C.H. v. Payne

683 F. Supp. 2d 865, 2010 U.S. Dist. LEXIS 6335, 2010 WL 381623
CourtDistrict Court, S.D. Indiana
DecidedJanuary 26, 2010
Docket1:09-cv-1574-SEB-JMS
StatusPublished
Cited by9 cases

This text of 683 F. Supp. 2d 865 (C.H. v. Payne) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.H. v. Payne, 683 F. Supp. 2d 865, 2010 U.S. Dist. LEXIS 6335, 2010 WL 381623 (S.D. Ind. 2010).

Opinion

ENTRY GRANTING A PRELIMINARY INJUNCTION

SARAH EVANS BARKER, District Judge.

This matter is before the Court on Plaintiffs’ Motions for Preliminary Injunction, filed pursuant to Federal Rule of Civil Procedure 65. The cases at bar have been consolidated for pretrial proceedings. A hearing was held on January 20, 2010, at which the parties presented evidence and oral argument. Having considered the parties’ briefing, the documentary and testimonial evidence, and oral arguments, the Court orally summarized from the bench at the conclusion of the hearing its conclusions. For those reasons, as well as the additional reasons detailed below, the Court GRANTS Plaintiffs’ motions for injunctive relief.

Factual and Procedural Background 1

A. C.H., et al. v. Payne

One group of Plaintiffs represents themselves and four classes of litigants consisting of foster parents and foster children *869 directly receiving foster care maintenance payments from the Indiana Department of Child Services (“DCS”) and adoptive parents and adopted special needs children directly receiving adoption assistance payments from DCS (“Class Action Plaintiffs”). Title IV-E of the Social Security Act, 42 U.S.C. § 670 eb seq. (“Title IVE”), provides federal funding for the purposes of foster care and adoption assistance to states which have submitted state plans to the federal government and have had them approved. The State of Indiana has submitted such a plan which has been approved and, thus, has agreed to be bound by all of the federal requirements under Title IV-E. DCS, headed by Director James Payne, is the state agency which administers the Title IV-E monies provided by the federal government.

Under Title IV-E, the federal government underwrites a set percentage of the State’s expenses which are allowable and reimbursable under federal law. 2 The funds used to provide the non-federal share of the Title IV-E expenses come from state-appropriated funds. Prior to January 1, 2009, county tax levies and funds were used for this purpose. However, effective January 1, 2009, Indiana’s law changed, so that now only state money is used to match the federal IV-E funds.

Foster care maintenance payments are funds paid directly by DCS to DCS-licensed foster parents (among other persons and entities), who are caring for or supervising children who have been removed from the homes of their relatives and are wards of DCS. If a child is eligible to receive foster care maintenance payments, 3 the State is required to pay an amount sufficient to “cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child’s personal incidentals, liability insurance with respect to a child, reasonable travel to the child’s home for visitation, and reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement.” 42 U.S.C. § 675(4)(A). DCS agrees that foster care maintenance payments must cover all the reasonable costs of each of the items listed above. These payments are paid as a per diem each month for the prior month’s services. Therefore, the monthly payment made on January 1, 2010, was for services rendered in December 2009.

Adoption assistance payments paid under Title TV-E are paid to eligible special needs children 4 and include one-time, nonrecurring payments for costs such as at *870 torneys’ fees for the adoption. Such assistance also includes continuing monthly payments for the children until they are at least eighteen years of age or are no longer receiving support from the adoptive parents. The statute provides that the amount of the adoption assistance payments “shall be determined through agreement between the adoptive parents and the State ... which shall take into consideration the circumstances of the adopting parents and the needs of the child being adopted, and may be readjusted periodically, with the concurrence of the adopting parents (which may be specified in the adoption assistance agreement), depending upon changes in such circumstances.” 42 U.S.C. § 673(a)(3). Under federal law, adoption assistance payments cannot exceed the foster care maintenance payment which would have been paid had the adopted child been in foster care. Id. As with foster care maintenance payments, adoption assistance payments are paid prospectively (i.e., the January 1, 2010 payment was for the month of December 2009).

The federal government does not direct the specific amounts of the payments; each state determines the amounts of its own payments. From 2006 until the payment incurred for services beginning January 1, 2010, the standard per diem for foster care maintenance payments for children not requiring special needs or therapeutic foster care was $25 per day. However, on January 1, 2009, when the State of Indiana assumed responsibility for the rates, DCS undertook to reexamine the rate structure and determined that the rates needed retooling. In an attempt to arrive at a reasonable rate for payment, DCS engaged in a benchmarking process which included a comparison of Indiana payments to other states’ rates.

As part of this review, DCS also relied heavily on a 2008 report from the United States Department of Agriculture entitled “Expenditures on Children by Families” (“USDA Report”), which contains data on the actual expenditures made by all categories of parents for various categories of items for their children. In that report, the data is separated by age of child, income level of the family, size of the family, and general geographic area. The USDA report is not specifically focused on foster children, and, thus, includes certain expenses that are not part of the foster care rate, such as mortgage, rent, health care, and various education costs, but also excludes some expenses which are particular to the care of children in foster care, including traveling costs incurred for visits to the foster child’s biological family. 5 As part of its process of rate determination, DCS began with the amount of the total expenditures listed in the report for children aged fifteen to seventeen who were living in the lowest income group in the *871 geographical region titled “the Urban Midwest” and deducted from that amount expenditures deemed to be non-reimbursable under Title IV-E, such as health care, education, and child care expenditures. 6 Using that amount, DCS divided by a factor of 365 (days in a year) to reach a per diem of $20.68. 7

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Bluebook (online)
683 F. Supp. 2d 865, 2010 U.S. Dist. LEXIS 6335, 2010 WL 381623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ch-v-payne-insd-2010.