BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1094
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1094 (Brown) - As Introduced:  February 22, 2013 

          Policy Committee:                              Human  
          ServicesVote:7 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill expands the definition of disability-based unearned  
          income, for purposes of the income disregard under the CalWORKs  
          program, to include veteran's disability compensation.  

           FISCAL EFFECT  

          The Department of Social Services is unable to determine how  
          many cases would be affected by this change or the average  
          increase in the CalWORKs grant.  Given the average disability  
          compensation for veterans is $947 per month, it is likely that  
          only veterans in families of four or more would be able to  
          benefit from this disregard. If, for example, 500 veterans and  
          their families receive an increase in CalWORKs of $100 per month  
          due to this disregard, it would cost approximately $600,000 per  
          year (Temporary Assistance for Needy Families [TANF]/Maintenance  
          of Effort [MOE]). 

           COMMENTS  

           1)Purpose  . The intent of this legislation is to assist disabled  
            veterans who are returning from the Iraq and Afghanistan wars  
            and who may be receiving a CalWORKs grant.  The author notes  
            most types of disability benefits include a $225 disregard for  
            calculating CalWORKs benefits. Veteran benefits, however, are  
            deducted dollar for dollar from these returning soldiers'  
            CalWORKs grant, a grant that is currently at the same level as  
            the AFDC grant in 1986. In order to fix this discrepancy, the  
            author argues, veteran benefits need to be treated in the same  
            way as other disability benefits.  









                                                                  AB 1094
                                                                  Page  2

           2)Income Disregard  . The current disability income/earned income  
            disregard allows families receiving CalWORKs benefits to  
            ignore up to $225 of their disability payment in the  
            calculation of their CalWORKs grant amount.  Provided their  
            disability income does not make them ineligible, families with  
            parents who are exempt from work requirements due to a  
            disability that will not allow them to work can still benefit  
            from CalWORKs aid and services. In this case, veterans would  
            be able to disregard $225 of their $947 monthly disability  
            payment and would have their eligibility and grant amount  
            calculated based upon a monthly disability income of $722. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081