BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 733 (Leno) Hearing Date: 01/21/2010 Amended: 01/11/2010 Consultant: Jacqueline Wong-HernandezPolicy Vote: Public Safety 7-0 _________________________________________________________________ ____ BILL SUMMARY: This bill requires the Victims Compensation and Government Claims Board (VCGCB) to administer a grant program for trauma recovery centers that provide victims services in the areas of: mental health; community outreach; and coordination among medical personnel, mental health care providers, law enforcement and social services. VCGCB would be authorized to award grants of up to $3,000,000, from the Restitution Fund. This bill makes legislative findings and declarations regarding the importance of providing treatment and services to crime victims. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Restitution Fund grants up to $3,000 up to $3,000 up to $3,000 Special* Program Administration ***Unknown, likely minor costs*** Special* (VCGCB) *Restitution Fund _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE This bill requires the VCGCB to administer a new grant program for trauma recovery centers. VCGCB would receive applications and award grants totaling no more $3,000,000, to one or more centers. The board may award grants funding for up to three years. This bill makes a substantial appropriation, but to the degree that the trauma recovery centers receiving grants are successful, the state will likely have some cost savings. These cost savings will, however, be at least somewhat offset by the increased number of victims served under this program. Trauma recovery centers that would be eligible for the grants described in this bill, would be very similar to the San Francisco Trauma Recovery Center (TRC) in services provided. By all measures, TRC has been very successful at providing victim's services more cost effectively than individual reimbursements to victims for seeking their own mental health and medical services. In addition to the cost containment for each individual victim that occurs when TRC as the provider is paid by VCGCB (because it seeks to serve as many people as possible, as opposed to a victim potentially incurring more expensive services elsewhere) TRC has served seven times as many victims in need of mental health services as the entire panel of San Francisco fee-for-service providers. TRC provides services more efficiently, and is able to reach more people (which often mitigates cost savings). If these services are needed, however, there may be additional long term savings by providing them to victims who would not seek them otherwise and would have a slower recovery period. Page 2 SB 733 (Leno) The $3,000,000 appropriation that will fund the grant program may only come from the Restitution Fund, which is designed to fund victims' services. The current system largely relies on individual victims seeking mental and physical medical services, and then applying to the VCGCB for reimbursement, which can take several months. Requiring VCGCB to administer a new grant program will increase existing workload, and it is unclear if new staff would be required. A Bureau of State Audits (BSA) report from December 2008 criticized the size of the VCGCB administration relative to services provided and the efficiency of reimbursement processing. The BSA report also criticized VCGCB outreach, contending that many victims are completely unaware of its existence and program. The LAO estimates that in 2006-07, VCGCB administrative costs accounted for $39,000,000 - about 31% of the annual funding for that year. It is possible that the VCGCB could absorb the administration and evaluation of this program within existing resources.