COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2740-01
Bill No.: SB 693
Subject: Division of Family Services: Children and Minors
Type: Original
Date: January 3, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| 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 2003 | FY 2004 | FY 2005 |
| 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 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 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 2000 was $425 per month for children aged 0-5 years; $470.42 per month for children aged 6-12 years; and $514.58 per month for teenagers. The DFS-CSU officials estimated the USDA rates for 2006 by applying a 4.08% COLA per year. (The increase in 2000 rates over 1999 rates) 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 04 $6,817,863 $11,472,918 $18,290,781
FY 05 $13,635,726 $22,945,836 $36,581,562
The costs were split between state and federal funds at a rate of 69.72% state and 30.28% federal.
Officials from the Department of Social Services - Division of Family Services - Income Maintenance Unit (DFS-IMU) stated the Grandparents as Foster Parents (GAFP) 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 gave average monthly costs per child in the GAFP program as of November, 2001, of: $170 for ages 0 - 5; $207 for ages 6 - 12; and $230 for ages 13 and over. Section 453.325, RSMo, requires that GAFP rates be at least 75% of Foster Care Maintenance rates.
The DFS-IMU officials also assumed that the number of children receiving benefits through the Grandparents as Foster Parents program will remain at November, 2001, levels.
GAFP rate calculations are based on 75% of projected United States Department of Agriculture adoption rates for 2006 and a 3-year phase in of increases. (Anticipated GAFP rates for 2006 are: $405.24 for ages 0 - 5; $448.55 for ages 6 - 12; and $490.67 for ages 13 and older. Estimate numbers of children are: 447 ages 0 - 5; 1185 ages 6 - 12; and 689 ages 13 and over.)
Using a three-year phase in, additional costs would be $2,283,960.71 in FY 2004 and $4,567,921.42 in FY 2005.
Costs would be to the General Revenue Fund. (Grandparents as Foster Parents is not an entitlement program; therefore, all additional funds are subject to appropriation and the estimates are maximum fiscal impacts.)
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Costs - Department of Social Services - | |||
| Division of Family Services - | |||
| Children's Services Unit | |||
| Increased Foster Care and Adoption Reimbursements | $0 | ($12,752,333) | ($25,504,666) |
| Total Costs - Children's Services Unit | $0 | ($12,752,333) | ($25,504,666) |
| Costs - Department of Social Services - | |||
| Division of Family Services - | |||
| Income Maintenance Unit | |||
| Increased Foster Care Reimbursements - | |||
| Grandparents as Foster Parents Program | $0 | ($2,283,961) | ($4,567,921) |
| Total Costs - Income Maintenance Unit | $0 | ($2,283,961) | ($4,567,921) |
| ESTIMATED EFFECT ON | |||
| GENERAL REVENUE FUND | $0 | ($15,036,294) | ($30,072,587) |
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| FEDERAL FUNDS | |||
| Income - Department of Social Services | |||
| Foster Care Reimbursements | $0 | $5,538,448 | $11,076,897 |
| Costs - Department of Social Services - | |||
| Division of Family Services - | |||
| Children's Services Unit | |||
| Increased Foster Care Reimbursements | $0 | ($5,538,448) | ($11,076,897) |
| ESTIMATED EFFECT ON | |||
| FEDERAL FUNDS | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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 would provide for a minimum foster care reimbursement rate which 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 2004.
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
January 3, 2002