
Lawmakers Look to End "Orphan Tax"
Clip: Season 4 Episode 349 | 3m 12sVideo has Closed Captions
Kentucky is one of several states reconsidering this practice.
Kentucky may soon ends its so-called "orphan tax." That's social secruity income that flows from foster children to the state agency responsible for those kids. As June Leffler reports, policymakers across the nation are reconsidering who should get that money.
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Kentucky Edition is a local public television program presented by KET

Lawmakers Look to End "Orphan Tax"
Clip: Season 4 Episode 349 | 3m 12sVideo has Closed Captions
Kentucky may soon ends its so-called "orphan tax." That's social secruity income that flows from foster children to the state agency responsible for those kids. As June Leffler reports, policymakers across the nation are reconsidering who should get that money.
Problems playing video? | Closed Captioning Feedback
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Now, Kentucky may soon end its so-called orphan tax.
That's Social Security income that flows from foster children to the state agency responsible for those kids.
As our June Leffler reports, policymakers across the nation are reconsidering who should get that money more.
As we kick off tonight's legislative update.
[MUSIC] >> Kentucky's House speaker pro tem says foster youth with disabilities or deceased parents are entitled to money they will never see.
>> Right now, if a child in our care receives Social Security benefits for any reason, most of them would probably be receiving it because of.
It's a. It's a death benefit.
The cabinet takes that to use that to pay for that child's care.
We don't do that with any other child that's in our in our care.
And it's it's unfair to these children that's being done.
This is money that's supposed to be going to them to help them with their future.
>> House Bill 669 would change that.
>> And it is to write an injustice that's being done to some of our most vulnerable in the foster care system.
>> Last December, the federal government asked states to challenge the status quo.
>> That's why we are notifying 39 states today of that practice and asking them to end this nationwide.
>> So they're taking the benefits that ought to go to the child, and they're taking it for the state bureaucracy.
>> That's exactly right.
>> Research shows that when foster kids grow up, they are more likely to be unemployed or homeless than other kids.
Money set aside could ease the transition to adulthood.
Some lawmakers say so.
>> As a financial advisor, I see a number of clients coming through with a deceased parent and the Social Security benefits and what I've seen over the years is just the benefit that these dollars, when guided by a mature adult, can help guide the young person to be a good consumer.
>> Under House Bill 669, kids would get a savings account they can draw from as they mature.
>> The child will go through a milestone program when they reach those milestones of possibly like 16 to get their driver's license.
The cabinet can allow them to pull some money out of that account, so on and so forth as they graduate, 18 go to college or when they leave the system, the money will come back to the child.
>> Kentucky House approved this bill unanimously earlier this month, but Kentucky's secretary of the cabinet for Health and Family Services, Doctor Stephen Stack, has concerns.
>> I will tell you that I recently received a letter from Doctor Stack saying that this program will cost about $14 million, which is very odd because since 2012, the cabinet has reported $0 coming out of these children's Social Security benefits to pay for the cabinet.
So false information is either given to us or the federal government, one or the other.
>> The cabinet did not reply to requests for comment in time for this broadcast.
One Democrat voted against House Bill 669 in the Senate Families and Children Committee.
>> But I recently talked with Doctor Stack.
I have to believe that there's some merit in what he's saying that that I just can't ignore.
And so for those reasons, I'm a no vote.
>> The bill did advance in a 6 to 1 vote.
It now heads to the full Senate, possibly for final
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