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.