Ind. child care agencies: Cuts will hurt children
Ind. child care agencies: Cuts will hurt children
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By CHARLES WILSON
Associated Press Writer
4:06 p.m. CST, December 15, 2009
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INDIANAPOLIS - A coalition of 110 child care agencies is asking a court to stop the Indiana Department of Child Services from reducing reimbursements for foster and residential care agencies, saying the cuts are arbitrary and would harm children.
The Indiana Association of Residential Child Care Agencies Inc. filed a lawsuit seeking an injunction to stop the cuts Monday in Marion Circuit Court in Indianapolis.
The lawsuit says the state told it that rates for 2010 would be cut up to 20 percent for foster care agencies and up to 14 percent for residential care. About 80 of IARCCA's member agencies provide residential care for troubled children, while the remainder provide foster or home-based care. Member agencies serve about 4,600 children.
IARCCA said the cuts won't leave enough money for adequate care.
"Unless restrained by this court, The DCS's arbitrary reduction of reimbursement rates to providers will cause irreparable harm to the children served by the providers," the lawsuit says.
Department of Child Services spokeswoman Ann Houseworth said DCS was disappointed about the lawsuit but declined further comment on the litigation. "We will continue to focus on our first responsibility of protecting Indiana's abused and neglected children," she said Tuesday.
IARCCA Executive Director Cathleen Graham said the agencies had been negotiating a contract with the state for the past 18 months. Agencies that work with foster parents received notice of the cuts Dec. 4. Residential care agencies were first notified of cuts in October but didn't learn the full degree of the cuts until Nov. 30, she said. The contract takes effect Jan. 1.
Including a 2.8 percent rate increase that was promised and then rescinded, residential care agencies face up to 16 percent reduction in reimbursement rates, Graham said.
"We realize that this is a tough economy, and we're willing to do our part," Graham said. "But we cannot bear this kind of reduction; it will have a tremendous impact on children who are already at a disadvantage in life."
Agencies are being forced to figure out how to provide services with fewer staff, Graham said. Some already have reduced recreational activities for children and some have had to cut mentoring and tutoring programs, she said.
The state said residential care agencies must sign the contract by Dec. 14 and foster care agencies must agree to the provisions within five days of receipt or their children would be transferred to other agencies, the suit alleges.
Most agencies signed the contract, but noted their protest, Graham said.
Houseworth said there were no current plans to transfer any children.
The lawsuit also alleges that DCS violated state law by not promulgating administrative rules for the setting of rates. It asks a judge to issue an injunction restraining the DCS from cutting current rates without such rules.