Ismael Ahmed, director of the Michigan Department of Human Services, today reached an out-of-court agreement with Children's Rights Inc., resolving a federal lawsuit over Michigan's child welfare system.

"We embrace reform," said Governor Jennifer M. Granholm. "This agreement continues changes instituted years ago to better protect our children and new initiatives to reform and enhance Michigan's Child Welfare system."

Key components of the agreement - that affects child welfare staff and agencies in both DHS and its private sector partners - include:

• Reduce caseload levels that could result in as many as 700 new staff dedicated to children's services over the next five years in the public and private sectors.
• Increase emphasis on prevention and family preservation.
• Step up timelines and increased resources to achieve permanency.
• Increase capacity by licensing relative and non-relative placements.
• Immediate identification of all children in need of a permanency plan and priority to those awaiting adoption for over a year.
• Revise DHS management structure that elevates children's welfare and provides greater support and oversight for front line staff.
• Establish a position of medical director overseeing policies related to medications and medical services for children under DHS care.
• Increase education and training requirements for children's service specialists and managers.
• Create a new DHS Quality Assurance Unit to evaluate and make recommendations to improve child welfare policies, procedures and services.

"This agreement affirms the Granholm Administration's commitment to protecting children and supporting those who care for them," said Ahmed. "It will lower caseloads to national standards, appoint Kevin Ryan (former state child welfare director in New Jersey) as an independent monitor and enable DHS to meet or exceed federal standards for child safety, permanency and well being."

The anticipated cost of the reforms and improvements is approximately $50 million annually for the next four years using both state and federal funds. This represents a 6 percent increase over what the state would be expected to spend on children's services during that period.

The agreement supports the Governor's child welfare policy directions and builds on programs and funding included in the current year DHS budget that support:

• 278 additional children's services specialists.
• $2.3 million in contracts for licensing relative caregivers.
• The subsidized guardianship program.
• 13 additional training staff.
• A new administrative Federal Compliance Unit.
• An improved monitoring unit for purchase of service contracts.

Today's agreement will be submitted to U.S. District Court Judge Nancy G. Edmunds on Monday, July 7 for her approval and finalization.

For more information, please go to www.michigan.gov/dhs