BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 510                                       
          A
          AUTHOR:        Evans                                        
          B
          VERSION:       April 2, 2009
          HEARING DATE:  June 23, 2009                                
          5
          FISCAL:        To Appropriations                            
          1
                                                                      
          0
          CONSULTANT:                                                
          Lane
                                        

                                     SUBJECT
                                         
                        CalWORKs: aid amount calculation


                                     SUMMARY  

          Suspends the timeclock for CalWORKs aid when there are a  
          lack of county supportive services due to insufficient  
          funding in the annual Budget Act.


                                     ABSTRACT  
           
          Current law
           1)Establishes the California Work Opportunity and  
            Responsibility for Kids (CalWORKs) program to provide  
            cash aid and welfare to work activities to eligible  
            families.

          2)Limits an adult's eligibility for cash aid to 60  
            cumulative months.

          3)Provides five specific conditions when county welfare  
            workers have the authority to suspend a CalWORKs  
            participant's 60-month time clock.
                                                         Continued---



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          4)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.

           This bill

           1) Provides that any month in which a recipient has been  
            excused from participation for good cause due to a lack  
            of necessary supportive services resulting from  
            insufficient funding for CalWORKs services in the annual  
            Budget Act will not be counted as a month of receipt of  
            aid.
          

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, for  
          every 1,000 cases that receive a good cause exemption,  
          rather than participating in the welfare to work program,  
          counties will save approximately $2 million per month in  
          employment services and child care cost; and, for every  
          1,000 cases where an adult stays on the caseload one month  
          longer than they would have otherwise, due to a good cause  
          exemption, it will cost the state $139,000 in increased  
          CalWORKs grant costs at the end of those families'  
          five-year time limit.


                            BACKGROUND AND DISCUSSION  

           Program overview
           According to the County Welfare Directors Association  
          (CWDA), the sponsor of this bill, counties provide the  
          following supportive services to CalWORKs participants:
             1)   Counseling and treatment: for domestic violence,  
               mental health, and substance abuse.
             2)   Child care.
             3)   Transportation: mileage for use of a personal car  
               and fares for public transportation.
             4)   Work, education, and training-related expenses,  
               such as learning-disability services, job-related  
               tools, uniforms, books, and school supplies.




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           CalWORKs funding  
          While counties administer the cash aid and arrange for or  
          provide supportive services for a participant, the state  
          and federal governments provide most of the funding.  State  
          support of CalWORKs services is determined annually through  
          the Budget Act.  According to the author and the bill's  
          sponsor, budget reductions have left counties short  
          millions of dollars for support services; as a result,  
          counties are no longer able to provide the supportive  
          services necessary for some CalWORKs recipients to  
          participate in welfare-to-work activities.
           
          Good cause exception to work requirements  
          In January of 2009, the California State Association of  
          Counties and CWDA advised DSS 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  
          allowed under current law.  However, CWDA believes that   
          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 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.
           
          Suspending the time clock
           The CWDA believes that suspending the time clock for some  
          CalWORKs recipients is prudent and fair.   When the program  
          began ten years ago, there were sufficient funds to meet  
          clients' needs for welfare-to-work services.   In an era of  
          fiscal austerity and budget shortfalls in counties, the  
          author and the sponsors argue that suspending the time  
          clock while clients wait to receive needed services  
          recognizes that clients who follow the rules should not be  
          penalized. 

           Previous votes
           Assembly Floor      50-28
          Assembly Appropriations 12-5
          Assembly Human Services  4-2




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                                    POSITIONS  

          Support:       County Welfare Directors Association of  
          California (sponsor)
                         American Federation of State, County and  
          Municipal Employees
                         California Catholic Conference of Bishops
                         California Commission on the Status of Women
                         California Communities United Institute
                         California State Association of Counties
                         National Association of Social Workers,  
          California Chapter
                         Western Center on Law and Poverty

          Oppose:   None received




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