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Better results for kids and families through research-informed policy

Generate Savings to Reinvest in What Works

Research shows states spend smarter when they re-invest resources from remedial, “deep end,” or last resort interventions to prevention-based strategies.  For example, reinvestment strategies shift costs from in-patient treatment, detention, and other restrictive and costly forms of out-home placement to evidence-based, in-home and community alternatives.

What Can Policymakers Do?

  • Reinvest in Family Reunification for Children in Foster Care . The Maryland Opportunity Compact is a reinvestment approach developed by the State of Maryland in partnership with the Annie E. Casey Foundation.  Using foundation funding as seed money to develop a family treatment drug court and services for parents with substance abuse disorders, the initiative was able to reduce the time children spent in foster care and achieve a positive return on the initial investment.
  • Reinvest in Permanent Guardianship for Children in Foster Care .  Illinois offered subsidized guardianship as an option to relatives caring for children who could not return home or be adopted.  The state documented savings of $2,294 per child and reinvested $90 million in additional guardianship subsidies and other unmet child welfare needs. 
States

Shifting Resources in Times of Recession.  In the grip of the 1991 recession, Vermont closed a state institution that had been housing developmentally disabled children for 70 years. With individualized planning and services, 156 residents were moved into home and community placements. The facility’s assets were sold and reinvested, and staff were redeployed.

States

Policy Options. States can reassess children in expensive, residential treatment centers to determine if their needs can be met in therapeutic foster care that is effective and less costly.