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Panel approves phased plan to conserve a portion of children's federal benefits; DHHS warns of new costs
Summary
The committee approved amendment 16-55s to phase in conservation of a portion of certain children's federal benefits (25% rising over successive biennia), but Department of Health and Human Services warned of IT, management and funding gaps and the committee declined a narrower committee amendment.
The Senate Finance Committee voted to adopt amendment 16-55s to a bill originating in the House that phases in the conservation of a portion of certain federal benefits paid to children receiving Social Security survivor or disability benefits.
The amendment (offered in committee by a member identified by transcript label 11) would start conserving 25% of a child's federal benefits in the first biennium beginning Jan. 1, 2028, then 50% the next biennium, 75% the following cycle and ultimately 100% in later years. The sponsor described the change as a way to ensure children leaving state programs when they turn 18 have resources to begin adult life and said the state would commit to funding the phased program rather than taking the money directly from the child.
Department of Health and Human Services officials cautioned the committee that the amendment introduces new costs that were not included in the original fiscal note. Nathan White, DHHS chief financial officer (label 10), told the panel the department expects some new IT upgrades to manage phased conservation and that the department lacks additional —4 refund revenue; he estimated ongoing management costs on the order of the low hundreds of thousands of dollars (he referenced a roughly $400,000 management need in testimony) and said the phased design would be subject to Social Security Administration approval for certain implementation steps.
The chair later proposed a narrower committee amendment to remove lines 14 through 17 (limiting the sweep to smaller initial percentages), but no senator seconded that change and the bill remained as amended. The committee subsequently moved the measure as "ought to pass as amended" by voice vote.
What happens next: the amendment will be entered into the committee record and the fiscal impacts will be handled in the upcoming budget process; the department said any required appropriation would be treated as a prioritized agency need during the agency phase.
