BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 134 (Hueso) - CalFresh eligibility.
Amended: April 8, 2013 Policy Vote: Human Services 6-0
Urgency: No Mandate: Yes
Hearing Date: May 23, 2013 Consultant: Jolie Onodera
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: SB 134 would:
Require the DSS to submit a federal waiver request by
December 31, 2014, in order to exclude military housing
allowances from countable income when determining CalFresh
eligibility and benefit level.
Require the provisions of the federal waiver to be
implemented within six months of waiver approval.
Require counties that participate in CalFresh E&T to
exempt active military personnel and veterans from mandatory
placement in CalFresh E&T.
Provide that a veteran applying for CalFresh benefits who
is required to register to work, but who is exempt from
mandatory placement in CalFresh E&T, shall be provided with
a referral to local veteran's assistance and job training
agencies and be given the opportunity to participate as a
volunteer in CalFresh E&T if the county administers that
program.
Fiscal Impact:
CalFresh E&T Exemption
Ongoing, non-reimbursable county administrative costs
(Local) to screen all CalFresh applicants for veteran status
and provide a referral to local veterans' assistance and job
training agencies, as specified.
Potential future substantial increase in CalFresh benefits
(Federal) and administration costs (Federal/General/County)
in participating CalFresh E&T counties due to the exemption
from mandatory placement in CalFresh E&T for both active
military personnel and honorably discharged veterans. For
every 5,000 persons who would otherwise have been sanctioned
for six months if not for the exemption, increased CalFresh
benefits of $8.9 million (Federal), administration of $0.8
million ($0.4 million General Fund), and economic benefit of
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$150,000 (General Fund).
Background: Approximately 1.9 million households in the state
receive CalFresh, California's name for the national
Supplemental Nutrition Assistance Program
(SNAP), which provides benefits to low-income households to
alleviate hunger and to improve nutrition and health by helping
individuals meet their nutritional needs. The state also
provides benefits through the California Food Assistance Program
(CFAP) to about 47,000 eligible legal immigrants who are not
eligible for federal nutrition assistance.
The CalFresh application process includes completing and filing
an application, being interviewed, and providing information
subject to verification in order to determine eligibility and
benefit level. In order to qualify for CalFresh benefits, a
recipient must meet both the gross and net income tests. Gross
income cannot exceed 130 percent of the federal poverty level
(FPL) (or 165 percent of FPL if the household includes an
elderly or disabled person) and includes all income from any
source, both earned and unearned, with specified exemptions.
Upon passing the gross income test, net income, which cannot
exceed 100 percent FPL, is determined by deducting a percentage
of household expenses for shelter, utilities, dependent care,
medical care, earned income, and other funds from a household's
gross income.
Income exclusions under federal law include, but are not limited
to, public assistance vendor payments for medical, child care,
energy, emergency, and housing assistance payments made through
a state or local housing authority. Other third party payments
that are legally obligated and otherwise payable to the
household which are diverted by the provider of the payment to a
third party are not excluded and must be counted as income.
Housing provided for military families on base is not considered
countable income (paid in kind), but military families required
to live off base who receive a military stipend must count the
stipend as income for income eligibility purposes under
CalFresh. The California Military Department indicates the basic
allowance for housing (BAH) is non-taxable and received as a
supplement to base pay. The BAH amount is based on employment
classification, dependent status, and zip code. For 2013, BAH
rates for class E-1 and E-2 personnel grades (lowest level pay
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scales) with dependents range from $870 per month in China Lake
to $2,784 per month in San Francisco.
CalFresh E&T
The United States Department of Agriculture (USDA) provides
annual funding for program administration of the Food Stamp
Employment and Training program (designated in California as the
CalFresh E&T program) to provide job training services for
non-assistance food stamp (NAFS) applicants and recipients. The
CalFresh E&T program is administered by the counties and
overseen by the DSS. For Federal Fiscal Year (FFY) 2013, there
are currently 26 counties participating in the CalFresh E&T
program. In FFY 2012, 26 counties participated in CalFresh E&T,
the estimated number of work registrants was 1,005,894, and the
approved CalFresh E&T budget was $86.2 million.
Proposed Law: See Bill Summary.
Related Legislation: SB 43 (Liu) Chapter 507/2011 required
counties that elect to participate in the CalFresh E&T program
to screen participants for participation or deferral.
Staff Comments: This bill requires the DSS to submit a federal
waiver request in order to exclude military housing stipends
from countable income when determining CalFresh eligibility and
benefit level, and require the provisions of the federal waiver
to be implemented within six months of waiver approval. To the
extent the waiver is approved, there could be unknown, but
potentially significant costs to the extent automation changes
are required to enable the eligibility system to identify and
track this specific population. It is also unknown what type of
federal reporting might be required as a condition of waiver
approval. The CalFresh application currently does not include a
category designation for military personnel. Upon waiver
approval, counties would be required to implement the
eligibility process changes within six months. As any required
automation changes would likely not be completed within this
timeframe, county eligibility workers could incur significant
state-reimbursable administrative costs (General Fund) to create
a process to identify, verify, and collect the military housing
allowance information in order to determine CalFresh eligibility
and benefit level.
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Given the amount of the BAH is sizable (as noted above, BAH
ranges from $870 to $2,784 per month), military personnel in the
entry level pay scales (E-1: $1,516/month and E-2: $1670/month)
could potentially be eligible for CalFresh benefits if the BAH
is excluded from countable income. The 2013 FPL for a family of
four is $1,962 per month. It is unknown how many E-1 and E-2
personnel with dependents currently receiving a BAH would
potentially apply for and receive CalFresh benefits, but the
potential ongoing increase in CalFresh benefits and
administrative costs could be significant.
State regulations currently allow counties to defer (exempt)
specific populations of work registrants from mandatory
participation in the CalFresh E&T program. Those who are
deferred may voluntarily participate and are not subject to
CalFresh sanctions (ineligibility for aid) for
non-participation. For mandatory placements, failure to
participate without documented good cause results in sanctions
for one, three, and then six months. CalFresh E&T is elective
for counties, but should a county choose to implement the
program, participants in that county who are deemed eligible
must participate in order to receive CalFresh benefits.
This bill makes changes to the administration of the CalFresh
E&T program by expanding the population eligible for exemption
from work program requirements, thereby potentially reducing the
number of recipients subject to sanction. This bill would
require counties to screen work registrants for veteran status
and CalFresh E&T program deferral, and would require an
individual to be deferred from mandatory placement if he or she
is currently serving in the United States (U.S) Armed Forces or
is a veteran who has been honorably discharged from the U.S.
Armed Forces. Once identified as a veteran who is a work
registrant exempt from mandatory placement, counties would be
required to provide a referral to local veterans' assistance and
job training agencies.
Under existing law, individuals are deferred from mandatory
placement in CalFresh E&T if they reside in a federally
determined work surplus area. According to the U.S. Department
of Labor, the qualifying rate for a Labor Surplus Area (LSA)
classification is 20 percent above the national average
unemployment rate. California's unemployment rate has
historically exceeded national trends, and nearly all counties
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in California currently qualify as a work surplus area. As a
result, nearly all CalFresh E&T program participants are
currently deferred from mandatory placement and would not be
subject to CalFresh sanctions due to non-participation. The
provisions of this bill would not have any impact on sanctions
and CalFresh benefits until counties participating in CalFresh
E&T no longer qualify as a work surplus area. In the future,
when work surplus status is lifted, the provisions of this bill
could result in fewer recipients being sanctioned than otherwise
would have under existing law to the extent they would not have
otherwise been deferred from mandatory placement if not for
their military status.
Deferring mandatory placement for these individuals could result
in increased annual CalFresh benefits of an unknown but
potentially significant amount in the millions of dollars. For
every 5,000 individuals who would otherwise have been sanctioned
for up to six months, increased CalFresh benefits of $8.9
million (average monthly benefit of $149 per individual), with
associated administration costs of $0.8 million ($0.4 million
General Fund). The administrative costs would be offset to some
degree by cost savings for re-certification costs that would
have otherwise been incurred for sanctioned cases. Staff notes
that research also indicates that every $1 in CalFresh benefits
spent generates $1.79 in economic activity.
Recommended Amendment: In order to clarify and remove the
potential state-reimbursable mandate created in Section 4 of the
bill, staff recommends the following amendment:
SEC. 4. Section 18926.6 is added to the Welfare and Institutions
Code, to read:
18926.6. A county that elects to participate in the CalFresh E&T
program shall provide a A veteran applying for CalFresh benefits
who is required to register to work, but who is exempt from
mandatory placement in the CalFresh E&T program pursuant to
Section 18926.5, shall be provided with a referral to local
veterans' assistance and job training agencies and provide the
veteran with be given the opportunity to participate as a
volunteer in CalFresh E&T if the county administers that
program.
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Author amendments would do the following:
Remove the local mandate in Section 4 of the bill.
Remove the requirement for DSS to seek a federal waiver.