In a landmark decision, Kansas Governor Laura Kelly has issued an executive order mandating that federal benefits, such as Social Security and disability payments, go directly to foster children rather than being used to fund state agency operations.
This move aims to prioritize the long-term welfare of children in foster care, offering them financial stability as they transition into adulthood.
Key Highlights of the Policy Change
1. New Savings Accounts for Foster Children Under the new mandate, federal benefits for nearly 1,000 children in Kansas foster care will be deposited into individual savings accounts. These accounts will be managed by the Kansas Department for Children and Families (DCF) unless an adult fiduciary is available. The funds will follow the child when they age out of the system, providing essential financial support.
2. Addressing a $9 Million Funding Gap Redirecting federal benefits to children creates a $9 million gap in DCF’s budget, which previously relied on these funds. Governor Kelly has urged the state legislature to allocate general fund dollars to fill this gap and codify the executive order into law.
3. Focus on Financial Independence The saved funds can be used for various purposes, including:
- School trips or extracurricular activities.
- Purchasing a car.
- Securing housing upon reaching adulthood.
This initiative ensures that children have a financial cushion to support their transition into independent living.
| Aspect | Details |
|---|---|
| Mandate Issued By | Kansas Governor Laura Kelly |
| Target Group | Nearly 1,000 foster children in Kansas |
| Funds Redirected From | State agency operations to individual savings accounts |
| Budget Impact | $9 million funding gap for DCF |
| Uses of Funds | Education, housing, transportation, and other personal needs |
| Implementation Responsibility | Kansas Department for Children and Families |
| Legislative Recommendation | Codify the executive order and allocate funds to cover the budget shortfall |
Historical Context and Implications
For decades, many states, including Kansas, have used federal benefits provided to foster children to fund agency operations.
While not uncommon, this practice has been criticized for prioritizing state budgets over the needs of vulnerable children.
Governor Kelly’s executive order breaks this trend, making Kansas the first state to implement such a change through executive action.
Gabriella Pogány, an advocate with the Annie E. Casey Foundation and a former Kansas foster care recipient, emphasized the potential impact of this change.
“Having access to a personal savings account during my teenage years would have significantly improved my transition out of foster care,” Pogány said.
Benefits of the New Mandate
- Empowers Foster Youth
By granting direct access to their entitled benefits, foster youth gain greater control over their financial future. - Supports Lifelong Connections
Financial stability enables foster children to build connections and achieve milestones such as education, employment, and housing. - Promotes Accountability
The shift ensures that funds meant for foster children are used exclusively for their benefit.
Challenges and Future Steps
While the initiative is a significant step forward, it also introduces challenges:
- Funding Gap: The $9 million shortfall in DCF’s budget requires legislative action to ensure the agency can continue its operations without disruption.
- Implementation: Managing individual savings accounts and ensuring funds are used appropriately will require robust oversight and administrative systems.
Governor Laura Kelly’s decision to redirect federal benefits to foster children’s savings accounts marks a transformative moment in Kansas’ foster care system.
By prioritizing the financial well-being of foster children, the initiative addresses a long-standing issue and sets a precedent for other states.
While challenges like the funding gap remain, the policy underscores the importance of empowering vulnerable youth with resources to build a stable future.
FAQs
How will the savings accounts be managed?
The Kansas Department for Children and Families will manage the accounts unless another adult fiduciary is designated.
What happens to the funds if a child exits the foster care system?
The funds remain accessible to the child, providing financial support as they transition to adulthood.
How will the funding gap for DCF be addressed?
Governor Kelly has urged the state legislature to allocate general fund dollars to cover the $9 million shortfall.
