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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Children, Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill

Senate Bill 184 appropriates $800.0 to CYFD to provide foster care services with private agencies for abused and neglected children and for increasing payment rates to foster care parents, institutions and agencies.

Significant Issues

The CYFD provides these services through the Protective Services Division(PSD). All foster homes must meet licensing requirements and receive pre-licensing training and these processes would have to be developed and monitored in private agencies.

FISCAL IMPLICATIONS

Senate Bill appropriates $800.0 from the general fund and is recurring. PSD currently receives a combination of general fund, federal funds and operating transfers to cover the costs of foster care in New Mexico. There are approximately 2000 children in out-of-home care. The department indicates that there is not a specified amount for a rate increase, if the foster care reimbursement rate increased by $1.00 a day, most of the appropriation would be expended.

ADMINISTRATIVE IMPLICATIONS

According to the department, they would be responsible for licensing and monitoring private foster care providers. This would require administrative oversight and at least one additional FTE.

TECHNICAL ISSUES

The department suggests the following amendment: Strike the words, "contracting for foster care services with private agencies for children", in line 18 and 19, and replace with " providing services for abused and neglected children in foster care and ...".

OTHER SUBSTANTIVE ISSUES

According to the department, the appropriation would not be sufficient to fund both an increase in the foster care reimbursement rate for existing foster homes and provide funds to contract for private foster home training and licensing.

These types of services are not typically contracted out through a professional service contract. PSD provides payments to private vendors through care and support payments.

RS/prr