COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES

APPROPRIATIONS COMMITTEE

SUBCOMMITTEE ON HEALTH AND HUMAN SERVICES

STATE CAPITOL MINORITY CAUCUS ROOM ROOM 418 HARRISBURG, PENNSYLVANIA

THURSDAY, MARCH 26, 2009 9:05 A.M.

PRESENTATION ON CHILD WELFARE SYSTEM IN PENNSYLVANIA

BEFORE: HONORABLE KATHY MANDERINO, MAJORITY SUBCOMMITTEE CHAIRMAN HONORABLE MATTHEW D. BRADFORD HONORABLE HONORABLE DEBERAH KULA HONORABLE JOHN MYERS HONORABLE CHERELLE L. PARKER HONORABLE HONORABLE KATIE TRUE MINORITY SUBCOMMITTEE CO-CHAIRMAN HONORABLE BRIAN L. ELLIS HONORABLE JOHN R. EVANS HONORABLE DOUGLAS G. REICHLEY HONORABLE RICHARD R. STEVENSON

ALSO IN ATTENDANCE: HONORABLE MATTHEW E. BAKER HONORABLE CURTIS SONNEY

————————— JEAN DAVIS REPORTING 7786 Hanoverdale Drive • Harrisburg, PA 17112 Phone (717)503-6568 • Fax (717)566-7760 2

1 ALSO PRESENT: LISA FRAELICH 2

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4 JEAN M. DAVIS, REPORTER NOTARY PUBLIC 5

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1 I N D E X

2 TESTIFIERS

3 NAME PAGE 4 LISA FLEMING 5 BUDGET ANALYST HOUSE APPROPRIATIONS COMMITTEE...... 5 6 ESTELLE B. RICHMAN 7 SECRETARY, DEPARTMENT OF PUBLIC WELFARE...... 20

8 ANNE MARIE AMBROSE COMMISSIONER, PHILADELPHIA DEPARTMENT 9 OF HUMAN SERVICES...... 33

10 JAMES A. LAUGHMAN EXECUTIVE DIRECTOR, OFFICE OF THE 11 HUMAN SERVICES ADMINISTRATOR, LANCASTER COUNTY...... 40 12 TERRY L. WATSON 13 DIRECTOR, OFFICE OF CHILDREN AND YOUTH SERVICES, CENTER COUNTY...... 46 14 MARC CHERNA 15 DIRECTOR, ALLEGHENY COUNTY DEPARTMENT OF HUMAN SERVICES...... 55 16 DANIEL A. STYBORSKI 17 PROGRAM DIRECTOR, LAUREL YOUTH SERVICES, BLOSSBURG...... 64 18 ANDREA H. BOYLES 19 DIRECTOR OF OPERATIONS, CENTRE COUNTY YOUTH SERVICES BUREAU, 20 STATE COLLEGE, PA...... 74

21 NANCY E. SABOL, MA EXECUTIVE DIRECTOR, 22 GANNONDALE, ERIE, PA...... 82

23 GWENDOLYN BAILEY EXECUTIVE DIRECTOR, YOUTH SERVICES, INC., 24 PHILADELPHIA, PA...... 87

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1 (TESTIFIERS, cont'd.):

2 NAME PAGE JAMES E. ANDERSON 3 EXECUTIVE DIRECTOR, JUVENILE COURT JUDGES COMMISSION...... 95 4 JUDGE REA B. BOYLAN 5 COURT OF COMMON PLEAS, BUCKS COUNTY...... 105 6 ROBERT STANZIONE 7 BUCKS COUNTY CHIEF JUVENILE PROBATION OFFICER.....110

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1 P R O C E E D I N G S

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3 SUBCOMMITTEE CHAIRMAN MANDERINO: Good

4 morning.

5 We're ready to start our hearing.

6 Lisa.

7 MS. FLEMING: I hope I can do this in eight

8 minutes. Again, my name is Lisa Fleming. I am a

9 budget analyst with the House Appropriations

10 Committee.

11 What I tried to do is I tried to boil down a

12 very complex system into a few slides for you. And

13 there should be PowerPoint handouts available. If we

14 run out, I'm going to have this posted on our

15 website, www.hacd.net, hopefully by the end of today,

16 if not, by the end of the week.

17 SUBCOMMITTEE CHAIRMAN MANDERINO: I'm sorry.

18 I didn't read my agenda. We did allot you a little

19 bit longer than eight minutes. I'm sorry.

20 MS. FLEMING: That's okay. Just in case.

21 The child welfare budget in the General Fund

22 budget, for those who don't know, is under the county

23 child welfare appropriation.

24 And when discussing what to do with the

25 Subcommittee hearing, we found out that the overall 6

1 budget for DPW tends to be dominated by questions

2 about the really, really big programs, your medical

3 assistance programs.

4 A lot of people like to talk about the

5 income maintenance programs, what they see as the

6 cash welfare programs, for political reasons and

7 other reasons.

8 But this is a really large cost driver in

9 the DPW budget that people don't always realize how

10 much money is actually going into the system. And

11 it's unique in that it's really heavily weighed on a

12 balance between the State and the counties and the

13 private providers.

14 So there's a lot of people affected by this

15 in the realm of the budget and, of course, the

16 Commonwealth's children are the ones that are most

17 affected at the end.

18 So with that, I'll try to do this overview.

19 And like I said, it's a pretty complex system. I

20 tried to make it as user-friendly as possible.

21 Basically, like I was saying, the child

22 welfare system is designed to provide government

23 services that are geared toward promoting the safety,

24 permanency, and well-being of the children of

25 Pennsylvania. 7

1 There's various goals of the system. The

2 ones that I picked out that I thought were worth

3 noting is protecting the children who have been or

4 are at risk of being abused and neglected, assisting

5 children who have been temporarily or permanently

6 removed from their parents' homes, and supporting and

7 preserving families.

8 Like I said, this is a State-supervised and

9 county-administered program. The ultimate

10 responsibility lies with the Department of Public

11 Welfare, in particular their Office of Children,

12 Youth, and Families, OCYF.

13 That office will review county plans and

14 budget requests relating to the child welfare system.

15 They also develop and implement policies and

16 regulations. They monitor the policies and the

17 programs then and enforce program standards and

18 requirements. And it looks like I put county request

19 twice, but, you know, mistakes happen.

20 The counties provide the services to the

21 children and their families. The child welfare

22 services are administered by Children and Youth

23 Agencies at the county level.

24 Juvenile justice services are administered

25 by juvenile probation offices. And the determination 8

1 of need, of course, they use the guidelines the DPW

2 puts down and what's in State law and Federal law.

3 But the county agencies are responsible for

4 determining a child's need for services.

5 Like I said, there's many laws that govern

6 the system. There's the Public Welfare Code, the

7 County Code, the Juvenile Act, the Child Protective

8 Services Law, and Adoption Act.

9 The Public Welfare Code will probably come

10 up a little later because there are some proposed

11 changes dealing with the oversight authority of DPW

12 and the reimbursements of counties for services as

13 part of this budget proposal. So it was important to

14 point that out.

15 Just a little brief blurb about the county

16 responsibility. Regulations require that each county

17 provide services, again, to keep children in their

18 own homes; prevent abuse, neglect, and exploitation;

19 and to help families overcome problems that result in

20 dependency and delinquency.

21 Counties are also required to provide

22 reunification services, designed to reunite children

23 in placement with their families, and to provide a

24 permanent home for a child in placement where

25 reunification is not an option. 9

1 Those are what they're required to provide.

2 But counties often and should try to provide services

3 to prevent children from coming into the system in

4 the first place. And unfortunately, in tight budget

5 times, these are the type of programs that tend to

6 not get as much funding.

7 So when there's a possibility to fund these

8 prevention programs, I know that it's a concern of a

9 lot of members on both sides of the aisle to try to

10 find money for prevention programs because we know in

11 our heads that, you know, prevention is going to stop

12 a more costly system in the end. But when times get

13 tough, we are so often just pouring money into the

14 mandated services. So I think that's important to

15 note.

16 Again, this is just a list of the required

17 services that they're required to take at the county

18 level, placement services, adoption services, and any

19 other services that are ordered by the Court as well.

20 So the Courts also play a key role in the child

21 welfare system.

22 County employees are required to perform the

23 following activities: intake, investigation, family

24 assessment, case planning, and case management. But

25 for other services, counties may contract with 10

1 private providers. And that's where the private

2 providers come in in this joint system that we run

3 here in Pennsylvania.

4 And because the counties are contracting the

5 private providers, there's going to be a lot of

6 variance amongst the different counties with how many

7 private providers are providing those services, the

8 cost of those services. So that's important to keep

9 in mind, too, when we're discussing budget issues.

10 There's a few categories of services that

11 you might hear come up today. I tried my best.

12 There's not really good definitions out there, I

13 discovered, so we did some brainstorming in our

14 office to try to find some good definitions of these

15 types of services so when they come up in testimony,

16 you're not sitting there scratching your head.

17 In-home services includes things like

18 counseling, parenting skills, training, treatment,

19 and therapy. The overall goal is usually to improve

20 the home environment to prevent abuse, neglect, and

21 prevent placement and keep these children in the

22 home.

23 These services are provided to a family when

24 there's a problem that doesn't require the child to

25 be removed from a home. There's no imminent danger 11

1 to the child.

2 Also, in-home services may be provided to

3 families with the child in placement if they see that

4 family reunification is an option. Budgetwise,

5 in-home services are a lot less expensive. And

6 there's lots of research backing in-home services as

7 a good placement option than institutional settings.

8 Placement services are out-of-home living

9 arrangements provided to children who have been

10 removed from their families. There's community-based

11 placement that could be your kinship or relative

12 care, foster care, emergency shelter, and independent

13 living.

14 And then there's institutional placement

15 with State-run juvenile detention centers and also

16 private residential treatment programs.

17 Then we have family preservation and

18 prevention services. These again are those

19 preventive programs aimed at keeping children out of

20 the child welfare system. And they can include

21 after-school activities, youth activities, perhaps

22 employment readiness for parents to have stability in

23 the households.

24 And again, that overall goal is to

25 strengthen families and prevent all those things that 12

1 might put a child into our child welfare system.

2 And again, the family reunification services

3 are focused on keeping families together and not

4 pulling them apart and getting a family unit the help

5 that they need, not just, you know, the child, to

6 help the children have a stable place to return and

7 remain at home.

8 And then there are adoption services. These

9 are provided to children where perhaps family

10 reunification is not a possibility or a Court orders

11 parental rights to be terminated.

12 Services will include preparing the children

13 for the adoption process and also helping the

14 families who are adopting the children.

15 Historically, larger counties had maintained

16 their adoption units and smaller counties had bought

17 into the statewide adoption network. There's been a

18 move over the past few years to sort of pull everyone

19 into the statewide adoption network and have a more

20 unified system.

21 So I thought I'd point that out as well in

22 case that came up because there's some special grant

23 money associated with that in the budget.

24 Now, getting into the funding stuff. Child

25 welfare services in Pennsylvania are funded with 13

1 State, Federal, and local revenue sources.

2 DPW reimburses counties for a portion of

3 their expenditures incurred while providing these

4 services. And you might hear these referred to as

5 Act 148 payments.

6 The counties are then responsible for the

7 difference. And that's referred to as a county

8 match. So those are some terms you might hear come

9 up today that I thought I should point out.

10 Depending on the type of service, there's

11 different reimbursement rates. I won't read through

12 all of them. But it ranges from 100 percent for

13 adoption services to 50 percent for juvenile

14 detention costs.

15 This is an important slide you might want to

16 refer to later on again, with some of the changes

17 that are being proposed with changing some of the

18 reimbursement rates to focus on in-home services and

19 a few other things.

20 Again, the funding streams are State and

21 Federal funds and the county match. State funds,

22 again, you might hear it referred to as Act 148

23 payments. County funds might be referred to as

24 county match.

25 Federal revenues, there's the Title IV 14

1 E-funds, which some of you might have heard quite a

2 bit about for various reasons. These are funds that

3 are provided to the States for children in foster

4 care, adoption of eligible children, and for some

5 administrative and training costs related to these

6 services.

7 The Title IV and the Social Security Act at

8 the Federal level, if you ever want to have some fun

9 reading.

10 You might have heard about the Title IV

11 E-funds because there's been some audits that

12 Pennsylvania has undergone relating to IV-E that

13 we're sorting out still and have come a pretty long

14 way. They also have served the purpose of having us

15 re-examine our IV-E spending in Pennsylvania and how

16 we do things. There's some issues that might come up

17 with that later.

18 You might have also heard it because it was

19 part of the Federal stimulus package. We're getting

20 a slightly enhanced rate on some other IV-E funds.

21 Likewise, with the Federal funds, there's

22 Title IV B-funds. These are also specifically

23 targeted funds. They are for services with the goal

24 of keeping families together, your preservation,

25 prevention, reunification. 15

1 And then there's two Federal funding streams

2 that are a bit more flexible, meaning they're not

3 targeted toward specific purposes like Title IV-E and

4 IV-B.

5 Those are some TANF block grant funds. This

6 was an issue a few years ago because we had to rein

7 our TANF block spending back and target it more

8 toward its initial purpose of funding employment

9 services for people trying to move off government

10 dependency to self-sufficiency.

11 We weren't able to use some of the surpluses

12 we had put into the child welfare system and it

13 created a big hole we had to backfill with State and

14 county dollars. It strapped the system for a little

15 bit.

16 And if you looked at old budget books, you

17 would see that, you know, the child welfare State

18 budget component has increased by like $500 million

19 over the past few years. And that was largely the

20 result of the TANF block grant funds going away.

21 Likewise, there's social services block

22 grant funds. And those are more general purpose

23 funds as well.

24 The big part of the budgets that you'll

25 probably hear talked a lot about today deals with the 16

1 needs-based budget process that was outlined in Act

2 30 of 1991. It requires that DPW submit a

3 determination of the statewide child welfare funding

4 based on these needs-based plans and budgets that are

5 submitted to them by the counties.

6 Each year each county will assess and

7 identify their service needs for their county and

8 outline the strategies that they plan on doing to

9 institute the services and develop a supporting

10 budget which they then submit to DPW for review.

11 DPW sits down with them. And there's a

12 give-and-take to the process; but in the end, OCYF

13 will certify what they determine to be the county

14 need. And that's what is the basis for the budget

15 request for the county child welfare services

16 appropriation.

17 For this year -- this coming year, I should

18 say, the 2009-'10 budget, OCYF certified a total

19 needs-based budget expenditure of $1.785 billion.

20 And that's not just State dollars, I should point

21 out. That's the total expenditures. So that would

22 be paid with all the funding streams that I mentioned

23 earlier.

24 The certified budget includes an increase

25 for mandated services where necessary. But there's 17

1 no cost-of-living adjustment for purchase services.

2 That's what's affecting a lot of the providers that

3 will be talking today, as there has been in few years

4 past. And I believe that would be about $17 million

5 per 1 percent increase if we would do a

6 cost-of-living adjustment. And given the current

7 revenue situation, you can see how tight that would

8 be.

9 In addition to the needs-based budget

10 expenditures, DPW -- OCYF approved about $93 million

11 in State funds for special grants. And these are

12 targeted pools of money that are trying to align the

13 child welfare system with some of the goals that DPW

14 has set forth. And this again is outside of the

15 needs-based budget prices. So these are State funds.

16 There's money there for evidence-based

17 programs, PA promising practices, adoption programs,

18 independent living programs, some housing

19 initiatives, information, technology, and State

20 reintegration.

21 And again, a lot of these programs, while

22 related to keeping mandated services in check, are

23 dealing a lot with trying to improve the system to

24 help children, to keep children in home services, to

25 save money, and hopefully to sort of realign the 18

1 process.

2 Again, there's some related proposals out

3 there you might hear about today. One deals with

4 amending those reimbursement percentages and some of

5 the requirements of Act 30. I believe DPW might be

6 talking about that -- I'm sure others will as well --

7 and some of their proposals to help realign the

8 system.

9 Again, Act 30 was passed in 1991. And the

10 system has changed dramatically since then as well as

11 the budget situation.

12 There's also a contract documentation

13 bulletin that was put out that caused quite a bit of

14 a stir dealing with how providers and counties submit

15 invoices or submit administrative costs, so that

16 might come up as well.

17 And again, Representative Manderino talked

18 about this but we were hoping this Subcommittee

19 hearing will allow stakeholders in the needs-based

20 budget process because we are the Appropriations

21 Committee so we're initially focusing on budget

22 issues, not that policy issues don't play a key role

23 in a budget, but allow them to have an open

24 discussion about the proposed budget and also to

25 receive some of their suggestions on how to sustain a 19

1 stable and effective system for the Commonwealth's

2 children.

3 And again, I know we had a lot of people ask

4 to testify today. But we hope that this is the first

5 step in opening a dialogue on this very important and

6 complex issue.

7 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you,

8 Lisa.

9 When we pull the screen up, I would invite

10 all the members who are here to come up to the chairs

11 in the front and we'll get started.

12 Good morning again. And before I let

13 members introduce themselves and we get started,

14 housekeeping. The restrooms on this floor are a

15 little tricky to find. The women's is on this side.

16 The men's is on this side. But you have to walk in

17 the first door. It looks like you're walking in an

18 office. And then when you walk inside the first

19 door, you can ask somebody. They'll point you to the

20 restrooms. You won't see men's and ladies' until you

21 walk through the front door.

22 Let me reintroduce myself. I'm going to

23 let my co-chair, Republican Chair, introduce herself

24 and we'll move down the line.

25 SUBCOMMITTEE CO-CHAIRMAN TRUE: Good 20

1 morning, everybody. Katie True from Lancaster

2 County.

3 REPRESENTATIVE KULA: Good morning. Deb

4 Kula from Fayette and Westmoreland Counties.

5 REPRESENTATIVE STEVENSON: Dick Stevenson,

6 Mercer and Butler Counties.

7 REPRESENTATIVE SONNEY: from

8 Erie County.

9 REPRESENTATIVE J. EVANS: John Evans from

10 Erie and Crawford Counties.

11 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

12 And just as a reminder to members, since we

13 have to do our homework as well, we are going to hear

14 from all of the presenters and then do questions and

15 discussion at the end.

16 So we need to be a little bit more diligent

17 ourselves in making notes about our questions or our

18 comments. And I see Representative Briggs has joined

19 us from Montgomery County. So as he makes his way up

20 here, I have now introduced him.

21 And, Secretary Richman, you are in order to

22 proceed.

23 SECRETARY RICHMAN: Thank you.

24 Good morning, Representative Manderino,

25 Representative True, and Subcommittee members and 21

1 staff.

2 I am Estelle Richman, Secretary of the

3 Department of Public Welfare. And I appreciate the

4 opportunity to testify today. I particularly

5 appreciate it because, as you mentioned, there is

6 little discussion in the appropriation process around

7 some of the most important issues of our budget. And

8 people stay very close to eligibility and medical

9 assistance as to the many other things that we're

10 responsible for oversight.

11 Pennsylvania's child welfare system is State

12 administered and county operated. Approximately 75

13 percent of our funding comes from a combination of

14 Federal Title IV-B and Title IV-E dollars and State

15 Act 148 funds.

16 The remaining 25 percent is funded by the

17 counties. DPW, through the Office of Children,

18 Youth, and Families, administers the child welfare

19 program.

20 In Pennsylvania, State law prescribes the

21 administration for the child welfare system and

22 includes providing the minimum standards, the

23 reimbursement of funds to the counties for their

24 provision of approved services.

25 Our primary focus is always on the safety, 22

1 permanency, and well-being of the children. We

2 operate from the assumption that children belong with

3 their own families and should receive necessary

4 services in the community rather than being placed

5 outside of their homes and away from their families.

6 However, when a situation requires the

7 removal of a child, the county must intervene and

8 place the child. Placement should be the last resort

9 and children should be placed in the most appropriate

10 setting to meet the child's needs in a location that

11 promotes reunification with the family, if possible

12 and as soon as possible.

13 DPW has the responsibility to make sure our

14 taxpayers' dollars are going to appropriate services

15 and that we are receiving positive outcomes from

16 these services. This is the basis of the proposed

17 changes that I will outline today.

18 While accountability to the taxpayers and

19 good outcomes for children are always the goal, the

20 current economic climate has underscored the need for

21 change.

22 Under the existing legislatively mandated

23 needs-based planning and budget process, this year's

24 spending is based to a large extent on last year's

25 spending without regard to outcomes. 23

1 Counties have admittedly had problems with

2 the current funding practice because their past

3 spending does not always reflect their future needs.

4 In fact, if the counties achieve better

5 outcomes for the children and families they serve,

6 they face the real possibility of a shrinking budget

7 and less State and Federal financial support in the

8 next fiscal cycle.

9 From my perspective, the current system does

10 not ensure the wise investment of tax dollars nor

11 does it produce the best results for children and

12 families.

13 We need to refocus the system so we can

14 increase the quality of care and produce better

15 outcomes, while at the same time minimizing the

16 negative financial impact to both the State and the

17 counties.

18 Before I describe our proposed changes, I

19 would like to give you a little background about a

20 longstanding and continuing Federal audit. In the

21 late 1990s, the Federal Administration for Children

22 and Families, ACF, through its Office of Inspector

23 General, began a multi-year audit of the Title IV-E

24 reimbursement program.

25 The audit started with a look at 24

1 reimbursements in Philadelphia from 1997 through

2 2003. The Federal Government has completed four

3 different reviews and the audit continues today in

4 Allegheny County. The total amount of funding that

5 had been audited and still under review is close to

6 $1 billion.

7 In order to try to resolve the situation, I

8 initiated conversations and negotiations with the

9 Commissioner for ACF in 2006 regarding eligibility,

10 services, and allowable costs.

11 DPW and the Federal Government agreed on a

12 framework for moving forward and we initiated a new

13 process on July 1st, 2008.

14 A major element was for the State to set the

15 Title IV-E maximum allowable costs for eligible

16 services and eligible children and youth. While this

17 has meant some change for the counties, it has also

18 helped us re-establish credibility with the Federal

19 Government.

20 The negotiations with ACF continue as we try

21 to meet their requirements for accountability,

22 consistency, and continuity. Too much is at stake

23 for us to fall short of Federal standards. Failure

24 to meet these standards puts $330 million in Federal

25 IV-E funding at risk. 25

1 There is no viable way in this budget to

2 make up the loss of one-third of a billion dollars.

3 Many of the recommended changes I am going to outline

4 today are designed to make sure we meet Federal

5 standards and protect Federal dollars.

6 Before I outline our proposed legislation, I

7 would first like to update you on the status of the

8 draft bulletin DPW issued in February of 2009.

9 The bulletin outlined several changes,

10 including limits to allowable administrative costs

11 and retained revenue as well as a minimum occupancy

12 standard for the purpose of establishing appropriate

13 rates.

14 These proposed modifications were developed

15 with the goal of making sure we are managing costs,

16 especially administrative costs, wisely throughout

17 the child welfare system.

18 The draft bulletin concerning administrative

19 costs, retained earnings, and occupancy rates

20 generated significant controversy. Let me emphasize

21 that again. Significant controversy.

22 In response to these concerns and in order

23 to make sure there was ample opportunity for public

24 comment, I asked OCYF to hold six public forums

25 throughout the Commonwealth on the draft bulletin. 26

1 We also extended the period for written input to

2 allow for feedback from all of the public forums.

3 These proposals do represent a major change

4 for many providers, particularly those outside the

5 proposed standards for administrative costs and

6 occupancy rates. While we want change, we also want

7 providers to have sufficient time to adjust to the

8 new standards, because it's already at the end of

9 March, and there may not be ample time for providers

10 to make the changes for the new fiscal year.

11 As a result of the feedback, we are deleting

12 the sections of the bulletin -- deleting the sections

13 on the bulletin on retained earnings, administrative

14 costs, and occupancy rates.

15 While we still believe we need to manage

16 administrative dollars more tightly, we will make

17 these changes through the legislative process with a

18 proposed date of July 1st, 2010.

19 As a point of clarification, though, there

20 are several other sections of the draft bulletin that

21 are not affected by this decision.

22 We will proceed with portions of the

23 bulletin that outline the required budget format

24 completion and uniform cost documentation process to

25 set the maximum rate in Federal reimbursement levels. 27

1 These elements of the bulletin are needed to

2 ensure compliance with Federal IV-E standards and

3 protect Federal dollars.

4 I would now like to turn to our legislative

5 proposal. Pennsylvania's needs-based budget law

6 creates financial disincentives for counties to

7 improve the delivery of child welfare services.

8 As it now stands, positive outcomes for

9 children, including fewer children in out-of-home

10 placements, more children in permanent homes, and

11 more placements in less expensive settings, may

12 actually result in lower county allegations from the

13 State in the following fiscal year.

14 DPW is proposing legislative changes to

15 create better incentives for counties and better

16 outcomes for children. Instead of basing next year's

17 funding solely on this year's dollars, we propose to

18 review county budget requests by looking at these

19 factors:

20 What were the actions of the county during

21 the last year?

22 What were the outcomes achieved?

23 How much of the funding was spent?

24 And what does the county plan on doing

25 upcoming, including outcomes and plans to deliver 28

1 services?

2 Let me briefly summarize the four major

3 changes in our proposed legislation to bring about

4 this change.

5 County reimbursement. First, the proposed

6 legislation will modify selected county match ratios

7 to increase the State reimbursement for services that

8 lead to permanency for children.

9 Examples of these services include in-home

10 services, foster care, foster family services, and

11 independent-living services.

12 It will also reduce State reimbursement for

13 out-of-home services, such as congregate group homes

14 and residential institutional services, that do not

15 promote permanency for a child and often lead to a

16 child aging out of our system with no life or family

17 connection.

18 We're proposing to roll out the

19 reimbursement changes over a three-year period

20 beginning in the fiscal year 2010-2011 cycle and

21 ending with the fiscal year 2012-2013 cycle.

22 Provider reimbursement changes. The second

23 category is provider reimbursement changes. We are

24 proposing to cap indirect administrative costs at 15

25 percent beginning on July 1st, 2010; 14 percent 29

1 beginning on July 1st, 2011; and 13 percent beginning

2 on July 1st, 2012, and thereafter.

3 We also are going to look at executive

4 salaries. And we'll probably be relying greatly on a

5 survey of executive compensation that is already

6 underway as part of our rate-setting process in the

7 mental retardation system and will be expanded to

8 include the child welfare system.

9 We're also proposing a minimum 85 percent

10 occupancy for all residential services, excluding

11 emergency shelter and foster family services, when

12 formulating a per-diem cost.

13 Finally, we're proposing a 3 percent maximum

14 retained revenue per legal entity, which is per

15 provider, not program.

16 Changes to the contract and budget amendment

17 process. The third area covers contract changes.

18 Currently, a county may overspend up to 10 percent in

19 a cost category before requesting approval from DPW.

20 We're proposing to limit the amount a county

21 may overspend before seeking a budget amendment to 3

22 percent for counties of the first and second class

23 and then the lesser of 10 percent or $1 million for

24 other counties.

25 The tighter limit is designed to improve 30

1 accountability. We're not suggesting counties cannot

2 make budget and contract amendments. We're just

3 instituting a review mechanism earlier than current

4 practice.

5 Request for out-of-State placements.

6 Finally, we are proposing that counties work with DPW

7 before an out-of-state placement occurs in order to

8 receive reimbursement from the State.

9 For the vast majority of cases, our goal is

10 that children belong with their own families. The

11 distance involved in many out-of-state placements may

12 hinder the ability of children to reunite with their

13 families.

14 We're not suggesting that out-of-state

15 placements cannot occur. In fact, in many -- in some

16 cases, out-of-state placements may actually reduce

17 the distance between a child and his or her family.

18 For example, a placement in New Jersey may

19 make more sense for a Philadelphia youth than a

20 placement in Erie. Likewise, a placement in Ohio

21 makes more sense for a family who lives in

22 Pittsburgh.

23 DPW has already reached out to the Juvenile

24 Court Judges Commission to work with us on a process,

25 not hamper youth being placed appropriately in an 31

1 efficient and effective manner.

2 These are the major changes in the proposed

3 legislation. We have built in transition periods and

4 retained the ability for counties to work with DPW on

5 special cases.

6 Our desire is to have more, not less,

7 dialogue with the counties to find ways to reduce

8 counties' share on highly desirable services like

9 adoption support.

10 Most of all, I want dialogue and, thus, I

11 have requested that we form a work group that will be

12 led by my Executive Deputy to focus on the

13 legislation to ensure that we arrive at a workable

14 framework that has the support of our stakeholders.

15 The Executive Deputy did the same work with

16 the Office of Developmental Programs. And unlike a

17 one-time forum, the work group will be an ongoing

18 process with a relatively small group of people from

19 the child welfare community who share a commitment of

20 better outcomes and better management of system

21 resources. This includes protecting Federal dollars.

22 As you know, the legislative process

23 involves give and take, discussions on impact and

24 compromise. I fully expect these issues will produce

25 debate and I personally am willing to work with all 32

1 stakeholders to reach a conclusion.

2 Thank you for the opportunity to testify.

3 As I mentioned before, I unfortunately have an

4 emergency. I will need to leave, but I will be back

5 well before the roundtable begins.

6 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you

7 very much, Secretary Richman.

8 SECRETARY RICHMAN: My pleasure.

9 SUBCOMMITTEE CHAIRMAN MANDERINO: And next

10 we have the County Administrators. We might need to

11 pull two more chairs up. I think we are just going

12 to kind of pass the microphone down.

13 Anne Marie Ambrose, Commissioner,

14 Philadelphia Department of Human Services.

15 James Laughman, Executive Director, Office

16 of the Human Services Administrator, Lancaster

17 County.

18 We have Terry Watson, Director of the Office

19 of Children and Youth Services from Centre County.

20 And Marc Cherna, Director, Allegheny County

21 Department of Human Services.

22 I note that we have also been joined by

23 Representative Wheatley. And again, we're going to

24 move right through all of the panels and everyone is

25 going to be taking notes so that we can ask all of 33

1 our questions and have our dialogue at the end.

2 I don't care if you go in the order that you

3 were introduced. Or if you had a different thought

4 about order, you're welcome.

5 Who wants to start?

6 COMMISSIONER AMBROSE: I'll go first.

7 Thank you for the opportunity to appear

8 before you today to discuss Governor Rendell's

9 2009-2010 budget for the Department of Public

10 Welfare.

11 My name is Anne Marie Ambrose and I am the

12 Commissioner of the Philadelphia Department of Public

13 Services, the largest child welfare agency in the

14 Commonwealth.

15 We serve over 35,000 children and 17,000

16 families each year through child welfare and juvenile

17 justice programs. In addition, over 45,000 children

18 and youth are served in our prevention programs.

19 Our mission is to provide and promote safety

20 and permanency for children at risk of abuse,

21 neglect, and delinquency.

22 I'm sure that the Legislature understands

23 that children need to be protected during this time

24 of economic challenge. As funding decisions are

25 made, it is imperative that the children entrusted to 34

1 the care of DHS and DPW remain safe and that their

2 well-being is assured as we work to move them to

3 stable and permanent homes.

4 Under this unique budget process that was

5 described by Lisa Fleming, each county is to identify

6 its projected child welfare and juvenile justice

7 needs and develop a budget and plan to address them.

8 The Court plays a vital role in identifying

9 these needs and must sign off on the plan.

10 The Department of Public Welfare is to

11 assess whether or not a county's needs-based plan and

12 budget is reasonable and certify the aggregate

13 needs-based plan and budget for the counties to the

14 Governor and the leadership of the General Assembly.

15 I regret to report that DPW's certified

16 aggregate needs-based budget for FY 2010 is not a

17 certification of the counties' reasonable needs of

18 the children of this Commonwealth for child welfare

19 and juvenile justice services.

20 As a result, despite the statutory mandate

21 to fund the child welfare system based on the needs

22 of the children and families that we serve in

23 Philadelphia, DPW's needs-based certification for

24 Philadelphia County for FY 2010 is $40 million less

25 than what the DPW ultimately certified as the need in 35

1 FY 2009.

2 More troubling is that the FY 2010

3 allocation is $69.2 million less than the city's

4 projected expenditures for 2009 and 69.5 million less

5 than the actual expenditures for 2008.

6 To the extent that DHS has received any

7 explanation for DPW's substantial cuts in its

8 programs and funds this year, it appears that the

9 changes in the city's plan and budget are not based

10 on whether the plan was reasonable, as the law

11 requires. It appears that they are unrelated to the

12 documented needs of the children and families and

13 actual expenditures of the city.

14 DPW also jettisoned the needs-based budget

15 process for 2009. Although the General Assembly

16 appropriated funds for Children and youth Services

17 for FY 2009 based on DPW's approved needs-based plan

18 and budget for that fiscal year, DPW recently

19 announced unilateral cuts in those allocations.

20 It is greatly distressing that the needs of

21 families and children were ignored by the

22 Department's unilateral decision to cut DHS funding

23 for FY 2009 by $11 million seven months into the

24 fiscal year.

25 This level of unpredictability and 36

1 instability makes operating an effective child

2 welfare system extremely difficult and jeopardizes

3 the children that we are committed to protecting.

4 Further, despite the requirements and

5 mandates of the needs-based budget statute, these

6 2009 cuts were made without explanation and without

7 the advice and consent of the General Assembly.

8 The net effect is that DPW is withholding or

9 reallocating funds appropriated by the General

10 Assembly for child welfare programs.

11 The bottom line is that the city is left

12 with a disproportionate share of the child welfare

13 costs mandated by State law.

14 DPW's failure to adhere to the needs-based

15 budget process for 2009 and 2010 violates the State

16 needs-based budget law. But more importantly, it

17 most certainly jeopardizes the safety of

18 Philadelphia's children.

19 Our only recourse is to appeal to this

20 Committee and the General Assembly for help. We need

21 a FY 2010 budget for child welfare and juvenile

22 justice services that is realistic and fair to our

23 children.

24 We need the FY 2009 funds appropriated for

25 Children and Youth Services restored. We understand 37

1 the dire financial constraints of the State. But the

2 City of Philadelphia cannot absorb the shortfalls.

3 And the needs of our children have not diminished

4 with the economic crisis. We fear they will grow.

5 We ask that you instruct DPW to work with

6 counties in a true partnership and follow the

7 needs-based budget process and identify the actual

8 needs of children and families and make budget

9 decisions based on this process, as the law requires.

10 I am further asking you, as legislators, to

11 clearly look at the needs of Pennsylvania's children

12 and families and to restore needed funding to the

13 child welfare budget.

14 We are willing to work in partnership with

15 DPW to reduce the financial strains on the system.

16 In fact, during these difficult fiscal times, I have

17 already taken a number of aggressive steps to ensure

18 that DHS is a fiscally responsible agency.

19 DHS strongly believes that it must be

20 responsible for achieving positive outcomes for our

21 children and families in order to receive State

22 funding. In the past year alone, the number of

23 children in placement has decreased by 10 percent.

24 And DHS is partnering with the Casey Family

25 Program and DPW in its pledge to reduce the number of 38

1 kids in care by 10 percent in 2010.

2 DPW's proposed legislation to amend the

3 needs-based plan and budget of Act 148, as described

4 by the Secretary, so that reimbursement rates create

5 an incentive to reduce placements has merit.

6 It reflects a policy position that is

7 currently driving DHS practice in Philadelphia but

8 again, the counties must be part of the process if we

9 want to achieve better outcomes for children.

10 In partnership with the Courts, under the

11 leadership of Administrative Judge Kevin Dougherty,

12 we have increased adoptions and permanent legal

13 custodianship.

14 We have also decreased placements to the

15 lowest rate in over 20 years. Unfortunately,

16 juvenile justice placements have increased, which is

17 an issue that Judge Dougherty and I are working on.

18 But we also need to keep communities safe.

19 We will continue to work to improve the

20 long-term stability of children in our care, but the

21 financial resources are needed to continue this work.

22 Difficult economic times have placed

23 enormous stress on families in Philadelphia and

24 throughout the Commonwealth. When families are

25 suffering economic hardship and more and more parents 39

1 are working two jobs, we need to increase the safety

2 net for children.

3 Many of the programs are not fully funded by

4 the county's local share. Therefore, counties have a

5 choice to make; either increase their local share or

6 reduce programs such as after-school programs.

7 Our Mayor is deeply committed to continuing

8 to provide these services for Philadelphia's

9 children, but it will be a challenge to do so in the

10 face of the cuts that the State is proposing.

11 Again, we ask that you insist that the

12 Department follow the needs-based plan and budget as

13 the law provides and let counties determine their

14 needs and DPW review and certify the needs in a

15 transparent process that results in a budget that is

16 truly based on the county's reasonable needs.

17 We understand that there is a give-and-take

18 process. It hasn't occurred this fiscal year.

19 Philadelphia is more than prepared to tighten our

20 budget. However, we need to do so in partnership

21 with the Department of Public Welfare so we can make

22 the cuts based on what we know will not threaten the

23 safety of the children and families in Philadelphia.

24 Thank you.

25 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you. 40

1 EXECUTIVE DIRECTOR LAUGHMAN: Good morning

2 and thank you for the opportunity to provide

3 testimony on behalf of Lancaster County.

4 Lancaster County, according to the U.S.

5 Census Bureau, has surpassed the 500,000 population

6 mark and continues to be one of the fastest growing

7 counties in PA.

8 In perspective, Lancaster County is the

9 sixth most populated county in the Commonwealth.

10 Lancaster County has a three-member Board of

11 Commissioners who has been elected to oversee all

12 county government services, one of which is the

13 Lancaster County Children and Youth Social Services

14 Agency.

15 Currently, Lancaster County Children and

16 Youth Agency has 481 children in placement services,

17 including foster homes; 452 children receiving

18 in-home services; and 430 children engaged in the

19 in-take phase of services. On average, we serve

20 3,600 children each year. Additionally, in 2008, we

21 conducted over 870 child abuse investigations, a 20

22 percent increase from the previous year.

23 While I appreciate the ability to give you

24 some background information about Lancaster County

25 and our Children and Youth Agency, please allow me to 41

1 get to the serious issues at hand -- the budget,

2 service delivery, and the long-term effectiveness of

3 the child welfare system to protect children.

4 Let's start with the fiscal reality that

5 there is minimal funding provided directly to our

6 local Children and Youth Agency to address

7 prevention.

8 The child welfare system is reactionary and

9 until we have sufficient stable funding allocated to

10 purely prevention programs, it will be difficult to

11 be proactive in protecting children. While

12 prevention dollars have been allocated in other areas

13 of the budget, little can be found in our fiscal year

14 '09-'10 budget. Sufficient sustainable prevention

15 funding is necessary to protect children.

16 In the fiscal year 2009-2010 budget,

17 Lancaster County requested a $45.2 million budget

18 through the needs-based budget process. However, we

19 were only approved for $43.1 million.

20 We did receive special grants funding for

21 over $2.1 million. However, these funds are

22 categorically limited and have no guarantee of

23 sustainability. It is the issue of categorical

24 limitations and the lack of sustainability that leads

25 to larger concerns. 42

1 In a mad dash to reduce in-home placements

2 by an arbitrary 15 percent by the end of 2010, county

3 agencies have been informed that while OCYF will

4 support efforts to reduce placements, failing to get

5 to our designated levels will have financial

6 consequences to counties.

7 To be more succinct, during this fiscal

8 year, funding has been specifically allocated to

9 placement services and protective in-home services.

10 Counties have been told that if they exceed their

11 placement budget, the Commonwealth will not only

12 forbid any supplemental payments but will refuse to

13 allow counties to shift costs from their in-home

14 portion of their needs-based budget to cover

15 placement costs.

16 This means counties will be solely liable

17 and responsible for any placement costs above the

18 initial budget. No ifs, ands, or buts. No

19 partnership and no communication. It appears that it

20 is a bureaucracy telling a community what their

21 priorities should be and then punishing them for

22 their values, standards, and the day-to-day realities

23 of child welfare practice.

24 To be successful in protecting children

25 across the Commonwealth, there needs to be 43

1 reciprocity, not deficits, from the Commonwealth.

2 Respecting the values and cultures of the county

3 should be seen as a strength. I'm going to say that

4 again. Respecting the values and the cultures of the

5 county should be seen as a strength, not a deterrent,

6 to push an agenda that may ultimately cost the county

7 financially beyond their means.

8 And more importantly, it creates potential

9 risk to children by returning them to situations that

10 have not yet fully been resolved to meet an arbitrary

11 deadline. While this may indicate fiscal prudence,

12 it is not effective child welfare practice.

13 Honesty and good communication is essential

14 as well. Poorly thought out and blatant disregard

15 for experience and advice from counties only

16 compounds the problems that child welfare programs

17 face in these unparalleled times.

18 Let me explain. Despite hesitation and

19 previous experience from county child welfare

20 agencies, they were instructed, if not in essence

21 ordered, to add in their FY '09-'10 needs-based

22 budget the costs of legal counsel for parents'

23 attorneys in child welfare cases.

24 Administrators questioned and warned against

25 such actions but we were told, quote, the rules would 44

1 be re-written, unquote, and, quote, the law

2 interpreted differently this time around, unquote.

3 So attorney costs were included in the budget.

4 In Lancaster County, we were told just this

5 week that the costs were not allowable and were

6 removed from our '09-'10 needs-based budget. No

7 warning, no discussion, just a few program

8 representatives delivering the bad news. No

9 apologies or cares about the implication to counties

10 who might have been counting on yet another

11 unfulfilled promise from Harrisburg.

12 One positive step that we did see from OCYF

13 was the requirement to use a standard safety

14 assessment across the Pennsylvania child welfare

15 system. The idea is to establish a consistent

16 approach to making sound decisions when the child

17 enters the child welfare system.

18 While the concept and tool is sound, the

19 implementation has been a fiasco and has put a drain

20 on the county. Children and Youth Agency, OCYF, for

21 the first time that we can remember, required the

22 counties to assume the burden of training all their

23 staff between January 2009 and June 2009.

24 After being assured by the Department there

25 would be no burden to the counties, in reality, it 45

1 was fraught with problems. The time, energy, and

2 resources county staff had to put into doing training

3 has been massive.

4 Not only has there been no consideration for

5 the already burdensome responsibilities of local

6 agencies, now we had to do the Commonwealth's job

7 without any extra assistance from OCYF.

8 It made a lot of people wonder why the

9 Commonwealth's contractor, the University of

10 Pittsburgh's Child Welfare Competency Training

11 Program, wasn't doing what they are paid millions of

12 State funds to do.

13 Before I end my testimony, I would like to

14 mention a positive step undertaken in Lancaster

15 County. Last year, a Court-approved CASA Program was

16 established in Lancaster County. We have had

17 incredible interest in our community for this program

18 but we do have one glaring problem. No money is

19 allocated for CASA.

20 While CASAs have been listed as a best

21 practices initiative and can clearly play a key role

22 in an improved child welfare system, we need

23 designated funding to make CASAs a reality across the

24 Commonwealth. For Lancaster County, it would only be

25 a mere $75,000 to get our CASA up and running. 46

1 Please don't get me wrong. Many good

2 evidence-based practices and initiatives are helping

3 to improve the child welfare system and, more

4 importantly, assure child safety.

5 However, a county-based child welfare system

6 like Pennsylvania's requires special care. It

7 demands open communication, reciprocity, consistency

8 in message, elimination of unfunded mandates, and

9 sufficient funding. These issues must be addressed

10 if we are truly going to be successful in

11 transforming the child welfare system today,

12 tomorrow, and for years to come.

13 Thank you.

14 SUBCOMMITTEE CHAIRMAN MANDERINO: You timed

15 that in the mirror. You were eight minutes exactly.

16 EXECUTIVE DIRECTOR LAUGHMAN: You are

17 absolutely correct.

18 SUBCOMMITTEE CHAIRMAN MANDERINO: Good job.

19 DIRECTOR WATSON: Good morning.

20 My name is Terry Watson. It's a privilege

21 to speak to the members of the Subcommittee on the

22 important issues related to the operation of an

23 effective and efficient system to children, youth,

24 and families in the Commonwealth.

25 I have worked with children and families for 47

1 39 years, including over 34 as a Director at Centre

2 County Children and Youth Services. Centre County is

3 a fifth-class county.

4 Over the years, people have said, "I

5 couldn't do your job." Working Children and Youth

6 Services is a tough job. In pursuing our charge to

7 ensure the protection and safety of children and the

8 strengthening of families, there are rarely clear

9 distinctions in making decisions.

10 Rather, what the caseworker faces on an

11 ongoing basis every day are shades of gray. Workers

12 have to ask themselves, "Is it okay to continue to

13 work with this child and family or do other plans

14 need to be made to ensure safety?" "What does this

15 mean when the rubber meets the road?"

16 Most often, there is not an immediate and

17 severe danger to children. But what are the tough

18 decisions and even tougher actions that must happen?

19 What gut-wrenching things cause workers to

20 lose sleep? How about dealing with a child who has

21 been severely beaten or repeatedly raped by a parent

22 or caretaker?

23 What about the agony endured by a child when

24 they just cannot understand why they cannot stay with

25 Mom and Dad? What about making a recommendation to 48

1 the Court that will terminate a parent's rights

2 forever and a day?

3 Thankfully, these extreme situations don't

4 happen all of the time. Most often families or

5 friends can be a safe alternative for the children

6 who are at risk if the person cannot provide that

7 safety.

8 The child welfare system is becoming

9 increasingly focused on engaging and collaborating

10 with families to develop a workable plan to keep the

11 kids safe and resolve the necessary issues. However,

12 there are times the family places the children at

13 severe risk and the Court has to be petitioned to

14 remove the child from the family.

15 More and more, drug and alcohol use and

16 abuse by parents and children contribute to the

17 degree and severity of risk to kids. Then stress on

18 staff also is increasing because of the increased

19 level of intensity in the presenting cases.

20 It is not unusual for all levels of staff to

21 endure sleepless nights because the concrete proof of

22 the family instability is lacking but the child still

23 seems to be at high risk. In addition, the families

24 with whom we work often have untreated mental health

25 and/or domestic violence issues. 49

1 Since last fall, the unstable economy has

2 begun to make a bigger impact on people as well. How

3 will people react who have lost long-standing jobs?

4 Will there be anger, depression, domestic violence,

5 and child abuse? These are not uncommon reactions to

6 economic downturns.

7 The good news is that most often, Children,

8 Youth, and Families can work together to resolve

9 abuse and neglect issues and children can safely

10 remain in the home.

11 Many programs, including those based on

12 research or evidence as well as home-grown services

13 developed in the counties, have come a long way in

14 strengthening families, keeping children safe, and

15 reducing the need for out-of-home placement. Setting

16 and measuring outcomes for services assist in guiding

17 the system in what's effective.

18 What do caseworkers say about our system?

19 This could be summed up by a statement of a

20 caseworker who had worked in our office for some

21 years, left to raise her children, and then returned

22 to the agency.

23 She said, "I spend more time writing about

24 and documenting my contacts of my clients than

25 actually seeing them." When I asked a group of 50

1 experienced caseworkers their thoughts on what they

2 wanted to share with the Subcommittee, they said that

3 the amount of time spent on documentation is

4 counterproductive to the engagement of families.

5 The reality is that current requirements

6 restrict the number of contacts that can occur with

7 families. The time absorbed in documentation robs

8 the time necessary to engage those families.

9 Engaged clients are much more apt to make

10 and keep workable plans in conjunction with their

11 extended family and with other community supports.

12 If there is not sufficient time to do this, the

13 system is set up to fail the children and families

14 they serve.

15 In talking about the potential for budget

16 cuts, the workers said basically when that happens,

17 the agency staff picks the children and families who

18 will not be served, then crosses fingers and hopes

19 something bad will not happen.

20 In a telling statement, a worker asked, "Is

21 this a good business plan?" The other plea from

22 caseworkers to the Legislature and the Governor, no

23 matter who is sitting in those positions, whether

24 it's now or some other time, would be, don't make

25 sweeping, immediate changes statewide based on one or 51

1 a few isolated incidents.

2 Most often, what happens in these instances

3 is the requirement for more documentation of some

4 sort. There has to be a reasonable balancing between

5 the need for documentation and the need to spend

6 productive time with clients.

7 When I talked to caseworker supervisors,

8 they reiterated many of the things stated by the

9 caseworkers and added a request to put a hold on new

10 or expanded requirements and/or initiatives.

11 Over the last approximately two years,

12 county children and youth programs have been

13 presented with around 26 such programs. While it was

14 acknowledged that these programs are positive, the

15 reality is that sometimes too much of a good thing

16 all at once is counterproductive.

17 By meeting these new or expanded State and

18 Federal requirements or suggestions in this time

19 frame, there will actually be disengagement with

20 families and additional stress for caseworkers. This

21 is especially a problem for a system that already

22 historically has a low caseworker retention rate.

23 While it's understood that compliance with

24 State and Federal standards must be met, the best

25 solution would be to proceed in a planned, gradual 52

1 implementation of the requirements.

2 What's the impact of the current economic

3 conditions on counties? Since Children and Youth is

4 a department within county government, the fiscal

5 health of the county government affects how child

6 welfare services can be delivered on a local level.

7 Counties are faced with increasing costs and

8 reduced revenues. Many have already made cuts to

9 specific expenditures or made a general reduction to

10 the net use of county funds.

11 Often, our agency is advanced funds because

12 we receive reimbursement on expenditures from

13 previous quarters. With the reduction of county fund

14 balances, the ability to do so in the future, this

15 year and beyond, may not be possible.

16 A workable and helpful solution to the issue

17 of cash flow for counties would be the adoption of

18 legislation permitting quarterly advances for our

19 services. This would not mean increased funding, but

20 rather it would be given when the funds are needed.

21 If funds are cut from service areas in our

22 proposed budget on a State level and/or if

23 unanticipated high-end expenses occur, counties have

24 to absorb 100 percent of any expenses above the

25 certified amount of State funds. 53

1 In small and mid-sized counties, such

2 expenditures for even one or several youths can cause

3 great fiscal distress. Unless there are excess funds

4 available to cover these expenses, these costs must

5 be borne completely by the county and can never be

6 recouped.

7 Although payment above the certified level

8 by DPW has occurred over the last several years, the

9 current state of the economy makes this possibility

10 appear rather dim.

11 Also, the inability to anticipate the amount

12 of Federal IV-E reimbursement at this point makes it

13 impossible to know with certainty the amount of funds

14 that will be needed at the county level.

15 As an entitlement, child welfare services,

16 as they are currently defined, must be provided by

17 counties. In the end, counties will be faced with

18 reduction in strictly county departments in order to

19 fund required human services and also with reductions

20 to the staff roster and purchased social services for

21 child welfare or other human services programs.

22 If preventive services are eliminated,

23 placements will inevitably increase. The system will

24 be placed on the horns of dilemma.

25 Currently, legislation is being contemplated 54

1 in several areas that could affect the child welfare

2 system. Revisions to Act 30 and Act 148 regarding

3 the funding of the system need discussion and study

4 with all affected parties before anything is

5 finalized.

6 We need to ensure that the outcomes will be

7 good and not have any unintended negative

8 consequences. Many counties are also concerned about

9 the potential requirement for an ombudsman office for

10 the children and youth system. We are concerned that

11 it will be another administrative layer that would

12 duplicate activities already being performed.

13 In conclusion, the best way to achieve a

14 stable and effective system of services for children

15 and families is to have communication and

16 collaboration among citizens, private providers of

17 service, county governments, and the State

18 government.

19 We need to work together to accomplish this

20 end. If this doesn't happen, the system will founder

21 and we will not adequately serve the needs of

22 children, youth, and families.

23 Thank you.

24 SUBCOMMITTEE CHAIRMAN MANDERINO: Sorry

25 you're hanging on the end, Marc. Are you okay? 55

1 DIRECTOR CHERNA: That's okay. I think I'm

2 good.

3 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

4 DIRECTOR CHERNA: Good morning, everybody.

5 Thank you for giving me the opportunity to

6 testify on the child welfare system in Pennsylvania.

7 In Allegheny County, the Office of Children, Youth,

8 and Families is part of the Department of Human

9 Services which also consists of the Area Agency on

10 Aging and the Offices of Behavioral Health, Mental

11 Retardation, and Community Services, which provides

12 employment and training, homeless and supported

13 housing, the food programs, Head Start, LIHEAP,

14 Medical Assistance Transportation, the Human Service

15 Development funds, the Community Services Block

16 Grants, and a multitude of prevention programs.

17 We serve over 200,000 people a year, which

18 is about a sixth of the population, many whom receive

19 multiple services.

20 Having 194 funding sources under one roof

21 enables us to maximize support services to people in

22 need, including families involved in the child

23 welfare system. In 1996, we had 3,318 children in

24 placement. Today we have 1,884.

25 This dramatic reduction in placement was 56

1 greatly facilitated by the creation of the Department

2 and our being able to eliminate a siloed approach to

3 service delivery.

4 The benefits of integration and enabling

5 counties to have the flexibility and incentive to

6 invest in programs that improve safety, permanency,

7 and well being for children are the thrust of my

8 testimony today.

9 I've been in this business a long time and

10 have done a lot of work around the country. During

11 that time, there have been billions of dollars spent

12 to improve child welfare systems, but we still

13 struggle.

14 No State has passed the Federal Child Family

15 Service Review and Pennsylvania is no different.

16 It's been said that "child protection is not rocket

17 science. It's more complex."

18 But in spite of that, there is always public

19 and political demand for the quick fix; everyone

20 wants the answer. But if it was easy, we wouldn't be

21 talking about it here today.

22 There are some things that make a

23 difference. In my 27 years as a top administrator,

24 I've been involved in two major efforts to transform

25 systems. And it's been my observation that child 57

1 protection is most effective when the community is

2 engaged to take responsibility and join in the

3 effort.

4 To think government alone will be able to

5 keep all children safe from harm is flawed thinking

6 and creates a false sense of security. Caseworkers

7 are expected to visit children once a month. What's

8 happening when they're not there?

9 They don't live in people's homes and often

10 don't even live in the neighborhood. If neighbors,

11 teachers, clergy, friends, and family take ownership,

12 children are much safer.

13 Investing in family strengthening prevention

14 services such as family support centers makes an

15 impact. Providing tangible assistance and in-home

16 services to assist parents, as well as treatment for

17 addictive disorders and mental illness when needed,

18 enables children to live safely in their homes.

19 The vast majority of parents love their

20 children and don't want to harm them. Helping them

21 to help themselves often provides the most successful

22 outcomes.

23 In Allegheny County, we have been utilizing

24 family group decisionmaking very successfully for

25 about ten years. I'm pleased that the Court 58

1 Improvement Project and the Office of Children,

2 Youth, and Families have recognized family group

3 decisionmaking and are encouraging all counties to

4 adopt this practice as a way to reduce placements

5 while keeping children safe.

6 Removals are extremely traumatic and should

7 be avoided whenever possible. That said, we must

8 remember that child removals and returns can only be

9 done through the Court. There must be a strong legal

10 representation for all parties so the Judge can make

11 the best decision for the child and family.

12 It's great that we now have an Office of

13 Children and Families in the courts. Their court

14 improvement efforts have begun to make a huge

15 positive impact across the Commonwealth.

16 When children are placed, it's imperative

17 that we place them with their siblings. We must be

18 aggressive in our efforts to identify relatives to

19 care for children. Children are less traumatized and

20 have better outcomes when they are placed with people

21 they know and love.

22 The Family Finding Program that counties are

23 now instituting under the auspices of the Court and

24 supported by OCYF will greatly help these efforts.

25 Collectively, we must have a greater sense 59

1 of urgency to achieve permanency as quickly as

2 possible either through reunification, adoption, or

3 subsidized permanent legal custodianship.

4 When Justice Baer was the Administrative

5 Judge in Allegheny County's Family Court, we reduced

6 our hearing intervals from six months to three

7 months. This made a huge impact in reducing the

8 length of time in care for children.

9 Now many courts around the Commonwealth are

10 moving in this direction and placements are dropping

11 around the State. We also need to remember that

12 almost half of the children in placement are

13 adolescents. Their issues and service needs are very

14 different than the babies.

15 There is consensus across the country that

16 what we need to do is to improve child welfare

17 services. There's much effort focused on reducing

18 out-of-home placements while increasing safety,

19 permanency, and well-being.

20 Casey Family Programs, the largest

21 foundation in the country dedicated to child welfare

22 reforms, is leading this effort and helping our State

23 tremendously.

24 We're making some progress but a lot more

25 can be made if we reform the way we fund child 60

1 welfare services on a national and State level. We

2 can't impact on the Federal level in this forum, but

3 we certainly can improve our State financing.

4 That said, I'd like to offer some specific

5 recommendations to change the way we fund child

6 welfare services.

7 Pennsylvania has a relatively well-funded

8 child welfare system when compared to other States.

9 The problem is that our incentives are not aligned

10 with the permanency outcomes we strive to achieve.

11 Federal funding is heavily weighted toward

12 reimbursement for certain eligible children in

13 placement and the requirements keep getting more

14 restrictive. Federal funding for service to keep

15 children home is negligible.

16 All counties appreciate the efforts of DPW

17 and the Legislature to increase State funds the past

18 few years in order to replace the decreasing Federal

19 funds.

20 According to the recently released report by

21 Child Trends, from fiscal year '04-'06, Pennsylvania

22 State funding increased 33 percent while our Federal

23 funding decreased by 40 percent. However, the county

24 funding increased by 39 percent during this period.

25 This burden on the counties to increase 61

1 funds in order to match the requirements dictated by

2 Act 148 continues to grow. You all know that the

3 hardest place to raise revenue is at the local level.

4 County revenue is generated by property

5 taxes and there is no political will to raise them.

6 This means that many counties cannot draw down the

7 available State funds due to lack of match.

8 The elimination of the State transition

9 grant that was utilized to replace the loss of TANF

10 funds has exacerbated that situation since counties

11 had been able to use those funds as match. Counties

12 desperately need the State to designate other sources

13 of non-matching dollars for specific services.

14 Given the influx of the stimulus funds, it

15 would be advantageous and in everyone's best interest

16 to permit the utilization of the Title IV-E FMAP

17 increase to use towards the county match requirements

18 if possible.

19 My strongest recommendation is to revise the

20 arcane matching formula that was developed in the

21 early 1990s to align incentives to keep children

22 safely in their homes, achieving permanency, and

23 reducing the burden on the counties.

24 DPW's tentative needs-based allocations to

25 the counties which separate funding for 62

1 evidence-based and promising practices with reduced

2 county match requirements is very positive. It puts

3 our money where our mouths are.

4 In addition, DPW's proposal to amend the

5 needs-based plan and budget legislation of Act 148 is

6 a step in the right direction and I commend them for

7 taking the initiative.

8 We all know that any proposal that has

9 winners and losers is going to be controversial.

10 However, I believe that the proposal could be

11 instituted without a lot of dissension if no

12 reimbursement rates were reduced while the proposed

13 increased rates were instituted.

14 I would strengthen this proposal by making

15 the following two modifications. First, the State

16 reimbursement rates for adoption subsidy and

17 subsidized legal custodianship should be increased to

18 100 percent, which is the level that adoption-related

19 activities are reimbursed, instead of the proposed 85

20 percent.

21 It makes no sense to lower the reimbursement

22 rate as soon as a permanent placement is attained for

23 the child. This disparity serves as a disincentive

24 to permanency for counties because the reimbursement

25 diminishes. 63

1 Second, legal representation for children in

2 dependency and delinquency as well as parents needs

3 to be reimbursed at 80 percent instead of the current

4 50 percent. This is critical to maintaining strong

5 checks and balances in the system.

6 Media accounts strongly suggest that the

7 recent scandal in Luzerne County might not have

8 happened if those children had adequate

9 representation.

10 Given the financial realities, I am not

11 asking for an increase in State funds to replace the

12 reduction in county funds.

13 I believe that counties can manage and will

14 be able to reduce spending on high-end placements

15 with the changes outlined and my suggested

16 modifications.

17 Counties should be encouraged to maintain

18 their commitment but not be mandated to do so if they

19 don't have the funds.

20 Thank you for your attention. I look

21 forward to questions.

22 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you

23 very much to all of our panelists.

24 While we shift panels, I want to acknowledge

25 that we've been joined by Representative Reichley, 64

1 Representative Ellis, and Representative Parker.

2 Our next panel includes some service

3 providers. Dan Styborski, Director of Laurel Youth

4 Services from Blossburg; Andrea Boyles, Chief

5 Operating Officer, Centre County Youth Services

6 Bureau, State College; Nancy Sabol, Executive

7 Director of Gannondale in Erie; and Gwendolyn Bailey,

8 Youth Services, Inc., in Philadelphia.

9 And again, I'll remind our presenters, if

10 you see me doing this, that means two minutes, or

11 this, that means one minute. We're really right on

12 schedule. And I really want everyone, both members

13 and the stakeholders, to be able to have that joint

14 dialogue at the end. So we're going to move right

15 through.

16 And whoever wants to start first is welcome

17 to.

18 DIRECTOR STYBORSKI: My name is Dan

19 Styborski and I am the Program Director for Laurel

20 Youth Services, a private not-for-profit agency

21 located in beautiful Tioga County.

22 SUBCOMMITTEE CHAIRMAN MANDERINO: Dan, pull

23 the microphone a little closer to you and make sure

24 the green light is on.

25 DIRECTOR STYBORSKI: Okay. 65

1 Laurel Youth Services provides services to

2 children, youth, and families through residential

3 programming and a variety of community-based

4 programs, including specialized foster care, in-home

5 care, and evidenced-based program models of

6 functional family therapy and multi-dimensional

7 treatment foster care.

8 I have been working in the field of juvenile

9 justice since the late 1970s and can remember the

10 financial hardships of the '80s and the challenges

11 that DPW faced with the sudden influx of Cuban

12 refugees.

13 Both of these circumstances necessitated

14 quick planning and dramatic measures involving the

15 State, the counties, and the private providers. We

16 were able to meet those challenges then and somehow

17 we managed to survive. And I am hopeful that many of

18 us will also survive these challenging times.

19 I am aware that Pennsylvania's budgets have

20 been difficult for some time. I am not a budget

21 historian, but it seems that since the Ridge

22 Administration, and possibly before, there have been

23 large budget holes to fill each year.

24 In addition, the State has had challenges

25 from the Federal audits concerning the IV-E monies 66

1 and in not meeting the benchmarks of the Federal

2 child and family service review.

3 The IV-E audits have placed a great burden

4 on the Department of Public Welfare, potentially

5 requiring payback of millions of dollars. These past

6 practices created the need to restructure the process

7 of documentation and accountability to ensure the

8 Federal dollars are used for allowable activities.

9 Pennsylvania, along with most other States,

10 has not met the standards set by the Federal

11 Government for the child and family service review.

12 The failure to meet these benchmarks that the Federal

13 Government calls outcomes may result in millions of

14 additional dollars not flowing to the State.

15 These are all very real problems for the

16 State and the counties, problems that private

17 providers want to be part of solving. Unfortunately,

18 it feels, and I emphasize the word feels, that

19 private providers are often seen as part of the

20 problem and not part of the solution.

21 Just as we wish to partner with the State

22 and counties in finding solutions and remedies for

23 these problems, we also want the State to partner

24 with us in surviving these difficult times.

25 Since private providers supply 80 percent of 67

1 the direct care services to dependent and delinquent

2 youth in Pennsylvania, why are we not more directly

3 involved in the budgeting process?

4 We only appear in the State budget within

5 the total requests for the needs-based budgets of

6 each of the counties that purchase our services.

7 There is not a formalized process for us to be

8 included and often we do not know if the counties

9 request included dollars to increase per diems for

10 our services.

11 Act 148 of 1976/Act 30 of 1991, the two

12 major laws addressing funding for county child

13 welfare and juvenile justice, do not reference

14 private providers or purchased services in any direct

15 way.

16 We are requesting that amendments be made to

17 Act 30 to more directly connect the dollars with the

18 service delivery and reflect actual costs. This

19 involves redistribution of existing dollars, not

20 necessarily new dollars.

21 Private providers used to negotiate directly

22 with the counties for our services. If the cost was

23 too high or they believed the increases for services

24 were too much, they could choose to take their

25 business elsewhere and they often did. 68

1 For most providers, these were per diem or

2 fee-for-service rates, meaning that dollars were only

3 paid if a child was placed with that agency. These

4 were not program-funded contracts. The risk of the

5 program operation stayed with the provider.

6 The county controlled referrals and could

7 control their costs through number of placements. So

8 we were executing the contract in hopes that we would

9 be able to provide services but going into the next

10 year with no guarantees.

11 The rates were based on audited expenses

12 showing the cost reports from the previous year and

13 increases were negotiated with the counties.

14 This fiscal year, new fiscal reporting

15 formats were initiated by the State to comply with

16 Federal requirements for IV-E. In addition, OCYF

17 directed counties to limit any increases to providers

18 to the COLA approved in the State budget.

19 To my recollection, this is the first time

20 that rate increases were directly connected and

21 limited to the COLA. One county who had submitted a

22 5 percent increase for providers within their

23 needs-based budget informed us it was denied by the

24 State in their request.

25 This fiscal year, DPW did not include a COLA 69

1 in their budget request, in spite of the counties

2 receiving increases for their staff and their

3 programs. As a result, private providers advocated

4 and the Legislature included a 1 percent COLA. This

5 was done in consideration of the rising cost for

6 providers of 30 percent for health care, around 8

7 percent for food costs, and transportation costs at

8 that point were running around $4 a gallon.

9 Private providers across human services

10 worked hard to have the COLA included, yet most never

11 saw the benefit of their work. Many counties kept

12 the 1 percent since their allocations were reduced by

13 1.3 percent.

14 A few counties were willing to increase

15 rates. But since our organization deals with several

16 counties and we maintain the same costs for the same

17 services, we were unable to attain an increase for

18 our services.

19 While I understand the budgetary problems in

20 the State, this process has left our organization in

21 a tenuous position. We have 14 different cost

22 centers in Laurel Youth Services and we are losing

23 money in eight of the service areas with overall

24 losses of around $100,000.

25 While this is not a lot of money in the 70

1 world of bailouts, the difference between our

2 programs remaining viable has always been based

3 around a percentage point or two. The inability to

4 negotiate any increase places several of our programs

5 in peril.

6 In addition, the contracting process with

7 counties was extremely confusing and lengthy. With

8 the need for the State to establish new procedures

9 for the accounting of IV-E monies, a bulletin was

10 released that outlined the process, including

11 cost-reporting forms for the providers.

12 Training provided by OCYF for providers on

13 the completion of the new forms was inadequate and,

14 as with anything new, there were a lot of bugs that

15 developed along the way.

16 This confusion, unrealistic time frames, and

17 the lack of good training on the completion of forms

18 developed a contracting quagmire that is still being

19 unraveled.

20 Currently, we have 20 contracts completed.

21 We're still working on five others. It is difficult

22 to calculate the amount of time and energy expended

23 on these contracts and the completion of the forms,

24 since it has yet to end.

25 In addition, communication between the 71

1 State, counties, and providers was confusing since

2 the State was reviewing per diems more than $200;

3 counties were responsible to review the programs that

4 were under $200; and timing, clarity, roles, and

5 responsibilities were unclear.

6 What that meant for providers, who had above

7 and below $200 programs, was duplicative questions

8 from counties and the State office. Some counties

9 did not want to review providers' cost reports until

10 the State had completed the ones over $200.

11 With the delays in the contracting process,

12 most providers did not have contracts in place by

13 July 1 of '08 and many still do not today. This has

14 placed some providers at great risk.

15 The lack of contracts meant many counties

16 were unable to pay providers for services. Many

17 providers had to extend lines of credit to remain

18 solvent and operational while the contracts were

19 being completed.

20 I have heard of providers extending their

21 lines of credit into the millions of dollars to

22 remain operational. Interest dollars will never be

23 recovered because rates will not be increased to

24 include these hard costs.

25 Providers demonstrated commitment to their 72

1 mission and to the children of Pennsylvania by

2 continuing mandated services without disruption.

3 Despite the problems with this fiscal year's

4 contracting issues, DPW released a draft bulletin in

5 February. The bulletin was sent to counties several

6 weeks prior to us.

7 The bulletin was released February 17, 2009,

8 and comments were due on February 23rd. Stakeholder

9 forum meetings were held after that with the

10 extension moved from the 23rd to March 12th.

11 This proposed bulletin dramatically changes

12 the manner in which private providers interact with

13 the counties and the State by establishing new

14 requirements for reporting and calculating budgets.

15 The elements in this bulletin of 3 percent,

16 the 15 percent administrative overhead, and the

17 occupancy rates are not regulations governing

18 residential or foster family care services.

19 These particular elements need to be

20 addressed in a regulatory format and not a bulletin.

21 I also want to make note that this bulletin would be

22 effective on July 1, but the requirements apply to

23 providers prior to the implementation date.

24 I support many of DPW's and OCYF's

25 initiatives, including efforts to reduce the use of 73

1 restraint, the emphasis on including the family in

2 the daily treatment of youth, and the inclusion of

3 evidenced-based practices models.

4 These are all valid initiatives that support

5 better outcomes for children. However, there needs

6 to be recognition that these initiatives require

7 additional monies to implement. Most evidenced-based

8 model programs operate through OMHSAS and require

9 additional licenses.

10 The private provider community has changed

11 considerably during the last 30 years. We have moved

12 from orphanages, to juvenile justice programs, to

13 shelter programs for children, to mental health

14 treatment models, and more.

15 Through all these changes, we have worked in

16 partnership with the counties and the State to find

17 ways that work best for children.

18 As we develop these programs and cross

19 systems lines, there are additional costs that need

20 to be addressed. Where it once took one secretary to

21 do the billing, we now need several due to the

22 complexities and the contracting with several

23 agencies.

24 These additional expenses need to be

25 considered in our cost of care. It is important to 74

1 recognize that the field that exists today is much

2 different than yesterday, and if the providers are

3 really partners in this system, they need to be

4 considered in all decisions as they pertain to the

5 children they serve, including the dollars it takes

6 to serve them.

7 DIRECTOR BOYLES: Good morning. Thank you

8 so much for paying dedicated attention to the

9 provision of services to children and youth in the

10 Commonwealth. I will keep a close eye on you.

11 SUBCOMMITTEE CHAIRMAN MANDERINO: Could you

12 move the microphone a little closer to you?

13 DIRECTOR BOYLES: Yes.

14 I am Andrea Boyles. And I'm the Director of

15 Operations of the Centre County Youth Service Bureau.

16 I'll keep a close eye on you, Representative

17 Manderino, because I've done this dozens of times

18 before the mirror. And I have yet to land eight

19 minutes.

20 You two can elbow me.

21 SUBCOMMITTEE CHAIRMAN MANDERINO: I know

22 there's a lot to say, but there will be some dialogue

23 at the end of this.

24 DIRECTOR BOYLES: Yes. There's a lot to

25 say. 75

1 The YSB, Youth Service Bureau, is a private,

2 not-for-profit that has been in operation for a

3 little over 40 years. It began as an all-volunteer

4 organization led by one of our Judges, then President

5 Campbell, who was very concerned about delinquencies,

6 seeing kids come before the Court.

7 And so he brought folks together. And his

8 legacy is what the YSB is today. We're the parent of

9 12 distinct programs operating in Centre County,

10 Pennsylvania.

11 We have about 85 paid staff, over 300

12 trained volunteers, most of them in our Big

13 Brothers/Big Sisters Program. And we are very

14 diversified in what we do.

15 We have about a three and a half million

16 dollar budget. And on the last page of my testimony,

17 I did give you a statement of our financial position

18 as well as our funding plan for this year.

19 If you take a look at that, what you'll see

20 is that only just under 60 percent of the services we

21 provide are funded through OCYF Department of Public

22 Welfare. 40 percent, a little over 40 percent, comes

23 through other private sources, direct Federal grants,

24 those sorts of things.

25 So naturally, my heart beats a little faster 76

1 when I hear things like 3 percent retained revenue

2 per legal entity. My legal entity is much more than

3 Children and Youth dollars.

4 Quick example. We had a major gift from a

5 woman in State College this year to support Big

6 Brothers/Big Sisters.

7 We have an open PCCD grant. We don't need

8 that money this year, so we're carrying it forward so

9 that we don't have to stop those services when that

10 grant runs out.

11 So obviously, we're pleased that the

12 bulletin will look different but continue to be very

13 concerned about the issues that are out there.

14 For today's purpose, though, I will focus on

15 county dollars and more specifically the county group

16 home per diem dollars.

17 To give you some perspective, my agency has

18 24 beds available for placements, county placements,

19 boys group home, girls group home, and transitional

20 living program.

21 Typically, we have about 18 kids sleeping

22 with us at night. This year, when we did our budget,

23 we projected about $33,000 in private dollars needed

24 in those programs. At the end of the third quarter,

25 I'm projecting a $90,000 need in those programs. 77

1 And that comes because costs go up. We

2 certainly had hardships by the fuel cost this year as

3 well as health care, as you all know.

4 Our group homes serve young people who

5 really don't have other options. You will hear that

6 we want to do more in-home services and we want kids

7 in foster care. And that is absolutely true. All of

8 us in the private sector believe in that.

9 And certainly my agency invests considerable

10 dollars and considerable energy in becoming expert at

11 prevention services and in-home services. But there

12 are young people who need group homes, who need

13 residential services.

14 I'll give you a quick example with this

15 young woman's permission. We have a young woman in

16 our girls' group home right now who has been in 31

17 different placements.

18 She has slept in 31 different beds in her 17

19 years. She has stared at 31 ceilings wondering,

20 what's going to happen to me next? And she's

21 thriving in a group home. For her, it's the best

22 thing.

23 And she is bright. She is -- you know, you

24 can imagine living in 31 different settings with

25 hundreds of parent figures, she has a lot of needs. 78

1 She needs constant attention to be socially

2 appropriate to, you know, kind of get through her

3 days.

4 But she's thriving. She's holding a

5 part-time job. She's very involved in her church.

6 And I am confident that we will move her into a dorm,

7 which is what ought to happen. That's the ideal

8 situation.

9 So these are the kids we're talking about

10 who we're spending the big dollars on in residential

11 care.

12 As Dan described, the contracting process

13 with counties was terribly disruptive this year as a

14 direct result of the fiscal forms.

15 I absolutely welcome clarification about how

16 to calculate IV-E. But that needs to be done in a

17 more inclusive process. It needs to be done with

18 respect for our expertise as well as our time.

19 In a typical year, my agency will contract

20 with about 25 of the 67 counties. This year today I

21 have eight fully executed contracts. I'm serving

22 kids from almost as many counties as I always have

23 but I don't have contracts.

24 The young woman I referenced, I don't have a

25 contract with her county. They're paying me and 79

1 we're providing the services, but there's no contract

2 because of the chaos around the fiscal forms.

3 At this point, contracts are still coming

4 in. And given the plan to deal with the fiscal forms

5 this year, which the training for my region is on

6 April 3rd, forms are to be back by May 1st, I can

7 only anticipate it will far worse this year.

8 And obviously, we run small businesses. We

9 should not be doing these services without contracts

10 in place. We know that, but we are doing it. And

11 every sign says we'll be doing it again next year,

12 which is a grave concern to me.

13 Related to contracting, the flat group home

14 rates which have been referenced are creating

15 hardship for providers. In my agency, we've received

16 no increases for residential rates this past year

17 despite the Legislature calling for a COLA for

18 private providers.

19 As you all know, the cost of living went up

20 significantly. As I referenced, the gasoline prices

21 affected us considerably and health care. Health

22 care is huge for us.

23 When our costs go up and our revenues don't,

24 we have three choices at my agency. We can get more

25 kids in our beds, which goes against everything we're 80

1 trying to do.

2 We can move development dollars into

3 residential services, which takes away from the

4 prevention that is so important. Lisa in her

5 PowerPoint talked about that. Those are critical

6 dollars.

7 I raise money by fly fishing and skeet

8 shooting and those sorts of things. I don't want to

9 move those dollars into residential care because that

10 care is mandated and ought to be paid for fully

11 through the counties and through the Commonwealth.

12 And so what we're left with is cutting

13 costs. And what that means for us is health care.

14 Now, you all know I'm not getting better rates on

15 health care. I turn full-time people into part-time

16 people. That is the only way I can keep afloat. And

17 that's not good for kids.

18 I have wonderful part-time staff. But the

19 minute someone else offers them a full-time job,

20 they're gone. They're gone.

21 And so we are in a terrible position to try

22 to keep our service afloat and yet have the best

23 quality of care we can with the exact same dollars

24 year after year. It's impossible. It's impossible.

25 In my written testimony, I speak a great 81

1 deal about the bulletin. And I will not read that to

2 you because for the moment, that issue is on hiatus,

3 I suppose. I'm very grateful for that. I'm very

4 grateful that the bulletin will look different when

5 it comes out in final form. And I look forward to

6 the legislative discussion about the Act 30 issues

7 and the issues put forth in the draft bulletin.

8 In closing, it is my hope that you are able

9 to see the need for group home services and the

10 critically important role they play for a subset of

11 the youth we serve.

12 I hope that you see that it is in everyone's

13 best interest for the private providers and the

14 counties to work together with OCYF when changes need

15 to be made.

16 I hope you will take action to ensure that

17 Act 30 is opened, is discussed, and that we are

18 included in that process so meaningful productive

19 discussion can take place to ensure that every

20 critical dollar is flowing through the system in the

21 most effective, efficient way.

22 We realize, looking at Act 30, things may

23 happen that we don't like. We understand that, but

24 we look forward to the process.

25 I thank you for your time and attention. 82

1 SUBCOMMITTEE CHAIRMAN MANDERINO: Nine

2 minutes. Not bad.

3 DIRECTOR BOYLES: Not bad.

4 EXECUTIVE DIRECTOR SABOL: The pressure's

5 on.

6 My name is Nancy Sabol. I'm the Executive

7 Director of Gannondale in Erie, Pennsylvania.

8 Thank you for allowing me to share my

9 experiences with you. I'm high-end service.

10 Gannondale provides residential services,

11 including a secure, completely locked facility to

12 both juvenile justice and child welfare adolescent

13 females throughout the State.

14 Although located in Erie, many of our girls

15 come from Philadelphia and other urban areas. The

16 youth we serve are among the most difficult, often

17 displaying severe aggression, developmental delays,

18 and past failed placements.

19 They often have serious charges, mental

20 health issues, are low functioning, and have no

21 viable family resource. The trauma they have

22 experienced will not be healed in the home where the

23 very damage was done.

24 My frustration today is as much about

25 process as policy. Make no mistake, the problems we 83

1 are encountering have very little to do with the

2 current economic crisis.

3 Rather, they have been sparked by a

4 mentality established over the past several years

5 where providers were forced to respond to efforts to

6 change funding streams, look at alternative treatment

7 models, and adjust to increasing regulation.

8 We are repeatedly being asked by DPW and

9 others to hit a moving target. First, it was medical

10 assistance realignment, then a move to reduce or

11 eliminate restraints, and now the budgeting and

12 contracting process.

13 Each of these initiatives has led to

14 instability and uncertainty within our organizations.

15 The outlay of time, resources, and energy is

16 tremendous.

17 For an organization my size, where our

18 budget is around $3 million, these mandates have

19 stretched us to the breaking point. Good providers

20 simply don't have the resources to keep pace and no

21 consideration is given to that reality.

22 I'm not here today to ask for money. I'm

23 here to ask that we move forward in a way that honors

24 the children we serve and shows respect for the

25 people entrusted to do the work. 84

1 Last year the budget process was poorly

2 planned and defined. While providers were given

3 extremely tight deadlines, responses from DPW were

4 months in coming.

5 We are just now finalizing contracts for the

6 current fiscal year. Because of these delays and

7 multiple other sources of confusion, some counties

8 decided to withhold payment, their legal prerogative,

9 pending confirmation of contracts.

10 For me, that meant that as of the end of

11 November, several counties were in debt for services

12 rendered since July, one for almost half a million

13 dollars.

14 I used every resource at my disposal to

15 cover payroll and other costs. To date no one has

16 offered to compensate me for lost interest or

17 expenses incurred.

18 And then we have the staff. Staff in our

19 area begin with a salary of around 21 to 22,000

20 dollars a year. Last year we withheld the

21 discretionary payment to their pension plan in order

22 to recoup some losses. We are not overstaffed, as

23 some may believe, and, in fact, my administrative

24 team works in the units as needed.

25 Last week two of my staff were injured 85

1 intervening in a situation. My clinical director

2 with 15 years' experience was punched in the head by

3 a youngster who became enraged because she was asked

4 to clean up jelly she spilled on the carpet. Jelly.

5 We're fighting over jelly.

6 The youngster had to be discharged. Sadly,

7 after the fact, I reflected on how that was going to

8 impact my occupancy rate and my outcomes for success.

9 There are those who would deem this a failure.

10 I would add a little reality. This is the

11 work we do. These are the kids we see. This is the

12 type of damage that we're trying to repair.

13 Best practice and evidence-based programming

14 isn't about highly paid professionals sitting in

15 their offices writing treatment plans and coming up

16 with diagnoses. It's about the front-line staff who

17 deal with these children the other 23 hours out of

18 the day. Those people are at the core of what we do.

19 Trust me, you do not want the children I

20 serve living next door to you in the community until

21 we are relatively certain of their ability to behave

22 in a socially acceptable way.

23 For years, counties have neglected to pay

24 for the actual cost of service; and when that occurs,

25 the safety of staff, residents, and the community is 86

1 jeopardized.

2 I have told my staff and I will tell you, I

3 refuse to make critical decisions about the welfare

4 of children or staff based on a predetermined set of

5 percentages.

6 No additional help is forthcoming when we

7 agree to take the toughest kids, the ones no one

8 wants, for fear of destroying their numbers.

9 Our very existence is being threatened, and

10 I believe the loss of quality residential care is

11 imminent and one that will cost us dearly. Utilizing

12 the least restrictive environment is fine.

13 But to allow youngsters to deteriorate

14 within the community until they are completely out of

15 control is cruel to them, and it is unconscionable

16 that placements are asked to repair the damage as

17 though it can be a fix. These kids need to be

18 reparented. They need to find hope and they need to

19 realize their potential.

20 In my years as Director, every cent we have

21 made was returned to the program. As long as we have

22 existed, we have subsidized our work with private

23 dollars and balanced the budget on the backs of our

24 staff.

25 Imagine our frustration then when I say to 87

1 you that in 25 years of doing this work, I've never

2 been so demoralized as a professional. Never before

3 have we experienced a climate where we don't talk

4 about the children anymore.

5 I apologize for being passionate about this.

6 The ones who hold the power can break the ones who

7 don't.

8 Thank you.

9 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

10 EXECUTIVE DIRECTOR BAILEY: I am Gwendolyn

11 Bailey, Executive Director of Youth Service,

12 Incorporated. Thank you for convening this hearing

13 on the child welfare system in Pennsylvania.

14 In the 35 years that I have worked in child

15 welfare, I do not recall a time when it has been more

16 critical to ensure that the child welfare and

17 juvenile justice systems are supported and

18 strengthened.

19 As you have heard several times today, there

20 is a strong correlation between economic stress and

21 child abuse, neglect, and delinquency. During this

22 economic crisis, quality, responsive, appropriate,

23 and accessible services to protect and support

24 children and families must be available.

25 YSI, located in West Philadelphia, is a 88

1 private, non-profit agency that has been saving

2 Philadelphia's most vulnerable children, youth, and

3 families for over 50 years.

4 YSI offers a broad range of services

5 including emergency shelter care for runaway and

6 homeless teens, mother/baby group home care, foster

7 and kinship care, emergency foster care, family

8 preservation, etc., etc.

9 In 1990, YSI also pioneered a crisis nursery

10 program in Philadelphia. Currently, we operate two

11 crisis nurseries which provide 24-hour emergency care

12 for at-risk families with children up to the age of

13 five years. We also offer short-term respite care

14 for families with children ages 6 to 12 years old.

15 YSI is one of four agencies selected by the

16 Philadelphia Department of Human Services to deliver

17 a new prevention service, alternate response service,

18 aimed at diverting families from the formal child

19 welfare system.

20 I am also quite proud to report that YSI is

21 accredited by the Council on Accreditation. YSI

22 employed 140 Pennsylvanians and in the last fiscal

23 year, YSI served a total of 5,000 children, teens,

24 and families.

25 Our primary funding source is purchased 89

1 service agreements with the Philadelphia Department

2 of Human Services. DHS partners with private

3 providers, like YSI, to deliver the majority of both

4 mandated and non-mandated services.

5 In discussing my testimony with other

6 private providers delivering services in the

7 Southeast Region, they asked that I let you know that

8 YSI's experiences and concerns are shared by the

9 broader provider community.

10 A concern that I have heard repeated

11 throughout the provider community is that the

12 Governor's budget for FY '09-'10 has no funding

13 designated for a COLA for mandated purchased

14 services, even though $11 million has been restored

15 from cuts to the Office of Children, Youth, and

16 Families' FY '08-'09 budget and an additional $9

17 million has been requested.

18 Last year, the General Assembly passed a

19 budget that included a 1 percent COLA for services

20 purchased by counties. Even though it was your

21 intent that the COLA reach private providers, very

22 few counties included the 1 percent cost of living

23 adjustment in purchased service rates.

24 I want to thank Philadelphia Department of

25 Human Services Commissioner Anne Marie Ambrose for 90

1 including a 1 percent COLA for most purchased service

2 rates in fiscal year 2008-2009.

3 Commissioner Ambrose has convened a number

4 of meetings with private providers and we are

5 confident and happy that she has heard the

6 longstanding concerns that we have brought to her

7 attention.

8 The absence of a COLA in the proposed

9 Commonwealth budget this year means that most private

10 agencies will once again not receive dollars to

11 offset the significant increased cost of doing

12 business. Allegheny County has already projected

13 that for the third year in a row, rates will be flat.

14 As an example, our health benefits have gone

15 up 18 percent and utilities 22 percent in the past

16 three years. The COLA adjustments in the State

17 budget and county purchased service rates do not

18 begin to address the real increases in the cost of

19 doing business.

20 The absence of a process to realistically

21 and regularly adjust rates for purchased services

22 highlights a key concern about the public sectors'

23 funding for mandated services delivered by private

24 providers.

25 Although State regulation requires county 91

1 children and youth agencies to review rates on an

2 annual basis with necessary revisions and update

3 rates for purchased services, they are frequently not

4 adjusted for years to reflect changes in operational

5 costs, including the addition of new regulatory and

6 contractual requirements.

7 Unfunded mandates, including the

8 implementation of new Federal and State laws, Adam

9 Walsh, Act 160, Ages and Stages, and State Title IV-E

10 fiscal reporting requirements continue to

11 proliferate.

12 This fiscal year, the Office of Children,

13 Youth, and Families required that DHS switch its

14 prevention services funding mechanism from program to

15 fee-for-services reimbursement.

16 The transition process has been very

17 difficult for both DHS and providers and ultimately

18 resulted in delayed payments to providers who

19 continued to deliver these needed services.

20 Significant delays were experienced in

21 payments for contracted prevention services. These

22 delays came on the back of payment delays for

23 mandated services. In order to keep services

24 available, we were compelled to borrow against our

25 line of credit, which we eventually exhausted, while 92

1 waiting for payment. To date, we have incurred

2 $30,000 of interest payments which will be paid with

3 privately raised dollars.

4 As the gap between actual and reimbursed

5 rates widens, increasingly YSI has used private

6 dollars to compensate for the shortfall. In the last

7 fiscal year alone, YSI contributed in excess of

8 $100,000 in privately raised dollars to pay for

9 mandated services.

10 These private dollars historically have been

11 used to offer specialized enhanced services to our

12 children and families that were not available through

13 public funding.

14 YSI no longer can afford to supplement

15 delivery of mandated services. The value of our

16 small endowment has dwindled, as have private dollars

17 raised through contributions. Our experience is

18 replicated throughout the provider community.

19 While there are no simple solutions to the

20 issues that I have raised, I urge the members of the

21 General Assembly to amend Act 148 of 1976 and Act 30

22 of 1991, which established the needs-based plan and

23 budget process.

24 Amendments to require counties to show that

25 purchased service rates reflect the reasonable costs 93

1 based on actual expenses with annual per diem

2 increases reflecting increased costs of doing

3 business to comply with regulatory and statutory

4 mandates are sorely needed.

5 Adequate funding must reach the direct

6 service provider. This does not require new money

7 but rather serious efforts to redistribute dollars

8 already allocated in the system.

9 As you have heard from Commissioner Ambrose

10 and others, increasingly, the intent of Act 30 has

11 been eroded as funding allocations are not based on

12 assessed county needs. The legislative intent of Act

13 30 must be reinforced so that the county identified

14 and documented needs are met and to support service

15 delivery through purchase of service agreements with

16 private providers.

17 I want to share two real-life examples of

18 what we do and why we continue to do it even as we

19 confront fiscal challenges. James came to the crisis

20 nursery for emergency care for his newborn son when

21 his wife had a stroke following delivery.

22 The social worker at the Hospital of the

23 University of Pennsylvania called the nursery when

24 she realized that James did not have a relative to

25 care safely for his new son during his wife's 94

1 rehabilitation and that missing work meant missing

2 wages. His son remained at the nursery until James

3 could arrange safe care.

4 Laura spent three years in a different group

5 home and shelter placements. At age 31, Laura called

6 YSI -- actually, she called me -- to share how her

7 life was going.

8 She had purchased her own home, completed

9 her associates' degree, had a job with benefits, and

10 that her son, whom she lived with in our mother/baby

11 group home, was on the Honor Roll in high school.

12 She cried as she explained how important it

13 was that she had a place to live when her mother just

14 couldn't take care of her. She reminded me that

15 staff were willing to stay the course, although we

16 were not perfect, with her through very challenging

17 behaviors and situations.

18 In closing, my colleagues in the Southeast

19 reiterate the concerns you have heard from providers

20 across the Commonwealth regarding OCYF's effort to

21 use a bulletin to make substantive changes in

22 existing regulations.

23 We are pleased to hear that DPW has

24 reconsidered this process and look forward to

25 discussion and debate on changes in a legislative 95

1 venue.

2 Thank you for this opportunity.

3 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you

4 very much. And thank you, everyone, so far for

5 staying on schedule.

6 We are ready for our last group of

7 presenters and then hopefully we'll do our best shot

8 at giving members as well as the stakeholders a

9 chance for questions and roundtable discussion.

10 Jim, Judge Boylan, and Mr. Stanzione, would

11 you please come up?

12 We have Jim Anderson, Executive Director of

13 the Juvenile Court Judges Commission; Judge Rea B.

14 Boylan of the Court of Common Pleas in Bucks County;

15 and Bob Stanzione, Bucks County Juvenile Probation

16 Officer.

17 You guys can go in whichever order makes

18 sense to you.

19 EXECUTIVE DIRECTOR ANDERSON: Thank you very

20 much, Representative Manderino, Representative True,

21 and all of the members here this morning. I very

22 much appreciate the opportunity to appear before you

23 today to discuss the issue of funding both

24 delinquency and dependency services in our system.

25 As you've already heard this morning, the 96

1 same Federal and State funding streams are utilized

2 to fund services to both dependent and delinquent

3 children in our State. Yet, the legislative mandates

4 with respect to these two groups of children have

5 distinct differences that must be considered.

6 And while the responsibilities of the child

7 welfare system and the role of the Court in cases

8 involving a child who's been abused and neglected is

9 generally well understood, that is not necessarily

10 the case with respect to delinquent children.

11 Since 1995, our Juvenile Act has provided

12 that consistent with the protection of the public

13 interest, the purpose of our Juvenile Act is to

14 provide for children committing delinquent acts;

15 programs of supervision, care, and rehabilitation

16 which provide balanced attention to the protection of

17 the community; the imposition of accountability for

18 offenses committed; and the development of competency

19 to enable children to become responsible and

20 productive members of their communities.

21 In every case in which a child is found to

22 be a delinquent child, the Court is specifically

23 required to enter an order of disposition determined

24 to be consistent with the protection of the public

25 interest and best suited to that child's treatment, 97

1 supervision, rehabilitation, and welfare and which is

2 appropriate to the individual circumstances of that

3 child's case and provides balanced attention to the

4 protection of the community, the imposition of

5 accountability for offenses committed, and the

6 development of competencies to enable that child to

7 become a responsible and productive member of his or

8 her community.

9 With respect to the judicial role in the

10 area of dependent children, I think the most

11 important information that you need to know -- and

12 some of you I know are aware of this -- is the

13 exciting work that is being done by the Supreme

14 Courts' Office of Children and Families in the Court

15 led by Justice Max Baer and their administrator,

16 Sandi Moore.

17 And in a very short period of time, this

18 office, under their leadership and the partnership

19 with many Children and Youth agency administrators

20 and judges from throughout the State and many private

21 agencies as well, is making some really exciting

22 progress in dealing with issues involving dependent

23 children and their families.

24 In Pennsylvania, juvenile court judges have

25 multiple roles to play. The first, of course, is 98

1 presiding in delinquency and dependency proceedings

2 or both.

3 The second, for judges who function as

4 juvenile court administrative judges, may be to serve

5 in an administrative capacity with the Juvenile

6 Probation Department.

7 And a third is that judges are uniquely

8 positioned to assess the adequacy of services to

9 children and families who come within the

10 jurisdiction of the Court and to provide leadership

11 in advocating for our new or additional services when

12 this is needed.

13 In fact, the needs-based budgeting process

14 as it has evolved requires documentation of

15 participation by the Judiciary, including assurances

16 that the Court has had the opportunity to review,

17 comment, and/or participate to the level desired in

18 the development of the needs-based plan and budget

19 and that plan accurately reflects the needs of

20 children and youth served by the Juvenile Court.

21 And I have to tell you, that's been in those

22 requirements for some period of time. But over the

23 years, it has meant something to a lesser or greater

24 degree. And it didn't always matter what the Judges

25 said about the adequacy of that plan. But 99

1 nevertheless, it is there. It is a very important

2 aspect of that system.

3 As to the juvenile justice system, it is

4 important for you to know that Pennsylvania's

5 county-based juvenile justice system is highly

6 regarded as a national model for a variety of

7 important reasons.

8 These reasons include, first, the fact that

9 Judges have extensive authority to craft specific

10 dispositions in delinquency cases to address the

11 specific needs, the specific risks, and importantly

12 the specific strengths of every child who appears

13 before the Court.

14 Secondly, the funding structure of our

15 system has historically encouraged innovation and

16 community-based services.

17 And finally, that Pennsylvania's

18 private-sector service delivery system is regarded as

19 perhaps the strongest in the nation.

20 The Pennsylvania status as a national model

21 is very much in jeopardy if we don't commit ourselves

22 as a Commonwealth to ensuring that the funding and

23 regulatory structure of our system remains consistent

24 with the statutory mission of our systems, but

25 particularly our juvenile justice system. 100

1 For example, the needs-based bulletin in

2 recent years has required juvenile justice system

3 objectives relating to accountability, relating to

4 competency development, and relating to community

5 safety to be considered in the development of the

6 plan.

7 However, the relevant DPW regulations

8 dealing with planning and financial reimbursement

9 requirements for Children and Youth social service

10 programs have not been revised to so ensure that

11 these balanced-attention mandates of our Juvenile Act

12 are incorporated. And that makes a real difference

13 as the plans are developed and considered.

14 For example, the goals that are in these

15 regulations now are to protect children from abuse

16 and neglect, to increase the use of in-home services

17 for dependent and delinquent children, to use

18 community-based residential services whenever

19 possible when placement is necessary to reduce the

20 use of institutional placements for dependent and

21 delinquent children, and to reduce the duration of

22 out-of-home placements.

23 The specific requirements of the juvenile

24 justice system are not there in regulation. And we

25 look very much forward to working with the Department 101

1 of Public Welfare to address this issue in coming

2 years. It's been an issue we've talked about, but,

3 as you know, the regulatory process is a different

4 one. But this is critically important for us.

5 It is also important for you to understand

6 that over the last several years, as has been alluded

7 to by several of the speakers earlier, there's been a

8 major transition in Pennsylvania to utilize medical

9 assistance funding to pay for the treatment costs of

10 Court-involved children in residential settings.

11 This initiative, known generally as MA

12 realignment, requires a managed-care organization to

13 approve the placement of a child in a residential

14 treatment facility, or an RTF, which has led over

15 these last several years to a number of our

16 traditional residential programs to be converted to

17 residential treatment facilities so that they are

18 eligible to have the treatment services paid for with

19 medical assistance funding.

20 Now, what this has meant is that the

21 Commonwealth has saved a lot of money. The counties

22 have saved a lot of money because these medical

23 assistance funds have been able to replace the

24 combination of Federal Title IV-E funds under the

25 Social Security Act, the State Act 148 funds, and the 102

1 local funds that we're paying for treatment services.

2 And I think no one argues that the effective

3 use of these funds is very important for our system.

4 But it's important for all of us to remember that

5 these treatment services are being provided in the

6 context of a delinquency disposition and that that

7 disposition must deal with the community safety

8 issues and the accountability issues and most

9 importantly the competency development issues that

10 are required by our statute in Pennsylvania.

11 And unfortunately, this often has negative

12 implications as children wait in detention, in some

13 cases, while the managed-care organization is making

14 that determination as to what level of service the

15 child might be eligible for. So that does impact

16 what happens in the case-by-case basis. And this is

17 something certainly that Judge Boylan can address.

18 Before I turn the microphone over to Judge

19 Boylan, I do believe that I should address the issue

20 that was raised by Marc Cherna on the issue of the

21 use of the Act 148 funding stream, as we know it, for

22 the payment of counsel for delinquent and dependent

23 children.

24 I agree with Marc that the issue of counsel

25 was a major issue in the travesty that occurred in 103

1 Luzerne County. And, in fact, children waived

2 counsel in a majority of cases in that county.

3 In Pennsylvania, we do not have a good way

4 to pay for indigent defense services either in the

5 criminal justice system or in the juvenile justice

6 system. This is a major issue. But in the juvenile

7 system, a number of counties have used the Act 148

8 funding stream for the payment of these services.

9 And I think, looking forward, one thing that

10 needs to happen -- and I know that there are several

11 legislators looking at this and the Juvenile Court

12 Procedural Rules Committee, I'm certain, will be

13 considering it -- is that we should not allow

14 children in the delinquency system to waive counsel.

15 We have to ensure that we have a way to pay

16 for that. I would encourage your consideration of

17 these issues dealing with the provision of counsel as

18 has been suggested here. I look forward to these

19 ongoing discussions with Secretary Richman and her

20 staff in this regard.

21 And in a related issue, though, it's not a

22 DPW direct responsibility. One thing that's been

23 very important to the Juvenile Justice and

24 Delinquency, Prevention Committee of the Commission

25 on Crime and Delinquency on which I sit, is the need 104

1 for us to somehow develop a strategy to provide for

2 year-round education for children who are in

3 Court-committed placements.

4 We just have to do this. It's a difficult

5 issue, but we can't have kids coming into programs

6 with the deficits that they have and, depending on

7 when they land in that program, not being able to be

8 provided with the educational services that they

9 need.

10 And as I said, this is not a DPW direct

11 responsibility. It's something that we're going to

12 have to do in partnership certainly with the

13 Department of Education and the Governor's Office and

14 the Legislature.

15 But for this small group of children, this

16 is very important. So as we look to achieve this

17 mandate of our system in the juvenile justice system,

18 which really comes down to the word community

19 protection, victim restoration, youth redemption --

20 you heard the speaker passionately earlier talk about

21 that we don't spend enough time talking about the

22 kids.

23 That's really what this is all about. And

24 we, together, all of us, have to ensure that in each

25 and every case, we have a funding system, we have a 105

1 regulatory system in place that truly can allow the

2 courts, the agencies, that work with these children

3 to make that difference in the life of child because

4 that's why we're all here.

5 We look forward to ongoing dialogue with

6 Secretary Richman and her staff as we deal with these

7 issues.

8 Thank you very much.

9 JUDGE BOYLAN: I am most grateful for the

10 opportunity to speak today. I am Rea Boylan. I am

11 the Administrative Judge for juvenile court in Bucks

12 County as well as the criminal court system in Bucks

13 County. I'm in the unique position to be able to see

14 when our system succeeds on the juvenile side and

15 also those sad days when we have failed.

16 I apologize. I didn't know that I would be

17 able to be here, so I have no written remarks. My

18 colleagues -- we are short-handed, as some of you may

19 know, in Bucks County in terms of the number of

20 judges. But my colleagues thought enough of how

21 important it was for me to be here to help me out

22 today.

23 I would like to talk about and sort of build

24 on what Mr. Anderson talked about in terms of the

25 difference between the dependency side and the 106

1 delinquency side of our court system.

2 One of the things I'm grateful for every day

3 when I sit in delinquency court is that we have the

4 benefit of legislation that was enacted that is a

5 lodestar that is, a guide, for me every day in court.

6 It is legislation that I believe in. I believe in

7 the Juvenile Act. And it is something I look at and

8 go back to guide me as to what I do.

9 Forgive me for a moment. I would like to

10 read to you from it because you will see that the

11 purposes that we've been talking about today are very

12 different from the purposes of the delinquency side.

13 The purposes are to preserve unity of the

14 family whenever possible or to provide another

15 alternative permanent family when the unity of the

16 family cannot be maintained.

17 Provide for the care, protection, safety,

18 and wholesome mental and physical development of

19 children coming within the provisions of this chapter

20 and consistent with the protection of the public

21 interest to provide for children committing

22 delinquent acts; programs of supervision, care, and

23 rehabilitation which provide balanced attention to

24 the protection of the community; the imposition of

25 accountability for offenses committed; and the 107

1 development of competencies to enable children to

2 become responsible and productive members of the

3 community.

4 So you see when we talk about needs in

5 juvenile court, we are not just talking about the

6 needs of the child. While they are paramount, we are

7 talking about the needs of the victim, the needs of

8 the community. And therefore, when a child comes to

9 juvenile court, we use this to balance out whether or

10 not we place the child.

11 First of all, is the child in need of

12 supervision and treatment? And if they are, I am

13 blessed as a juvenile court judge in our State to

14 have a large realm of placements available to us that

15 can meet the unique needs of a child.

16 You only have to be a parent or someone who

17 has worked with a child or to have two children to

18 understand that children's needs are very different.

19 And when you make it more complex by the kinds of

20 traumas and experiences the children who come into

21 our court system have had, you recognize that there

22 is not one cookie-cutter placement that will meet

23 their needs.

24 It saddens me to think -- I'm a Judge who

25 goes out and visits facilities. I drop by 108

1 unannounced. There are people in this room who know

2 that. I will show up and ask to tour the facility

3 and see how our children are doing.

4 Is saddens me when I visit a program and am

5 excited to find out that an outward-bound-type

6 program has been developed for girls and we have a

7 need for programs for girls and it's closing and they

8 are unable to proceed with the program. We need to

9 have very different alternatives because of the

10 different needs of the children that come before our

11 bench.

12 Let me try to help a little bit for you to

13 understand the thoughts I have when a child comes

14 into the courtroom. You can't just focus on the

15 child's needs when you're talking about a child who's

16 committed a rape or a robbery or a burglary.

17 You need to concern yourself with how the

18 child is held accountable, how the child accepts

19 responsibility, what kind of decisionmaking is going

20 on here.

21 Does the child have a mental health

22 diagnosis that must be addressed? Does the child

23 need some aid in terms of criminal thinking and

24 decisionmaking? Is the child impulsive? Does the

25 child need to pay restitution? Should I impose 109

1 community service? Where is the child educationally?

2 And I would underscore what Mr. Anderson has

3 said in terms of education. One of my criticisms of

4 the facilities I have gone out to visit is that we

5 sometimes in facilities have children parked in front

6 of a computer and that's how they're getting

7 education.

8 It is our goal for them to go back into the

9 community. And they should be having meaningful

10 education at their level in these placements and it

11 should be year-round so they can make up the time

12 that they have lost.

13 Those are some examples of the things that

14 we're looking at when we're looking for placements.

15 And you can see that a judgment about medical

16 necessity is not consistent with the needs of the

17 victim with the protection of the community. And

18 therefore, juvenile court is very different from the

19 goals we have discussed so far.

20 It's unfortunate to me that the dialogue

21 that we're having now, even in an Appropriations

22 setting, is not what needs we should be trying to

23 meet in the future. Such things as, do we have

24 enough sanctuary model programs for girls who have

25 experienced trauma? Are we meeting the educational 110

1 needs of the children in our system? And how can we

2 prevent the fact that children who are going through

3 the medical assistance process are languishing for 90

4 days in detention centers waiting for a placement?

5 You talk about frustration. You bring those

6 kids into the courtroom and you say, I will do

7 everything I can for you. But they need to wait

8 until all those packets go out to all the facilities

9 as part of this process. Ninety days in the life of

10 a child is a very long time. It is a marking period.

11 It is the development of certain competencies and

12 goals that are missed sitting in a detention center.

13 I am pleased and honored to be in a room

14 full of people who are passionate about the needs of

15 our children. I ask all of you to remember that the

16 monies we allocate for these efforts are the

17 investment in the future of our society.

18 Thank you.

19 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

20 MR. STANZIONE: Good morning.

21 I appreciate the opportunity to be here.

22 And since both Mr. Anderson and Judge Boylan stole

23 all my lines, I will try to give my perspective from

24 being a chief probation officer and someone who's

25 been around for 30-plus years in the system and has 111

1 worked both on the treatment side, the residential

2 side, delinquent side, and has worked as a probation

3 officer, supervisor, chief.

4 When BARJ came out, the justice practice

5 really identified and set some very specific goals

6 for the juvenile system. Prior to that, what we had

7 were simply treatment and rehabilitation, which

8 caused a lot of public outcry over the fact that kids

9 would get some treatment and nobody would ever hold

10 the kid accountable.

11 By adding the third dimension of the victim

12 and community, what we were able to do is really keep

13 communities safe while still making sure the victims

14 were able to get their loss re-established. We were

15 able to try to develop competency in kids and were

16 fairly successful.

17 We have taken strides to try to develop

18 programming and best practice standards from the

19 juvenile justice side using these three goals. And

20 we have worked cooperatively with the Juvenile Court

21 Judges Commission and the Pennsylvania Council of

22 Chief Juvenile Probation Officers, of which I'm the

23 vice president.

24 Those strides that we've taken seem to be

25 undermined and undercut by a series of changes over 112

1 the last few years, both in funding and in

2 philosophy.

3 What you see here and heard here is the

4 child welfare system in Pennsylvania. What an

5 outsider would believe that to mean is a child who

6 has been neglected, abandoned, when you hear the term

7 child welfare and when they talk about foster kids

8 and foster placements and foster facilities.

9 Well, a neglected, abandoned child goes to a

10 foster home. And a lot of the changes that have been

11 talked about in addressing IV-E and so on are

12 reactions to the Adoption and Safe Families Act which

13 looked to establish permanency, safety, and

14 well-being of those neglected and abused kids who may

15 be languishing in foster placements to try to make a

16 decision on permanency. Either you're going to work

17 and put them back into the family or adopt them out

18 so that they don't lay in foster homes forever.

19 The delinquent side, the perspective on

20 that, we have very few of those cases. And it might

21 only be a carryover. The 85, 90 percent or more of

22 our cases don't have any similarities. We're dealing

23 with kids who are coming in who are committing crimes

24 in the community. The community wants a response.

25 They want to be protected from those acts of those 113

1 kids.

2 Our programming is geared to more than just

3 mental health treatment. The shift to the MA funding

4 while it helped reduce some State costs as well as

5 some county costs, it limits us to simply mental

6 health funding.

7 And having done direct service, you need

8 more. Delinquents may have a mental health issue,

9 some of them, but there's a lot of other behavioral

10 issues. And our experience with some of the RTF

11 processes, which is really taking some of the

12 authority away from Judges, now we have to rely on a

13 psychologist or a psychiatrist to say, okay. We have

14 medical necessity and managed care. Will you pay for

15 this? Okay.

16 The mental health system is a voluntary

17 system. A juvenile can say, no, I don't want to go

18 to that program. A parent can say for a kid under

19 14, I'm not going to sign off on this because I don't

20 want my kid to go to this program.

21 So then we're in a bind when we start

22 looking at community protection. We've had some

23 scenarios where we've had to rescind that order and

24 remove the kid and place him into another program.

25 So one of the RTF programs that were flipped 114

1 could no longer provide that service because now they

2 have a delinquent kid not in the same RTF treatment

3 process. So we've run into some of those problems.

4 We also are relying for the length of stay

5 on managed-care providers to reauthorize placement

6 after the 30, 90-, 60-, 120-day period is up. And

7 some of our kids need longer-term placement.

8 We've also run into the problems with RTFs

9 actually saying, well, we've worked with this child

10 for three, four months. This kid is not ready for

11 the voluntary treatment we offer. You need the

12 services of delinquent behavioral approach to get the

13 child under control before we can provide the

14 treatment.

15 The need for delinquent services exists.

16 And the varying programs that we have allows us to

17 tailor services in the community, as best we can, to

18 avoid placement. We've always taken that philosophy.

19 There are some counties -- and some of my

20 colleagues don't see it that way. The majority of

21 the more progressive counties take the philosophy

22 that it's best to work with a kid in his home.

23 That's fine. But when they're not cooperating with

24 the parents, they're not cooperating with the school,

25 and you have that risk in the community, we need to 115

1 work with local providers to structure various means

2 of control in the community and, in some cases,

3 secure control.

4 So what my concerns are coming up over the

5 next year or two is the fact that we've reduced some

6 judicial authority by limiting some of the money

7 that's available for delinquent services.

8 We're looking at a system geared towards the

9 primary goal of permanency, where our goals are

10 completely different or mostly different. And we

11 have potential changes in the needs-based budget

12 where the rate percentages are going to change which

13 will further reduce money for delinquents and

14 delinquent services.

15 And over the course of these last few years,

16 most of the Federal match money and the money that

17 has come out of OCYF budget to draw the other Federal

18 funding down came from the delinquent side in

19 reduction of delinquent programs.

20 So we're taking some pretty good hits. If

21 we are to meet our objectives of community

22 protection, we need to have a certain level of

23 programs and commitments and services available.

24 That's all I have. Thank you. Thank you

25 for the opportunity. 116

1 SUBCOMMITTEE CHAIRMAN MANDERINO: I thank

2 you very much. You may go back into the audience.

3 Here's hopefully how our question-and-answer

4 and roundtable is going to work.

5 First, I do want to acknowledge that we were

6 joined during the last panel by a number of other

7 Representatives. Representative Matt Baker,

8 Representative John Myers, and Representative Matt

9 Bradford all joined us during that time period.

10 As you'll note, there are three microphones

11 at the aisles. I'm going to ask members first if

12 they have any questions or comments. And you can

13 either direct them to a specific person who testified

14 and then that person can come to the closest

15 microphone or if you want to open it to one of the

16 panels and then the appropriate person can step up.

17 Then I'm going to ask -- hopefully, the

18 members won't use all the time. I'm going to ask the

19 stakeholders that testified if you have any brief

20 comments or counterpoints that you want to make about

21 other testimony that you heard.

22 And then I know a number of other folks came

23 who didn't have the chance to be presenters, if you

24 want to offer comments on any of the testimony that

25 you had heard. I hope we will have time to do all 117

1 three of those aspects adequately.

2 With that, let me turn first to my

3 counterpart, Representative True, and see if she has

4 any questions or comments.

5 SUBCOMMITTEE CO-CHAIRMAN TRUE: Thank you,

6 Representative Manderino.

7 One comment I have, certainly I am gratified

8 that all of you took your time from what you do,

9 which is so important that you could come and talk to

10 us today.

11 I really appreciate Representative Manderino

12 pulling this all together. This is an issue near and

13 dear to my heart. And, you know, I would be happy if

14 we could have a hearing once a month to talk about

15 this to try to get us to a place where we really need

16 to be, maybe not as large, but there's a lot of

17 issues to deal with.

18 And I want to say thank you particularly,

19 Ms. Sabol. You know, there are a lot of us that do

20 care. And we would never be able to do what most of

21 you do on a regular basis.

22 EXECUTIVE DIRECTOR SABOL: Thank you.

23 SUBCOMMITTEE CO-CHAIRMAN TRUE: It's so

24 helpful that you come and share with us. We each

25 represent about 60,000 people and we have many issues 118

1 to deal with. And it's important for the members to

2 be educated as well as the public.

3 One of my concerns over the many years is

4 how much we pay everybody. And I know this is the

5 wrong year to really get into that. But I really

6 wish that we'd come to a time where this is a main

7 priority that we could do a lot better with funding.

8 EXECUTIVE DIRECTOR SABOL: Right.

9 SUBCOMMITTEE CO-CHAIRMAN TRUE: And I'm not

10 the only one that thinks that way. That's an issue

11 of mine of trying to raise child welfare to another

12 level where we think it's as important as some of the

13 other issues that we talk about every day.

14 I just have one question. And aside from

15 the funding issues, we heard a lot about the problems

16 of working within the Department of the Children and

17 Youth Agency.

18 And, Secretary Richman, welcome back.

19 SECRETARY RICHMAN: Thank you.

20 SUBCOMMITTEE CO-CHAIRMAN TRUE: Secretary

21 Richman, you were not here to hear some of those

22 concerns. But you had outlined some changes in your

23 testimony. There were many, you know; and I don't

24 know how you deal with that. And I'm sure you'll

25 probably read the testimony. 119

1 Would you care to comment yourself? How do

2 we address some of these problems that some of the

3 folks are having, you know, getting to the point of

4 doing more, you know, in what they feel is a better

5 best interest of the child?

6 SECRETARY RICHMAN: Is this microphone on?

7 SUBCOMMITTEE CO-CHAIRMAN TRUE: You have to

8 touch it. There's a little button there underneath.

9 SECRETARY RICHMAN: Yes. Now it's on.

10 Let me make two comments. One, I believe

11 that at my level, I very much want to work in this

12 area. For many of you who probably don't know, my

13 very first job was as a child welfare worker, not

14 supervisor. BA coming out of college, my first job

15 for two years was actually on the street doing child

16 welfare.

17 So this is my background and the bulk of my

18 experience. I have to tell you of all of the

19 different areas that I work in -- and, as you know,

20 it's a fairly wide plate -- this particular area is

21 probably the one that concerns me the least in terms

22 of having me come to meetings, meet with them

23 individually, whether it's been the provider

24 organization, the county organization.

25 The only group that consistently meets with 120

1 me and calls me and now has quarterly meetings with

2 me is the Judges, whom we are accommodating. We meet

3 with them as frequently as they would like. But I

4 will tell you, most of the other groups haven't done

5 that.

6 Let me extend an invitation to you. I

7 happen to be the Secretary of Public Welfare.

8 Everybody reports to me. I enjoy meeting with

9 people. I meet with folks whenever they ask.

10 And I believe that part of what I heard is a

11 great deal of communication issues, a great deal of

12 process issues.

13 Do you want my phone number? Do you want my

14 e-mail address? Both are easily available. I think

15 that part of the reason that we changed from bulletin

16 to legislation is because people did reach out to me.

17 And when I hear feedback, I think I'm pretty

18 well known for listening and adapting to changes.

19 But I read minds really badly. So if you're thinking

20 you have a problem and you haven't communicated that

21 problem, it's really difficult to know you have a

22 problem.

23 So all I can assure you of is that if people

24 want to talk, if people want to meet, if people want

25 to communicate to work these issues out, we want to 121

1 do that.

2 Unfortunately, this is a bad budget year.

3 We do have a cadre of people that would like to see

4 the DPW budget reduced by 10 percent and be

5 zero-based. While I strongly disagree with that as a

6 goal, that doesn't mean that I don't have to listen

7 to that as an issue and a goal.

8 And it would be very nice to have the kind

9 of dollars in all of DPW, including child welfare, to

10 always give COLAs, to always give money that people

11 need to operate. But that's also not the real world

12 that we're functioning under in an economic crisis.

13 With all of that said, I believe there are

14 always compromises. There are always ways to get to

15 a better bottom line for children. But it's not

16 going to be easy right now.

17 SUBCOMMITTEE CO-CHAIRMAN TRUE: I appreciate

18 that, Madam Secretary. I'm going to close.

19 I just wanted to say, over my career here,

20 probably I've worked with the Department in a couple

21 of Administrations a lot.

22 And I have found even if you're not agreeing

23 with things, you will get your meeting, you will get

24 to go in, and actually you will get something done if

25 you're persistent. So I wanted to add that. 122

1 SECRETARY RICHMAN: Sure.

2 SUBCOMMITTEE CO-CHAIRMAN TRUE: And thank

3 you again. I want to thank you for your comments.

4 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

5 Representative Kula.

6 REPRESENTATIVE KULA: Thank you.

7 I guess having everyone here today and maybe

8 hearing different aspects, whether it's probation or

9 the Court or Children and Youth Services -- but my

10 dealings with youth before I came in as a

11 Representative was on the issue of truancy.

12 I don't know how much each of you deal with

13 that. I'm not sure. I can tell you as a former

14 District Judge, probably my most frustrating, trying

15 hearings were the problem of truancy because there

16 was nothing you could do.

17 I mean, hopefully, it reached Children and

18 Youth. Hopefully it reached the Court for a

19 dependencies hearing. But I can tell you, if

20 Children and Youth had to decide, we're going to work

21 on this child abuse matter or we're going to work on

22 this truancy matter, obviously, your choice was going

23 to be the abuse matter.

24 But it still -- and I think our last topic

25 everyone was dealing with was education, education 123

1 throughout the year for these children that are in

2 the programs. But I think what we're missing are the

3 children that are not in the programs, the children

4 that no one has reached yet.

5 And I'm watching -- I have actually had

6 parents come to me and say, I've been told the only

7 way we can do anything is if they commit a crime. I

8 mean, I have parents wishing their child would commit

9 a crime so someone could help them, someone could do

10 that.

11 When you're looking at more single parents,

12 more mothers raising children, and you see a 90-pound

13 mother and a 300-pound or 250-pound child and they're

14 saying, I can't make them go to school, I think we

15 need to look at a better way of dealing with these

16 problems. And hopefully we can all work together to

17 accomplish that.

18 Thank you.

19 REPRESENTATIVE KULA: Thank you.

20 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you,

21 Representative Kula.

22 Representative Briggs.

23 REPRESENTATIVE BRIGGS: Thank you,

24 Chairwoman.

25 I want to thank all the testifiers for 124

1 coming out today, not just for your testimony but

2 also for everything you do every day to help

3 children. I want to encourage you.

4 I want to thank Representative True for

5 asking the question regarding the communication. I

6 was going to ask a question of the Secretary also,

7 but I'm going to encourage all of you to reach out to

8 her and voice your concerns directly, especially

9 regarding the Office of Children and Youth. It seems

10 like there was a lot of friction between the

11 providers and that office.

12 Secretary Richman, I want to ask a question

13 about the COLA. My impression was that it was in the

14 Governor's initial budget last year. But during the

15 testimony today, it sounded like there was a

16 legislative addition to the budget.

17 Can you address that?

18 SECRETARY RICHMAN: No. It was not in the

19 budget -- the Governor's budget last year. You mean

20 '07-'08?

21 REPRESENTATIVE BRIGGS: Yes.

22 SECRETARY RICHMAN: No. But then the

23 legislative addition added the 1 percent.

24 REPRESENTATIVE BRIGGS: Okay. And also

25 during the -- 125

1 SECRETARY RICHMAN: But wait a minute.

2 REPRESENTATIVE BRIGGS: Sure.

3 SECRETARY RICHMAN: But then to be able to

4 compensate for the other cuts in the budget, there

5 was a 2 percent cut.

6 REPRESENTATIVE BRIGGS: Okay.

7 SECRETARY RICHMAN: So there was a net 1

8 percent cut to the budget.

9 REPRESENTATIVE BRIGGS: Would that be in

10 line with what some of the testimony was that the

11 Department of Children and Youth were encouraged not

12 to have passed along the COLA?

13 SECRETARY RICHMAN: No. We always want the

14 COLA passed on. Always. COLAs are meant for

15 providers and they should always -- in past years,

16 the Legislature has put in language that required it.

17 REPRESENTATIVE BRIGGS: Okay.

18 SECRETARY RICHMAN: In the last two years,

19 maybe three years, that language has not been there.

20 Without that language, we can't mandate it.

21 REPRESENTATIVE BRIGGS: I see.

22 SECRETARY RICHMAN: At that point, the

23 counties have the decision power to determine whether

24 they're going to pass it on or whether they're going

25 to use it. 126

1 But our position is, COLA belongs to the

2 providers.

3 REPRESENTATIVE BRIGGS: Thank you very much.

4 SECRETARY RICHMAN: With that said, that

5 means that counties go without. Remember, we are

6 squeezing these folks to death. Very rarely has the

7 DPW budget been large enough to suit the needs of

8 everybody who needs it.

9 REPRESENTATIVE BRIGGS: Right.

10 SECRETARY RICHMAN: We've gone --

11 traditionally, we've tried to get larger COLAs so

12 both people are satisfied. We've been in an

13 economic -- you don't want me to go on. You

14 understand.

15 REPRESENTATIVE BRIGGS: No. I understand.

16 SECRETARY RICHMAN: You understand the

17 economic climate we've been under.

18 REPRESENTATIVE BRIGGS: Thank you very much.

19 SECRETARY RICHMAN: Representative Manderino

20 was giving me that look.

21 SUBCOMMITTEE CHAIRMAN MANDERINO:

22 Representative Parker.

23 REPRESENTATIVE PARKER: Thank you,

24 Madam Chair.

25 And good morning to everyone. Let me also 127

1 start just by thanking each and every one of you for

2 being here this morning.

3 I want to first just talk about the

4 providers who we heard from, your testimony, because

5 you are on the front line. I feel about you the way

6 I feel about teachers who are actually in classrooms

7 teaching students who are doing more than just

8 teaching, but being social workers and parents and so

9 many other things. So I really thank you so very

10 much.

11 But what I really thought while you were

12 testifying is, wow. I wish that testimony from the

13 providers could have been heard during the

14 Appropriations Committee hearings when the Department

15 of Public Welfare was testifying.

16 And it was recommended that there be a 10

17 percent cut to their budget across the board. And

18 you wonder, why can't you cut waste and spending and

19 why can't you stop having this budget increased?

20 Because of the amount of recipients receiving cash

21 from the Department.

22 And particularly those of you who are from

23 Erie and from Allegheny, the non-Philadelphians, for

24 you to talk individually and very specifically about

25 the cases of the young people that you are working 128

1 with, I think that's what matters to legislators.

2 So aside from being providers, I hope you,

3 too, find an opportunity to become advocates and talk

4 to legislators who represent your respective regions.

5 My question is for James Anderson and Judge

6 Boylan and Bob. You know, when I listen to your

7 testimony, each of you talked about challenges facing

8 the young people when they reach our system.

9 And one of the constant complaints that we

10 receive from agencies like the Pennsylvania Prison

11 Society are the results of recent studies on

12 incarceration, that incarceration is cyclical. And

13 many of the young people who are actually coming in

14 contact with our juvenile justice system have parents

15 or were actually cared for by a relative or primary

16 caregiver who is incarcerated.

17 I wanted to know from those who are county

18 representatives and if any of you have any comments.

19 Number 1, do we actually collect that data here in

20 Pennsylvania to know when a child enters into our DHS

21 system in any of the counties? Do we know if a child

22 has a parent or primary caretaker who has actually

23 been incarcerated?

24 And the reason why I ask is, we've

25 introduced a resolution. There's something moving in 129

1 the House, something moving here and over in the

2 Senate.

3 But we don't seem to be able to justify the

4 need for resources as a prevention measure and a

5 fiscally responsible measure to address the needs of

6 this very unique group on the front end so they don't

7 end up in the system when you're talking about how we

8 address their needs on the back end.

9 So particularly for the county reps, do any

10 of you have any comments or any recommendations for

11 us?

12 SUBCOMMITTEE CHAIRMAN MANDERINO: Step up to

13 the microphone there, Marc.

14 Anybody who wants to comment, step up to the

15 microphone and say your name again for the benefit of

16 the court stenographer.

17 DIRECTOR CHERNA: I'm Marc Cherna. I'm

18 Director of the Allegheny County Department of Human

19 Services.

20 And that is a very big issue. We do keep

21 track. We have a large correlation of children in

22 our system, our Children and Youth system, whose

23 parents are incarcerated.

24 We've had a foundation do a lot of studying

25 on that and actually gave us a grant for a staff 130

1 person to be a liaison around that. The problem is,

2 there's no categorical dollars to provide those

3 services.

4 REPRESENTATIVE PARKER: Right.

5 DIRECTOR CHERNA: It's a bigger issue around

6 county jails because it's all 100 percent county and

7 re-entry and programs for the incarcerated folks in

8 the county jails. But there's no money to provide

9 any services there. It's just when they get out,

10 they're going to commit another crime and then they

11 do State time. Then we have money for re-entry and

12 all of that.

13 But any kind of things that can be done on

14 the county level before they really get there makes a

15 huge difference. And dealing with the children of

16 incarcerated parents makes it even bigger.

17 REPRESENTATIVE PARKER: If I'm a child and I

18 am home and the cops come to my house to arrest my

19 mother or father who cares for me, does the State

20 have some sort of rubric or process in place that law

21 enforcement officers follow? What happens to that

22 child?

23 I know in Philadelphia the police normally

24 contact a DHS. But is there like a statewide sort of

25 process in order? 131

1 DIRECTOR CHERNA: To my knowledge, there is

2 not. And, in fact, in Allegheny County, we just

3 established a protocol where we have a safe place for

4 the police to take children who are not involved in

5 the Children and Youth system.

6 REPRESENTATIVE PARKER: Okay.

7 DIRECTOR CHERNA: So they don't have to call

8 intake to get the child involved because the child

9 didn't do anything. So if they're doing an arrest

10 and the child is there, we have a process worked out

11 now with the police. And everybody is trained about

12 how to do it.

13 REPRESENTATIVE PARKER: Can you forward that

14 information to Chairwoman Manderino?

15 DIRECTOR CHERNA: Absolutely.

16 REPRESENTATIVE PARKER: Thank you.

17 SECRETARY RICHMAN: There's also a major

18 initiative in Philadelphia run by an agency called

19 Children's Treatment Team. And it is trauma. If

20 children are not treated for that trauma in a very

21 short period of time, it actually bodes very poorly

22 for them.

23 But the interaction of that behavior doesn't

24 show up until they are in latency age. So children

25 between three and eight primarily that are 132

1 traumatized in any way, you don't see the result of

2 that until you see it in their adolescence. So

3 there's a big delay.

4 But the research on this through the Yale

5 Study Center really mandates that we be much more

6 responsive because there's severe mental health

7 damage done to the child when they witness those

8 kinds of things.

9 I think there are different initiatives to

10 be able to sensitize police that when you're handling

11 a parent in front of a child to try to be a little

12 bit more tactful. But that's very difficult because

13 sometimes those situations are very dangerous at the

14 same time. So they're forced to make a judgment

15 between the child who is witnessing and the parent

16 who's threatening.

17 And I'm not quite sure we have answers on

18 both sides. And we do need the dialogue in those

19 cases.

20 SUBCOMMITTEE CHAIRMAN MANDERINO: Bob, did

21 you have something? Judge, did you have something to

22 say?

23 JUDGE BOYLAN: Yes.

24 SUBCOMMITTEE CHAIRMAN MANDERINO: Just

25 remind the court stenographer again. 133

1 JUDGE BOYLAN: Of who I am?

2 SUBCOMMITTEE CHAIRMAN MANDERINO: Yes.

3 Judge Boylan.

4 JUDGE BOYLAN: I'm Judge Boylan.

5 It's interesting that you mentioned that. I

6 think two weeks ago I had a young girl who was a

7 selective mute, based on, everyone concluded, the

8 trauma that occurred during an arrest. And it was a

9 very, very, very sad case.

10 One of the things, though, I would like to

11 mention is that I think one of the things we really

12 need to focus on is identifying the strengths and

13 interests of juveniles in the system. We're really

14 starting to work on this in Bucks County.

15 One of the things that I think needs to

16 happen for that child who is in a family where maybe

17 parents have been arrested and gone to prison and

18 maybe neighbors are in prison is to develop

19 opportunities for them to interact with other kids in

20 the community, develop the social skills based on the

21 interests and strengths they have.

22 You know, I always tell a kid when they come

23 back from placement, when you come back from

24 placement, the first person who is going to ask you

25 to sit down is not going to be the president of the 134

1 National Honor Society.

2 So we really need to work proactively, I

3 think, to put money and effort into the issue of

4 having kids develop their strengths and interests so

5 that they can develop positive connections.

6 REPRESENTATIVE PARKER: Madam Chair, I know

7 we're pushed for time.

8 If you can't answer the question now and if

9 you could submit some sort of response in writing,

10 I'd greatly appreciate it.

11 Not long ago I had a Rep from the National

12 Association of Social Workers visit my office. They

13 are actually working now on establishing a bachelor's

14 level licensure for human service professionals.

15 It's going to be coming before the Professional

16 Licensure Committee during a hearing, I believe, on

17 April the 17th.

18 I'm just interested in knowing what the

19 providers, along with our county officials, have to

20 say about that. Because for myself, I was very much

21 concerned with some of the disparities in

22 standardized testing, their results, what they truly

23 measure, thinking about those people who actually

24 dominate that field and who they are and how this

25 would impact them. 135

1 You don't have to respond now. But if you

2 have any comments on this, I would really like to

3 receive them before the hearing so I can just make

4 reference to them.

5 SUBCOMMITTEE CHAIRMAN MANDERINO: And when

6 we do that time where we invite folks to step up, if

7 someone has comments on that, please feel free to.

8 Representative Baker has a question.

9 REPRESENTATIVE BAKER: Thank you very much,

10 Kathy and Katie, for your leadership on this issue.

11 I'm Representative Matt Baker, Republican

12 Chairman of the Health and Human Services Committee.

13 And I want to applaud Estelle Richman for

14 addressing some of the concerns, especially as it

15 applies to the Office of Children and Youth and the

16 bulletin issues.

17 I've heard from too many providers regarding

18 some of those problems. And Estelle has really

19 stepped up and been very responsive to that. So I

20 want to thank her for that personally and also

21 hopefully be able to capitalize on her comment

22 earlier about communicating and working perhaps a

23 little bit closer, more closely, with the people that

24 are the direct care agencies.

25 What I'm sensing, Madam Secretary, is that 136

1 there's not enough communication or there's a

2 disconnect or there's not the more-needed free flow

3 of information between those entities at the local

4 level and at the State level.

5 I will personally attest that anytime we've

6 had a major problem in Tioga County or Bradford

7 County and we've asked Estelle to come up and meet,

8 she has done that. I appreciate her strong work

9 ethic.

10 But when I start getting a number of

11 e-mails, I know there's usually a problem because I

12 rarely hear from the Office of Children and Youth

13 Services. And when you hear from the county

14 agencies, the providers all over the State, then we

15 know there's a problem.

16 And I just want to say, first of all, thank

17 you. And secondly, thank you also for your

18 willingness to work more closely. And if you have

19 any suggestions as to how we can improve this

20 dialogue and communication level with those folks, I

21 would like to hear it.

22 SECRETARY RICHMAN: Let me just reiterate

23 that I'm very willing to do that. And I'm also

24 willing to do it regionally. As the Representative

25 said, I've been out to his region several times to 137

1 hold meetings with different sets of providers on

2 different topics. And I'm certainly willing to do

3 that again.

4 REPRESENTATIVE BAKER: Thank you.

5 SUBCOMMITTEE CHAIRMAN MANDERINO: At this

6 point, those folks who presented and want to comment

7 on something else that they heard from one of the

8 other presenters, I would -- I don't think we'll have

9 long lines -- like you to start stepping up to the

10 microphones now and then we'll just kind of move down

11 the room.

12 But while folks are coming forward, here is

13 my question or comment. And this is for everyone for

14 when we get to the open dialogue or for those who

15 presented.

16 One of the reasons that I asked Lisa Fleming

17 to give us that PowerPoint presentation in the

18 beginning is because I don't think we realize, as we

19 sit in whatever group of stakeholders that we sit in,

20 kind of the big picture.

21 And if I can put the child welfare budget

22 for dummies into a very succinct picture in terms of

23 the money, this is what I see are real challenges.

24 Secretary Richman talked about the fact how

25 -- and Representative Parker mentioned it -- there 138

1 are many folks in the General Assembly who believe

2 that our welfare budget is too big. And you are part

3 of the welfare budget.

4 Now, there is some real reality in that in

5 terms of the numbers. And also when you are looking

6 at a whole statewide budget that is growing by

7 whatever percent it is growing by -- and some people

8 are in favor of a no-growth budget -- I have to tell

9 you the one slide we didn't show you but is

10 consistent year after year after year is -- and DPW's

11 budget always exceeds that growth number.

12 So legislators looking at the big picture

13 look at the State budget and many say, it's growing

14 too fast. Then they look at DPW's budget and they

15 say, it's growing even faster. And then we look at

16 the child welfare budget and we say, oh, my gosh,

17 it's growing even the fastest.

18 Now, that's where you guys say what

19 disconnect? We're getting squeezed. But if you

20 remember the testimony and the slides, losses of

21 Federal dollars in different categorical areas have

22 been backfilled with State dollars.

23 So we have grown State dollars in the area

24 of child welfare even though in the total pool of

25 dollars that you're seeing, you're not seeing big 139

1 increases. And you're saying we never can get to

2 some of these things we all have said really matters,

3 the non-mandated services, the prevention issues.

4 We heard the counties. We heard DPW say

5 what they said. We heard the counties say, I gave

6 this needs-based budget to DPW and, boy, they just

7 slashed and burned it. They ignored it. They didn't

8 do what we said we needed, that the act requires them

9 to do. And then we heard from providers who said,

10 you know what? We are paying for State-mandated

11 services out of our fundraising dollars. The State's

12 not even giving us enough money to do mandated

13 services let alone preventive.

14 That's my budgeting for dummies. I mean, we

15 are all getting squeezed. So here's the question

16 that nobody is asking, although folks hinted around

17 the edges when a few people said, we're spending more

18 time on paperwork or we have more mandated services

19 that we're not being given monies to.

20 At what point do we have to say, can we

21 afford everything we're mandating? Or the

22 alternative way to say it is, are there things that

23 we are currently mandating which are within the

24 State's control that are costing us more than is

25 benefiting the child? And when do we revisit those 140

1 issues?

2 That is probably not the discussion for this

3 July's budget. But that's when I talked about

4 wanting to have a discussion that goes forward.

5 That's the discussion that I would like to continue

6 going forward because I have just come to the

7 conclusion that we can't afford to pay for everything

8 that we're saying we're going to pay for. And we

9 need a reality check in terms of what's helping kids

10 and what's not helping kids.

11 So that's my kind of input. I'm looking for

12 short term and long term. Think about that as we

13 respond. I think now we're to the point where we

14 want to respond to points others heard.

15 Ann Marie, go ahead.

16 COMMISSIONER AMBROSE: Ann Marie Ambrose

17 from Philadelphia Department of Human Services.

18 I just wanted to talk a second about the

19 legal representation issue. I'm a former public

20 defender. I represented kids for 13 years in

21 delinquency court.

22 I certainly think that my interventions were

23 helpful in preventing something like what happened in

24 Luzerne County from happening in Philadelphia.

25 Unfortunately, our budget that we received 141

1 took out $7 million of longstanding legal

2 representation costs for delinquent youths in

3 Philadelphia. And I think that that's a real

4 disservice to kids and to protections.

5 I wanted to say that community legal

6 services is here at the hearing. And we asked for

7 increased funding for community legal services for

8 parent representation.

9 We have been mentoring a lot with Marc

10 Cherna in Allegheny County and really trying to

11 replicate some of the best practices.

12 I understand why that was cut. We're going

13 to try to find the money elsewhere in the budget

14 because Philadelphia does understand that we are

15 heavily funded and we have to make some tough

16 choices.

17 But I think that for other counties, the

18 representation issue is huge. It's a protection for

19 children. It's a protection for parents. It really

20 provides a level playing field for everybody in the

21 system so there's real social justice and fairness.

22 I also just wanted to say that I appreciate

23 the providers being here today. These are hard times

24 for all of us. And they are partners in this work

25 that we do every day. 142

1 The issue that I think really resonated here

2 is that we don't mind taking cuts. We just want a

3 process and some transparency and a partnership with

4 the Department of Public Welfare.

5 I talk to Estelle frequently and often. And

6 she has always been incredibly receptive. And I'm

7 sure that we're going to be able to make some

8 progress based on the hearing today.

9 Thank you.

10 SUBCOMMITTEE CHAIRMAN MANDERINO: Great.

11 Andrea. Am I remembering correctly?

12 DIRECTOR BOYLES: Andrea Boyles, Centre

13 County Youth Service Bureau.

14 My comment is about the question period.

15 SUBCOMMITTEE CHAIRMAN MANDERINO: Go ahead.

16 DIRECTOR BOYLES: First, your question,

17 Representative Manderino, I do believe is at the

18 heart of the matter and we need more opportunity to

19 discuss that.

20 I also believe that by looking at how the

21 money flows and efficiency issues, we can do better

22 with the dollars we have.

23 SUBCOMMITTEE CHAIRMAN MANDERINO: Andrea,

24 just make sure the green light is on. There's a

25 little button there. 143

1 DIRECTOR BOYLES: Secretary Richman, I

2 appreciate very much your offering to meet with us

3 and interface with us on a regular basis. I will say

4 that we have had near constant contact with Deputy

5 Secretary Gold. And certainly we believe that that

6 was the appropriate avenue for us to take.

7 SECRETARY RICHMAN: I will tell you most

8 other -- every other office comes to me, too.

9 DIRECTOR BOYLES: Okay. And that's great.

10 We'll be happy to do that. Frankly, in my agency,

11 no, that's not how it works. I was working through

12 the chain of command. But we're happy to do that.

13 I believe it was Representative Kula who

14 talked about truancy. And I just wanted to comment

15 on that as well.

16 We are -- and I can speak for Centre County

17 but also many other counties -- looking at ways to

18 work with those kids. In Centre, we use family group

19 decisionmaking. And we're actually working with

20 young people before they ever get to the Children and

21 Youth Office when truancy is an issue and having

22 really great results with that.

23 But again, this is one of those areas where

24 we can't afford to keep cutting into the private

25 dollars. Because if we are squeezing, you know, my 144

1 fly-fishing money to pay for group homes, there isn't

2 money for those -- you know, family group is funded

3 by the county, but other programs that are helping

4 those kids before they hit the system are funded

5 through private dollars.

6 And if we keep dipping into those, we're

7 going to lose those. Community drop-in centers, Big

8 Brothers/Big Sisters, those types of programs, we

9 can't keep bleeding that private dollar.

10 With regard to the COLA, again, Secretary

11 Richman, I was happy to hear you say you are

12 encouraging the COLA. I have to say that is not the

13 message we received this past year.

14 Deputy Secretary Gold was very clear that

15 there would be no increase to private providers, very

16 clear that there would be no COLA, and, in fact,

17 stated that the State would not reimburse counties

18 who gave us a COLA. So that is a very, very

19 different message than we've been given to date.

20 And just finally, just to briefly comment on

21 your question of licensure for human service workers,

22 sadly, when you said that, the first thing I thought

23 was, oh, what will that cost? What will that cost?

24 But my second thought is, that's wonderful.

25 And through our Federal grants, we have been able to 145

1 access accreditation for youth workers, residential

2 youth workers.

3 And that's been a wonderful experience in

4 all of our programs. The county-funded programs as

5 well as our Federally funded programs have benefited

6 because we now do have trainers on staff who can,

7 over a couple of years, certify youth workers. And

8 we're very happy with that system.

9 Thank you.

10 SUBCOMMITTEE CHAIRMAN MANDERINO: Madam

11 Secretary.

12 SECRETARY RICHMAN: You know, I often get

13 requests from legislators on what can they do to

14 help. One of the problems on the legal fees is that

15 Act 148 specifically says it cannot be used for legal

16 fees.

17 If we could change that, that would make a

18 difference, because then Act 148 dollars could be

19 used. But it very specifically says we cannot use it

20 for legal coverage and that the only thing that

21 counties can do is pay for guardians ad litem at a 50

22 percent match rate and pay for some mental health

23 issues with some of those dollars.

24 But they can't pay for legal representation.

25 That's a problem. 146

1 SECRETARY RICHMAN: Let me also address the

2 licensure issue. I happen to be a psychologist, not

3 a social worker. Would that mean that at a BA -- and

4 I had a BA in psychology or a master's in psychology,

5 that I couldn't work within the field?

6 So I think we have to be very careful around

7 what we mean by licensure if it's presented by one

8 categorical group. Because certainly professionals

9 with master's or bachelor's degrees can have the same

10 training and be certainly capable of working within

11 the area of Children and Youth.

12 And some of our degrees may be master's

13 and some may be in education and some may be in

14 psychology.

15 SUBCOMMITTEE CHAIRMAN MANDERINO: Secretary

16 Richman, while you're up and mentioning legislation,

17 during your testimony, you talked about how, in

18 response to some of the feedback you've got, you've

19 pulled back from some of what the Department was

20 thinking of doing by way of bulletin and going the

21 legislative route.

22 SECRETARY RICHMAN: Correct.

23 SUBCOMMITTEE CHAIRMAN MANDERINO: Number 1,

24 have we seen that legislation yet? I assume we would

25 have to do that for this year's budget. 147

1 SECRETARY RICHMAN: Yes.

2 SUBCOMMITTEE CHAIRMAN MANDERINO: Number 2,

3 are there still issues that you are hoping to move

4 through by way of bulletin that folks are going to

5 still say, no, that shouldn't be done by bulletin, it

6 should be done by legislation?

7 And then Point 3, is the legislation to Act

8 148, and we can just put this legal stuff in there,

9 or are we talking about two different chapters of a

10 code that we have to look at?

11 SECRETARY RICHMAN: Jennifer, what's the

12 status of the legislation?

13 JENNIFER: Delivering it today to

14 leadership.

15 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

16 SECRETARY RICHMAN: So the legislation, I

17 would imagine there's always debate on what's in a

18 bulletin and where it should be.

19 The bulletin now, I think I itemized it.

20 Most of it is around information that we still need.

21 And the bulletin -- let me look at it.

22 The bulletin now is going to talk about

23 primarily the budget format completion, uniform cost

24 documentation, and training.

25 Now, those are the primary, I think, issues 148

1 left in the bulletin. My invitation continues to be,

2 if people have issues about that, let me know.

3 SUBCOMMITTEE CHAIRMAN MANDERINO: Marc.

4 DIRECTOR CHERNA: Marc Cherna.

5 SUBCOMMITTEE CHAIRMAN MANDERINO: Make sure

6 the green button is on there, Marc. Right on the

7 stem there's a little white button that will turn

8 green.

9 DIRECTOR CHERNA: Okay.

10 SUBCOMMITTEE CHAIRMAN MANDERINO: Just leave

11 it on. That way when people come to the microphone,

12 it will be fine.

13 DIRECTOR CHERNA: Sure.

14 I just wanted to briefly respond to your

15 question about, what can we do to save money and to

16 use our money more efficiently?

17 SUBCOMMITTEE CHAIRMAN MANDERINO: Sure.

18 DIRECTOR CHERNA: And one thing is getting

19 rid of some of the silos, moving more to the

20 integrated children services, which Secretary Richman

21 put in place. And we always have trouble getting

22 funding through a --

23 SUBCOMMITTEE CHAIRMAN MANDERINO: What are

24 the silos? I mean, I know what that term means. But

25 what are the silos in child welfare? 149

1 DIRECTOR CHERNA: Drug and alcohol

2 treatment. You have a family and the family has a

3 disease of addiction and needs drug and alcohol

4 treatment. The child welfare in most systems -- I

5 run both of them so I don't have this issue and it

6 pays off.

7 But most of the time they have to negotiate

8 with their counterpart who says, we have waiting

9 lists, it's not a priority for us, so you end up

10 placing the child because you can't get the

11 treatment.

12 SUBCOMMITTEE CHAIRMAN MANDERINO: Is that a

13 State silo or a county silo?

14 DIRECTOR CHERNA: It's a State silo.

15 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

16 DIRECTOR CHERNA: It starts with a State

17 silo and then the counties continue it because the

18 money goes down that way.

19 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

20 DIRECTOR CHERNA: I can change that because

21 I have a department where I have that control. It

22 makes a huge difference.

23 Housing assistance, so families don't get

24 placed because of inadequate housing, I can use

25 housing assistance money. Other folks can't do that 150

1 kind of thing.

2 Mental health services. You know, you can

3 use these kinds of supports to maintain families in

4 their own homes by putting that thing together.

5 The other thing is if we look at reducing

6 placements and especially reducing high-end

7 placements. I appreciate all the things that the

8 providers said. And while they provide a critical

9 role for us, there's always going to be some children

10 who need placement and they need to get quality

11 placement.

12 We have to have a sense of urgency from day

13 one. It's not acceptable for kids to sit in care for

14 years. We need to have frequent hearings and we

15 really need to push the issue and reduce the length

16 of stay.

17 You know, at 150 or 160 dollars a day, that

18 money adds up real quick. And you can do things a

19 lot more efficiently if you can reduce those

20 placements. Control the front door more and then

21 moving kids quicker to permanency makes a huge

22 impact.

23 SUBCOMMITTEE CHAIRMAN MANDERINO: There were

24 a lot of people who wanted to testify that I just

25 didn't give them the opportunity. And so if you have 151

1 been sitting and listening very carefully and have

2 comments or questions, please make your way to the

3 microphone.

4 In addition, since I have a zillion

5 questions, let me throw two other ones out there. I

6 don't remember at what point who said this. But two

7 things were said that I didn't quite understand.

8 One of the them dealt with the providers.

9 And one of the providers made a comment about how

10 you're still waiting for something from DPW to be

11 approved.

12 But I thought you contracted with the

13 counties. So why are you involved with DPW at all

14 for approval of contracts? That was kind of one of

15 my questions.

16 And then my second question -- somebody help

17 me understand a little bit more. I think this was

18 the Judge's point. I understood the point she was

19 making. I want to understand from the county and/or

20 the DPW thing about this sitting and waiting up to 90

21 days in detention.

22 Are we waiting for medical assistance

23 certifications? Are we now classifying kids with

24 mental health problems that may or may not -- I mean,

25 can we get a little bit more clarity on this? 152

1 And then some future thought about -- I

2 mean, I understand the money that's driving it. And

3 I don't want to necessarily make it a more costly

4 proposition somewhere else.

5 But it seems to me that if we have people

6 sitting 90 days in detention, the amount of money

7 that that's costing us would better serve someone who

8 didn't have a mental health diagnosis of getting them

9 straight into some other treatment.

10 Those are some other thoughts.

11 DIRECTOR WATSON: Hi. Terry Watson.

12 A couple of comments. One would be on

13 efficiency, cost savings. I think -- and this is

14 something that I've said for years. And people who

15 have been around me a lot probably got sick of me

16 saying it.

17 But I think that there should be a task

18 force that's set by the House or the Senate or both

19 or the Governor or all three and give a strict time

20 frame to come up with an economy of how we run our

21 system.

22 We're just way too parsed. There's too many

23 specific regulations and things that sometimes are

24 redundant and sometimes counteract each other.

25 So I think that there's a lot better way 153

1 that we could do these things and use our resources,

2 both staffwise and otherwise.

3 I would also make a comment about the

4 licensure. We're actually having our State Children

5 and Youth administrator's meeting. The Board of

6 Directors will talk about this bill and what we see

7 in the counties that would make it even harder for us

8 to get staff.

9 Really what we need to do is -- frankly,

10 people who have lots of licensure things behind their

11 names will probably get mad. But it doesn't really

12 matter in many ways sometimes the degree of the

13 person coming into the system. It's how you train

14 them and how you supervise them that makes them a

15 good worker.

16 The child welfare system has a great

17 training program. There's lots of basic training

18 that all workers have to have and then additional

19 training yearly after that, plus supervision.

20 That's what's going to make somebody

21 effective in the child welfare system.

22 Thank you.

23 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

24 EXECUTIVE DIRECTOR SABOL: Nancy Sabol from

25 Gannondale. 154

1 In answer to your question about the DPW

2 issue, providers who had per-diem rates over $200,

3 which I have for my secure facility, were asked to

4 submit that budget to DPW in order for them to

5 determine an appropriate State and Federal

6 reimbursable rate.

7 There was a lot of confusion with counties

8 because counties weren't sure what they were waiting

9 for. Were they waiting for DPW to approve that rate?

10 Could they go ahead and contract? And so many

11 counties got caught in that process and providers got

12 caught as well.

13 When we brought that issue to the Deputy

14 Secretary, the response was, we can't control what

15 the counties do. We've encouraged them to pay you to

16 do the contracts, whatever. When we brought up a

17 concern that we were not receiving our own

18 reimbursement rates in time, in a timely manner,

19 dealing with the counties, we were told that we would

20 get it as soon as we got it. They were very busy.

21 And I understand that.

22 But, again, it impacted our payments. So

23 that was the process.

24 My own situation took four and a half months

25 to get a rate back from DPW. They denied my rate. 155

1 They wanted more clarification. The forms were very

2 confusing. We sent it back. I finally got my rate

3 in January. So that's my response to that.

4 A couple other things. In terms of

5 efficiency, I would say to you that this is a

6 complicated system, but it's not that complicated.

7 It's not that complicated.

8 We're duplicating services. We're

9 duplicating documentation. We're writing policy for

10 the outliers instead of dealing with the norm. And I

11 will tell you that on one day, I literally had more

12 inspectors, contract monitors, and compliance

13 officers in my administration building than I had

14 support staff.

15 I mean, we've just taken this to a whole new

16 level. And I really don't understand it. But I

17 certainly appreciate the Secretary making herself

18 available to us. Perhaps that's the process we need

19 to use.

20 The last point I would make is about the

21 items that are going to be listed now for legislative

22 review. Remember, my budget is 3 million, a retained

23 revenue cap of 3 percent; 3 percent is not a lot.

24 And if the State isn't interested in

25 covering our costs when we run a deficit, I wish they 156

1 would at least allow us to manage what small earnings

2 we make.

3 Thank you.

4 SUBCOMMITTEE CHAIRMAN MANDERINO: Marc.

5 DIRECTOR CHERNA: To answer from the county

6 perspective, we are responsible for contracts and we

7 did contract. Our contracts were in place before

8 July 1.

9 But I think in fairness to the agencies and

10 I think some of the other counties, there was so much

11 confusion with these rates, we figured that if it got

12 worked out later, we would negotiate with the State.

13 We were not about to be dealing with 100

14 percent county funds for a rate that's figured out to

15 be over. And it all worked out. But I think a lot

16 of other folks were hesitant to move forward on that.

17 I mean, there were a lot of things that came

18 down over the last couple of years and the process

19 could have been better.

20 And I think Secretary Richman saying that

21 there will be a better process I think is good for

22 everybody to hear that and to move forward that way.

23 The other piece on the kid's languishing in

24 detention centers, sometimes it does take a while

25 before you get a psychiatrist to see the child. But 157

1 you shouldn't be waiting on that. You shouldn't be

2 waiting on making a placement until all of that

3 happens.

4 You need to make the appropriate placement.

5 And if a child becomes medically eligible, Medicaid

6 eligible, and is eligible for that, you could then

7 start to bill at that point.

8 SUBCOMMITTEE CHAIRMAN MANDERINO: So if

9 that's not happening, is that because the procedure

10 the county has in place isn't working efficiently?

11 DIRECTOR CHERNA: A lot of times there is

12 not adequate psychiatrists to see kids quickly to

13 make those decisions.

14 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

15 DIRECTOR CHERNA: But it really shouldn't be

16 driven. I mean, this is part of it, where folks get

17 so caught up with the money driving the service. The

18 service should be providing what's best for the child

19 and then you figure out who pays for that and what's

20 eligible.

21 So a lot of the counties, the Medicaid

22 eligibility didn't work out really because you

23 couldn't put a square peg in a round hole. Some kids

24 it did and that was good. And I understood the

25 intent. 158

1 I think the intent was great to try to get

2 us Federal dollars to make up some of the State and

3 county dollars. But the end result is it didn't make

4 that much of a difference in terms of dollars for

5 everybody.

6 But you should never be waiting in a

7 placement because you're waiting on eligibility. If

8 a child needs to go somewhere, they should go

9 somewhere.

10 SECRETARY RICHMAN: I think what you're

11 hearing a little bit is Pennsylvania has 67 counties.

12 And what the Feds crashed down on me on was that we

13 run 67 systems, not one.

14 And with that -- and it's the primary reason

15 that the MR system is now converting to more of a

16 State-run system because there was no way to get the

17 continuity. And in that case, we had a billion

18 dollars in play.

19 In this one, we have about $330 million in

20 play, which is still a lot of money. But they don't

21 want to see systems that where you live determines

22 the services, how long you wait, and what you get.

23 To use Federal dollars and to maintain

24 Federal dollars -- and believe me, I have been

25 dealing with the previous Administration on ACF for 159

1 about four years and have tried to delay an audit

2 fine that could have extended up to a billion

3 dollars.

4 I think I have put in place a system that

5 will keep that from happening, although we don't have

6 a sign that it won't happen. But I think we're close

7 in many of the changes.

8 And one of them was all rates over $250 per

9 day had to be given a range and had to be approved by

10 us and the Feds.

11 It was chaotic this year. It was our first

12 year really through this level. We've tried to be

13 able to do it. I was very appreciative of systems

14 like Marc who could take that initiative and make

15 sure their providers weren't penalized. But there

16 were very many counties for whom this was really as

17 chaotic as it sounded.

18 I think we've learned a lot. I think we're

19 going to hopefully put in place the kinds of things

20 that won't happen again.

21 My understanding is the rates are now up on

22 the web. They're there. We can follow through. And

23 my guess is we aren't working at the same level of

24 trial and error as we did this first time.

25 We are trying to move to a Federal 160

1 compliance system. We have not been Federally

2 compliant since the audit that happened in 1998

3 through 2003.

4 So we have a long history of doing things

5 the wrong way. And it's not going to fix itself

6 overnight without a whole lot of pain, unfortunately.

7 I would like to make that as painless as possible,

8 but I also don't want to come back to the Legislature

9 and say, by the way, I just got fined a half a

10 billion dollars.

11 SUBCOMMITTEE CHAIRMAN MANDERINO: We don't

12 want you to do that either.

13 EXECUTIVE DIRECTOR LAUGHMAN: Jim Laughman,

14 Lancaster County.

15 Three points, if I may make. The first one

16 is that in Lancaster County, we decided -- despite

17 the fiasco with the budgeting for the providers, we

18 continued under the premise of the language we had in

19 our contract that would allow us to continue to pay

20 at the rate we had the previous year and that we

21 would make the providers whole depending on what the

22 results were of the contracts from the Commonwealth.

23 So we continue to pay them regardless of not having

24 things established.

25 The 90-day detention, you really do get into 161

1 a lot of cross-system issues. It may be a lack of a

2 psychiatrist or psychologist to be able to do it.

3 But at the same time, you also have to allow

4 providers the opportunity to see the youth and make

5 sure it's the right fit for their facility.

6 And I'm sure the last thing the providers

7 want would be to be told one thing -- because that

8 happens sometimes. You see something on paper or you

9 hear someone on the phone and when you go out, it's,

10 like, wow, we have a totally different picture.

11 So we don't want to set the youth up for a

12 failure. We don't want to set the providers up for

13 failure. And so that sometimes takes time.

14 But also what happens, too, is that there is

15 a rule that within 60 days that if that evaluation

16 runs out, you have to get a new evaluation again.

17 And that's in the mental health side. We look at

18 some of those changes.

19 And also, too, I appreciate it when

20 Secretary Richman said this in the Senate

21 Appropriations hearings. You know, there was a lot

22 of discussion about $20 million was cut from

23 hospitals in the budget in DPW. But hardly anybody

24 mentioned that there's a $35 million budget cut to

25 mental health services. 162

1 We know if there's a cut in mental health

2 services, guess what? It's going to come back and

3 it's going to hurt the kids that are going to be

4 getting services through Children, Youth, and Family

5 Services.

6 Making sure that we have the ability so that

7 the managed care companies that often the counties

8 are responsible for being in charge of, taking a look

9 at the MA dollars that are spent, allowing them to

10 have appropriate retained revenue to make sure in

11 these emergency circumstances so a kid doesn't have

12 to languish there, make sure the counties have the

13 money, managed care companies have the money to take

14 the risk because everybody ultimately wants to know,

15 who's going to get paid? Who's going to pay this?

16 The commissioners and counties don't want to

17 know that's going to come out of the General Fund.

18 Providers are not going to be sitting there saying,

19 well, we hope we're going to get paid. We'll take

20 you on good faith.

21 And certainly with limited funding, we

22 certainly need to be able to make sure that everybody

23 has a fair chance.

24 And again, we don't want to set a kid up and

25 all of a sudden say, well, guess what? There's no 163

1 place to go. Nobody wants to take you because we're

2 not sure of funding. So it really is a cross-system

3 issue that comes with that.

4 And the last thing is -- I think you

5 probably have heard this, Representative, ad nauseam

6 -- about a license for a bachelor's level. I'm a

7 master's level social worker so I will say I think

8 that while it is noble, I am not sure it really

9 accomplishes what maybe people are hoping that it

10 does.

11 Again, I believe -- I worked in the child

12 welfare system for ten years. And what takes place

13 and what's effective is good training, caring

14 supervision, and the ability to have people have

15 experience before having a caseload of 100 kids and

16 not know what they're doing and being green.

17 Representative True is very clear. We need

18 to up the ante. And then people who enter into the

19 system, we pay them adequately and make sure that

20 training is important, not a label or a license but

21 actually having true training is necessary.

22 Thank you.

23 SUBCOMMITTEE CHAIRMAN MANDERINO: I have a

24 zillion questions. And I don't mean to belabor this.

25 This will be my last one. 164

1 I see nobody else standing at the

2 microphones. If you intended to, please do that now.

3 Marc and Ann Marie, you're sitting in front

4 of me and it was actually both of your testimonies

5 that made this confusion in my mind, so I'll direct

6 them to you, although if any of the other county

7 administrators want to chime in as well, they may.

8 I'm not quite sure that I was hearing

9 divergent opinions. Maybe I'm missing nuance. But

10 let me just articulate it the best way I can.

11 It goes to the needs-based budget and then

12 the DPW's interpretation of the needs-based budget in

13 this year's budget.

14 And, Ann Marie, from you I very much heard,

15 you know, we put together our needs-based budget.

16 Here is what it was. And, you know, what we're being

17 told has been appropriated or is being suggested is

18 being appropriated is tens of millions of dollars

19 less than what we need.

20 What I heard from Marc is that he very much

21 thinks that the system is well funded, that our

22 incentives aren't aligned right. My understanding of

23 what DPW did or was doing in their proposal was

24 trying to kind of set goals for the alignment and

25 kind of maybe -- you know, I hear this tension. 165

1 I hear this tension between trying to force

2 kind of best practices and use the money most

3 effectively versus recognizing the counties' ability

4 to control what they think is best within their

5 system. That's probably more the tension I'm

6 hearing.

7 But I'd like each of you to address those in

8 the context of the money that's in this year's budget

9 that the Legislature will or will not be

10 appropriating towards the child welfare system.

11 EXECUTIVE DIRECTOR ANDERSON: Okay. Let me

12 take a stab and then Marc will correct me.

13 I think one of the issues here is, I don't

14 know what is in Marc's budget and I don't think he

15 knows what's in mine.

16 I also need to say that Marc and I are in

17 two completely different places. Marc is a model, a

18 national model, for child welfare. He's stabilized

19 his system. He has significantly reduced placement.

20 He is what I want Philadelphia to be as soon as we

21 can get there. And so I'm using a lot of the work

22 that Marc has done to replicate in Philadelphia.

23 My placements aren't where they need to be.

24 I'm also bigger than Marc is. And I also have a lot

25 of complicated social problems that are unique to 166

1 Philadelphia. I'm not saying they're worse than

2 Allegheny County. I'm saying they're very unique in

3 Philadelphia.

4 I'm not asking for new money. And we

5 submitted our budget August 15th. That was prior to

6 this global crisis economically. And so we're well

7 aware of the fact that we need to make some

8 adjustments and, in fact, are preparing to do that.

9 The problem that Philadelphia has is that

10 the cuts that were made to our budget were made in,

11 we think, irresponsible ways without consultation

12 with the county.

13 So, you know, having a conversation about

14 where the cuts should be is the first step. I think

15 we know we have to take some cuts. All we're asking

16 for is a transparent process and a dialogue between

17 the State and the county about where those cuts

18 should be.

19 SUBCOMMITTEE CHAIRMAN MANDERINO: Okay.

20 DIRECTOR CHERNA: And I don't think Annie

21 and I disagree at all. I mean, we are in somewhat

22 different places. And absolutely I think there needs

23 to be that kind of dialogue around this.

24 What I said was, we are a relatively

25 well-funded State compared to others. It doesn't 167

1 mean we have all the things. But still, you know, I

2 think we can manage within our means.

3 Frankly, I don't get too caught up with the

4 needs-based process because I think in a lot of ways,

5 it's a farce. You know, maybe I shouldn't say that

6 publicly. But at the end of the day, there's limited

7 dollars and you're going to allot a limited amount of

8 money. So we can say, we need billions, and you're

9 going to say, you've got millions, and we have to

10 live within that.

11 So we have this whole pretense of we're

12 supposed to tell you what we need and DPW is supposed

13 to certify what we need, but they certify what they

14 have basically and say, well, that's all you need

15 because they don't have any more and then you make

16 your own decision, so we don't necessarily get what

17 they certify.

18 So that's why we need to do this

19 differently. Let's stop playing this game and go

20 through this whole thing and look at it rationally

21 and change with the times.

22 I think we absolutely have to change

23 incentives, so we deal with, you know, what is best

24 practice, because things have changed since 1991.

25 And, you know, it's a very different environment and 168

1 we need to deal with it.

2 So when I go and ask the State for money on

3 my needs base, which is much higher than I end up

4 with, I don't get too caught up with, you know, they

5 didn't give me what I asked for because I know the

6 reality is I'm going to basically get what I had last

7 year, maybe a little bit more.

8 The revenue mix is what's the biggest

9 problem for me because I can't get county match

10 enough to do this. We have all the demands. Every

11 county is the same. And the city certainly has the

12 same issues. You can't get that money to draw down

13 the rest of the dollars.

14 So that to me is the crux of it. And I

15 think if we stop the game of, you know, going through

16 this and say, okay, now, how do we do this right? I

17 think we'd be a lot better off.

18 SUBCOMMITTEE CHAIRMAN MANDERINO: Bob.

19 MR. STANZIONE: Maybe we can get the county

20 commissioners to give you a call and resolve that

21 problem. Tell them not to worry. But that's not the

22 same across the State. I guarantee you that.

23 And that kind of an attitude, which is a

24 great thing, is not what county commissioners want to

25 hear. You know, they're talking about zero, zero, 169

1 zero. And we don't want to hear about cuts. We

2 don't want to hear about it when services get cut.

3 But one of the ways that I think you could

4 help counties that involve MA and RTFs and that whole

5 process is that when that occurred, a lot of counties

6 were not aware of how -- when I'm talking counties,

7 let me be specific. Probation departments.

8 Probation departments were not aware of how

9 to access the money. The money came to the counties,

10 but the County Mental Health or County Human Services

11 looked at additional money. And it did not go

12 specifically to juvenile courts or to the Juvenile

13 Probation Department to access.

14 And one of the problems with managed-care

15 organizations is that they're looking to manage, not

16 to care, and limit the length of stays in these

17 programs.

18 Now, if they know that there's a pooled

19 amount of money that was consistent with the level of

20 service we had before, they're fine with that. And

21 we've not run into kicking a kid out before he's

22 ready or once the insurance runs out.

23 But if it gets diverted into the county

24 needs for other services, other mental health

25 services, regular kids off the street unrelated to 170

1 the delinquent side or the C&Y side, then everybody

2 is competing for it.

3 So I think what you could do is to help us

4 be able to say, well, this is strictly juvenile

5 justice money or C&Y money if it comes into the

6 county budget, because the counties control the

7 contracts with the managed-care providers.

8 So if there was some attachment to that

9 funding stream, if it's going into the county and

10 going through the county, County Behavioral Health

11 has to establish and set aside for C&Y and JPO and

12 you'd eliminate some of that backlog and resistance

13 by providers, managed-care providers, who provide the

14 service.

15 SUBCOMMITTEE CHAIRMAN MANDERINO:

16 Interesting. Okay.

17 Yes. Please identify yourself for the

18 record.

19 MR. ADAMSON: My name is Craig Adamson. I'm

20 from Community Service Foundation. I'm in Eastern

21 Pennsylvania. I'll make this quick. I think a lot

22 of people have lunch on their mind.

23 As a private provider, we provide services

24 that are community-based. There was some discussion

25 between residential and community-based. And even 171

1 being a community-based provider under $200 as far as

2 the IV-E rates and things like that, I didn't receive

3 contracts until February.

4 And that was because the counties were told

5 that they weren't allowed to contract until the IV-E

6 rates were set in foster care. So there are some

7 IV-E rates, but I wasn't part of that group.

8 But counties were still told not to contract

9 with us until that was done. So as far as a business

10 model, as we sit here today, my line of credit is

11 $525,000 because I haven't been able to get funds

12 from counties.

13 SUBCOMMITTEE CHAIRMAN MANDERINO: Wow.

14 MR. ADAMSON: I've reached out to some

15 people in this room to be able to get those funds.

16 It's budget time. We just created our budget for

17 next year. The CPI is 3.8 percent.

18 And I'm creating my budget to send to the

19 county for a 4 percent increase, 3.8 percent

20 increase. My guess is that's not going to be passed.

21 So I'm looking at cutting staff today. I'm looking

22 to close down programs.

23 And I think it's not just these economic

24 times. If you look at the CPI over the last ten

25 years in foster care, I'm behind 10 percent. I've 172

1 been getting zero percent increases for the last six

2 years. This just isn't in the last year.

3 I don't think it's just this short vision of

4 just this budget time. It's the bigger picture. And

5 I'd like to be a part of that larger picture.

6 I think when I've talked with counties, what

7 I've asked for is that if I can get the cost per

8 child, I can grow and I can shrink depending on the

9 need of the counties.

10 And, you know, Bob and Judge Boylan were

11 here today to talk about those specific needs. And

12 I'm in Bucks County as well. And I deal with

13 delinquent and dependent children.

14 And I can create programming around that. I

15 can create -- we do have evidence-based programs. We

16 can do all those things based on their needs. But if

17 I'm losing money on every child that I receive, I'm

18 not staying in business.

19 This past year CSF lost $422,000. I was

20 able to supplement that with private dollars as well

21 as we also take kids from high schools because we

22 have alternative programming and I'm supplementing

23 that.

24 But our Board of Directors are asking, how

25 long is that going to continue? 173

1 The last part, the last piece, that I must

2 make is that there seems to be a drive towards

3 central planning. And I think that this 15 percent

4 and 3 percent retained revenue central planning is

5 not the way that Pennsylvania should go.

6 We have a rich system of providers. We have

7 a huge array of services both on the delinquent and

8 dependent side. And having a State-controlled

9 system, you can look at neighboring States. You can

10 look at Ohio. You can look at New Jersey to see that

11 that's not a very good system for child welfare.

12 Thank you.

13 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

14 Let's do Bernadette and end with Secretary

15 Richman.

16 MS. BIANCHI: Thank you.

17 I am Bernadette Bianchi. I work for the

18 membership of the Pennsylvania Council of Children,

19 Youth, and Family Services.

20 And thank you, Secretary Richman, for

21 agreeing to rethink those contentious items in the

22 proposed bulletin.

23 SECRETARY RICHMAN: I have made the offer to

24 meet frequently about those things.

25 MS. BIANCHI: And I will take you up on that 174

1 offer. We were trying to be most appropriate in

2 dealing directly with the Deputy Secretary through

3 the Office of Children, Youth, and Families, not

4 wanting to circumvent that process. But we will

5 follow your direction and meet right with you.

6 I do have another issue that is in the draft

7 bulletin that I think is the potential for another

8 contentious discussion especially as we move quickly

9 into the completion of the fiscal forms.

10 And that's regarding the process that is

11 being proposed for the review of those fiscal forms

12 with State and county partners and review teams.

13 Without a lot of clarity around that,

14 without a lot of consistency and interpretation, we

15 could well end up with just as big a mess this round

16 as we currently have left over from this last round

17 last July.

18 So we would ask that it be closely monitored

19 that providers be included in that process very

20 intimately because it affects our ability to do the

21 work that we are committed to doing, and that there

22 be consistency in that implementation and roll-out.

23 Thank you.

24 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you.

25 SECRETARY RICHMAN: Just to finish up on 175

1 some financial issues.

2 And I think you made reference to it. The

3 OCYF budget, just OCYF budget, between '04-'05 and

4 '08-'09 increased 64, almost 65 percent in total

5 dollars.

6 Now, some of that about 150 million, which

7 would probably bring it down a little bit, was when

8 we moved the TANF dollars, I think, as Lisa

9 referenced, from the TANF line item to the Act 148

10 and children's line item.

11 When the General Assembly looks at a 65

12 percent increase in a single area, the question

13 demands attention and change because you have

14 providers saying they aren't getting enough. You

15 have counties saying they aren't getting enough.

16 And also if look nationally, Pennsylvania

17 ranks third in national funding behind New York and

18 California, appropriately, but way too close given

19 their size to ours. We rank ahead of Illinois and

20 Texas, who are both significantly larger than we are

21 as States.

22 So the money is in the system. The issue

23 becomes, how are we spending it? Who is spending it?

24 And how are we being held accountable?

25 This was the ACF Federal issue. You've got 176

1 a lot of money going in there. What are you doing

2 with it and how are you counting?

3 Ann Marie brought hers up. Their request

4 was about $90 million for this year, you know, new

5 dollars. When we come back to certify, we bring that

6 down substantially. And it's not all based on what

7 we can afford.

8 A lot of it in this particular area is based

9 on how substantiated it is and how can we justify to

10 the General Assembly what the new dollars are going

11 for. Do we have outcomes to justify those dollars?

12 And where we don't, how are we going to get them?

13 The system needs to be changed. I will tell

14 you, the process of how we change is important. And

15 the dialogue needs to happen. But I don't want to

16 leave any misperception that we can afford to leave

17 the system as is, that we can afford to pour the

18 dollars in the system that we pour into the system

19 and not be able to explain more clearly why we had a

20 65 percent increase in this particular budget.

21 Incidentally, that's just about the highest

22 increase we've had in any of our major offices.

23 This is a tough time. We're in an economic

24 crisis that hopefully we'll never see again and our

25 children won't even have to go through. 177

1 But at that same time, we need to still be

2 economically aware of the impact on children. And

3 this is going to be a tough time for our families.

4 And too many of our families who use alcohol and

5 other things to kill the pain they're in, we still

6 need to be attentive. We need to be attentive to our

7 providers. And we need to figure out together,

8 together being the operative word, how we're going to

9 live through the essence of this crisis.

10 Thank you.

11 SUBCOMMITTEE CHAIRMAN MANDERINO: Thank you

12 very much.

13 Representative Reichley, I know you had a

14 question and you had to leave. Do you want to ask a

15 question?

16 REPRESENTATIVE REICHLEY: I did have to

17 leave, but Representative True told me it was

18 covered. I understand the provider issue and running

19 the price cap through the bulletin is being addressed

20 by the Secretary. I appreciate that.

21 Thank you.

22 SUBCOMMITTEE CHAIRMAN MANDERINO: Very good.

23 Thank you all very much for taking a whole

24 morning. I know we kind of sent out the invites and

25 said, please stay for the whole morning, and you all 178

1 did. I hope it was as productive for you having

2 stayed the whole morning as it was for us to have

3 heard everything.

4 So thank you very much. And I look forward

5 to working and going forward with all of you.

6

7 (The hearing concluded at 12:30 p.m.)

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25 179

1 I hereby certify that the proceedings and

2 evidence are contained fully and accurately in the

3 notes taken by me on the within proceedings and that

4 this is a correct transcript of the same.

5

6 ______Jean M. Davis, Reporter 7 Notary Public

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