Appropriations hearing: proposed repeal of state home‑study reimbursement for private adoptions draws pushback
February 07, 2025 | 2025 Legislative SD, South Dakota
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House Bill 10‑05 would repeal three statutory sentences added in a prior session that require the Department of Social Services to pay the cost of home studies for private adoptions by South Dakota residents.
Jason Simmons, chief financial officer at DSS, told the House Appropriations Committee the agency supports repeal on budget grounds. He said the appropriation added when the requirement passed was based on a fiscal estimate that assumed far more claims than materialized (the fiscal note estimated 156 home studies annually; actuals since the program began have averaged about 44 per year). Simmons emphasized these reimbursements are 100% general‑funded because private‑adoption home studies are not eligible for federal matching, whereas adoption costs for children in state custody can receive federal match.
Opponents included adoption agencies and advocacy groups and several adoptive parents. Diana Miller, registered lobbyist for the South Dakota Network Against Family Violence and Sexual Assault, and representatives of South Dakota Right to Life argued the modest reimbursement (statutory discussion referenced $3,000 per study) helps remove financial barriers to private adoption and ensures checks such as background and home‑stability reviews are completed. Children’s Home Society and private agencies said the reimbursement has enabled families — including kinship placements — to step forward and avoid children entering state custody.
Several adoptive parents shared personal testimony about the high total cost of private domestic adoption (testimony cited typical total adoption expenses in the tens of thousands) and asked that the state continue the home‑study reimbursement because it lowers a financial barrier to permanency. DSS officials replied that the department supports adoption but must prioritize programs under a constrained state budget and that repeal would conserve general funds; DSS said it would continue to work with community partners on alternatives.
The committee did not take a final vote on the bill during the hearing; members deferred the item for later budget deliberations.
Jason Simmons, chief financial officer at DSS, told the House Appropriations Committee the agency supports repeal on budget grounds. He said the appropriation added when the requirement passed was based on a fiscal estimate that assumed far more claims than materialized (the fiscal note estimated 156 home studies annually; actuals since the program began have averaged about 44 per year). Simmons emphasized these reimbursements are 100% general‑funded because private‑adoption home studies are not eligible for federal matching, whereas adoption costs for children in state custody can receive federal match.
Opponents included adoption agencies and advocacy groups and several adoptive parents. Diana Miller, registered lobbyist for the South Dakota Network Against Family Violence and Sexual Assault, and representatives of South Dakota Right to Life argued the modest reimbursement (statutory discussion referenced $3,000 per study) helps remove financial barriers to private adoption and ensures checks such as background and home‑stability reviews are completed. Children’s Home Society and private agencies said the reimbursement has enabled families — including kinship placements — to step forward and avoid children entering state custody.
Several adoptive parents shared personal testimony about the high total cost of private domestic adoption (testimony cited typical total adoption expenses in the tens of thousands) and asked that the state continue the home‑study reimbursement because it lowers a financial barrier to permanency. DSS officials replied that the department supports adoption but must prioritize programs under a constrained state budget and that repeal would conserve general funds; DSS said it would continue to work with community partners on alternatives.
The committee did not take a final vote on the bill during the hearing; members deferred the item for later budget deliberations.
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