PRESIDENT CLINTON'S BUDGET PROPOSAL FOR NEW FUNDING
    FOR CHILD WELFARE SERVICES TARGETED FOR FAMILY SUP-
    PORT AND PRESERVATION SERVICES.

    HEARING
    BEFORE THE
    SUBCOMMITTEE ON HUMAN RESOURCES
    OF THE
    COMMITTEE ON WAYS AND MEANS

    HOUSE OF REPRESENTATIVES
    ONE HUNDRED THIRD CONGRESS
    FIRST EDITION

    APRIL 21, 1993



    STATEMENT OF HON. CAROLYN B. MALONEY, A REPRESENTA-
    TIVE IN CONGRESS FROM THE STATE OF NEW YORK

    Mrs. MALONEY. Thank you. I am delighted to see you back.
    Chairman FORD. It is good to be back.

    Mrs. MALONEY. Mr. Chairman, I am delighted to be here today
    to testify on President Clinton's budget proposal to provide new
    funding for child welfare services. And I am encouraged, Mr. Chair-
    man, that the President is seeking to help States and cities cope
    with the escalating crisis in child welfare.

    Simply put, President Clinton's proposal seeks to preserve and
    protect our most precious resource, the American family.

    In New York City, that I am proud to represent in this Congress,
    the American family is under siege. During the past 10 years,
    crack addiction, coupled with the AIDS epidemic and the upsurge
    in homelessness, has destroyed thousands of families and forced
    tens of thousands of children into foster care.

    Federal cutbacks to our major cities -- including aid for Federal
    housing -- have made matters worse for many families. New York
    City has seen a 63-percent cut in Federal aid during the past dec-
    ade.

    As a result of these factors, the number of New York City chil-
    dren in foster care has tripled in 6 years, from 17,000 to 54,000.
    It is a staggering number. The city is now spending $1 billion a


    25

    year on foster care. Less than half of it is eligible for Federal reim-
    bursement.

    New York City has the largest human service delivery system in
    the country, and every day, every hour, the calamity continues. In
    New York City, a child is reported neglected or abused every 13
    minutes. Between the start of this hearing and lunch time, a dozen
    New York City children will be reported at serious risk.

    As a mother of two young daughters, I shudder when I think of
    the lives of these children, especially children abandoned as a re-
    sult of parental drug abuse.

    Mr. Chairman, when I ran for Congress last fall, I shared the
    President's commitment to help children escape this terrible cycle
    of poverty, drug abuse, and child neglect. Like many Americans, I
    was heartened when the President offered a number of innovative
    ideas to create new support programs for parents and children.

    President Clinton is the first President in 12 years to seek a fun-
    damental change in the way we approach child welfare services.

    This proposal sets a new direction for our States and cities and of-
    fers hope for millions of impoverished families in America.
    The President has proposed a new capped entitlement program
    to promote cost-effective family support services, so that troubled
    families can get help before they begin to disintegrate. Over the
    next 5 years, the proposal would provide $1.7 billion to set up these
    programs, including over $85 million for New York State.

    Money alone will not solve the child welfare crisis in this coun-
    try. Policies and practices cry out for review and reform. Social
    workers and child abuse investigators need to be better trained and
    better supervised. We also need to place a stronger emphasis on
    finding the best possible placement for children.

    Right now, in New York City, 20 percent of our foster care chil-
    dren are on the adoption track, but only 2 percent a year are actu-
    ally placed for adoption.

    In addition, I urge my colleagues to be aware that now, more
    than ever, the American people are demanding that they get what
    they pay for. If we pass this legislation to help preserve American
    families, we need to make sure that cities and States distribute
    these funds directly to who is providing these services and where
    it is most needed, and not use these funds to replace State funding
    for programs that already are in place, which has happened many
    times in New York City.

    As a former member of the New York City Council, I am aware
    that such budget juggling goes on all the time and it cannot be al-
    lowed to continue. I want to work with this panel in developing
    language to ensure a direct passthrough of funds to communities
    or cities that are delivering the services.

    In New York City, although city officials will not discuss this
    publicly, none of the IV -- B money reached the child welfare system.
    In addition, many of our education targeted dollars do not get to
    the city.

    Most recently, a day care advocate group issued a report stating
    that, of the $54 million slated for day care slots in New York City,
    it resulted in an additional slotting of only 212 slots for children.
    Mr. Chairman, before concluding, I would like to say a few words
    on behalf of my bill, the Standby Guardianship Act, which has been


    26

    referred to your subcommittee, and which is an example of improv-
    ing the existing system without costing the taxpayers any money.
    H.R. 1354 addresses the needs of a growing number of children
    left motherless by AIDS and offers a cost-effective compassionate
    way to help prevent these children from entering foster care. It is
    an example of how we can improve the system, without spending
    a dime.

    Before the end of the decade, an estimated 80,000 to 125,000
    children nationwide will lose their mothers to AIDS. The AIDS cri-
    sis is so new and its potential impact on the next generation so
    enormous, that many States simply have not had the opportunity
    to change their laws to accommodate the needs of this growing pop-
    ulation of AIDS orphans. As a result, in most States, chronically
    ill parents, including single mothers with AIDS, find it virtually
    impossible to resolve custody issues involving their children prior
    to death.

    State courts often determine the custody of children, without any
    direction from the deceased parent. In other cases, State judges
    overrule parental wishes expressed in wills. So instead of having
    the comfort of knowing in advance where they will live following
    the death of their mothers, many of these AIDS orphans end up in
    legal limbo, waiting months for the courts to determine custody.

    H.R. 1354 would require States to amend court procedures and
    close legal gaps, so that chronically ill parents could choose standby
    guardians for their children prior to death and keep them out of
    the uncertainty of foster care. The bill would help reduce the need
    for foster care, award peace of mind to desperate parents, and help
    children by settling custody issues as early as possible.

    New York State already has passed such a bill. Other States, in-
    cluding Illinois, Maryland, and the District of Columbia are consid-
    ering legislation. My bill represents a wakeup call for every State
    to consider such legislation.

    My bill would require no additional Federal funding. It is de-
    signed to be folded into the Family Preservation Act as an amend-
    ment to title IV of the Social Security Act. I hope you will give it
    your serious consideration.

    Mr. Chairman, I commend you and this panel for your efforts on
    behalf of the children of this Nation. I know you share my sense
    of urgency to save America's children.

    Thank you very much.

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