Extension of SCHIP and Education and Training Funds at Risk

As the scheduled October 8 congressional adjournment gets closer to, it is becoming increasingly unlikely Congress will pass legislation to extend the time allowed for states to access $1.1 billion in federal funds for the State Children's Health Insurance Program (SCHIP). Created in 1997, SCHIP provides states with grants to offer health insurance for children whose families do not have insurance and whose incomes exceed the limit for Medicaid eligibility. In 2003, 5.8 million children were enrolled in SCHIP.

U.S. Health and Human Services (HHS) Secretary Tommy Thompson told lawmakers recently he would use his statutory authority to redistribute $660 million in unspent federal funds to cover any state spending gaps for a children's health insurance program.

The Education and Training Voucher (ETV) program was created in 2002 under the reautho! rization of the Chafee Foster Care Independence Program. An extensive effort is under way to give states one additional year in which to expend their first-year funding. ETV provides education and training for youth aging out of foster care and youth adopted from foster care at age 16 or older. The voucher--as much as $5,000 per year--may be used for vocational or any post-secondary institution of higher education.

In FY 2003, Congress appropriated first-time funding of $42 million for payments to states to implement the vouchers. Delays in final passage of the FY 2003 appropriations bill, however, and further delays by HHS in issuing guidance to states on applying for the funds resulted in states not being told until early July 2003 that they had to apply for the program by the end of that month.

Funds could not actually be drawn down by the states until August and September 2003, at the end of the 2003 fiscal year. States then had only the next year to get th! is new program up and running and to disburse the new funds. Although, technically, states have two years under the law to obligate the funds, the 2004 school year was already under way by the time the program got started, making it difficult for some states to make the tuition assistance payments anticipated under the law until the next calendar year.

A September 21 survey of state independent-living coordinators by the National Resource Center for Youth Services and National Foster Care Coalition revealed that only 2 of the 29 states responding had expended all of their 2003 funds.

Source: Children's Monitor Online, A Public Policy Update from the Child Welfare League of America

Rossana L. Barnaby, LCSW
Licensed Clinical Social Worker
Barnaby Consulting, LLC
P O Box 330833
West Hartford, CT 06133

Phone: 860-803-4020
Fax: 860-216-3212

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