Sandwell Metropolitan Borough Council was criticised for spending 712 a day on a young person with complex needs.
But Angela Saganowska, executive director for social inclusion and health, said the coverage demonised children and created the impression that local authorities were acting irresponsibly.
"The person in question has not been anywhere near the criminal justice system and has tragic personal circumstances," she said.
High-quality care for children with complex needs could not be funded on the cheap, she added.
In October senior social care figures cited rising costs of caring for looked-after children as a key reason for major social services budget deficits (Children Now, 13-19 October 2004).
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