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Counties and state seek fix for 'adoption savings' unfunded liability in AB515
Summary
Assembly Bill 515 was presented to the Assembly Ways and Means Committee to address how Nevada accounts for and spends federally allowable 'adoption savings' for post‑adoption services.
Joanna Jacob, representing Clark County, and Cadence Matejevich of Washoe County presented Assembly Bill 515, which seeks to address a multi‑year issue created by federal changes to how certain post‑adoption services can be billed to Medicaid (the “4E” funding mechanism) and the resulting state accounting of “adoption savings.”
Jacob and Matejevich described a complicated federal funding history that converted some services to federal Medicaid eligibility beginning in 2008 and later required states to place the resulting savings in a set‑aside pool to be reinvested in post‑adoption and kinship services. Nevada officials and counties have struggled to spend the funds in the timeframes and mechanisms that exist today; as a consequence, Jacob said the state has accumulated an unfunded liability that the presenters estimated in the tens of millions of dollars. Clark County told the committee it expects an annual target expenditure of about $2.3 million and identified a cumulative liability figure discussed in testimony (presenters described a multi‑year aggregate number of roughly $15–25 million in various exchanges during the hearing).
The bill’s core amendment the sponsors said they intend to submit would remove statutory reversion language that currently returns unspent adoption‑savings dollars to the general fund. Sponsors and Division of Child and Family Services (DCFS) representatives said removing reversion would allow counties to plan and spend the funds over time and that DCFS would work with counties and the legislature on a multiyear plan to address the backlog.
Marla McDade Williams, administrator for DCFS, testified DCFS is committed to working with counties and the legislature to develop a plan to reduce the unfunded liability. Kelsey McCann Navarro, Administrative Services Officer for DCFS, confirmed the agency’s fiscal note reflects the unfunded liability. There was no opposition testimony recorded.
What’s next: Sponsors plan to submit a reversion‑removal amendment and to collaborate with DCFS and legislative staff on an implementation plan; they cautioned the backlog will likely require multi‑year solutions and additional legislative work.
