Welfare officials have delayed contract negotiations with the state’s foster care, adoption and family preservation contractors.

“New contracts were supposed to be in place by July 2004; now they’ll be in place by July 2005,” said Sandra Hazlett, director of children and family policy at the Department of Social and Rehabilitation Services.

Hazlett said SRS was considering major changes in the contracts and did not want to rush deliberations.

“There are lots of significant issues that need to be looked at,” Hazlett said. “For us to do the analysis, put it out for discussion, add it to the bid proposal and give everybody time to ask questions and do their own analysis — we couldn’t get it done in time.”

Initially, SRS had planned to reopen the bidding process this fall in hopes of the contracts being awarded in the first few months of 2004.

Some of the changes under consideration include combining the foster care and adoption contracts, improving performance and changing the way contractors are paid.

“We also want to look at how other states do some things,” Hazlett said.

Kansas privatized its foster care, adoption and family preservation services in 1997 after a lawsuit accused the state-run system of failing to meet federal standards. The lawsuit has since been settled.

Lawrence-based DCCCA has the family preservation contract for much of the eastern half of the state. Kansas Children’s Service League has the statewide adoption contract.

Kansas City, Kan.-based Kaw Valley Center has the regional foster care contract that includes Douglas, Jefferson and Franklin counties.

Kaw Valley Center objected to delay, arguing that contractors had spent months gearing up for negotiations and that “significant financial savings” would be lost by not combining the adoption and foster care contracts.

Hazlett said SRS had not decided whether to combine the adoption and foster care contracts.

DCCCA welcomed the postponement.

“It’s a good thing,” said Colleen Pederson, contract administrator at DCCCA. “There are lots of ideas being discussed; they need to be carefully considered before we enter new contracts.”

Rep. Brenda Landwehr, a Wichita Republican and chairwoman of the subcommittee that oversees the SRS budget, learned of the delay Tuesday.

“It’s good and it’s bad,” Landwehr said. “It’s bad because it leaves contractors up in the air for another year — I hate delays. But it’s good because it looks like SRS is thinking about dividing up the adoption contract among the foster care contractors.

“We need to do that because moving kids from one contractor to another appears to add six months to the process. I’ve seen cases where it’s added 18 to 20 months. That’s not good for kids.”

Currently, SRS spends almost $125 million a year on foster care, adoption and family preservation services.