MichFed 2025-2027 Advocacy and Policy Priorities and FY26 Budget : simplebooklet.com

MISSIONVISIONThe mission of the MichiganFederation for Children and Familiesis to influence public policy andpractice in support of the highestquality services to children andfamilies.Core values provide focus, drivedecisions, and are embraced by allmember agencies:All children deserve excellence inservice and our best efforts toensure they grow up in strongfamilies and supportivecommunities.Strategic advocacy is critical toassuring sound public policy andsufficient resources for qualityservices.Partnerships and collaborationare essential to providingeffective services and achievingsuccessful outcomes.Equity, diversity, andinclusiveness are vital elementsin the full continuum of humanservices. The Michigan Federation forChildren and Families envisionscommunities where all children,youth, and families thrive.MICHIGAN FEDERATIONFOR CHILDREN & FAMILIESCORE VALUESABOUT THE FEDERATIONThe Michigan Federation for Children andFamilies is a statewide nonprofitassociation whose 60+ memberagencies, all nonprofit community-basedorganizations, work through contractwith the Michigan Department of Healthand Human Services (MDHHS) to providesupportive services to children and theirfamilies throughout all 83 counties inMichigan.Our member agencies provide:A full continuum of behavioral healthservices in schools, home andcommunity, clinics, and certifiedcommunity behavioral healthclinics(CCBHCs)55% of foster care services100% of family preservation services100% of adoption services100% of residential treatment services100% of independent living servicesThe Federation retains the services ofthe multi-client lobby firm Public AffairsAssociates whose expertise in thelegislative arena helps assure ourmessage is heard by the appropriatepolicymakers. 2March 2025 • Michigan Federation for Children & Families •

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58 FULL MEMBERSACTS II Ministry for TeensAdoption Option, Inc.Bethany Christian ServicesD.A. Blodgett–St. John’sCatholic Charities of Ingham, Eaton & Clinton CountiesCatholic Charities of Jackson, Lenawee & Hillsdale CountiesCatholic Charities of Shiawassee & Genesee CountiesCatholic Charities of Southeast MichiganCatholic Charities West MichiganCatholic Social Services of the Upper PeninsulaChild & Family CharitiesChild & Family Services of Northwestern MichiganChild & Family Services of the Upper PeninsulaThe Children’s CenterChrist Child HouseCNS HealthcareEagle VillageFamily & Children ServicesFamily Outreach CenterFamily Service & Children’s AidFederation of Youth ServicesForever FamiliesFostering FuturesFostering SolutionsGenacross Family & Youth ServicesGreat Lakes Recovery CentersThe Guidance CenterGuiding HarborHands Across the WaterHeart for HomeHegira Health, Inc.Highfields, Inc.Holy Cross ServicesHomes for Black ChildrenHope Network Behavioral Health ServicesHouse of ProvidenceInsight Youth & Family ConnectionsJudson CenterMCHS Family of ServicesMiSideThe New Foster CareNew Light Child & Family InstituteNortheast Michigan Family Resource CenterOrchards Children’s ServicesSamaritasServices to Enhance Potential (STEP)Spaulding for ChildrenStarfish Family ServicesStarr CommonwealthTeaching Family Homes of Upper MichiganU.P. KIDSUpper Peninsula Family SolutionsVista MariaWedgwood Christian ServicesWellspring Lutheran ServicesWest Michigan Partnership for ChildrenWhaley Children’s CenterYouth Guidance Foster Care & Adoption4 AFFILIATE MEMBERSBridgeway Services, Inc.Children's Advocacy Centers of MichiganMichigan CASA, Inc.Michigan State University School of Social WorkFederationMembers3March 2025 • Michigan Federation for Children & Families •MEMBER MAP

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FULLY FUND HIGH-QUALITY SERVICESAdvocate for reimbursement rates that support thefull cost of providing high-quality services to childrenand families in Michigan.BUILD A FAMILY-FOCUSED CONTINUUMOF CARECollaborate to create a statewide continuum of carethat integrates a 2Gen approach to family well-beinginto child welfare and behavioral health systems.CENTER ON OPPORTUNITY FOR ALLPromote fairness and equality for all children andfamilies.MICHIGAN FEDERATIONFOR CHILDREN & FAMILIES2025–2027 ADVOCACY & POLICY PRIORITIESThe mission of the MichiganFederation for Children andFamilies is to influence publicpolicy and practice in support ofthe highest quality services tochildren and families.The Federation’sadvocacy effortsare guided by theseOVERARCHINGPRINCIPLES:4March 2025 • Michigan Federation for Children & Families •

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MICHIGAN FEDERATIONFOR CHILDREN & FAMILIES2025–2027 ADVOCACY & POLICY PRIORITIESChild WelfareExpand 2Gen Family Preservation Services StatewideStrengthen Coordination and Oversight of the ChildWelfare SystemExpand Resources and Opportunities for Older Youthin Foster CareEnhance Safety and Well-BeingSecure Adequate Medicaid Reimbursement RatesThroughout the StateReduce Administrative BurdensBolster the Behavioral Health WorkforceStrengthen and Expand the Certified CommunityBehavioral Health Clinic (CCBHC) Model Behavioral HealthNonprofit AdministrationEstablish Actuarially Sound Rates for All ContractedPrograms Foster Equitable Service DeliveryAddress the Escalating Costs of Nonprofit LiabilityInsuranceUphold Lawful Contracts and Practices 5March 2025 • Michigan Federation for Children & Families •

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Partner with MDHHS to increase utilization of family preservation programs to allfamilies meeting the eligibility criteria to keep families safely together and preventunnecessary removals and the associated trauma. Support the expansion of the MiFamily Together pilot program to become availablein all counties in FY27.Maximize federal reimbursement to fund preservation services in Michigan.STRENGTHEN COORDINATION AND OVERSIGHT OF THE CHILDWELFARE SYSTEMAdvocate for the establishment of a Child Welfare Council to facilitate coordinationacross the three branches of state government to ensure consistent coordination ofchild welfare improvement efforts. Partner with MDHHS to improve the processes and impact of oversight activities,including the Private Agency Compliance Unit. Align policy and practice solutions with the goals of the Modified Implementation,Sustainability and Exit Plan (MISEP) Agreement to maintain child safety. Ensure older youth in foster care receive the services they need at the right time bysupporting policies and funding that provide timely access to mental health supports,life skills training, and transition services for a successful shift to independent living.Broaden access to specialized programs that assist older youth in developingindependent living skills—including housing support, education and employmentopportunities, financial literacy, and connections to community resources.Strengthen continuity of care and remove barriers to accessing health and socialservices for youth aging out of foster care.EXPAND 2GEN FAMILY PRESERVATION SERVICES STATEWIDEEXPAND RESOURCES AND OPPORTUNITIES FOR OLDER YOUTH INFOSTER CAREENHANCE SAFETY AND WELL-BEINGSustain and expand the Child Welfare Protective Factors Training Initiative to equipprofessionals with the skills and knowledge to focus on the strengths of families andreduce child maltreatment. Partner with the MDHHS placement units to strengthen how appropriate livingarrangements for children are assessed and identified, improve data sharing, accessto services, and address gaps.Support efforts to expand access to MDHHS eligibility specialists to increase accessto Medicaid, food assistance, and child care subsidies. Extend the protections of Lisa’s Law and the Crime Victim’s Rights Act to privateagency foster care case managers, recognizing their essential role in the childwelfare system and ensuring they have equal legal protections as MDHHS casemanagers.ADVOCACY & POLICY PRIORITIESCHILD WELFARE6March 2025 • Michigan Federation for Children & Families •

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Ensure MDHHS and behavioral health providers have access to data collectedthrough cost reports to inform the annual actuarial analysis by Milliman, a third-partyconsultant retained by the state. Implement actuarially sound rates that fully cover the costs of quality behavioralhealth services, with built-in annual adjustments for inflation and rising costs.Standardize practices among Prepaid Inpatient Health Plans (PIHPs) to reimbursecontracted organizations in a uniform manner statewide to adequately cover costs.Address disparities in reimbursement rates between Community Mental Health(CMH), Certified Community Behavioral Health Clinics (CCBHC), and Medicaid HealthPlans for equivalent services. REDUCE ADMINISTRATIVE BURDENSContinue engagement with the Administrative Efficiency Advisory Committee toreduce administrative burdens such as the necessity of authorization processes anddocumentation requirements that create barriers to care, affect client engagement,and contribute to workforce retention challenges.Support AI-assisted technology to improve documentation efficiency whilemaintaining quality.Advocate for a standardized data collection process and a statewide ElectronicHealth Record (EHR) system maintained by MDHHS and accessible to all contractedorganizations.Minimize duplicative audits for nationally accredited contracted organizations.Address systemic workforce challenges, including recruitment and retention,through targeted strategies, university partnerships, and a statewide marketing andcommunications campaign in collaboration with contracted organizations to attractand retain behavioral health professionals.Expand incentive programs such as student loan assistance, paid internships,recruitment incentives, and longevity-based bonuses to attract employees to thebehavioral health sector.Advocate for higher reimbursement rates for employees with specialized educationand certifications in evidence-based and best practices that improve quality of carefor specialty services delivered.SECURE ADEQUATE MEDICAID REIMBURSEMENT RATESTHROUGHOUT THE STATEBOLSTER THE BEHAVIORAL HEALTH WORKFORCESTRENGTHEN AND EXPAND THE CERTIFIED COMMUNITYBEHAVIORAL HEALTH CLINIC (CCBHC) MODEL Improve access and flexibility of Evidence Based Practices (EBPs) within the CCBHCmodel, including for children and adolescents. Expand case management services for caregivers to ensure access to resources whilereducing children's exposure to caregiver-related challenges.Improve access to specialized training for CCBHC providers to expedite hiring andonboarding processes.ADVOCACY & POLICY PRIORITIESBEHAVIORAL HEALTH7March 2025 • Michigan Federation for Children & Families •

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Advocate for a transparent rate-setting process, led by an independent third-party, that aligns with actual service delivery costs. Ensure funding structures include a cost-of-living adjustment (COLA) to accountfor inflation, workforce retention, and service expansion for multi-year contracts. PROMOTE EQUITABLE SERVICE DELIVERYSupport policies that expand community-based services tailored to the uniqueneeds of each community.Advocate for funding models that prioritize prevention and early interventionservices, and promote permanency for children.Remove systemic barriers to service access, ensuring that all communities receivethe support they need.Conduct an assessment of nonprofit liability insurance challenges and trendsthrough the Federation's Liability Insurance Crisis Task Force to developtargeted solutions. Advocate for risk-sharing models or pooled insurance options to reduce costsfor an individual agency.Engage policymakers, state partners, insurers, and nonprofit leaders to developsustainable insurance solutions.ADVANCE EFFORTS TO IMPLEMENT ACTUARIALLY SOUND RATES FORALL CONTRACTED PROGRAMSLEAD EFFORTS TO ADDRESS THE ESCALATING COSTS OF NONPROFITLIABILITY INSURANCEUPHOLD LAWFUL CONTRACTS AND PRACTICES Implement contract terms that align with federal and state legal standards.Advocate for the reduction of unfunded mandates and unnecessaryadministrative hurdles.Secure timely payments and implement fair dispute resolution mechanismswithin state contracts.ADVOCACY & POLICY PRIORITIESNONPROFIT ADMINISTRATION8March 2025 • Michigan Federation for Children & Families •

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Health and Human ServicesFY 2026 Budget Priorities INCLUDE A COST-OF-LIVING ADJUSTMENT (COLA) IN ALLMASTER AGREEMENTS WITH CONTRACTORSWe are requesting a $6M appropriation necessary to fund a 2.5% rateadjustment to build an annual cost-of-living into all master contractagreements. This level of funding would allow for a COLA for ChildCaring Institution, Child Placing Agency Foster Care, Adoption,Independent Living, and Family Preservation statewide contracts. FULLY FUND ADOPTION SERVICES IN MICHIGANWe are requesting an additional $4.9M appropriation to theadoption support services line item to support the new values-based payment structure and rates paid to adoption agencies.FULLY FUND INDEPENDENT LIVING PLUS SERVICESWe are requesting an additional $1.9M appropriation to the fostercare line item to support necessary services delivered to youth inIndependent Living Plus (ILP) programs.FULLY FUND STATEWIDE FAMILY PRESERVATION PROGRAMSWe ask for your consideration in closing an $11.5M gap in thefamily preservation line item necessary to fund the existingfamily preservation contracts and expand the number of eligiblefamilies receiving these services.EXPAND ACCESS TO BEHAVIORAL HEALTH LOAN REPAYMENTWe ask for your consideration in providing $1.5M to ensure theBehavioral Health Loan Repayment Program (BHLRP) administeredby MDHHS is earmarked for nonprofit and community-basedpractice settings, which is currently ranked as priority groupnumber 3.FULLY FUND QUALITY FOSTER CARE SERVICES IN MICHIGANWe ask for your consideration in closing a $19.9M gap in the fostercare line item necessary to support services delivered bycommunity-based organizations in foster care and trial reunificationservices, raising current per diem rates by $9.80 per day to $70.00as outlined in Sec. 546(1).9March 2025 • Michigan Federation for Children & Families •

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ADOPTION SERVICES$2 million for a one-time payment to adoption providers toalleviate the significant financial strain they have endured whilepartnering with MDHHS to develop a new values-based fundingmodel. This funding will bridge the gap between the old paymentmodel and new payment model, allowing agencies to continue toprovide important adoption services and ensuring financialresources to support cases referred before the new contract.MIACE TRAINING FOR MICHIGAN’S K-12 SCHOOLS$3.5 million to support curriculum development, training, andevaluation to provide Adverse Childhood Experiences (ACE)training for K-12 school staff in Michigan.MICHIGAN CHILDREN’S INSTITUTE (MCI) STAFFING$500,000 to support three additional FTEs to handle the adoptioncase backlog. RESIDENTIAL TREATMENT, JUVENILE JUSTICE, ANDPSYCHIATRIC RESIDENTIAL TREATMENT FACILITYPLACEMENT INNOVATION GRANTS$5 million for agencies to develop proposals to create servicesand invest in infrastructure that will increase placement optionsspecifically for youth with complex and acute needs for servicesin settings that can manage aggressive/assaultive behaviors.INDEPENDENT LIVING PLUS GRANTS$4 million to support the Independent Living Plus (ILP) grantrequests that were submitted to MDHHS in 2024, and were leftunfunded due to a lack of available resources. NEW CASE MANAGER TRAINING $1.2 million to support the cost of extending the MDHHS requiredPre-service Institute Training for foster care, licensing, andadoption case managers from 9-weeks to 12-weeks. 10Health and Human ServicesFY 2026 One-Time Priorities March 2025 • Michigan Federation for Children & Families •

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Health and Human Services FY 2026 Boilerplate Recommendations MODIFY SEC. 523Sec. 8-523. (1) Not later than February 15 of the current fiscal year, the department shallsubmit, to the standard report recipients, a report on the families first, familyreunification, and families together building solutions family preservation programs. Thereport must include both of the following: (a) Population UTILIZATION and outcome data based on families served. (b) For each program, information on any innovations OR PROGRAM EXPANSION thatmay increase child safety and reduce risk.(2) By October 1 of the current fiscal year, from the funds appropriated in part 1 forfamily preservation services, the department shall increase the rates established bythe increase provided in section 523(3) of article 6 of 2020 PA 166.INCLUDE PREVIOUS SEC. 529Section 529. From the funds appropriated in part 1 for family preservation programs,the department shall maintain INCREASE the total combined funding levels of thefamilies first, family reunification, and families together building solutions familypreservation programs BY 25% at an amount not less than the amount provided as ofSeptember 30, 2021. For the current fiscal year as the department moves towardimplementation of the federal Family First Prevention Services Act, Public Law 115-123,the funding available to serve families through the existing family preservationprograms shall not be reduced. 11MODIFY SEC. 546Sec. 8-546. 1) From the funds appropriated in part 1 for foster care payments and fromchild care fund, the department shall pay an administrative rate of NOT LESS THAN$60.20 $70.00 to providers of general foster care, independent living, and trialreunification services. unless the contractor fails to (a) ensure children placed in fosterare provided visitation sessions with siblings placed elsewhere at least 85 percent ofthe time in accordance with state policy or (b) ensure children receive face-to-facevisits from their caseworker not less than 95 percent of the time in accordance withstate policy. In the event the criteria in subsection (a) or (b) are not met, theadministrative rate shall be paid at a rate of $54.18 until the standards in subsection (a)or (b) are met at which time the rate shall return to $60.20.MODIFY SEC. 1764Sec. 8-1764. The department shall annually certify whether rates paid to Medicaid healthplans and specialty PIHPs are actuarially sound in accordance with federal requirements.The department shall provide to the standard report recipients a copy of the ratecertification required under this section and the approval of rates paid to Medicaidhealth plans and specialty PIHPs for any fiscal year for Medicaid capitation ratecertifications and any Medicaid capitation rate amendments not later than 5 daysfollowing receipt. Following the rate certification, the department shall ensure that nonew or revised state Medicaid policy bulletin that is promulgated materially impacts thecapitation rates that have been certified. THE DEPARTMENT SHALL ENSURE THEACTUARIAL RATES ARE ALLOCATED TO DIRECT SERVICE PROVIDERS CONTRACTING WITHTHE LOCAL CMHSP OR PIHP ENTITIES.March 2025 • Michigan Federation for Children & Families •

MichFed 2025-2027 Advocacy and Policy Priorities and FY26 Budget

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