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DHS Settlement In The Works

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MIRS, April 9, 2008

A lawsuit filed by the Children's Rights advocacy organization against Michigan's foster care system could cost the state $400 million per year, new Department of Human Services (DHS) Director Ismael AHMED said today.

But talks aimed at reaching an out-of-court settlement with the New York group are "going very well," Ahmed said. Speaking with reporters after an appearance before the House Family and Children's Services Committee today, Ahmed reported the two sides are "talking regularly and with a good deal of energy."

And while he cannot discuss the specifics of ongoing litigation, he says, "I think it's a good possibility" the talks will produce an agreement on new standards affecting foster care children.

Ahmed's comments almost a year to the date former DHS Director Marianne UDOW said the cash-strapped state didn't have the money to settle with Children's Rights, taking the position that the department was taking its chances in court (See "DHS Can't Continue With Settlement," 4/11/07).

With the Fiscal Year (FY) 2007 and 2008 budget messes behind the state, DHS is looking to cut a deal that would save it hundreds of millions of dollars it is expecting to be forced to pay as a result of a suit that claims Michigan severely underfunded its child welfare programs for years.

Ahmed said today he is concerned that because of the legal suit against the state, "there is a great deal of exposure in terms of dollars and cents." He's worried that the courts might eventually take control of the system and he contends neither side wants that to happen.

The DHS director inherited this lawsuit and said, "The state is doing the best job it can with the conditions that it has." Those conditions include the state's shaky economy, the workload of caseworkers and the shortage of Child Protective Service (CPS) employees.

"I don't want to throw all the people who are doing the hard work under the bus," he said, explaining the department needs more funding to keep kids safe.

"We can improve," he added.

Rep. John STAHL (R-North Branch) commented that Ahmed had picked up a "lot of baggage."

"I appreciate that you're not trying to dodge it," Stahl said.

"It's our baggage now," Ahmed replied.

Right now, Michigan's staff-to-child ratio for foster care is 35 to 1 for the public system and 40 to 1 for private providers (60 percent of Michigan's system is privatized). The national standard is 12 to 1.

Ahmed said DHS is working on standards that will bring Michigan in line with a 15 to 1 ratio. That's part of the department's larger plan to reform how it provides services. Ahmed said DHS was looking at a four-year timeframe for the overhaul, but a lot depends on the lawsuit.

He said there's "broad disagreement" about privatization with people having "religious belief for one side or the other." But he said it's more important to be driven by outcomes.

In the debate over foster care, both sides have been "played off against each other," Ahmed said.

The department will announce in two weeks a new task force, composed of legislators, public and private providers, universities, parents and children. The goal would be to find best practices. The results would be published in a report in about a year, Ahmed said.

When asked if the issue has been "task forced to death," he said, "No, actually not."

Ahmed noted there has not been a "universal agreement" among all the players on "what the outcomes should be" for these new policies.

Ahmed said he'd return with the final report of the Children's Rights case.

 

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