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DCS & The Recovery Act of 2009

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The American Recovery and Reinvestment Act of 2009 will benefit some of Tennessee's most vulnerable citizens -- those served by the state Department of Children's Services.

Title IV-E is the federal program that provides assistance to public child welfare agencies, such as DCS. The Title IV-E match provides foster-care maintenance to the states on behalf of children who come into state custody. It also provides adoption assistance and reimbursement for training and administrative expenses.

States receive matching funds for Title IV-E based on the Federal Medical Assistance Program rate. Under the Recovery Act, that rate has increased for the next three fiscal years.

The current baseline DCS budget for Title IV-E foster care and adoption assistance is $46 million. For the 2009 state fiscal year, the recovery act means an additional $3.5 million. For 2010, it is $4.4 million. In the 2011 fiscal year, it provides $2.3 million.

Because these funds are part of specific federal funding formula for foster children, their use is not discretionary. DCS will receive a increase in the federal match for its foster-care and adoption-assistance payments.

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