The change would give foster families less money to pay for food and clothing and other costs. And some fear that fewer families could volunteer for the job in the future because they'd have to cover the bills themselves.
Foster parents who provide homes for special-needs children are paid up to $100 a day. Under the state's new plan, many would receive $25 or less.
Twenty-five bucks a day — it's not a lot," said foster parent Terry Blackburn, of Brownsburg, Ind., who has fostered more than 100 children with his wife, Ruth. "If you go buy a pair of shoes and a pair of pants for the kid, you've already spent your $25."
The changes, made quietly without public attention, come as officials are attempting to cut $56 million from the cost of providing for the more than 10,000 children who are in the state's care because they could not remain with their families. The Department of Child Services announced plans in late 2009 to cut payments to those who provide homes for the children by 10 percent. Overall, the cuts would reduce the state's costs by about 8 percent by June 2011.
Many other states, including Arizona, California, Missouri, Ohio and Utah, also have cut spending on children's services because of budget problems. Some states have reduced payments to foster homes or group facilities or considered laying off caseworkers.
"The states are getting pounded, and this is one of the few times I've seen child welfare really get hit," said Michael Petit, president of the advocacy group Every Child Matters.
According to children's advocates, Indiana put its new policy on special needs children into effect at the beginning of the year when it directed private agencies that specialize in finding foster homes for hard-to-place children to begin offering traditional foster care as well. Then, the state began shifting special-needs children into the lower-cost care.
Children who have special needs include pregnant teenagers, victims of sexual abuse, infants born to drug-addicted moms, those with severe medical problems or with behavioral problems that lead them to act violently.
According to placement agencies, a 1-year-old boy born with cocaine and marijuana in his system and behavioral problems was placed in traditional care at one facility. Two siblings who had been sexually abused by relatives, including an 11-year-old girl who vandalized her foster home and threatened her foster mother, also were reclassified.
The state wouldn't say how many children have been reclassified. But one placement agency official said almost half his special-needs children were downgraded; another official said all the children at some agencies were affected.
DCS Director James W. Payne said in a Dec. 1 letter to providers that the agency had "reluctantly" ordered the 10 percent cut. Indiana's reimbursement rate for the traditional care, which would drop from $25 to $22.50, would remain among the nation's highest, he said. His letter did not mention shifting the special needs children.
"These have been incredibly difficult deliberations and everyone involved recognizes the magnitude of the decisions being made," the letter said.
A federal judge has temporarily blocked the cuts and reclassifications after foster parents and private agencies filed suit. The state is appealing the order.
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