BILL ANALYSIS Ó
AB 492
Page 1
Date of Hearing: January 21, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
492 (Gonzalez) - As Amended March 26, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill provides a $50 per month voucher for diaper products
for each child under three years of age in CalWORKs who is
enrolled in child care as a supportive service for a parent
AB 492
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participating in welfare-to-work.
FISCAL EFFECT:
1)This bill would impact approximately 26,000 CalWORKs children
per month according to Department of Social Services (DSS)
estimates. A $50 monthly voucher would cost approximately $7.8
million in 2016-17 and $15.6 million annually on-going.
(TANF/GF).
2)Potential one-time costs (GF) of an unknown amount to DSS to
update existing automation systems. Costs will depend on the
type of system ultimately used to administer the system.
3)Potential state-reimbursable costs (GF) to counties for
implementation and on-going administration of the voucher
system. Staff notes that processes for providing state and
federal benefits have shifted away from vouchers to electronic
means. CalFresh food benefits, formerly provided through food
stamps, which were paper vouchers, are now provided through
EBT cards. In addition, California is in the process of
implementing providing Special Supplemental Food Program for
Women, Infants and Children (WIC) benefits on EBT cards.
4)Partial offsetting savings to the extent an increased use of
childcare better enables parents to work and thus come off of
assistance earlier, and that healthier babies decreases
healthcare costs to Medi-cal.
COMMENTS:
1)Purpose. According to the author, "Despite being critical to
the health and hygiene of young children, diapers are excluded
from state and federal assistance for low income families.
There is no mechanism for relief from the high cost of diapers
in California, even for those families we already support
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through programs such as CalWORKs. An inadequate supply of
diapers can jeopardize a parent's employment by limiting their
access to child care. Additionally, diaper need can cause
avoidable and costly health consequences for the child and
become an equally unhealthy stressor on parents. The goals of
this legislation are to remove a potential barrier between
parents and child care, and to alleviate the financial and
health risks associated with diaper need." The author also
notes that child care utilization, which helps to facilitate
more consistent employment for parents on CalWORKs, can help
increase the success of the program and potentially result in
savings in other safety-net programs.
2)Background. The CalWORKs program provides monthly income
assistance and employment-related services aimed at moving
children out of poverty and helping families meet basic needs.
Federal funding for CalWORKs comes from the Temporary
Assistance for Needy Families (TANF) block grant. The average
monthly cash grant for a family of three on CalWORKs (one
parent and two children) is $497 to meet basic needs,
including rent, clothing, utility bills, food, and anything
else a family needs. This grant amount puts the average
annual household income at $5,964 per year, or 30% of the
federal poverty level. Federal Poverty Guidelines for 2015
show that 100% of poverty for a family of three is $20,090 per
year.
According to recent data from the California Department of
Social Services, around 497,000 families rely on CalWORKs,
including over one million children. Nearly 60% of cases
include children under 6 years old.
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3)Child Care. Title 22 within the California Code of Regulations
provides standards to which licensed child care centers must
adhere, including that a center shall ensure each infant has
sufficient changes of clothing and diapers, and that each
infant's clothing and diapers are to be changed as often as
necessary to ensure that each infant is kept clean and dry at
all times. Child care is provided within the CalWORKs program
to facilitate a parent's participation in employment or
another required welfare-to-work activity. Most child care
providers require parents supply the diapers. The inability to
provide diapers can result in the loss of access to child care
which impedes a parent's ability to go to work or participate
in a welfare-to-work activity, and may result in a sanction
for non-compliance with the program requirements.
4)Cost of Diapers. According to the National Diaper Bank
Network, disposable diapers cost an average of $100 per month
with no government assistance, not including the cost of wipes
and other necessary items. The average child goes through
10-14 diapers daily for 2.5 to 3 years, with more being used
daily the first four months. Pricing for disposable diapers
ranges from 17 cents to 42 cents each, depending upon size,
style, brand and place of purchase. Poor parents are less
likely to be able to buy in bulk so end up paying more on
average. Cloth diapers are not an option for many poor
families who don't have easy access to washers and dryers.
Many Laundromats don't allow diapers to be washed in their
machines, and, even when they do, the cost of frequent washes
can be prohibitive for CalWORKs families.
5)Prior Legislation. AB 1516 (Gonzalez), 2014, would have
provided CalWORKs recipients an $80 per month young child
special needs assessment, for the purpose of purchasing
diapers, for every child under 2 years of age in the
assistance unit. It was held on the Senate Appropriations
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Committee Suspense File.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081