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Committee advances bill to ensure survivor benefits stay with foster children; DCS flags $7.6M fiscal impact
Summary
Senate Judiciary voted to send a bill to Finance that would require survivor benefits received on a foster child's behalf to be preserved for that child rather than used to offset routine foster-care costs; the Department of Children's Services said the fiscal note totals about $7.6 million and offered to work with the sponsor.
The Senate Judiciary Committee voted to refer legislation to Finance that would change how survivor benefits are handled for children in state custody, directing that funds intended for an individual foster child be preserved for that child rather than routinely used to offset the department’s caregiving costs.
Senator Cynthia Yarborough, the bill sponsor, told the committee there are roughly 9,000 children in state custody and that over the past decade Tennessee has used roughly $56 million in survivor benefits to offset foster-care costs. She said the legislation would require the state to continue applying for benefits when eligible but to account for and preserve those funds for the child — for example in a child‑specific account or for special needs — instead of spending them as general offset funds.
Jim Layman and Hayes O’Donnell from the Department of Children’s Services told the committee the department’s official position was “working with sponsor” at the time the position was filed; once the fiscal note was completed DCS staff reported the estimated revenue loss to the department would be about $7.6 million. DCS said it would be neutral on the substantive bill if that revenue loss were replaced in the budget.
Committee members discussed programmatic and transitional services for youth aging out of care, including financial literacy, workforce preparation and stipends that the department already provides to some eligible youths. Sponsor Yarborough said she would welcome amendments to require financial‑literacy training before release of funds to an individual who ages out of care.
After discussion the committee voted to send the bill to the Finance Committee for further consideration of the fiscal impacts and possible funding options; roll call recorded nine ayes.
