BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 492 (Gonzalez) - CalWORKs:  welfare-to-work:  supportive  
          services
          
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          |Version: June 20, 2016          |Policy Vote: HUMAN S. 4 - 0     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
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          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  







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            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  








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          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  








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            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.




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