Most foster parents would see cuts in new system

INDIANAPOLIS (AP) - Most foster parents in Indiana will see a cut in their daily state reimbursement under a new system to be used by the Indiana Department of Child Services.

The Journal Gazette of Fort Wayne reports the adjusted rates go into effect Jan. 1. It isn't clear how much money the state will save.

Agency spokeswoman Ann Houseworth said the daily base payment under the new system would average $20.34.

The new methodology announced Friday was the result of a federal lawsuit after the department tried to cut the rate 10 percent as a cost-saving measure in 2009. That would have cut the base payment from $25 a day to $22.50.

The newspaper said parents will receive some additional allowances for birthdays, Christmas and school activities.