COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2916-17
BILL NO.: HCS for SCS for SB 597
SUBJECT: Creates the Adoption Awareness Law
TYPE: Original
DATE: May 3, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
|
General Revenue |
($906,427 to Unknown) | ($14,851,982 to Unknown) | ($24,340,231 to Unknown) |
| Scholarships for Foster Children Trust | $0 | $0 | $0 |
| Missouri CASA | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($906,427 to Unknown) | ($14,851,982 to Unknown) | ($24,340,231 to Unknown) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Federal | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 12 pages.
ASSUMPTION
Adoption Awareness Law
Officials from the Department of Social Services - Division of Family Services (DFS) stated they and officials from the Department of Health would jointly prepare a pamphlet that addresses adoption and foster care as an alternative to abortion. This pamphlet does not currently exist and would need to be developed. As agreed with the Division of Maternal Child and Health (DMCH), the DFS would be responsible for the printing costs for the pamphlet through State Printing. The DMCH would be responsible for the distribution of the pamphlets, thereby splitting the costs.
According to the DMCH, there would be approximately 25,500 mailings to include, private adoption agencies, DOH physicians, family planning clinics, DOH clinics, abortion clinics, and any other person or entity that requests such materials. If 50 pamphlets were provided to the 25,500 entities per year, on a black and white tri-fold brochure, the cost for printing would be approximately $38,250. No new employees would be needed. Costs were charged to the General Revenue Fund.
DFS indicated the provisions in section 210.975 may generate additional costs for the department as they would be responsible for reimbursing the hospital for any expenses incurred as a result of accepting and caring for an infant or child. However, DFS assumes that since the hospital is to notify DFS immediately upon assuming custody, the expenses would be minimal. Once the infant or child is in DFS custody, Medicaid covers any medical expenses.
Officials from the Department of Health (DOH) assumed the DOS would be responsible for the development and printing of materials. Estimated costs of for postage for an initial mailing to all doctors, family planning clinics, prenatal clinics, privately funded adoption agencies, Title X agencies, abortion facilities, and any other person or entity who requests such material are $47,685. The subsequent mailings to the estimated 25,500 entities would result in postage expense of $52,530 and $54,106 for fiscal years 2002 and 2003, respectively.
Officials from the Office of Secretary of State (SOS) assumes the rules, regulations, and forms issued by the Department of Health and the Department of Social Services could require as many as 50 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register as in the Code because cost statements, fiscal notes, and the like are not repeated in the Code. The estimated cost of a page in the Code of State Regulations is $26.50. The actual costs could be more or less than the numbers given. The
ASSUMPTION (continued)
impact of this legislation in future years is unknown and depends upon the frequency and length of rules filed, amended, rescinded, or withdrawn. Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.
Scholarships for Foster Children
Officials from Truman State University, Harris-Stowe State College, Central Missouri State University and Missouri Western State College assume the proposal would result in no fiscal impact to the institutions.
Officials from the University of Missouri assume the university would incur approximately $5.00 per student in administrative processing costs. Oversight assumes the university could accomplish the provisions of the proposal with existing resources.
Officials from the Department of Social Services assume the proposal would result in no fiscal impact to the agency.
Officials from the Coordinating Board For Higher Education (CBHE) assume the bill specifies two criteria that a former foster child must meet in order to qualify for assistance under this program: (1) the child "would have qualified for a federal Pell Grant if he or she had remained a ward of the state"; and (2) "has subsequently been adopted or had a permanent legal guardian appointed after age thirteen." Pell grants are awarded on the basis of expected family contribution (EFC) at the time of application for aid. (The EFC is the product of a complex needs-analysis formula outlined in federal law.)
The Department of Social Services, Division of Family Services (DFS), was contacted in order to provide information about the number of children that could be potentially affected. DFS indicated that in FY 1999, 66 children over the age of 13 were adopted, and 78 left DFS custody and went into a legal guardianship. This would indicate a pool of 144 children.
The bill provides that the scholarship amount will be equal to what the child would have received from the Pell grant had they remained a ward of the state. It seems likely that most, if not all, foster children who remain wards of the state have little income and few other assets at age 13 and would thus be eligible for maximum or near maximum Pell grants. Additionally, it is assumed that most, if not all, do not have significant changes in their financial situations between
ASSUMPTION (continued)
the ages of 13 and high school graduation. However, it is assumed that all qualified children would be eligible for maximum Pell grants as wards of the state. The maximum Pell grant for the 2000-2001 academic year is $3,300. This would yield an annual fiscal impact of $475,200.
There is no consistent pattern to increases in the Pell grant. Thus it is assumed that the maximum Pell amount will remain the same. It is assumed that a comparable number of foster children are adopted or taken into guardianship each year as were in FY 1999. This program would be first administered in FY 2002. Thus there would be no fiscal impact in FY 2001, a maximum impact of $475,200 in FY 2002; and $475,200 x 2 = $950,400 in FY 2003.
The CBHE would not require additional staff to implement such a program.
Based on discussions with officials from the Department of Social Services, the count of 144 children includes ages fourteen through eighteen. Therefore, approximately five age groups are represented. Therefore, Oversight has calculated 20% of the children as being college age in FY 2001, 40% in FY 2002 and 60% in FY 2003.
FY 2001: 20% x 144 x $3,300 = $95,040
FY 2002: 40% x 144 x $3,300 = $190,080
FY 2003: 60% x 144 x $3,300 = $285,120
Oversight has ranged the fiscal impact from zero, assuming not all of the children would attend a college or university.
Access to Birth Certificates
Officials from the Office of State Courts Administrator assume that this proposal will not fiscally affect their agency.
Officials from the Department of Health (DOH) assume that this proposal will affect total state revenue from the increase in birth certificate fee income. The DOH stated that they respond to approximately 30 requests daily regarding access to adoption records. The DOH also assumes that once the public is made aware a court order is no longer necessary more requests than the 30 per day currently are anticipated. The expected revenue is based on 30 new requests per day times 21 days in a month times 12 months a year times $10 a copy. This totals $75,600 in
ASSUMPTION (continued)
revenue per year for Fiscal Years 2002 and 2003 and $63,000 in Fiscal Year 2001.
The DOH responded that an additional Clerk-Typist II ($19,452) would be needed to accommodate the increase in requests by the third year. The Clerk Typist would process record requests, file adoption and paternity affidavit records, mail necessary correspondence, update computer records and prepare and provide update to local registrar's for issuance of new certificates. Expenses related to this proposal would be for salary & fringe benefits for one FTE, PC, system furniture, file cabinet, chair, office supplies, data processing, office & communication expense, envelopes, and postage. Cost of envelopes determined by 15 boxes (500 per box) times 22.50. Postage determined by amount of requests times amount of postage @ .33 per envelope. Total expense and equipment was estimated at $16,422. All revenue and costs are accounted for in the General Revenue Fund.
Grandparents As Foster Parents Program
Officials from the Department of Social Services - Division of Family Services (DFS) will need additional staff to service the projected increase in its Grandparents as Foster Parents (GPFP) caseload. DFS assumes all costs will be funded by the state general revenue fund since all TANF monies are obligated. DFS assumes the monthly average expenditure per case/per month to be $519 for monthly maintenance, child care, and other supportive services.
Prior to SB 387 being enacted into law in 1999, the Division of Family Services (DFS) did not have a reliable mechanism in place to accurately track the number of its GPFP cases. Since this time, however, system enhancements have occurred making tracking possible. Due to the decrease in age from 55 to 50, DFS experienced an increase of 56% from October 1999 - March 2000 or 9.3% per/month in its GPFP caseloads.
DFS will assume due to the age reductions from age 50 to 45 the same increase of 9.3% will occur (represents the increase in the GPFP caseload from the previous age reduction bought about by SB 387 during the previous legislative session). DFS assumes this growth rate will
continue through FY 2001, then reduce to 4.7% per/month through FY 2002, and finally decrease to a 2.3% growth rate per month through FY 2003.
DFS assumes the caseload for a Self-Sufficiency Case Manager (SSCM) is 72 cases. The SSCM will take and process applications for eligibility, provide case management services to Temporary Assistance cases, respond and answer both written and telephone requests for information or reported changes, and maintain all active cases in caseload. The annual salary for a SSCM is $29,184. Based on projections, DFS will need a total of 6 FTEs. These FTEs will be
ASSUMPTION (continued)
phased in at the rate of 2 staff per fiscal year to handle the increase in cases. DFS
assumes 1 Clerk Typist II will be needed to support the 6 SSCMs. DFS assumes the annual salary for a Clerk Typist II is $19,452. This FTE will be phased in for FY 2002. Expense and equipment will also be phased in following the same rate as staff.
Foster Care Reimbursement
Officials from the Department of Social Services - Division of Family Services (DFS) that current foster care rates are $316 per month per child and $216 per month per child for adoption subsidies. According to the United States Department of Agriculture, foster care reimbursement and adoption subsidy rates are expected to be $457.94 per month per child in FY2004. The DFS provided an extensive calculation of the additional costs.
In summary, the anticipated additional fiscal impact of this proposal, by year, would be:
FY 01 $0
FY 02 $12,918,826
FY 03 $12,918,826
FY 04 $12,918,826
The costs were split between state and federal funds at a rate of 72% state and 28% federal.
The foster care maintenance amount for the Grandparents As Foster Parents Program is tied to the current foster care reimbursement rate. DFS assumes all costs for the increased foster care maintenance rate to be funded by General Revenue since all TANF monies are obligated. The anticipated additional fiscal impact of this proposal would be $3,190,726 and $9,434,381 for fiscal years 2002 and 2003, respectively.
Persons Required to Report Child Abuse
Officials from the Department of Social Services stated the increased number of hotline reports is expected to be minimal and will be handled by existing Children's Services staff.
Officials from the Department of Corrections have not responded to Oversight's request for fiscal information nor have they provided a ten-year prison impact statement as required by Section 217.022 RSMo. However, Oversight assumes the proposal should not require
significant additional personnel or resources.
ASSUMPTION (continued)
Oversight assumes the local police and sheriff departments may have to provide some additional training related to this proposal; however, Oversight assumes these duties could be absorbed with existing resources.
Missouri CASA Fund
Officials from the Office of the State Courts Administrator (CTS) assume the administration of the CASA fund would have a fiscal impact on their office. CTS estimates that they will need one Court Specialist II position at a salary of $29,760 and expense and equipment costs of $11,182 to administer this fund for a statewide CASA program.
Officials from the State Treasurer's Office assume this proposal will have no fiscal impact on their respective agencies.
Oversight assumes the entire amount of funds transferred to the Missouri CASA Fund will be spent on programs. Oversight also assumes the amount appropriated to the CASA Fund by the General Assembly is unknown at this time.
Adoption Restrictions
Officials from the Department of Social Services - Division of Family Services (DFS) assume this proposal will not fiscally affect their agency. The DFS also stated the proposal is federally mandated by the Multiethnic Placement Act of 1994 as amended by the Interethnic Adoption Provisions of 1996.
Adoption Information Registry
Officials from the Office of State Courts Administrator assume this proposal will not fiscally affect their agency.
Officials from the Department of Social Services - Division of Family Services (DFS) stated that since the Adoption Information Registry is already an existing service provided to biological parents and adoptees, the proposal would add no additional costs to the DFS.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| GENERAL REVENUE FUND | |||
| ADOPTION AWARENESS LAW | |||
| Cost - Department of Social Services | |||
| Printing pamphlets | ($38,250) | ($39,398) | ($40,579) |
| Cost - Department of Health | |||
| Postage and supplies | ($47,685) | ($52,530) | ($54,106) |
| SCHOLARSHIPS | |||
| Cost - General Revenue Fund | |||
| Appropriation to the Scholarships for Foster Children Trust Fund |
($0 to $95,040) |
($0 to $190,080) |
($0 to $285,120) |
| ACCESS TO BIRTH CERTIFICATES | |||
| Revenue - Department of Health | |||
| Birth certificate fees | $63,000 | $75,600 | $75,600 |
| Cost - Department of Health | |||
| Personal Service (1 FTE) | $0 | $0 | ($20,948) |
| Fringe Benefits | $0 | $0 | ($6,441) |
| Expense and Equipment | $0 | $0 | ($16,422) |
| Total Cost - Department of Health | $0 | $0 | ($43,811) |
| GRANDPARENTS AS FOSTER PARENTS PROGRAM | |||
| Cost - Division of Family Services | |||
| Personal Service (7 FTE) | ($49,836) | ($142,584) | ($209,005) |
| Fringe Benefits | ($15,325) | ($43,845) | ($64,269) |
| Expense and Equipment | ($20,531) | ($35,553) | ($31,604) |
| Foster parent maintenance, child care, etc. | ($753,394) | ($2,076,184) | ($3,507,162) |
| Total Cost - Division of Family Services | ($839,086) | ($2,298,166) | ($3,812,040) |
| FOSTER CARE REIMBURSEMENT | |||
| Cost - Division of Family Services | |||
| Increased foster care reimbursements | $0 | ($9,301,555) | ($10,984,555) |
| Cost - Division of Family Services | |||
| Increased foster care reimbursements - Grandparents As Foster Parents Program |
$0 |
($3,190,726) |
($9,434,381) |
| MISSOURI CASA FUND | |||
| Cost - General Revenue Fund | |||
| Appropriation to Missouri CASA Fund | (Unknown) | (Unknown) | (Unknown) |
| Cost-Office of State Courts Administrator | |||
| Personal Service (1 FTE) | ($25,410) | ($31,267) | ($32,048) |
| Fringe Benefits | ($7,814) | ($9,614) | ($9,855) |
| Expense and Equipment | ($11,182) | ($4,326) | ($4,456) |
| Total Cost - CTS | ($44,406) | ($45,207) | ($46,359) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND | ($906,427 to Unknown) | ($14,851,982 to Unknown) | ($24,340,231 to Unknown) |
| SCHOLARSHIPS FOR FOSTER CHILDREN TRUST FUND | |||
| Income - Coordinating Board for Higher Education |
|
|
|
| Appropriation from General Revenue Fund |
$0 to $95,040 |
$0 to $190,080 |
$0 to $285,120 |
| Cost - Coordinating Board for Higher Education | |||
| Scholarships | ($0 to $95,040) | ($0 to $190,080) | ($0 to $285,120) |
| ESTIMATED NET EFFECT ON SCHOLARSHIPS FOR FOSTER CHILDREN TRUST FUND |
$0 |
$0 |
$0 |
| MISSOURI CASA FUND | |||
| Income - Office of State Courts Administrator | |||
| Appropriation from General Revenue Fund |
Unknown |
Unknown |
Unknown |
| Cost-Office of State Courts Administrator | |||
| Expenditures on CASA programs | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON MISSOURI CASA FUND |
$0 |
$0 |
$0 |
| FEDERAL FUNDS | |||
| Income - Division of Family Services | |||
| Draw down from federal government | $0 | $4,271,771 | $4,271,771 |
| Cost - Division of Family Services | |||
| Increased foster care reimbursements | $0 | ($4,271,771) | ($4,271,771) |
| ESTIMATED NET EFFECT ON FEDERAL FUNDS |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The proposal creates the "Adoption Awareness Law" to promote adoption. Section 191.975 outlines the education and promotion duties of the Division of Maternal, Child, and Family Health within the Department of Health with the cooperation of the Department of Social
DESCRIPTION (continued)
Services.
The Coordinating Board For Higher Education (CBHE) would provide college scholarships to any former foster child who would have qualified for a federal Pell grant because of his or her status as a foster child and has subsequently been adopted or had permanent legal guardianship appointed after age thirteen. The scholarship would be equal to the amount the foster child would have received from the Pell grant program if he or she had remained a ward of the state.
The Scholarships for Foster Children Trust Fund is created for the scholarships.
The proposal allows an adopted person 18 years of age or older born in Missouri to receive a certified copy of his or her original unaltered birth certificate from the state registrar upon written application.
The proposal decreases the age for grandparents in the Grandparents As Foster Parents Program from age 50 and over to 45 and over.
The proposal provides for a minimum foster care reimbursement rate to equal or exceed the foster care rates established by the United States Department of Agriculture. This proposal also provides for a subsidy rate for children placed in homes to equal or exceed the adoption rates established by the United States Department of Agriculture. The cost would be increased over the course of three years starting in FY 02.
The proposal adds jail and detention center personnel to the list of mandatory child abuse reporters.
The proposed legislation establishes the Missouri CASA Fund in the state treasury, to be funded by appropriations from the General Assembly as well as gifts, contributions, grants, bequests and other aid. The State Courts Administrator will administer and disburse the funds.
The proposal modifies the restrictions for placing a child for adoption.
The proposal allows adult siblings to register with the Department of Social Services - Division of Family Services adoption registry and allows biological parents to consent to disclosure of identifying information at the time of registry.
This legislation is not federally mandated, would not duplicate any other program and would require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of State Courts Administrator
Office of the State Treasurer
Office of the Secretary of State
Coordinating Board For Higher Education
Department of Social Services
Department of Health
Truman State University
Harris-Stowe State College
Central Missouri State University
Missouri Western State College
University of Missouri
Jeanne Jarrett, CPA
Director
May 3, 2000