BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 665
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          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 665 (Torrico) - As Amended:  May 13, 2009 

          Policy Committee:                              Human  
          ServicesVote:7 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill expands the use of federal Improving Adoption  
          Incentive bonus funding to include other types of permanency for  
          older children, including guardianship and reunification.  
          Specifically, this bill: 

          1)Authorizes the use of federal Improving Adoption Incentive  
            bonus funding for any legal permanency outcome for older  
            children, rather than requiring it be spent only on adoptions.  


          2)Specifies that the bonus dollars are to be continuously  
            appropriated to the Department of Social Services (DSS) for  
            allocation to counties or to the DSS for counties in which DSS  
            serves as the adoption agency, regardless of fiscal year,  
            based on documented legal permanency outcomes for older  
            children in each county.

          3)Requires counties or DSS to expend incentive bonuses to  
            improve or sustain legal permanency outcomes for older  
            children.  

           FISCAL EFFECT  

          1)The state is expected to receive approximately $1 million in  
            new federal adoption incentive bonus funds.  This bill would  
            allow those funds to be spent on a broader range of permanency  
            options for older foster children. 

          2)This bill continuously appropriates federal Improving Adoption  
            Incentive bonus funding. The proposed continuous appropriation  








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            of funds is contrary to general committee policy to avoid  
            continuous appropriations. 

           COMMENTS  

           1)Rationale  . According to the author, at any given time,  
            approximately 45,000 (60%) foster youth in California are nine  
            years of age or older.  It is well documented that as a foster  
            youth ages, he or she is less likely to find a permanent home.  
             What is also well documented is that high percentages of  
            foster youth who do not find a permanent family, exit foster  
            care and may find themselves homeless and/or incarcerated.  

            This bill seeks to ensure that federal incentive payments  
            awarded to California for its successful efforts in increasing  
            the number adoptions of foster youth, ages nine or older, will  
            be distributed to counties to fund additional activities that  
            would further increase permanent homes for this group of  
            children.  The incentive dollars may be used for services such  
            as post adoption services, family finding to locate relatives,  
            guardianship recruitment of adoptive families who will make  
            homes for entire sibling sets, preparing youth for permanency,  
            and numerous other services for children and family.  The  
            author believes that the current language in statute needs to  
            be aligned with recent changes in federal law. The author  
            further states that directing this money to counties will not  
            create a negative fiscal impact on state general funds.

           2)Adoption Incentive Grant program  .  In October of 2008,  
            President Bush and Congress passed some of the most  
            significant foster care legislation in recent time.  The  
            Fostering Connections to Success and Increasing Adoptions Act,  
            among other provisions, renewed the 11-year-old federal  
            Adoption Incentive Grant Program. The program was created to  
            provide financial rewards to states for increasing numbers of  
            adoptions from foster care above established baselines.  The  
            act made the following changes:

             a)   Renewed the program for five additional years;

             b)   Doubled the incentive bonuses to states, from $4,000 to  
               $8,000, per adoption of older foster youth;

             c)   Doubled the bonuses, from $2,000 to $4,000, for  
               adoptions of special needs foster youth;








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             d)   Created a $1,000 payment per foster care youth adopted  
               that exceeds the state's highest rate of all adoptions from  
               foster care; and

             e)   Updated the adoption baseline year, from 2002 to 2007,  
               that states receive incentives.

            Bonuses are calculated on the number of increased adoptions  
            year over federal fiscal year (FFY) by the incentive amount  
            per category of child (e.g. special needs foster youth, older  
            foster youth) using the Adoption and Foster Care Analysis and  
            Reporting system (AFCARS).  The federal program stipulates  
            that the bonus money must be reinvested into services for  
            children and families and that the funds cannot be used to  
            supplant existing programs or as a match for other foster care  
            federal funds.  California would receive the bonus money one  
            year later and will have 24 months to expend it.  

            Per AFCARS, in FFY 2008, California finalized 7,580 adoptions,  
            and in FFY 2007, 7,481.  The difference represents an increase  
            of 99 more adoptions resulting in $1.093 million in federal  
            bonuses.  California would receive this money on 2009-10. The  
            2009-10 budget proposes using this funding to increase  
            adoptions. 

           3)Foster Youth Outcomes  . A recent study by the Casey Family  
            Program and the Harvard Medical School involving more than 600  
            case records and interviews with 500 former foster youth found  
            that a majority of these young people face major mental  
            health, education, and employment challenges. One-third of the  
            young people in the study had incomes at or below the poverty  
            level, one third had no health insurance, and nearly a quarter  
            had been homeless after foster care. In addition, the study  
            found that the rate of post-traumatic stress disorder (PTSD)  
            in this young population was more than twice as high as US war  
            veterans.  

            Other studies over the years have shown that ong-range  
            outcomes for youth who emancipate from California's foster  
            care system are, by any measure, disheartening.  In FY  
            2000-01, approximately 4,355 youth emancipated from the  
            system.  DSS reports that 65% of these youth needed safe and  
            affordable housing at the time of emancipation.  Moreover, a  
            2007 report from the Children's Advocacy Institute at U.C. San  








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            Diego highlighted the following findings:

             a)   Less than three percent go to college.
             b)   51% are unemployed.
             c)   Emancipated females are four times more likely to  
               receive public assistance than the general population.
             d)   In any given year, foster children comprise less than  
               0.3% of the state's population, and yet 40% of persons  
               living in homeless shelters are former foster children.
             e)   A similarly disproportionate percentage of the nation's  
               prison population is comprised of former foster youth.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081