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Center for Public Policy Priorities www.cppp.org
The Condition of Children in The Condition of Children in Texas: An Advocates’ ViewTexas: An Advocates’ View
January 17, 2007
Frances Deviney, Ph.D., Texas KIDS COUNT DirectorCenter for Public Policy Priorities
Center for Public Policy Priorities www.cppp.org
Center for Public Policy Priorities www.cppp.org
Overview
• Budget• Medicaid & CHIP• TANF• Nutrition • Child Protective Services• Early Childhood Education• Family Financial Security
Center for Public Policy Priorities www.cppp.org
How Much Money Will There Be?
For 2008 and 2009, the Comptroller estimated that legislators will have
$82.5 billion available for general purpose spending(of that, $7 billion is 2006-2007 revenue that won’t be spent by August 2007 — the current budget cycle’s “ending balance”)
plus
$8.1 billion in the Property Tax Relief Fund
and
$4.3 billion in the “Rainy Day Fund” (5% of revenue)
Center for Public Policy Priorities www.cppp.org
How Much Are We Already Spending?
For 2006 and 2007, the Comptroller reports
$68.2 billion in general purpose spending,
but:
In addition to that, almost $600 million out of the “Rainy Day Fund” is being spent on child protective services (CPS) reforms
And $82.5 B revenue, 08-09 - 68.2 B spent, 06-07
$14.3 billion “surplus”
Center for Public Policy Priorities www.cppp.org
Why Isn’t That Really a “Surplus”?
$14.3 billion
Revenue in Excess of 2006-07 Spending
Needed for K-12 (full cost of tax cut;
enrollment, other HB 1)
Higher Ed: formula funding changes for
enrollment, costs
$4.5 billion$1.7 billion
Center for Public Policy Priorities www.cppp.org
But Wait ! There’s More
Health & Human Services: entitlement caseloads & costs; General Revenue
for CPS
“Truth in Spending” (GR dedications for parks, System Benefit Fund, etc.)
OTHER: Prisons; Business/ Eco. Devel.;
Judiciary; General Govt.; Worker Pay/Benefits
$3.7 b>$2.5 b
$1.9 b left
Center for Public Policy Priorities www.cppp.org
2010-2011 Budget: $5.8 Billion Gap Between Tax Cut Cost & Revenue
$0.5
$4.1 $4.2 $4.4 $4.7
$7.6$7.3$6.9$6.6
$2.1
$0.0
$2.5
$5.0
$7.5
$10.0
2007 2008 2009 2010 2011
Cost of property tax cut
Revenue from special session tax changes
Billions
Center for Public Policy Priorities www.cppp.org
Texas Net Expenditures – FY 2006
HHS36%
Employee Benefits
4%
Education34%
Other5%
Government Branches
4%Transportation
11%
Public Safety & Corrections
6%
Source: Texas Comptroller of Public Accounts, All Funds Excluding Trust
Center for Public Policy Priorities www.cppp.org
Entitlement Programs
Center for Public Policy Priorities www.cppp.org
Loss of Staff
FY 2007 figure includes both state and contract staff
Staff* and Caseload Changes, 1997-2007
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1997 2004 2007
Cas
eloa
ds (
reci
pien
ts)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Elig
ibilit
y S
taff
Food Stamps Medicaid TANF Total Staff
Center for Public Policy Priorities www.cppp.org
Services to clients suffer• Less than half of eligible households
get Food Stamps• Half of uninsured kids (@700K)
eligible for Medicaid/CHIP, but not enrolled
• Clients frustrated, deterred• Lawsuits related to customer service
shortcomings
Center for Public Policy Priorities www.cppp.org
A Vicious Cycle
High turnover rates
Staffing
shortages
Heavy workload
OUTCOMES:• System doesn’t work• Client services suffer• Public confidence in
system is undermined• Alternative
approach/fix sought
Center for Public Policy Priorities www.cppp.org
What is “IE&E”?
• Modernization of eligibility determination and enrollment:– Better technology/greater automation– Centralized and paperless computer system– Remote application options– More partnerships with nonprofits
• Outsourcing development, administration, and partial staffing of system
• Significant staffing reductions & office closures
Center for Public Policy Priorities www.cppp.org
Pros and Cons of Privatization
Center for Public Policy Priorities www.cppp.org
Problems with IE&E• Technical problems• Poor training of contractor staff• Staffing shortages
Lead to:• >100K kids lose health coverage between Dec
05 and Sep 06.• Large backlog of applications in pilot area • Rollout on hold indefinitely, though TIERS (new
computer system) is being expanded• Serious delays in application processing in most
metro areas; error rates also on the rise
Center for Public Policy Priorities www.cppp.org
Children’s Health Care
Center for Public Policy Priorities www.cppp.org
Uninsured Texas Children:We CAN Cut the Number in Half by
Enrolling Kids Who are Eligible Right Now
Texas Children who are Uninsured, 2004-05 – U.S. Census
All incomes, ages 0-18 (2-year average 2004-05 Census CPS)
20.4% 1.367 million
< 200% FPL, ages 0-18 (2-year average 2004-05 Census CPS)
28% 919,000
•Texas is home to nearly 1.4 million uninsured children.
• 2/3 of these uninsured Texas children are below 200% of the federal poverty line, despite Medicaid and CHIP.
•More than HALF our uninsured Texas Kids Could be enrolled in Medicaid or CHIP today! (Adjusting for ~230,000 undocumented kids; another 160,000 legal immigrant (LPR) children can participate in CHIP (Pew Hispanic Center)).
Center for Public Policy Priorities www.cppp.org
Texas CHIP Coalition & the Insure Texas Kids Campaign
• Cut the number of uninsured Texas kids in half by enrolling every eligible child in CHIP and Medicaid
• 12 months continuous eligibility for CHIP and Children’s Medicaid
• Provide adequate reimbursement for Medicaid and CHIP providers
• Invest in outreach and education to ensure that all eligible children get the care that they need
Center for Public Policy Priorities www.cppp.org
Texas CHIP Coalition & the Insure Texas Kids Campaign
• Eliminate bureaucratic roadblocks to encourage personal responsibility and help low income families achieve self-sufficiency:– Fix problems with the Integrated
Eligibility System to prevent eligible kids from losing CHIP and Medicaid coverage
– Eliminate the CHIP asset test – Eliminate the CHIP 90 day waiting period
for uninsured children – Deduct childcare and child support
expenses when calculating income for CHIP
Center for Public Policy Priorities www.cppp.org
Bills of interest
• SB 266 (Zaffirini)– Changes Child Medicaid eligibility review
from 6 months to 12 months
• HB 669 (Coleman)– Changes income eligibility from gross
family income to net family income < 200% FPL
– Also changes 6 to 12 mo. Eligibility
• HB 510 (Farabee)– Mental health parity for children
Center for Public Policy Priorities www.cppp.org
Nutrition
Food Stamps & School Breakfast/Lunch
Center for Public Policy Priorities www.cppp.org
Food Stamps
• Approximately 1 in 5 TX Children Receives Food Stamps
• Unfortunately, nearly half of eligible children are not enrolled.
• Privatized eligibility & enrollment system – Poor customer service– Increased error rates from FY05-FY06
Center for Public Policy Priorities www.cppp.org
Error Rates Increase
Center for Public Policy Priorities www.cppp.org
Food Stamps
• CPPP will propose a strategy to protect and improve access in the new privatized system
• Could include:– Increased funding for staff– Statutory standards related to access – Data collection requirements
• Bill by Rep. Rodriguez & Sen. Zaffirini to increase food stamp recipients' monthly benefit for the purpose of buying more fruits and vegetables.
Center for Public Policy Priorities www.cppp.org
School Breakfast/Lunch
Over 2.5 million students (or 60% of the school population) receives free
or reduced-price lunches in TX public schools Texas Department of Agriculture, 2006 data
Center for Public Policy Priorities www.cppp.org
School Breakfast/Lunch
• HB 454 (Representative Rodriguez)– Allows individual school districts to
participate in “Provision 2”– This program allows very poor districts
in Texas to serve breakfast & lunch to all students
– HB 454 would allow individual schools (e.g., poor schools in wealthy districts) the opportunity to extend this service to their students
Center for Public Policy Priorities www.cppp.org
Temporary Assistance for Needy Families (TANF)
Center for Public Policy Priorities www.cppp.org
TANF Work Requirements
• Recent changes at the federal level
– At least 50% of adults on TANF must engage in a narrowly defined set of work activities or the state will face penalties.
– Texas may push lawmakers to eliminate current exemptions from the work requirement.
Center for Public Policy Priorities www.cppp.org
TANF Work Participation Exemptions
• In Texas, the majority of these exemptions currently go to persons:– With disabilities, or – Adults caring for children with
disabilities
• Very hard for these families to comply with the work requirement.
Center for Public Policy Priorities www.cppp.org
TANF Full-Family Sanction
• If these exemptions are eliminated, many families will be “cut off” from TANF and will no longer receive assistance.
• Under Texas’ “full-family” sanction policy adopted in 2003, everyone in the family (including children) loses their assistance when an adult breaks a program rule.
Center for Public Policy Priorities www.cppp.org
Children Receiving TANF
• Since the full-family sanction was instituted in 2003, tens of thousands of children have lost assistance.
• As of 2004, only 213,000 Texas children received cash assistance– 63,000 children dropped from 2003 to
2004– Down from over 550,000 in the mid-1990s
Center for Public Policy Priorities www.cppp.org
TANF During the 2007 Session?
CPPP’s proposed strategy:
1.Create separate assistance program for families with serious barriers to employment
2.Create a Post Employment Work Supports
3.Help families comply with TANF requirements
4.Require reports on “good cause” exceptions
5.Expand the “One-Time TANF” (OTT) program
Center for Public Policy Priorities www.cppp.org
Child Protective Services
Center for Public Policy Priorities www.cppp.org
6.3 million children in Texas in 2005
1.5 million living in poverty
12,412 removed from home
About 806,000 calls to DFPS Intake
338,021 children in CPS investigations
61,433 confirmed victims of abuse or neglect
Texas Child Protection System, 2005
Approximately 29,000 kids in legal custody of Texas child welfare system in 2005
Center for Public Policy Priorities www.cppp.org
Senate Bill 6 Reform of CPS*
• Investigations• Privatization• Managed Medical Care• Use of medications by foster youth• Cultural Awareness• Kinship care• Services for youth transitioning out of
foster care• Improving legal representation of children
and parents*79th Texas Legislature, 2005
Center for Public Policy Priorities www.cppp.org
Theories Supporting Privatization
• CPS in need of reform• Private entities = innovation• With less bureaucracy, better
outcomes for kids• Competitive procurement
process stokes better outcomes
Center for Public Policy Priorities www.cppp.org
Short List of Concerns about Privatization of CPS
• CPS lacks capacity to monitor contractors• Contractors unversed in all aspects of case work and
lack experience dealing with families• Lack of uniform training for contractors – different
outcomes for children• Mixed results with privatization efforts in other states• Question about ultimate responsibility for children –
court related duties• Lack of adequate funding – likely more expensive
than current system• Most importantly, impact on children while problems
worked out – 29,000 + kids currently in substitute care
Center for Public Policy Priorities www.cppp.org
Where is the Privatization Effort?
• Off-track
• RFPs for the IA and IE – on indefinite hold
• Creating climate of uncertainty within an already fragile and under funded agency
Center for Public Policy Priorities www.cppp.org
Crisis in the Making for Conservatorship
Caseworkers• Investigators have job security and
are paid $5,000 more• New non-caseload positions have job
security and often come with salary increases
• Training increased from 6 to 12 weeks
• Conservatorship caseloads hit the tipping point and then implode
Center for Public Policy Priorities www.cppp.org
DFPS Funding Issues:
$ $
Investigations Case Management
Much needed improvements made to front-end of CPS system due to 2005 legislation, but no
additional funds allocated to remainder of system, which is also in dire need of attention
Center for Public Policy Priorities www.cppp.org
How can CPS Improvements Started by the 79th
Legislature be Continued?
• Look at the failures of the Integrated Eligibility & Enrollment privatization effort……Stop Privatization
• Focus on conservatorship
Center for Public Policy Priorities www.cppp.org
How Can Conservatorship be Saved?
• Increase funding to lower caseloads• DFPS – generic contracting authority • Task CPS with creating a System
Improvement Plan:– Reduce caseloads– Improve kinship care– Increase family group conferencing– Bring projects started by SB6 to scale
• Medical & Education Passports, Medical Home, Review of Medications, Improve Issues around Disproportionality
Center for Public Policy Priorities www.cppp.org
Selected Child Protection Bills
• House Bill 363 (Naishtat)– Removes all reference to privatizing case
management services in the Family Code that was altered by SB 6 in 2005
• HB 662 (Dukes)– Requires DFPS to develop a state-wide, long-
range strategic plan for child abuse and neglect prevention
– Charges the Interagency Coordinating Council for Building Healthy Families with facilitating coordination of service delivery among agencies
Center for Public Policy Priorities www.cppp.org
Early Childhood Education
Center for Public Policy Priorities www.cppp.org
Early Childhood Education
• In 2004 in Texas– Nearly 123,000 children receiving
subsidized child care (5.2% of 0-12 population)• But 36,000 on waiting lists
– Over 166,000 children attending Pre-K (24.2% of 3 & 4 year olds)
– Nearly 64,000 children participating in Head Start (9.3% of 3 & 4 year olds)
Center for Public Policy Priorities www.cppp.org
Selected Early Childhood Education Bills
• SB 50 (Zaffirini)– Omnibus bill that expands Pre-K services,
increases reimbursement rates for providers, improves recruitment, retention, and quality of EC professionals
• SB 264 (Ellis)– Expands free pre-K programs to all four-year olds
• HB 575 (Straus) & HB 482 (Villarreal) & SB 113 (Van de Putte)– All Foster Care children ages 3 to 4 to be eligible
for pre-K even if conservatorship status changes
Center for Public Policy Priorities www.cppp.org
Immigration
• HB 28 (Rep. Berman)– Citizen children born in Texas to
undocumented immigrants would not be eligible for:• TANF• Food Stamps• Health Care or Coverage• Public Housing• Public Education in primary, secondary, or
higher education• Unemployment or Retirement Benefits
Center for Public Policy Priorities www.cppp.org
Other Bills of Interest
• SB 98 (Senator Zaffirini)– Require LBB to prepare a child impact
statement any bills or joint resolutions considered by the legislature
– Must address whether & how bill impacts:• Emotional, physical, intellectual, and financial
needs & access to resources• Different groups of children• Ability of parents to provide for child well-
being
Center for Public Policy Priorities www.cppp.org
Sustained & Balanced Investment in
Children and Families is the Key
Center for Public Policy Priorities www.cppp.org
Healthy Children Come from Healthy Families
Center for Public Policy Priorities www.cppp.org
Presenter Contact Information
• Frances Deviney, Ph.D.– Texas KIDS COUNT Director & Senior
Research Associate– 512/320-0222, ext. 106– deviney@cppp.org
Center for Public Policy Priorities www.cppp.org
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If you reproduce these slides, please give appropriate credit to CPPP.
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Center for Public Policy Priorities900 Lydia StreetAustin, TX 78702
Phone 512-320-0222 Fax 512-320-0227
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