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F I S C A L I M P A C T R E P O R T
SPONSOR Lopez
DATE TYPED 2/23/05
HB
SHORT TITLE Increase Foster Parent Reimbursement Rates
SB 681
ANALYST Dunbar
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$1,168.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Children Youth and Families Department (CYFD)
Administrative Office of the Courts (AOC)
SUMMARY
Synopsis of Bill
Senate Bill 681 appropriates $1,168,000 from the general fund to
CYFD to increase the rate of
maintenance payments for foster parents caring for children in FY 06.
Significant Issues
CYFD utilizes foster parents as the out-of-home placement of choice for children who have been
removed from their families for abuse and neglect. Foster families provide these children with
the best living arrangement and personalized attention. Many foster families adopt the foster
children they have in their homes if and when the children are freed for adoption. Foster families
are a critical resource for CYFD in providing permanency for children.
The last significant increase in foster care rates occurred in July 1994. In July 2001, rates were
increased; however, because some other expenses were included into the new base rate these ad-
ditional expenses absorbed the increase. Feedback from foster families suggests that the current
pg_0002
Senate Bill 681- Page 2
reimbursement rates account for many potential foster families who do not pursue licensure and
current families who leave the program.
Currently, CYFD has 958 foster families statewide. Finding placements for older children is par-
ticularly difficult. There are more than 2,100 children in the custody of the state because of abuse
or neglect, or alleged abuse or neglect. The annual number of children entering the system in
New Mexico continues to increase.
FISCAL IMPLICATIONS
The appropriation of $1,168,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-
eral fund.
ADMINISTRATIVE IMPLICATIONS
Several CYFD performance measures focus on the ability to recruit and retain quality foster care
families for children in state custody
BD/lg