Kansas 2023 2023-2024 Regular Session

Kansas House Bill HB2581 Introduced / Fiscal Note

                    Division of the Budget 
Landon State Office Building 	Phone: (785) 296-2436 
900 SW Jackson Street, Room 504 	adam.c.proffitt@ks.gov 
Topeka, KS  66612 	http://budget.kansas.gov 
 
Adam C. Proffitt, Director 	Laura Kelly, Governor 
Division of the Budget 
 
January 31, 2024 
 
 
 
 
The Honorable Susan Concannon, Chairperson 
House Committee on Child Welfare and Foster Care 
300 SW 10th Avenue, Room 152-S 
Topeka, Kansas  66612 
 
Dear Representative Concannon: 
 
 SUBJECT: Fiscal Note for HB 2581 by House Committee on Child Welfare and Foster 
Care 
 
 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2581 is 
respectfully submitted to your committee. 
 
 HB 2581 would eliminate the requirement that the court ordered child support be paid when 
a child is in the custody of the Department for Children and Families.  The bill would also remove 
the requirement that child support payment requests be made in a child in need of care petition. 
 
Estimated State Fiscal Effect 
 	FY 2024 FY 2025 FY 2026 
Expenditures    
   State General Fund  	-- $1,028,503 $2,007,464 
   Fee Fund(s) 	-- (1,028,503) (2,007,464) 
   Federal Fund 	-- 	-- 	-- 
      Total Expenditures 	-- 	-- 	-- 
Revenues    
   State General Fund  	-- 	-- 	-- 
   Fee Fund(s) 	-- ($1,028,053) ($2,007,464) 
   Federal Fund 	-- 	-- 	-- 
      Total Revenues 	-- ($1,028,503) ($2,007,464) 
FTE Positions 	-- 	-- 	-- 
 
 
  The Honorable Susan Concannon, Chairperson 
Page 2—HB 2581 
 
 
 Foster care cases are often the most difficult and least cost-effective cases to handle, and 
support collected does not directly benefit Kansas families. The Department for Children and 
Families (DCF) indicates that enactment of HB 2581 would reduce the number of foster care cases 
being referred to Child Support Services (CSS) in Kansas and would eventually lead to a reduction 
in foster care collections. 
 
Foster care cases in the CSS caseload declined by 16.7 percent from FY 2022 to FY 2023. 
DCF estimated the FY 2024 caseload using that declining percentage. For FY 2023, children 
exiting foster care spent an average of 23.3 months in care. DCF estimates that foster care children 
currently in CSS would phase out in about two years.  Although the foster care cases in the CSS 
caseload would be phasing out, the expenses would remain at the same levels due to the contracted 
privatization of CSS child support collections.  Those costs would remain as contracted regardless 
of CSS caseload. 
 
The Social Security Act requires IV-E agencies to collect child support for children 
receiving foster care services when appropriate. However, guidance was issued in June 2022 
encouraging state welfare agencies not to secure child support in all foster care cases especially 
where it impedes the family reunification process and is generally not cost-effective. Based on 
estimates in the Social Welfare Fee Fund Report submitted in the most recent DCF budget, foster 
care collections are expected to be approximately $2.1 million in FY 2025 and $2.0 million in FY 
2026.  DCF estimates that enactment of the bill would result in a 50.0 percent reduction in FY 
2025 and a complete phase out in FY 2026. The phasing out of foster care cases would reduce 
revenues for CSS by $1.0 million for FY 2025 and $2.0 million for FY 2026.  Any fiscal effect 
associated with HB 2581 is not reflected in The FY 2025 Governor’s Budget Report.  
 
 
 
 	Sincerely, 
 
 
 
 	Adam C. Proffitt 
 	Director of the Budget 
 
 
 
 
cc: Kim Holter, Department for Children & Families