BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 492 (Gonzalez) - CalWORKs: welfare-to-work: supportive services ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 20, 2016 |Policy Vote: HUMAN S. 4 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 492 would provide a $50 per month diaper benefit for every child 2 years of age or younger in California Work Opportunity and Responsibility to Kids (CalWORKS) who is enrolled in child care as a supportive service for a parent participating in welfare-to-work. This bill requires that the diaper benefit be issued to participants through the electronic benefits transfer (EBT) system, and directs the California Department of Social Services (DSS) to make the benefit available at the earliest time possible. This bill also specifies that the diaper benefit is not income for purposes of determining CalWORKS eligibility or benefits. Fiscal Impact: According to DSS estimates, this bill would impact approximately 26,000 CalWORKS children under age 3 per month. A $50 monthly voucher would cost approximately $7.8 million in AB 492 (Gonzalez) Page 1 of ? FY 2016-17 and $15.6 million annually ongoing. (TANF/GF) Minor one-time state costs for updating the existing EBT system to deliver the diaper benefit. Additional, potentially reimbursable, county costs for administering the diaper benefit. 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 (one parent and two children) on CalWORKS is $497 to meet basic needs such as rent, clothing, utility bills, food, and other items. This grant amount puts the average annual household income of a family on CalWORKS at $5,964 per year, which is 30% of the federal poverty level (Federal Poverty Guidelines for 2015 report that 100% of poverty for a family of three is $20,090 per year). According to DSS, nearly 497,000 families will rely on CalWORKS in FY 2016-17, including over one million children. Nearly 60% of cases include children 6 years old or younger and about 12% of cases include children younger than one year old. According to the National Diaper Bank Network, infants require up to 12 diapers per day and toddlers require about 8 diapers per day. This costs about $70 to $80 per month per baby. The Network also reports that 1 in 3 American families report experiencing diaper need. Currently, diapers are among a number of items excluded for purchase under state and federal assistance programs such as CalFresh, the Women Infant and Children (WIC) program and Medi-Cal. The Diaper Bank reports that the majority of licensed day care centers require parents and caregivers to provide a steady supply of disposable diapers, and low-income parents cannot take advantage of free or subsidized childcare if they cannot afford to leave disposable diapers at childcare centers. The EBT system is an electronic system in California used for the delivery of public assistance benefits through a card that AB 492 (Gonzalez) Page 2 of ? can be used to access funds at point-of-sale terminals, ATMs, and other electronic fund transfer devices. While California's EBT system was designed to deliver CalFresh benefits, all 58 California counties also deliver either CalWORKS or General Assistance benefits through EBT cards, and the Department of Public Health is in the process of implementing EBT cards for the federal WIC program. Proposed Law: This bill would add a diaper benefit of $50 per month for every child 2 years of age or younger enrolled in child care as a supportive service for a parent participating in welfare-to-work with the following requirements, (1) the diaper benefit may be used only to purchase diapers, (2) the diaper benefit shall be issued through the EBT system, (3) the diaper benefit shall not be considered income for purposes of determining CalWORKS eligibility or benefits, (4) DSS makes the diaper benefit available as soon as possible. Related Legislation: AB 1516 (Gonzalez, 2014) would have provided CalWORKS recipients a monthly $80 young child special needs assessment, for the purpose of purchasing diapers, for children under age 3 in the assistance unit. This bill was held in the Senate Appropriations Committee. Staff Comments: The proposal for the "Provision of Diaper Assistance to Low-Income Families" which provided $16 million General Fund to provide a $50 per month per child voucher for diaper purchases for CalWORKs Welfare-to-Work participants with infant and toddler children was not appropriated in the Budget Act of 2016. Approaches for consideration to be adopted, will include, but are not limited to Options for delivering the benefit by way of a paper voucher system or other distribution approach for the larger CalWORKs population. Ways to provide this as a supportive service to the CalWORKs Welfare to Work caseload, potentially using a voucher or AB 492 (Gonzalez) Page 3 of ? ancillary expense benefit approach. The feasibility of providing this as an automated benefit long-term, to include a range of potential options based upon functionality for the commodity-based delivery of a CalWORKs benefit. DSS, the Office of Systems Integration and the Department of Public Health shall provide the Legislature with a summary of the various approaches and automation options, and, to the extent available, their initial estimated costs by February 1, 2017. -- END --