Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Zanetti
ORIGINAL DATE
LAST UPDATED
3/2/07
3/16/07 HB 1300/aHAFC
SHORT TITLE Foster Care State Custody until 21
st
Birthday
SB
ANALYST Lucero
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to SB 48
Relates to Appropriation in the General Appropriation Act
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY07
FY08
FY09 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
Moderate* Moderate* Moderate* Recurring General
Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
*See Fiscal Implications
SOURCES OF INFORMATION
LFC Files
Responses Received From
Administrative Office of the Courts (AOC)
Children, Youth and Families Department (CYFD)
SUMMARY
Synopsis of HAFC Amendment
House Appropriations and Finance Committee amendment to House Bill 1300:
•
Strikes the word “custody" in the title and inserts in lieu “care"
•
Strikes the $5 million appropriation in its entirety
•
Clarifies that when a person in CYFD “custody reaches the age of eighteen, the person
pg_0002
House Bill 1300/aHAFC – Page
2
may elect to remain with the person’s former foster family, with the family’s agreement,
and the department shall arrange payment consistent with department foster care rates
and facilitate the person’s planned permanent living arrangement until the person reaches
the age of twenty-one".
Synopsis of Original Bill
House Bill 1300 appropriates $5,000,000 from the general fund to Children, Youth and Families
Department for foster care youth the ability to choose to remain in the custody of the state until
age 21. The bill requires the Children, Youth & Families Department (CYFD) to notify a
person who is in foster care at age 17 of the option to continue to receive services until age 21. If
the person chooses to receive transitional services, the bill requires CYFD to provide services,
housing, education and medical care to the same degree as provided before the 18th birthday and
for as long as the person remains in care until the 21st birthday.
FISCAL IMPLICATIONS
The HAFC amendment removed the appropriation; however, there would still be a moderate
impact to the operating budget. The impact can’t be determined because it is unclear how many
foster children would choose to stay with their foster families until they are 21.
The appropriation of $5,000,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of 2008 shall revert to the
general fund.
This appropriation is not part of CYFD’s request and is not included in the Executive
recommendation.
Administrative Office of the Courts (AOC) states that by maintaining state custody, the district
courts will be required to continue judicial reviews and permanency hearings for each child
choosing to receive transitional services. Such hearings are not currently conducted after the 18
th
birthday, representing new costs to the judiciary. HB 1300’s appropriation does not cover court
costs.
CYFD estimates that about 180 youths leave state custody each year upon their 18
th
birthday and
about one-half (90) of those will choose to receive transitional services and remain in state
custody. After age 18, an average of two to three hearings each year would be necessary, two
judicial reviews and one permanency hearing. The court could combine the permanency hearing
with one of the judicial review hearings.
For judicial costs, AOC estimates one hour of in-court time and two hours out-of-court time per
hearing and a minimum of 2 hearings. Out-of-court activities include reviewing reports and
other materials related to the case, preparing orders, etc. AOC estimates average judicial costs
and overhead at $175 per hour.
Judicial Costs and Overhead
In-court time/year $ 31,500
Out-of-court time/year 63,000
Total FY08 $ 94,500 (General Fund)
pg_0003
House Bill 1300/aHAFC – Page
3
For court-appointed attorneys, we estimate one hour of in-court time per hearing, and ten hours
out of court per case. Out-of-court activities include contact with the client and others involved
in the case, review of reports and other materials, and preparation for court; they do not
reflect
the hours spent traveling to consult with the child or others involved in the case. We estimate
average attorney costs at $50 per hour.
Attorney Costs and Overhead
In-court time/year $ 9,000
Out-of-court time/year 45,000
Total FY08 $ 54,000 (Court-Appointed Fee Fund)
Combined, the costs for court-related activities would be $ 148,500 for FY 08. These costs
would double in FY09, as a new group of about 90 youths reach their 18
th
birthday and choose
transitional services, thus requiring continued court jurisdiction. Costs would increase again in
subsequent years, as another group of 90 youths would reach their 18
th
birthday and choose
transitional services and continued court jurisdiction.
CYFD states, that there was a fiscal study done by a committee to begin considering the cost of
expanding services to youth transitioning out of foster care. The study assumed approximately
180 foster care youth age out of the system on a yearly basis. Calculations centered on the costs
to the Department of hiring new employees and training them, along with administrative support
to serve this population over a five year period. To adequately serve this new population of
youth at the level suggested in this bill, CYFD could potentially need as many as 25 to 30
additional FTE. These FTEs would be front line workers, supervisors and Children’s Court
Attorneys. Assuming a flat average rate of $54,120 annual salary and benefits cost per FTE,
CYFD would require an additional $1,353,000 to $1,623,600. As these FTE would be serving
youth over the age of 18, the State would not be able to claim any federal match to support their
positions/efforts. This figure does not include the fiscal resources that would be required to
administratively support and provide the overhead necessary to support these positions.
Estimating 1.75% additional administrative cost (office space, supplies, etc.) per FTE raises the
total to between $2.4 million and $2.9 million.
Additional cost would also include foster care maintenance for youth beyond their 18
th
birthday.
Assuming half of the emancipating youth would remain and assuming the current foster care
maintenance rate of approximately $470.00 a month, an additional $1.1 million would be
required annually. As youth over the age of 18 are not eligible for Title IV-E funds and other
available federal funding to serve this population is limited, the majority of this cost would be
borne by the State.
As the bill requires that youth would receive the same services as if under the age of 18, it
implies that the court oversight services would also be required. The fiscal implications do not
include an analysis of the additional cost to the courts that would result with the increased
requirements and caseload. Additional expenditures could be incurred should there be court
orders or other requirements to pay costs associated with housing, health care, and education
SIGNIFICANT ISSUES
The bill defines transitional living services as the same type and degree of services that children
in foster care receive, rather than the set of services designed to and provided to ensure a
pg_0004
House Bill 1300/aHAFC – Page
4
successful transition in adulthood and living independently. As it is written, the bill appears to
be an effort to extend foster care on a voluntary basis until age 21.
The language in the bill could be interpreted to include oversight of the courts. This conflicts
with the New Mexico Children’s Code which does not provide for such judicial review of
youth’s cases past their eighteenth birthdays. Some of the services listed in the bill would be
defined differently for a child in foster care than for an adult. For example, education services
provided by CYFD for a child in foster care focus on securing appropriate services from the
Public Education Department and educational advocacy. However, these services may not be
necessary or desired by a youth seeking to move into the job market. The bill also fails to
mention employment or job skills that are significant in transition.
The courts currently do not have jurisdiction over youths after the 18th birthday, so the bill will
increase the courts’ caseload by 90 cases in FY08, by 180 cases in FY09, and by 270 in FY 2010
and subsequent years.
Child abuse and neglect cases are among the most complex and time-
consuming in the court’s caseload. These types of cases often require the testimony of many
parties and expert witnesses, and for these youths, the court may call upon other state agencies
and organizations in the fields of education, housing, and health care to review the services
provided to these individuals. There is also the possibility that physical, emotional or
psychological trauma experienced by the youth would need to be addressed, which could require
more hearings.
PERFORMANCE IMPLICATIONS
The courts are participating in performance-based budgeting. This bill will have an impact on
the measures of the district courts in the following areas:
•
Cases disposed of as a percent of cases filed
•
Percent change in case filings by case type
The potential for increased caseloads could negatively impact the CYFD strategic plan and
General Accountability Act measure of “child welfare worker turnover rate."
ADMINISTRATIVE IMPLICATIONS
There will be an administrative impact on CYFD and the courts as the result of the increased
caseload and in the amount of time necessary to dispose of these challenging cases.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB 48 would also establish transitional services for youths aging out of the state foster care,
including additional court hearings as requested by the youth, but provide no appropriation.
TECHNICAL ISSUES
The bill does not have a provision for youths to opt out after the initial decision to stay in
custody after the age of 21.
The bill does not distinguish transitional services from services received in foster care.
pg_0005
House Bill 1300/aHAFC – Page
5
OTHER SUBSTANTIVE ISSUES
Federal funding via the John H. Chaffee Foster Care Independence Program does not serve all
youths who are eligible for services.
The bill does not address the importance of community agencies and other state agencies in
coordinating programs, services, and benefits to provide effective transition services to youth age
eighteen to twenty-one.
ALTERNATIVES
The Court Improvement Project (CIP) has been evaluating the provision of transitional services
to youth aging out of foster care. Last fall, a summit was convened and experts offered their
advice and suggested policies for consideration by the CIP Task Force. A specific committee
was formed to review existing state and federal laws, regulations, and services available, in order
to develop recommendations for CYFD, the courts, and others to implement. Existing services
are limited due to scarce resources and compounded by lack of access in rural areas.
Participating agencies will be enhancing services to the extent possible, but the initiative could
produce a request for legislative action during FY09. The task force anticipates that
recommendations for legislation will be made in advance of the 2008 session. Given the
complexity of the subject and the need for careful study of what programs are needed, what those
programs will cost, and the funding streams available for funding the programs, it would be
advisable to defer legislative action until the task force completes its work.
DL/nt