‘Money on the table’: One in five counties abstain from federal payback for child welfare defense

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Indiana’s counties collectively earn hundreds of thousands of dollars annually from the federal government in child welfare-related public defense reimbursements — but could earn more if all 92 chose to take part.

Receipts could grow to $1.5 million annually, and eventually beyond that, according to the Indiana Commission on Court Appointed Attorneys.

The commission gets the federal money through the Indiana Department of Child Services and delivers it to 73 participating counties. One in five counties abstain.

“That’s what I don’t understand … Why are they leaving free federal money on the table?” commission spokesman Andrew Cullen told the Capital Chronicle.

“It’s no strings attached. All you have to do is report (data) to get your reimbursement,” he added.

County officials, however, called the reporting requirements “onerous” in comments to the Capital Chronicle, and said the money might not be worth the trouble.

Others described misunderstandings related to a separate, rule-heavy reimbursement program funded by the commission.

But more counties may soon join.

Policy change further opens federal coffers

Both the U.S. and Indiana constitutions afford destitute Hoosiers accused of crimes the right to public defense.

But federal reimbursement in this case stems from revisions the U.S. Children’s Bureau made to its Child Welfare Policy Manual, according to the National Center for State Courts.

The bureau, housed under the U.S. Department of Health and Human Services, let states claim administrative costs for attorneys and support staff representing children and parents in welfare proceedings.

Those include termination of parental rights cases, and cases involving children the state alleges have been abused or neglected.

The money comes from Title IV-E. It’s the country’s largest child welfare funding stream, per the National Child Welfare Workforce Institute.

Indiana was among the first states to eye up expanded access to the funds.

“I just happened to notice it in an American Bar Association newsletter in 2019,” Cullen said.

He told commission Executive Director Derrick Mason: “He said, ‘Let’s get this started,’” Cullen recalled.

Mason said the commission took advantage of its existing connections.

It runs a state-funded program reimbursing counties for 40% of public defense services in most lawsuits; death penalty and misdemeanor cases are excluded. That 30-year-old initiative requires member counties to comply with standards — on caseloads, staffing and more — in exchange for the money.

Sixty-seven member counties already submit data quarterly for the state-funded 40% reimbursement program. Mason said that made it easier to transition them to the Title IV-E reimbursement.

Seven non-members also take part. Together, the 73 Title IV-E participants collected $880,000 in 2023 and are on track to earn more in 2024; as of June, they’ve already received about $480,000.

But nabbing more non-members — or member counties with exempted courts — has been harder, Mason said.

Data desires — and concerns

The commission says its motivation is data.

“It’s hard for us to say whether, county by county, we think that Hoosiers are being treated fairly from a public defense perspective, because we don’t have the data to make that assessment,” Cullen said.

He identified data on caseloads and compensation as examples.

Title IV-E reimbursement could be one way to fill those knowledge gaps, since it doesn’t come with the same rules as the commission’s 40% reimbursement program. Mason said counties must sign an agreement and update it biannually, then submit their data — so the commission knows how much to reimburse — quarterly.

Title IV-E typically reimburses about 10% of public defense expenses on child welfare cases, he said.

It’s a potential benefit to cash-strapped counties.

But some are leery.

Johnson County’s termination of parental rights cases are down, but its child abuse and neglect cases are up slightly, Court Administrator Shena Johnson said.

The county is aware of the Title I-VE money, but has chosen not to participate “because the system we have now works well.”

“We prefer to maintain local control and often find that reporting requirements for federal reimbursement are onerous,” Johnson added, via email.

Senior Judge Thomas Stefaniak, of the Lake County Superior Court’s Juvenile Division, said he’s “weighing whether to partake in the Title IV-E program.”

Judicial staff aren’t yet sure if the record-keeping changes required “are worth the small amount of reimbursement in light of the (seven) courts within our system,” Stefaniak wrote, by email.

The commission’s agreement with the Department of Child Services requires information from all of a county’s courts “to determine what are eligible expenses,” according to Mason.

He said that’s why judicial interest is critical to obtaining Title IV-E reimbursement.

“Sometimes you can get county commissioners excited, or the county council excited, or … the auditor sometimes comes back really excited about this program,” Mason said. “But ultimately, because you need to gather data from the courts … it requires some level of court buy-in, and that seems to be most often where it is dying.”

Mason said the commission offers incentive funding to help counties get their data reporting capabilities up to speed and sweeten the deal: $1,000 per court quarterly for the first year. The amount halves to $500 in the second year.

Intrigue grows

Interest elsewhere has been stymied by misconceptions.

Counties often believe the longstanding, state-funded 40% program and the recently available, federal Title IV-E reimbursement are the same.

Dubois County has stayed out of both. Circuit Court Judge Nathan Verkamp said county officials — himself included — understood them to be one initiative.

“I don’t know that I was aware that it was a separate program,” Verkamp said of Title IV-E reimbursement.

His county doesn’t have a dedicated public defender office. Instead, it uses contracts. Verkamp has put together a list of seven or eight attorneys willing to take cases on a rotating basis. But there’s precariously little wiggle room, he previously told the Capital Chronicle.

“Anything that would help the taxpayers in the community would be helpful,” Verkamp said. “So after we get off this (call), I will be looking into that.”

Others are further along.

Hamilton County Court Administrator Jill Acklin said that the courts “have started the work necessary” to access Title IV-E reimbursement.

Acklin said county officials have met with the commission and are engaging with internal stakeholders and those who would gather and report the data.

She didn’t know by when reimbursement could begin, or if the county would consider seeking use of the commission’s incentive funds.

But, she wrote via email, “We hope to have that process completed soon, allowing the Courts to stretch local budget resources even further, providing a stronger safety net for families and children in Hamilton County.”

Several counties have contacted the commission with inquiries since the Capital Chronicle began reporting on the program, according to Mason.

The Indiana Capital Chronicle is an independent, not-for-profit news organization that covers state government, policy and elections.

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