Senate approves Department of Human Services budget
Wednesday, October 31, 2007
LANSING - The Senate today approved the Department of Human Services budget proposal for the 2008 fiscal year, said Sen. Bill Hardiman, chair of the DHS Senate Appropriations Subcommittee and sponsor of the legislation.
"The current budget crisis requires us to look at how state government operates," said Hardiman, R-Kentwood. "We had to reconstruct and reform systems in ways that would provide necessary services more efficiently and effectively. With the passage of this budget, we were able to accomplish significant reforms that will provide high quality services and save the state money."
Senate Bill 232 will reform and refocus the department by drawing upon community-based partners for foster care, adoption services and juvenile justice programs.
"Shifting more services to community-based providers will mean better services for young people," Hardiman said. "By implementing more performance contracts with private agencies, there will be more accountability built into the system and less duplication of services. We had to move forward with such changes. The money we saved can now be spent in other needed areas."
For juvenile justice services, it costs the state more than $550 a day to house each youthful offender at the W.J. Maxey Boys Training School in Whitmore Lake. In comparison, it would cost only $225 to $250 a day if the youth were dealt with through private community-based agencies.
Other budget recommendations included in SB 232 are:
* Requiring the department to transfer all of the juvenile offenders classified in medium security at Maxey to private facilities by May 1, 2008, which is a reduction of 80 beds saving more than $9 million annually;
* Increasing rates by four percent for providers of residential services for juvenile justice and abused or neglected youth, and for private agencies providing adoption services;
* Providing funding for an increase in the rate paid by the department to licensed day care providers serving DHS recipients;
* Requiring the department to implement a single daily rate for foster care services;
* Offering funding for private child placing agencies to license relatives as foster care providers with the goal of placing all children in foster care in licensed homes;
* Increasing focus on finalizing adoptions for children who have been languishing in the system by increasing the funding available to work specifically with children in foster care who have special needs;
* Protecting community based initiatives, such as the Marriage and Fatherhood initiatives, Before-and After-School initiative, Senior Food Aid programs and the Teenage Parent Counseling program;
* Improving child welfare by requiring performance measures, incentives and measurable outcomes for services to children with a focus on achieving permanency; and
* Preserving funding for child protective services to use for investigations of child abuse and neglect.
"We have emphasized the importance of improving and reforming the system all year," Hardiman said. "This is true reform that is setting new priorities by restructuring the department to better meet needs and resources."








