BILL #    HB 2559

TITLE:     DCS; federal benefits; dependent children.

SPONSOR:    Montenegro

STATUS:   House Engrossed

PREPARED BY:    Ryan Fleischman

 

 

 

Description

 

The bill would require the Department of Child Safety (DCS) to determine if children in DCS custody are eligible for federal Social Security Administration (SSA) or U.S. Department of Veterans Affairs (VA) benefits and apply for the benefits on behalf of eligible children.  DCS would no longer be able to use these monies on department costs but may use them on meeting the child's "unmet needs" beyond what DCS is required to provide.

Estimated Impact

 

Based on information from DCS, we estimate that the bill would result in a loss of current SSA/VA revenue to the agency of $4 million.  DCS currently uses this amount to defray their operating costs.    

 

DCS also estimates it would need 3 additional Full-Time Equivalent (FTE) Positions at an annual cost of $107,100 to meet the bill's requirements.  We lack information to determine the validity of the need for additional FTE Positions since DCS currently performs some of the activities the bill requires.

Analysis

 

A.R.S. § 8-453 currently allows DCS to serve as the representative payee to receive and administer SSA and VA benefits payable to children in DCS custody.  Statute allows the department to use these monies to defray costs for care and services.

 

According to DCS, the department spends around $4.0 million annually from about $6.2 million it collects annually as the statutory payee in SSA and VA benefits.  Most of these monies are spent on Congregate Group Care and Extended Foster Care.  DCS says it would need a $4.0 million appropriation to offset the loss of this revenue.

DCS also estimates that it would need 3 additional Program Services Evaluator FTE Positions at a total annual cost of $107,100 for salary and benefits.  This increase seems speculative as DCS already applies for these federal benefits as the statutory payee. While the bill does impose some new requirements including on the type of accounts these monies are to be deposited into, we lack information to determine the validity of the need for additional FTE Positions.

 

Local Government Impact

 

None

 

6/13/23