Children's services levy midterm review: rising placement costs shrink projected balance; TLRC urges full review

Hamilton County officials and the Tax Levy Review Committee (TLRC) told commissioners on April 1 that rising placement costs for children in custody have eroded the county's projected levy balance and that consultants should be engaged now to conduct a full review ahead of the 2026 levy cycle.

Michael Patton, director of Job & Family Services (JFS), said staffing vacancies have improved but the cost of care for children in custody has grown significantly. "The cost of children in, care in the custody of job and family services...there was a significant cost associated with caring for children that we have in our custody," Patton said. He cited both higher provider per‑diems and increasing numbers of children with acute behavioral needs who require specialized placements.

Patton and his team presented several data points the TLRC and commissioners flagged as consequential for the levy outlook:

- Children's Services Levy: current five‑year levy term 2022–2026; roughly $81,000,000 per year in property tax levy revenue (presenter-provided figure). - Placement and related costs spent in 2024: $72,000,000 (up from $62,000,000 the prior year). - Per‑diem increases across levels of care (presenter figures): foster care up 51%; group-home care up 136%; independent living up 181%; residential treatment up 75%; overall average near 100% increase across some categories. - Consultant projection (PCG) vs. current projection: PCG's prior projection through 2026 showed a levy balance of about $24,800,000; current county projections based on recent spending place the balance near $2,000,851 if trends continue.

TLRC recommendation and reasoning

Dr. Jenny O'Donnell, chair of the TLRC subcommittee on children's services, said the committee was impressed with JFS's operational changes but recommended an immediate, full consultant review of the levy. "Our TLRC recommendation is very brief this year...What we're asking for is initiation of the full review process immediately," O'Donnell said. She and TLRC members stressed that children's services are mandated and that unmanaged rising costs could force the county to shift expenses to the general fund or cut non‑mandated services.

Staffing and caseloads

Patton reported progress on hiring and reduced vacancy projections in assessment, intake and ongoing teams and showed projected vacancy reductions through May 2025 if incoming staff remain in position and complete training. He also presented caseload figures showing a trend down from assessment averages near 39 cases (July prior year) toward lower levels as new staff complete training; the Council on Accreditation benchmark cited for assessment caseloads was 12.

Next steps requested by TLRC and commissioners

The TLRC asked the county to launch a full consultant review in summer 2025 and to extend the TLRC timeline so consultants can analyze national, state and local drivers before the 2026 ballot. Commissioners agreed they preferred starting the consultant process sooner rather than later; staff said a consultant contract could be pursued this summer with a goal of TLRC and public review in early 2026 and final commissioner consideration in spring 2026.

Votes at a glance

- Motion to adjourn: "I'm gonna make a motion to adjourn." Mover recorded in transcript: Commissioner Denise Treehouse. Second: not specified in transcript. Voice votes recorded as "Yes" by commissioners present; tally recorded in the meeting as yes: 3, no: 0, outcome: approved.

Ending

Commissioners directed staff to proceed with TLRC and consultant planning and to provide additional data on mandated vs. nonmandated levy expenditures, vendor network changes, and quarterly budget-to-actual updates so the board can monitor trends before the 2026 levy decision.