. As part of the Office of Child Support Enforcement's grant mechanism, there is a separate grant they administer called Access and Visitation. And in California those funds are going to the judicial council. And so they are administered as a way to provide grants to partners through courts. California receives approximately $900,000 out of the total 10 million that's available nationwide. These funds are not indexed unlike the incentive funds as Nan mentioned earlier. So that 10 million has not increased appreciably or at all. There are also opportunities though. I was smiling because this is a pass project of mine starting when I was an attorney at a local child support agency and it was very difficult to field those questions. We do work very closely with family law facilitators that are part of the AB1058 program which is reaching its 30th year in 2026, and refer out to self help programs. There are some opportunities for waivers to utilize federal incentive funds, the Child Support Incentive Fund to assist parents with co parenting, mediation, things like that. However, when we cannot do our base work, we can't contemplate adding something else on. So that's one of those things. It would be wonderful to be able to engage in some pilot projects using those waiver incentives or philanthropic dollars to do a match with us where we could really provide more wraparound services to assist parents. But at this point we're focused on on our base federal compliance.
Totally understand that. I'm just one. I think my question really was just if I am a parent who believes that I am not getting the visitation that I deserve with my child, is there a mechanism that helps to resolve that issue? And I'm hearing not right now.
It's not through the child support program, I think is the answer that our commissioners, the child support commissioners are not able to hear custody issues. It's referred to a different department within the courts. So there's a separate set of individuals.
So they need to engage the court to be able to seek remedy.
Yes, got it. So those waiver projects or other projects that we see states use the access and visitation funds to address are ways to more informally assist parents. So more informal mediation or co parenting discussions. There are options there, but it's not directly or squarely within the child support program.
Thank you for that. My second one is there are times when there is an over withdrawal of funds from a parent who's supposed to
be paying and
meaning it's more is withdrawn than what they're supposed to than they need to in a month. And there's sometimes issues, at least this is what I'm told. I know there's the devil's in the details, but I'm just telling you how I hear it, that when they call to say, hey, you withdraw more than you supposed to, that and now that puts them in danger of paying bills and things like that, that there is not a real timely solution when that happens. And now they're scrambling around trying to pay bills and things like that, which I'm sure is not helpful for the family as a whole. Again, I know devil's in the details, but I'm just saying is there how can we resolve these things quicker so that we are not further harming the family when this is meant to help be helpful?
I appreciate that question. As you said, the devil's in the details. It's interesting with child support, it's different from something like a mortgage or a car note. That is an installment where you've agreed to pay a certain amount every month. With child support, if you owe arrears, the entire amount is essentially due today. And so we see this kind of come up in things like a bank levy where there might be an asset that the child support program can specifically enforce against even though it is above the amount for the monthly support. If there are arrears, then technically it is all due today. And if there's an asset that can meet that, then it can be taken. I don't think that's maybe the situations that you're talking about here. I know in certain scenarios, such as via income withholding order, if an individual has multiple jobs and this is part of the child support system more broadly, where we see this question come up nationwide that the income withholding order can be sent to each of those employers, even if the main job is satisfying the child support amount. And so we do really want to work with you. That requires the caseworker to be able to take that intervention on the case. If a person calls, I will say at my office at the state level, our Office of Legislative affairs responds to these sort of inquiries as soon as possible. So I would always encourage you to reach out to us if you get one of those inquiries. And then we do work with the counties to make sure that we're addressing the matters as quickly as possible.
Do you think there's room for improvement in these things? It seems like sometimes it's one of those issues because I remember, and I don't think you guys are doing this anymore, that if someone is behind on their payments, they could actually have their driver's license suspended. Right. And then it was like, why would you do that? Now? How are they going to get to work? And it's like you're starting to set them up for failure. Right. And so I'm wondering if issues like this, in terms of withdrawal issues, and I mean, even if they may be behind and you're taking. You're trying to catch. Get them and force them to catch up, that it could still be destabilizing, that might be overall more harmful than trying to seek some other type of remedy. Do you think there's room for improvement here?
I do. I would say that I think the goal of a driver's license, first, it's a federal requirement to have a system in place, but the goal was never to be punitive or to take somebody's license away so that they couldn't get a job, but to drive engagement. How I look at it is I really want that person to come talk to me at the local child support agency or Leanne and her staff and have that conversation about what's going on with your life holistically. How can I help you today? And by having a blanket rule that we can never do X or Y that drives people away from engaging and makes it very easy if there's a parent who's not able to meet their obligation. If there's not that remedy where you get something like a notice from the dmv, they may choose to ignore that issue for longer than if they got the notice, such as from the dmv. And so I truly think the child Support program of 2026 is very different than 20, 30 years ago. And we truly want to help support the family holistically. And having that engagement with the parent who's ordered to pay support, that direct engagement. How can we resolve this? Do we need to modify your order? How can we get you back on your feet? What do we need to do? That's truly why we're here and what we want to do. So I think it's a very careful balance when we talk about making changes.
And it could be a case by case basis, right?
Absolutely.
As it should be. So I'm just thinking, you know, I mean, you have all have made a number of reforms that you all should be proud of. There's no doubt about that. I'm always thinking about ways we can continue to Be improve and making sure we're setting up families for success. Right. And making sure everyone's needs are being met. Do you have an advisory group or anything like that that kind of continues to give you recommendations on how to improve the system?
We are working to create an advisory group. Actually it's a strategic partnership group. We've had our initial meeting. We also have been meeting quarterly with a group of individuals for groups that support low income families. Western center is in the room today. They've been a key partner of ours for several years, meeting quarterly to provide us with input on our programs and see how we can improve. And it's really vital that we ask for that feedback and really take it in. I think we've really worked hard to build that relationship and avoid being sensitive to that feedback. I think we really need it. So we're working very hard to do that.
Well, certainly this committee wants to be supportive in any additional ways to improve. And so I just ask that, you know, just be ready for next year to kind of give us a little things on what, what else you would like to improve on or you see the next step of improving. So thank you so much.
Thank you.
Thank you all very much. Appreciate it it.
Thank you.
We have one other item. If you're looking to go through the.
Oh, you're the same people. If that's what you're saying. Oh, you are the same people. Don't go nowhere.
Thank you, Dr. Jackson.
Thank you very much, Ms. Peek, for making the travel. Thank you. Issue number 10.
You may begin when you're ready, Dr. Jackson. We're asked to provide a brief presentation of our supplemental report. This was required as part of the 202425 Budget Act. It was submitted in February 2026 and we hosted a briefing, I believe last week for legislative staff to summarize this report. It looks at the challenges and successes of implementing the full pass through of past due support to families, provides data about families who are currently receiving CalWORKS and describes the cost estimate and changes necessary to implement full pass pass through for currently assisted families. The system change for this, which was larger than anticipated and all of the policy surrounding it was fully implemented in May of 2024. Since that time, cumulatively we've passed through. We've distributed over $200 million to these cases and that's at least 110,000 unique cases received at least one payment under this statutory change. The report provides detail about the families who received the pass through payments. The persons receiving support were overwhelmingly female, 92% which tracks with our caseload demographics. The majority of the support was also passed through to families who identify as either being black, hispanic or Latinx. So that's 57% of the population that received those payments. And that outpaces the percentage that we see those folks in our caseload generally. So we see those impacts there. One of the questions that's come up is about the number of emancipated children or conversely, in which of these cases are there still minor children? And I wanted to explain that briefly that I think this is not a glitch in the system, but rather how the system was designed. And it was support from the legislature, in fact act, which allowed us to implement a federal option, which is the family first distribution. So this says that when there are arrears or past due support that's owed to the government, that will be the very last thing we collect. So we wait until the family has been made whole, they have all of the support that was owed to them before we collect what is owed to us in the government and for the arrears pass through. We maintained the assignment of those arrears so that we could resolve the debt to the extent that extent possible through the debt reduction and other options. So I think that's a kind of a. That's how the system was designed under family first distribution, because it's the last thing those cases will skew to cases with all emancipated children. In terms of challenges, one that's noted is the inability of the person receiving support to decline that support. Now, if the case were entirely unassisted, they could voluntarily close their case. They could say, I no longer want these funds for whatever reason. When we'd initially contemplated and requested this statutory change, we believe that we could implement that via regulation. We were mostly concerned at that time with benefit cliffs and with people's ability to make choices about their life. We have seen reports through our local child support agencies of individuals who called. While it's not a very large percentage, there are really real reasons why people would not want these funds. We've heard, for example, of family violence concerns, not with concern about the relationship with the parent paying support, but in their current relationship. We've also heard about instances where a step parent has adopted the child and they no longer want the funds from the biological parent. We've also heard about situations where the child has unfortunately passed away and it's a really painful reminder of a very terrible loss to receive those funds. So that was one of the recommendations that we be allowed to Allow folks to opt out of receiving those funds if they wanted to. We've also been asked about the amount of recoupment in the law. If we're not able to find somebody or if the person who receives support predeceases, then those funds are automatically recouped. So the government retains that collection. That is about 10% of those collections. So it's not a huge amount, but it does go to the government if we're not able to find you or that person is pre deceased. The report talks about some of the unintended impacts and potential impacts. I think it was notable with CalFresh. The Department of Social Services participated with us in this report and a prior report. They found that only 0.1 to 0.2% of families receiving CalFresh would become ineligible because of this additional child support income. For most people, they would receive more in cash child support than they would be losing in the CalFresh benefit. Moving on, in terms of what a pass through for currently assisted families could look like, I do want to say it's notable and I want to congratulate the legislature in California for expanding the pass through to currently assisted families. As of 2022, we passed through the maximum allowed under federal law, which is 100 for families with one child and 200 for families with 200 or more. Over 20 states still pass through nothing to those currently assisted families. However, of course, as you know, Dr. Jackson, there's a trend of states for going to full pass through for currently assisted families. So this report talks about the cost options. So what would the fiscal impact be of backfilling that federal and county share, the loss of the state share, potential impacts to eligibility, et cetera. Our average collections for currently assisted cases were $11.5 million last year. The average is skewed slightly by the months when we received tax intercepts. So that's generally March, April and May. But the amounts passed through averaged $2.7 million. So if we were able to fully pass through, it would be an increase of $8.8 million each month to these currently assisted families. And these numbers, just to be very clear, contemplate passing through up to the amount of current monthly support as well as anything that's collected that applies to past due support for those currently assisted families. The estimated fiscal impact of that full pass through would be $150 million if we fully pass through. And that would be the foregone state recoupment as well as the federal backfill. And the impact if we pass through just the state's share of those collections would be $80 million to the general fund. In terms of potential complications, the Department of Social Services had submitted a report in September 2025, as well as a data addendum. First, I want to state there's no anticipated impact to medi cal because of the way that the eligibility is calculated on modified adjusted gross income, which excludes child support income. They presented three options that were discussed at a stakeholder group. One is to pass through fully without any change to the disregard amounts. The Department of Social services estimated that 130,000 families would lose their CalWORKs eligibility if we did that, and approximately 1400. I'm sorry, 130,000 would have their grants reduced and 1,400 families would be discontinued entirely. The second option was to increase the disregard to 100% of what was passed through. This would mitigate many of the effects, but we do in California have a unique ability to untick months of support as we recoup funds towards that 60 month time limit, the federal time limit. And the third option was to increase the disregard to 100%, everything we're passing through, but also provide a time on aid exemption. The estimate is that that would cost an additional $20 million. Increasing the full two full pass through would require automation change on our side as well as the calwork side for CAL sos. So that would require close coordination in terms of the timing. We did estimate in the report that that could take up to three to five years to do the automation for both of those systems as well as all the policy changes. We did have a request though, to provide a more detailed timeline of that as well as the automation cost estimate. I will note though, that the estimate would depend on the policy decisions that were made as we talk through those options.
Lao, Nothing to add.
Department of Finance.
Nothing to add.
You're not looking for that? You're not looking forward to that extra three to five years? You don't have to answer that. This is one of those issues where you're like, what is the right thing to do when you're trying to help someone? Might actually hurt someone? Possibly, maybe, probably. What do you think is the best option moving forward? Because obviously you know the direction we want to go in, but stability is also important and predictability is also important in terms of families. What are your thoughts? And as you evaluated the different options, what are your.
I would say I think it's far more common and far, far more common sense to increase the disregard to match the amount that's passed through. That is what's currently happening for the safety net families where they receive 100% of their child support because it's a state funded aid type and they also receive 100% disregard of those funds. The goal and what we've seen from other states that have implemented a full pass through with a similar full disregard is that parents are more likely to pay this support because 100% of that support is going directly to their family. And by receiving both the cash aid and the support with that disregard, they're able to become sufficient and not need the cash benefit faster than they would otherwise.
What would be the cost of doing a full disregard?
$150 million is the estimate, but it's only 80 million. For if we pass through the state share of recoupment, which is the 47.5%. So of that after that 100 and 200 that we pass through today, any amount over that, we have to pay 50% of that to the federal government. So that's the federal share. So it would be foregoing the other half of that collection if we wanted to pass through that portion to families. That's approximately $80 million per year.
So doing the full disregard would actually be from general funds. $80 million.
So the disregard is on the social services side.
I'm a political science major, so when you start doing numbers, I'm.
I get you.
I'm getting a migraine right now.
I'm so sorry. The it. The terminology is. Is a little funny. The disregard is actually in the social services side when they say I will disregard this from your income in terms of eligibility and how much we're going to provide you in the grant. And then the pass through is how much from what we collect we can give to the family. So if we did full pass through of just the state's share of that collection, the cost to general fund is estimated to be $80 million annually.
Got it.
So it would still require the same amount of automation. Change on our side in calworks is just a different policy decision.
And if you did the disregard, does that also mean you have to do a tech thingy?
We would. The disregard is reflected in the CALSA system. So it would be a change to calsas to change the disregard amount.
And then how much is that to do the tech part? Because I'm sure that's an additional cost.
There was an estimate in the report from social services of approximately $300,000 for the Calcells automation. But I would note that that was a very preliminary estimate. And so I would defer to my colleagues at Social Services.
Okay. So I'm going to ask everyone to kind of help us with some technical assistance on this LAO Department of Finance and Administration in terms of what it would take to implement the full disregard. The full pass through with disregard. Yeah. You know, which I mean, Just to see what our options are. I don't know. I mean, it's obviously, we got. It seems like we have to get over this hurdle of making a decision on what it would be the best decision that would cost the. The most amount of benefit with the least amount of harm. Right. For the legislature to at least consider. Okay.
Thank you, Dr. Jackson.
Thank you.
Okay, where are we? Okay, this issue number 11 was all of the non presentation items the moment you all been waiting for. This ends the panel presentation portion of our hearing for today. With that we will move on to public comment. You all have received four hours to look at your script. You had four hours to look at your script to see if it fits. One minute. Let's see who did their homework.
Okay.
Name,
name and affiliation please.
Thank you. Rebecca Gonzales with the Western center on Law and Poverty. In the first part of the agenda talking about child welfare, we all know the effects from HR1 and the largest cuts to federal food benefits in history were more than 700 million Californians will lose access by the end of the year including families with children. So the state really must step up and provide state funded food benef to everyone losing access to CalFresh so we can support our local economies and protect people from hunger. Definitely see a child welfare impact. California must build a budget based on our values and become the first state in the country to protect our communities from this crisis. As far as the agenda on the Department of Child Support Services, we really appreciate the partnership with the legislature and with the Department of Child Support Services working towards full pass through for families and we hope to continue that work with you because this is truly a harmful practice for families. We also hope encourage the department to use their existing authority to cut back on some of this debt that is really uncollectible. And also you made a comment about the driver's license issue. I do agree with you that it, you know, I'm glad that that policy change was made because you know, people can't get to work. And there is a bill by Celeste Rodriguez to stop the suspension of occup professional licenses because we want people to work and we want people to be able to pay their child support. Thank you.
Thank you.
Name and affiliation please.
Hi, Janae Eustice. I am the CEO and president of the Child Abuse Prevention center, also representing the California Resource Association. This is in support of the social services tiered rate structure. If we want California to truly work and if we want prevention to truly work in California, our funding structures must match the reality of the work. A tiered rate structure is how we operate, operationalize the commitment ensuring community providers like Family Resource Centers have the resources to meet families where they're at and provide the right level of support before challenges escalate. Thank you so much.
Thank you.
Name and affiliation please.
Hi, I'm Christina Tanner and I'm coming from the Youth Law Center. Youth and family need the tiered rate structure to be implemented as designed. This reform was really created to shift child welfare from funding placement types to funding actual needs of the needs of young people and their families. Strength building, care and supervision and immediate needs were intentionally designed to work together as one coordinated system. Strength building is especially crucial and critical for youth and it should not be delayed. Strength building supports youth development, builds skills and helps families address challenges before they escalate into crises. This kind of early support helps prevent placement disruption and keeps youth with their families and within their communities. It is a core part of the tiered rate structure and one of the most direct investments to youth well being and development. A significant time has been put into really making sure that implementation is ready to go live in 2027 by the department. Pausing now really risk losing momentum and expertise and infrastructure that's already really been built. If implementation must be phased in, strength building should be prioritized early. It provides proactive supports and helps families succeed and prevents crisis that lead to placement disruptions or institutionalized care. And it should not be delete, delayed or or treated as optional. This reform really represents a commitment to not just investment in beds or placements, but to invest in the development, stability and potential for youth in foster care. Families and youth are counting on the state to follow through on this commitment. So we ask that you continue to ensure that tiered rate structure is implemented and goes live in 2027. Who are you with again? The Youth Law Center.
What do you do with them?
I'm the special Projects coordinator.
How old are you?
I'm 25.
I also have.
Don't lie.
I'm 25.
I'm 25. And I also have 13 years of lived experience within the child welfare system and intersecting systems.
Go with yourself. You did a good job.
Thank you.
All right.
Good afternoon. Jordan Sosa, former foster youth from Los Angeles county and resource parent in Sacramento county to take care of my two younger sisters. I'm in support of the implementation of the foster care tier rate structure and and the extension of the Flex family support funds. My sisters were facing housing insecurity and when I stepped up to be their caregiver, we did face a lot of barriers and experience poverty and housing insecurity to ensure that I was able to provide care. And I truly believe that support should follow a child's needs not on the license or the placement type. And also the access of family flex support funds have allowed my younger siblings to participate in extracurricular enrichment activities and have a little sense of normalcy in their Foster care experience. Thank you.
Thank you.
Name and affiliation please.
Hi, Elizabeth Oseguera with the California alliance representing over 200 members serving high needs children and families across all counties. Thank you Dr. Jackson Ledge members and budget staff for putting this hearing together today. As mentioned, the implementation of tiered rate structure and the ongoing liability insurance crisis will have significant impacts on the child welfare system and the providers as a risking placement capacity and continuity of care for children and families. To stabilize the provider network and ensure FFAs can keep their doors open while long term solutions are developed for the insurance crisis, we respectfully request your support for a 30 million budget as to offset the escalating liability insurance costs regarding TRS implementation. We welcome continued engagement with the state and appreciate the committee's focus on ensuring rates are sufficient to meet the needs of children and youth. We look forward to working continuing to work with cdss sharing continue to work with cdss and are looking very much forward to seeing cdss share the cost assumptions and methodologies underlining their rate analyses to stakeholders and legislative members so that we can all better assess sustainability. Moving forward, we encourage conversations to evaluate TRS rates with the potential of raising these by 2029 if rates prove to be low to meet the needs of children and youth. Thank you.
Thank you.
Name and affiliation please.
Amanda Kirchner with CWDA. We are here actually in support of CACFS's $30 million budget ask to address the FFA insurance crisis. We appreciate the legislature and the $30 million that was already allocated but we do expect those funds to be fully expended. We think this investment is critical to make sure that we don't displace our foster youth and we create service capacity for those homes and also make sure we keep our placement stable. Thank you.
Thank you.
Name and affiliation please.
Thank you, Mr. Chair Aaron Evans. On behalf of Santa Clara County, I'd love to go all the way back to panel one and add our comments as families, counties and the state are all grappling with implementing HR1. Food and other supports for families have economic impacts and can help families avoid becoming systems involved. Conversely, loss of these supports undermine long term stability. The county seeks to partner with the state to ensure that families can maintain eligibility for services going forward.
Thank you.
Thank you.
Name and affiliation please.
Hello, Sam Wilkinson with In Child Poverty in California. Thank you Chair Jackson and the committee. But we would like to urge the Department of Social Services to release the 20 million already allocated in last year's budget for county and workers to respond to this crisis. HR1 as quickly as possible, referring to issue one. With inaction and no immediate county worker support, we run the risk of seeing nearly 1 million Californians losing access to CalFresh. Children will be impacted substantially as a result of cuts to Medical and CalFresh imposed by Federal HR1 and as shown in page 11 of the hearing agenda. Families experience experiencing poverty are more likely to come into the child welfare system. If we do not do enough, we will see an increased number of family separation and system involved youth in California due to increases in poverty. And also, as part of the Truth and Justice and Child Support Coalition, we'd like to line our comments with the Western center and also uplift work to improve the debt reduction program with Assemblymember Sharpe Collins happening this year. Lastly, we urge our elected representatives to raise progressive revenues now so no child has to go hungry in our state and so no child is separated from their family due to poverty in our state. Thank you so much.
Thank you.
Name and affiliation, please.
Laura Muther with the Lutheran Office of Public Policy, California. I'm a member of the In Child Poverty California Coalition and I'm also speaking on behalf of Lutheran Social Services of Northern California and Lutheran Social Services of Southern California. Children will be substantially impacted by cuts to Medical and CalFresh imposed by HR1. We echo the comments made by the Western center and End Child Poverty to urge the Department of Social Services to release the 20 million already allocated in last year's budget so county workers can respond to this crisis as quickly as possible.
Thank you.
Thank you.
Name and affiliation, please.
Ignacio Guerrero, Director, Department of Child Support Services in Santa Clara county and board member for the California Child Support Association, Calcsa. I want to thank you, first of all, Dr. Jackson, for your work on these issues related to child support. I want you to know that we see you as a champion of our program and we thank you for the work that you've done. I'm going to get a little bit personal because working on behalf of the children on our caseload is personal. I've worked 31 years in this program serving the children in our caseload, both in San Mateo County, Alameda county and Santa Clara County. I've seen personally the impacts that funding cuts can make and our ability to serve the needs of children, economically fragile families and ensuring that they get the needs met, their financial needs met, with the support that they're morally, legally and financially entitled to receive. So I urge your support for the reinstatement of the $18 million $6 million state general fund so that we can continue to do the Work that is needed in our communities. Thank you.
Thank you.
Name and affiliation, please.
Hi, Chair George Cruz on behalf of the California Behavioral Health Association. First we want to. We want to say we support the continued investment in the prevention and stabilization programs which have helped thousands of families avoid homelessness and support reunification. We also want to raise concerns about the provider sustainability within the child welfare system due to the rising insurance cost, workforce shortages and uncertainty around the future rate structure. We urge the legislature to prioritize provider stability and community based prevention to ensure children receive appropriate behavioral health care and placement stability. Thank you so much.
Thank you.
Name and affiliation, please.
Thank you. Chair Jackson and members of the committee. My name is Natalie Dillon and I am a board member for the California Child Support association or Cal csa. I would like to go on record in support of the restoration of the child support program cut. As this committee well knows, the child support program has a 2 for 1 federal match. So with that cut, we were leaving federal dollars on the table. With the restoration. The intent is that the money will be allocated to local child support agencies that have the caseload to support the investment. This is a critical investment given California's child support per child poverty rate, impacts of HR1 and the fact that the program is under serving families that would benefit from our services. Again, I would like to go on a record appreciating the restoration of this cut. Thank you for this opportunity.
Thank you very much.
Name and affiliation, please.
Sure.
Abraham Mendoza, board member for Cal CSA and director of Sanke county of Child Support Services. So undergone record for the restoration of the funding back to the child support program. And just to let you know, as you are well aware of our cost effectiveness in California is $2.30. That's money that comes back to the program.
Thank you.
A question for you. Are you just saying that you don't want to see another cut like that or are you saying that there's money that has already been cut that you have not received back?
We want. I want to see the money restored back to the local counties, to the program as a whole, but also should be ongoing.
So you're saying that you have not received the money that was cut from the state?
Correct. It's in the July 1st.
The restoration will happen. Okay.
Absolutely.
I'm just trying to get it straight because I. I thought I did something.
No, you didn't.
And now you're saying I didn't do it. I'm like, hold on now.
Thank you.
I got rest.
You're good.
Okay. All right. Well, you let me Know if something happened, I'll throw a fit. Name and affiliation please.
Good afternoon. Thank you, Chair Jackson.
Excuse me.
My name is Kim Brit and I'm the executive director for Central Sierra Child Support Agency. And Central Sierra assists families in Alpine, Amador, Calaveras and Tuolumne counties. And today I'm here to support the restoration of funding for the child support program. Child support is one of the most effective ways we can help help children stay financially stable and is a cost effective program. With the federal government's match of $2 for every $1 provided by the state, the child support program ensures that parents and not taxpayers are supporting their children. When funding for children, excuse me, when funding for child support programs is reduced, cases can move slower, enforcement may be delayed and families can wait longer for the support they depend on. Essential needs. Investing in child support is not just about program funding. It's about protecting children and promoting family stability. So today I respectfully ask that you restore funding for the child support services so California's children receive the support they deserve. Thank you very much.
Thank you. Name and affiliation please.
Good afternoon, Chair Jackson, Nice to meet you. My name is Jeannie Cho. I'm with also the California Child Support association and Chief Deputy Director for LA County Child Support Services. And I'm also here to go on the record to support the restoration of the budget in the governor's budget. That $6 million cut is just not worth the bang for the buck. We leave $12 million of federal funds on the table yet you know, have a minimal impact on helping the state budget and a deleterious 18 million triple the impact on our constituents. I would also like to lift up something that direct the director said. Director Donady, in the days of your, you know, when this program was created we were very much criminal enforcement, you know, the horrible tagline of deadbeat dads. We were seen as an anti father program. We are not here to take sides with either parent. We are here as a pro child program and one of the greatest tools that we've had in our toolkit, the bread and butter really of helping us to engage parents is really driver's license suspension. Parents have 180 days notice before licenses are suspended and so in many cases they are not ultimately suspended. And we are here and just like the Western center on Law Poverty, we are here to make sure that kids get as much support as they can in a reasonable and with right sized orders from both parents. Thank you very much.
Thank you.
Name and affiliation please.
Elizabeth Crayer. I'm the director for Lassen County Child Support Services. And Child Support is not just an enforcement program, but a poverty prevention program. For many families, these payments mean the difference between stability and hardship. The role becomes even more important as programs like SNAP are facing reductions. At this time, many LCSAs like mine, particularly in rural counties, are operating with limited staffing resources and serving large geographic areas. These complex caseloads and without adequate funding, the agencies struggle to maintain the level of service these families need. Every day. We're asking to reinstate the funds, the California state budget and invest in the prevention in our program Preventing Poverty and really for prevention for these families. Thank you.
Thank you.
Name and affiliation, please.
Dallin Frederickson with the Sacramento County Department of Child Support Services. So we do want to thank you for your support and interest in the child support program. And we want you to know we take the trust that you place in us very seriously. We are working very hard to improve the program. We are working very hard to make sure that we are serving families. For example, nationwide, half, approximately half of the child support orders nationwide enter by default without participation of one parent. We are working so hard to make sure that there's procedural justice and people have an opportunity to be heard and that we're getting sustainable right size orders. We've worked very hard and in the last few years in Sacramento, we've gotten to where 25% of our cases now are entered by default. So that's the type of hard work that we're doing and that's the type of work that the funding for the child support program. So one more quick thing that the other directors have not mentioned, the funding methodology that was talked about by the lao, some counties were seriously underfunded compared to other counties. The budget methodology serves to work that out. The restoration of the 6 million, 17 million helps to balance that. And I say that as Sacramento county, who is not actually receiving any of that money. But I think it's important so we can continue the good work of the program and keep the program going. Thank you very much.
Thank you.
Name and affiliation, please.
Chair Jackson. My name is Michael Smitsky. I'm the executive director of the California Child Support association, formerly known as the California Child Support Directors Association. So CSDA to calcsa.
Did I get that memo?
Get it now, sir. So I'm not going to foot stomp too much what all of our members have said this afternoon, but one thing of note is that in my role as the executive director in my first year, I was wearing down the tread of my tires. Going to almost every single county in the state and seeing these offices firsthand, seeing constituents in different counties, caseworkers, child support specialists, leadership chains. I've seen the impacts that that two year cut has made in terms of the FTE reduction across the state. We as California, the national average for child support is one in six have a case. California, we're one in nine. This funding if restored and allowing us to get that FTE ratio up higher is critically important for us to getting closer to the national average. Thank you, sir.
Thank you. Name and affiliation please.
Tiffany Whiten with SEIU California. Speaking to the panel on the first panel that you had today. Appreciate the discussion and just want to underscore the importance for protection of our children and our youth. And from the harmful impacts of hr, one just would like to highlight and emphasize the need for eligibility workers to ensure that we can keep families and youth and our children enrolled so that they can receive medi CAL and CalFresh. We know that these impacts are going to be harmful to our communities and so we just want to underscore that the eligibility workers are the first responders to poverty and really appreciate the comments and discussion here today. Thank you so much.
Thank you.
Name and affiliation please.
Hello, Maida Castillo Garcia here on behalf of Parents Anonymous, it's important to maintain funding for California's parent and youth help lines, specifically those that focus on population based prevention such as Parents Anonymous. We hope that this committee could look into the funding of this vital program. The California Parent and Youth Helpline has provided vital emotional support to parents, children and Youth in all 58 counties with 80% of 85% of callers expressing that they feel supported after their call. Thank you.
Thank you very much. Seeing no other public comment, I want to thank everyone for their participation. As always, want to thank committee staff, want to thank my office staff as well, the sergeants, all the members who have participated. Obviously we have another tough year ahead of us, but I believe that we're going to do everything that we can to make sure that we keep people stable, making sure that we do right by these young people. And so as always, my office remains open for any further discussions in case you feel we have missed anything. But you know when I tell people all the time how many panels we have, when we do our, when we do our hearings, people are saying, what in the world were you thinking? But I just want to make sure that people know that if the issue is important, it deserves to be agendized and we will make the time for it. We want to make sure that all people are heard. Anyone who needs assistance from the state, we want to make sure that you and your issues are given the proper respect and the time that you deserve. Because your humanity is all you need to be heard here. And so, thank you all very much. And thank you, Lao Department of Finance as well, for your time. And with that, we are adjourned.