BILL ANALYSIS Ó
AB 474
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Date of Hearing: May 7, 2015
ASSEMBLY COMMITTEE ON BUDGET
Shirley Weber, Chair
AB 474
(Brown and Thurmond) - As Amended April 7, 2015
SUBJECT: Public social services: SSI/SSP.
SUMMARY: Specifically, this bill:
1)For the 2015-16 fiscal year, and annually thereafter, would
require the state maximum State Supplementary Payment (SSP)
grant for individuals to be readjusted and increased so that
the state SSP payment and the federal Supplemental Security
Income (SSI) payment, when combined, equal 112 percent of the
federal poverty level (FPL).
EXISTING LAW: Existing state law creates the Supplemental
Security Income/State Supplementary Payment (SSI/SSP) program,
which provides a monthly cash benefit to enable needy aged,
blind, and disabled people to meet their basic living expenses
for food, clothing, and shelter. The state's General Fund
provides the SSP portion of the grant while federal funds pay
for the SSI portion of the grant. The 2015-16 Governor's Budget
includes $10.1 billion ($7.3 billion federal funds, $2.8 billion
General Fund) for the SSI/SSP program.
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FISCAL EFFECT: To increase grants for individuals to 112
percent of the FPL, the state would provide $198 to the maximum
grant per month (from a total grant of $900 to $1,098). The
marginal grant increase multiplied by 12 months multiplied by
1.073 million individual recipients totals an annual and ongoing
cost of approximately $2.5 billion. (Please note that this
estimate scenario increases the grant after an already-budgeted
federal cost-of-living adjustment (COLA) takes effect on January
1, 2016, discussed below). This change would increase the
individual grant on an annual basis from $10,800 to
approximately $13,176.
COMMENTS: SSI/SSP Caseload. To be eligible for SSI/SSP, a
person must be at least 65 years old, blind, or disabled
(including blind or disabled children). A qualified recipient
must file an application with the Social Security Administration
(SSA). Federal criteria are used to determine eligibility. A
qualified SSI recipient is automatically qualified for SSP. To
be eligible for SSI and maintain eligibility, a person must meet
certain income and resource requirements.
Caseload is estimated to be 1.53 million individual recipients
in 2015-16, a 0.6 percent increase over the 2014-15 caseload.
This breaks out into 1.073 million individuals in the program
and 230,000 couple cases (two persons in each couple). The
caseload consists of 27 percent aged, 2 percent blind, and 71
percent disabled persons.
Current Grant Levels. The Governor's Budget passes through the
federal cost-of-living adjustment (COLA) for SSI/SSP recipients,
1.7 percent for 2015 and a projected 1.5 percent for 2016.
These changes keep the SSI/SSP grant levels at their minimum as
allowed under federal law for both couples and individuals in
order for the state to maintain eligibility for Medicaid
funding. The grant level that individuals and couples receive
varies based on existing income and falling into a specific
eligibility category. There are 25 eligibility categories, each
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with a unique maximum grant level. For purposes of analysis,
the administration uses the "maximum" possible grant when we
discuss the state of the grants and scenarios for changing the
grant. Effective January 1, 2016, maximum grant levels are $900
per month for an individual and $1,512 per month for couples.
Today and until December 31, 2015, they are $889 per month for
an individual and $1,496 per month for couples.
The chart below from the Legislative Analyst's Office (LAO) in
March 2015 displays the maximum monthly SSI/SSP grant for
individuals and couples in 2000-01, as compared to proposed
grant levels for 2015-16 (after January 1, 2016).
SSI/SSP Maximum Monthly Grants Then and Now
---------------------------------------------------
| |2000-01 |2015-16 |
| | |Proposed |
|--------------------+-------------+----------------|
|Maximum | | |
|Grant-Individuals | | |
|--------------------+-------------+----------------|
|SSI |$531 |$744 |
|--------------------+-------------+----------------|
|SSP |181 |156 |
|--------------------+-------------+----------------|
|Totals |$712 |$900 |
|--------------------+-------------+----------------|
|Percent of FPL |102.3% |91.8% |
|--------------------+-------------+----------------|
|Maximum | | |
|Grant-Couples | | |
|--------------------+-------------+----------------|
|SSI |$796 |$1,116 |
|--------------------+-------------+----------------|
|SSP |469 |396 |
|--------------------+-------------+----------------|
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|Totals |$1,265 |$1,512 |
|--------------------+-------------+----------------|
|Percent of FPL |134.9% |113.9% |
---------------------------------------------------
---------------------------------------------------
|FPL = federal poverty |
|level. |
---------------------------------------------------
2015 Federal Poverty Level. The chart below displays the 2015
FPL at its 100 percent and 112 percent levels (as proposed to be
a minimum level for individual grants in this bill). The FPL is
determined by the federal government and the different household
levels are displayed for every year at the U.S. Department of
Health and Human Services website.
------------------------------------------------------------------
|Number of people in | 100% FPL | 112% |
|a household | | |
|--------------------+----------------------+----------------------|
|One person | $11,770 per year | $13,182 per year |
|(Individual) | | |
|--------------------+----------------------+----------------------|
|Two people | $15,930 per year |$17,841 per |
| | |year |
| | | |
| | | |
| | | |
------------------------------------------------------------------
Other Impacts. If the proposal were adopted, the 230,000 couple
cases in the program (equating to 460,000 individuals) would not
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experience an increase in their monthly grants, both due to the
fact that the bill only applies to "individuals" cases and that
couples currently receive a combined grant that exceeds 112
percent FPL (as shown in the LAO table above, they are at 113.9
percent FPL in 2015-16).
The Cash Assistance Program for Immigrants (CAPI) provides
benefits to aged, blind, and disabled legal immigrants. The
CAPI benefits are equivalent to SSI/SSP program benefits, less
$10 per individual and $20 per couple. The grant increases for
individuals would presumably have an effect for the CAPI grants
as well, as these grant levels are statutorily tied. This would
increase the cost of the proposal further.
SSI/SSP Advocacy. The Committee has received numerous letters
regarding proposed increases in the SSI/SSP grants, though none
have been particular to this proposal. Letters in support of
SSI/SSP grant increases have been submitted by the Health and
Human Services Network, California Advocates for Nursing Home
Reform, California Council of the Blind, and Disability Rights
California, among other organizations and numerous individuals.
REGISTERED SUPPORT / OPPOSITION:
Support
2-1-1 Humboldt
Access to Independence
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Alameda County Community Food Bank
Alameda County Meals on Wheels
AllCare Alliance
Antelope Valley Seniors Network
Bay Area Community Services
California Alliance for Retired Americans
California Association of Area Agencies on Aging
California Association of Public Authorities (CAPA)
California Catholic Conference, Inc.
California Commission on Aging (CCoA)
California Council for the Blind
California Food Policy Advocates (CFPA)
California Foundation for Independent Living Centers (CFILC)
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California Hunger Action Coalition
California In-Home Supportive Services Consumer Alliance
California Senior Leaders Alliance (CSLA)
California Senior Legislature
Californians for SSI (CA4SSI)
Californians for Disability Rights, Inc.
Coalition of California Welfare Rights Organizations, Inc.
Community Resources for Independent Living
Courage Campaign
Didi Hirsch Mental Health Services
Disability Rights California
Educate. Advocate.
Feeding America San Diego
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Food for People, Inc.
Gray Panthers of San Francisco
Hunger Action Los Angeles
Hunger Advocacy Network
Imperial County Board of Supervisors
Imperial Valley Food Bank
Insight Center for Community Economic Development
Jewish Family Service of Los Angeles (JFS)
Jewish Family Service of San Diego
Jewish Labor Committee Western Region
Justice in Aging
Los Angeles Community Action Network
Meals on Wheels Alameda County
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Meals on Wheels Greater San Diego
Mercy Brown Bag Program
Mission for the Homeless, Inc.
Older Women's League (OWL) Sacramento
Orange County Food Access Coalition
Redwood Empire Food Bank
Resources for Independent Living (RIL)
Sacramento Homeless Organizing Committee
San Diego Hunger Coalition
San Diego Organizing Project (SDOP)
Senior and Disability Action
Senior Services Coalition of Alameda County
SF Marin Food Bank
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Southern California Resource Services for Independent Living
St. Anthony Foundation
St. Francis Living Room
St. Francis Marin Food Bank
St. Mary's Center
Tenderloin Housing Clinic
Thai Community Development Center
The Resource Connection Food Bank
California Council of the blind (CCB)
Urban & Environmental Policy Institute at Occidental College
Venice Community Housing Corporation
Volunteers of East Los Angeles (VELA)
Western Center on Law & Poverty
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Women Organizing Resources, Knowledge and Services (WORKS)
Opposition
None on File
Analysis Prepared by:Nicole Vazquez / BUDGET / 916-319-2099