BILL ANALYSIS
AB 2481
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Date of Hearing: May 10, 2006
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 2481 (Evans) - As Amended: April 5, 2006
Policy Committee: Human
ServicesVote:6 - 1
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill increases grant payments for foster family home (FFH)
providers and provides funding for the recruitment and retention
of foster parents and adoptive parents. Specifically, this
bill:
1)Increases the foster family home provider grant by 5 percent.
2)Requires future annual grant increases based upon the
California Necessities Index.
3)Expands current foster parent recruitment and retention
efforts by creating the Foster and Adoptive Parent Recruitment
and Retention Program.
FISCAL EFFECT
The impact of the grant increases for 2006-07 would be
approximately $30 million, growing by an additional $62 million
for the following year. This would result in a total grant
impact of $92 million for 2007-08. The impact of the recruitment
piece of the legislation is unclear, but could reach $15 to $20
million annually. Specifically, this bill would result in:
1)A 5 percent grant increase for foster family home providers
that would cost approximately $10 million for the second half
of 2006-07, growing by an additional $20 million in 2007-08.
2)An on-going annual increase based on the California
Necessities Index (CNI) that could add an additional $10 to
$20 million a year, depending on the overall caseload and the
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percentage increase for the CNI.
3)A 5 percent increase to FFH providers would also constitute a
5 percent increase of KinGAP guardians and adoptive parents
because the Adoptions Assistance Program (AAP) and the Kinship
Guardian Assistance Program (KinGAP) program rates are based
upon the foster family home rate. This would result in an
additional $20 million for those two programs for the first
half of 2006-07, growing by an additional $42 million in
2007-08.
4)An ongoing annual CNI increase for KinGAP and AAP that would
constitute an additional $20 to $30 million a year for future
years.
5)An unknown amount for expanding recruitment and retention
efforts. The Department of Social Services could decide to
maintain the current $7 million funding level for the program.
However, funding permitting, the legislation requires the
program to be expanded to include respite care, supplemental
payments, and liability insurance, among other retention
services.
COMMENTS
1)Background. Foster family home grant amounts have not been
increased since 2001 due to state General Fund limitations.
During that same time, the cost of living has increased over
20 percent. Partly because of the low grant and partly
because of the lack of supportive services available (i.e.
child care), many counties find it difficult to recruit enough
foster family home providers. As a result, many children end
up in more expensive foster family agency certified homes and
group homes that are intended for children that have
additional needs and difficulties. By not adequately funding
foster family homes in an effort to save state GF, the state
ends up spending more on foster care than is necessary because
counties are forced to place children in more expensive and
more restrictive settings.
2)Average Grant Costs. For June 2004-05, the average monthly
foster family home grant (including specialized care
increments) was $693 for federally eligible children and
$818.21 for state-only children. During that same period, the
average monthly grant for children in foster family agency
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certified homes was twice that amount, $1,687 and $1,723,
respectively. The most expensive placement for foster
children is a group home setting. The corresponding average
grants for group homes were $4,944 and $5,027 per month.
3)Consideration. While in making decisions regarding increasing
the foster family home rate it is important to remember that
both the KinGAP grant and the AAP grant (for adoptive parents)
are tied to the FFH rate. Therefore, they will receive an
increase as well. For KinGAP, the impact is not as significant
because there are only about 15,000 children benefiting from
that program. However, the AAP caseload continues to grow
steadily and is projected to provide grants for almost 75,000
children a month in 2006-07 (almost twice the number that are
projected to be in foster family homes).
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081