options for allocating state child welfare dollars to wisconsin counties prepared for the wisconsin...
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![Page 1: Options for Allocating State Child Welfare Dollars to Wisconsin Counties Prepared for the Wisconsin Department of Children and Families Christine Durkin](https://reader034.vdocuments.site/reader034/viewer/2022051620/56649ef15503460f94c031a0/html5/thumbnails/1.jpg)
Options for Allocating State Child Welfare Dollars
to Wisconsin CountiesPrepared for the Wisconsin Department of Children and Families
Christine DurkinAdam Hartung
Sara KockJennifer Russ
Paul Waldhart
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Problem● Current formula may not match resources to
need as effectively as it could
● To form our alternatives:● Literature review● Surveys● Interviews
● With other states● With Wisconsin counties
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Overview● Current policy
● Alternatives
● Recommendation
● Cross-county collaboration
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Background● State supervised, county administered system● Differences in demand for services
10 Lowest Poverty Counties
10 HighestPoverty Counties
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Background● Funded with state and local dollars● Declining state revenues● Limiting property tax levy
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Current PolicyIn 1986, Wisconsin allocated child welfare money based on:1.Total population2.Residents enrolled in Medicaid3.Property values
20111986
State Child Welfare Dollars
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Alternatives● We examined two alternatives:
1. Risk Factor: More risk = More $2. Workload: More demonstrated need = More $
● We considered but eliminated:3. Updating the current formula4. Percent-For-Service: DCF reimburses counties a
percentage of service costs 5. Performance-Based Contracting: DCF purchases
outcomes, counties sell outcomes
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Alternative #1: Allocation based on Risk Factors
Step 1County need for child welfare services = β1Number of children in single
parent families + β2Number of children living in poverty + ԑ(error)
Step 2County risk number = 0.33(Number of children in single-parent families
in county) + 0.67(Number of children living in poverty in county)
β1 / (β1+ β2) = 0.33 and β2 / (β1+ β2) = 0.67
0.33 + 0.67 = 100%
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Alternative #1: Allocation based on Risk Factors
Step 1County need for child welfare services = β1Number of children in single
parent families + β2Number of children living in poverty + ԑ(error)
Step 2County risk number = 0.33(Number of children in single-parent families
in county) + 0.67(Number of children living in poverty in county)
Step 3County allocation = (County risk number / Sum of risk numbers for all
counties) x Total CFA funding available
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Alternative #1: Allocation based on Risk Factors
Step 1County need for child welfare services = β1Number of children in single
parent families + β2Number of children living in poverty + ԑ(error)
Step 2532= 0.33 (400) + 0.67 (600)
Step 3$866,400= (532 / 35,000) x $57 million
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Alternative #2: Allocation based on Workload
More cases and/or more labor-intensive cases = More $
●Children’s Research Center developed a framework●DCF would:
1. Calculate time spent on each service area per case2. Use eWiSACWIS to determine the number of cases 3. Calculate county workload (time per case x # of cases)4. Allocate funds based on county’s proportion
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Example County Workforce Estimate
County Service Area
Number of Cases per
Month
Worker Hours/Caseper Month
Total Worker Hours
CPS IntakeScreened-In CPS Reports 127 1.1 140Screened-Out CPS Reports 75 0.3 22
CPS Investigation/AssessmentInvestigated Cases w/out Substantiation 95 8.1 773
Investigated Cases with Substantiation 23 13.4 309
Child and Family ServicesNew Child Case 13 9.5 127Ongoing Child Case 14 6.6 1,139
Total County Workload Demand in Worker Hours 2,512 hrsCounty Proportion of State Aid 6.2%
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Goals● Effective
● Matches need with resources
● Minimal potential for cheating
● Equitable● Measures need
regularly● Equal spending per
person
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Estimated County Allocation per Person, by Percent of County Population Living in Poverty
CURRENT POLICY
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Estimated County Allocation per Person, by Percent of County Population Living in Poverty
CURRENT POLICY RISK FACTOR FORMULA
WORKLOAD METHOD
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Goals● Effective
● Matches need with resources
● Minimal potential for cheating
● Equitable● Measures need
regularly● Equal spending per
person
● Lower Additional Cost to DCF ● Acceptable to Counties
● Methodology ● Magnitude of gains &
losses● Number of gainers &
losers
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Magnitude of Changes in County Allocation, by Percent of County Population Living in
PovertyRISK FACTOR FORMULA WORKLOAD METHOD
Percent of County Population Living in Poverty
Highest Poverty Counties
Lowest Poverty Counties
Highest Poverty Counties
Lowest Poverty Counties
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Changes in County Allocation, by Percent of County Population Living in Poverty
Percent of County Population Living in Poverty
RISK FACTOR FORMULA WORKLOAD METHOD
Decreased CFA No Change in CFA Increased CFA
Highest Poverty Counties
Lowest Poverty Counties
Highest Poverty Counties
Lowest Poverty Counties
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Implementation Considerations● Leaky bucket
● Receiving more state dollars may reduce county funding
● County levy limits● Larger burden on counties who cannot raise revenue● Solution: “No harm” exemption
● Large fiscal impacts on counties● Significant declines would be hard to absorb● Solution: Gradual implementation
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RecommendationRisk Factor Formula●Effective:
● Matches resources to need● Data manipulation unlikely
●Equitable: ● Updated yearly ● Counties with similar poverty rates treated alike
●Low additional cost to DCF●Counties likely will find it moderately acceptable
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County Interviews and SurveysIn-person interviews with county Human Services Departments● 2 small (Marquette and Richland)● 3 medium (Dodge, Rock, and Sauk)● 2 large (Milwaukee’s BMCW and Dane)
On-line survey to all counties on cross-county collaborations for CPS● 11 responses from across the state
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County Interviews and Surveys
Four themes from counties1.The importance of block grants and flexibility 2.The role of local decision-making3.Differences between BMCW and counties4.Constraints of state mandates
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Cross-County Collaborations
Suggestions for collaboration●High-Risk or Catastrophic Case Insurance Pool●Access and intake●Training
● Foster care training for parents● Specialized and high-cost services ● Use of teleconferencing for training
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Cross-County Collaborations
Some counties still won’t give up local control●Screen-in discretion ●Out-of-county institutions ●Debate over where to locate a new regional service hub or institution
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Cross-County CollaborationsHow DCF can facilitate ●“Lay the groundwork” for the first meeting ●Provide information collected by DCF●Reduce or help navigate state mandates●If DCF provides new funds:
● Help fund portions of specialized staff ● Grants for start-up services/institutions for
multi-county collaborations
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Cross-County Collaborations
Problems to avoid●Too many changes at once●Poor budgeting and unrealistic expectations●Lack of buy-in among stakeholders●Unaccountable governing bodies
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Conclusion● We explained:
● CPS demands and funding● Two alternatives● Themes from county interviews and surveys
● We recommend:● DCF adopt the Risk Factor Formula● DCF encourage and facilitate cross-county
collaboration
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For further informationContact the La Follette School’s publications office at
608-263-7657 or [email protected]
Or see www.lafollette.wisc.edu/publications/workshops.html
Thank you
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APPENDIX SLIDES
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Alternative #1Risk Factor Coefficient Summary
Risk Factors Coefficients Standard Error
Number of Children Living in Poverty 0.0795*** (0.0129)
Number of Children in Single-Parent Families 0.0386** (0.0157)
Constant 14.83 (19.66)
Number of Observations 72 Counties
R-Squared 0.974*** p<0.01, ** p<0.05, * p<0.1Source: Authors, calculated using DCF (2010) and ACS (2010) data
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Estimated County Allocation per Person Under Current Policy, by Percent of County Population
Living in Poverty
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Estimated County Allocation per Person Under Risk Factor Formula, by Percent of County
Population Living in Poverty
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Estimated County Allocation per Person Under Workload Method, by Percent of County
Population Living in Poverty
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Magnitude of Changes in County Allocation using The Workload Method, by Percent of
County Population Living in Poverty
Note: 1st quartile are those counties with highest levels of poverty
Highest Poverty Counties
Lowest Poverty Counties
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Changes in County Allocation using Risk Factor Formula, by Percent of County Population
Living in Poverty
Note: 1st quartile are those counties with highest levels of poverty
Highest Poverty Counties
Lowest Poverty Counties
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Changes in County Allocation using Workload Method, by Percent of County Population
Living in Poverty
Note: 1st quartile are those counties with highest levels of poverty
Highest Poverty Counties
Lowest Poverty Counties
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Background● State supervised, county administered system● Differences in demand for services
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Background● Funded with state and local dollars● Declining state revenues● Limiting property tax levy
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Estimated County Allocation per Person, by Percent of County Population Living in Poverty
CURRENT POLICY
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Estimated County Allocation per Person, by Percent of County Population Living in Poverty
CURRENT POLICY RISK FACTOR FORMULA
WORKLOAD METHOD