BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 423 (Cooley) - CalWORKs: relative caregivers ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 16, 2015 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 423 would require a county welfare department (CWD) to immediately initiate specified application, eligibility determinations, and screenings of a foster child upon placement in the home of a relative. This bill would also require an infant supplement, as specified, to be paid under the CalWORKs and the Approved Relative Caregiver Funding Option (ARC) Program to a teen parent who is placed with his or her child in the home of a relative caregiver, as specified. This bill would also revise the provisions of the ARC Program, as specified. Fiscal Impact: Potentially major ongoing state costs (General Fund*) to immediately initiate applications and determine eligibility for AFDC-FC, CalWORKs, and ARC program benefits for foster children placed with relative caregivers. AB 423 (Cooley) Page 1 of ? Ongoing potentially major increase in AFDC-FC, CalWORKs, and ARC payments due to provision mandating eligibility for aid from the date of placement with the relative. Every one additional month of aid for 8,500 relative placements could cost in the range of $2.9 million to $7.3 million (General Fund*) depending on whether the county has opted into the ARC Program. Potentially significant ongoing state costs for CWDs to provide an explanation in-person or by telephone of the eligibility requirements and benefit amounts of the programs to relative caregivers. Assuming 30 minutes of social worker time for 8,500 relative placements would cost about $325,000 (General Fund*). Potentially significant ongoing state costs of about $250,000 (General Fund*) for CWDs to screen for SSI eligibility, assuming 30 minutes of social worker time. As existing law requires counties to screen for SSI for foster youth between the age of 16 and 17 years, no additional costs are assumed for this age group. Potentially significant ongoing state costs of about $250,000 (General Fund*) to provide the infant supplement of $411 per month to an estimated 50 cases statewide. *Pursuant to Proposition 30 (November 2012) any legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) only apply to local agencies to the extent that the state provides annual funding for the cost increase. Background: Existing law requires each county to provide cash assistance and other social services through the California Work Opportunity and Responsibility to Kids (CalWORKs) program using federal Temporary Assistance for Needy Families (TANF) block grant funds, state, and county funds. Existing law specifies the amounts of cash aid and supplemental amounts to be paid each month to CalWORKs recipients. Existing law establishes the Aid to Families with Dependent Children-Foster Care (AFDC-FC) program under which counties provide payments to foster care providers on behalf of qualified children. Under existing law, a child is eligible for AFDC-FC if he or she is placed in the approved home of a relative and is AB 423 (Cooley) Page 2 of ? otherwise eligible for federal financial participation in the AFDC-FC payment, as specified. Under existing law, if a county welfare department places a child who is in temporary custody or subject to the jurisdiction of the juvenile court with a relative or NREFM, the county is required to evaluate and approve or deny the home for purposes of AFDC-FC eligibility. Existing law enacted by SB 855 (Committee on Budget and Fiscal Review) Chapter 29/2014, the Human Services budget trailer bill, among other provisions, established the ARC Program, and appropriates no less than $30 million annually from the General Fund for this program. This program requires counties that opt to participate in the program to pay an approved relative caregiver a per child per month rate in return for the care and supervision of an AFDC-FC ineligible child placed with the relative caregiver that is equal to the basic rate paid to foster care providers for an AFDC-FC child. Proposed Law: This bill would require a CWD to immediately initiate specified application, eligibility determinations, and screenings of a foster child upon placement in the home of a relative caregiver, as follows: Requires a county to immediately initiate the application for CalWORKs utilizing the shortened CalWORKs application and simplified eligibility standards that pertain to determining a foster child's eligibility. Specifies that the beginning date of aid shall be the date the child was placed with the relative. Requires that concurrently with initiating the CalWORKs application, the CWD to evaluate and approve or deny AFDC-FC eligibility. If found ineligible for AFDC-FC, requires the CWD to initiate the application for and determine eligibility for ARC, if applicable. Specifies that if an application was submitted for CalWORKs eligibility containing all necessary information to determine eligibility for ARC, no new application is required. AB 423 (Cooley) Page 3 of ? Specifies the beginning date of aid for the ARC Program, as specified. If found ineligible for AFDC-FC, requires the CWD to explain the specific basis for this determination and shall screen the child for eligibility for SSI/SSP. Requires county social workers or eligibility workers to explain, in person or by telephone, the eligibility requirements and benefit amounts for the AFDC-FC, CalWORKs, and ARC programs, as well as any actions the relative could take to affect the child's eligibility for those programs. Requires all youth in foster care who have been determined federally ineligible to be screened by the CWD for potential eligibility for SSI/SSP, as specified. Requires an infant supplement, as specified, to be paid under the CalWORKs and ARC programs to a teen parent who is placed with his or her child in the home of a relative caregiver, as specified. Includes codified legislative intent language stating, "The Legislature recognizes the importance of approved relative caregivers to the state's child welfare system. Relative placements are the most utilized type of foster placement in California. In establishing the Approved Relative Caregiver Funding Option Program pursuant to this section, the Legislature intends to ensure that children placed with relatives are able to access state funding in an equal amount and in a similar manner to children in other types of foster placements." Requires receipt of funding through the ARC Program to begin immediately upon a finding that a child is ineligible for AFDC-FC and approval of the home, as specified. Requires the county to complete the application, to the AB 423 (Cooley) Page 4 of ? extent an application or other information is required. Prior Legislation: AB 1882 (Cooley) 2014 was similar to this measure and would have required a CWD to immediately initiate specified application, eligibility determinations, and screenings of a foster child upon placement in the home of a relative or nonrelative extended family member. This bill would have also required an infant supplement, as specified, to be paid under the CalWORKs and the ARC Program to a teen parent who is placed with his or her child in the home of a relative caregiver, as specified. This bill was held on the Suspense File of this Committee. SB 855 (Committee on Budget and Fiscal Review) Chapter 29/2014, the Human Services budget trailer bill, among other provisions, established the ARC Program, and appropriates no less than $30 million annually from the General Fund for this program. This program requires counties that opt to participate in the program to, effective January 1, 2015, pay an approved relative caregiver a per child per month rate in return for the care and supervision of an AFDC-FC ineligible child placed with the relative caregiver that is equal to the basic rate paid to foster care providers for an AFDC-FC child. Staff Comments: By requiring county welfare departments to immediately initiate specified application, eligibility determinations, and screenings of a foster child upon placement in the home of a relative caregiver, this bill imposes a state-mandated local program due to the higher level of service mandated on CWDs, potentially requiring a subvention of funds from the state. Although CWDs do initiate and determine eligibility for programs, existing law does not specify immediate initiation of applications and determinations of eligibility for CalWORKs concurrently with AFDC-FC, or require an explanation of the specific basis for the determination followed by a screening for SSI of these cases. This bill requires CWDs to screen youth for SSI eligibility upon AB 423 (Cooley) Page 5 of ? determination of ineligibility for AFDC-FC. Assuming 30 minutes of social worker time per screening, ongoing state costs of about $250,000 (General Fund*) are estimated. As existing law requires counties to screen for SSI for foster youth between the ages of 16 and 17 years, the costs noted above do not include inclusion of this age group. Additionally, requiring CWDs to provide an explanation in-person or by telephone of the eligibility requirements and benefit amounts of the AFDC-FC, CalWORKs, and ARC programs to relative caregivers will result in additional workload to CWDs. Assuming 30 minutes per explanation for 8,500 relative placements would cost about $325,000 (General Fund*) annually. To the extent additional time is required for eligibility workers to provide further information to caregivers would result in additional ongoing costs. By mandating eligibility for aid from the date of placement with the relative, this bill could result in the receipt of aid earlier and for additional months for about 8,500 relative placements. For every one additional month of aid provided, ongoing costs could range from $2.9 million to $7.3 million, depending on the program (CalWORKs vs. AFDC-FC or ARC). This bill also requires the provision of the infant supplement to be paid in the CalWORKs and ARC programs to a teen parent who is placed with his or her child in the home of a relative caregiver, as specified. This provision is estimated to result in annual costs of about $250,000 (General Fund*) to provide the infant supplement of $411 per month to an estimated 50 cases statewide. Prior to FY 2011-12, the state and counties contributed to the non-federal share of child welfare services expenditures. AB 118 (Committee on Budget) Chapter 40/2011 and ABX1 16 Chapter 13/2011 realigned state funding to the counties through the 2011 Local Revenue Fund (LRF) for various programs, including child welfare services and foster care. As a result, beginning in FY 2011-12 and for each fiscal year thereafter, non-federal funding and expenditures for foster care and child welfare services activities are funded through the LRF. Proposition 30 was passed by the voters in November 2012, and among other provisions, eliminated any potential mandate funding AB 423 (Cooley) Page 6 of ? liability for any new program or higher level of service mandated on the counties related to realigned programs, including child welfare services and foster care. Rather, legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment only apply to local agencies to the extent that the state provides annual funding for the cost increase. Local agencies are not obligated to provide programs or levels of service required by legislation above the level for which funding has been provided. To the extent it is determined that the provisions of this bill impose a higher level of service on local agencies or result in an increase in overall costs already borne by counties for the provision of child welfare services and foster care, the state could potentially elect to, but not be required to, provide funding for the cost increase. -- END --