Colorado Legislative Council Staff

STATE

REVISED FISCAL NOTE

(replaces Fiscal Note dated January 31, 1998)

Cash Funds Exempt Expenditure Impact

TITLE:            CONCERNING PILOT SITES FOR PERFORMANCE CONTRACTING IN CHILD WELFARE.

Summary of Legislation

            The bill authorizes the establishment of three additional pilot sites for delivering child welfare services through performance contracts during state FY 1998-99. The Department of Human Services (DHS) is required to start negotiations, no later than June 30, 1999, with any county interested in delivering child welfare services pursuant to a performance contract in state FY 1999-00 and thereafter. Additionally, the pilot program is repealed July 1, 2002. The bill is effective upon signature of the Governor.

            As Amended. The bill authorizes DHS to contract for an external evaluation of the performance contracts, and to complete a progress report on the evaluation no later than July 1, 2000. DHS, with input from the counties, is required to develop recommendations for statewide implementation of system reforms for the delivery of child welfare services no later than December 1, 2000. These recommendations are to be submitted to the General Assembly and the Chief Justice of the Supreme Court. The bill includes an appropriation of $250,000 from the Family Issues Cash Fund to DHS, effective July 1, 1998.

            Background. SB 97-218, Concerning Publicly Funded Services for Children, authorized DHS to develop pilot programs in up to three counties or groups of counties for the delivery of child welfare services through performance contracts. Projects have been implemented in Boulder, Jefferson, and Mesa counties. SB 97-218 also required the development of an allocation formula of moneys for child welfare services. For FY 1997-98, the total amount of moneys in the “allocation pot” for child welfare services is $214,789,463, and comes from several line item groupings in the FY 1997-98 Long Bill. All counties receive moneys for child welfare services out of this allocation pot, including the three pilot programs.

            DHS indicates that the expansion of three additional pilot sites seeking to provide child welfare services through performance contracts will not require additional resources. Pilot and nonpilot counties will receive funding for child welfare through the amount annually appropriated under the allocation formula. DHS indicates that as the number of pilot sites increases, fiscal and reporting functions required for statewide implementation will be performed by the Statewide Automated Child Welfare Information System.

            Evaluation. DHS indicates a need for $250,000 to conduct an evaluation of the six pilots (approximately $42,000 per pilot site). This amount is based, in part, on similar evaluations being conducted in other states on similar projects. The evaluation will examine the extent to which outcomes are being achieved within allocated funds, the ability of the pilots to provide needed services while at the same time control their costs.

Spending Authority

            The fiscal note indicates that the Department of Human Services should receive an appropriation of $250,000 for FY 1998-99. The bill includes an appropriation clause for $250,000 from the Family Issues Cash Fund.

Departments Contacted

            Human Services