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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

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

SPONSOR Ortiz y Pino

DATE TYPED 3/6/2005 HB

SHORT TITLE CYFD Social Security Assistance Program

SB 273/aSFC

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$300.0

See Amendment

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 112

SOURCES OF INFORMATION

LFC Files

Responses Received From

Children Youth and Families Department (CYFD)

Attorney General's Office (AG)

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee amendment to Senate Bill 273 provides for the following

changes:

•

Inserts a general fund appropriation of $300 thousand dollars. Reference “fiscal implica-

tions” below where CYFD identified five FTE’S to implement the provisions of the bill.

•

A change in the date ( December 31, 2005 to July 1, 2006) when CYFD is required to

screen all children in the custody of the department for eligibility for social security bene-

fits. This change addresses the concerns of CYFD noted in the second bullet under “sig-

nificant issues”

•

Clarifies language when the department makes a determination in the screening process

that the child will not be eligible for social security benefits. New language notes that this

will be done “on a case by case basis”. Addresses the concerns described in “Amend-

ments” below.

•

Changes language on the disbursement of money from accounts to the extent permitted

by federal law and in so doing, addresses the concerns described in the third bullet under

Senate Bill 273/aSFC -- Page 2

“significant issues”.

•

Clarifies language on the personal allowance of $30 dollars provided to each child bene-

ficiary.

Synopsis of Original Bill

Senate Bill 273 requires CYFD to screen all children within six months of entering into custody

for their eligibility to receive social security supplemental security income and survivor’s bene-

fits. The bill requires CYFD to pursue benefits for children who may be eligible, including re-

consideration and appeal of adverse decisions, when appropriate. The bill establishes proce-

dures for creating, managing and disbursing funds from maintenance accounts for children re-

ceiving benefits.

Significant Issues

Currently, social workers apply for social security for children that appear to be eligible. How-

ever, CYFD indicates that few social workers have the level of expertise in social security regu-

lations or the time to aggressively pursue benefits to the extent contemplated by the bill.

According to CYFD the bill:

•

Requires CYFD to create a unit of specialists in social security regulations to comply

with its provisions. CYFD currently has a similar unit of five positions that screens and

pursues federal IV-E benefits for children in foster care. No funding is provided in the

bill for the additional staff needed to implement the legislation.

•

Provides that every child in state custody on July 1, 2005 shall be screened for eligibility

by December 31, 2005. Even if the appropriation were added for the necessary staff, this

time frame could not be met, given the time needed for hiring and training the new staff.

•

Provides that net balances from social security accounts are to be disbursed directly to the

beneficiaries upon release from care. The Social Security Administration requires CYFD

to return any balance to them and they make the appropriate disbursement to the benefi-

ciary.

CYFD does not currently provide for two of the provisions outlined in this bill: C.2 (c): “each

child beneficiary shall receive a personal allowance of at least $30.00 each month for the child’s

personal use” and, C.2(d): “conserving [for the child] the social security benefits of the child in

lieu of reimbursing the department for foster care maintenance beginning ninety days prior to the

eighteenth birthday of a child in the custody of the department.”

CYFD provides for an allowance for children in care, which is allocated to the care provider and

passed on to children as the care provider determines appropriate. CYFD provides some older

children in care with their own maintenance payments from the age of 15 up to age 21, regard-

less of SSA/SSI eligibility. These children are also eligible for one-time independent living

start-up funds of up to $1,000 and up to $5,000 annually for higher educational expenses until

the age of 21.

The department argues that benefits for children in state custody should be the same regardless

of sources of federal funding and should be based on the needs of the child.

Senate Bill 273/aSFC -- Page 3

PERFORMANCE IMPLICATIONS

CYFD is concerned that the requirements of the bill would impact responsibilities of social

workers whose increasing caseloads could not accommodate the additional work.

FISCAL IMPLICATIONS

CYFD estimates that an additional five FTEs would be required to implement the provisions of

this bill. The bill contemplates a screening process for every child in state custody. A screening

tool would need to be developed and incorporated into the protective services management in-

formation system. CYFD expresses concern that the provision in the bill requiring CYFD to

conserve the benefits of the child in lieu of reimbursing CYFD for foster care maintenance be-

ginning 90 days prior to the eighteenth birthday of the child will have a negative fiscal impact for

CYFD. The extent of this impact would depend on the number of children legally emancipating

in any given time period. Additionally, CYFD would assume all costs related to implementing

changes in information systems and fiscal processes required to administer the monthly personal

allowance of $30.00 and to conserve the benefits for children ninety days prior to their eight-

eenth birthdays.

CYFD’s request for additional positions is associated with meeting the mandates of the bill that

every child in state custody be screened. After that process is completed, how many positions

are required to maintain the additional work.

ADMINISTRATIVE IMPLICATIONS

CYFD would be required to regularly monitor balances in trust fund accounts so as not to jeop-

ardize eligibility for medical assistance.

DUPLICATION

Duplicates HB 112

TECHNICAL ISSUES

The bill applies to “children residing in state custody”. Technically, youth in juvenile justice fa-

cilities remain in the legal custody of their parents while residing is a state facility. This bill has

been analyzed as applying only to children in the legal custody of CYFD because of abuse or

neglect. The term “residing in state custody” could have a broader application that would require

additional analysis.

AMENDMENTS

CYFD proposes the following amendment: “the department shall apply for benefits for children

who are screened in as likely candidates unless, the department determines after an individual

inquiry that an application would not benefit the child”. This provision is intended to address

situations where the Title IV-E benefit would be greater than the social security benefit; how-

ever, the term “individual inquiry” is not defined and redundant.

BD/njw:yr