COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1591-01
Bill No.: SB 0410
Subject: Increases foster care reimbursement rates to the rate established by the U.S. Department of Agriculture.
Type: Original
Date: February 7, 2001
FISCAL SUMMARY
FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
General Revenue | $0 | ($14,687,242) | ($27,239,794) |
Total Estimated
Net Effect on All State Funds |
$0 | ($14,687,242) | ($27,239,794) |
FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
Total Estimated
Net Effect on All Federal Funds* |
$0 | $0 | $0 |
*Revenue and expenditures of approximately $13 million annually net to $0.
FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
Officials from the Department of Social Services - Division of Family Services - Children's Services Unit (DFS-CSU) stated that per the USDA, the cost of raising children in 1999 was $408.33 per month for children aged 0-5 years; $453.33 per month for children aged 6-12 years; and $494.58 per month for teenagers. The DFS-CSU officials estimated the USDA rates for 2005 by applying a 2.7% COLA per year. The DFS-CSU officials provided an extensive calculation of the additional costs which cannot be re-produced in the fiscal note, however, they anticipate the additional fiscal impact of this legislation, by year, to be:
Foster Care Adoption Total
FY 03 $ 5,592,251 $ 8,907,590 $14,499,841
FY 04 $10,993,922 $17,024,448 $28,018,370
FY 05 $16,395,593 $25,141,306 $41,536,899
The costs were split between state and federal funds at a rate of 51.6% state and 48.2% federal.
Officials from the Department of Social Services - Division of Family Services - Income Maintenance Unit (DFS-IMU) stated the Grandparents as Foster Parents program is paid using Temporary Assistance for Need Family (TANF) funds at the same rate as the Foster Care Maintenance rates. The DFS-IMU officials assumed that the average cost per child in the Grandparents as Foster Parents program will remain constant at $270.33 per month (for all age groups). This rate reflects a Foster Care Maintenance rate increase of 5.0% for FY 01.
The DFS-IMU officials also assumed that the growth rate for the number of children receiving benefits through the Grandparents as Foster Parents program will continue to decrease by half in each fiscal year. The current rate of growth began to slow down in September, 2000. A 9.4% growth rate was applied for the remaining months in FY 01.
FY 00 40.8% - Growth of children in Grandparents as Foster Parents Program
FY 01 9.4%
FY 02 4.7%
FY 03 2.35%
FY 04 1.18%
FY 05 0.588%
ASSUMPTION (continued)
Per the USDA, the average monthly foster care rate is:
FY 00 $464.29
FY 01 $476.82
FY 02 $489.70
FY 03 $502.92
FY 04 $516.50
FY 05 $530.44
The DFS-IMU officials anticipate the additional fiscal impact of the proposed legislation, by year, to be:
FY 02 $0
FY 03 $7,171,080
FY 04 $12,717,478
FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
GENERAL REVENUE FUND | |||
Costs - Department of Social Services - | |||
Division of Family Services - | |||
Children's Services Unit | |||
Increased Foster Care Reimbursements | $0 | ($7,516,162) | ($14,522,316) |
Total Costs - Children's Services Unit | $0 | ($7,516,162) | ($14,522,316) |
Costs - Department of Social Services - | |||
Division of Family Services - | |||
Income Maintenance Unit | |||
Increased Foster Care Reimbursements - | |||
Grandparents as Foster Parents Program | $0 | ($7,171,080) | ($12,717,478) |
Total Costs - Income Maintenance Unit | $0 | ($7,171,080) | ($12,717,478) |
ESTIMATED EFFECT ON | |||
GENERAL REVENUE FUND | $0 | ($14,687,242) | ($27,239,794) |
FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
FEDERAL FUNDS | |||
Income - Department of Social Services | |||
Foster Care Reimbursements | $0 | $6,983,679 | $13,496,054 |
Costs - Department of Social Services - | |||
Division of Family Services - | |||
Children's Services Unit | |||
Increased Foster Care Reimbursements | $0 | ($6,983,679) | ($13,496,054) |
ESTIMATED EFFECT ON | |||
FEDERAL FUNDS | $0 | $0 | $0 |
FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
$0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal provides for a minimum foster care reimbursement rate meets or exceeds the foster care reimbursement rates established by the U.S. Department of Agriculture. The cost is to be increased over the course of three years starting in FY 03.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Social Services
Jeanne Jarrett, CPA
Director
February 7, 2001