Judge blocks Indiana cuts in foster care payments

A federal judge has temporarily blocked the Indiana Department of Child Services from cutting state subsidies to foster
and adoptive parents and residential treatment centers that help provide for children.

U.S. District Judge Sarah
Evans Barker in Indianapolis granted the parents’ and centers’ requests for injunctions in a ruling from the bench last week.

Barker issued the ruling in consolidating a pair of lawsuits aimed at stopping the cuts, which were scheduled to take
effect this month.

Barker did not comment on the merits of the claims against DCS or the cuts, which officials
proposed in December in response to the state’s fiscal crisis.

Ken Falk, legal director for the American Civil
Liberties Union of Indiana, said the ruling was good news to the foster and adoptive parents he is representing.

"There are children and parents who need this money, and a 10-percent cut would be devastating," he said.

Falk said the judge’s preliminary order will remain in effect until a final order is issued. DCS could appeal the ruling,
but if it does not, the preliminary order could become permanent, he said.

"We are obviously disappointed,"
DCS spokeswoman Ann Houseworth said. "We have yet to see the written order from the judge but will abide by it while
we continue to pursue all options to provide for the best possible care for the children in our system."

She
said the agency hasn’t decided whether to appeal.

The first lawsuit was filed last month by a group of 110 foster
and residential child care agencies after DCS announced it would cut payments to foster care agencies by up to 20 percent
and to residential child care agencies by up to 14 percent. The agencies serve about 4,600 children.

"We are
very glad that the judge heard our concerns," said Cathleen Graham, executive director of the Indiana Association of
Residential Child Care Agencies Inc.

IARCCA had said the cuts wouldn’t leave enough money for adequate care.

The second lawsuit, filed by the ACLU on behalf of foster parents and parents who adopt children through DCS, claimed
federal law requires the payments to cover food, shelter, clothing, school supplies and daily supervision for the children.
It also said the law requires the state to consult with parents and assess costs in each case before adjusting the payments.

Houseworth has said the federal government provides about 75 percent of the money for the payments.