STATEMENT OF THE

 

NATIONAL INDIAN CHILD WELFARE ASSOCIATION

 

 

 

PRESENTED BEFORE THE HOUSE WAYS AND MEANS SUBCOMMITTEE

 

ON HUMAN RESOURCES

 

 

Regarding

 

BUSH ADMINISTRATION FOSTER CARE FLEXIBLE FUNDING PROPOSAL

 

 

 

JUNE 11, 2003

 

 

 

 

Terry L. Cross

Executive Director


The National Indian Child Welfare Association submits this statement on the Bush Administration’s foster care flexible funding proposal.  Our statement will focus on the potential benefits for American Indian children and areas needing further clarification.  This statement will also show how not having access to Title IV-E funding in the past has hampered the ability of tribal governments to provide basic services that support permanency for their children. 

 

Summary of Recommendations

 

The National Indian Child Welfare Association is honored to have this opportunity to present our comments and recommendations before the subcommittee.  In the past, tribal governments were often not included in the debates that decided how federal funding would flow or how services would be designed, which underscores the importance of this opportunity. 

 

Our general response to the President’s flexible funding proposal as it applies to American Indian children is very positive.  This includes a $30 million reserved amount for distribution to eligible tribal governments.  For many years now, tribal governments have struggled to piece together funding to provide child welfare services in ways that are as creative and innovative as anything you will see elsewhere.  This has not been easy but has demonstrated the strong desire of tribal governments to exercise their sovereignty and right to self-governance. 

 

There are still many details that need to be worked out and clarified, and this is why it is very important for Congress and the Administration to open a dialog with tribal governments on how to develop the best possible funding proposal.  The nuances and complexities of making a child welfare program successful for American Indian children, such as integrating requirements under existing federal Indian laws with this proposal, are many, but there are many good minds and people with expertise in these areas that can help.

 

Our primary recommendations are summarized below:

 

 

American Indian Children and Title IV-E

 

Important to understanding how the Bush Administration’s proposal will impact American Indian children is the overall experience with Title IV-E for these children.  It is a story of American Indian children left behind.

 

In 1980 when the Foster Care and Adoption Assistance Act was debated and then enacted into law, Congress did not consider that thousands of American Indian children receive child welfare services through their tribal governments.  State governments were the only eligible recipients for Title IV-E funds as written into the law.  This oversight created a gap in the program where American Indian children under the jurisdiction of tribal courts could not receive Title IV-E services.  These are the same children who are found to be some of the most over represented children in the foster care system and live in communities with some of the greatest needs in the United States.  This oversight has essentially made a class of children ineligible for federal entitlement services simply because of where they live in the United States. 

 

In most tribal communities, the inability to access Title IV-E funds has meant additional hardship for tribal governments as they try to develop child welfare services that can move American Indian children towards permanency.  Recruiting, training, and maintaining an adequate pool of foster and adoptive homes has been very difficult, with many tribes having to place children in unsubsidized homes because no funding exists.  Case management, a critical element of helping children move out of crisis and into a permanent arrangement, is hampered when funding for staff positions and the training of staff is inadequate.  Data systems critical to developing information that can inform government officials and policymakers have received a boost from Title IV-E funding, but tribal governments have not shared in this.  The overall effect has been to limit progress towards improving permanency for American Indian children.

 

Addressing this disparity in recent years have been several members of the House and Senate who have signed on to legislation that would amend Title IV-E to make tribal governments eligible to receive these funds directly.  We thank the primary House co-sponsor of H.R. 443, Representative Dave Camp, for introducing this important legislation and working to seek its passage.

 

Some stopgap efforts to piece together foster care funding for tribal governments has occurred in 13 states.  Agreements between tribes and states have allowed a small portion of tribes the ability to receive Title IV-E funding for foster care services.  These agreements have given about 70 tribes access to foster care funding to support maintenance payments to foster families.  However, these agreements are often hard to develop and provide only a small portion of the overall program funding to tribes.  Agreements to provide access to the adoption assistance program or reimburse tribes for eligible administrative services are almost non-existent.  Tribal governments who want to develop agreements in many other states have not been able to because of state officials who are cautious about administrative or legal concerns.  Two studies, one conducted by the Department of Health and Human Services Office of Inspector General in 1994 entitled, “Opportunities for Administration for Children and Families to Improve Child Welfare Services and Protections for Native American Children” and one that Casey Family Programs and the National Indian Child Welfare Association conducted in 2000 entitled, “Tribal/State Title IV-E Agreements: Facilitating Tribal Access to Federal Resources” had similar findings. 

 

The Bureau of Indian Affairs offers some discretionary funding for foster care to a limited number of tribes, but this source does not support program costs and is unavailable to a large number of tribes.  It is part of an $85 million pot of funds termed "Welfare Assistance", which must also meet the other following needs of tribes nationwide:  general assistance, non-medical institutional or custodial care of disabled adults; the Tribal Work Experience program; burial expenses of deceased indigent American Indian people; and emergency assistance to prevent hardship caused by fire, flood, or other acts of nature.  To say the least, this is not a reliable source of funds for foster care and adoption assistance.  We also point out that the funding from the Bureau of Indian Affairs does not support adoption assistance services.  At the Navajo Nation, a recipient of these Bureau funds, the tribal social services program still has to place approximately 300 children a year in unsubsidized foster care.  The Navajo families that volunteer their time and homes have very modest incomes and yet are forced to use what little resources they have to support the costs of providing a foster care or adoptive placement.  This situation creates an additional risk factor for disrupted placements, beyond what state child welfare programs typically see.  As you can see, the funding picture for foster care and adoption assistance services for American Indian children is bleak and does not even begin to meet the overwhelming needs found in most tribal communities.

 

The Department of Justice reports that violent victimizations were more likely among American Indian children than any other racial group, and that between 1992 and 1995 child abuse and neglect rates increased among American Indians while declining for other groups (1999 National Report Services: Juvenile Justice Bulletin). Many of these Indian children end up in the child welfare system; tribes need the resources of the Title IV-E program to assist these children and their families.

 

The Administration’s Proposal for Title IV-E Flexible Funding and Application with American Indian Children

 

Our general response to the Administration’s proposal to provide $30 million for allocation to eligible tribal governments is supportive in that the proposal recognizes the needs of tribal governments to be included in any new development or reform of federal child welfare programs.  We also interpret this element of the Title IV-E proposal as support for the government-to-government relationship that tribal governments have with the federal government.  It is consistent with the way many DHHS and other federal funds are distributed to tribes—on a government-to-government basis that allows for local design of programs within the confines of federal law.  While there are still many details to be ironed out, this appears to be a promising beginning.  A number of the tribal governments with whom we have talked regarding this proposal are also very interested and looking forward to having the opportunity to provide their input too.

 

Our basic understanding of the proposal, at this point, is that it would be an option for states and require a five-year commitment.  Funding is also reserved for eligible tribal governments under this proposal—approximately $30 million—which would be available after an application is submitted to the Department of Health and Human Services and approved, although the process and amounts available for distribution to individual tribal governments have not yet been determined.  The process for determining who is an eligible tribal applicant has not been decided either, although conversations with the Children’s Bureau have indicated that they are looking at a number of possibilities.  We also understand that individual children will not have to meet a certain income level requirement in order to qualify for services under this proposal.  The President’s proposal also mentions providing some waiver authority to modify or waive certain requirements for tribal programs as long as the modifications do not compromise child safety or health.  Funding under this proposal will also be available for purposes authorized under Title IV-B or IV-E, which would include subsidized guardianship placements—a good option for some children for whom adoption is not realistic.   

 

Based upon the information we have received so far, we are providing a brief description of what the National Indian Child Welfare sees as the key issues, areas that need clarification, and our ideas on how to address these challenges.

 

Eligibility for tribal governments—Tribal governments, like state governments, need dependable, adequate funding for child welfare services for children under their jurisdiction.  In many situations, lack of funding has been the primary barrier for tribes as they seek to protect their children and give them a greater sense of permanency.  All tribes in the United States operate some form of child welfare service, and a great number of these currently operate foster care and adoption services.  Since the President’s proposal implies great flexibility in how the funds can be used and tribal communities have the experience and some of the greatest needs, it makes good sense to allow all tribal governments to participate in this proposal.  Basic program and reporting requirements required for all applicants will provide the Children’s Bureau with an opportunity to evaluate the suitability of this program for each applicant.  Furthermore, by increasing tribal participation in this program, the federal government will also facilitate the collection of tribal data on foster care and adoption, which is currently not available.  By not limiting eligibility to only select groups of tribes, the Administration will be making a strong statement about its commitment to improving child welfare services for all American Indian children.

 

Tribal consortia—Tribal child welfare services have been provided through consortium in many parts of the United States for over 20 years.  Tribes in states like Alaska and California, which comprise over half of all tribal governments in the United States, rely on the option to use consortium to maximize their limited funds.  Typically, the consortium designates a lead tribe that becomes the services administrator for Indian children in the identified service area.  The organization of tribal consortium in child welfare is a response to several things: 1) the need to improve service coordination, 2) the need to maximize the use of limited funding and improve access to other potential funding sources, and 3) the need to provide tribal governments with insufficient resources the opportunity to exercise their authority and responsibility to protect their children.  Allowing tribal consortia to qualify for funding under the President’s proposal will help a much greater number of Indian children who otherwise would go unserved, and, we believe, will help make the administration of the program by the Children’s Bureau easier.

 

Distribution of funds—Related to tribal eligibility will be the issue of how available funding is distributed to eligible tribes.  Because most tribes have had very limited access to federal child welfare funding, especially foster care and adoption assistance funding, it is almost impossible to know what an accurate baseline of need related to these types of services is.  Accurate caseload and program histories, especially related to use of Title IV-E funds, are not available at this time.  If the President’s proposal is enacted, our experience tells us that tribal governments will apply incrementally, with more applying each year.  At the end of five years, we could see even more tribal governments wanting to apply as increased information regarding promising practices and critical analysis of program operations becomes available.  These issues underline the need for tribes to have the same options as states to choose between the existing IV-E program and the President’s flexible funding option and for a periodic system to review the adequacy of tribal funding under this proposal.  This review may trigger the adjustment of the reserved funds for tribal governments, based upon factors such as need and inflation and also be equitable with any mechanism that provides adjustments for state allocations.

 

An approach to ensuring adequate tribal participation and benefits for American Indian children would be to allow redistribution of any unspent funds in a given fiscal year.  This is consistent with how other similar federal funding for tribal governments is distributed (Title IV-B, Subpart 2) and can be accomplished through the use of supplemental or contingency budgets submitted by tribal governments.  The Secretary could review supplemental applications and assess them for their merit and feasibility. 

 

Waiver authority—Research regarding tribal child welfare programs demonstrates that culturally defined services are much more likely to succeed with Indian children and families, and this is an area where waivers may be appropriate.  Another reason for allowing waiver authority is the economy of scale of applying requirements designed for larger programs that are not feasible for smaller programs.  The ability of federal programs to allow flexibility in program requirements is a positive development, and, used wisely, will help reduce the flow of children into the child welfare system and produce better outcomes for those who are involved. 

 

Service area—Under the TANF program and other federal programs, tribes define their service area and the American Indian population being served.  This is important because of the differences in available tribal resources, working relationships with state and county governments, and jurisdictional variances.  When tribal governments have this option, they will often use it to provide services to more than just members of their tribe.  They may provide the services to Indian people from other tribes living within their reservation or service area.  This can help alleviate the burden state and county agencies often feel and provide more accessible and/or culturally designed services.  New and emerging partnerships can also develop as tribal and state agencies work to map out a service delivery plan that meets everyone’s needs.

 

Matching funds—Proposing a significant match or maintenance of effort requirement for tribes could become an impediment to tribal participation.  The majority of tribal communities continue to be economically disadvantaged.  In many cases, their only source of revenue for government services will come from Bureau of Indian Affairs or Indian Health Services funds, which are restricted to specific activities.  Because tribal communities often have such high rates of poverty and unemployment, tribal governments have very few options when it comes to raising general, unrestricted revenue.  As a result, a number of federal programs have reduced match requirements that apply to tribal governments and/or provide them with the opportunity to use other federal or state funds as match (e.g. TANF, Title IV-B and Child Care Block Grant).  This can be done without supplanting tribal funding or significantly reducing maintenance of effort.  We strongly recommend flexibility with regard to any required tribal match rates.

 

We note that, according to the 2000 Census, the poverty rate for the large federal reservations is 40.3%; the unemployment rate for the same set of large reservations is 22.8%.   Several reservations have poverty rates of over 50% with unofficial employment rates exceeding 30%.

 

Technical assistance—While the National Indian Child Welfare Association, through our partnerships with four of the National Resource Centers in Child Welfare, has been able to provide technical assistance to many tribes that are planning for or operating foster care and adoption assistance services, we consistently have to turn away tribal governments who request technical assistance.  We can also see an increased demand for technical assistance from tribal governments once this proposal is enacted.  To ensure that critical information and assistance is available to further the program’s goals, it would be worthwhile to establish technical assistance resources for tribes interested in child welfare services.  This could be approached in several ways, but the overall goal would be to improve access to the knowledge base in practice and policy. 

 

Conclusion

 

We greatly appreciate the opportunity to appear before you today to share our thoughts and ideas regarding the President’s proposal for flexible foster care funding.  As we said earlier, both our organization and the tribal governments that we have talked with are very interested in this proposal in combination with amending the Title IV-E law to allow tribal governments, like state governments, to administer the current Title IV-E program.  I think it is fair to say that all of us are looking to improve the way in which children and families receive services in the child welfare system.  We want to avoid the mistakes of the past, take advantage of the opportunities before us now, and create a world where all children can receive the services they need.  The National Indian Child Welfare Association feels strongly about this, as we are sure you do, and is hopeful that this will be the Congress that will make this vision a reality.