(1) As used in this section, the term:(a) “Core services funding” means all funds allocated to lead agencies. The term does not include any of the following:1. Funds appropriated for independent living services.
2. Funds appropriated for maintenance adoption subsidies.
3. Funds allocated by the department for child protective investigation service training.
4. Nonrecurring funds.
5. Designated mental health wrap-around service funds.
6. Funds for special projects for a designated lead agency.
7. Funds appropriated for the Guardianship Assistance Program established under s. 39.6225. (b) “Operational and fixed costs” means:1. Administrative expenditures, including, but not limited to, information technology and human resources functions.
2. Lease payments.
3. Asset depreciation.
4. Utilities.
5. Administrative components of case management.
6. Mandated activities such as training, quality improvement, or contract management.
(2) The department shall develop, in collaboration with lead agencies and providers of child welfare services, a funding methodology for allocating core services funding to lead agencies which, at a minimum:(a) Is actuarially sound.
(b) Is reimbursement-based.
(c) Is designed to incentivize efficient and effective lead agency operation, prevention, family preservation, and permanency.
(d) Considers variable costs, including, but not limited to:1. Direct costs for in-home and out-of-home care for children served by the lead agencies.
2. Direct costs for prevention services.
3. Operational and fixed costs.
(e) Is scaled regionally for cost-of-living factors.
(3) The lead agencies and providers shall submit any detailed cost and expenditure data that the department requests for the development of the funding methodology.
(4) The department shall submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives by December 1, 2024, which, at a minimum:(a) Describes a proposed funding methodology and formula that will provide for the annual budget of each lead agency, including, but not limited to, how the proposed methodology will meet the criteria specified in subsection (2).
(b) Describes the data used to develop the methodology and the data that will be used to annually calculate the proposed lead agency budget.
(c) Specifies proposed rates and total allocations for each lead agency. The allocations must ensure that the total of all amounts allocated to lead agencies under the funding methodology does not exceed the total amount appropriated to lead agencies in the 2024-2025 General Appropriations Act.
(d) Provides risk mitigation recommendations that ensure that lead agencies do not experience a reduction in funding that would be detrimental to operations or result in a reduction in services to children.
(5) By October 31, 2025, and each October 31 thereafter, the department shall submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives which includes recommendations for adjustments to the funding methodology for the next fiscal year, calculated using the criteria in subsection (2). Such recommendations must, at a minimum, be based on updated expenditure data, cost-of-living adjustments, market dynamics, or other catchment area variations. The total of all amounts proposed for allocation to lead agencies under the funding methodology for the subsequent fiscal year may not exceed the total amount appropriated in the General Appropriations Act for core services funding in the present fiscal year. The funding methodology must include risk mitigation strategies that ensure that lead agencies do not experience a reduction in funding that would be detrimental to operations or result in a reduction in services to children.
(6)(a) The requirements of this section do not replace, and are in addition to, any requirements of chapter 216, including, but not limited to, submission of final legislative budget requests by the department under s. 216.023. (b) The data and reports required under subsections (4) and (5) may also include proposed rates and total allocations for each lead agency which reflect any additional core services funding for lead agencies which is requested by the department under s. 216.023. (7)(a) Beginning with the 2025-2026 fiscal year, the Legislature shall allocate funding to lead agencies through the General Appropriations Act with due consideration of the funding methodology developed under this section.
(b) The department may not change the allocation of funds to a lead agency as provided in the General Appropriations Act without legislative approval. The department may approve additional risk pool funding for a lead agency as provided under s. 409.990. (8) The department shall provide to the Governor, the President of the Senate, and the Speaker of the House of Representatives monthly reports from July through October 2024 which provide updates on activities and progress in developing the funding methodology.
