Report on the impact of a tax deduction for expenses attributed to the adoption of a child in foster care

Summary of specific provisions

Section 1. 1. The office of children and family services, in consultation with the department of taxation and finance, shall complete a report on the impact of a tax deduction for expenses, including adoption fees, medical and legal fees, court costs and any other related expenses paid or incurred by a taxpayer attributed to the adoption of a child in foster care.

2. Such report shall include, but not limited too

(a) the trend of adoptions for children in foster care over the past ten years;

(b) how many children have aged out of foster care in the past ten years while in custody of the state;

(c) the length of the waiting period prior to adoption for children who were in the state foster care system;

(d) the racial and ethnic breakdown of child adopted;

(e) the current number of children who have been placed in the foster care system more than once over the past three years;

(f) the number of children in foster care with a parent or parents in prison;

(g) efforts in place by the office of children and family services to help promote adoption awareness, education and possibilities for children in the foster care system that are eligible for adoption.; and

(h) the total amount spent by the office of children and family services and organizations contracted by such office in the promotion of adoptions.

(i)

3. The report required pursuant to this act shall be provided to the governor, the temporary president of the senate, the speaker of the assembly, the minority leader of the senate and the minority leader of the assembly, on or before July 30, 2015

Section 2. This act shall take effect immediately

Justification

Currently, New York State has over 23,000 children in custody in its foster care system. For a large number of these children, returning to their natural parents is impossible. In 2011, there were over 6,400 foster care children waiting to be adopted and the median years each has to wait to be adopted is close to 4.5 years.

Many of these children age out of foster care services when they turn 18 years of age. Annually 700 children age out of the system and are literally thrown out to the street without health care, housing or support services for their mental health needs. The Affordable Care Act will change the health factor for children who age-out but for most of these children waiting for adoptions, the picture is bleak.

At an annual cost to New York State of over $33,000 per child in state custody, it is obvious that New York State government must do more to create incentives for families interesting in adopting a child in the foster care system. This legislation examines what incentive and changes need to be made to increase adoption rates for children in the foster care system. There are over 150,000 children in our State living without their parents and being supported by family friends, older siblings, relatives an grandparents. Of that amount 23,000 are in the custody of New York State.

In addition, it is well understood dynamic that the longer a child is in the foster care system, the slimmer the chances for adoption. In addition, as children age in state custody it becomes a negative for them because families tend to adopt younger children. Therefore New York must do more to place these children in health, loving and nurturing home environments. At a total annual cost of over $759 million dollars to maintain the 23,000 in state custody, it is clearly in the best interest of these children and to New York taxpayers to create incentives to reduce the number of children in government custody. At a time when the nation and the state are faced with difficult economic decisions, it is incentives like the one outlined in this legislation that need to be enacted diligently because it reduces government expenditures.

Prior legislative history

New legislation

Fiscal implications for state and local government

None. This study will actually help reduce the state funding for foster care services if recommendations are adopted which will increase adoption rates and reduce the huge number of children living their entire childhoods in state funded foster care.

Effective date

This act shall take effect immediately