THE COSTS OF CHILD PROTECTION IN THE CONTEXT OF WELFARE-REFORM

The financing structure of any large public set-Lice system both revea ls the priorities held by policymakers and drives the delivery of serv ices. Of the $11.2 billion in public funds for child welfare services, somewhat less than half is federal. rls this article explains, federa l funds for child welfare overwhelmingly go to support out-of-home car e (foster care and adoption services), and these costs have risen shar ply in recent years. Tn contrast, federal funding for child protection investigations, prevention programs, and treatment services is more l imited, and expenditures have not risen apace with reports of maltreat ment. The article compares the high cost of foster care with the lower per capita cost of cash assistance to poor families and the per-case costs of child protection investigations and service provision. Pointi ng out that the great majority of families served by the child welfare system are poor; the author argues that child welfare and cash assist ance should be seen and analyzed as interrelated programs serving poor families. The article examine's the varied ways in which the changes in cash assistance programs introduced by the 1996 federal welfare ref orm law may increase the need roll child welfare services and drive up the costs of child protection.