BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 500
                                                                  Page  1

          Date of Hearing:   August 17, 2005

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                     SB 500 (Kuehl) - As Amended:  June 16, 2005

          Policy Committee:                              Human Services  
          Vote:        6-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable: No           

           SUMMARY  

          This bill creates additional placement and funding options for  
          counties placing foster youth who are parents of children who  
          may or may not be dependents of the juvenile court.  
          Specifically, this bill: 

          1)Creates and defines a new foster placement option, the "whole  
            family foster home," to provide care to a teen parent and his  
            or her child. These foster homes will require adults who have  
            been specifically trained to aid in preparing the young parent  
            for caring for a child. 

          2)Establishes that a teen parent's juvenile dependency status  
            does not place a child at greater risk of or need for juvenile  
            dependency services or supervision. 

          3)Requires that when a child of a teen parent is not a juvenile  
            court dependent that a written shared responsibility plan be  
            developed by the teen parent, key individuals, extended family  
            members, the caregiver and a representative of the agency  
            providing supervision to the caregiver.

          4)Requires the Department of Social Services (DSS) to develop a  
            rate setting system for whole foster family homes. 

           FISCAL EFFECT  

          1)An unknown increase in annual costs in excess of $300,000 to  
            the extent this bill increases foster care rates.  Estimates  
            of how many young parents may be affected by this bill range  
            from 400 to more than 2,000. Therefore, even minor increases  








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            in rates paid on behalf of a teen parent and a child under the  
            newly created whole family placement rate will result in a  
            significant increase in foster care costs. 

          For example, a two percent increase in the rate paid on behalf  
            of 1,000 teen foster parents would result in increased costs  
            of $612,000. This estimate assumes an annual average cost of  
            foster care of $30,600 per teen and does not address the  
            child-related portion of a newly created rate.  Foster care  
            costs are shared by federal, state, and local governments  
            depending on the eligibility of the child. 

          2)Unknown savings to the extent this bill encourages the  
            placement of dependent parents and children together and in  
            less expensive foster care. Foster care costs range from $300  
            per month to more than $5,000 per month. 

           COMMENTS  

           1)Rationale  . This bill, co-sponsored by the County Welfare  
            Directors Association (CWDA) and the Children's Law Center of  
            Los Angeles, shifts incentives and bolsters programmatic  
            infrastructure to increase the likelihood a teen foster parent  
            and a child who is also a court dependent of being placed  
            together. 

           2)Existing Law  . Foster care is an open-ended entitlement program  
            funded by federal, state, and local governments. Children are  
            eligible for foster care grants if they are living with a  
            foster care provider under a court order or a voluntary  
            agreement between the child's parent and a county welfare  
            department. There are more than 75,000 children currently in  
            foster care in the state.

          Many long term foster youth face substantial social,  
            educational, economic, and health barriers both while in care  
            and upon leaving care. These youth have poor outcomes in many  
            areas compared to non-foster youth, including higher rates of  
            teen pregnancy. Although not much data is available about teen  
            parents in foster care, it is reasonable to assume they face  
            even greater barriers than other foster care youth in leading  
            healthy and stable lives.

           3)Related Legislation  . SB 1178 (Kuehl), Chapter 841, Statutes of  
            2004, required county welfare departments, to the extent  








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            possible, to make placements that support dependent teens and  
            their children. 


           Analysis Prepared by :    Mary Ader / APPR. / (916) 319-2081