Every one of Virginia's 8,000 foster children deserves a place to call home. Yet, according to a recent study funded by the Pew Charitable Trust, Virginia ranked dead last nationally in children "aging out" of the system without having a permanent home. Only 44 percent of all foster-care teens in Vir ginia find an adoptive home, a permanent guardian, or are able to go home -- compared with 72 percent nationally.

For too many children in Virginia's foster care system, months turn into years as they bounce between foster families and residential facilities. And research supports what we all know -- kids who age out of foster care without a lasting legal connection to an adult are far more likely to have limited education, end up homeless, and become involved with the criminal justice system.

After this past session, through Gov. Tim Kaine's leadership and the vision of the General Assembly, the picture for Virginia's foster children looks brighter. The reform package that was passed has the potential to transform foster care in Virginia from a system that relies on facilities to a system that relies on families -- a system that is focused on finding every foster child in Virginia a permanent and stable home in months -- not in years.

The governor and the General Assembly target several key areas necessary to improve permanent outcomes for Virginia's foster care youth.

First, we need to do a better job recruiting foster parents and relatives willing to care for children in the foster care system. The General Assembly included $1.8 million in the two-year budget to hire recruitment specialists and procure state-of-the-art technology to find those families willing to care for vulnerable foster youth.

Second, foster and adoptive families need adequate financial support to address the needs of the youth in their care. A recent national report comparing the actual expenses to the foster care rates paid cited Virginia rates as having to be increased by 39 percent to 64 percent (depending on the child's age) in order to be considered minimally adequate. In response to this, the reform package includes over $20 million to increase rates by a substantial 23 percent over the next two years.

Third, without well-trained caseworkers, progress on reform is impossible. Until now, Virginia was one of a few states that did not require foster-care worker training. The General Assembly endorsed the governor's proposal by providing nearly $800,000 for training and passed legislation to codify training for all caseworkers.

Finally and most important, Virginia must serve more foster youth in families instead of very expensive group homes and residential facilities. These types of facilities, known as "congregate care," are an important part of the spectrum of services and are appropriate in some circumstances for some children. But, congregate care facilities that are extremely expensive are clearly over-utilized in Virginia, especially as a first placement option.

One out of every two teenagers who enters Virginia's foster-care system is initially placed in a congregate care setting. And there is no evidence to indicate that congregate care is more effective than community-based foster care. To the contrary, substantial evidence supports the effectiveness of providing services to foster youth in families in the community.

The General Assembly endorsed an innovative proposal to reduce over-reliance on institutional care by providing direct, immediate financial incentives through additional state funds to localities for community-based care. Conversely, financial disincentives through higher local costs for institutional placements will be phased in to encourage the use of community-based alternatives.

Change is hard. The system is complex. But Virginia cannot continue to have the worst outcomes in the country for youth in foster care. We can do better, and the recently passed reform package moves us toward the day when rhetoric becomes reality -- when all of our children in foster care find permanent and loving homes in caring communities.
Mary Dunne Stewart is the policy director of Voices for Virginia's Children. She may be contacted at mds@vakids.org or through the Web site www.vakids.org.