BILL NUMBER: S4063
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the social services law, in relation to establishing a
program for financial transitional living services for foster children
 
PURPOSE:
The purpose of this act is to facilitate access to safe and stable hous-
ing for children aging out of foster care, and to provide financial
literacy and education through programs that can make them better equip
to manage their financial needs.
 
SUMMARY OF PROVISIONS:
The social services law is amended by adding a new section 394, to
create a program for financial transitional living services for foster
care children. In addition, the Office of Children and Family Services
shall enter into an agreement with financial institutions to establish
the Independent Development Account.
 
JUSTIFICATION:
A major new study reveals that an alarming share of young people who
age-out of New York City's foster care system are failing to obtain and
hold on to jobs, and that part of the problem is that city government
and foster care agencies are either not adequately focused on providing
workforce preparation services to these youngsters or not equipped to do
so.
For many children aging out of foster care, finding affordable and
stable housing is often difficult. The opportunity to hold a decent
stable employment, continue their education, or care for themselves is
made difficult by their inability to secure safe affordable housing. For
many, newly emancipated youth, financing first month's rent and deposit
without having appreciated credit, makes it impossible for them to sign
a lease, let alone furnish a home. Creating an Individual Development
Account (IDA) will be the first step in creating independence for foster
care youth.
With an Individual Development Account, foster care youth will be given
a match savings account that can be used to save for specific expenses
such as housing, and apartment down payment/deposit. Attendance in a
financial literacy and life style classes will be mandatory, and for
each fully attended and participated class session, a stipend will be
given that can be placed into an IDA and then later matched by the
Department of Social services. By initiating and implementing the IDA
program, foster care youths will learn how to be financially savvy and
how to prepare for, and maintain a job through classes and trainings
that would be taught through organizations in the city.
 
LEGISLATIVE HISTORY:
2023-24: S6844- Referred to Children and Families
2021-22: S5421 - Referred to Children and Families
2019-20: S5014 - Referred to Children and Families
2017-18: S1701 - REPORTED AND COMMITTED TO FINANCE
 
FISCAL IMPLICATIONS:
Based on latest statistics taken in December 2012, New York State total
number of foster care youth have significantly reduced to 20,539 which
is a significant reversal of trends from the 1980s and early 1990s. An
Individual Development Account for the final two years prior to obtain-
ing eligibility for emancipation is anticipated at one million dollars.
 
LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This shall take effect on the ninetieth day after it shall have become a
law. Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.