The Child Care Fund is a collaborative effort between state and county governments which supports programs to serve neglected, abused, and delinquent youths in Michigan. This program is a significant and growing source of funding for these services. The Child Care Fund originated in 1955 with a series of "Foster Care Bills." They were designed to improve care for children under the jurisdiction of the juvenile courts by allowing the state to participate in covering costs. At first, CCF assistance was limited to youth in out-of-home placements such as foster homes or county-operated facilities.

In recent years, the CCF has added the ability to fund in-home care (IHC) services. These programs have the goal of providing necessary services while allowing children to remain in their own homes. Alternatively, IHC efforts may focus on allowing youth already in out of home placements to make an early return to their home. This approach allows for a large degree of county control and initiative and as a result, a wide variety of creative services have been approved for funding by the state CCF. The in-home-care programs include job skills training, intensive probation, community wraparound, mentoring, family counseling, electronic tether, and many other community-based services.

These services can be funded completely with CCF county money for a 50 percent state match. County CCF money can also be combined with other local, state or federal money to pay for services. The state would then reimburse only the Child Care Funded portion of the program. These community-based programs have provided many youths and their families the benefit of a more stable environment and have also reduced the need for expensive institutional placement.

The Child Care Fund also continues to support out of home placements where appropriate. Some specialized services and security can only be provided in a residential setting. If the safety of the youth, the youth's family, or the community is at risk, then an out-of-home placement may be required. The CCF supports a variety of out of home placements including foster homes, county-operated detention facilities, and a wide range of private child caring institutions. Whether providing in-home or out-of-home care, the programs supported by the CCF are designed and administered by Michigan's county courts and local DHS offices.

The services are paid for by county funds and then submitted for reimbursement to the state Child Care Fund Office, which is part of the Department of Human Services Child and Family Services Administration. To be eligible to receive CCF reimbursement, each county must submit an annual plan and budget to the state. The budgets are reviewed and approved by the CCF office. Each county must submit a detailed list of the services they wish to provide as well as a projection of anticipated expenditures. Each county must also undergo periodic on-site reviews by Child Care Fund staff to assure that program expenditures comply with CCF rules and policy.

To be eligible for reimbursement IHC programs must serve youth who are either (1) category I, II, or III neglect or abuse cases or delinquent youth under the jurisdiction of the court and (2) who either are at risk of being placed out of the home or who have a goal of early return from placement. Between 1980 and 1997 the state annually placed a cap on the amount of CCF reimbursement available to each county. The state would match county expenditures only up to a fixed dollar amount and any expenses beyond that limit were the county's responsibility. In July 1997 the Michigan Supreme Court ruled this cap illegal under the terms of the Headlee Amendment.

Following this decision, the cap was removed and the state now reimburses counties for 50 percent for all eligible CCF costs. Since that time, the Child Care Fund has grown from a relatively small program into a major funding source for DHS local offices and county Juvenile Courts. CCF reimbursement has increased from $32 million in fiscal year 1997 to $148 million in fiscal year 2003 and is projected to approach $171 million in fiscal year 2005.