The potential effects of welfare reform on states' financing of child welfare services

• Published in: Children and youth services review 1999-09, Vol.21 (9), p.865-880
• Main Authors: Geen, Rob, Boots, Shelley Waters
• Format: Article
• Language: English
• Subjects: Child welfare; Child Welfare Services; Financial Support; Government Spending; Influences; Policy Implementation; Public finance; States (Political Subdivisions); United States of America; USA; Welfare Policy; Welfare Reform
• ISSN: 0190-7409; 1873-7765
• DOI: 10.1016/S0190-7409(99)00057-2

Welfare reform and related changes have the potential to significantly affect states' financing of child welfare services both directly and indirectly. While the actual effects of these changes are not yet known, there have been no baseline data on states financing practices upon which to measure change. This article seeks to fill this data gap, reporting the results of a survey that collected information from state child welfare administrators on the amount states spend on child welfare services, the sources of these funds, and the amount expended on different types of services. Total spending in State Fiscal Year 1996 exceeded $14.4 billion. The majority of both federal and state child welfare funds supported children in out-of-home care. States relied heavily on federal Medicaid, Emergency Assistance, and Social Services Block Grant funds to pay for child welfare services though states were found to vary significantly in their financing practices. Implications of these findings for welfare reform implementation are discussed.