BILL ANALYSIS �
SENATE HUMAN
SERVICES COMMITTEE
Senator Leland Y. Yee, Chair
BILL NO: AB 1094
A
AUTHOR: Brown
B
VERSION: May 24, 2013
HEARING DATE: June 25, 2013
1
FISCAL: Yes
0
9
CONSULTANT: Tepring Piquado
4
SUBJECT
CalWORKs: eligibility
SUMMARY
Expands the definition of disability-based unearned income
to include veteran's disability compensation for purposes
of the income disregard under CalWORKs.
ABSTRACT
Existing law:
1) Establishes the Temporary Assistance for Needy
Families (TANF) program as a block-grant program to
support needy children and families, and permits each
state to implement the program under its own state
plan. (42 USC � 601 et seq.)
1) Provides in California statute for the allocation
of funds for cash assistance and other social services
for low-income families through the California Work
Opportunity and Responsibility to Kids (CalWORKs)
program. Under this program, each county provides
Continued---
STAFF ANALYSIS OF ASSEMBLY BILL 1094 (Brown) Page
2
assistance through a combination of state, county
funds and federal TANF funds. (WIC � 10530)
2) Establishes the maximum monthly aid benefits
provided under CalWORKs. (WIC � 11450)
3) Defines "Disability-based unearned income" as state
disability insurance benefits, private disability
insurance benefits, temporary workers' compensation
benefits, and social security disability benefits.
(WIC � 11451.5 (b) (2))
4) Establishes a method to calculate an income
disregard pertaining to disability-based unearned
income, as specified. (WIC � 11451.5)
This bill:
1) Expands the definition of disability-based unearned
income to include any veteran's disability
compensation.
2) Requires the State Department of Social Services
(DSS) to implement the changes by means of an
all-county letter or similar instruction without
taking regulatory action, on or before July 1, 2014.
FISCAL IMPACT
An Assembly Appropriations Committee analysis indicates
that DSS 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 /Maintenance of Effort).
BACKGROUND AND DISCUSSION
Purpose of the bill
STAFF ANALYSIS OF ASSEMBLY BILL 1094 (Brown) Page
3
According to the author, current law establishes a $225
disability-based unearned income disregarded when computing
the individual's CalWORKs benefits. Unfortunately,
veterans' disability compensation is not among the
categories of unearned income that is currently eligible
for the $225 disregard. In order to fix this discrepancy,
the author argues, veteran benefits need to be treated in
the same way disability benefits are.
California Work Opportunity and Responsibility to Kids
(CalWORKs)
The CalWORKs program is supervised by DSS and administered
by the counties, which determine eligibility. CalWORKs
provides cash assistance to nearly 600,000 needy families,
including approximately 1.2 million children.
Income disregard
Certain types of unearned income which are provided to
disabled persons are calculated separately from other
unearned income. Income in this category gets a special
disregard in the recipient income test and the grant
computation. This has the effect of increasing a
recipient's grant. The current disability disregard allows
families receiving CalWORKs benefits to maintain some or
all of their disability payment, as well as a small amount
of their earned income, in addition to their CalWORKs
grant. However, not all types of "disability-based"
unearned income are included in this category.
Current statute does not include veteran's disability
compensation within the CalWORKs definition of
disability-based unearned income for purposes of
calculating grants. Therefore, poor disabled veterans with
families are not able to maintain the same amount of
monthly income, before the monthly grant is calculated, as
a CalWORKs recipient who receives disability benefits that
are unrelated to military service.
Veterans in California
According to September 2012 estimates from the California
Department of Veterans Affairs, California is home to
STAFF ANALYSIS OF ASSEMBLY BILL 1094 (Brown) Page
4
nearly 2 million veterans, or about 8 percent of the
national veterans population of 22.3 million.
The US Department of Veterans Affairs reports that as of
the end of November 2010, 251,937 veterans were receiving
monthly disability compensation benefits in California. It
is unknown how many veterans are also recipients of
CalWORKs.
Veterans' Disability Compensation
Veteran Disability Compensation is a tax-free monetary
benefit paid to veterans who have disabilities that are the
result of a disease or injury incurred or aggravated during
active military service. Compensation also may be paid for
post-service disabilities that are considered related or
secondary to disabilities occurring in service and for
disabilities presumed to be related to circumstances of
military service, even though they may arise after service.
Generally, the degrees of disability specified are also
designed to compensate for considerable loss of working
time from exacerbations or illnesses.
Compensation rates are not income-based - they are
determined by the level of impairment as set forth in
accordance with the Schedule for Rating Disabilities (38
CFR, Part 4). There are eleven possible levels of
disability assignable for any condition, from 0% to 100%,
in 10% increments. The Veterans Administration provides
compensation to Veterans who are at least 10% disabled
because of injuries or diseases that occurred or were
aggravated during active military service.
PRIOR VOTES
Assembly Floor: 77 - 0
Assembly Appropriations: 17 - 0
Assembly Human Services: 7 - 0
POSITIONS
Support: Western Center on Law and Poverty (sponsor)
Coalition of California Welfare Rights
STAFF ANALYSIS OF ASSEMBLY BILL 1094 (Brown) Page
5
Organizations (sponsor)
Asian Law Alliance
California Association of Food Banks
California Catholic Conference
California Communities United Institute
Cuesta College CalWORKs
Disability Rights California
National Association of Social Workers
St. Anthony Foundation
Oppose: None on file.
-- END --