MONDAY REPORT

June 25, 2001

SPECIAL NOTE:  Copyright 2001. The Monday Report is produced each week as a benefit to the member agencies of the Child Care Association. Please protect this membership benefit - DO NOT copy and distribute this report to agencies/staff that are not members of CCA. Thank you for your cooperation.

ATTENTION! The Monday Report Password will be changing July 9^th.  E-mail was sent out June 25^th to confirm membership to CCA.  Please reply to this e-mail so that the new password can be sent to you via electronic mail.  If you did not get this e-mail notification, please e-mail Rommel Sangalang at [email protected] to request being placed in the e-mail password distribution list or call him at 217-528-4409.  Thank you.

=============================================================================

MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES

==============================================================================

DHS SUMMARY OF BUDGET THAT PASSED

As passed by the General Assembly, HB 3440 provides for a grand total of $5,007,516,900 for FY 2002 for the Department of Human Services.  The General Revenue Funds portion of the request totals $3,802, 542,000.  This is an increase of $56,286,100 over FY 2001 spending.  As was reported in prior Monday Reports the Teen REACH line showed a slight increase and Project Success was restored as a separate line to $3.8 million.  Other changes to the introduced budget request were as follows.

1. The budget includes $11.8 million for a two percent fourth quarter Cost of Living Adjustment.
2. Funding for CILAs is adjusted.  By phasing new development, the department may grow by another fifty CILAs, for a total of 150 new CILAs added during FY02.
3. The Workforce Advantage project is increased from $3 million to $3.5 million.
4. An additional $1.5 million is added to services for immigrants, bringing the total funding to $2.5 million.
5. Funding for Prenatal Performance rises by an additional $500 thousand, for total program of $2.5 million.
6. $150 thousand is added for program expansion in Parents Too Soon, bringing the FY02 total to $7.3 million.
7. The Governor�s $1 million recommendation for Great Start is doubled to $2 million, permitting benefits to another 2,000 clients.
8. Funding for Healthy Families increases $850 thousand over introduced levels.  Total funding reached $9.7 million.
9. A $250 thousand Tobacco Settlement Fund increase is provided for Children�s Health programs, for a total of $2 million in FY 02.
10.  In addition $2.35 million is added for specific projects.

Fiscal Year 2002 highlights that were reported in prior material regarding the proposed budget included: direct care worker wage increase of $1.00 an hour; $2 million increase for mental health services for juveniles in detention centers; early intervention funding rises to reflect $71.5 million in GRF and in $16 million in federal funds; child care rises by 4.2%; home services rise by $ 30 million; and the TANF population continued to decline.  The DHS appropriation bill also included supplemental appropriations for FY01 for early intervention services, $1.00 per hour wage increase, increase WIC appropriation authority and increase in the Mental Health Block Grant appropriation authority.  (JMS)

==============================================================================SPECIAL EDUCATION

==============================================================================

ILLINOIS PURCHASED CARE REVIEW BOARD STALLED ON RATE METHODOLOGY

The Illinois Purchased Care Review Board still has not reached compromise with the private schools regarding the use of �enrollment� or �capacity� as the divisor in the rate-setting methodology.  At its June meeting, the IPCRB proposed alternative language that still allows the Board discretion as to the use of �capacity� in rate-setting.  Members of the private sector who attended the meeting opposed the proposed rule language.  Jack Shook, the Illinois State Board of Education�s representative to the IPCRB indicated that there is agreement that there needs to be some �mechanism� to compensate for significant variances in nonpublic school �enrollment.�  CCA and several of its members will work on identifying several options this week.  If you are interested in participating, or if your school program is one that has significant enrollment variations from year-to-year, please contact Bridget Helmholz (BRH).

=============================================================================

GENERAL

=============================================================================

RATE METHODOLOGY UPDATE

We reported to members in a fax of June 21 that the Rate Methodology would not be used for FY�02 for DCFS programs.  Rates are frozen at the FY �01 levels.  The Bureau of the Budget apparently issued this directive. 

Institution, group home and ILA contracts will go out using the current FY�01 rates. As we have previously reported, Specialized and Treatment Foster Care contracts are due to be standardized by January, 2002, so those rates were already due to remain at current levels until standardized contract program plans and rates were determined. Contracts were being prepared for release by DCFS as of yesterday.

We are concerned about the impact of this decision on the financing system for child welfare.  The disruption of the rate methodology system prevents our high-end service rates from actually reflecting true costs.

CWAC Chair and Finance and Administration Chair along with CCAI met with DCFS Director Jess McDonald on June 22. He reported that the department was surprised with the BOB directive.  DCFS had planned to pursue the rate calculations according to the Rule 356 and is still supportive of the system outlined in the rule. DCFS had to follow the directive of the Bureau, which is a part of the Governor�s office.

We are trying to obtain an explanation and rationale from the Governor�s Office and Bureau of the Budget. The �freezing� of rates constitutes a violation of the existing rule. In fact, the writing of the contracts with rates that do not reflect the methodology also constitutes a violation of the rule. We may need CCAI members to work with us through the Joint Committee on Administrative Rules (JCAR). We have already alerted JCAR to our concern.

There may also need to be a campaign of working with legislators on this issue. When your agency receives the contracts at the old rate, you may want to call legislators with whom you have a working relationship and express your frustration with the fact that the contract rates were not set according the rule.  Remember that although we believe the rate methodology provides the fairest system of financing high-end services, the rate methodology is based on costs. In the application of the methodology, some programs will actually get a decreased rate because of the costs reflected, while others receive an increase.  Agencies may want to review with your finance staff how your agency�s rate would have fared within the methodology.

We will keep agencies advised of further information and developments. We are attaching a position statement on the rate methodology, for your reference. (Thanks to Arlene Happach, of the Children�s Home Association of Peoria for her leadership in this.) Please call with any questions. (MB)

Child Care Association of Illinois

Position Paper

Rate Methodology

Background

The Department has used Rule 356 for setting reimbursement rates for institutional and group home care since 1981.  This rule details the Department�s requirements for determining purchased care rate reimbursement based on reasonable and allowable costs.  The rate methodology outlines reasonable cost standards, cost reporting requirements, non-allowable costs and appeals processes.

In the mid-1990�s, the Department did not use the rate methodology to set reimbursement rates for several years, instead applying an across-the-board COLA to existing rates.  In 1999, the Department decided to return to using the methodology outlined in Rule 356 for setting fiscal year 2000 rates.  The rule was amended to accommodate some of the problems that arose from the return to rate setting.  Rule 356 was used again in fiscal year 2001. 

Problem

The Department has indicated that it does not intend to use Rule 356 to set rates for fiscal year 2002.  The Child Welfare Advisory Committee and the Child Care Association of Illinois object to this for the following reasons:

�       There is no financial reason for the Department to not use the rate methodology.  Preliminary runs indicate that programs which would receive a rate increase would be offset by those programs receiving a rate decrease.

�       Not using Rule 356 will result in some programs being reimbursed at a rate higher than their costs, while other programs will fail to cover the cost of providing care.

�       The rate methodology works best when it is applied each year.  Last time the Department returned to the methodology after several years of not using it, there were significant discrepancies in rates and costs which required a rule change to hold some programs harmless against large rate declines.

�       A joint public-private committee spent a year looking at alternatives for rate setting and agreed that the current methodology provided the best means of purchased services for the children of Illinois.

�       Agencies were assured that the return to the rate methodology in 1999 was permanent, and they planned their budgets around it.  They were not informed until well after fiscal year 2002 budgets were set and approved by most boards of directors.

Resolution

The Child Welfare Advisory Committee and the Child Care Association of Illinois recommend and support the continued use of Rule 356.  We are willing to work with providers that may experience decreased rates in order to help them understand the relationship between historical costs and budgeted expense.  We are willing to work with the Department to help them in utilization management of institutional care.  We are committed to ongoing quality improvement in our facilities and in the care of Illinois� most troubled youth.

UPDATE ON DCFS TRAINING FUNDS

Contracts for the training funds should have been received by qualifying agencies during the last week. These contracts must be signed and returned to the department immediately. We are facing the end of the fiscal year, so these must be received for processing by June 30.  Questions about the training contracts should be directed to Diane Yost at 312- 328-2828. (MB)

TRIBUTE TO RON MOORMAN

Tributes to Ron Moorman�s long career of child advocacy in Illinois can be found on both the CCA website at http://www.cca-il.org and the DCFS website at http://www.state.il.us/dcfs. Take a moment to check them out! (LL)

PUBLIC RELATIONS INFORMATION AND IDEA EXCHANGE

CCA offers an e-mail advisory list for public relations professionals and other personnel within member agencies that function in a public relations capacity. The Association will also be offering additional opportunities to exchange information and ideas and share your successes and challenges. To join your colleagues at CCA in these efforts, please e-mail Linda Lenzini at the Child Care Association at [email protected], or call the CCA offices at 217-528-4409.

NOW AVAILABLE: �HOW TO GET INTO THE NEWSPAPERS WITHOUT COMMITTING A CRIME� This handbook, prepared by the Illinois Press Association, is available to CCA member agencies upon request through a permission to reprint agreement with the Press Association. The handbook is ideal not only for communications professionals, but for educating staff, Boards of Directors, and volunteers. To obtain your copy, contact Linda Lenzini at CCA at [email protected] or by calling 217-528-4409. 

KNOW YOUR LOCAL PRESS

Names, titles, and contact phone numbers of your agency�s local media outlets are available for the asking from CCA. Contact Linda Lenzini at the Child Care Association at [email protected], or call the CCA offices at 216-528-4409.

PUBLIC RELATIONS AND DEVELOPMENT PROFESSIONALS: CALL FOR PAPERS OPPORTUNITY

The National Child Care Development Association is made up of professionals who work in development, public relations and marketing in agencies that serve children with specialized needs. The association, first founded in 1989 through the encouragement and support of Lloyd Wagnon, who is currently working with a number of CCA members on development issues, will hold its 2002 Conference March 13^th � 15^th, 2002, In Chicago and is currently calling for papers. The particular area of focus is in the applications of public relations, marketing and development concepts or specialized supports for these functions in a child welfare setting.

For more information, contact Linda Lenzini at CCA at [email protected]., or Debbie Reed at Chaddock at [email protected]. 

SUCCESS STORIES: SHARE YOURS WITH THE MEDIA

Need assistance with media contacts, pitch letters, and other efforts to reach the media in your area? Contact CCA for assistance via phone at 217-528-4409 or e-mail Linda Lenzini at [email protected]

COMING SOON: COMMUNICATIONS/PR LINKS ON THE CCA WEBSITE

Watch next week for next links of interest to communications professionals. If you have a particular site, please send the URL to [email protected].

TAKE YOUR AGENCY�S PR TEMPERATURE WITH THE CCA COMMUNICATIONS SURVEY

CCA has a number of services available for public relations professionals, and is currently analyzing membership needs and interest in the area of public relations. Take advantage of this opportunity to contribute ideas by filling out the CCA Public Relations Survey. You can request this survey by e-mailing [email protected], and receiving your choice of an e-mail attachment or fax copy. The first three participants to obtain and return their survey prior to July 1 will receive a CCA coffee mug filled with chocolates for their effort.

==============================================================================

UPCOMING EVENTS/MEETINGS

==============================================================================

CEO AND BOARD RETREAT

Executive Directors are asked to save the date of July 19 for a special retreat with the CCAI board at Stoney Creek Inn in Peoria. This will be an opportunity to exchange views on the future directions of CCAI, brainstorm on the current critical challenges facing member agencies and the association and arrive at some mutual agreement on our work plans for the year ahead. Board members will meet the following day on July 20 to discuss and develop the board work plan in relation to the challenges outlined on July 19. The program and registration form was mailed to you last week.  If you need to make an overnight reservation, please call Stoney Creek Inn at 309.694-1300.  Tell them you are attending the Child Care Association meeting to get the CCA rate of $72.00.  Please make your reservation by June 27^th.  (MB)

JUVENILE JUSTICE CONFERENCE

Save the dates of July 11 and 12 for the CCA co-sponsored conference on Juvenile Justice, �New Partnerships for Juvenile Justice-Implementing Balanced and Restorative Justice in Illinois,� at the Holiday Inn Matteson.

The conference will include a plenary session by national expert, Dennis Maloney on National Perspectives and Challenges for Illinois, presentation on developing a comprehensive juvenile justice policy from Cook County State�s Attorney�s representatives and a number of workshops highlighting current innovative programs using the balanced and restorative justice principles. In the works are commitments from other national presenters on federal funding streams and new initiatives. There will also be a panel exchange on development across disciplines of future policy initiatives. This conference will provide a unique opportunity for CCA members to network with key players in the legal system and policy community as we move towards intensifying our interests and advocacy around juvenile justice concerns.  The information for this training is on the CCA Website and the brochure is in the mail.  Please register soon if you plan to attend.  (MB)

Calendar:

June 26 � DD Contracts Committee - Springfield

June 28 � Ron Moorman�s Retirement Dinner Celebration, 6:00 p.m., Holiday Inn Select, Naperville

July 10 � CWAC SACWIS Advisory Committee - Springfield

July 11-12 - NEW PARTNERSHIPS FOR JUVENILE JUSTICE--IMPLEMENTING BALANCED AND

RESTORATIVE JUSTICE IN ILLINOIS, Holiday Inn Matteson

July 19-20 � CCA Membership / Board Retreat, Stoney Creek Inn, East Peoria

July 25-27 � SUSTAINING KINSHIP TIES: PERMANENCY AND BEYOND--The third national kinship care conference, sponsored by the Child Welfare League of America, will be held July 25-27, 2001 at the Chicago Hilton and Towers. For more information contact the Child Welfare League at (202) 638-2952.

Aug. 23-24 - Uhlich Children's Home presents "Building Skills for a Brighter Future"-- For further information please contact: Dee Ann Flynn at (773) 588-0180, X1275 or via email at [email protected]

Aug. 27-28 - THERAPEUTIC CRISIS INTERVENTION UPDATE TRAINING�Cunningham Children�s Home, Urbana