The Division of Children, Youth and Families is the state administered child welfare services agency responsible for developing the Child and Family Services Plan and administering the title IV-B programs under the plan. The Division provides child protective services; services within the Promoting Safe and Stable Families program; family support, preservation, and reunification services; family foster care and kinship care services; services to promote the safety, permanence, and well-being of children with foster and adoptive families; adoption promotion and support services; and health care services for children in out-of-home care.

Arizona Housing Commission Task Force on Tax‐Exempt Mortgage Financing was established to review and report on 1) the availability of financing for single‐family housing and 2) the role of the private activity bond allocation process in facilitating the availability of housing for low‐to‐moderate income families in all areas of Arizona. The Task Force is required to issue an annual report of its activities, findings, and recommendations, including information reported to it by the four major Industrial Development Authorities and the Arizona Housing Finance Authority. These five entities issue tax‐exempt single‐family mortgage revenue bonds, mortgage credit certificates and other forms of Private Activity Bonds.

Housing plays a major role in the United States and Arizona economies. It is estimated that the housing industry accounts for one-fifth of our nation’s Gross Domestic Product. Despite the economic importance of housing, Arizona did not have a comprehensive approach or strategy for dealing with housing policy issues. In 1994, a Housing Summit addressed increasing concerns about the cost of housing. Participants from across the state met to discuss growing housing needs. A major outcome of the summit was the formation of the Affordable Housing Task Force, designed to review the state’s housing market and suggest ways the state could address housing affordability. Its principal recommendation was the creation of a permanent body that would focus attention on workable housing solutions. The Arizona Housing Commission was created by Executive Order in 1996 to serve as an advisory body to the Governor, the Legislature and the Arizona Department of Commerce, which is the primary agency currently responsible for housing programs. In 1997, the passage of House Bill 2011 formally established the Commission in statute.

The best setting for abused or neglected children who are removed from their homes is a family-based setting, such as with a relative or in licensed foster care. Because it is not family-based, congregate care, such as emergency shelters, group homes, and residential treatment centers, is the least preferred placement option. However, the number of Arizona children and the length of time they are in congregate care has increased and as a result, the costs for this placement type nearly doubled between fiscal years 2009 and 2013. Contributing to the increase in congregate care use is an inadequate supply of foster care homes; various state practices, including some related to permanency goals and activities; and inadequate access to behavioral health services. Although the Arizona Department of Child Safety has taken some steps to reduce the use of congregate care, it should consider other states’ experiences to identify multiple strategies for reducing its use.

This report addresses (1) expenditures for the recruitment, retention, training, licensing, and tracking of homes maintained by foster parents; (2) an assessment of whether the Department’s contract process of home recruitment, study, and supervision is the most appropriate means to provide these services; and (3) best performance measures to evaluate the effectiveness of these services. Although contracting appears to be an appropriate method for obtaining foster home recruitment-related services, the Department should improve how it contracts for these services.

This report includes both housing data and policy recommendations which are meant to stimulate debate and provide a menu of options for policy makers and intends to fulfill the following goals:
• Provide information on key socioeconomic trends which affect housing affordability including population
growth, household formation, age distribution and income growth.
• Communicate information on housing market trends including home ownership rates, rent levels and vacancy rates, home sales prices and new construction activity.
• Analyze cost components of typical new single-family housing and multifamily construction in Arizona.
• Identify potential regulatory and policy barriers to housing affordability.
• Recommend leadership and resource policies that will avert a potential housing crisis and improve housing affordability across the state.

A landmark assessment of infrastructure needs in Arizona was produced by the L. William Seidman Research Institute in May 2008 for the Arizona Investment Council (AIC): "Infrastructure Needs and Funding Alternatives for Arizona: 2008-2032", that addressed infrastructure needs in four categories: energy, telecommunications, transportation, and water and wastewater. The information from the AIC report is a major input to the report that follows. Other types of infrastructure — most notably education, health care, and public safety — also are analyzed here to provide a more complete picture of infrastructure needs in Arizona. The goals of this report are to place Arizona’s infrastructure needs into national and historical contexts, to identify the changing conditions in infrastructure provision that make building Arizona’s infrastructure in the future a more problematic proposition than in the past, and to provide projections of the possible costs of providing infrastructure in Arizona over the next quarter century.

In fiscal year 2013, the Department paid at least $14.6 million for transportation services for child protective services clients. However, the Department does not use performance measurement to manage and evaluate these services, including overseeing contracted transportation providers. The Department should develop and implement a performance measurement system to evaluate these services and ensure that this system provides the necessary data to evaluate the appropriateness and cost-effectiveness of contracting for these services. In addition, although the Department has implemented some procedures to help ensure proper payments to transportation providers for these services, additional steps would help address internal control deficiencies.