BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 1579 (Stone) - CalWORKs: pregnant women.
          
          Amended: May 27, 2014           Policy Vote: Human Services 3-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 14, 2014                           
          Consultant: Jolie Onodera       
          
          SUSPENSE FILE. AS AMENDED.
          
          
          Bill Summary: AB 1579 would, beginning July 1, 2015, provide  
          CalWORKs benefits to a pregnant woman three months earlier, to  
          include the month in which the birth is anticipated and for the  
          six-month period immediately prior to the month in which the  
          birth is anticipated.

          Fiscal Impact (as approved on August 14, 2014): 
              Ongoing increased costs of $7.2 million (General Fund) to  
              provide CalWORKs benefits three months earlier than provided  
              for under existing law, assuming continuing operation of the  
              CalLearn Program. This estimate is based on 3,025 pregnant  
              women each year being impacted by the provisions of this  
              bill.
              Should the CalLearn Program be suspended in the future,  
              potential loss of savings in excess of $20 million (General  
              Fund) annually, as over 9,000 pregnant teens would have  
              otherwise been eligible for CalWORKs benefits only during  
              their third trimester under existing law upon suspension of  
              the CalLearn Program.
              One-time potentially significant costs to the DSS for  
              automation changes necessary due to changing eligibility  
              criteria for this program.
              Unknown, potential future cost savings in health and other  
              governmental program services costs to the extent the  
              provision of assistance earlier during a woman's pregnancy  
              results in healthier children and better overall life  
              outcomes for these families.

          Background: Under existing law, CalWORKs aid is required to be  
          provided to a pregnant woman, regardless of age, in a family  
          without a needy child for the month in which the birth is  
          anticipated and for the three-month period immediately prior to  








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          the month in which the birth is anticipated. 

          Existing law additionally provides that, when the CalLearn  
          Program is operative, CalWORKs aid payments shall be paid at any  
          time after verification of pregnancy if a pregnant teen and the  
          child, if born, would have otherwise qualified for CalWORKs aid.

          The Cal-Learn Program was established to provide intensive case  
          management to assist teen parents to obtain education, support  
          services, and a comprehensive range of health and social  
          services, as well as provide payments for necessary child care,  
          transportation, and educational expenses to enable pregnant and  
          parenting teens to attend school. Successful participation is  
          encouraged through the provision of bonuses earned through  
          report card results and graduating or attaining an equivalent  
          high school diploma.

          The Cal-Learn Program was suspended for one year from July 1,  
          2011, through June 30, 2012. Pursuant to SB 1041, Chapter  
          47/2012, the human services budget trailer bill, the Cal-Learn  
          Program became fully operative commencing April 1, 2013. For the  
          period July 1, 2012, to March 1, 2013, existing law provides  
          that counties were provided with full or partial year funding,  
          depending on their phase-in to full implementation of the  
          Cal-Learn Program by April 1, 2013, as specified.

          Proposed Law: This bill would, beginning July 1, 2015, provide  
          that when a family does not include a needy child qualified for  
          aid under the CalWORKs program, aid shall be paid to a pregnant  
          woman for the month in which the birth is anticipated and for  
          the six-month period immediately prior to the month in which the  
          birth is anticipated.

          Prior Legislation: AB 1640 (Mitchell) Chapter 778/2012 extends  
          CalWORKs aid to a pregnant teen at any time after verification  
          of pregnancy, regardless of whether she is eligible for the  
          CalLearn Program.

          Staff Comments: This bill will result in the provision of  
          CalWORKs benefits to a pregnant woman three months earlier than  
          provided for under existing law. Under existing law, CalWORKs  
          aid is not provided until a pregnant woman's third trimester  
          unless the pregnant woman is eligible for Cal-Learn and the  
          Cal-Learn Program is operative. As a result, the provisions of  








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          this bill are estimated to provide an additional three months of  
          CalWORKs aid earlier than otherwise would have been provided for  
          pregnant women.
           
          The DSS has indicated an average monthly caseload of  
          approximately 252 pregnant women would be eligible three months  
          earlier under the provisions of this bill. The estimated  
          CalWORKs grant, services, and administrative costs for this  
          caseload would be $6.6 million (TANF/General Fund) in 2015-16,  
          and $7.2 million ongoing. This estimate is based on an average  
          monthly CalWORKs grant cost of $387, which includes a five  
          percent grant increase effective April 2015, the $47 per month  
          pregnancy special need payment, services costs for 90 percent of  
          cases of $382 per month, and minor administrative costs. It is  
          assumed these cases would reach the CalWORKs 48-month time limit  
          three months sooner, and because the average time on aid is  
          approximately 24 months, it is assumed an additional three  
          months of aid would be provided for each of these cases.

          Should the Cal-Learn Program be suspended at some point in the  
          future, this bill would provide that aid to both Cal-Learn  
          eligible and non-eligible pregnant teens be provided in the  
          month in which the birth is anticipated and for the six-month  
          period immediately prior to the month in which the birth is  
          anticipated. Under existing law, these pregnant teens would have  
          only received benefits for the three-month period immediately  
          prior to the birth during the suspension of the CalLearn  
          Program. As a result, the potential loss of savings in the event  
          of the future suspension of the Cal-Learn Program would be  
          substantial, potentially in excess of $20 million (General Fund)  
          annually to provide three additional months of CalWORKs  
          benefits, including the monthly supplemental payment, to over  
          9,000 pregnant teens each year. 

          To the extent the provision of assistance three months earlier  
          in a woman's pregnancy results in healthier children born to  
          families could serve to reduce health care and other services  
          costs to these families in the future.

          Recommended Amendments: The author may wish to consider an  
          amendment for consistency to change the references to "pregnant  
          mothers" in Welfare and Institutions Code § 11450(c), which  
          provides for the pregnancy special needs monthly payment of $47,  
          to "pregnant women."








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          Author amendments make various technical changes, including the  
          recommended amendment noted above.