Needs-Based Plan and Budget (NBPB) Process for Child Welfare Services

Needs-Based Plan and Budget (NBPB) OVERVIEW

Agenda Funding Child Welfare Services Human Services Code (PA Statute) NBPB Cycle Partnering the Process Gathering, Analyzing and Planning Identifying Program & Resource Needs How Revenue Allocations are Determined Child Welfare Grants Special Grants FYI Questions

Funding Child Welfare Services The purpose of Title IV-B is to promote State flexibility in the development and expansion of a coordinated child and family services program that utilizes community-based agencies and 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 adoptive families; and (5) providing training, professional development and support to ensure a well-qualified child.

Funding Child Welfare Services How do counties pay for the child welfare services they need to provide to children and families?

Funding Child Welfare Services The Needs-Based Plan and Budget (NBPB) process is used to determine the service level of need in each county and develop funding allocations to ensure that the needs of the children and families being served are met. Act 30 of 1991 created the current funding and budgeting process.

Human Services Code

Human Services Code Act 30 amended the Code to require a needs-based budgeting process Section 709.1 establishes the needs-based budget timeline Section 709.2 requires the release of guidelines and a process for the Department s review and needs-based budget determinations Section 709.3 limits reimbursements to counties to the amount appropriated each fiscal year

NBPB Cycle

NBPB Cycle (Calendar Year 2018) February Tentative State Budget (2018-19) November State Budget presented to Governor s Budget Office (2019-20) March Counties begin formal planning for next budget (2019-20) August July Counties submit next years budget (2019-20) Final State Budget (2018-19)

Partnering the Process

Partnering the Process Commissioners Courts Private Providers Families CCYA & JPO Needs-Based Plan and Budget 4/13/2025 11

Partnering the Process Is there anyone missing? Schools Churches Public Other Government Agencies Counties need to engage all stakeholders in the process to achieve a plan that represents the needs of the children and families being served. 4/13/2025 12

Gathering data, Analyzing and Planning

Gathering data, Analyzing and Planning Through agency planning efforts, the program and fiscal staff analyze the data available to them, coupled with input from the community, to identify trends and address service needs. NBPB provides the opportunity to request the resources needed to provide services to children and families.

Gathering data, Analyzing and Planning Summarizing activities in gathering input Input from contracted service providers Outcomes Service Levels Capacity Resource Needs Selection of Data Process in analysis

OCYF Priorities for FY 2019-20 Child and Family Services Review Findings Identification and expansion of Service Array to address Complex Cases Least Restrictive Placement Settings for Children and Youth in Out-of-Home Care Safely Reducing the Number of Children and Youth in Out-of- Home Care Strengthen Service Delivery to Transitional Age Youth Providing Quality Services Taking a Multidisciplinary Approach Against Opioid Abuse Identifying and Serving Children and Youth Victims of Human Trafficking Eliminating the Permanency Goal of APPLA Family First Prevention Services Act 4/13/2025 16

Identifying Program and Resource Needs

Identifying Program and Resource Needs As part of the planning process, OCYF identifies areas which may impact a county s budget. Counties are not limited to requests related to OCYF identified areas. Examples: Workforce Increased Fees for Clearances Governor Wolf s proposal to update the Overtime Rule Transportation Impacts of new or pending federal legislation (ex: Family First Prevention Services Act)

Identifying Program and Resource Needs Budget forms cover three budget years Actual Expenditure Year (FY just ended) Year just completed prior to submission of this NBPB with actual services delivered Implementation Year (FY just started) Last Year s Certified services amended for implementing current service needs Proposed NBPB Year (upcoming FY) Projected Service and Financial Need for the year starting the following July 1st from the County s submission

Actual Year FY 2017-18 County Adjusted Estimated Actuals (BASE) Estimated expenses for remainder of FY 2017-18 YTD FY 2017-18 Expenses

Implementation Year The completed Actual Year or Estimated Actual Year is the base for the county s requested Implementation Plan FY 2017-18 Expenses (actuals or estimated actuals) Expense changes anticipated in FY 2018-19 FY 2018-19 Implementation Plan

NBPB Year The completed Implementation Plan is the base for the county s final requested NBPB Expense changes anticipated in FY 2018-19 FY 2019-20 Needs Based Plan and Budget FY 2018-19 Implementation Plan

Identifying Program and Resource Needs Service Expenditure Adjustments must contain: ADJUSTMENT TITLE Identifying Name CLASSIFICATION A, E, F, G, M, N, U DESCRIPTION OF SERVICE Briefly describe what is being provided JUSTIFICATION NARRATIVE Supportive information and data; details are necessary. Highlight if the need is tied to a mandate or the Demonstration Project. Consistent with the narrative. ADD L CHILDREN/UNITS OF SERVICE Identify how many additional/less children and/or days of care are affected PROJECTION OF COST Show your math! ! Must support the justification and narrative and tie to the cost center adjustments COST CENTER ADJUSTMENTS Allocation of cost by cost center Cost Centers are a grouping of like expenditures (see Title 55 PA Code 3140.22 and 3140.23) Must Answer: WHO, WHAT, WHERE, WHEN, WHY, HOW & HOW MUCH 4/13/2025 23

Identifying Program and Resource Needs Annualization- request full funding for something that was approved in prior NBPB for a partial year Expansion of Existing Service/Program request the additional cost associated with an existing service expanded to a different level The number of children served, staff, etc. does not change Fixed Asset - acquisition, amortization, or repair of a fixed asset IT items should be included in the IT Grant. Expenditure Adjustments for IT items will only be considered in extenuating circumstances Fixed Assets for new staff delivering a new service would be included as New Program/Service Grant Pick-Up request costs to support continuation of a program or service that is no longer eligible as a PaPP or that was previously funded by an entity outside of NBPB 24

Identifying Program and Resource Needs Maintenance of Existing Service - increase/decrease the cost associated with a service, staff, etc. The number of children served, staff, etc. does not change One time operating costs or fee increases need removed in the subsequent FY New Program Service request funding for a new service (like a new Evidence Based Program) or a service that was previously unfunded Start-up costs and other one-time costs that are not fixed assets associated with a new program/service should be removed in the subsequent FY Utilization of Service - increase/decrease the number of units or children receiving the service 25

Identifying Program and Resource Needs New initiative or service can be requested in the first year for 6 months; up to 10 months with adequate justification New staff positions can be requested for 8 months in the first year Vacant staff positions can be requested for 10 months; exceptions possible 26

Identifying Program and Resource Needs Justification should Answer: What is the current practice and how will that practice be impacted ? What additional resources, or shift in resources, will be needed ? What steps were taken in determining the resource being requested will meet the identified need ? What data supports the identification of the level of resources needed ? What structure is needed to support the incorporation of the identified resource into practice ? 4/13/2025 27

Identifying Program and Resource Needs Budget Variables Local Politics Court Decisions President Judges New Legislation (State and Federal) Revenue Stream Reductions Eligibility Changes Staffing Issues 4/13/2025 28

How Revenue Allocations are Determined

What types of revenue are available? It depends on the types of services a county provides and, for some revenues, the child s eligibility. 30

How Revenue Allocations are Determined In PA, the county child welfare program is supported with a complex mix of federal, state and local funds Federal funding streams include: Title IV-E Foster Care (FC) Title IV-E Adoption Assistance (AA) Title IV-E Guardianship Assistance Program (GAP); referred to as Subsidized Permanent Legal Custodianship (SPLC) Title IV-E Child Welfare Demonstration Project (CWDP) Title IV-E Chafee; referred to as Independent Living (IL) Temporary Assistance to Needy Families (TANF) Social Services Block Grant (SSBG); referred to as Title XX Title IVB part 1 Medical Assistance 4/13/2025 31

How Revenue Allocations are Determined Title IV-E FC Helps states pay for eligible children s allowable costs for licensed/approved foster family homes and child care institutions Used for administrative costs related to management of the child welfare program and training for staff, foster parents and some private agency staff State and local funds must be used to meet the federal match requirement 4/13/2025 32

How Revenue Allocations are Determined Title IV-E AA Provides ongoing financial assistance to meet the needs of eligible children who are adopted with special needs Used for administrative costs related to management of adoption assistance program and training for staff and adoptive parents State and local funds must be used to meet the federal match requirement 4/13/2025 33

How Revenue Allocations are Determined Title IV-E GAP (SPLC) Provides ongoing financial assistance to meet the needs of eligible children who enter into subsidized permanent legal custodianship arrangements Used for administrative costs related to management of the SPLC program and training for staff and permanent legal custodians State and local funds must be used to meet the federal match requirement 4/13/2025 34

How Revenue Allocations are Determined Title IV-E CWDP Flexible funds can be used for any Title IV-E or IVB allowable cost if: Youth is under the age of 18 (no other eligibility requirements must be met) All other traditional Title IV-E claims have been supported All other waiver intervention costs have been supported State and local funds must be used to meet the federal match requirement 4/13/2025 35

How Revenue Allocations are Determined Title IV-E Chafee (IL) Provides assistance to help current and former foster youth achieve self-sufficiency Federal match requirement met by the state TANF Used to support family preservation, reunification, support services and emergency shelter costs for eligible children No federal match requirement 4/13/2025 36

How Revenue Allocations are Determined Title IVB Part 1 Grant is allocated based on population funding Used for prevention and reunification services, excluding investigative services, and non-secure placement settings Federal match requirement met by the state Title XX (Social Services Block Grant) Grant is allocated based on population funding Used for social services that prevent or remedy neglect, abuse or exploitation of children and preserve, rehabilitate or reunite families No federal match requirement 4/13/2025 37

How Revenue Allocations are Determined Medical Assistance Generally used to support staff time spent on allowable activities State and local funds must be used to meet the federal match requirement 4/13/2025 38

How Revenue Allocations are Determined Federal Funding recap: Each of the funding sources have specific requirements concerning the use of funds Title IV-E and TANF can only be claimed if a child meets eligibility requirements Title IV-B, Title XX, Title IV-E- Chafee (IL), CWDP & TANF allocations are capped allocations, meaning county claims can t exceed the allocation Title IV-E FC, AA, GAP (SPLC) and Medicaid are uncapped allocations The level of federal financial participation ranges from 50% to 100% 4/13/2025 39

How Revenue Allocations are Determined Uncapped Revenue (default) Projections Funding sources for both the Implementation and the NBPB years are based on the revenue to expenditure ratios from the Actual year These ratios are applied to the appropriate approved Implementation and certified NBPB expenditures (different funding sources for different type of expenditures) Each cost center is projected separately All Title IV-E programs (except for CWDP) are automatically adjusted for the declining Title IV-E population

How Revenue Allocations are Determined Title IV-E Subsidies and Maintenance (including CWDP) are factored by the appropriate year s federal medical assistance percentage (FMAP) rate. Title IV- E Administrative costs are factored by the federal financial participation (FFP) rate State Share of YDC is 60% of the net budgeted YDC expenditures The state share of YDC is NOT capped and is not included in the County s Act 148 allocation

How Revenue Allocations are Determined State Act 148 is projected for the NBPB year by reducing the projected expenditures by the other revenues and multiplying it by the applicable state participation rate established. The balance is the County s share of reimbursable expenditures Allocated to each county based upon need as certified through NBPB Used to support the delivery of child welfare services to all children and families served by the county agency State participation rates vary for different services and require a local match For the County s Estimated Actual and Implementation Years, State Act 148 is capped at the approved allocations. Amounts exceeding the allocations become county funded 4/13/2025 42

How Revenue Allocations are Determined Local (County) Match Matching funds required by various levels of services As state level of funding increases, the county s required match also increases 4/13/2025 43

How Revenue Allocations are Determined 4/13/2025 44

How Revenue Allocations are Determined State Act 148 can only be used once all other appropriate funding sources and client-generated revenues have been exhausted (per 3140.46 Title 55 PA Code). State Act 148 reimburses a portion of the remaining costs based on the state participation rates and allowability of the costs. Final State Act 148 appropriations are determined by legislature, which is proportionately distributed to individual counties. Distributions are based on OCYF s request to the Governor s office. 4/13/2025 45

How Revenue Allocations are Determined A reduction of federal revenue places increasing burdens on the state and county. A reduction of state revenue places the burden on the county. Overmatch is excess county revenue that occurs when a county s Act 148 allocation is exhausted due to expenditures exceeding certified levels or to a loss of other revenue sources. 4/13/2025 46

Child Welfare Grants

Child Welfare Grants Needs Based Plan and Budget is not all-inclusive. Counties can also request incentivized funding through Special Grants (earmarked for specific purposes). Examples include: Evidence-Based Programs (EBP) Pennsylvania Promising Practices (PaPP) Housing Initiative Alternatives to Truancy Prevention (ATP) Independent Living Services Information Technology Statewide Adoption and Permanency Network 4/13/2025 48

Child Welfare Grants Special Grants are reimbursed at higher state participation rates but are restrictive to specific types of services. Reimbursement rates range from 60% to 95%. Evidence-Based Programs 95% Housing and Independent Living 85% Pennsylvania Promising Practices and Alternatives to Truancy Prevention 90% Information Technology 60% NBPB funding is not as restrictive as Special Grants, but services are generally reimbursed at lower state participation rates. Reimbursement rates range from 50% to 100% based on the service provided (per 3140.22 of Title 55 PA Code). 4/13/2025 49

Child Welfare Grants Information Technology The county can request IT costs for consideration, assuming they align with the goals of the statewide Child Welfare Information System (CWIS) and comply with the federal and state statutes and regulations. Counties must consider whether the costs meet the federal requirements at 45 CFR 95 Subparts F and G Any costs that do not meet federal requirements must be separately reported. Example of an ineligible federal cost is new development and contracted costs that have not received prior approval from the Administration for Children and Families (ACF). 4/13/2025 50