Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
SF 2284 – Foster Care Services (LSB5954XS)
Staff Contact: Louie Hoehle (515.281.6561) louie.hoehle@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 2284 makes the following changes to the Aftercare Service Program:
• Allows a person to qualify for the Program if the person exited foster care services paid by
   the State when the person was 16 years of age or older.
• Requires the Department of Health and Human Services (HHS) to amend its administrative
   rules in the following ways:
   • Set the start-up allowance offered through the Program at a one-time payment of $900.
   • Set the vendor payments offered through the Program at $2,000 per year.
   • Set the extended services allowance offered through the Program at $2,000 for a one-
       year period calculated from the date of initiation of extended services.
   • Allow each person who is participating in the Program to receive the Preparation for
       Adult Living (PAL) stipend regardless of the person’s age, provided that the person
       meets all other requirements for the PAL stipend.
Background
The Program was established to assist persons leaving foster care and other court-ordered
services in making the transition to self-sufficiency. Participants are provided with support and
guidance through regular, individual meetings with a self-sufficiency advocate. Advocates
assess the participant for life skills and help the participant develop a self-sufficiency plan,
complete with developmentally appropriate goals and objectives. Financial assistance is
available to support individuals in achieving their self-sufficiency goals. Core aftercare services
are provided to individuals between the ages of 18 and 21. Extended aftercare services are
provided to individuals ages 21 and 22 who want additional support. Pre-aftercare services are
offered to youth aged 17 to help transition them into aftercare.
Currently, a person is eligible for the Program if the person is 22 years of age or younger and
exited foster care after the person attained 18 years of age.
Currently, the maximum start-up allowance offered through the Program is a one-time payment
of $600, the maximum annual vendor payments allowance is set at $1,200, and the maximum
annual extended services allowance is set at $1,200.
During FY 2023, a total of 535 persons ages 18, 19, and 20 received core aftercare services
and support, a total of 201 persons received extended services and support, and there were
190 referrals for pre-aftercare services.
Assumptions
• Under Senate File 2284, there may be approximately 100 persons who will be newly eligible
   to receive core services and support each year. The HHS estimates that approximately
   60.0% of eligible persons will participate in the Program.
                                                 1
•    There may be approximately 50 new extended services participants each year and
     approximately 25 new pre-aftercare participants each year.
•    Senate File 2284 will not apply retroactively, as the HHS intends to adopt administrative
     rules so that the Bill only applies to individuals who become eligible for participation in the
     Program on or after July 1, 2024. As a result, total core aftercare costs will be realized in
     FY 2026 and total extended aftercare costs will be realized in FY 2028.
•    Individuals may or may not participate in the Program every month or year that they are
     eligible.
•    The HHS estimates annual costs per new individual participating in the Program as follows:
     • Approximately $1,000 for individuals first entering the Program.
     • Approximately $7,800 for individuals receiving core services and support.
     • Approximately $3,600 for individuals receiving extended services and support.
•    Senate File 2284 may increase costs to the HHS by $135,000 for increased startup
     payments, vendor payments, and extended payments to participants.
•    Total costs to implement the Program are realized in FY 2028.
Fiscal Impact
Senate File 2284 is estimated to increase costs to the HHS for the Aftercare Service Program
as shown in Figure 1.
                     Figure 1 — Aftercare Service Program Costs Under SF 2284
                                            FY 2025       FY 2026       FY 2027         FY 2028         FY 2029
    New Pre-Aftercare Participants        $     25,000   $    25,000   $    25,000     $    25,000     $    25,000
    New Core Aftercare Participants            468,000       936,000       936,000         936,000         936,000
    New Extended Aftercare Participants              0             0             0         180,000         180,000
    Increased Payments to Participants         135,000       135,000       135,000         135,000         135,000
    Total                                 $    628,000   $ 1,096,000   $ 1,096,000     $ 1,276,000     $ 1,276,000
Source
Department of Health and Human Services
                                                                               /s/ Jennifer Acton
                                                                                 March 6, 2024
Doc ID 1447505
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
                                                  www.legis.iowa.gov
                                                             2
Statutes affected: 
Introduced: 234.46