New York 2025-2026 Regular Session

New York Senate Bill S09042

Introduced
1/27/26  
Refer
1/27/26  

Caption

Relates to incorporating the cost of living adjustment into subsequent annual maximum state aid base rates for providing care to foster children.

Summary

S09042 amends the Social Services Law to require the Office of Children and Family Services (OCFS) to carry forward any cost-of-living adjustment (COLA) into the next base payment rate for foster child care and into each subsequent maximum state aid rate established afterward. The bill applies to foster care settings that receive public financial support, including care provided by relatives, authorized agencies, family boarding homes, and state agencies. It also clarifies that the incorporated COLA would be in addition to any later COLA, trend factor, or staff retention factor that may be applied in future fiscal years. In practical terms, the bill is designed to prevent a one-time COLA from being lost or excluded when OCFS sets later reimbursement rates. By requiring the adjustment to be embedded in the next base rate and future maximum state aid rates, the measure would make foster care reimbursement formulas more durable and predictable over time. The act would take effect immediately, while preserving the existing statutory framework governing section 398-a of the Social Services Law.

Impact

The bill would amend subdivision 2 of section 398-a of the Social Services Law, changing how OCFS calculates and updates foster care payment standards and reimbursement limits. It would require COLA increases to be incorporated into future base payment rates and maximum state aid rates, affecting state reimbursement policy for foster care providers and potentially increasing state aid obligations over time. The bill does not create a new program, but it changes the rate-setting methodology used for foster care payments and interacts with any future trend factors or staff retention factors applied by OCFS.

Sentiment

The available voting history suggests clear support for the bill: the Senate Children and Families Committee approved it unanimously, 7-0. No committee transcript was provided, so there is no recorded debate to indicate opposition or concerns in the materials supplied. Overall, the bill appears to have been viewed favorably as a technical but meaningful adjustment to foster care funding.

Contention

The main policy issue is whether COLA increases should be permanently built into future foster care base rates rather than treated as temporary annual adjustments. Supporters would likely view this as necessary to keep reimbursement rates aligned with rising costs and to stabilize foster care provider funding. Potential concerns, though not documented in the provided materials, would likely center on the fiscal impact to the state budget and whether embedding COLAs could compound spending obligations in later years. No specific opposition is shown in the vote or transcripts provided.

Companion Bills

NY A00718

Same As Relates to incorporating the cost of living adjustment into subsequent annual maximum state aid base rates for providing care to foster children.

Previously Filed As

NY A00718

Relates to incorporating the cost of living adjustment into subsequent annual maximum state aid base rates for providing care to foster children.

NY A08584

Establishes an annual cost of living adjustment for human services programs indexed to inflation.

NY S06753

Limits the number of cases a foster care worker may have under their supervision at any one time to 16 cases; directs the office of children and family services to promulgate regulations relating to caseload standards for foster care workers.

NY A3442

Establishes annual cost of living adjustment based on Consumer Price Index for certain children, youth, and family services organizations.

NY S09113

Establishes participation in assigned risk plans for voluntary foster care agencies (Part A); requires the office of children and family services to establish standards of payment for liability insurance costs beginning July 1, 2028 for the 2027-2028 rate year that ensures the maximum state aid rate accurately reflect the year over year increased costs for voluntary foster care agencies; directs such office to establish an application process (Part B); establishes the voluntary foster care agency insurance bridge fund; establishes a process for the distribution of moneys in such fund; sets eligibility requirements; requires certain supporting documentation (Part C).

NY A09646

Establishes participation in assigned risk plans for voluntary foster care agencies (Part A); requires the office of children and family services to establish standards of payment for liability insurance costs beginning July 1, 2028 for the 2027-2028 rate year that ensures the maximum state aid rate accurately reflect the year over year increased costs for voluntary foster care agencies; directs such office to establish an application process (Part B); establishes the voluntary foster care agency insurance bridge fund; establishes a process for the distribution of moneys in such fund; sets eligibility requirements; requires certain supporting documentation (Part C).

NY S08791

Requires the local social services districts to provide luggage to children in foster care; provides that eligible expenditures for such luggage shall be subject to state reimbursement under the foster care block grant.

NY S01580

Adds certain human services programs to the designated human services programs eligible for a cost of living adjustment.

NY A10732

Prohibits insurers from using violations issued by the New York state office of children and family services as the sole basis for rate adjustments for child care providers.

NY S09237

Includes both the birth family and the foster family of children in foster care, and other families receiving child welfare services from the authorized agency or the local departments of social services in the case of authorized agencies in the definition of family for purposes of services provided by voluntary foster care agency health facilities.

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