BILL ANALYSIS Ó AB 2552 Page 1 ASSEMBLY THIRD READING AB 2552 (Holden) As Amended May 27, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Human Services |7-0 |Bonilla, Grove, | | | | |Calderon, Lopez, | | | | |Maienschein, | | | | | | | | | | | | | | |Mark Stone, Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |19-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Holden, Jones, | | | | |Obernolte, Quirk, | | AB 2552 Page 2 | | |Santiago, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Requires counties that participate in the Approved Relative Caregiver (ARC) Funding Option Program to pay approved relative caregivers an annual clothing allowance of $240 for each child eligible for benefits for a cumulative total of three years and with a sunset date of January 1, 2020. EXISTING LAW: 1)Establishes a state and local system of child welfare services, including foster care, for children who have been adjudged by the court to be at risk or have been abused or neglected, as specified. (Welfare and Institutions Code Section (WIC) 202) 2)States the intent of the Legislature to preserve and strengthen a child's family ties whenever possible and to reunify a foster youth with his or her biological family whenever possible, or to provide a permanent placement alternative, such as adoption or guardianship. (WIC 16000) 3)Requires a social worker, within 30 days of taking a child into temporary custody or whenever appropriate to identify and locate all adults who are related to the child by blood, adoption, or affinity within the fifth degree of kinship and provide for the purposes of informing them of their right to participate in the care and placement of the child, as specified. (WIC Code 309(e)) AB 2552 Page 3 4)Establishes the ARC program as an optional program for counties to provide funding to non-federally eligible foster children equal to the rates paid to federally eligible foster children. (WIC 11461.3) FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in potentially significant costs of approximately $750,000 (General Fund) beginning in 2016-17 and $1.5 million (General Fund) in 2017-18 and 2018-19 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 General Fund available and the unused portion is returned to the General Fund. If, including the clothing allowance, the total ARC payments do not exceed the $30 million available, a smaller amount would be returned to the General Fund, 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 General Fund appropriation, the difference would be a General Fund cost since Proposition 30 requires any new benefits mandated by the State to be paid for by the State. COMMENTS: Child Welfare Services: The purpose of California's Child Welfare Services (CWS) system is to protect children from abuse and neglect and provide for their health and safety. The CWS system seeks to help children who have been removed from their homes reunify with their parents or guardians, whenever appropriate. There are currently over 62,000 children and youth in California's child welfare system; over 7,600 of these youth are between the ages of 18 and 20. AB 2552 Page 4 CalWORKs: The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides monthly income assistance and employment-related services aimed at moving children out of poverty and helping families meet basic needs. Federal funding for CalWORKs comes from the Temporary Assistance for Needy Families (TANF) block grant. The average 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $506.55, and the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $704. According to recent data from the California Department of Social Services, over 497,000 families rely on CalWORKs, including over one million children. Nearly 60% of cases include children under 6 years old. Aid for Dependent Children-Foster Care (AFDC-FC) and federally eligible vs. non-federally eligible foster youth: AFDC-FC provides foster care benefits to youth and can be either federally-funded or state-only funded. In order to be federally eligible for foster care, the home from which the child was removed must meet Aid for Dependent Children (AFDC) eligibility criteria from 1996 AFDC in the month the petition is filed or in any of the 6 months prior to the month the petition is filed. In 1996, the income limit for a family of 3 to qualify for AFDC was $723. Because some foster youth are ineligible to receive federally funded foster care benefits, the State of California created State AFDC-FC, which is a blend of State and County funds and provides funding to foster children placed with non-relative foster parents at the same rate as foster youth who are federally eligible. However, prior to 2014, all foster youth who were placed with relative caregivers and who were determined to be federally ineligible for AFDC-FC received CalWORKs benefits and were funded at much lower rates than their non-federally eligible counterparts who were placed with non-relative foster parents. In response to this discrepancy, the State created the Approved Relative Caregiver Program. ARC Program: Established in 2014 by SB 855 (Budget and Fiscal AB 2552 Page 5 Review Committee), Chapter 29, Statutes of 2014, the ARC program increased 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. Eligibility criteria require that relative caregivers must be approved and live in California and meet health and safety standards that mirror those for licensed foster parents; and children must be under the jurisdiction of the juvenile court in a county that has opted into the ARC program and not federally eligible under Title IV-E of the Social Security Act. 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 a total of approximately 6,252 adult relative caregivers. Los Angeles County serves nearly 54% of the program's caregivers with approximately 3,431 adult relative caregivers served, according to information from DSS. 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." AB 2552 Page 6 PRIOR LEGISLATION: AB 1882 (Cooley) of 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 program. It died in the Senate Appropriations Committee. SB 855 (Budget and Fiscal Review Committee), Chapter 29, Statutes of 2014, established the ARC Program and established that participation for counties is optional. Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0003337