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Kids Central might get financial lifeline

Last week, the agency was approached about setting up the credit it needs, the outgoing director says.

By MARY SPICUZZA
Published February 2, 2005

Help may be on the way.

The board of directors of Kids Central Inc., the private consortium that oversees child welfare in Hernando and four neighboring counties, explored possible new solutions to its financing crisis during an emergency meeting in Ocala on Tuesday.

"We talked a little bit about the options," Kids Central chief executive officer Janice Johnson said.

Kids Central has so far been unable to find adequate financing to stay in business. But last week, two separate parties - an individual and an agency - approached Kids Central about obtaining a line of credit, Johnson said.

The parties are exploring the viability of providing financing, she said.

Some of Kids Central's partner agencies also said they may be able to establish their own lines of credit, which would allow the consortium to stay in business with a smaller amount of financing.

"They'll pursue with their agencies whether or not they would be able to do that," Johnson said.

Kids Central had been trying to obtain a $2.5-million line of credit, Johnson said, but could lower that amount to $1.2-million if some of its partner agencies contribute financing.

Two banks told the consortium that they would need to see the organization's history during 12 to 18 months before making a commitment to provide a line of credit, Johnson said.

Meanwhile, as Kids Central has struggled to stay afloat, the consortium has faced criticism about its performance.

Kids Central will meet with the Department of Children and Families today at the agency's district office in Wildwood to address financial concerns, issues between the board and DCF, and performance problems.

DCF records show the district has issued five corrective action plans addressing various concerns since last July, when Kids Central began overseeing thousands of abused and neglected children in Hernando, Citrus, Marion, Lake and Sumter counties.

Those corrective action plans have addressed problems such as overdue invoices and financial records, child welfare legal services, monthly visits to children, adoption performance, and timely submission of missing children tracking forms, a Jan. 7 executive summary of Kids Central performance said.

Kids Central has struggled to perform adoptions, file required paperwork in the court system, submit invoices to DCF, and prevent children from being abused while they are in the system.

About 13.5 percent of children receiving services were abused again or neglected during the first quarter of the 2004-2005 fiscal year, DCF records show, meaning this district has the highest rate of repeat abuse in the state.

Kids Central also had the lowest ranking in the state in the area of adoptions, Johnson said.

At the end of last year, the consortium had finalized only 17 adoptions as reflected in HomeSafenet, DCF records said, while 112 children were awaiting adoption.

Johnson said Kids Central received those numbers only recently, and staffers are working to address concerns.

She said Kids Central has been performing well in other areas, including monthly contacts with children in its care.

However, DCF records show concern that "as of Jan. 24, 2005, there were 254 children who had not been seen at any location in over 45 days."

Kids Central has an $83.9-million competitively bid contract that went into effect in March and is expected to run through June 2007. The consortium has repeatedly cited concerns about limited funding and growing case loads.

During contract negotiations, there were 2,874 children being served in the district, Johnson said, adding that Kids Central is now handling services for about 4,100.

Johnson's last day with Kids Central will be Tuesday. She said 79 people have applied for her position.

Mary Spicuzza can be reached at mspicuzza@sptimes.com or 352 848-1432.

[Last modified February 2, 2005, 00:32:17]