The 2020-21 Spending Plan

Human Services

Child Welfare Services

California’s child welfare services (CWS) system serves to protect the state’s children from abuse and neglect, often by providing temporary out-of-home placements for children who cannot safely remain in their home, and services to safely reunify children with their families. Total CWS spending for 2020‑21 is budgeted at around $7.1 billion ($818 million General Fund), including the Approved Relative Caregiver program, Kinship Guardianship Assistance Payment program, Adoptions Assistance Program, foster care payments, continued implementation of Continuum of Care Reform (CCR), extended foster care (EFC) programs for non-minor dependents (NMDs) and programs for former foster youth, and other special programs. Budgeted CWS spending for 2020‑21 represents more than a 10 percent increase from 2019‑20 budgeted spending (more than a 19 percent increase in General Fund spending). We describe the various elements driving these changes in more detail below. Additionally, we describe coronavirus disease 2019 (COVID-19) emergency response funding that has been allocated for various child welfare program flexibilities, waivers, and expansions since California entered into the current state of emergency in March 2020.

Continued CCR Implementation

Since 2012, California has been implementing a series of reforms known as CCR that institute fundamental changes to the way the state cares for youth in the foster care system. CCR aims to achieve a number of complementary goals including: (1) ending long-term congregate care placements; (2) increasing reliance on home-based family placements; (3) improving access to supportive services regardless of the kind of foster care placement a child is in; and (4) utilizing universal child and family assessments to improve placement, service, and payment rate decisions.

Some Elements of CCR Phase Out as Planned. As we described in our overview of the Governor’s January budget proposal for 2020‑21, funding that had been provided to counties to help facilitate the implementation of certain elements of CCR was set to expire after June 30, 2020. The 2020‑21 spending plan moves forward with these expirations, and state funding will no longer be provided to counties for Foster Parent Recruitment, Retention, and Support, Child and Adolescent Needs and Strengths implementation, or Resource Family Approval (RFA) ramp-up and backlog. (For more information about these elements of CCR, refer to our January overview.)

Foster Care Rates Receive Statutory COLA. Pursuant to current law, monthly foster care payments for county-approved resource families, Foster Family Agency (FFA) families, and Short-Term Residential Therapeutic Programs (STRTPs) increase by 3.72 percent in 2020‑21. This increase represents the annual cost-of-living adjustment (COLA). The administration’s May Revision proposal included a 5 percent rate reduction for STRTPs as a measure to help address the state’s overall budget problem, but the spending plan does not include any foster care payment reductions.

RFA Preapproval Funding for Emergency Caregivers Continued. Counties provide grant payments to emergency placement foster caregivers with a pending RFA application in an amount equal to the basic rate paid to approved resource families. In 2019‑20, recipients were eligible for this funding for up to 120 days (or up to 365 days for caregivers requiring an extension for good cause). Statute dictated that the maximum duration for preapproval funding would shorten to 90 days without the option for an extension beginning in 2020‑21. However, the 2020‑21 spending plan includes budget-related legislation that retains the 2019‑20 funding provisions for one additional year, delaying the reduction to 90 days until 2021‑22.

Funding for All Level of Care (LOC) Protocol Tool Rates Included in Budget. As another measure to help address the state’s overall budget problem, the administration’s May Revision proposal reduced funding for further rollout of LOCs 2‑4 in 2020‑21 (if there were not sufficient revenues to pay for it) while continuing to fund level 2‑4 rates for resource families already receiving them. Ultimately, the 2020‑21 spending plan does not make this adjustment, and retains full funding for LOCs 2‑4 as budgeted in January. (Although funding for full implementation of LOCs 2‑4 is included in the 2020‑21 spending plan, we note that these rates have been implemented only for FFA placements, and currently there is no plan or time line in place to roll out the LOC Protocol Tool beyond FFAs.)

FFA Social Worker COLA Continued. An increase for FFA social workers was included in the 2019‑20 budget. While the administration’s May Revision proposal eliminated this increase, the 2020‑21 spending plan retains the 4.15 percent increase. In addition, the 2020‑21 budget includes language stipulating that, if additional federal funds become available as a result of the Social Worker Time Study, these funds be used for the 4.15 percent FFA social worker increase. We note that the increase is subject to suspension at the end of 2021.

Funds Provided to Reimburse Counties for Certain CCR Implementation Costs. As proposed by the administration in January, the 2020‑21 spending plan includes $2.6 million General Fund to reimburse counties for costs associated with child and family teams. The 2020‑21 spending plan includes an additional $80 million General Fund for further reimbursement for county costs associated with CCR implementation The funds will be allocated to the counties according to the methodology developed by the County Welfare Directors Association and Department of Social Services (DSS).

Programs for Non-Minor Dependents and Former Foster Youth

Youth who were in foster care when turning 18 are considered to be especially vulnerable as young adults to homelessness, unemployment, and other adverse outcomes that may be accentuated during periods of economic downturn. As such, the state included a number of provisions in the 2020‑21 budget to bolster certain programs for these youth.

Extended Foster Care Eligibility Expanded. Since the passage of Chapter 559 of 2010 (AB 12, Beall), eligible youth may continue receiving certain foster care benefits—including housing support and case management—for a limited time after turning 18. Youth become ineligible for EFC upon turning 21. However, the 2020‑21 budget includes $37 million General Fund for flexibilities allowing NMDs who turn 21 to continue receiving payments for the duration of the budget year. (This amount includes $5 million for administration costs for counties to continue providing case management for these youth.) This payment extension was initially implemented in April in response to the COVID-19 state of emergency, recognizing youth may need ongoing support beyond the age of 21 during the pandemic and ensuing economic downturn. In addition, there are a number of EFC eligibility criteria that NMDs normally must meet in order to participate, such as being enrolled in school or working. For 2020‑21, NMDs who fail to meet these criteria due to COVID-19 may remain in EFC (as long as corresponding federal flexibilities remain in place).

Transitional Housing Program for Non-Minor Dependents (THP-NMD) Rental Rate Supplement. THP-NMD is a foster care placement for non-minor dependents whereby youth reside in approved rental units. The 2020‑21 budget includes $4 million General Fund to implement a new monthly benefit supplement for NMDs in high-cost rental markets. The supplement will be calculated on a county-by-county basis using Fair Market Rent data from the federal Department of Housing and Urban Development (HUD). Because the supplement must be automated within the systems used by counties to administer foster care payments, the benefit will be phased in by July 1, 2021 (or later, as determined by DSS) for counties using the CalWORKs Information Network, and by September 1, 2022 (or later, as determined by DSS) for counties using California Statewide Automated Welfare System.

THP-Plus Extension Option for Counties. THP-Plus offers time-limited housing benefits and other supports for former foster youth between the ages of 21 and 24 or 25 (depending on the county). The 2020‑21 budget includes a policy change in response to the COVID-19 pandemic and ensuing economic downturn, permitting counties to allow youth to continue participating in the THP-Plus program even if they exceed the maximum age of eligibility or the maximum program duration limits (24 or 36 months, depending on the county) for 2020‑21. Because THP-Plus is a county optional program, the spending plan does not include funding for this flexibility, but allows counties the option to extend these benefits.

Initiatives Subject to Suspension in 2021

Several child welfare programs are subject to suspension after December 31, 2021 (unless the Department of Finance makes a specified determination before then). The Governor’s January budget had proposed to extend the suspension date to June 30, 2023. Subsequently, the May Revision had proposed to eliminate the programs on the suspension list beginning July 1, 2021 as part of the administration’s budget solutions for the 2020‑21 fiscal year. Ultimately, the Legislature rejected any changes, and the 2020‑21 spending plan upholds existing law. The programs listed in Figure 1 are subject to suspension.

COVID-19 Response

Numerous Program Flexibilities and Waivers Implemented by Executive Order. Following Governor Newsom’s declared state of emergency on March 4, 2020 in response to the COVID-19 pandemic, a series of executive orders established various waivers and program flexibilities across a number of child welfare programs. For example, the Governor ordered that caseworkers could conduct remote visits rather than in-person visits and authorized some rate flexibilities for resource families directly impacted by COVID-19.

Some COVID-19 Flexibilities Retained Into Budget Year. Some waivers and flexibilities in response to COVID-19 have been extended into the 2020‑21 fiscal year, through one of two mechanisms:

• Included in Budget Language. The 2020‑21 spending plan includes funding and authorizations to continue a number of child welfare flexibilities and expansions, including: EFC expansion and flexibilities, THP-Plus eligibility expansion, emergency placement pre-approval funding extension, and remote approval of Supervised Independent Living Placements for NMDs. Also, the spending plan permanently changes the frequency of RFA review, making it biennial rather than annual.

• Extended Through New Executive Order. In June 2020, Governor Newsom signed an executive order extending a number of the child welfare program waivers and flexibilities. Extensions included waivers of certain in-person visitation requirements.

A Few Significant COVID-19 Spending Measures Expired in 2019‑20. The state dedicated more than $35 million General Fund in emergency COVID-19 response funding for a few extraordinary child welfare support measures implemented in the final quarter of 2019‑20. Funding to continue these initiatives into 2020‑21 was not included in the budget and these initiatives ended on June 30, 2020.

• Monthly Payment for Families in FM and ER Programs. Nearly $28 million was allocated in April 2020 to provide families in the Family Maintenance (FM) and Emergency Response (ER) caseloads monthly stipends of $200 in April, May, and June.

• Extra Supports for Foster Youth and Caregivers. Around $8.5 million in additional emergency funding was allocated in April 2020 to: bolster Family Resource Centers and the Parents Anonymous operated support hotline, provide access to technology for foster youth for remote learning and communications, and provide social workers with overtime support for COVID-19 related response and outreach to vulnerable families.