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The 2024-25 Budget: Preliminary May Revision Analysis for Child Welfare
The eFMAP phased out over nine months, ending December 31, 2023.

Foster Family Agencies one‑time rate increase

‑10

‑8

One‑time increase for Foster Family Agencies rates in 2023‑24. This reduction reflects the one‑time nature of the funding.

Subtotals

(‑$210)

(‑$183)

Totals

$173

‑$165

aInitial costs proposed in 2024‑25 to begin automation for the CCR permanent rates structure are excluded from the “net changes in CCR costs” line of this table, and instead are described in a separate line under the “new proposals” section. 

FURS = Family Urgent Response System; LA = Los Angeles; SILPs = Supervised Independent Living Placements; CCR = Continuum of Care Reform; CWS‑CARES = Child Welfare Services‑California Automated Response and Engagement System; SAWS = Statewide Automated Welfare System; BH‑CONNECT = Behavioral Health Community‑Based Organized Networks of Equitable Care and Treatment; CFT = Child and Family Team; FM = Family Maintenance; DHCS = Department of Health Care Services; Kin‑GAP = Kinship Guardianship Assistance Payment; AAP = Adoption Assistance Program; and eFMAP = Enhanced Federal Medical Assistance Percentages.

LAO Comments on New Reductions Proposals
As described in Figure 2, the administration’s May Revision proposal includes three new reductions within child welfare. Our comments on these proposals are below. (For more information and our questions related to the proposed reductions included as part of the Governor’s January budget, please refer to our previous analysis.)
Foster Care Caregiver Approval Funding Reduction. According to the most recent data we have seen (from July 2023), median resource family approval (RFA) times—including for emergency placements with relatives—continue to exceed 100 days. This exceeds the target time frame of approval within 90 days. We are working with the administration to understand what are current RFA approval times, if more current data are available, and to what extent eliminating this funding will result in additional backlogs and longer processing times.
The 2024-25 Budget: Child Welfare
The amount in this table reflects automation funding that was included in 2023‑24 revised estimates. (At full implementation, which had been estimated to occur in 2025‑26, the housing rate supplement would be $18.8 million annually.)

FFPSA Part I extension of expenditure authority

—

—

Governor’s budget proposes to extend the expenditure deadline for local child welfare agencies to spend their grant dollars for the state Family First Prevention Services Block Grant for four years, to June 30, 2028. The 2021 budget initially funded the $222.4 million grant program with three years of expenditure authority (through June 30, 2024).

Bringing Families Home delay

—

—

Governor’s budget proposes to delay $80 million from 2023‑24 to 2025‑26, along with budget language extending the expenditure period and local funding match waiver period.

CCR permanent rates structure initial automation funding

 12 

 12 

Governor’s budget proposes initial funding to begin systems automation across CWS‑CARES and SAWS to implement the permanent CCR rates structure. The rates structure proposal currently is under development and many details are yet to be finalized. 

Augmentations Based on Current Law and Policy

CWS‑CARES project increase

$45 

$23 

This amount reflects updated project cost estimates according to Special Project Report 6, which was approved by the California Department of Technology in May 2023. According to this report, CWS‑CARES version 1 is expected to implement statewide in October 2026.

BH‑CONNECT

 17 

 13 

This amount reflects child welfare‑specific costs included in the Medi‑Cal demonstration project. Implementation funding began in 2023‑24. The increase in 2024‑25 reflects January 1, 2025 implementation of child welfare social worker workload to participate in CFT meetings for FM cases, activity stipends to promote social and emotional well‑being for children involved with the child welfare system, and social worker time to participate in a new home visiting process for child welfare cases with substantiated maltreatment allegations. Other costs are budgeted under DHCS. 

Net changes in CCR costs

 17 

 5
The 2024-25 Budget: Preliminary May Revision Analysis for Child Welfare
May revision proposes to eliminate General Fund funding for foster care caregiver approvals, which counties use to support resource family approvals. Ongoing state funds for this purpose were provided beginning in 2022‑23. 

Emergency child care bridge reduction

‑35

‑35

May revision proposes to pull back some recently augmented funds for the foster care emergency child care bridge program. The total amount includes funding for vouchers ($25.8 million) and training ($9 million). This represents an overall program funding reduction of around 40 percent.

FURS elimination

‑31

‑30

Governor’s budget proposed to eliminate funding for FURS. While funding would be eliminated, language authorizing the program would remain in statute.

LA County child welfare services public health nurse program elimination

‑8

‑8

Governor’s budget proposed to eliminate funding for LA County’s public health nurse early intervention pilot program. While funding would be eliminated, language authorizing the program would remain in statute.

Housing supplement for SILPs elimination

‑1

‑1

Governor’s budget proposed to eliminate funding for the SILP housing supplement. While funding would be eliminated, language authorizing the program would remain in statute. The amount in this table reflects automation funding that was included in 2023‑24 revised estimates. (At full implementation, which had been estimated to occur in 2025‑26, the housing rate supplement would be $18.8 million annually.)

Bringing Families Home reduction

‑80

‑80

Governor’s budget proposed to delay $80 million from 2023‑24 to 2025‑26, along with budget language extending the expenditure period and local funding match waiver period. May revision instead proposes to reduce the program by $80 million rather than delaying the funds. The administration estimates there will be around $7.5 million remaining for grantees in the budget year, and the program will end June 30, 2025. 

CCR permanent foster care rates

14

14

Governor’s budget proposed $12 million initial funding to begin systems automation across CWS‑CARES and SAWS to implement the permanent CCR rates structure.
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The 2024-25 Budget: Preliminary May Revision Analysis for Child Welfare
The additional time would allow the Legislature to make its own determination around implementing the new rates once the state’s future fiscal picture is clearer and the specifics of the proposal are more certain.
Questions Regarding Proposed Automation Funding for 2024-25. At May Revision, the placeholder funding amount included to begin automation in preparation for implementing the new rates structure has increased to $14.465 million, up from $12 million at the time of the Governor’s January proposal. Our understanding is that Statewide Automated Welfare System and CWS-CARES partners need detailed implementation guidance from DSS prior to automation, so we are unsure what exactly this now-more-precise estimate reflects.
Questions Around Multiyear Cost Estimate. We continue to have questions around how the administration developed its cost estimate for implementing the proposed new rates structure, beginning in 2026-27 and ramping up to full implementation in 2029-30 (totaling around $1 billion total funds [$780 million General Fund] annually as of 2029-30). Furthermore, our understanding is that the estimates provided are for local assistance only and do not include state operations costs. We will continue to work with the administration to better understand the overall estimates methodology for the proposed permanent rates structure.

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The purpose of this grant funding opportunity (Solicitation) is to award three regional administrators (Recipients) with funding to implement the Equitable Building Decarbonization (EBD) Direct Install Program. The program will be administered separately in Northern, Central, and Southern California to better ensure a broad distribution of funds.

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Eligible Geographies
The EBD Direct Install Program will be administered separately in three regions: Northern, Central, and Southern California.

	View Full Grant Details: Equitable Building Decarbonization Program Direct Install>/span>	

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Grant Title

California Advanced Services Fund: Broadband Public Housing Account – July 2024 Cycle

Open Date
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Public Utilities Commission

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$15,000,000

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	January 3, 2024, 12:02 pm	

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The basis of the California Advanced Services Fund (CASF) Broadband Public Housing Account is to provide grants and loans to finance projects to build broadband networks offering free broadband service for residents of low-income communities.

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	View Full Grant Details: California Advanced Services Fund: Broadband Public Housing Account – July 2024 Cycle>/span>	

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Grant Title

California Advanced Services Fund: Broadband Adoption Account – July 2024 Cycle

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Jan 3, 2024

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15%

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