California Legislature—2015–16 Regular Session

Assembly Joint Resolution No. 17

Introduced by Assembly Member Lopez

May 22, 2015

Assembly Joint Resolution No. 17—Relative to the Foster Care Tax Credit Act.

LEGISLATIVE COUNSEL’S DIGEST

AJR 17, as introduced, Lopez. Foster Care Tax Credit Act.

This measure would urge the President and the Congress of the United States to enact Senate Bill 664, known as the Foster Care Tax Credit Act, which would provide tax relief to short term foster parents by helping to cover the actual costs of caring for a foster child.

Fiscal committee: no.

WHEREAS, Foster parents make a positive and tremendous
difference in the lives of so many vulnerable children by opening
their hearts and homes. However, it is a constant challenge to
recruit and retain enough foster families to ensure each child is
placed in a family-like setting; and

WHEREAS, Caring for a child in foster care can be more
expensive than caring for one’s own biological children. Children
placed into foster care often have experienced significant emotional
and physical trauma and have higher incidences of medical and
behavioral health issues, resulting in additional costs to foster
parents. On average, current foster care rates would have to
increase almost 40 percent nationwide to provide for basic care;
and

WHEREAS, Foster parents do not always jump into full-time
foster parenting immediately. It is not uncommon for foster parents
to begin by providing shorter-term respite or emergency care before
“graduating” into more full-time foster parenthood. Likewise,
foster parents may intend to be full-time; however, their placements
are reunified with biological families after short lengths of time,
but these foster parents may have multiple placements for 3 to 4
months at a time. One-quarter (26 percent) of all children who
exited foster care in 2013 lived in foster care for less than six
months; and

WHEREAS, The shortage of foster homes has been widely
reported. According to the Los Angeles Times, “Demand for foster
beds exceeds supply by more than 30% nationally. Forty percent
of parents withdraw during their first year, and an additional 20%
say they want out, national studies show. Those families that
remain are often stuck in deep poverty themselves”; and

WHEREAS, The more people we can encourage to become
foster parents, the greater the number of children who will be
adopted from foster care. In the 2012 fiscal year, 50,663 of the
children who exited foster care nationwide were adopted. Of the
children adopted from foster care in 2012, 54 percent were adopted
by former foster parents. In 2012, that would have equated to
27,358 children adopted by former foster parents; and

WHEREAS, Senate Bill 664 of the 114th United States
Congress, known as the federal Foster Care Tax Credit Act, would
seek to help the many families who care for foster children for six
months or less, who unlike longer term foster families, are not
eligible for tax credit assistance under the federal Child Tax Credit,
to cover the actual cost of caring for foster children; and

WHEREAS, The Foster Care Tax Credit Act provides tax relief
to short term foster parents and helps cover the actual costs of
caring for a foster child by establishing an inflation-adjusted,
refundable tax credit of up to $1,000 per year, per foster child,
which is prorated by the number of months a foster child is in a
family’s care; now, therefore, be it

Resolved by the Assembly and the Senate of the State of
California, jointly, That because foster parents make significant
and meaningful contributions to the lives of so many vulnerable
children by opening their hearts and homes, the Legislature urges
the President and the Congress of the United States to enact Senate
Bill 664 of the 114th United States Congress, known as the Foster
Care Tax Credit Act, which would provide tax relief to short term
foster parents by helping to cover the actual costs of caring for a
foster child; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies
of this resolution to the President and Vice President of the United
States, the Speaker and Minority Leader of the House of
Representatives, the Majority Leader and Minority Leader of the
Senate, and each member of the California delegation to the United
States Congress.