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Settlement Discussions End, but Child Welfare Reform Continues

Contact:  Karen Stock (517) 373-7394
Agency: Human Services


April 11, 2007

The Michigan Department of Human Services announced today that because of the state's budget crisis, it is unable to continue settlement discussions with Children's Rights, the New York-based organization that is suing the state over its foster care system.

"Even though we are unable to continue settlement talks at this time, we will maintain our focus on protection, prevention, community-based family services, and safe, permanent homes for children," Udow said. "We have already brought about significant change in Michigan's child welfare system over the past three years, and we're not letting up."

After the Children's Rights lawsuit was filed in August 2006, Udow asked for settlement talks to begin immediately, in an attempt to reach agreement and avoid spending scarce resources on costly litigation. The parties negotiated in good faith, she said, but without sufficient resources, the state could not commit to a settlement.

"Any approach to improving child welfare takes resources," Udow said. "We've seen it in other states, and it is true in Michigan as well. That is why Governor Granholm, in her proposed 2008 executive budget for DHS, has recommended investing an additional $35 million in child welfare enhancements as part of our ongoing fundamental reforms, which have already resulted in fewer children in the foster care system, fewer children re-entering the foster care system, and more children placed with relatives. The additional funding would allow DHS to move thousands more children into permanent homes through adoption or a new subsidized guardianship option, and make it possible for more relative caregivers to become licensed foster parents."

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