Georgia’s Child Caring Institutions

FY 2014 Budget Request

Georgia’s Child Caring Institutions (CCIs):

  • Consist of more than 180 privately licensed providers that deliver full-time room, board and watchful oversight to six or more children up to 18 years of age in out of home care;
  • Care for more than 2000 of Georgia’s most vulnerable foster children;
  • Provide significant behavioral health services to these typically older youth because a more structured, therapeutic environment is necessary; and
  • Treat youth who are two or more years behind educationally, with most of them having at least one mental health diagnosis.

Tremendous Challenges facing Georgia’s CCIs:

  • Since FY 2003, CCIs have seen a substantial increase in government regulations. While new accountability has improved service delivery, new requirements under the federally required Child & Family Services Reviews, lawsuits like Kenny A. v. Georgia, and Performance Based Contracting by Georgia’s DHS result in unfunded mandates placing significant financial burdens on providers. For example, a new requirement of 160 hours of training for certain staff positions in residential programs will cost $3500 per staffer to meet staff to child ratios.
  • CCI reimbursement rates have not been adjusted since FY 2003. FY 2012 cost reports indicate most CCIs are being reimbursed less than 75% of their costs of providing care.
  • Private charitable fundraising generated by these non-profit providers is used by DFCS in their Maintenance of Effort (MOE) federal requirement as a match by the State to draw down more federal funds, but none of that additional draw down ever goes back to the providers.

Based on these difficulties, all of Georgia’s Child Caring Institutions are currently operating an UNSUSTAINABLE BUSINESS MODEL.

What the Future Holds for CCIs:

  • Since 2002 more than 200 licensed Georgia providers serving youth in out-of-home care have been “delicensed” or closed.
  • These closures are the result of:

Increased government regulations;

Increased costs;

Stagnate reimbursement rates; and

Increasingly demanding troubled youth.

Our FY 2014 Budget Request:

  • The average CCI is currently experiencing annual shortfalls in excess of 25%.
  • We request a per diem rate reimbursement adjustment of 10% for FY 2014.
  • We will also pursue two subsequent fiscal year adjustment in FY 15 and FY 16 to align the State of Georgia’s reimbursement rate with our costs.

Georgia Child Caring Institution Coalition

CHRISKids, Atlanta

Devereux, Kennesaw

Georgia Association of Homes & Services for Children

Goshen Valley Ranch, Waleska

KidsPeace, Bowden

Murphy Harpst, Cedartown

Twin Cedars, Columbus & LaGrange

Youth Villages, Douglasville & Atlanta