TITLE: CONCERNING THE CIRCUMVENTION OF DEPENDENCY AND NEGLECT ACTION REQUIREMENTS FOR THE PROVISION OF MENTAL HEALTH SERVICES TO CHILDREN AT RISK OF OUT-OF-HOME PLACEMENT, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund	$1,377,900	$2,755,800
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor. Program to be implemented no later than January 1, 2000.
Appropriation Summary for FY 1999-2000: Department of Human Services — $1,377,900 General Fund
Local Government Impact: None

The bill, as amended by the Senate HEWI Committee, April 22, 1999, creates the "Short-Term Out-of-Home and Family Preservation Treatment Act". The fiscal note is limited to discussion of those provisions of the bill which create a fiscal impact:

• directs the Department of Human Services (DHS) to establish a short-term out-of-home placement and family preservation treatment program for the purpose of providing mental health services, short-term out-of-home placement services, and family preservation treatment services to eligible children who are at risk of out-of-home placement and meet the criteria established by the State Board of Human Services;

• as amended, requires that short-term out-of-home placement not exceed two times annually for a maximum of 5 consecutive days of out-of-home placement each time, and that family preservation treatment services not exceed two times annually for a maximum of 30 consecutive days each time;

• pursuant to rules of the State Board, requires the department to allocate to the governing body of each county or city and county or groups of governing bodies the moneys appropriated for the implementation of the act;

• requires the governing body of each county or city and county or groups of governing bodies to contract with appropriate services providers in the community for the provision of mental health services and family preservation treatment services; and

• as amended, requires that a child meet criteria in order to be eligible for services and that the child be at least 10 years or age but less than 16 years of age.

The bill will require new funding in DHS to provide services through the "Short-Term Out-of-Home and Family Preservation Treatment Act" because it creates a program for children who are not served under current law. The program, newly created in SB 99-23, will provide services to children who are neither diagnosed with a mental illness nor the subject of either a dependency and neglect or delinquency action. These children are not Medicaid-eligible and do not qualify for services under current funding; new resources will be required. Additionally, the program will not qualify for federal funds, General Fund support will be needed.

Currently there are an estimated 340,000 children ages 10 through 15 in Colorado. The Department of Human Services has no information upon which to make a reliable estimate of the number of additional children who might be served under yet to be established eligibility criteria. For the purpose of the fiscal note, it is assumed that rules promulgated will limit the population to between 800 and 1,600 children. Of the children currently receiving Child Welfare services, approximately 20 percent receive placement services. Therefore, of the 800 - 1,600 children identified as eligible under the bill, between 150 - 300 will require residential placement services. Cost of care is estimated accordingly:

Because the bill provides that family preservation treatment services and short-term out-of-home placement can be offered twice annually, the costs identified in the note assume that each child eligible for services will receive services twice annually. Family preservation treatment services includes screening, assessment, case management and services; the average length of treatment is 30 days at a cost of $804 for the length of treatment. Short-term out-of-home placement can be placement in shelter care, family foster care, a residential child care facility, or a residential treatment center; the cost of $61/day is based on the combined average cost of the four types of residential placement.

Low Range
# of Children	Treatment Service	Cost per Child	Total
800	Family Preservation	$804 per Child	$ 643,200
150	Residential Care	$61 per Child per Day	45,750
Subtotal			$ 688,950
TOTAL - Treatment/Service Package x Twice Annually			$1,377,900
High Range
1,600	Family Preservation	$804 per Child	$ 1,286,400
300	Residential Care	$61 per Child per Day	91,500
Subtotal			$1,377,900
TOTAL - Treatment/Service Package x Twice Annually			$2,755,800

The calculations are a minimal estimate (both high and low) of what costs might be to serve children statewide since that number cannot be quantified at this time. The identification of a high range does not mean maximum costs incurred. The fiscal note assumes that if enacted, any required increases or decreases in funding, in either FY 1999-00 or FY 2000-01, will be addressed through the budget process.

NOTE: Because the bill requires implementation of the program no later than January 1, 2000, costs for FY 1999-00 are estimated at $1,377,900 — or half of the high range estimated costs of $2,755,800.

The fiscal note assumes that the Department of Human Services should receive a General Fund appropriation of $1,377,900 for FY 1999-00. The bill includes a General Fund appropriation of $1,857,000 to the Department of Human Services.