BILL ANALYSIS Ó
AB 1584
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1584 (Brown) - As Amended April 6, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill reinstates the cost-of-living adjustment for
the State Supplementary Program (SSP) for the Aged, Blind and
Disabled and indexes the maximum Supplemental Security
Income/State Supplementary Payment (SSI/SSP) benefit to the
federal poverty level (FPL). Specifically, this bill:
1)Requires, as of January 1, 2017, annual cost-of-living
adjustments (COLAs), as measured by the California Necessities
Index (CNI), to be applied to SSI/SSP payment schedules.
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2)Requires maximum SSI/SSP aid payments that fall below 96% of
the 2016 FPL to be increased to an amount equal to 96% of the
FPL based on family size. Further requires, beginning January
1, 2018, maximum aid payments that fall below 100% of the 2017
FPL based on family size, to be increased to an amount equal
to 100% of the 2017 FPL based on family
size.
3)States that the requirements to index the maximum aid payments
to the FPL are not intended to reduce any payments that
already exceed 96% or 100% of the FPL, as applicable.
FISCAL EFFECT:
1)Projected costs of $292 million (GF) for six months in FY
2016-17, $749 million (GF) full year cost in FY 2017-18 and
$918 million (GF) beginning in FY 2018-19, and on-going, to
fund the grant increases. These figures include the
cost-of-living adjustments, FPL adjustments and the Cash
Assistance Program for Immigrants (CAPI) impacts as follows:
a) Cost-of-living adjustments to the SSP (2.96% CNI) and
the SSI (1.39% CPI - federally funded) which, combined,
would increase the maximum grant by $24.55 per month for
individuals and by $41.30 per month for couples. This
brings the total monthly grant amounts to $913.95 for
individuals (92% of the FPL of $990) and $1,527.50 for
couples (115% of the FPL of $1,335).
b) Required adjustments to reach 96% of the federal poverty
level by 2017 and 100% of the federal poverty level by 2018
would increase the SSP grant amount by $43.37 per month
beginning January 2017 and an additional $23.60 per month
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beginning in 2018. Because the maximum monthly grant for
couples exceeds 100% of the FPL, this adjustment only
applies to individuals, approximately one million
recipients.
c) 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 levels are statutorily tied to the
SSI/SSP grant levels so the grant increases for individuals
would have an equivalent effect for the CAPI grants.
Approximately 12,400 and 13,200 recipients will receive the
increased grant amounts in 2017 and 2018 respectively.
1)Existing law continuously appropriates funds for the
implementation of SSP. By reinstating the cost-of-living
adjustment and by increasing the amount of benefits paid under
the SSP, this bill would make an appropriation.
COMMENTS:
1)Purpose. According to the author, "Aged, blind and disabled
Californians need our help. Eye-watering recession-era cuts
to the SSI/SSP program plunged over one million Californians
into poverty, and their only way 'out' is through the actions
of the Governor and the Legislature. There is no 'Do-Over'
for SSI/SSP recipients whom due to age, blindness or
disability are unable to enter the work-force, or re-train to
acquire new skills. They are at the mercy of state policy.
This bill advances a first-step toward total restoration of
recession era cuts. By increasing the state portion of the
SSI/SSP grant, California's eligible aged, blind and disabled
adults will have financial resources to manage California's
unusually high costs of living, while stimulating needed
economic activity in communities hit hardest by the
recession."
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2)Background. The SSI/SSP program provides a monthly cash
benefit to enable needy aged, blind, and disabled individuals
and couples 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.
To be eligible for SSI/SSP, an individual 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.
3)Current Case Load and Grant Levels. Caseload is estimated to
be 1.53 million individual recipients in 2015-16, a 0.6
percent increase over the 2014-15 caseload. This includes
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.
The Governor's Budget includes the federal cost-of-living
adjustment (COLA) for SSI/SSP recipients, 1.39% for 2016.
This keeps 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 with a unique maximum grant level. Effective January 1,
2016, maximum grant levels are $889 per month for an
individual and $1,496 per month for couples.
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4)Governor's Budget. The Governor's 2016-17 Budget proposed in
January includes $41 million for a cost-of-living increase to
the SSP for six months in FY 2016-2017, that is equal to the
CNI, estimated to be 2.96%. This will have the effect of
increasing SSI/SSP monthly grant amounts by $17 for
individuals and $31 for couples.
5)Clarifying Amendments. Recent amendments indicate that the
FPL adjustments be "based on family size." This terminology
is not defined for this program and should be clarified to
indicate that the adjustments apply to grants for individuals
or couples.
6)Prior Legislation. AB 474 (Brown), 2015, would have, beginning
with the 2015-16 fiscal year, required the state maximum SSP
grant to be annually adjusted such that the maximum SSI/SSP
combined payment would have equaled 112% of the federal
poverty level. It was held in the Assembly Budget Committee.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
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