It seems to me that the Police Force could do a lot of the work that CPS now does. If actual criminal charges had to be laid BEFORE CPS could remove children, that would be a big start. Afterwards, if the Police had actual evidence of a crime, then CPS could be called in to FIRST see if the crime they are charged with actually puts the children in any danger, SECOND to find a family member or family friend willing to take the children, and THIRD to place them in a Foster home as a very LAST resort.

When you are charged with a crime, you actually get your day in court and are able to defend yourself, and the other side has to show some proof of the alleged abuse towards the children. But the way that it is now, criminal charges are rarely ever made and children are removed based only on a Social Worker's judgement and feelings, which can be VERY wrong. And in Family Court you do not get to have a Jury of your peers, and you do not really get much opportunity to provide evidence to defend yourself. The Family Court Judge usually just accepts the evidence provided by CPS as being factual.

Most children are taken on an accusation of "Neglect" and not "Abuse."
"Neglect" is VERY subjective. As you said, many of the neglect claims are simply related to poverty, and the money given to Foster Parents could instead be given to the REAL parents to eliminate the source of neglect.
I have a friend whose first contact with CPS was a claim that they had heard that she had to food in the fridge. She let them see her fridge and there was indeed plenty of food, but CPS kept trying to dig up something against her anyways.

In cases of claimed "Neglect", children should not be removed unless help has been offered (including money if need be) and if the family repeatedly refuses to accept help and the child continues in that state of "Neglect." For example, if food or housing or clothing is offered, but the children still remain hungry or homeless or lacking clothing.