BILL ANALYSIS AB 510 Page 1 Date of Hearing: April 14, 2009 ASSEMBLY COMMITTEE ON HUMAN SERVICES Jim Beall, Jr., Chair AB 510 (Evans) - As Amended: April 2, 2009 SUBJECT : CalWORKs: Good cause exception. SUMMARY : Does not count a month of CalWORKs aid against a recipient's 60-month time limit when there is a lack of county supportive services due to insufficient funding for CalWORKs in the annual Budget Act. Recipients who, on or after January 1, 2009, are granted a "good cause" exception from work participation rules from his or her county welfare office are eligible under this provision. EXISTING LAW : 1)Lists five specific conditions when county welfare workers have the authority to stop a CalWORKs participant's five-year time clock. 2)Requires that a single-parent CalWORKs recipient work a minimum of 32 hours per week, and that a recipient in a two-parent household work at least 35 hours per week in order to maintain their cash grant and supportive services. FISCAL EFFECT : Unknown COMMENTS : CalWORKs is a program based on a partnership concept between government and the participant. Generally, the government promises to provide a monthly cash grant and offer supportive services (see list below) to the participant. Together, the cash and services are intended to defray living expenses and help the participant overcome profound barriers, such as substance abuse or domestic violence, or give them the basic tools, such as a bus pass or proper work clothing, that make obtaining and maintaining a job possible. The promise of a participant to the government is to obtain a job, and work a specified number of hours per week. The participant is afforded a maximum of five years of cash grants, and a limited number of months of supportive services to assist them on their road to self-sufficiency. According to the County Welfare Directors' Association (CWDA), the sponsor of this bill, AB 510 Page 2 CalWORKs participants may receive the following supportive services from their local county welfare office: 1) Counseling and Treatment - Domestic violence counseling, Mental health counseling, Substance abuse counseling. 2) Child Care - regular and special-needs child care such as infant care or off-hour care (for example, if the parent works a night shift). 3) Transportation - mileage for use of a personal car (which must account for the cost of wear and tear on the car and necessary repairs), as well as public transportation use (bus or train pass, etc). 4) Work, education, and training-related expenses (i.e. Ancillary Services) - Learning-disability services, job-related tools, uniforms, books or school supplies. CalWORKs funding : Generally, the entire annual cost to run CalWORKs is approximately $5 billion. While counties administer the cash aid and arrange for the supportive services for a participant, the state and federal government provide almost all of the funding. In particular, the state funding for supportive services is determined annually through the Budget Act. Over the past several years, the state has reduced the funding for these services. According to CWDA, the current CalWORKs deficit is estimated at $250 million. In the 2008-09 Budget Act, another reduction of $86.4 million was added totaling $336 million. As a result, CWDA states that counties are no longer able to hold up the government's promise to provide the supportive services that are necessary for all CalWORKs adult recipients to participate in welfare-to-work activities. Good Cause exception to work requirements : In a January 2009 letter, the California State Association of Counties and CWDA advised California Department of Social Services Director John Wagner that counties will, on a case-by-case basis, be granting voluntary "good cause" for non-participation to recipients for whom the necessary supportive services cannot be provided. This authority is allowable under current law. However, legislation is needed to suspend the 60-month lifetime clock for CalWORKs recipients, who would be participating in welfare-to-work activities if the necessary services were available. AB 510 Page 3 AB 510 would stop the 60-month time clock for any person granted "good cause" for non-participation if the county cannot provide necessary supportive services due to the impact of the budget cuts on the program. Possible opposition : CWDA states that they anticipate the Administration to have policy concerns about stopping the time clock for these CalWORKs recipients. In response, CWDA notes that the CalWORKs program was originally developed and structured in a time when the federal block grant was sufficient to fund all needs in the program, with a significant amount left over in the early years of the program. In the 10 years since then, federal block grant and required state Maintenance of Effort funds have been moved out of CalWORKs and the effects of direct cuts and a slow erosion of funding have impacted the program to such a degree that counties can no longer provide all of the services that recipients need in order to participate in work or work-related activities. CWDA contends that the stark reality of reducing the available funding in the welfare-to-work program is fewer services resulting in fewer recipients being able to participate. The Legislature and prior Administrations did not have to contemplate this situation, but if they had, CWDA believes the proposed policy - which is to not penalize individual recipients who need services in order to participate in work activities when those services cannot be provided due to budget cuts - is consistent with broader CalWORKs policies. REGISTERED SUPPORT / OPPOSITION : Support County Welfare Directors Association (Sponsor) American Federation of State, County, and Municipal Employees California Catholic Conference of Bishops California Communities United Institute California State Association of Counties (CSAC) Service Employees International Union Western Center on Law & Poverty Opposition None on file. AB 510 Page 4 Analysis Prepared by : Frances Chacon / HUM. S. / (916) 319-2089