Federal judge in California blocks payment cuts to foster homes for at-risk children

From KTVU:

SAN FRANCISCO -- A federal judge in San Francisco issued a preliminary injunction Nov. 13 blocking a planned 10 percent cut in state payments to group homes for foster children.

The injunction by U.S. District Judge Marilyn Patel will remain in effect either until a not-yet-scheduled trial or unless lawyers for the state win an appeal.

The reduction in payments to homes serving about 7,500 California children was one of a series of social services cuts enacted by the Legislature in July in response to the state's budget crisis.

Patel said, "I know the state is in serious straits," but said she was concerned about possible "irreparable injury beyond repair" to the at-risk children in the group homes.

If there is no injunction in place while the case is pending, the judge said, "There are things that will have happened that will have a deleterious effect on children who are supposed to be protected and that can't be undone."

Most children in the homes are placed there under court protection because they were abused or neglected or are on probation from juvenile offenses.

The cut was challenged in a lawsuit filed in September by the Sacramento-based California Alliance of Child and Family Services, which represents 87 group homes serving up to 3,720 children.

The group claims the reduction would violate the U.S. Child Welfare Act, which requires states to make adequate payments for basic necessities such as food, clothing, shelter and supervision as a condition of receiving federal funding for foster care.

Alliance Executive Director Carroll Schroeder said after the hearing, "We're pleased that the judge understood the impact on children. The cuts would be devastating."

Deputy California Attorney General George Prince said during the hearing that the state is considering an appeal.

California Department of Social Services spokeswoman Lizelda Lopez said, "We will continue to defend these necessary reductions as approved by the Legislature and signed by the governor."

The alliance says the planned cut, combined with previous cuts and a lack of cost-of-living increases in 14 of the past 19 years, would bring group home funding to 68 percent of its value in 1991.

Schroeder said the new reduction would save the state $25 million in the next nine months.

But he said the total loss of state, federal and county funding for the homes would be between $60 million and $70 million. He said the reason is that the reduction is in the rate of reimbursement per child, and federal and county matching funds would therefore also be reduced.

The injunction continues a temporary restraining order issued by Patel on Nov. 4.