This document summarizes the history and current status of child welfare privatization efforts in Oklahoma and Nebraska. It outlines Oklahoma's Children's Rights lawsuit settlement and subsequent Pinnacle Plan to expand partnerships with private agencies through competitive bidding processes. In Nebraska, lead agency models were initially implemented statewide but are now prohibited outside of Omaha due to increased costs and unchanged outcomes. Both states are actively evaluating their models and oversight structures going forward.

1. Oklahoma Child Welfare
Oklahoma Therapeutic Foster Care
Association
Privatization Plan
HISTORY HIGHLIGHTS
• Children’s Rights Lawsuit – February
2008
• House Bill 1359 - Passed 2010
• Lawsuit Settlement Agreement –
January 4, 2012
• Finalization of Pinnacle Plan – June,
2012

2. Oklahoma Therapeutic Foster Care
Association
HB 1359 created the Foster Care System
Improvement Task Force
 Recommendation
 Expand partnerships between state/tribal/public agencies and private sector
resources for increased capacity and efficiency with proper court and agency
monitoring and enforcement:
 1) in placement (not to include case management) and services to custody youth
along a continuum of care, to include out-of-home placement, such as emergency
foster care, traditional foster care, kinship foster care, contracted foster care,
therapeutic foster care, or other services as might be authorized by DHS
 2) foster care home recruitment, training, home study and retention
3) in the involvement of community groups for local support, community resource
development, and participation.

3. Oklahoma Therapeutic Foster Care
Association
Pinnacle Plan
 By September 30, 2012, OKDHS will complete the bidding process to
obtain an adequate number of private partnerships for the recruitment,
support, and retention of non-relative resource parents. OKDHS will
provide directly or through its private providers a seamless customer
service experience for families by providing one point of contact for the
entire onboarding process, including recruitment, resource family
assessment, training, and ongoing support. The point of contact will
support families as they interact with OKDHS throughout the approval
process, during placement and care of children in their homes, and in
understanding the child welfare system. The goal is to have one contact
helping the family throughout the process.
 If a private provider is not selected for a particular district, OKDHS will
ensure the district is allocated adequate OKDHS staff and support for
recruiting and retaining resource families.

4. Expanded Collaboration
Private Child Placing
DHS Agencies
 DHS retains foster care case  Agencies have responsibility for
management and permanency foster care home, placement
management/responsibility services, and placement
 > in contract monitoring management (?).
 = investigators, case managers,  > flexibility within a single placement
licensing (special services, training, support,
reimbursement)
 < home study workers,
recruitment/training specialists  > training of traditional foster parents
 “verticle re-alignment” of lines of  > responsibility for foster parents at
authority in child welfare all skill levels
 > responsibility to community

5. Oklahoma Therapeutic Foster Care
Goals
Association
 Managing for outcomes, not process management
 > shared responsibility: participation by community and
private sector
 Delineation of specific functions for state (i.e. case
management) and specific functions for private sector
(i.e. placement management)
 State determines want it wants contractors to do (i.e.
placement, recruitment/nurturing of foster parents,
FGDM, home studies, independent living, etc.) and how
to pay for it.

6. Where are we now in
Oklahoma Therapeutic Foster Care
Oklahoma:
Association
 Private contracting RFP as per Pinnacle Plan to be
announced by Oct. 31st, 2012.
 Ed Lake, new Director OKDHS, to begin work
November 1, 2012.
 State Question 675 on Nov. 6 ballot: Would abolish OK
Human Services Commission and reinvent the agency
with Dir. begin hire of Governor with approval of Senate
and “commission” reconstituted to consist of 4 citizen
boards providing oversight of DHS.

7. Child Welfare
Privatization in Nebraska
 Lead agency model
• Originally, 5 private agencies across the state
coordinated all CW services
• State retained case management oversight
 Goal: reduce the # of children in out-of-
home care
 Executive branch initiative

8. Timeline of Nebraska
Child Welfare Privatization
2009 2011
• Nov: Contracts signed • Jan: Case management
transitioned to KVC & NFC
2010 • 77 HHS FTEs eliminated
• April: Implemented across • $19M amendment
the state
• April: Moratorium on
• April 2: Cedars terminated privatization in rural areas
contract
• April 16: Visinet terminated • Feb: LR 37 adopted
contract (filed bankruptcy)
• Sept 30: Boys & Girls Home • June: $5.5M to KVC
terminated contract
• Oct: $15M amendment

9. Legislative Resolution 37
“The HHS Committee of the Legislature shall… review,
investigate and assess the effect of the child welfare
reform initiative…”
 6 interim study hearings across the state
 Reports from State Auditor, Legislative Fiscal Office &
Legislative Performance Audit Committee
• State CW costs increased 27% between 2009 and 2011 with
no significant improvements in outcomes.
 Surveys from judges, attorneys, parents & foster parents
 Final report Dec. 15, 2011
• 400 pages & 18 recommendations
• http://nebraskalegislature.gov/reports/health.php

10. 2012 Legislative Session
LR 37 package of legislation
 Prohibits lead agencies except Omaha area
 Allows for a “pilot” in Omaha
 Sets caseload limits and defines how cases are counted
 Created Children’s Commission
 Created Title IV-E Committee and Foster Care
Reimbursement Rates Committee
 Created Office of Inspector General of NE Child
Welfare
 Increased financial transparency, provides for
development of new data system, and requires
additional reports and evaluations

11. Where are we now in Nebraska?
 Privatization “pilot” in Omaha
• Reviewed by April 1, 2013
 New Director of Children and Family Services
 Children’s Commission
• Strategic Plan and committee
recommendations by Dec. 15, 2012
Sarah Helvey
Staff Attorney & Child Welfare Program Director
Nebraska Appleseed
shelvey@neappleseed.org