States' use of foster kids' benefits is assailed

Here's some of the FRAUD that I have been screaming about for years-

March 15, 2011, 9:03 p.m. PDT
Associated Press

NEW YORK (AP) — With a lawsuit, congressional efforts and a stinging new report, critics of current foster-care policies are accusing child welfare agencies of unfairly confiscating foster youths' government benefits and undermining their prospects when they age out of the system.

At the heart of the controversy is a practice common nationwide — state agencies taking control of Social Security benefits that are earmarked for foster children with disabilities or a deceased or disabled parent.

The agencies, many of them struggling with tight budgets, say they are legally entitled to use these benefits to help cover the basic cost of foster care. Critics say the policy is immoral and counterproductive, and the money should be managed in ways that will best assist the youths after they turn 18.

"In state after state, we are sabotaging foster children's futures rather than providing guidance and help," says a detailed report on the issue being released Wednesday by First Star, a national nonprofit which advocates for abused children, and the University of San Diego School of Law's Children's Advocacy Institute.

The report about "The Fleecing of Foster Children," urges Congress to mandate changes by supporting legislation that Rep. Pete Stark, D-Calif., plans to introduce soon.

Stark says his Foster Children Self-Support Act would "correct a long-standing injustice" by requiring child welfare agencies to screen all foster children for Social Security eligibility and notify their attorney or legal guardian if the child is eligible. The agencies then would be required to develop an individualized plan and personal account for each eligible child, so Social Security assets could be conserved to help the youth securing housing, education or job training after leaving foster care.

Many child-advocacy groups say such assistance could be crucial in reducing the high rates of homelessness, unemployment and substance abuse among the roughly 30,000 youths who age out of foster care each year without a permanent family of their own.

"Foster children are removed from their homes by the state for their own protection," said Robert Fellmeth, executive director of the Children's Advocacy Institute. "For the states to turn around and punish them by taking the children's own money and leaving them destitute when they age out of the system is a violation of these vulnerable kids."

At any given time, more than 460,000 U.S. children are in foster care, according to federal figures. The Congressional Research Service estimates that 30,000 of them receive Social Security benefits.  FULL STORY 

This report is actually named "The Fleecing of Foster Children: How We Confiscate Their Assets and Undermine Their Financial Security" apparently hasn't been released yet.

To get an idea how HUGE the CPS bite into Social Security REALLY IS, see http://www.ssa.gov/OP_Home/ssact/ssact-toc.htm