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

SPONSOR Vaughn

ORIGINAL DATE

LAST UPDATED

2-2-06

HB 315

SHORT TITLE

18-21 YEAR-OLD FOSTER CHILD HOUSING

SERVICES

SB

ANALYST Lucero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$50.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB410 18-21 YEAR-OLD FOSTER CARE LIAISON

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

House Bill 315 appropriates $50.0 from the general fund to Children, Youth and Families De-

partment for the purpose of providing financial assistance to foster children eighteen to twenty-

one years of age who are seeking adequate housing.

FISCAL IMPLICATIONS

Federal Chaffee funds are used to support foster children transitioning into independent living.

This bill does not place the same limitations on use of the funds as the federal Chafee grant stipu-

lations, and would only be limited by the state procurement code, thereby allowing for more lati-

tude in application of the funds. This bill would allow CYFD to supplement Chafee funding to

youth when needed.

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert to the

general fund.

House Bill 315 – Page

2

The appropriation is not in the department budget request and is not part of the executive rec-

ommendation

SIGNIFICANT ISSUES

HB 315 requests an appropriation to CYFD for financial assistance to former foster children to

secure adequate housing. The assistance would aid young adults who have aged out of the foster

care system after turning 18 without being adopted or achieving permanent placement.

Although the bill has no direct impact to the judiciary, the AOC’s Court Improvement Project

(CIP) has recognized the importance of the issue of youth aging out of the foster care system

without having achieved permanent placement before reaching the age of majority who have lit-

tle support provided and few services available to them. After reaching the age of 18, former

foster children are no longer under court-supervised state custody, but the CIP is concerned that

they often transition to adulthood and independence with few connections, no familial ties or

support, little state assistance, and next to no means or resources of their own. The CIP has

adopted work on this problem to be an initiative in its strategic plan, and, in general, supports

efforts to improve the situation and assist youth who are transitioning from and young adults

who have aged out of the foster care system.

ADMINISTRATIVE IMPLICATIONS

CYFD will absorb any additional administrative services for developing and monitoring the cost

of the program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to SB410 18-21 YEAR-OLD FOSTER CARE LIAISON

TECHNICAL ISSUES

The appropriation may not be sufficient for a statewide program. The bill does not specify if this

appropriation is for a pilot in a certain region of the state, or if this is for pilot statewide program.

The appropriation does not specify the length of time a participant may qualify for benefits.

The appropriation should specify that the state funds are to fill in the gaps where federal funds

are not available or are limited. Priority should be federal funding for housing, then state funded

programs.

OTHER SUBSTANTIVE ISSUES

Foster care is a temporary haven for children living in unsafe conditions but one-quarter of the

500,000 children in foster care in the U.S. age out of the system. Many of them have a very hard

time making ends meet financially. They don't leave the foster care system with much in the way

of human capital, many don't go on to college, don't have a high school diploma, and have men-

tal and health problems. They have very unstable living arrangements. Many of the aged out fos-

ter children move around a lot, experience very high rates of homelessness, and many end up

getting involved with the criminal justice authorities or arrested or incarcerated. Nationwide, an

House Bill 315 – Page

3

estimated 30,000 adolescents age out of the foster care system each year. According to the Child

Welfare League of America, 25 percent become homeless, 56 percent are unemployed, and 27

percent of male children end up in jail.

The bill would assist CYFD to meet its mandate to serve youth aging out of foster care.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo.

DL/mt