Foster Youth Savings Through Relative Placement Can Equal Millions

Since 2008, most state agencies have bemoaned their slashed budgets and the growing cost to maintain services. A case in point is the $7.2 billion bill to taxpayers for social services for foster teens who age out. This estimated cost is based on the 24,000 foster children who aged out in 2013 and the social services they will incur over their lifetime. However, millions in tax dollars could be saved while much more is done to help foster youth.

One financial impact area is the placement of foster children. Once a child comes into foster care, the clock starts ticking for the social services agency to locate family members. The hope is for "relative placement," having a foster child cared for by a relative. The alternative is "foster placement," where the child goes to live with non-relatives. The difference in cost for placement can result in millions of dollars in savings for a state.

California presently pays $820 a month to a foster placement parent while allocating only $351 a month to a relative placement such as a grandparent of the foster kid. The difference in payments is $469.

For now we'll overlook the numerous studies that highlight that foster youth do much better when living with a family member or the glaring disparity in payments. Instead let's focus on the potentially large savings.

When one takes this difference in foster care payments, in this case $469, and multiplies it by each foster child, the savings are huge. California had 81,174 foster kids as of 2009. If each child had been in relative placement compared to foster placement, California would have had an extra $38 million to spend on supporting the economy, benefiting businesses and improving foster care services.

These savings are based on a perfect scenario and can never be fully realized. However, it should be clear that for the benefit of foster youth, taxpayers and the state, foster care agencies must have a goal to find family members so that whenever possible, foster kids are placed with relatives. To help ensure that as many foster children as possible are in relative placement, agencies must do their utmost to search out family members including those who still live in Mexico.

There's no denying that every state budget and agency took a hard hit because of the recession. However, instead of looking back, foster care agencies need to look for solutions that will allow for more and better care of foster children while saving millions in taxpayer dollars. It's time for the public to demand more from foster care agencies; otherwise, they will continue to waste resources while leaving foster youth with dismal futures and taxpayers with billion dollar tabs.

Regards,


  Richard

Richard Villasana
Find Families In Mexico
760-690-3995

PS. Like and follow us on Facebook for more information about foster teens.