BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 4 X8
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 4 X8 (Budget Committee)
          As Amended  February 17, 2010
          Majority vote
           
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          |ASSEMBLY:  |     |(February 4,    |SENATE: |30-8 |(February 18,  |
          |           |     |2010)           |        |     |2010)          |
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                    (vote not relevant)

          Original Committee Reference:    RLS.  

           SUMMARY  :  Provides necessary statutory changes in the areas of  
          developmental services and foster care in order to address the  
          fiscal emergency declared by Governor Schwarzenegger pursuant to  
          the California Constitution.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Reduce Reimbursement of Providers Participating in the  
            Regional Center System.  This bill reduces certain payments  
            for services delivered from February 1, 2010 to June 30, 2011,  
            inclusive, by 3% except as specified.  

            This reduction results in Regional Center systems' Purchase of  
            Services reductions of $99.5 million [$49.7 million General  
            Fund (GF)] in 2010-11. 

            Exempt from this reduction are Supported Employment, the SSP  
            supplement for independent living, and services with "usual  
            and customary" rates as established in regulation. In  
            addition, other services may be exempt from this reduction if  
            a Regional Center demonstrates that a non-reduced payment is  
            necessary to protect the "health and safety" of a consumer and  
            the Department of Development Services (DDS) has granted  
            written approval of this specific exemption.

          2)Reduce Regional Center Operations.  This bill suspends several  
            administrative and case management requirements in existing  
            law from February 1, 2010 to June 30, 2011, inclusive, in  
            order to provide flexibility to each Regional Center for the  
            purpose of reducing their Operations expenditures. 









                                                                  AB 4 X8
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            This reduction results in Regional Center Operations  
            reductions of $16.2 million ($11.2 million General Fund) in  
            2010-11.

            The requirements to be suspended include:

             a)   The average service coordinator-to-consumer ratio for  
               certain consumers currently established at 1:66;

             b)   The overall average service coordinator-to-consumer  
               ratio at a Regional Center for all consumers who have not  
               moved from a Developmental Center to the community,  
               currently established at 1:62;

             c)   The requirement that Regional Centers shall either have  
               in-house or contract from the following expertise:  i)  
               criminal justice; ii) special education; iii) family  
               support; iv) housing; v) community integration; and, vi)  
               quality assurance;

             d)   The reporting to the DDS regarding current salary  
               schedules for all personnel classifications used by a  
               regional center;

             e)   The reporting to the DDS of prior year fiscal  
               expenditures for administrative services, including salary  
               schedule, legal services, and consultant contracts; and,

             f)   Both of these actions in effect extend the regional  
               center reduction and suspensions that were adopted as part  
               of the February 2009 and 2009-10 budget agreements for an  
               additional year, through 2010-11.  

          3)Expands eligibility for federal financial participation in  
            foster care costs and is estimated to save the state GF $6  
            million in 2009-10 and $69.5 million in 2010-11.  

            These changes are part of the Administration's larger proposal  
            for additional federal funds, and are contingent on changes in  
            federal law.  Currently the state receives federal funds for  
            the care of only around 71 percent of its approximately 60,000  
            foster children, even though the state is obligated by federal  
            law to serve all of those children.  By eliminating the link  
            between family income and assets requirements from 1996 Aid to  
            Families with Dependent Children laws and foster care funding  








                                                                  AB 4 X8
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            under Title IV-E of the Social Security Act, the federal  
            government would increase its financial participation in  
            California's foster care cases.  

           AS PASSED BY THE ASSEMBLY  , this bill was a vehicle for 2009  
          Budget legislation.


           Analysis Prepared by  :    Nicole Vazquez and Daisy Gonzales /  
          BUDGET / (916) 319-2099


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