DFPS is requesting additional funding to address residential child care provider cost increases for staff salaries and inflation on expenses such as gasoline, food, and utilities. This exceptional item requests funding for a 3.36% rate adjustment that is based on the April 2004 forecasted Personal Consumption Expenditure (PCE) inflator. The amount of this exceptional item is calculated based on increasing the restored average daily rate for FY 2006-2007 by the inflator. This calculation assumes the funding needed to restore the net reduction to the overall average daily rate, requested in Exceptional Item 15, Restore Foster Care Rate Funding, is approved. Changes to individual rates will be determined by HHSC rate setting staff following final appropriation decisions.

Adequate funding for foster care reimbursement rates is essential to recruiting quality foster families for children that have been abused or neglected. Increasing the capacity of foster home placements provides children with additional placement options and improves the matching process for selecting families that can meet the individual needs of a particular child or sibling group.

Funding Request

FY 2006
FY 2007
Total $12,867,553 $13,728,359 $26,595,912
Number of FTEs 0.0 0.0  
Method of Financing:      
General Revenue $8,607,843 $9,183,378 $17,791,221
Federal Funds $4,259,710 $4,544,981 $8,804,691

Program Impact

FY 2006
FY 2007
Average Monthly Payment Per Child (FTE) in Paid Foster Care $1,783.98 $1,783.62

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