BILL ANALYSIS Ó
AB 2552
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2552 (Holden) - As Introduced February 19, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires counties that participate in the Approved
Relative Caregiver (ARC) Funding Option Program to pay approved
relative caregivers an annual clothing allowance for a
cumulative total of three years.
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FISCAL EFFECT:
Potentially significant costs of approximately $750,000 (GF)
beginning in 2016-17 and $1.5 million (GF) annually ongoing to
provide the clothing allowance. The State General Fund
appropriation for the ARC program is capped at $30 million.
Currently, ARC expenditures by counties do not use the entire
amount of GF available and the unused portion is returned to the
GF. If, including the clothing allowance, the total ARC payments
do not exceed the $30 million available, a smaller amount would
be returned to the GF, but the overall cost would already be
accounted for in the state budget. If, however, the additional
amount spent results in total ARC expenditures exceeding the
amount of GF appropriation, the difference would be a GF cost
since Proposition 30 requires any new benefits mandated by the
State to be paid for by the State.
COMMENTS:
1)Need for this bill. According to the author's office,
"Relative caregivers are the backbone of our child welfare
system. Relative foster placements are more cost effective,
tend to lead to more long term placement stability, and offer
better connections to the child's community, but these
children still don't receive funding equal to what they would
receive with a non-relative. This bill lessens the
discrepancy by providing additional funds to the families in
the Approved Relative Caregiver Program, in the form of a
clothing allowance. The clothing allowance would consist of
an additional $240 a year for three years, distributed
monthly, in counties that have opted into the program."
2)Approved Relative Caregiver (ARC) Program. Established in
2014, by SB 855 (Committee on Budget and Fiscal Review),
Chapter 29, Statutes of 2014, the ARC program increased
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payments to children placed with relative caregivers who do
not qualify for state or federal foster care benefits.
Previously, these children were only eligible for CalWORKs
benefit rate levels, which are much lower than foster care
benefits. The ARC program is county-optional and provides
State General Fund dollars for participating counties to
increase the monthly payments to approved relative caregivers
in an amount equal to the basic federal foster care rate. A
county may opt out of the program at any time, but must meet
notification and other requirements.
Those participating in an ARC program do not receive special
care increments, such as clothing allowances and infant care
supplements. Currently 48 of California's 58 counties have
opted into the ARC program and serve approximately 6,252
foster children.
3)Prior Legislation.
a) AB 1882 (Cooley), 2014, would have required a county
child welfare agency to determine whether relative foster
caregivers are eligible for assistance under the CalWORKs
program or through the Supplemental Security Income (SSI)
program. It was held on the Senate Appropriations
Committee's Suspense file.
b) SB 855 (Committee on Budget and Fiscal Review), Chapter
29, Statutes of 2014, established the Approved Relative
Caregiver (ARC) Program and established that participation
for counties is optional.
AB 2552
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Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081