In her budget proposal released last week, Gov. Katie Hobbs is asking for tens of millions of dollars to take care of Arizona’s foster children and prepare them for life when they leave the system.
A federal law passed in 2018 reduced the amount of money states receive to place foster children in group homes, encouraging states to look for family-like settings to care for those kids instead.
Arizona has made strides in meeting that goal.
Over the past five years, Arizona's group home population has dropped from 2,135 to an estimated 1,470 this year, a 31% decrease. But the drop has stagnated in this last year, with the state reporting an estimated decline of just 10 children.
At the same time, the state faces a shortage of foster homes, leading the governor’s office to ask for nearly $37 million to fully fund group care this year.
The request comes as Hobbs faces criticism from Republicans after the Arizona Republic reported the state awarded a rate increase to a group home company owned by a major campaign donor.
The governor has denied influencing the decision to award the raise, though the former Department of Child Safety director told the Republic the situation put state employees “in an uncomfortable position.”
More recently, the state has taken other steps to open up more foster home beds.
In December, Hobbs announced that the Department of Child Services increased the daily rate paid to foster families by 50%.
Ultimately, the governor’s office believes raising the rate will help place more children with family members or other foster families rather than group homes, which are a costlier option.
That money was funded by one-time federal dollars awarded to Arizona during the COVID-19 pandemic. In future years, it will be funded by the savings the state will realize by moving more children away from group homes and into foster care, according to the governor’s office.
Hobbs is also asking for around $9 million to help older foster children.
That includes $1 million to fund extended foster care for people up to 21 years old. DCS expects enrollment in the program, which helps prevent homelessness, to jump 6% this year. The governor is also asking for around $8 million to provide success coaching for Arizonans exiting the foster care system, which includes skills training, housing and education assistance, and career planning.
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