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49-006

109TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

2d Session

109-555

--CHILD AND FAMILY SERVICES IMPROVEMENT ACT OF 2006

JULY 12, 2006- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. THOMAS, from the Committee on Ways and Means, submitted the following

R E P O R T

[To accompany H.R. 5640]

[Including cost estimate of the Congressional Budget Office]

CONTENTS Page
I. Introduction 8
A. Purpose and Summary
8
B. Background and Need for Legislation
9
C. Legislative History
9
II. Explanation of Provisions 10
III. Votes of the Committee 23
IV. Budget Effects of the Bill 23
A. Committee Estimate of Budgetary Effects
23
B. Statement Regarding New Budget Authority and Tax Expenditures
23
C. Cost Estimate Prepared by the Congressional Budget Office
23
V. Other Matters Required To Be Discussed Under the Rules of the House 26
A. Committee Oversight Findings and Recommendations
26
B. Statement of General Performance Goals and Objectives
26
C. Constitutional Authority Statement
27
D. Information Related to Unfunded Mandates
27
VI. Changes in Existing Laws Made by the Bill, as Reported 27

SECTION 1. SHORT TITLE.

SEC. 2. FINDINGS.

SEC. 3. REAUTHORIZATION OF THE SAFE AND STABLE FAMILIES PROGRAM.

`SEC. 430. PURPOSE.

SEC. 4. TARGETING OF INCREASED SAFE AND STABLE FAMILIES PROGRAM RESOURCES TO SUPPORT MONTHLY CASEWORKER VISITS.

`(aa) the caseworker handling the case of the child visited the child at least once each month while the child was in such care; and

`(bb) the majority of the visits occurred in the residence of the child; or

SEC. 5. IMPROVEMENTS TO THE CHILD WELFARE SERVICES PROGRAM.

`LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS

`PURPOSE

`CHILD WELFARE TRAINEESHIPS

SEC. 6. REAUTHORIZATION OF THE COURT IMPROVEMENT PROGRAM.

SEC. 7. REAUTHORIZATION OF PROGRAM FOR MENTORING CHILDREN OF PRISONERS.

SEC. 8. AVAILABILITY OF ADDITIONAL PROMOTING SAFE AND STABLE FAMILIES RESOURCES FOR FISCAL YEAR 2006.

SEC. 9. REPORTS.

SEC. 10. EFFECTIVE DATES.

I. INTRODUCTION

A. PURPOSE AND SUMMARY

The Committee bill, H.R. 5640, as amended, includes provisions to (1) reauthorize the Promoting Safe and Stable Families (PSSF) program, (2) target resources towards ensuring children in foster care are visited on a monthly basis by caseworkers, (3) improve the Child Welfare Services (CWS) program, (4) reauthorize the Court Improvement Program, (5) reauthorize the Mentoring Children of Prisoners Program, and (6) appropriate for fiscal year (FY) 2006 the additional $40 million in mandatory funding provided under the Deficit Reduction Act of 2005 (P.L. 109-171) for the PSSF program.

Section 1 provides the short title of the bill. Section 2 includes a set of findings to the underlying bill which describe what is known about how States spend child protective services funds, and refer to research suggesting the changes included in this legislation will better protect children.

Section 3 extends the authorization of mandatory funding for the PSSF program at the current $345 million level for each of fiscal years (FYs) 2007 through 2011 and also extends the authorization of discretionary appropriations at the current $200 million level for each of FYs 2007 through 2011. It also seeks to focus program spending on services to families, increases the share of program funds set aside for Indian tribes, and allows tribal consortia to seek PSSF program funds.

Section 4 of the bill targets the recent $40 million increase in PSSF funds to support monthly caseworker visits with children in foster care, with a primary emphasis on activities designed to improve caseworker retention, recruitment, training, and ability to access the benefits of technology.

Section 5 makes several technical changes and other improvements to the CWS program, generally conforming this program more closely to the PSSF program, which shares many of the same goals.

Sections 6 and 7 reauthorize the current Court Improvement and Mentoring Children of Prisoners programs at their current funding levels, for each of FYs 2007 through 2011.

Section 8 appropriates for FY 2006 only the additional $40 million in PSSF funds provided under the Deficit Reduction Act of 2005 (P.L. 109-171).

Section 9 provides for certain biennial reports to the House Committee on Ways and Means and the Senate Committee on Finance on programs and activities funded by the CWS and PSSF programs.

Section 10 provides for effective dates.

B. BACKGROUND AND NEED FOR LEGISLATION

The bill approved by the Committee reauthorizes and improves important child protection programs. It reauthorizes the PSSF program for five years and targets new resources to ensure children in foster care are visited on a monthly basis by their caseworkers, responding to research showing a strong correlation between frequent caseworker visits and positive outcomes for children.

The bill improves and updates the CWS program, better aligning the services intended to ensure the safety, permanency, and well-being of children provided through this program and the PSSF program. It also continues the Court Improvement Program, the Mentoring Children of Prisoners program and ensures the availability of the additional $40 million provided for the PSSF program in FY 2006 by the Deficit Reduction Act of 2005 (P.L. 109-171).

C. LEGISLATIVE HISTORY

H.R. 5640 was introduced on June 20, 2006 and was referred to the Committee on Ways and Means. The Committee on Ways and Means marked up the bill on June 29, 2006 and ordered the bill, as amended, favorably reported.

The Committee on Ways and Means Subcommittee on Human Resources held a hearing on May 23, 2006 on proposals to improve child protective services such as those supported by the PSSF and CWS programs. Witnesses at this hearing provided comments on draft legislation reflecting provisions subsequently introduced by Subcommittee on Human Resources Chairman Wally Herger (R-CA) and Ranking Member Jim McDermott (D-WA) as H.R. 5640. In recent years, the Subcommittee on Human Resources also has conducted a series of oversight hearings on various aspects of the child protection system, which generally indicated a need for improved oversight and accountability throughout these programs.

II. EXPLANATION OF PROVISIONS

SECTION 1. SHORT TITLE

Present Law

No provision.

Explanation of Provision

The Act is named the `Child and Family Services Improvement Act of 2006.'

Reason for Change

Not applicable.

SECTION 2. FINDINGS

Present Law

No provision.

Explanation of Provision

The legislation includes a series of findings that (1) describe what is known about how States spend child protective services funds, (2) outline what measures research suggests are effective to combat child abuse and ensure child safety, and (3) highlight the goals and objectives for the approximately $700 million provided each year for the Child Welfare Services (CWS) and Promoting Safe and Stable Families (PSSF) programs.

Reason for Change

The findings highlight noteworthy changes made in this legislation that will improve and strengthen child protection programs and encourage States to invest Federal resources in up-front prevention activities to better ensure children are raised in safe, loving families.

SECTION 3. REAUTHORIZATION OF THE SAFE AND STABLE FAMILIES PROGRAM

Present Law

The Promoting Safe and Stable Families Amendments of 2001 (P.L. 107-133) made a series of findings describing (1) the effectiveness of family support programs directed at specific vulnerable populations, (2) the purpose of family preservation programs, (3) the importance of making available in a timely manner services that address family problems (in particular, services and treatment addressing substance abuse), and (4) how the rapid increase in the number of adoptions since enactment of the Adoption and Safe Families Act of 1997 has created a need for post-adoption services and for knowledgeable post-adoption service providers.

As a condition of approval of their State plan for the PSSF program, States must assure that they will spend no more than 10 percent of the Federal funds they receive for the PSSF program on administrative costs.

For fiscal year (FY) 2006, $345 million in mandatory funding is authorized for the PSSF program. For each of FYs 2002 through 2006, discretionary appropriations of up to $200 million are authorized for the PSSF program.

For each of fiscal years (FYs) 2002 through 2006, present law provides that one percent of the mandatory funds authorized and two percent of any discretionary funds appropriated for the PSSF program must be set-aside for tribal child and family services programs. Therefore, the minimum funding available per year for tribal programs is $3.45 million and the maximum is $7.45 million.

To receive PSSF funding, tribes must meet the same plan requirements that States must meet, which are generally related to planning and reporting on the planned use of the funds, providing services, and administering the funds received. However, the Secretary of the U.S. Department of Health and Human Services (the Secretary) may exempt an Indian tribe from any of the plan requirements that it determines is inappropriate for that tribe, after taking into account the resources, needs, and other circumstances of the tribe.

Out of the funds reserved for tribal child and family services programs from the PSSF appropriations, allotments are made to each eligible tribe based on the tribe's relative share of individuals under the age of 21 (among all eligible tribes). However, no tribe may have an approved program plan (i.e. be eligible for PSSF funding) if its allotment under this formula would be less than $10,000.

For the purposes of the PSSF program, present law defines `Indian tribe' as any Indian tribe and any Alaska native organization as they were defined in a certain section of the Job Opportunities and Basic Skills (JOBS) program (Title IV-F) of the Social Security Act as that section was in effect on August 22, 1986. The JOBS program was repealed as of the enactment (on August 22, 1996) of the Personal Responsibility and Work Opportunity Reconciliation Act (P.L. 104-193) of 1996.

Explanation of Provision

The legislation removes the findings subsection from present law.

It prohibits the Secretary from making any payment of PSSF funds to a State for administrative costs that exceed 10 percent of total program expenditures (Federal and non-Federal) of a State.

The legislation extends the authorization of mandatory funding for the PSSF program at the current $345 million level for each of FYs 2007 through 2011. It also extends the authorization of discretionary appropriations for the PSSF program at the current $200 million level for each of FYs 2007 through 2011.

The legislation increases the set-aside for tribal programs to 3 percent of any discretionary funds appropriated. It also increases the set-aside for tribal programs to 3 percent of the mandatory funds authorized and which remain after the separate reservation of funds for monthly caseworker visits is made (see additional provisions in Section 4 of the legislation described below). Therefore, the minimum funding available per year for tribal programs would be $9.15 million and the maximum funding would be $15.15 million. The legislation eliminates the ability of the Secretary to exempt tribes from any of the PSSF plan requirements. It permits an intertribal consortium (a group of tribes) to submit a single PSSF program plan for approval and clarifies that tribes can form consortia in order to meet the $10,000 minimum funding threshold required to be eligible to receive tribal PSSF funds.

The legislation makes a technical correction by striking the incorrect reference to `1986' and replacing it with `1996.'

Reason for Change

The PSSF program supports four categories of services provided to children and families: family preservation services, community-based family support services, time-limited reunification services, and adoption promotion and support services. The legislation recognizes the importance of encouraging States to invest in these activities. Thus the legislation provides for a $200 million increase in mandatory PSSF funds over the next five years, as made possible by the Deficit Reduction Act of 2005 (P.L. 109-171). In total $345 million in mandatory funding (the recent $305 million allotment of annual mandatory funds, plus a $40 million annual increase provided under the Deficit Reduction Act of 2005) will be provided in each of FYs 2007 through 2011. The legislation also maintains the current level of discretionary appropriations by also authorizing $200 million for each of FYs 2007 through 2011.

To ensure that the vast majority of these funds are invested in up-front prevention activities intended to protect children and support families, thereby preventing the unnecessary placement or lingering of children in foster care, this legislation prohibits the Secretary from making any payment of PSSF funds to a State for administrative costs that exceed 10 percent of the total (Federal and non-Federal) PSSF expenditures of the State.

The legislation also recognizes the importance of assisting tribes in their efforts to assist abused and neglected children. The legislation significantly increases the amount of funds provided to tribes and allows tribal consortia to apply for PSSF funds. To collect additional data and ensure proper oversight of these funds, tribes and tribal consortia interested in applying for this substantial increase in PSSF funds will be required to adhere to the same plan requirements as States. The Committee looks forward to examining this additional data to learn how these funds have helped the tribes better ensure the safety, permanency, and well-being of tribal children.

SECTION 4. TARGETING OF INCREASED SAFE AND STABLE FAMILIES PROGRAM RESOURCES TO SUPPORT MONTHLY CASEWORKER VISITS

Present Law

Out of the total annual mandatory funds authorized for the PSSF program, one percent is reserved for tribal funding, $10 million is reserved for the Court Improvement Program, and $6 million is reserved for research, evaluation, training and technical assistance related to the PSSF program. The remaining funds are then allotted to the States and territories.

A State, tribe, or territory is entitled to receive its full allotment of mandatory PSSF funds or an amount equal to 75 percent of its total expenditures for activities under the PSSF plan (whichever is less). Each State's allotment of mandatory (and any discretionary) funding is determined by each State's average relative share of children receiving food stamps (based on the most recent 3 years of data). Allotments for the five territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the Virgin Islands) are based on the formula that is used to distribute CWS funds. Each territory receives a minimum allotment of $70,000 and the remaining funds are distributed based on the assumption that each territory has low per capita income and on the relative share of the population under age 21 in the territory.

A State, tribe, or territory may certify that it will not need some or all of the PSSF funds allotted to it for a given fiscal year and the Secretary must re-allot those funds (using the regular program allotment methodology) to the other States, tribes, or territories.

Explanation of Provision

The legislation provides that out of the $345 million in mandatory funds authorized for the PSSF program in each of FYs 2006 through 2011, $40 million must be reserved annually to support monthly caseworker visits of children in foster care under the responsibility of the State, with a primary emphasis on activities designed to improve caseworker retention, recruitment, training, and ability to access the benefits of technology. (Note: Funds for FY 2006 were authorized under the Deficit Reduction Act of 2005 (P.L. 109-171), but are appropriated under Section 8 of this legislation; see below.)

States receiving an allotment of the $40 million reserved from PSSF funds to support monthly caseworker visits of children in foster care cannot use these funds to supplant any Federal funds already paid to the State under the Title IV-E program that could be used for the purposes outlined above.

As provided in Section 3 of the legislation, 3 percent of mandatory PSSF funds would be set aside for tribal programs. This legislation provides that the determination of the tribal set-aside amount would be made after the set-aside of $40 million to support monthly caseworker visits, but before any other reservations or allotments of PSSF funds are made.

The re-allotment provisions do not apply to the allotment of funds made out of the $40 million in funding that is reserved for support of monthly caseworker visits.

For FY 2006 and any succeeding fiscal year, funds reserved to support monthly caseworker visits are to be distributed to each territory or State that meets the specific requirements to receive funding provided for that fiscal year. PSSF funds to support monthly caseworker visits would be allotted first to eligible territories as they are currently allotted for the CWS program, except that there would be no minimum allotment of $70,000. The remaining reserved funds to support monthly caseworker visits would be allotted to each eligible State (including the District of Columbia) that meets the specific requirements for the funding. Each State's allotment from the $40 million set-aside would be based on the State's relative share of the average monthly number of children receiving food stamps (based on the most recent 3 years of data), among all States who meet the requirements to receive these funds.

There would be no specific requirements for a State or territory to receive its allotment out of this $40 million provided in FY 2006, although States and territories would need to adhere to the general rules related to PSSF program funds. These rules require that these funds may not be used to supplant Federal Title IV-E funds available for the same purposes. Also, to receive its full allotment of the funds, a State or territory must provide at least 25 percent of the total expenditures for activities to support monthly caseworker visits.

To receive its allotment from the $40 million provided for FY 2007, the legislation requires a State or territory to provide data to the Secretary that show, for the most recent fiscal year that the information is available, the percentage of children in its foster care caseload that received at least one visit per month from their assigned caseworker and the percentage of those visits that occurred in the child's residence.

To receive its allotment from the $40 million provided for FY 2008 and every fiscal year that follows, each State and territory would be held accountable for their efforts to monitor foster children. In order to continue to receive their share of these funds in FY 2008 and subsequent years, the legislation requires a State or territory to provide data to the Secretary showing that in the preceding fiscal year, (1) at least 90 percent of its children in foster care were visited by their assigned caseworkers at least once each month, and the majority of those visits occurred at the children's residences, or (2) that the State or territory is making the `requisite annual progress,' as determined by the Secretary, to assure these visits occur for at least 90 percent of their foster children no later than October 1, 2011. In addition, a State or territory must have in effect policies and standards, as determined by the Secretary, to know whether for at least 90 percent of their foster children the caseworker visited the child at least once each month during the fiscal year. Finally, the State or territory also must provide to the Secretary whatever documentation is necessary to demonstrate that it has not used these PSSF funds to supplant any Federal Title IV-E funding available for the same purposes.

The legislation entitles a State, tribe, or territory to receive the lesser of its full allotment of the mandatory PSSF funds which are not provided to support monthly caseworker visits, or an amount equal to 75 percent of its total expenditures for activities under the PSSF plan. Separately, the legislation also entitles a State or territory to receive the lesser of its full allotment of mandatory PSSF funds to support monthly caseworker visits, or an amount equal to 75 percent of its total expenditures for activities designed to support these visits.

Reason for Change

This legislation targets the additional $40 million in mandatory PSSF funds provided through the Deficit Reduction Act of 2005 (P.L. 109-171) to support monthly caseworker visits with children in foster care, with a primary emphasis on activities designed to improve caseworker retention, recruitment, training, and ability to access the benefits of technology. In order to be eligible to receive these funds in FY 2007, States and territories would need to provide data to the Secretary on the percentage of foster children visited by their assigned caseworker at least once each month and the percentage of these visits that occurred in the child's residence. Beginning with FY 2008, States and territories would remain eligible for a share of this $40 million set-aside from mandatory PSSF funds only if they can document that, for at least 90 percent of children in foster care under the responsibility of the State, either (1) the foster children are visited on a monthly basis by their assigned caseworker and the majority of these visits occurred in the child's residence, or (2) the State or territory is making progress necessary to achieve this 90 percent standard by October 1, 2011, as determined by the Secretary.

The targeting of these funds responds to research highlighting how monthly visits of foster children leads to better outcomes. The U.S. Department of Health and Human Services (HHS) recently completed initial Child and Family Service Reviews (CFSRs) in each State. No State was in full compliance with all measures identified in their CFSRs. The CFSRs revealed that States need to work to prevent repeat abuse and neglect of children, improve services provided to families to reduce the risk of future harm including by better monitoring the participation of families in services, and to strengthen up-front services provided to families to prevent unnecessary family break-up and protect children who remain at home. The CFSRs also found a strong correlation between frequent caseworker visits with children and positive outcomes for children, such as timely achievement of permanency and other indicators of child well-being.

Even though such research links positive results with frequent caseworker visits, and despite the fact nearly all States had written standards suggesting monthly visits were State policy, a December 2005 report completed by the HHS Office of the Inspector General found that only 20 States were able to produce reports showing whether caseworkers actually visited children in foster care on at least a monthly basis. Further, seven of these 20 States indicated that fewer than half of the children in foster care were visited on a monthly basis. A 2003 report by the Government Accountability Office (GAO, formerly the General Accounting Office) also found that the average tenure for a child welfare caseworker is less than two years and that this level of turnover negatively affects safety and permanency for children. Targeting the additional $40 million in PSSF funds to ensure children in foster care are visited on at least a monthly basis will promote better outcomes for vulnerable children, including by preventing further abuse and neglect.

Under the legislation, States and territories retain the flexibility to determine what activities will best assist them as they work to achieve monthly caseworker visits for at least 90 percent of children in foster care under the responsibility of the State. The legislation specifies that these additional funds are to support monthly caseworker visits, with a primary emphasis on activities designed to improve caseworker retention, recruitment, training, and ability to access the benefits of technology. However, amounts spent by States for these activities may not supplant what States already spend from their Title IV-E programs for these activities. The resources provided from this set-aside are intended to increase State investment in these important areas.

Some examples of the types of activities these funds may support include bonuses to caseworkers to support retention, increased training to assist caseworkers in their efforts to better protect children in care, better technology (i.e. laptop computers, cell phones, etc.) to ease administration and improve oversight of children in care, and loan forgiveness programs for child welfare caseworkers. However, States and territories should remain cognizant that continued receipt of these funds beyond FY 2007 will be contingent on their ability to document foster children are being visited on at least a monthly basis and that the majority of these visits occur in the child's residence, and that these funds cannot supplant what the State is already investing in these activities and for which the State is being reimbursed under the Title IV-E program. The Committee encourages States to invest in those activities with proven effectiveness in supporting monthly caseworker visits of foster children.

SECTION 5. IMPROVEMENTS TO THE CHILD WELFARE SERVICES PROGRAM

Present Law

Section 420 authorizes discretionary appropriations of up to $325 million per year for the CWS program on an indefinite basis. It also provides that funding for this program must be made in advance appropriations--that is, provided in the appropriation cycle immediately before the year in which States are allotted the funds--and includes language permitting two years of appropriations for this program in one appropriations bill to permit a transition to an advance appropriation.

Section 420 further specifies that the purpose of the CWS program is to enable the United States, through the Secretary, to cooperate with State public welfare agencies to establish, extend and strengthen child welfare services.

Section 425 defines child welfare services for all of Title IV-B of the Social Security Act as public social services that aim to achieve the following purposes: (1) protecting and promoting the welfare of all children, including handicapped, homeless, dependent, or neglected children; (2) preventing or remedying, or assisting in the solution of problems which may result in the neglect, abuse, exploitation, or delinquency of children; (3) preventing the unnecessary separation of children from their families by identifying family problems, assisting families in resolving their problems, and preventing breakup of the family where the prevention of child removal is desirable and possible; (4) restoring to their families children who have been removed, by the provision of services to the child and the families; (5) placing children in suitable adoptive homes, in cases where restoration to the biological family is not possible or appropriate; and (6) assuring adequate care of children away from their homes, in cases where the child cannot be returned home or cannot be placed for adoption.

Section 425 further specifies that money spent by States to comply with certain child protections and certain reporting requirements, or to provide reimbursement to families for non-recurring expenses related to the adoption of children (who meet the Federal eligibility criteria of Title IV-E) are to be understood as having been spent on child welfare services (as defined).

To be eligible for CWS funding, States are required to develop a plan that meets a number of requirements as specified in Section 422. Among other things, States are required to: (1) assure that standards and requirements imposed for child day care provided under Title XX (Social Services Block Grant) are applied to day care provided under this program (except for eligibility requirements); (2) assure that the State will train and make effective use of paid paraprofessional staff in administering the program (with particular emphasis on the full or part-time employment of low income individuals as community services aides), and of volunteers (unpaid or partially paid) to provide services and assist any advisory committees established by the State agency; (3) describe the services to be provided with CWS funds and the geographic areas where the services will be available; (4) describe the steps the State will take to provide these services and to make progress in covering additional political subdivisions and to expand and strengthen the range of existing services; and (5) describe the State's child welfare services staff development and training plan.

To be eligible for CWS funding, a State also must (since June 17, 1980) have completed an inventory of all children who had been in foster care for at least six months. Further, it must have reviewed State policies and judicial procedures regarding children abandoned shortly after birth (including policies related to legal representation of these children) and must be implementing policies and procedures determined (based on this review) to enable permanency decisions to be made expeditiously for abandoned children.

Section 425 provides that other definitions related to Title IV-B are included in Section 475. There is no statutory definition of administrative costs for purposes of the CWS program.

Funds appropriated for CWS are allotted to States (including territories) based on a statutory formula specified in Section 421.

Section 424 specifies that if a State certifies that it will not need all of its allotment of CWS funding to carry out its plan, those funds must be available for re-allotment to other States by the Secretary. However, CWS funds that are withheld or recovered because of a State's failure to meet the State plan requirements outlined in Section 422(b)(10), commonly referred to as the foster child protection requirements, may not be re-allotted by the Secretary.

Under Section 423, States are limited in the amount of Federal CWS funds that they may spend for foster care maintenance payments, adoption assistance payments and child day care necessary solely to allow the training or employment of a parent or relative with whom the child is living. No State may spend more of its Federal CWS funds for these purposes than the amount of the Federal funds it received for the CWS program in FY 1979 (when total Federal funding was $56.5 million). However, State expenditures on foster care maintenance payments may be counted as child welfare services for purposes of a State's satisfying the 25 percent match required to receive its full allotment of CWS funds.

Section 423 further specifies that a State may not receive more Federal funding for the CWS program than it received in FY 1979 unless the State maintains at least the level of non-Federal (State and local) expenditures it spent for these services in FY 1979. In determining both what the State's FY 1979 expenditure level was and what the State's current spending level is, States are to exclude all spending for foster care maintenance payments, adoption assistance payments, and child day care necessary solely to allow the training or employment of a parent or relative with whom the child is living.

Section 426(b) authorizes $4 million for each of FYs 1988 through 1990 to enable the Secretary to make grants to public or private non-profit entities to conduct demonstration projects to develop alternative care arrangements for healthy infants who would otherwise remain in inappropriate hospital settings.

Section 429 authorizes the Secretary to provide grants to a public or non-profit institution of higher learning to provide stipends for child welfare worker traineeships.

Explanation of Provision

The legislation maintains the annual discretionary authorization level of $325 million per year but limits the funding authorization to each of FYs 2007 through 2011 and moves this provision to Section 424. It eliminates the provision in Section 420 related to advance appropriations, including the provision related to making the transition from regular to advance appropriations.

The legislation strikes the `purpose' provision contained in Section 420 and the provisions in Section 425 that (1) define child welfare services and (2) specify that money spent for certain activities is understood as spent for child welfare services. It creates a new Section 421 stating that the purpose of the CWS program is to promote State flexibility in the development and expansion of a coordinated child and family services program that utilizes community-based agencies and that ensures all children are raised in safe, loving families, by: (1) protecting and promoting the welfare of all children; (2) preventing the neglect, abuse, or exploitation of children; (3) supporting at-risk families through services which allow children, where appropriate, to remain safely with their families or return to their families in a timely manner; (4) promoting the safety, permanence and well-being of children in foster care; and (5) providing training, professional development and support to ensure a well-qualified child welfare workforce.

The legislation eliminates the plan requirements in Section 422 related to child day care standards and those related to the use of paraprofessionals or volunteers. It restates and renumbers the remaining provisions with generally the same intent. The legislation provides that States must describe the services and activities to be funded under the CWS program and how those services will achieve the purposes of the CWS program. It also requires a State to describe the steps it will take to provide child welfare services Statewide, to expand and strengthen the range of its existing services, and to develop and implement services to improve child outcomes. It requires the State to describe its child welfare services staff development and training plan.

The legislation deletes the provision related to having completed an inventory of children in foster care. It clarifies that the State may include residential educational programs as a living arrangement for children for whom reunification, adoption, or guardianship have been ruled out as permanency goals, and rewrites the provision concerning policies and procedures for children abandoned shortly after birth to assert that a State must have in effect administrative and judicial procedures for children who are abandoned (at or shortly after birth) to ensure expeditious decisions can be made for their permanent placement.

The legislation includes two new State plan requirements for the CWS program: (1) requiring a State to assure that no more than 10 percent of the expenditures (Federal and non-Federal) made under the CWS program will be for administrative costs; and (2) outlining how the State will ensure that physicians or other appropriate medical professionals are actively consulted and involved in assessing the health and well-being of foster children and in determining appropriate medical treatment for these children.

The legislation restates that other definitions related to Title IV-B are included in Section 475. It defines administrative costs as those costs that the State incurs as part of administering the CWS program, provided those costs are for procurement, payroll management, management, personnel functions (other than the portion of salaries of supervisors attributable to time spent directly supervising the provision of services by caseworkers), maintenance and operation of space and property, data processing and computer services, accounting, budgeting, auditing and travel expenses (other than those related to caseworker provision of services or oversight of programs funded under CWS).

The legislation maintains the current allotment method while restating all of the allotment provisions to make stylistic changes, including adding subsection headings to describe subject matter and replacing `per centum' with `percentage.' It also makes conforming changes related to proposed changes.

The legislation maintains the basic allotment provisions but re-organizes them and includes subject headings. It deletes the provision prohibiting re-allotment of funds based on failure of a State to maintain the foster child protections required in the CWS State plan.

The legislation generally prohibits use of CWS funds for child day care, foster care maintenance payments, or adoption assistance payments. However, it permits States that can document to the Secretary that they spent CWS funds for those purposes in FY 2005 to continue to do so, but limits the amounts for these types of expenditures to the lesser of the State's cap for these expenditures under current law or the total amount of Federal funds they received for these expenditures from CWS in FY 2005. Thus States are permitted to maintain current spending for these purposes, subject to the current law cap on such spending.

The legislation deletes a provision allowing States to count spending on foster care maintenance payments for purposes of providing matching funds under the CWS program. It provides that in establishing what the required maintenance of effort level is, the State must include the funds it spent in FY 1979 (under this program) for foster care maintenance payments, adoption assistance payments and child day care. At the same time, for the purpose of determining whether a State is meeting that maintenance of effort requirement in FY 2007 and subsequent fiscal years, the State must continue to exclude costs for expenditures related to those same activities.

The legislation prohibits the Secretary from making any payment of CWS funds to a State for administrative costs that exceed 10 percent of the total (Federal and non-Federal) expenditures for the program.

The legislation deletes Section 426(b) which authorized funding of certain demonstration projects in FY 1998, FY 1999 and FY 1990.

It moves all of the language in Section 429 to a new subsection of Section 426, and makes other changes to Title IV-B related to the reordering or renumbering of provisions in the CWS program.

Reason for Change

The legislation essentially reorganizes and updates the CWS program.

Funding for CWS was first authorized in 1935 as part of the original Social Security Act (P.L. 74-271). Relatively few changes to this program have been made since 1980; thus provisions and changes included in this legislation are designed to ensure the focus of this program is on up-front prevention activities and services that support caseworkers in their efforts to protect children. For example, several provisions are meant to ensure that CWS program funds are spent on providing services to children and families, as opposed to foster care and adoption payments and child care expenses for which separate, and far larger, open-ended entitlement funds may be available each year. Especially given the limited amount of funds available for child protective services, and the significantly increased mandatory funding provided for those other purposes in recent years, this targeting of the CWS funds make sense.

Finally, several provisions seek to better coordinate the CWS program with the PSSF program, which combined make available approximately $700 million per year for activities that promote safety and ensure children are not needlessly lingering in foster care. For example, the legislation provides for the authorization of the CWS program through FY 2011--i.e. the same duration as the reauthorization it provides for the PSSF program--anticipating that future Congresses will examine these related programs together and make decisions about whether each is satisfying its intended purposes or needs further improvement or other modification.

SECTION 6. REAUTHORIZATION OF THE COURT IMPROVEMENT PROGRAM

Present Law

For each of FYs 2002 through 2006, an eligible highest State court (with an approved application) is entitled to a share of funds to assess and make improvements to its handling of child welfare procedures. A set-aside of $10 million from the mandatory funds authorized and 3.3 percent of any discretionary appropriation is provided from the PSSF program to support the Court Improvement Program. To receive its full allotment of these funds the court, in each of FYs 2002 through 2006, is required to provide at least 25 percent of the expenditures for this purpose.

Explanation of Provision

The legislation extends both the entitlement to payment out of the PSSF set-asides and the related matching requirement for the courts to receive their share of these funds for each of FYs 2007 through 2011.

Reason for Change

The Court Improvement Program has played an important role in assisting State courts in their efforts to expedite judicial proceedings for at-risk children. The legislation will ensure these funds continue to remain available, and is in addition to the $100 million provided over FYs 2006 through 2010 under the Deficit Reduction Act of 2005 (P.L. 109-171) to support training and data collection efforts of State courts.

SECTION 7. REAUTHORIZATION OF PROGRAM FOR MENTORING CHILDREN OF PRISONERS

Present Law

For each of FYs 2002 through 2006, present law authorizes the Secretary to make grants to support programs that provide mentoring services to children of prisoners. The law provides an indefinite authorization of appropriation of `such sums as may be necessary' for the Mentoring Children of Prisoners program.

Explanation of Provision

The legislation extends the authority of the Secretary to make these grants for each of FYs 2007 through 2011 and limits the program's funding authorization of `such sums as may be necessary' to five years (FY 2007 through FY 2011).

Reason for Change

Research indicates that children with incarcerated parents are seven times more likely than the general population to become incarcerated themselves, and are more likely to display a variety of behavioral, emotional, health, and educational problems. The continuation of this program will enable public and private organizations to establish or expand projects that provide one-on-one mentoring for children of incarcerated parents and those recently released from prison.

SECTION 8. AVAILABILITY OF ADDITIONAL PROMOTING SAFE AND STABLE FAMILIES RESOURCES FOR FISCAL YEAR 2006

Present Law

In December 2005, the Departments of Labor, Health and Human Services, and Education and Related Agencies Appropriations Act, 2006 (P.L. 109-149) appropriated what was then the full mandatory funding authorization of $305 million for the PSSF program for FY 2006. Enacted in February 2006, the Deficit Reduction Act of 2005 (P.L. 109-171) raised the mandatory funding authorization for this program to $345 million for FY 2006.

States may expend PSSF program funds in the fiscal year for which they were appropriated and in the immediately following fiscal year (i.e. funds appropriated for FY 2006 may be spent in FY 2006 and in FY 2007).

Explanation of Provision

The legislation provides the full FY 2006 mandatory funding authorization for the PSSF program by appropriating an additional $40 million in FY 2006 funds for the program. It allows a State to expend its allotment of this $40 million in FY 2006 PSSF funds in any of FY 2006, FY 2007 or FY 2008.

Reason for Change

The legislation makes available the full $345 million in mandatory funding provided for FY 2006 for the PSSF program.

SECTION 9. REPORTS

Present Law

States are required to develop a five-year plan for their use of PSSF funds, including goals established and services to be provided (in a given geographic area and to how many people). In addition, each State must annually review the services offered and any progress made toward achieving the goals established. The five-year plan, and annual review of services and progress, must be provided to the Secretary and made available to the public. As part of this same planning and review process, States also must submit some information related to their use of CWS funds.

Explanation of Provision

The legislation requires the Secretary to prepare a biennial report showing by State, territory, and tribe: (1) the level of expenditures and the programs and activities funded under the PSSF and CWS programs; and (2) the number of children and families served under the programs. In addition, it requires the Secretary to report on how spending under these programs has helped achieve the child and family services goals established by each State, tribe, and territory, in the required planning processes for these programs.

The legislation requires the Secretary to submit the first such biennial report to the House Committee on Ways and Means and the Senate Committee on Finance no later than July 1, 2008. Subsequent reports must be submitted not later than July 1 of every other year.

Reason for Change

The Committee is interested in learning about the services and activities funded by the PSSF and CWS programs, and the populations served by these child protection programs.

SECTION 10. EFFECTIVE DATES

Present Law

Not applicable.

Explanation of Provision

The amendments made by this act take effect as of the first day of FY 2007--except that the appropriation of FY 2006 funds for the PSSF program is effective immediately upon the legislation's enactment. In addition, if the Secretary determines that State legislation is required in order for a State to meet any new requirement under this act, the State has until the completion of the first State legislative session after enactment of this act to comply with such new requirements.

Reason for Change

The legislation provides for the effective date of these changes, while allowing States ample time to make any necessary changes to State laws.

III. VOTES OF THE COMMITTEE

In compliance with clause 3(b) of rule XIII of the Rules of the House of Representatives, the following statements are made concerning the vote of the Committee on Ways and Means in its consideration of the bill, H.R. 5640.

MOTION TO REPORT THE BILL

The bill, H.R. 5640, as amended, was ordered favorably reported by a voice vote (with a quorum being present).

IV. BUDGET EFFECTS OF THE BILL

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d)(2) of rule XIII of the Rules of the House of Representatives, the following statement is made concerning the effects on the budget of this bill, H.R. 5640, as reported: The Committee agrees with the estimate prepared by the Congressional Budget Office (CBO) which is included below.

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the House of Representatives, the Committee states that the Committee bill increases authorization levels by $1 billion over the 2007-2011 period. Certain child welfare programs categorized as direct spending also would be reauthorized by the bill, but the costs of extending these programs are already included in CBO's baseline. Therefore, this bill would not result in an estimated change in direct spending relative to baseline projections.

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the House of Representatives, requiring a cost estimate prepared by the CBO, the following report prepared by the CBO is provided.

July 10, 2006.

Hon. WILLIAM `BILL' M. THOMAS,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5640, the Child and Family Services Improvement Act of 2006.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Christina Hawley Anthony.

Sincerely,

Donald B. Marron,

Acting Director.

Enclosure.

H.R. 5640--Child and Family Services Improvement Act of 2006

Summary: H.R. 5640 would amend part B of title IV of the Social Security Act to reauthorize various child welfare programs and to direct funding to support monthly casework visits for foster children. The bill would increase authorization levels by $1 billion over the 2007-2011 period, and, assuming the appropriation of the authorized amounts, would result in additional outlays of $780 million over the same period.

Certain child welfare programs categorized as direct spending also would be reauthorized by the bill. As required by the Deficit Control Act, the costs of extending those mandatory programs--$1.4 billion over the 2007-2011 period--are already included in CBO's baseline. Therefore, enacting H.R. 5640 would not result in an estimated change in direct spending relative to those baseline projections.

H.R. 5640 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). The bill would benefit state, local, and tribal governments and any costs they incur would result from complying with conditions of federal assistance.

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5640 is shown in the following table. The costs of this legislation fall within budget function 500 (education, training, employment, and social services). 



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                                                                   By fiscal year, in millions of dollars--                          


                                                                                                       2006 2007 2008 2009 2010 2011 


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SPENDING SUBJECT TO APPROPRIATION                                                                                                    


Spending Under Current Law:                                                                                                          


Estimated Authorization Level 1                                                                         425  375  376  377  378  379 


Estimated Outlays                                                                                       424  430  390  380  377  378 


Proposed Changes:                                                                                                                    


Authorization Level                                                                                       0  200  200  200  200  200 


Estimated Outlays                                                                                         0   40  150  190  200  200 


Spending Under H.R. 5640:                                                                                                            


Estimated Authorization Level 1                                                                         425  575  576  577  578  579 


Estimated Outlays                                                                                       424  470  540  570  577  578 


Memorandum:                                                                                                                          


Direct Spending from Program Extensions Assumed in CBO's Baseline:                                                                   


Estimated Budget Authority                                                                             n.a.  345  345  345  345  345 


Estimated Outlays                                                                                      n.a.   93  283  328  345  345 


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Basis of estimate

For this estimate, CBO assumes that the legislation will be enacted near the end of fiscal year 2006, and that the authorized amounts will be appropriated for fiscal year 2007 and subsequent years. The estimated outlays reflect historical spending patterns for these programs.

The bill would amend and reauthorize the Promoting Safe and Stable Families (PSSF) program, Child Welfare Services (CWS), and the Mentoring Children of Prisoners program. PSSF is currently authorized through fiscal year 2006, and receives both mandatory and discretionary funding. Funding for the mandatory part of PSSF is $345 million for fiscal year 2006; the discretionary portion received an appropriation of $89 million for this year. Reauthorization of PSSF would have no effect on direct spending relative to CBO's baseline because those mandatory costs are already assumed in the baseline.

The other two programs affected by this bill--Child Welfare Services and the Mentoring Children of Prisoners program--are permanently authorized. CWS is authorized at $325 million per year, while the Mentoring Children of Prisoners program is authorized at `such sums as may be necessary.' The programs received funding of $287 million and $49 million, respectively, for 2006.

Spending subject to appropriation

The bill would reauthorize discretionary grants under Title IV-B of the Social Security Act, including the PSSF program, CWS, and the program for mentoring children of prisoners. PSSF currently is authorized through fiscal year 2006. The other programs are permanently authorized.

Promoting Safe and Stable Families. Discretionary appropriations for PSSF totaled $89 million for 2006. H.R. 5640 would authorize appropriations for the discretionary PSSF grants at $200 million annually from 2007 through 2011, for a total of $1 billion over that five-year period. Based on historical spending rates for the program, CBO estimates that resulting outlays would total $780 million over the 2007-2011 period.

Child Welfare Services. The bill would authorize the appropriation of $325 million for fiscal years 2007 through 2011 for grants to states for child welfare services. Such grants are permanently authorized at that level under current law. Thus, the proposed change would not alter authorizations over the next five years for CWS.

Mentoring Children of Prisoners. H.R. 5640 would authorize the appropriation of such sums as may be necessary for the Mentoring Children of Prisoners program from 2007 through 2011. The program, which is permanently authorized, received an appropriation of $49 million for fiscal year 2006. For the purpose of this estimate, CBO estimates the `such sums' authorizations under current law by adjusting the 2006 appropriation for inflation. Because the bill would not change the current-law authorization for this program, CBO estimates that its enactment would result in no change for the 2007-2011 period.

Direct spending

H.R. 5640 would reauthorize mandatory grants under the PSSF program at $345 million each year for fiscal years 2007 through 2011. Those grants currently are authorized at $345 million for fiscal year 2006. Under the procedures specified in section 257 of the Deficit Control Act, the costs of extending PSSF are assumed in CBO's baseline. The bill would reserve $40 million of those funds for grants to states to support monthly visits to foster children by caseworkers.

Provisions in section 5 of the bill could result in added costs for the federal program that provides federal matching funds to states for foster care and adoption assistance because it would restrict the amount of funds that could be spent under the CWS grants for foster care, adoption assistance, and child care activities. Although the vast majority of CWS funds that are spent on such activities go to expenses that would not be reimbursable under the federal program for foster care and adoption assistance, it is possible that the proposed restriction could result in increased claims under that program. The federal cost of any additional claims is likely to be less than $500,000 each year, CBO estimates. (CBO estimates that this change would have no effect on mandatory spending for child care activities.)

Intergovernmental and private-sector impact: H.R. 5640 contains no intergovernmental or private-sector mandates as defined in UMRA. State, local, and tribal governments would benefit from grant funds authorized in the bill. Any costs they incur from increased reporting of data would result from complying with conditions of federal assistance.

Previous CBO estimate: On June 21, 2006, CBO transmitted a cost estimate for S. 3525, the Improving Outcomes for Children Affected by Meth Act of 2006, as ordered reported by the Senate Committee on Finance on June 8, 2006. That bill does not address the authorization of CWS, and would authorize the Mentoring Children of Prisoners program at $67 million per year from 2007 through 2011, as compared with the authorization of such sums as may be necessary in H.R. 5640.

Estimate prepared by: Federal Costs: Christina Hawley Anthony and Jonathan Morancy; impact on state, local, and tribal governments: Lisa Ramirez-Branum; impact on the private sector: Molly Dahl.

Estimate approved by: Robert A. Sunshine, Assistant Director for Budget Analysis.

V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS


With respect to clause 3(c)(1) of rule XIII of the Rules of the House of Representatives (relating to oversight findings), the Committee, based on public hearing testimony and information from the Administration, concluded that it is appropriate and timely to consider the bill as reported.

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES


In compliance with clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the Committee states that the Child and Family Services Improvement Act of 2006 reauthorizes and makes improvements to the PSSF and CWS programs and other programs within the Committee's jurisdiction. Through reporting requirements in the legislation, Congress and the Administration will be able to assess State achievement of specified program goals.

C. CONSTITUTIONAL AUTHORITY STATEMENT


With respect to clause 3(d)(1) of the rule XIII of the Rules of the House of Representatives (relating to Constitutional Authority), the Committee states that the Committee's action in reporting this bill is derived from Article I of the Constitution, Section 8 (`The Congress shall have power to lay and collect taxes, duties, imposts and excises . . .'), and from the 16th Amendment to the Constitution.

D. INFORMATION RELATING TO UNFUNDED MANDATES


This information is provided in accordance with section 423 of the Unfunded Mandates Act of 1995 (P.L. 104-4).

The Committee has determined that the bill does not contain Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental mandate on State, local, or tribal governments.

VI. CHANGES IN EXISTING LAWS MADE BY THE BILL, AS REPORTED




SOCIAL SECURITY ACT


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TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES


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PART B--CHILD AND FAMILY SERVICES


Subpart 1--Child Welfare Services


 [Struck out->][ APPROPRIATION ][<-Struck out]






PURPOSE














STATE PLANS FOR CHILD WELFARE SERVICES








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ALLOTMENTS TO STATES




























PAYMENT TO STATES




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 [Struck out->][ REALLOTMENT ][<-Struck out]






 [Struck out->][ DEFINITIONS ][<-Struck out]








LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS




RESEARCH, TRAINING, OR DEMONSTRATION PROJECTS




































 [Struck out->][ CHILD WELFARE TRAINEESHIPS ][<-Struck out]








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PAYMENTS TO INDIAN TRIBAL ORGANIZATIONS






SEC.  [Struck out->][ 429A ][<-Struck out]  429. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.




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Subpart 2--Promoting Safe and Stable Families


 [Struck out->][ SEC. 430. FINDINGS AND PURPOSE. ][<-Struck out]














SEC. 430. PURPOSE.






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SEC. 431. DEFINITIONS.






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SEC. 432. STATE PLANS.