Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 4543
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 26, 2025
SUMMARY
Synopsis: Prohibits DCF from using federal benefits received by a child in out
of home placement to reimburse State for cost of child's care, except
under certain circumstances.
Type of Impact: Annual State revenue decrease; annual State expenditure increase.
Agencies Affected: Department of Children and Families.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Revenue Decrease $500,000
State Expenditure Increase $170,000
The Office of Legislative Services (OLS) determines that annual State revenues will decline
by about $500,000 attributable to a decrease in federal revenues received by the State for foster
care maintenance payments made pursuant to Title IV-E of the federal Social Security Act.
The bill directs the Department of Children and Families, if necessary to ensure benefits
eligibility for a child who is or may be eligible for federal Supplemental Security Income
benefits, to forego claiming federal Title IV-E foster care maintenance payments for the child.
The OLS concludes that the bill will increase annual State expenditures by about $170,000 for
the Department of Children and Families to hire additional staff to ensure that the department
universally screens children entering out-of-home placement for eligibility for federal benefits,
and, if appointed as representative payee for the child’s federal benefits, uses or conserves a
child’s federal benefits in a way that serves the child’s best interests while also complying with
federal asset or resource limits established under the federal Supplemental Security Income
program.
As of June 1, 2024, in cases in which the department is appointed as representative payee for
the federal benefits of a child in an out-of-home placement, the department no longer utilizes
certain federal benefits to offset the State’s costs for the child’s care. Instead, the department FE to A4543 [2R]
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utilizes a child’s Supplemental Security Income benefits to offset the cost of the child’s care
only if conserving the full amount of the child’s federal benefit would raise the child’s assets
above the $2,000 threshold for continued Supplemental Security Income program eligibility.
As such, the bill’s provisions will have little impact on the department’s operations when
compared with its current practices regarding treatment of the federal benefits of a child in an
out-of-home placement.
BILL DESCRIPTION
The bill prohibits the Department of Children and Families from using the property or federal
benefits of a child in an out-of-home placement to offset the State’s costs for the child’s care,
except to maintain the child’s eligibility for federal Supplemental Security Income program
benefits and to avoid violating federal asset or resource limits under the Supplemental Security
Income program. In the case of a child in an out-of-home placement, the department is the child’s
caregiver and, under current federal law, may use the child’s federal benefits to offset the State’s
costs to care for a child in an out-of-home placement.
The bill requires the department to monitor asset or resource limits for the relevant federal
benefits, establish a qualified Achieving a Better Life Experience account, or other trust account,
for every eligible child, and ensure that the child’s best interest is served by using the benefits for
the child’s unmet needs or conserving the benefits in a manner that avoids violating federal asset
or resource limits.
The Department of Children and Families is directed to apply for any federal waivers necessary
to implement the provisions under the bill and to ensure continued federal reimbursement for State
expenditures for foster care services under Title IV-E of the federal Social Security Act. The bill,
however, stipulates that if a child is or may be eligible for federal Supplemental Security Income
benefits, the department will, if necessary to ensure the child’s benefits eligibility, forego claiming
federal Title IV-E foster care maintenance payments for the child.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received. The Department of Children and Families, however, provided information in
response to OLS questions regarding the fiscal impact of the bill. According to the department, as
of June 1, 2024, in cases in which the department is appointed as representative payee for the
federal benefits of a child in an out-of-home placement, the department no longer uses a child’s
Social Security Disability Insurance benefits to offset State costs for the child’s care. Rather, it
utilizes a child’s Supplemental Security Income benefits to offset the cost of the child’s care if
saving the full amount of the benefit would raise the child’s countable assets above the federally-
determined Supplemental Security Income asset and resource limit of $2,000 and jeopardize the
child’s eligibility for continued benefits.
Currently, any portion of a child’s federal benefits that is conserved for future use is deposited
into an interest-bearing savings account in the child’s name; these savings are considered countable
assets for the purpose of establishing or maintaining Supplemental Security Income benefits. The
department notes that it monitors these savings account balances to ensure the balances remain FE to A4543 [2R]
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below the $2,000 threshold so that a child remains eligible for benefits. According to the
department, staff are currently developing policies and procedures governing the establishment of
Achieving a Better Life Experience accounts for eligible children under the department’s care, and
anticipates utilizing these accounts to conserve a child’s Supplemental Security Income benefits
in the near future.
Prior to June 1, 2024, the department stated that the department would utilize up to 100 percent
of a child’s federal benefits, depending upon the cost of the child’s care, to offset State costs for
the child’s out-of-home placement.
The department also estimates that annual State revenues, in the form of federal
reimbursements for State expenditures on Title IV-E Foster Care maintenance payments, will
decrease by $500,000 under a provision requiring the department, in the case of a child who is or
may be eligible for Supplemental Security Income benefits, and if necessary to ensure the child’s
benefits eligibility, to forego claiming Title IV-E Foster Care maintenance payments for the child.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that annual State revenues will decline by about $500,000 attributable to
a decrease in federal revenues received by the State for foster care maintenance payments made
pursuant to Title IV-E of the federal Social Security Act. The bill directs the Department of
Children and Families, if necessary to ensure benefits eligibility for a child who is or may be
eligible for federal Supplemental Security Income benefits, to forego claiming federal Title IV-E
foster care maintenance payments for the child.
The bill’s remaining provisions will only increase the administrative costs of the department,
given that the department has already adopted policies and practices that mirror the bill’s
requirements regarding the use and conservation of federal benefits for a child in out-of-home
placement. The department estimates that it would require two additional staff members to comply
with the bill’s administrative and accounting requirements, namely the universal screening of
children entering out-of-home placement for eligibility for various federal benefits programs,
ongoing monitoring of children’s savings accounts to ensure that balances do not exceed the
$2,000 Supplemental Security Income eligibility threshold, and managing the Achieving a Better
Life Experience accounts, or other trust accounts, that the department will establish to enable
children in out-of-home placement, and who meet the Supplemental Security Income disability
requirement for benefits receipt, to save a greater amount of resources for future use. The
department will reportedly require two additional entry-level Analyst Trainee positions, at an
annual salary of $50,000 each, to comply with the bill’s administrative and accounting
requirements. Inclusive of fringe benefits, the OLS estimates that the department’s annual
personnel costs will increase by about $170,000 for the two additional staff.
Section: Human Services
Analyst: Anne Cappabianca
Senior Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).