Nevada committee hears bill to stop using child trust funds to offset foster-care costs

Assembly members on the Assembly Committee on Ways and Means heard testimony on Assembly Bill 5 52, a budget implementation measure that would end the practice of deducting publicly funded services from a child's separate account in the Child Welfare Trust.

The bill was presented by Councilman Candavaro, administrative services officer for the Division of Child and Family Services, who said the practice "began in 1993 when the Child Welfare Trust account, budget account 3242, was created in NRS '4 '30 '2 dot 0 '3 '7." Candavaro told the committee the change would reduce payments to the rural child welfare budget account by $97,153 in each year of the upcoming biennium and shift those costs to reserves rather than the state general fund.

Candavaro also said the federal Title IV-E Social Security Act does not require states to claim the cost of care or offset it, adding that "states can choose the financial practice to opt in or opt out of this budgetary policy." He concluded his presentation and offered to answer questions; none were asked during the hearing.

There was no in-person or phone testimony in support, opposition, or neutral positions during the hearing. The committee chair closed the hearing on AB 5 52 after the sponsor waived closing remarks.

Because AB 5 52 was presented as a budget implementation item, the committee record shows the fiscal effect limited to a decision unit listed as E260 (rural child welfare budget account). The committee did not take a final vote on the bill in this hearing.

The hearing record does not include further action or amendments to the bill as presented.