2016 Colorado Revised Statutes
Title 26 - Human Services Code
Article 5 - Child Welfare Services
§ 26-5-104. Funding of child welfare services - rules - funding mechanism review

(1) Reimbursement. The state department shall, within the limits of available appropriations, reimburse the county departments eighty percent of amounts expended by county departments for child welfare services, up to the amount of the county's allocation as determined pursuant to the provisions of this section, except as otherwise authorized in accordance with the close-out process described in subsection (7) of this section.

(2) Parental fees. The fiscal year beginning July 1, 1990, shall constitute the base fiscal year for the purpose of computing a base amount of parental fee collections by each county on behalf of children in foster care. Commencing with the fiscal year beginning July 1, 1991, any increased amount of parental fees over and above the base amount shall be retained by the county that collected such parental fees. Any moneys retained by each county pursuant to this subsection (2) may be used for child welfare services directed toward early intervention, placement prevention, and family preservation, or any other program funded pursuant to sections 19-2-211, 19-2-212, and 19-2-310, C.R.S.

(3) Allocation formula. (a) For state fiscal year 1997-98, and for each state fiscal year thereafter, the state department, after input from the child welfare allocations committee, shall develop formulas for capped and targeted allocations that shall include, effective for state fiscal year 1998-99, the estimated caseload for the delivery of those specific child welfare services to be funded by the moneys in such capped or targeted allocations. If a county receives more than one capped or targeted allocation for the delivery of child welfare services, the formula shall identify the specific caseload estimate attributable to each capped or targeted allocation. The determination of the formulas pursuant to the provisions of this subsection (3) shall also take into consideration such factors as:

(I) (Deleted by amendment, L. 98, p. 782, § 5, effective May 22, 1998.)

(II) The county's allocations and expenditures for child welfare services in the three previous state fiscal years and a comparison of the spending in those prior years with the caseloads in the respective prior state fiscal years;

(III) (Deleted by amendment, L. 98, p. 782, § 5, effective May 22, 1998.)

(III.5) Beginning with the 2012-13 state fiscal year, the county's prior fiscal year expenditures on preventive family preservation services and the number of families served; and

(IV) Other factors determined by the state department and the child welfare allocations committee that directly affect the population of children in need of child welfare services in a county.

(b) In the event that the state department and the child welfare allocations committee do not reach an agreement on the allocation formula on or before June 15 of any state fiscal year for the succeeding state fiscal year, the state department and the child welfare allocations committee shall submit alternatives to the joint budget committee of the general assembly from which such joint budget committee shall select an allocation formula before the beginning of such succeeding state fiscal year.

(c) The formulas developed by the state department, after input from the child welfare allocations committee, shall identify the portion of the amounts appropriated for child welfare services that shall be allocated to the counties for the provision of child welfare services.

(d) A county's election to make a transfer of federal funds pursuant to section 26-2-714 (9) for the provision of child welfare services shall not be the basis of an adjustment to the formula for developing such county's capped or targeted allocation under the provisions of this article.

(e) A county's cost savings shall not be the basis of an adjustment to the formula for developing such county's capped or targeted allocation under the provisions of this article.

(4) Allocations. (a) For state fiscal year 1997-98, and for each state fiscal year thereafter, all counties shall receive capped allocations for child welfare services. A county may receive one or more capped allocations for the provision of child welfare services. The counties may use capped allocation moneys for child welfare services without category restriction within a specific capped allocation if not prohibited by federal law.

(b) (I) The state department shall make capped allocations for counties serving at least eighty percent of the total child welfare services population.

(II) For the balance of the state, the state department shall create one capped allocation or a series of capped allocations for the provision of child welfare services in the balance of the state. The state department shall establish a targeted allocation for each county in such group of counties designated for the purpose of such capped allocation or capped allocations.

(c) The state department, in consultation with the child welfare allocations committee, shall adopt rules for when a county may exceed its capped or targeted allocation or allocations.

(d) The state department may only seek additional funding from the general assembly in a supplemental appropriations bill based upon caseload growth, subject to the provisions of subsection (7) of this section, or changes in federal law or federal funding. For fiscal years 2006-07 and 2007-08, the state department may seek supplemental funding related to the implementation of the placement of children in a residential child health care program as specified in section 25.5-5-306, C.R.S.

(e) A county's allocation or allocations may be amended due to caseload growth, subject to the provisions of subsection (7) of this section, or changes in federal law or federal funding.

(5) Management training. The state department shall develop a management training package to be delivered to the counties no later than October 1, 1997, that shall assist the counties in the development of more effective management strategies for the utilization of resources in the delivery of child welfare services. The state department may utilize portions of the child welfare administration appropriations toward this end and is hereby authorized to pursue any private or public grants to fund such efforts.

(6) County negotiations with providers. (a) Subject to rules promulgated by the state department pursuant to paragraph (b) of this subsection (6), a county shall be authorized to negotiate rates, services, and outcomes with providers if the county has a request for proposal process in effect for soliciting bids from providers or another mechanism for evaluating the rates, services, and outcomes that it is negotiating with such providers that is acceptable to the state department.

(b) No later than January 1, 2008, the state department shall promulgate rules governing the methodology by which counties may negotiate rates, services, and outcomes with licensed providers.

(c) A county that negotiates or renegotiates rates, services, and outcomes pursuant to paragraph (a) of this subsection (6) shall include as part of such negotiations or renegotiations cost of living adjustments and provider rate increases approved by the general assembly.

(d) By July 1, 2008, and by July 1 of each even-numbered year thereafter, the state department shall complete a review of the methodology by which counties negotiate rates, services, and outcomes with licensed providers. The methodology used is governed by rules promulgated by the state department pursuant to paragraph (b) of this subsection (6). In preparing for and conducting the review, the state department shall convene a group of persons representing the directors of county departments of human or social services and the provider community.

(e) On or before August 1, 2016, as a continuation of the review conducted pursuant to paragraph (d) of this subsection (6) of the methodology by which counties negotiate rates, services, and outcomes with licensed providers, the state department shall convene a group of representatives from the state department, counties, the provider community, and the joint budget committee to review the rate-setting process for provider compensation. On or before December 15, 2016, the group shall provide the joint budget committee and the child welfare allocations committee with a report that recommends whether any changes to the rate-setting process for provider compensation are advisable and, if so, the recommended process or methodology. The group is not required to recommend changes to the current rate-setting process if it determines that the current rate-setting process is the preferable option.

(6.5) The state department shall analyze and evaluate expenditures as reported by child placement agencies each year and compare such expenditures to county expenditures for the provision of foster care services. The state department shall provide, at least on an annual basis, such analyses and comparisons to county departments and the joint budget committee.

(7) Close-out process for county allocations. (a) For state fiscal year 1998-99, and for each state fiscal year thereafter, and subject to the limitations set forth in this subsection (7), the state department may, at the end of a state fiscal year based upon the recommendations of the child welfare allocations committee, allocate any unexpended capped funds for the delivery of specific child welfare services to any one or more counties whose spending has exceeded a capped allocation for such specific child welfare services.

(b) A county may only receive funds pursuant to the provisions of paragraph (a) of this subsection (7) if the requirements of section 26-5-103.5 (4) have been satisfied, for expenditures other than those attributable to administrative and support functions as referred to in section 26-5-101 (3) (m), as defined in accordance with the provisions of section 26-5-103.5 (4), and for authorized expenditures attributable to caseload increases beyond the caseload estimate established pursuant to subsection (3) of this section for a specific capped allocation.

(c) A county may not receive funds pursuant to the provisions of paragraph (a) of this subsection (7) for authorized expenditures attributable to caseload increases for services in one capped allocation from unexpended capped funds in another capped allocation.

(d) As used in this section, "unexpended capped funds" means funds that have been appropriated for child welfare services, allocated to a county or group of counties as a capped allocation or allocations pursuant to the provisions of subsection (4) of this section, but not spent by such county or group of counties or subject to the provisions of section 26-5-105.5 (3).

(8) County-level child welfare staff. (a) For the state fiscal year 2015-16, and for each state fiscal year thereafter, each county may receive a capped allocation in addition to its portion of the child welfare block grant for the specific purpose of hiring new child welfare staff at the county level in addition to child welfare staff existing as of January 1, 2015. A county that utilizes said additional allocation shall continue to pay for child welfare staff positions existing as of January 1, 2015, through the child welfare block grant. The child welfare allocations committee shall determine the allocation formula pursuant to section 26-5-103.5 (5).

(b) Each county that receives an allocation for child welfare staff pursuant to paragraph (a) of this subsection (8) shall provide a ten percent match to state and federal moneys provided pursuant to this subsection (8); except that a county that qualifies as tier 1 or tier 2 for purposes of the county tax base relief fund, as defined in section 26-1-126 (3) and (4), is funded at one hundred percent of state and federal funds provided pursuant to this subsection (8).

(c) Any moneys allocated pursuant to this subsection (8) that are not expended by the end of a fiscal year for the purpose specified in paragraph (a) of this subsection (8) must revert back to the general fund.

(9) Child welfare funding review and restructure. (a) On or before August 1, 2016, the child welfare allocations committee shall consider whether a restructuring of child welfare funding policy would be advisable. The child welfare allocations committee shall solicit and include input from any interested county commissioners, directors of county departments of human or social services, county child welfare directors, county financial officers, the state department, and the joint budget committee in its consideration of child welfare funding restructuring. Any such policy changes must reflect federal and state law, as well as current child welfare practices.

(b) On or before December 15, 2016, the child welfare allocations committee shall provide the joint budget committee with its findings and any recommendations for restructuring child welfare funding. The recommendations must include the input from stakeholders as provided for in paragraph (a) of this subsection (9), and may include standards for a new allocations model for child welfare funding and an evaluation process. The child welfare allocations committee is not required to recommend changes to the current child welfare funding structure if it determines that the current structure is the preferable option.

(c) The child welfare allocations committee shall consider input from stakeholders as provided for in paragraph (a) of this subsection (9) in discussing:

(I) Funding for county-level staff, services, child welfare-related operational expenses, and administrative and support functions;

(II) Strategies that enhance the flexibility for counties to use child welfare funding in accordance with state and federal laws;

(III) Strategies to improve job enrichment and employee retention;

(IV) The impact of any recommendation on local spending requirements;

(V) Any statutory changes necessary to implement the recommendations; and

(VI) Allocations that support current child welfare practices.

(d) On or before January 1, 2018, and each January 1 thereafter, the child welfare allocations committee shall submit an annual report to the joint budget committee, the public health care and human services committee of the house of representatives, and the senate health and human services committee, or any successor committees. The report must include the results of regular assessments of the methods for the evaluation of and reporting on the allocation, use, sufficiency, and effectiveness of funding and services funded through line items from which allocations are made to counties.