FEDERAL POLICY
Fostering Connections to Success Act Could Bring Dollars to States
[from CWLA’s Children’s Monitor 1.20.09]
Before Congress could pass the Fostering Connections to Success Act (P.L.110-351), the Congressional Budget Office (CBO) had to conduct a budget “score” or calculation of what the bill would cost and how much the budget saving portions of the bill would generate to make the bill cost neutral. Although CBO has a complex model for determining how much legislation will cost, the bottom line is that when the adoption delink is fully phased in over 10 years, the new law is expected to provide nearly a half billion more a year in federal adoption assistance funding.
When the option to extend foster care to age 21 is fully implemented by states, CBO projections for year 7 are that the law will provide $111 million a year in new federal funds. By year 10, states and tribes are expected to draw down approximately $737 million a year in additional federal funding. These costs, according to CBO scoring, are to be fully offset in part by states’ use of the kinship guardianship option. CBO concluded the kinship guardianship option would result in savings because children would be shifted out of more-costly foster care placements.
CBO also calculated the education provisions may generate savings, should children not be able to meet the law’s education requirements. The third item that offsets the cost is a change in the way federal operating funds are invested.
In part, CBO calculates the cost of these changes based on models that assume how much the new provisions will be used by states. The option to extend foster care to 21 possibly could provide states with more funding, depending on how quickly states take this option. Provisions such as expanding Title IV-E training funds to private agencies, which is expected to provide states with an additional $54 million a year, could provide more if states use the funds extensively. Likewise, states could see more funds if they are generous in their support for kinship families and are very successful in reaching the required education requirements for Title IV-E eligible children.
As is the case in almost all child welfare programs, the federal funds are not “free” and do require states to spend some funds. Although states are facing budget crises that could hinder their use of these new federal funds, the strategic use of these new federal dollars could help hard-pressed state budgets. For example, a state using state funds to cover the cost of kinship care might be able to use those same dollars as a match to bring in new federal dollars.
If part of a state’s foster care population includes children being cared for by relatives, it is in a child’s best interest that he or she not be reunited with his or her parents, and adoption is not appropriate, that state may be able to create a new guardianship program. This would allow the state to change the focus and support for that child and family from one of court oversight to support as a kinship family.
If a state has a number of private agencies paying the cost of training for child welfare workers in their agencies, new alliances and work between the state child welfare agency and private agencies could both leverage more federal dollars for training and create more training opportunities and cost savings for the state.
The Title IV-E program reimburses states at the same rate as Medicaid–the Federal Medical Assistance Program or FMAP rate. Some states, such as California or New York, receive a 50% federal match. A state with a 50% match will receive one federal dollar for every qualifying state dollar spent. On the other end of the fiscal spectrum is Mississippi, which receives a match of 75%, which means that for every state dollar spent, three federal dollars are provided for qualifying services. You can read the CBO score on the CWLA website.
Related posts:
- FEDERAL POLICY- Fostering Connections to Success and Increasing Adoptions Act of 2008
- FEDERAL POLICY – Fostering Connections to Success Act
- FEDERAL POLICY [From CWLA’s Children’s Monitor Online 3/23/09]
- Federal Policy – Fostering Connections to Success Act
- STATE POLICY AB 12—California Fostering Connections to Success Act
