BILL ANALYSIS Ó
AB 69
Page 1
ASSEMBLY THIRD READING
AB 69 (Beall)
As Amended May 27, 2011
Majority vote
HUMAN SERVICES 6-0 APPROPRIATIONS 12-5
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|Ayes:|Beall, Jones, Ammiano, |Ayes:|Fuentes, Blumenfield, |
| |Grove, Butler, Swanson | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Allows counties to identify, through the Social
Security Administration (SSA) benefits database, needy seniors
who may be eligible for CalFresh benefits in order to enroll
them and improve their nutrition. Specifically, this bill :
1)Requires the Department of Social Services (DSS) to allow
counties to use existing information from SSA to identify
low-income seniors and simplify their CalFresh enrollment as
long as the counties have the ability to adapt their existing
automation systems without significant changes or costs.
2)Requires DSS to support enrollment efforts by:
a) Working with SSA to identify low-income seniors age 60
or older whose income and other factors are likely to
qualify them for CalFresh benefits;
b) Simplifying the application process which may include
strategies used by other states, as specified; and,
c) Seeking waivers, grants, or other necessary federal
authority and support.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
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1)Data suggest that there are currently 440,000 CalFresh
eligible households with Social Security recipients. If this
streamlined system allows 100,000 people who would otherwise
not receive CalFresh benefits to participate in the program it
would result in almost $10 million in additional federal
CalFresh benefits flowing into California.
2)Unknown one-time costs, potentially in excess of $100,000, for
DSS to develop a streamlined application process for SSA
recipients.
COMMENTS : According to the author, senior participation in the
CalFresh program is disturbingly low and this bill attempts to
reach out to this vulnerable group and enroll them in CalFresh.
Background : Good nutrition is especially important for seniors.
It can help improve resistance to illness and disease or help
manage existing health problems. It can improve mental acuity
and increase longevity. And for many seniors relying on
prescription medications, nutrition is vital - as many
medications are required to be taken with food.
But many seniors are struggling. According to the Elder
Economic Security Standard Index, about half a million seniors
who live alone are not able to make ends meet. Many struggle to
afford nutritious food. According to the California Health
Interview Survey, nearly 20% of low-income seniors in California
are "food insecure" or an inability to secure adequate food.
While a number of programs exist to increase resources for food,
one of the largest remains severely underutilized: only 10% of
eligible seniors participate in CalFresh and only 5% of eligible
Social Security recipients in California participate in
CalFresh.
Since the creation of the Food Stamp Program, very few seniors
have participated. In the 1970's, "Cashout" was established and
since then seniors on Supplemental Security Income (SSI) in
California have been prohibited from participating. This has
meant a large segment of the senior population has been
ineligible for quite some time while non-SSI (i.e., eligible)
senior populations have been confused over their eligibility
(especially those receiving other benefits from SSA).
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Since 1997, the federal government has required SSA to give SSI
applicants the opportunity to file a food stamp application.
This requirement and a general interest in increasing enrollment
among seniors have led many states to develop and test the now
proven successful strategies that have increased enrollment
among SSI recipients. However, no such efforts have occurred to
enroll recipients of Social Security.
Why senior participation is so low : CalFresh participation is
low across all populations, but there are clearly some unique
barriers to participation among seniors such as transportation,
a confusing application process, and the perceived stigma of
receiving "charity." Despite some special rules for seniors the
application process is still challenging for many. Other states
have taken steps to make it easier for some seniors to
participate. For example, many states operate Combined
Application Projects (CAPs) to enroll elderly SSI recipients
into SNAP (the federal name for CalFresh). Though SSI
recipients in California are ineligible for CalFresh, the
approaches used in other states may prove successful if applied
to other California senior populations that are indeed eligible.
Given that the SSA was the primary partner in the CAP projects
in other states, the hope is that they could be enlisted in an
effort to test strategies for enrolling Social Security
recipients in California into CalFresh. This bill seeks to
design and implement a simplified application process that would
use the existing information within the SSA database to identify
eligible CalFresh seniors and enroll them in a very streamlined
fashion. If successful, counties could increase senior
participation and obtain critical nutrition benefits for this
vulnerable group. At the same time, the increase in
participation would have the added plus of infusing much needed
economic stimulus for grocery stores, farmers, and related
businesses involved in the growing, selling, and distribution of
food. Indeed, this effect is recognized with the support from
the California Farm Bureau Federation, California Retailers
Association, California Grocers Association, and the California
Restaurant Association.
Positive fiscal effect of food stamp benefits : According to
Moody's Investor Services, an independent provider of credit
ratings and financial services research, CalFresh benefits have
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the highest economic multiplier effect out of all government
programs or fiscal policy tools that stimulate the economy.
Moody's finds that for every CalFresh dollar spent, $1.74 is
generated in economic activity. (The U.S. Department of
Agriculture finds this amount to be $1.84). Additionally, these
benefits generate sales tax revenue for county and the state
coffers. To the extent that this bill increases CalFresh
participation, the state could expect to receive additional
state General Fund revenue due to increased taxable purchases by
recipients. This is possible because studies show that
low-income families such as CalFresh recipients spend
approximately 45% of their income on taxable goods. By
providing these families with CalFresh benefits, 45% of the
money previously used by the family to purchase food would now
be used for purchasing taxable goods.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089
FN: 0001021