Breaking News! Ohio Raises State's Financial Participation in IV-E Adoption Assistance Program

This should have a significant effect on the negotiation of adoption assistance

As of January 1, 2023, the state will pay the non federal portion of adoption assistance up to $350 per month. It was formerly $250 per month.  This has huge significance for negotiation and renegotiation of adoption assistance agreements. 

Here is an excerpt from the ODJFS Procedure Letter announcing the change.

FCASPL 400 (State Participation Rate for Title IV-E Adoption Assistance (AA))

Family, Children and Adult Services Procedure Letter No. 400,

October 26, 2022

TO: Family, Children, and Adult Services Manual Holders

FROM: Matt Damschroder, Director

SUBJECT: State Participation Rate for Title IV-E Adoption Assistance (AA)

PRINTER-FRIENDLY PDF:Printer-Friendly PDF of this Letter

UPDATED GUIDANCE

Requirements for the Title IV-E Adoption Assistance (AA) program may be referenced in Chapter 5101:2-49 of the Ohio Administrative Code. The state participation rate for the non-federal match for AA payments for any initial Title IV-E adoption assistance agreement becoming effective on or after January 1, 2023 is $350.  Public children services agencies (PCSA) will be responsible for providing the non-federal match amount for any payments above $350.

Why is this significant for negotiation of adoption assistance?

In practical terms, parents should consider $350 per month to be the starting minimum for negotiation of adoption assistance. Up to that point the county has no costs. The frequently repeated bromide that negotiations must start at zero has no basis in policy or law. It is, at best, a negotiation tactic.

Suggestion

Let the county agency know that the state financial participation rate for IV-E Adoption Assistance has increased from the first $250 in monthly payments to the first $350 in monthly payments. Reminding the parties that a relatively small investment of non-federal matching funds draws down a much larger adoption assistance payment reflects the goal of negotiations, namely an investment in a healthy permanent family for the child.

Does the increased state participation rate apply retroactively?

No, apparently not.

  What is the Federal Financial Participation Rate?

Normally, federal funding (FFP) for Title IV-E Adoption Assistance varies between about 62% and and 64% of each payment. In response to COVID, the federal government added an enhancement to the FFP of an additional 6.2%, raising the FFP in Ohio to 69.78% The enhanced FFP was set to expire at the end of 2022, unless it was renewed. I am trying to find that out. For now, you can count on the FFP for adoption assistance to be at least 63.58% of each adoption assistance payment until September 30, 2023.

Let’s say the FFP for adoption assistance is 63.58%. The non-federal share for both the state and counties would be 36.42%.

Give us an Example

Suppose there is an agreement for a monthly adoption assistance payment of $1,000. Suppose the FFP is 63.53%. Here is the breakdown in Federal, State and County financial participation.

Federal 63.58% of $1,000 = $635.80.

State Non-Federal Share - 36.42% of first $350 of adoption assistance payment = $127.47.

County Non-Federal Share - 36.47% of remaining $650 of adoption assistance payment = $237.73.

Note: The figures in the previous post “Wait a Second. Who is paying for Adoption Assistance, Anyway?” October 21, 2022 are based on a state non-federal participation rate of $250 and no longer apply