HB 103 – SB 1266
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 9, 2025
Fiscal Analyst: Christine Drescher | Email: christine.drescher@capitol.tn.gov | Phone: 615-741-2564
HB 103 – SB 1266
SUMMARY OF BILL: Expands the eligibility of extension of foster care services to an
individual’s 23rd birthday if the individual was at least 16 years old but less than 18 years old when
they were adopted from or approved for subsidized permanent guardianship by the Department of
Children’s Services (DCS).
Reinstates the Foster Care Youth Outreach Liaison Pilot Program (Program). Removes the requirement
that institutions of higher education that work with DCS to establish the Program be public
institutions and the requirement that there be a minimum of five public institutions of higher
education.
Prohibits an individual who is receiving services under DCS’s extension of foster care program or
juvenile justice programs from being charged a fee for issuance, renewal, or reinstatement of a driver
license, instruction permit, intermediate driver license, or photo identification card.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 $3,243,500
FY26-27 & Subsequent Years $3,237,000
Total Positions Required: 4
OTHER FISCAL IMPACT
According to DCS, the Governor’s proposed budget for FY25-26 includes a rate increase, from
$15 to $26 per case per day, for the case management services. To the extent that the increase is
effectuated, there would be an additional increase in state expenditures for case management
services of $738,800 in FY25-26 and subsequent years. This will result in a total increase in state
expenditures of $3,982,200 in FY25-26 and $3,975,700 in FY26-27 and subsequent years.
Assumptions:
• Tennessee Code Annotated § 37-2-604(c) currently allows young adults to participate in the
extension of foster care services if they are between the ages of 18 and 21.
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• Based on information provided by DCS, it is estimated that approximately 184 additional
individuals would participate in the extension of foster care services if it was expanded from
serving those up to 21 years of age to those 23 years of age.
• Of the 184 additional participants, 21 individuals will receive independent living assistance
services while the remaining 163 individuals will receive regular extension of foster care
services.
• Assuming similar distributions of boarding reimbursement rates and living allowance rates as
currently exist for individuals in the foster care extension program, there will be an increase in
expenditures as follows:
o $236,542 (21 individuals x $30.86 daily rate x 365 days) for individuals receiving
independent living assistance; and
o $1,668,835 (163 individuals x $28.05 x 365 days) for individuals receiving the regular
rate for extension of foster care.
• These increases in expenditures associated with boarding and living allowances will not result
in any increase in federal funding and will therefore be covered exclusively by state funding.
• The total increase in state expenditures associated with boarding reimbursement rates and
living allowances will be $1,905,377 ($236,542 + $1,668,835) in FY25-26 and subsequent years.
• According to information provided by DCS, it will contract with a private entity to provide
case management to the extension of foster care program.
• This contract with a private entity will be paid for with entirely state funding, as this extended
foster care services recipient population will not qualify for federal IV-E funding due to their
age.
• Based on a current contract the DCS has for similar services, it is estimated that case
management services will be $15 per day per case, which will result in an increase in state
expenditures of $1,007,400 (184 x $15 x 365 days) in FY25-26 and subsequent years.
• The proposed legislation will require DCS to hire four new positions to handle the expanded
population: three program specialists, who would be responsible for two DCS regions each
and who would manage an average of 61 cases and one program specialist to oversee the three
specialists.
• This would result in a recurring increase in state expenditures as follows:
Title Salary Benefits # Positions Total
Program Coordinator $67,656 $19,252 1 $86,908
Program Specialist $60,336 $18,038 3 $235,122
Total: $322,030
• Reinstating the Program can be accomplished within existing DCS, Tennessee Higher
Education Commission, and Tennessee Student Assistance Corporation personnel and
resources and will not result in any necessary increase in expenditures.
• Removing the requirement that there be at least five public institutions of higher education
that work with DCS for the Program is not anticipated to result in any significant changes to
the operations of the Program.
• Tennessee Code Annotated § 55-50-312(h) currently states that a person under the age of 18
and in DCS custody should not be charged a fee for issuance, renewal, or instatement of a
driver license, instruction permit, intermediate driver license, or photo identification card. The
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proposed legislation extends this to those under DCS care in the extension of foster care
program or juvenile justice programs.
• The current cost of a driver license is $28 and the cost of a photo identification card is $12.
• The Department of Safety is reimbursed by DCS for the cost of these cards.
• According to information provided by DCS, it is assumed that:
o 26 individuals will obtain a driver license in the extension of foster care program;
o 126 individuals will obtain identification cards in the extension of foster care
program; and
o 300 individuals in juvenile justice programs will obtain identification cards.
• The total increase in expenditures to DCS related to license and identification cards is
estimated to be $8,640 [(126 x $28) + (126 x $12) + (300 x $12)] in FY25-26.
• Assuming the number of individuals in these programs remains consistent, the increase in
expenditures to DCS is estimated to be $2,160 {[(126 x $28) / 4] + [(126 x $12) / 4] + [(300 x
$12) / 4]} in FY26-27 and subsequent years as a result of individuals aging into the program
each year.
• The total increase in state expenditures as a result of the proposed legislation is estimated to be
$3,243,447 ($1,905,377 + $1,007,400 + $322,030 + $8,640) in FY25-26, and $3,236,967
($1,905,377 + $1,007,400 + $322,030 + $2,160) in FY26-27 and subsequent years.
• According to DCS, the Governor’s proposed budget for FY25-26 includes a rate increase,
from $15 to $26 per case per day, for the case management services, or an additional $11 per
day ($26 - $15).
• To the extent that the increase is effectuated, there would be an additional increase in state
expenditures for case management services of $738,760 (184 x $11 x 365 days) in FY25-26 and
subsequent years.
• In this case, the total increase in state expenditures will be $3,982,207 ($1,905,377 +
$1,007,400 + $738,760 + $322,030 + $8,640) in FY25-26, and $3,975,727 ($1,905,377 +
$1,007,400 + $738,760 + $322,030 + $2,160) in FY26-27 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director