BILL ANALYSIS Ó SENATE HUMAN SERVICES COMMITTEE Senator Carol Liu, Chair BILL NO: AB 1640 A AUTHOR: Mitchell B VERSION: May 25, 2012 HEARING DATE: June 26, 2012 1 FISCAL: Yes 6 4 CONSULTANT: Mareva Brown 0 SUBJECT CalWORKs benefits: pregnant mothers SUMMARY Requires CalWORKs aid to be paid to a pregnant mother who is 18 years of age or younger at any time after verification of pregnancy, regardless of whether she is eligible for the Cal-Learn Program. Current law extends benefits only in the third trimester of pregnancy, or upon verification of pregnancy if the pregnant mother is a participant in Cal-Learn. ABSTRACT Existing law 1.Establishes, under federal law, the Temporary Assistance for Needy Families (TANF) program, providing block grants to eligible states as part of a welfare-to-work program for qualified low-income families. 2.Establishes, under state law, the CalWORKs program, which Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageB is funded through a combination of state and county funds and federal funds received through the TANF program, to provide eligible low-income families cash assistance and employment services. (WIC 11200 et seq.) 3.Requires payment of CalWORKs aid to a pregnant mother in a family without a needy child qualified for aid for the month in which the birth is anticipated and for the three-month period immediately prior to the month in which the birth is anticipated. (WIC 11450 (b)) 4.Establishes the Cal-Learn program to provide intensive case management, support services, a comprehensive range of health and social services and other services to teenagers under age 19 without a high school diploma or equivalent, who are pregnant or parenting). (WIC 11331) 5.Requires that teens, in order to qualify for aid under Cal-Learn, participate in school on a full-time basis until earning her high school diploma or its equivalent, as specified. (WIC 11331.5) 6.Requires payment of CalWORKs aid to a pregnant mother without other children upon verification of pregnancy if the pregnant teen also is eligible for the Cal-Learn Program. (WIC 11450 (b)(1)) 7.Requires that CalWORKs aid be paid to eligible pregnant teens pursuant to this section only when the Cal-Learn program is operative. (WIC 11450 (b)(2)) This bill 1.Requires that CalWORKs benefits be provided to any eligible pregnant woman aged 18 or younger at any time after verification of pregnancy. 2.Eliminates the requirement that pregnant women be eligible for the Cal-Learn program in order to qualify for CalWORKs aid under this section. FISCAL IMPACT An Assembly Appropriations analysis projects annual CalWORKs grant and administrative costs of approximately STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageC $500,000 (Temporary Assistance for Needy Families/General Fund (TANF/GF)) to the extent that 500 young women under the age of 18 receive an additional three months of CalWORKs benefits. Additionally, to the extent eligible pregnant women early in their pregnancy receive three months of CalFresh benefits that they had not otherwise applied for, this bill could bring in an additional $220,000 in federal food and nutrition benefits. The administrative costs for those cases would be approximately $120,000 ($60,000 GF). BACKGROUND AND DISCUSSION Purpose of the bill According to the author very young, poor, pregnant women who don't receive grant income and uninterrupted supportive services are more likely to experience premature and low-birth-weight babies. Their children are more likely to experience health and behavioral challenges which may have life-long impacts on child development. These young women are experiencing multiple stressful situations during their pregnancies. The author cites studies that indicate that maternal stress can negatively affect pregnancy and have long-term impacts on the baby's development and well-being. This bill ensures that pregnant girls aged 18 or younger who have no other children, and are not living with a parent who is receiving CalWORKs benefits, can receive aid as soon as their pregnancy is verified. This bill has been substantially amended from versions heard in the Assembly, which would have provided eligibility to CalWORKs and Medi-Cal for women aged 18 and older upon verification of pregnancy, rather than beginning in the third trimester. This version of the bill, which was amended to reduce projected costs, focuses solely providing CalWORKs eligibility for pregnant teens upon verification of pregnancy. Effect of Poverty on Pregnancy Various research reports have suggested a correlation STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageD between poverty and low birth weights and between poverty and psychological stress. A 2008 study published in Health Psychology additionally showed correlations between the psychological state of a pregnant mother and the health of the fetus. Mothers experiencing a high amount of stress during pregnancy deliver their infants earlier and at lower birth weights. Children who are born too early and who weigh less at birth are at a higher risk for "infant mortality, infant morbidity, and health problems that may persist into childhood, adolescence and adulthood."<1> The study also found that pregnancy-specific stress - related to concern about the pregnancy and associated life changes - is an even more powerful contributor to birth outcomes than general stress. Resilience among children in difficult environments was shown to be improved with parental management and support skills, according to a 1997 study. The study found that exposure to stress can have detrimental effects on children and adolescents, but that a child's resilience can mitigate some of those effects. It found that prenatal and primary care can further moderate the effects of stress. Long-term stressors include deprivation, abuse, and poverty. <2> According to researchers at Brown University, large developmental delays and limitations in function were common among children with very low birth weights. The study, published in the journal, Clinics in Perinatology in 2002, found that minority status and living in a household headed by a single mother further worsen the disadvantages associated with a very low birth weight and that that TANF eligibility requirements may increase difficulty in obtaining prenatal and other medical services for mothers ------------------------- <1> Label, Marci, et. Al. "Pregnancy-Specific Stress, Prenatal Health Behaviors, and Birth Outcomes." Health Psychology 27.5 (2008): 604 -615. <2> Smith, Carolyn and Bonnie E. Carlson. "Stress, Coping, and Resilience in Children and Youth."Social Service Review 71.2 (1997): 231-256. STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageE and children in need.<3> California's teen pregnancy rate Teen pregnancies have fallen to their lowest rate since 1991, according to the California Department of Public Health. In 2010, there were 29 births for every 1,000 females aged 15-19. This was a drop from a rate of 32.1 births in 2009 and from a record high rate of 70.9 births in 1991. Nationally, in 2010, California ranked 22nd among all states in birth rates among teens aged 15-19, and was below the national average, according to data compiled by the Kaiser Family Foundation. Other states In its "Welfare Rules Databook: State TANF Policies as of July 2010," the Urban Institute compares state policies on providing welfare-to-work benefits to pregnant women with no other children. Of 31 states that provide benefits to this population, 20 provided benefits earlier than California's third trimester policy and eight states, including New York and Illinois, provide benefits as early as the first month of pregnancy. Related legislation SB 35 (Committee on Budget), Chapter 69, Statutes of 1993, and SB 1078 (Watson), Chapter 1252, Statutes of 1993, established the Cal-Learn Program. SB 72 (Committee on Budget and Fiscal Review) Chapter 8, statutes of 2011, the human services trailer bill, made the Cal-Learn Program inoperative from July 1, 2011, to June 30, 2012, with the exception of the payment of supplements and bonuses to eligible participants. Arguments in support According to the Western Center on Law and Poverty, the ------------------------- <3> "Family factors and social support in the developmental outcomes of very low-birth weight children," Dennis Hogan, JM Park, Population Studies and Training Center, Brown University, Providence, Rhode Island. Clin Perinatol. 2000 Jun;27(2):433-59. STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageF bill's co-sponsor, California's comprehensive approach to pregnancy prevention among teens has put California in the forefront of reducing teen pregnancy. "Still, in 2009, nearly 48,000 babies were born to teen moms, some of whom came from low-income homes. Teen moms who are poor and lack parental support should not have to wait until their third trimester to get basic needs grants to prevent hunger and homelessness and the support services to help them succeed despite the challenges of being a young mother. ? AB 1640 establishes a very modest baseline of support for a very vulnerable population." Arguments in opposition The state Department of Finance in April issued a letter of opposition to the bill, noting that the bill would expand cash aid to a number of pregnant women. Since then, the bill has been substantially amended to remove a requirement to provide aid for adult pregnant women upon verification of pregnancy. DOF notes that the April letter is out-of-date, but does not have an updated position on the bill. Comments Under current law, a pregnant teen with no other eligible children in the household is not eligible for basic needs cash assistance through CalWORKs until the third trimester, unless she is eligible for the Cal-Learn program. The Cal-Learn program has been suspended in the budget since July 1, 2011, although the suspension is set to sunset on June 30, 2012. The Governor's proposed 2012-13 budget eliminates the Cal-Learn program entirely, except for stipends to be paid to successful graduates. This bill would therefore do one of two things: a) If the Governor's elimination is accepted or the Cal-Learn program suspension is continued past the current sunset date, the bill would require that all otherwise eligible pregnant teens not living in an STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageG assisted household become eligible for CalWORKs assistance upon verification of their pregnancy. b) If the Governor's elimination is rejected and the Cal-Learn suspension sunsets, the bill would require that pregnant teens who do not qualify for assistance through the Cal-Learn program but are eligible for CalWORKs are able to receive benefits. It also ensures immediate access to CalWORKs aid if the Cal-Learn program is phased in over time. PRIOR VOTES Assembly Floor: 50 - 24 Assembly Appropriations:12 - 0 Assembly Human Services: 4 - 2 POSITIONS Support: California Black Women's Health Project (sponsor) Western Center on Law and Poverty (sponsor) American Federation of States, County and Municipal Employees California Association of Food Banks California Catholic Conference, Inc. California Communities United Institute California Food Policy Advocates California Hunger Action Coalition California WIC Association Children Now Catholic Charities of California United Coalition of California Welfare Rights Organizations, Inc. California State Association of Counties California Welfare Directors Association East Bay Community Law Center Laborers' Local 777 Laborers' Local 792 Legal Services for Prisoners with Children National Association of Social Workers National Health Law Program Public Counsel Law Center STAFF ANALYSIS OF ASSEMBLY BILL 1640 (Mitchell) PageH St. Anthony's Foundation San Diego Hunger Coalition Santa Clara County Board of Supervisors United Ways of California Zero to Three Oppose: California Department of Finance -- END --