FRANKFORT, Ky. (May 4, 2023) – Today, Gov. Andy Beshear announced his administration is providing $41.5 million to support the state’s foster children and those who provide them care.

The funds will start being distributed this month to the 45 providers and their 120-plus foster care agencies to help them provide critical care to foster children across the state. The additional funds are a result of cost savings the state has achieved by reducing the number of children in foster care to less than 8,500, after peaking in 2020 at over 10,000 children, and through funding appropriated through the state budget.

“Every child is a child of God and deserves the best,” Gov. Beshear said. “Due to concerted efforts by our administration, Kentucky is experiencing a significant drop in children in foster care, and I am proud that we can provide additional funds to help support the children who remain in our care.”

The funding is from two sources. First, the Governor announced a one-time allocation of $21.5 million, which is available due to cost savings secured by the administration. This month providers will receive this one-time sustainability payment.

Second, the Governor signed an emergency regulation to allocate $20 million from the state budget to the same 45 providers and their 120-plus foster care agencies to fund a higher monthly reimbursement rate. This is the second rate increase this year. It will begin this month and continue each month going forward.

The administration looked to increase these providers’ rates following the start of a study of the providers’ costs and needs. Based on the initial information in this study, many providers are struggling to meet the cost of care, and several have closed recently.

Both the one-time payment and the higher monthly reimbursement rate amounts are based on the number of children served and the level of care provided, which is calculated by the Cabinet for Health and Family Services.

The leaders of three providers attended the Governor’s announcement of the new funding on Thursday to represent the 45 providers and to ceremonially accept a check for $21.5 million.

Pam Priddy, chief strategy officer with NECCO, said, “NECCO is appreciative of the financial support from the Governor’s office and cabinet to continue to provide quality services and a safety net to children and youth in foster care in Kentucky.”

“The safety of kids in foster care is priceless, but the reality is that creating and maintaining a safe environment for these youth comes at a cost,” said Maryhurst President and CEO Paula Garner. “This financial relief is a lifeline and will allow us to continue to offer the therapeutic support to children that is so critically needed at this time.”

“The Children’s Alliance commends the administration’s leadership for all the time and energy they committed to collecting and analyzing cost reports and time study data to document the need for additional resources to child welfare providers. To acknowledge the need and act outside of the normal budget process speaks volumes to their commitment to our children placed outside their own homes. We thank you and appreciate the partnership,” said Children’s Alliance President Michelle Sanborn.

Today’s announcement follows Kentucky becoming the fifth state to implement the Family First Prevention Services Act. Family First Prevention Services include Sobriety Treatment and Recovery Teams, the Family Preservation and Reunification Program, the Kentucky Strengthening Ties and Empowering Parents program, Multisystemic Therapy Prevention Pilots and the Intercept Prevention Pilot.

The Family Preservation and Reunification Services program alone has seen a 94% success rate in keeping children in their homes. These prevention efforts are also saving the state and taxpayers money. Since 2019, the Department for Community Based Services has invested $11.4 million in prevention. Costs for out-of-home care have been reduced by $79.1 million.

“The administration’s actions are providing support to some of our state’s most vulnerable kids,” said Cabinet for Health and Family Services Secretary Eric Friedlander. “We are deeply grateful for this funding. It helps ensure that we can continue to nurture Kentucky kids most in need of this support.”