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State outlines timeline and safeguards for implementing tiered foster-care rate structure
Summary
CDSS detailed workstreams and timelines for the tiered rate structure, emphasizing CANS fidelity, strength-building and immediate-needs programs, training and automation tied to CWS CARES; counties and providers warned funding and implementation capacity gaps remain.
The Department of Social Services told the Assembly subcommittee it is moving to operationalize the new tiered foster-care rate structure with a two-year implementation timeline and broad stakeholder engagement, while counties and provider groups urged caution about training fidelity, funding and timing.
Angie Schwartz, deputy director at CDSS, outlined the policy goals: base funding on a child's assessed needs rather than placement type, expand strength-building activities, and create an immediate-needs program to streamline access to services. Schwartz said core guidance is planned for release by July 2026 and the department aims for rates to go live July 1, 2027.
CDSS described work groups and listening sessions—some 28 convenings involving more than 1,000 stakeholders—on topics including CANS (Child and Adolescent Needs and Strengths) fidelity, care and supervision rules for kinship caregivers, and automation needs. Schwartz said a draft Fidelity Plan for CANS will be re-released after stakeholder feedback and counties will have core guidance by July 2025 to prepare for the 2027 rate rollout.
Providers and counties raised operational concerns. Kim Lewis of Spear (a provider) emphasized the need for stable lead times, cautioning that STRTPs (short-term residential therapeutic programs) face higher costs and insurance-market pressures that threaten provider viability. Diana Boyer of the County Welfare Directors Association noted counties are already overspending state allocations for CFT/CANS work and estimated an unfunded gap of roughly $17.5 million for FY 2023–24; CWDA said the state fidelity investment request (about $1.2 million) may be insufficient.
The LAO recommended the administration provide a more-detailed implementation roadmap with milestones and stakeholder feedback points and suggested the Legislature consider provisional funding mechanisms tied to measurable readiness milestones. Chair Jackson asked LAO to work with the administration and counties to estimate the funding needed to close current county shortfalls and to track readiness for the July 2027 rollout.
