2802

VETOES

Group Homes - Reimbursement for [[Actual]] Cost

[[FOR the purpose of requiring the State Department of
Juvenile Services to pay the actual cost of care,
diagnosis, training, education, and rehabilitation
of children to certain group homes and institutions;
increasing the tax levied on cigarettes; and
altering the discount percentage allowed on the sale
of certain stamps.

May 24, 1976.
Honorable John Hanson Briscoe
Speaker of the House of Delegates
State House
Annapolis, Maryland 21404

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed House Bill 57.

This bill changes the method of determining the
level of payments to be made by the Juvenile Services
Administration and the Department of Human Resources to
private nonprofit group homes and institutions under
purchase of service agreements.

At present, each of these agencies, with respect to
its program, determines a maximum monthly rate it will
pay for each child placed in one of these homes or
institutions. The rate depends upon the severity of the
child's problem, and there are several categories of
rates. For children requiring maximum care, the maximum
rate is $805 per month per child; for children requiring
intermediate care, the maximum rate is $690 per month per
child. All homes and institutions receive the same level
of payment.

House Bill 57 requires the two agencies to negotiate
annually a separate rate for each home and institution,
that rate to be based upon the cost of providing the
service as provided for in the budgets of the respective
homes and institutions. The agencies are authorized to
audit the financial records of the recipients and to
conduct a "needs assessment" of them; but, as worded, the
bill does not appear to permit either agency any
discretion to determine whether items of expenditure, as
provided in the recipients' budgets, are necessary or
reasonable. In other words, while the agencies can audit
the records to determine the accuracy of the budgets,
there is no authority to review the budgets to determine
whether expenditures made or proposed to be made, are
justified. The agencies are committed to make payments
based upon the budgets of the homes and institutions,
provided they are accurate.