BILL ANALYSIS Ó AB 138 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 138 (Beall) As Amended August 15, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |51-27|(May 31, 2011) |SENATE: |23-14|(August 31, | | | | | | |2011) | ----------------------------------------------------------------- Original Committee Reference: AGING & L.T.C. SUMMARY : Requires the California Department of Aging (CDA) and Area Agencies on Aging (AAA's) to utilize the Elder Economic Security Standard Index (Elder Index), as defined, to specify the costs in the private market of meeting the basic needs of elders in each planning and service area, and identifies the number, or percentage, of elders who are living at or below the Elder Index. The Senate amendments 1)Remove the requirement that directs the CDA use the Elder Index to track the progress of participants in the state-administered Senior and Community Service Employment Program (SCSEP). 2)Remove the requirement that CDA and AAA's report the number of elders living below the Elder Index security threshold. 3)Add intent language that CDA and AAA's utilize the Elder Index as a planning tool in the development of local area plans, and as a guide in allocating existing resources that support senior services in communities. 4)Require the CDA and AAA's to utilize the Elder Index as a reference when making decisions about allocating existing resources, as long as the Elder Index is updated using county specific information, and made available to AAA's in a format that shows each county's data. EXISTING LAW : 1)Establishes the federal Older Americans Act (OAA) which AB 138 Page 2 provides a national network of state units on aging and AAA's to deliver home and community-based programs for older adults. Programs include nutrition, transportation, information and assistance, elder abuse prevention and caregiver support. 2)Establishes the Older Californians Act which provides state-funded programs and services for older adults and people living with disabilities. 3)Requires AAA's to conduct regular needs assessments in their planning and service area to document the service needs of older adults and adults with disabilities. AS PASSED BY THE ASSEMBLY , in addition to current language, this bill required the CDA to use the Elder Index to track the progress of participants in the state-administered Senior and Community Service Employment Program (SCSEP), as well as report the number of seniors living below the index threshold. FISCAL EFFECT : According to the Senate Appropriations Committee, although this bill states that the Elder Index should be used by CDA and AAAs to guide decisions related to services within existing resources, the Index currently available online shows that the federal poverty level (FPL), as of 2007, covers less than half of the basic costs experienced by older California adults and that that gap is roughly $10,000 per elder. Some believe that by referencing the Elder Index and identifying the number of elders living at or below the Index, this bill would imply that elder Californians are in need of additional resources and programs. Thus, there could be unknown, but significant, cost pressure. There are over 4.4 million Californians aged 60 and up, of which about 10% live below the poverty line. COMMENTS : California has 33 AAA's that contract and support a wide range of services designed to keep older adults and adults with disabilities independent and in their own homes and communities for as long as possible. To ensure that programs and services funded by the AAA adequately serve the older adults within each community, AAA's are required to conduct a needs assessment every four years to document the service needs of community residents and any gaps in the service network, focusing on seniors in the "greatest social and economic need." The needs assessment process typically includes a community-wide survey, community meetings, and information received from AB 138 Page 3 stakeholders and key informants. Federal poverty guidelines (FPG) and the Elder Index . Since 1965, there have been two slightly different versions of the federal poverty measure - the FPG and the federal poverty thresholds. The poverty thresholds are the original version of the federal poverty measure and are updated by the Census Bureau each year. The thresholds are used primarily for statistical purposes. The FPG is issued each year in the Federal Register and are a simplification of the poverty thresholds. They are used for administrative purposes, including determining financial eligibility for certain federal programs. The FPG is sometimes loosely referred to as the federal poverty level. For 2011, an individual with an income below $10,890 is considered impoverished using the FPG. Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. / (916) 319-3990 FN: 0002291