BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                            Senator Carole Migden, Chair

                                           500 (Kuehl)
          
          Hearing Date:  5/23/05          Amended: 4//4/05
          Consultant:  John Decker        Policy Vote: Judic (7-0), Hum  
          Svc (6-0)
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   The bill makes a minor parent eligible to share  
          a foster care placement with his or her child in a "whole family  
          foster care" placement.  Specifically, the bill creates a state  
          program to:

             1.   Provide for foster care facilities designed for minor  
               parents and their children,
             2.   Require that when parent and child are placed in the  
               same foster care facility, the facility will receive full  
               foster care payment,
             3.   Require that the caregiver and the minor adopt a shared  
               responsibility plan for the minor's child.
          _______________________________________________________________
                            Fiscal Impact (in thousands)

           Major Provisions                    2005-06             2006-07        
                 2007-08            Fund
           Reduced state assistance         -$300           - $150           
               General
          Increased federal support              $200            $400       
          FF
          _______________________________________________________________

          STAFF COMMENTS:   This bill meets the committee's criteria for  
          referral to the Suspense File. 

          Under current law, when a minor and child are placed in the same  
          foster facility, the payment to the facility is often lower than  
          it would be if the family were in separate facilities.

          By making these statutory changes, the whole family foster care  
          placement will increase the state's eligibility for federal  
          assistance.  By making the change to encourage placing both  
          parent and minor in the same facility, the sponsors believe that  
          the bill will increase both federal assistance and the total  
          number of foster placements in California.










          
          The County Welfare Directors Association estimates net state  
          savings to the General fund of about $300,000 in 2006-07, and  
          falling amounts thereafter, as the number of whole family  
          placement rises.  Beginning in 2010-11, the association  
          estimates that annual state costs will increase as the state  
          savings for current  placements are offset by an increasing  
          number of placements.   Federal funds for foster care will  
          increase by about $200,000 in 2006-07 and rise to over $1  
          billion by 2010-11.