BILL ANALYSIS AB 4 X8 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 4 X8 (Budget Committee) As Amended February 17, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(February 4, |SENATE: |30-8 |(February 18, | | | |2010) | | |2010) | ----------------------------------------------------------------- (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 Page 2 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 Page 3 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 FN: 0003686