BILL ANALYSIS Ó SENATE HUMAN SERVICES COMMITTEE Senator Carol Liu, Chair BILL NO: SB 1147 S AUTHOR: DeSaulnier B VERSION: March 27, 2014 HEARING DATE: April 8, 2014 1 FISCAL: Yes 1 4 CONSULTANT: Mareva Brown 7 SUBJECT CalFresh: customer service standards: performance goals SUMMARY This bill requires the Department of Social Services (DSS), in collaboration with key stakeholders, to establish and periodically revise statewide CalFresh customer service standards and performance goals. It requires DSS to measure annually the progress made toward the execution of the standards and goals, and to make that information publicly available. The bill requires DSS to develop a data management tool that includes specified data, to make public the data from this management tool and to update it at least quarterly within 60 days following the end of each quarter. It requires the department to use data from the tool to measure the progress made towards the standards and goals. The bill makes related findings and declarations. ABSTRACT Existing law : Continued--- STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageB 1) Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) to promote the general welfare and to safeguard the health and wellbeing of the nation's population by raising the levels of nutrition among low-income households. (7 CFR 271.1) 2) Establishes in California statute the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting specified criteria. (WIC 18900 et seq.) 3) Establishes, under federal law, eligibility requirements for receipt of SNAP benefits, including income that is at or below 130 percent of the federal poverty level and is determined to be a substantial limiting factor in permitting a recipient to obtain a more nutritious diet, as specified. (7 CFR 273.9) 4) Requires a simplified eligibility process for CalFresh enrollment, to include, among other elements, expedited enrollment in Medi-Cal, provisions for tracking data on participants in both programs and requirements for outreach to participants in CalFresh who are eligible, but not enrolled in Medi-Cal. (WIC 18925) 5) Requires each county welfare department to carry out the local administrative responsibilities for the CalFresh program, subject to the supervision of the department and to rules and regulations adopted by the department. (WIC 18902) 6) Requires that an application and an authorization for participation in CalFresh shall be processed within a period of not more than 30 days from the date of application. (WIC 18911 (a)) 7) Requires DSS to collect quarterly, expedited service data, on a county-by-county basis, of the number of applications and the disposition of the applications, and to publish those statistics quarterly. (WIC 18913) STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageC This bill : 1) Makes various findings and declarations about hunger and food insecurity in California, the importance of the state's CalFresh program and the state's poor participation rate in the CalFresh program. 2) Makes various findings and declarations about efforts in other programs and states to improve participation through data-driven policy decisions and performance standards. 3) States Legislative intent to establish statewide CalFresh customer service standards and performance goals and to periodically monitor progress toward meeting those goals in order to improve CalFresh participation and access. 4) Requires the DSS, in collaboration with key stakeholders, to establish statewide customer service standards and performance goals with regard to CalFresh. 5) Requires DSS to revise the standards and goals to reflect changes in CalFresh performance over time and to measure the progress made toward the execution of the standards and goals on an annual basis. 6) Requires DSS to make the standards and goals publicly available for the purpose of informing the Legislature and the public. 7) Requires DSS and key stakeholders to take into consideration what is achievable under current funding and, if applicable, the cost impact of improved program efficiency and the need for additional resource investment when developing the customer service standards and performance goals. 8) Requires DSS, when appropriate, to use the data made available in the data management tool, as defined, to measure the progress made toward achieving the established standards and goals. 9) Requires DSS, in collaboration with key stakeholders, STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageD to develop a data management tool that is dynamic in that it presents data showing change, activity, or progress over time, and the data can be extracted for further analysis. 10) Permits DSS to expand upon existing technology for this purpose, including, but not limited to, expansion of the CalFresh data dashboard, if such expansion is feasible and appropriate. 11) Requires that the data management tool shall include data presented on a statewide and county-by-county basis to be derived by the department from the Medi-Cal Eligibility Data System (MEDS), the Statewide Automated Welfare System (SAWS), or any other appropriate information management systems. 12) Requires the data management tool to include, but not be limited to, all of the following data: a. Multi-program enrollment, which may include, but is not limited to, dual eligibility and dual participation among CalFresh and Medi-Cal recipients. b. CalFresh applications received through multiple channels, including, but not limited to, which may include in-person, online, and by phone telephone. c. CalFresh application and recertification outcomes, which may include, but is not limited to, disposition and processing times. d. CalFresh reapplications, which may include, but is not limited to, rate of return within 30, 60, and 90 days. 13) Requires that information from the data management tool be made publicly available on an ongoing basis and updated at least on a quarterly basis within 60 days following the end of each quarter. 14) Requires DSS, in collaboration with key stakeholders, to identify necessary revisions to the data management tool as necessary to fulfill the established statewide customer service standards and performance goals. STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageE FISCAL IMPACT This bill has not been analyzed by a fiscal committee. BACKGROUND AND DISCUSSION Purpose of the bill The author states that the Legislature, administration and counties have taken important steps to improve CalFresh access and participation. Recent changes have focused on enhancing the client experience and more efficiently meeting the growing need for nutrition assistance. Some CalFresh improvements have resulted in statewide change, while others have been adopted by select counties. However, according to the author, such inconsistencies contribute to a fragmented system in which access to CalFresh and the quality of customer service vary by geographic location. Enrolling and participating in CalFresh should be a straightforward, consistent experience for individuals and families throughout the state, the author states. This bill establishes statewide performance goals and customer service standards to provide a more effective, efficient and consistent experience statewide. It also requires the state to establish a statewide measurement tool in order to evaluate the effects of policy changes and guide improvements in the future. CalFresh The U.S. Department of Agriculture's (USDA) Supplemental Nutritional Assistance Program (SNAP) funds 100 percent of food benefits to eligible individuals living in this country. The program is administered in California as CalFresh, and administrative funding is allocated through a combination of federal, state and county funds. Specific eligibility requirements for SNAP programs across the country are set by the USDA, including gross- and net-income asset tests for most recipients, work requirements and specific documentation requirements. The maximum gross income allowed to be eligible is 130 percent of the federal poverty level, which the federal government STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageF has set in 2014 as $23,850 for a family of four.<1> (The SNAP maximum therefore would be $31,005 for a family of four or a gross family income of $2,583.75 per month). The average monthly benefit for a CalFresh recipient is $153.13 per month, or $5.10 per day. (The maximum monthly CalFresh benefit for a household of four is $632 or $5.27 per person, per day). In California, 58 percent of CalFresh recipients are children. Benefits for all families were decreased in November 2013 due to the expiration of a temporary federal increase in benefits during the Great Recession through the American Reinvestment and Recovery Act. The overall CalFresh caseload had grown steadily since 2001, including an increase of more than 1 million people between 2010 and 2013, at the peak of the Great Recession. Participation rate For years, California has been ranked last in the country in SNAP participation rates, prompting concerns from the USDA, stories in the state's newspapers and many legislative hearings, including two in 2014. In 2011, the most recent data available, just 57 percent of eligible individuals were enrolled in the program, compared to a national average of 79 percent. Additionally, California is tied with Hawaii for the lowest SNAP participation rate in the nation for working poor families who are eligible to receive benefits: Just 44 percent of California's eligible working poor families received CalFresh benefits. The national average was 67 percent. DSS notes that the low CalFresh participation rate significantly impacts California's economy, and particularly in impoverished areas of the state, as every $5 of federal SNAP benefits are calculated to generate $9 of local economic activity. In 2012, the average CalFresh recipient was 38 years old and the average age of a child receiving CalFresh benefits was 7.5 years. One in five households reported earned income and 7.6 percent had been receiving CalFresh benefits for five or more years. Churn ------------------------- <1> http://aspe.hhs.gov/poverty/14poverty.cfm STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageG When an individual or family who is receiving CalFresh benefits is dropped from the program for reasons other than a loss of fiscal eligibility, and then re-applies to the program and is reinstated within 90 days, it is called churn. Typically, this involves a beneficiary who does not return required paperwork completely or on time in order to remain on the program. The process of discontinuing a family from benefits and then re-instating them is time-consuming for both the low-income participant and the counties and costly for the counties. Because of this, recent conversations in California have focused on the state's churn rate, which was 38 percent in the final quarter of 2012, and on individual county rates, which vary somewhat. Efforts to improve participation and retention CalFresh Modernization In conjunction with a number of recent legislative changes, the state launched a 'CalFresh Refresh" initiative to streamline the application and certification processes. Among those changes was a shift from quarterly to semi-annual reporting requirements, moving from required face-to-face interviews to a telephone interview option when appropriate, and requiring counties to screen all applicants for expedited service. Another key change was removal of a fingerprint submission requirement in order to receive benefits. In 2013, DSS asked counties to develop new initiatives to increase participation in the program and to submit plans to the state detailing those efforts. Most counties focused on outreach to seniors and other vulnerable populations; in-reach to households receiving Medi-Cal; and strategies to reduce churning of cases. DSS notes that addressing the low participation rate has been a priority of the department and Governor in recent years. DSS Data Dashboard STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageH In February 2014, DSS released a data dashboard<2> containing information about enrollment growth (persons and households), percent of CalFresh participants who also are receiving Medi-Cal benefits and vice versa, timeliness of approval, churn rates for 30- and 90-day reapplications, and other information. Additionally, the dashboard provides information about active error rates, timeliness for expedited cases and regular processing and demographic data for each county including the number of elderly participants, children under age 18, unemployment rate, and other information. The dashboard provides statewide information and information for each of the 58 counties and is updated quarterly. DSS said that the department will monitor county performance in key areas and provide technical assistance, as needed, to improve in-reach and reduce churn. County innovations In 2012, in response to ongoing concerns about California's poor participation rate, DSS asked each county to provide a three-year plan to increase participation. As for March 2013, 51 counties had submitted plans detailing their unique populations and barriers, as well as strategies to remove those barriers. The majority of plans identified common targets to improve participation, including targeting low-income seniors, identifying individuals who participate in the Medi-Cal program but do not receive CalFresh benefits, focusing on reducing churn and targeting outreach to the working poor. Federal performance standards The USDA requires various SNAP standards be met and reported by states. These include an annual overall performance measure calculated for each state by the federal government by multiplying the state's error rate by the state's total value of national allotments. Additional federal standards include a 30-day application processing timeline, a seven-day expedited service timeline and an overall participation rate. The DSS data dashboard includes these federal performance standards. ------------------------- <2> http://www.cdsscounties.ca.gov/foodstamps/ STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageI Related legislation : SB 1002 (de León) 2014, seeks to reduce churn by aligning the Medi-Cal redetermination process with the CalFresh recertification process. AB 6 (Fuentes) Chapter 501, Statues of 2011, eliminated the fingerprinting requirement for CalFresh eligibility, changed reporting requirements from quarterly to semi-annually and established the state's "Heat and Eat" program, which simplified the verification process for utility costs. AB 1400, Committee on Human Services. (Chapter 227, Statutes of 2011) established the food stamp program's name in California to be CalFresh and made other streamlining changes. AB 537 Arambula, (Chapter 435, Statutes of 2010) permitted farmer's markets to establish a CalFresh EBT authorization system in order to sell fresh produce to beneficiaries. Comments: This bill would require DSS and its stakeholders to establish statewide customer service standards for CalFresh in order to provide more consistency throughout the state. The bill does not define what a customer service standard is, nor does it define how it differs from a performance goal, which also is required. The California Welfare Directors Association, in a letter to this committee, also urges clarity around the definition of performance standards. Should this bill move forward, prior to being heard in the next committee, staff recommends clarifying both the definitions of "customer service standard," and "performance goal," in order for the department and stakeholders to have clear direction as to how to proceed. POSITIONS Support: AFSCME Asian Law Alliance STAFF ANALYSIS OF SENATE BILL 1147 (DeSaulnier) PageJ California Association of Food Banks California Catholic Conference of Bishops California Center for Public health Advocacy California Food Policy Advocates California Hunger Action Coalition Calvary Street/Isaiah 58 Ministries Coalition of California Welfare Rights Organizations Community Food and Justice Coalition County Welfare Directors Association Donaldina Cameron House Donate Don't Dump Feeding America Hunger Action Los Angeles Hunger Advocacy Network Los Angeles Regional Food Bank Project Open Hand San Diego Hunger Coalition SF-Marin Food Bank Sunrise Community Pantry The Vietnamese Elderly Mutual Assistance Association Women Organizing Resources, Knowledge & Services 7 Individuals Oppose: None received. -- END --