BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: SB 67
Author: Budget and Fiscal Review
As Amended: May 7, 2013
Consultant: Jennifer Troia
Fiscal: Yes
Hearing Date: May 9, 2013
Subject: Budget Act of 2012: In-Home Support Services
(IHSS)
Summary: Statutory changes needed to effectuate a
settlement agreement reached by plaintiffs and the
Administration in several lawsuits against the state based
on reductions to the IHSS program enacted in recent years.
Background: Among several other changes to IHSS that were
adopted in the past four budgets, and that have taken
effect, a 3.6 percent across-the-board reduction in
authorized hours for all recipients has been in effect
since the 2010-11 fiscal year. This reduction is currently
scheduled to expire on June 30, 2013.
In 2010-11, the budget also included savings that would
have resulted from enhanced federal funding obtained as a
match on revenues the state expected to receive and use to
fund IHSS from extending the sales tax to support services,
including IHSS. IHSS providers would have received a
supplemental payment equal to the amount of their new tax
liability. The Department of Health Care Services
submitted its plan to implement this funding mechanism to
the federal government, but the state has still not
received a formal response.
As summarized in the chart below, several additional
reductions to the IHSS program made in the last four state
budgets were enjoined by federal courts from taking effect.
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| | |
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| Policy | Name of Lawsuit |
| | Enjoining Policy |
| | from Taking Effect |
|------------------------------------+---------------------|
| | |
|Loss of eligibility for individuals |Oster (V.L.) v. |
|with assessed needs below specified |Lightbourne, et al. |
|thresholds |(Oster I) |
|------------------------------------+---------------------|
| | |
|Across-the-board reduction of 20 |Oster (V.L.) v. |
|percent of authorized hours, with |Lightbourne, et al. |
|exceptions as specified |(Oster II) |
|------------------------------------+---------------------|
| | |
|Reduction in state participation in |Dominguez v. |
|provider wages (from maximum of |Schwarzenegger, et |
|$12.10 to $10.10 per hour) |al. |
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In March 2013, the Administration and plaintiffs in these
cases reached a settlement agreement, which a federal
district court has tentatively approved. This bill
reflects the language proposed to effectuate the settlement
agreement, with some technical, non-substantive changes.
Proposed Law: This bill:
1)Repeals the provisions underlying the reductions at issue
in the lawsuits settled by the agreement, including:
a) Provisions that had required the State Department
of Social Services (DSS) to implement, under specified
circumstances, a 20 percent reduction in authorized
hours of service for each IHSS recipient, beginning
January 1, 2012, except as specified.
b) Provisions that had reduced the state contribution
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to IHSS provider wages and benefits from a maximum of
$12.10 per hour to $10.10 per hour, effective July 1,
2009.
c) Provisions that had established a stricter
threshold of need to receive IHSS hours based on a
recipient's assessed functional index score (requiring
IHSS recipients to have an overall functional index
score equal to or greater than 2 on the 5-point scale
in order to qualify).
d) Provisions that had established a stricter
threshold of need to receive domestic and related care
services, such as housework, meal preparation, and
laundry (requiring a functional index ranking greater
than 4 for each activity in order to receive service
hours).
1)Establishes an across-the-board reduction of eight
percent in authorized hours of IHSS that would apply to
all recipients for a period of 12 months, starting July
1, 2013;
2)Establishes an ongoing, across-the-board reduction of up
to seven percent in authorized hours of IHSS that would
apply to all recipients upon the expiration of the eight
percent reduction described above, unless it is triggered
off, in whole or in part, by an "assessment" on home care
services, including IHSS, which results in enhanced
federal funding for IHSS.
3)Specifies with respect to these across-the-board
reductions that:
a) They shall be applied to the recipient's hours as
authorized pursuant to the most recent assessment,
and, if applicable, shall be taken first from any
documented unmet need.
b) IHSS recipients may direct the manner in which the
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reduction of hours is applied to previously authorized
services.
c) If a recipient requests a reassessment based only
on the eight or seven percent reductions, his/her
request can be administratively denied. At the same
time, this bill reiterates existing law that a county
shall assess a recipient's need for supportive
services any time the recipient notifies the county of
a need for adjustment or when there are other
indications of a change in circumstances that affects
the recipient's need for services.
d) The notices of action informing recipients of the
eight and seven percent reductions shall be mailed at
least 10 and 20 days, respectively, prior to the
reduction taking effect and include specified
information.
e) Recipients continue to have all appeal rights as
otherwise provided under existing law.
4)Establishes the intent of the Legislature to enact an
assessment on home care services, including IHSS, to
offset the up to seven percent reduction described above.
5)Specifies that, to the extent that the assessment is
implemented retroactively, any resulting funds shall be
used to provide one-time direct reinvestments benefiting
IHSS recipients that do not create ongoing General Fund
obligations. Further, specifies that the fund created to
receive those retroactive resources shall be continuously
appropriated after specified notice or legislative
approval requirements, as applicable, are met.
6)Specifies that the departments of Health Care and Social
Services may implement and administer its provisions
through all-county letters or similar instructions until
regulations are adopted, as specified.
7)Makes an appropriation and declares that the measure is
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to take effect immediately as a bill providing for
appropriations related to the Budget Bill.
Fiscal Effect: The Administration estimates that the eight
and seven percent across-the-board reductions in 2013-14
and 2014-15 would save approximately $160 million General
Fund and $159 million General Fund, respectively.
Support: Unknown
Opposed: Unknown
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