This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0302 - Establishes the "Grandparents as Foster Parents Program"
SB 302 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1094-02

BILL NO.: SCS for SB 302

SUBJECT: Establishes Grandparents as Foster Parents Program

TYPE: Original

DATE: February 24, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
Federal* (Unknown) (Unknown) (Unknown)
Total Estimated

Net Effect on All

Federal Funds

(Unknown) (Unknown) (Unknown)

* Unknown costs expected to exceed $100,000 annually.

ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator assume that this proposal will not fiscally affect their agency.

Officials from the Department of Social Services - Division of Medical Services (DMS) stated there is no fiscal impact to the DMS from this proposal. The DMS indicated that there is a requirement in the proposal to provide Medicaid services to the foster child. Medicaid services are available to the foster child, regardless of the relationship.

Officials from the Department of Social Services - Division of Family Services (DFS) assume:

1) That as of November 31, 1998 there were 1,816 children in the custody of DFS who were placed with relatives. They also assume that as of November 31, 1998, there were 959 children whom DFS provided supervision to. The majority of these children are placed with relatives.

2) The DFS also stated there are currently a number of children living with relatives who receive temporary assistance through income maintenance.

3) The DFS stated a population of families unknown to DFS at this point, may potentially apply for and receive assistance through the Grandparents as Foster Parents program.

The DFS stated that it is impossible to determine the number of children in the above categories who are actually placed with grandparents. This is because the DFS records that the children are placed with relatives, but do not record the relationship between the relative and the child. The DFS stated that it is also difficult to estimate the number of grandparents who would seek legal guardianship of their grandchildren. Therefore, the fiscal impact of this proposed legislation is unknown. However, it is possible to calculate a per child cost for each of the categories of children mentioned above as well as its impact upon current appropriation spending.

Children Currently in DFS Custody Moving to Guardianship

Foster Care TANF

Funds Funds

Monthly Maintenance $ 257.00 $ 257.00

Monthly Child Care * 51.25 51.25

Monthly Other Services 3.00 3.00

Total Monthly Cost $ 311.25 $ 311.25

* 25% of the children receive $205 in monthly child care.

ASSUMPTION (continued)

The costs outlined above are currently being charged to foster care appropriations at the rate of 66% general revenue and 34% federal funds. Shifting these costs to Temporary Assistance to Needy Families (TANF) would result in the entire cost being paid from the TANF Work First pool of funds.

Oversight notes that any changes for these cases results in a net of $0 impact for federal funds.

Children Currently Living with Relatives Whom Receive Temporary Assistance



Current TANF Grandparents as

Funds Guardians Funds

Monthly Maintenance $136.00 $ 257.00

Monthly Child Care * 51.25 51.25

Monthly Other Services 0.00 3.00

Total Monthly Cost $ 187.25 $ 311.25

* 25% of the children receive $205 in monthly child care.

This group of individuals would include both those children for whom DFS has supervision only who are living with relatives as well as those children living with relatives which Children's Services has no involvement. For this group of children the additional monthly cost per child to TANF would be $124.

Oversight assumes some children will join the program which would result in additional costs charged to TANF (federal) funds. The potential cost is unknown, but expected to be less than $100,000 annually.

Children and Families Currently Unknown to DFS

For this group of children the $311.25 monthly cost will be a new per month per child cost to TANF.

Oversight assumes some new children will come into the program which would affect TANF (federal) funds by an unknown amount, expected to exceed $100,000 annually. This estimate is assumes that more than 26 children will enter the program in one year as this proposal allows close relatives in the program if there are no grandparents for the child that wish to participate.



FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(10 Mo.)
FEDERAL FUNDS
Costs - Department of Social Services -
Division of Family Services
Additional Program Recipients (Unknown) (Unknown) (Unknown)
NET EFFECT ON FEDERAL FUNDS* (Unknown) (Unknown) (Unknown)
* Unknown costs expected to exceed $100,000 annually.
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(10 Mo.)
$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 establishes the "Grandparents as Foster Parents Program" to be supervised by the Division of Family Services. A grandparent will be eligible to participate in the program if he or she is at least fifty years old, is the legal guardian of a grandchild, and has participated in training. Any other close relative who is the legal guardian of the child or has legal custody of the child may participate in the program if all other requirements are satisfied and if no grandparent is willing to participate.

The program will provide reimbursement to grandparents based on current foster care payment schedules. It will also provide counseling, immunizations and health screenings, Medicaid services, child care, and transportation, among other services. Funding for these services will be provided through the state maintenance of effort funds. Grandparents who are under fifty years old or who do not wish to participate in the program may apply to the Division of Family Services for foster care reimbursement and assistance. Such assistance will be funded through Temporary Assistance for Needy Families funds and all requirements in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 will apply.

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

Office of State Courts Administrator





Jeanne Jarrett, CPA

Director

February 24, 1999