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F I S C A L I M P A C T R E P O R T

SPONSOR Vaughn

DATE TYPED 2/28/05

HB 775

SHORT TITLE Increase Foster Payment Reimbursement Rates

SB

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$1,168.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB681

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children Youth and Families Department (CYFD)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

House Bill 775 appropriates $1,168,000 from the general fund to

CYFD to increase the rate of

maintenance payments for foster parents caring for children in FY06.

Significant Issues

CYFD utilizes foster parents as the out-of-home placement of choice for children who have been

removed from their families for abuse and neglect. Foster families provide these children with

the best living arrangement and personalized attention. Many foster families adopt the foster

children they have in their homes if and when the children are freed for adoption. Foster families

are a critical resource for CYFD in providing permanency for children.

The last significant increase in foster care rates occurred in July 1994. In July 2001, rates were

increased; however, because some other expenses were included into the new base rate these ad-

House Bill 775- Page 2

ditional expenses absorbed the increase. Feedback from foster families suggests that the current

reimbursement rates account for many potential foster families who do not pursue licensure and

current families who leave the program.

Currently, CYFD has 958 foster families statewide. Finding placements for older children is par-

ticularly difficult. There are more than 2,100 children in the custody of the state because of abuse

or neglect, or alleged abuse or neglect. The annual number of children entering the system in

New Mexico continues to increase.

FISCAL IMPLICATIONS

The appropriation of $1,168,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

Several CYFD performance measures focus on the ability to recruit and retain quality foster care

families for children in state custody

BD/lg