Lawsuit: Indiana Department of Child Services UPDATED

“A group of parents says the state of Indiana owes millions of dollars to adopted children with special needs.

A class action lawsuit represents more than 1,400 families against the Department of Child Services.

Debra Moss adopted three foster boys, brothers who all have special needs.

“They all have medical needs. They all have ADHD, they all have special needs,” Moss said.

Moss relies on food banks and thrift stores, because she lives on social security. She has not received the adoption subsidy promised in a contract when she adopted the boys out of DCS foster care.

“I was told the adoption subsidy would be there when I adopted them. But yet, I was put on a waiting list back in 2012 and we’re still on that list,” Moss said.

She’s not alone.

According to the class action lawsuit, the state owed $100 million to families who have adopted children with special needs. Money that Mary Coovert says her adopted daughter could use.

“She needs extensive therapy because of the stuff she has gone through. She needs to be trained how to socialize with people. Without the funds, we are unable to give her that extra therapy,” said Coovert.

The suit claims the DCS could have paid those subsidies. But instead, the department returned more than $238 million to the state since 2009.

Moss doesn’t mince words for the agency.

“Aren’t they basically a deadbeat parent?” she said.

“We are the only state that does not pay the subsidies that we’ve agreed to pay for special needs kids,” said attorney Irwin Levin.

Attorneys contend adoptions are down 35 percent in Indiana. Mothers of adopted children want the state to step up and give their children the money they deserve.

“The state needs to know that these children need this money. If our governor is going to say we’re adoption friendly, then he needs to put his foot where his mouth is,” Moss said.

Eyewitness News reached out to Governor Mike Pence’s office for comment, but the request was forwarded to the Department of Child Services, who said it is “the policy of DCS to not comment on cases that are in or pending litigation.””

Families file suit against DCS over unpaid adoption subsidies[WTHR 6/30/14 by Scott Swan]

REFORM Puzzle Piece

 

Update: “A La Porte woman says the Indiana Department of Child Services is to blame for denying payment to her and at least 1,400 other families that have adopted special needs children from the state’s foster care system since 2009.

But in a response to the lawsuit Debra Moss has filed against the state agency, DCS shifts the blame to someone else: lawmakers. DCS says the adoption subsidies haven’t been paid because the Indiana legislature failed to appropriate enough money.

Moss’ lawsuit notes that DCS promised in a contract to pay adoption subsidies “if funding becomes available.” As evidence that those funds were available, the lawsuit points out that, since 2009, DCS has returned roughly $240 million to state coffers while not paying the subsidies. Moss’ lawsuit contends that is a violation of the families’ written contracts.

DCS acknowledged returning that amount to the state’s general fund but denied violating the families’ contracts.

“DCS can make adoption subsidy payments only if DCS determines in its discretion that sufficient funds are available in the adoption assistance account and that sufficient funds can reasonably be anticipated to be available in the account during the term of the subsidy,” the agency said in court records filed last week. “This is a condition precedent to payment that did not occur.”

Because of the pending litigation, DCS spokesman Rich Allen said he could not comment on the agency’s reason for returning money to the state’s general fund rather than using it on subsidies.

Lynn Toops, of Cohen & Malad, the law firm representing Moss, dismissed DCS’ claims that it didn’t have money to pay the subsidies. The Indianapolis Star previously reported that DCS returned $238.6 million to the state since 2009. Toops said DCS has returned an additional $4 million to the state’s general fund since Moss’ lawsuit was filed.

“The contracts that DCS had with the adoptive families weren’t contingent on an appropriation from the legislature,” she said in a written statement. “Since 2009, DCS has returned over $240 million in excess, unused funds to the State, and all of that money was available to DCS to pay to the adoption subsidies.”

State Rep. Tim Brown, R-Crawfordsville, who is chairman of the House Ways and Means committee, did not respond to The Star’s request for comment.

State Rep. Greg Porter, D-Indianapolis, who is also a member of that committee, said the legislature approved the budget with the expectation that the money it appropriated would be spent. He said the desire to return money to the general fund shouldn’t trump DCS’ need to take care of Hoosier children and families.

“We believe we did fund it sufficiently,” Porter said. “If they want to revert those dollars, the ball’s back in their court.””

DCS says it didn’t have money to pay adoption subsidies[Journal Courier 8/8/14 by Marisa Kwiatkowski]

Update 2:

“Thousands of adoptive parents in Indiana will soon receive subsidy payments from the state for the first time in more than five years. The move follows the filing of a lawsuit claiming the state failed to deliver on promised payments to families since 2009.

It represents an about-face from Indiana’s Department of Child Services.

More than 1,400 families represented in the lawsuit claim the agency promised them payments of between $18.80 and $28.00 per day for each special needs child they adopted. The families claim they have not been paid any form of subsidy since 2009, despite the fact that DCS “returned over $238 million to the State of Indiana in excess funds that were available for DCS to pay the adoption subsidy.”

“Although the State Adoption Subsidy is only a small piece of the assistance the State of Indiana offers to adoptive parents, it is my belief that funding the program this fiscal year is the right thing to do,” said Governor Mike Pence. “At the same time, the Adoption Study Committee is now looking at this issue, and we appreciate their work to develop recommendations that address the needs of Hoosier families and effectively promote adoption,” added Pence.

According to a response filed in LaPorte County Superior Court, the agency admitted it “reverted more than $238 million of funds allocated to DCS by the General Assembly to the state’s general fund since 2009.” But, DCS denied those funds were “available” to pay adoption subsidies.

But, during an Adoption Study Committee meeting Tuesday afternoon, a spokeswoman from the Governor’s office said the state does intent to fund the adoption subsidy program during the 2015 fiscal year.

“Governor Pence has a heart for adoptive and foster families, and we are grateful we have been able to identify resources to fund this program for families that have adopted children from our system,” said Director, Mary Beth Bonaventura.

Some lawmakers were quick to applaud the announcement.

“Senate Democrats have long pushed for Indiana to join every other state in making this incentive available to parents,” said Senate Democratic Leader Tim Lanane (D-Anderson), in a news release. “As I’ve stated in the past concerning the administration’s policies –better late than never.”

“As a state, we have an obligation to support these families who have stepped forward to adopt children who, through no fault of their own, have endured great pain and separation in their life,” said Sen. John Broden (D-South Bend), a member of the committee. “I applaud the governor for this long overdue step of honoring the state’s financial commitment and obligation to these families.”

Bills authored in both 2012 and 2013 by Broden that would have mandated state subsidies for families who adopt special needs children never passed out of committee.

A DCS spokesman said additional information on how the subsidies will be funded, their total cost, and which families will be eligible will be released soon.

Parents of adoptive children that have questions regarding subsidies can call 1-877-265-0086 or email centralized.eligibility@dcs.in.gov”

 [Wish Tv 8/12/14 by Troy Kehoe]

Update 3:”More than 1,800 Hoosier families will split a $15 million settlement from Indiana’s Department of Child Services. The money will be provided to adoptive parents who were promised subsidy payments dating back to 2009.

The settlement follows the filing of a lawsuit claiming the agency promised payments of between $18.80 and $28.00 per day for each special needs child adopted in Indiana. The lawsuit claimed those subsidies haven’t been paid since 2009, despite the fact that DCS “returned over $238 million to the State of Indiana in excess funds that were available for DCS to pay the adoption subsidy.”

The agreement, filed Thursday and submitted to the LaPorte Superior Court for approval, will provide $15.1 million to the parents of children who were listed on the state adoption subsidy wait list between January 1, 2009 and June 30, 2014.

Last month, Governor Mike Pence announced the subsidies would resume in 2015, effective back to July 1, 2014.

“As an adoptive parent, I know what it means to open your heart and provide a permanent home to a child in foster care,” said DCS Director, Mary Beth Bonaventura in a statement Thursday.  “Today’s announcement means financial resources will be available for parents who have faced challenges meeting the needs of their adopted children.”

“This will help adoptive families provide for the physical and emotional needs of the children,” said Indianapolis attorney Irwin Levin, who filed the lawsuit on behalf of the families.

If the court approves the agreement, the funding will be distributed by a third party administrator.

Parents of adopted children who have questions about the subsidies and payments can email centralized.eligibility@dcs.in.gov or call 877-265-0086.”

Ind. DCS settles lawsuit over adoption subsidies [Wish Tv 9/17/14 by Troy Kehoe]

Update 4:“Families of adopted special needs children could be running out of time to collect their part of a $15 million settlement with the State.

Kim Reed’s adopted child, a baby girl she calls “Pipi,” has cerebral palsy and several other disabilities. When she adopted Pipi in 2010, the Department of Child Services put Kim on the Adoption Subsidy waiting list, claiming there was no funding available to help with Pipi’s care.

Last summer, a grandmother from LaPorte County filed a lawsuit against DCS for failing to keep its promises to families of adopted special needs children. DCS claimed it didn’t have the money, but between 2009 and 2014, they returned $240 million to Indiana’s general fund.

At the direction of Governor Mike Pence, the State settled the case for $15.1 million. Checks went out December 31 with holiday greetings, but Kim had no idea she was among the 1,800 families who would get a check until a few weeks ago.

“Honestly, I cried because I have a daughter who was abandoned in ’08,” Kim said. “I exhausted everything to take care of her. It had nothing to do with money.”

But Kim’s check never showed up. It was making circles from Indianapolis to the company in California issuing the check.

“It went to an old address that I lived at seven years ago,” she explained. “I ended up telling them three times my new address.”

Kim’s check finally arrived last week, but it wasn’t quite what she expected. Turns out Pipi’s share was just 40 percent of the thousands of dollars the State owed the family.

“I think it’s very unfair, because these children came into the world with their own disability….It will help, but it’s still not enough, not for the things that she needs.”

Lynn Toops, the attorney who took on the State in the class action lawsuit, admits it was a compromise, saying, “These families hadn’t received a penny since 2009. Their voices fell on the deaf ears of legislators and no other lawyers would bring suit on their behalf. There were substantial risks in taking this litigation, and we have received overwhelming thanks from the families and are very proud of this accomplishment.”

Reed just has one bit of advice: “Do it for the love of the children, and don’t just think of it as money.”

Kim Reed hopes her speaking out will alert other families unaware of the settlement to seek answers before the checks are void on March 30. Attorneys say while it isn’t 100 percent, the settlement does include assistance through 2015.”

$15.1M settlement with DCS only pays fraction of State’s debt to adoptive families[WTHR 3/9/15 by Sandra Chapman]