Summary: Between 1983 and 1993, sharp increases in the number of foster children combined with unprecedented service needs led to a crisis in foster care. Reports of child abuse and neglect nearly doubled, and foster care caseloads grew by two-thirds. Demands for child welfare services grew not only because the number of foster children increased but also because families and children were more troubled and had more complex needs than in the past. Large numbers of preschool-age foster children, for example, are at risk of health problems due to prenatal drug exposure. Meanwhile, resources for child welfare services failed to keep pace with the needs of troubled children and their parents. Although foster care funding has increased dramatically at all levels of government, federal funding for child welfare services has lagged. State and localities have found it hard to meet the demand, despite the fact that they have more than tripled expenditures in some cases. As a result, state have adopted various measure to meet the needs of troubled children and their families while maintaining childrens' safety. Many states now offer family preservation services or place children with relatives to maintain family ties and save money. States are also increasingly considering the use of specialized foster homes for children with unique problems, including emotionally disturbed and medically fragile youngsters, to provide more family-like care at lower costs than institutions.
