The Permanent Foster Care Rate Structure

Highlights

• California is restructuring rates so that they are based on the individual needs of each child, not the placement type.
• California’s permanent rate structure will provide youth in family settings the same level of funding to support care/supervision, strength building, and immediate needs at the child's assessed level of need, regardless of the placement type.
• Changes are designed to help address historical racial inequities and help break the cycle of intergenerational poverty and trauma.

Background

The interim rate structure created as part of CCR created a level of care system for children in family settings and a separate rate structure for those in congregate settings. Statute required the California Department of Social Services (CDSS) to establish an “ongoing payment structure no later than January 1, 2025”. To comply with the statutory deadline, the Permanent Rate Structure proposal was introduced on January 10, 2024, as part of the 2024-25 Governor’s Budget. In June of 2024 the Permanent Rate Structure passed as a part of Assembly Bill 161, the Health and Human Services Trailer Bill Language (TBL). The Foster Care Permanent Rate Structure payments will begin on July 1, 2027, or once automation is complete, whichever is later.

Overview of the CDSS Permanent Foster Care Rate Structure

Summary of the Foster Care Permanent Rate Structure

California is restructuring our rates so that they are based on the child’s assessed level of needs and strengths, and not based on the placement type.
California’s permanent rate structure contains three key innovations:

1. As mentioned above, the rates are based on a child’s assessed level of need.
2. There are two new categories of funding within the rate:
   1. Strengths building and maintenance
   2. Immediate needs
3. The funding shifts away from being connected to the placement type and is connected to the child.

Overview Documents

Trailer Bill Language

• AB 161: Human Services TBL: Foster Care Permanent Rate Structure
• Summary of Revisions to the Foster Care Permanent Rate Structure TBL in May Revision and June

The Child and Adolescent Needs and Strength (CANS) Assessment, the Decision Support Model, and the Latent Class Analysis

• The Latent Class Analysis Overview
• The CDSS CANS Assessment Website
• CDSS and the University of Kentucky's Center for Innovation in Population Health (IPH) CANS, LCA, and DSM Overview Webinar

Frequently Asked Questions

• CDSS Foster Care Rate Reform FAQ Document
(Posted 4/11/2024)

How the CDSS Permanent Foster Care Rate Structure was Developed

In preparation for the January 1, 2025, deadline to establish a permanent rate structure, CDSS engaged extensively with stakeholders in the Fall of 2022.

Feedback CDSS Received that the Permanent Rate Structure Aims to be Responsive to:

Feedback from Tribes:

During the ICWA State Plan Regional Convenings, TAC, Tribal Consultation, and additional meetings with Tribes, CDSS received feedback that:

• Culturally responsive services should be made available for Indian children and families.
• Indian children should not have to leave their community to receive services.
• Tribes should remain involved in a child's case.

Stakeholder feedback:

• Rates need to account for services/supports as well as care and supervision.
• Rates should follow the child and not the placement type.
• Assessment should identify the child’s level of need, not where the child should be placed.
• The current rates are inadequate across all placement settings.

Upon the release of the proposed DSS Permanent Foster Care Rate Reform Trailer Bill Language in March of 2024, CDSS hosted three workgroups to solicit feedback on the proposed structure. The three workgroups were the Strengths Building Program, the Immediate Needs Program, and All Other Components of the Proposal. Each of these three workgroups met four times each.