BILL ANALYSIS Ó AB 474 Page 1 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. AB 474 Page 2 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 AB 474 Page 3 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 | |--------------------+-------------+----------------| AB 474 Page 4 |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 AB 474 Page 5 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 AB 474 Page 6 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) AB 474 Page 7 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 AB 474 Page 8 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 AB 474 Page 9 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 AB 474 Page 10 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 AB 474 Page 11 Women Organizing Resources, Knowledge and Services (WORKS) Opposition None on File Analysis Prepared by:Nicole Vazquez / BUDGET / 916-319-2099