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In Colorado, foster care is a big concern for the more than 200 young people who age out of the system each year.

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According to a new study by the Common Sense Institute, a conservative think tank, these young adults face higher rates of homelessness, incarceration, and poverty. Not only does this take a toll on these individuals, but it also has a significant financial impact on the state of Colorado for years to come.

The study found that for every cohort of 213 foster youths who age out of care, it costs the state up to $73 million in individual and taxpayer costs. This is due to the increased likelihood of incarceration, homelessness, not completing high school, and becoming parents at a young age.

These are alarming statistics, especially when considering that only 30% of children in foster care in Colorado graduate from high school. And for those who age out, the numbers continue to paint a troubling picture.

According to the National Youth in Transition Database, 25% of former foster youths who were 21 years old in 2021 had been incarcerated in the prior two years. Additionally, a shocking 26% of teens in foster care nationwide give birth between the ages of 15-19. In Colorado, about a third of foster youth who age out become homeless within three years.

The study also breaks down the lifetime costs for former foster youths, including $12,200 per person for those who become parents at a young age, and up to $131,000 per person for incarceration. It also found that those who do not graduate from high school would earn $195,000 less over their lifetime.

Moreover, the costs of foster care continue to rise as each year, another group of kids ages out of the system. This means that every year, Colorado is hit with an additional $66 million to $73 million in costs. Farnam, who is studying child welfare outcomes through a fellowship from the Morgridge Family Foundation, described the findings as a "gut blow."

In 2017, the foundation funded a study that revealed the challenges faced by children in the foster care system, including switching schools an average of 3.5 times in four years and a graduation rate of less than one-third.

Under the new law, colleges and universities in Colorado are required to cover any remaining tuition fees for young people who were in foster care at age 13 or older.

Although Colorado allows teens to leave foster care at the age of 18 and even 17 in some cases, state officials passed a law in 2022 to extend their stay until 21. However, not many young people have taken advantage of this opportunity historically.

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In recent years, the state has focused on providing services for young people transitioning out of the system, including housing and case management. A state human services spokesperson, Madlynn Ruble, acknowledged the need to invest in these individuals early on and stressed that it is both the right thing to do for the youth and the financially responsible thing to do for Colorado.

Currently, there are approximately 3,600 children in out-of-home foster placements in Colorado, and the costs of foster care continue to escalate.

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