BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1584 (Brown) - Public social services: SSI/SSP ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 30, 2016 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1584 would reinstate the cost-of-living adjustment (COLA) in the State Supplementary Program (SSP) for the Aged, Blind and Disabled and index the maximum Supplemental Security Income/State Supplementary Payment (SSI/SSP) benefit to the federal poverty level (FPL) beginning January 1, 2017. Fiscal Impact: Estimated costs to the Department of Social Services (DSS) of $0.6 billion for fiscal year 2016-17 to increase grants to 96% of the FPL. Estimated costs of $1.4 billion for fiscal year 2017-18, to increase grants to 96% of the FPL for July-Dec 2017 and to 100% of the FPL for Jan-June 2018. AB 1584 (Brown) Page 1 of ? Estimated ongoing costs of $1.7 billion per year starting in fiscal year 2018-19 to increase grants to 100% of the FPL. Background: The 2016 Federal Poverty Guidelines set 100% FPL at $990 per month for an individual and $1,335 per month for a couple. In 2013, the US Census Bureau issued a report that indicated that nearly a quarter of California's residents were living in poverty. The California Elder Economic Security Standard Index (Elder Index) measures the minimum income necessary to cover basic expenses for people 65 years of age or older in each of California's counties. According to the Elder Index, on average statewide, a single renter living alone in a one-bedroom apartment needs $1,926 per month to pay for basic expenses, which increases to $2,667 for a couple renting that same apartment. The SSI/SSP program provides monthly cash benefits to qualified low-income seniors and people with disabilities to help them pay for basic living expenses such as food, clothing, and shelter. Qualified SSI recipients are automatically qualified for SSP. SSI is a federal benefit, while the SSP benefit is funded with the state's General Fund. The estimated SSI/SSP caseload for fiscal year 2016-17 is 1.31 million cases, comprising more than 81% individual cases and the remaining cases are couples. The current SSI/SSP maximum grant level is $889.40 per month ($156.40 SSP) for an individual and $1,496 per month ($396.20 SSP) for couples. This places individuals at 90% of the FPL and couples at 112% of the FPL. The federal Social Security Administration provides an annual COLA to the SSI based on the Consumer Price Index. The state's SSP COLA was at its lowest in June 2011 at $156.40 which has not been increased since then, and the SSP COLA was permanently repealed in 2011 through statute. AB 1603 (Assembly Committee on Budget, Chapter 25, Statutes of 2016) includes a one-time 2.76% increase to the SSP beginning January 1, 2017. This will give individuals an increase of $4.32 per month and couples an increase of $10.94 per month. Total SSI/SSP benefits will increase to $893.72 per month for an AB 1584 (Brown) Page 2 of ? individual and $1,506.94 for couples. Proposed Law: This bill would: Require annual COLAs, as measured by the California Necessities Index, to be applied to SSI/SSP payment schedules, as of January 1, 2017. Require, beginning January 1, 2017, maximum SSI/SSP aid payments to an individual that do not equal or exceed 96% of the 2016 federal poverty level (FPL) based on a household of one to be increased to an amount equal to 96% of the 2016 FPL for a household of one Require, beginning January 1, 2018, maximum SSI/SSP aid payments to an individual that do not equal 100% of the 2017 FPL based on a household of one to be increased to an amount equal to 100% of the 2017 FPL for a household of one Require, beginning January 1, 2018, maximum SSI/SSP aid payments to a married couple that do not equal 100% of the 2017 FPL based on a household of two to be increased to an amount equal to 100% of the 2017 FPL for a household of two States that the requirements to index the maximum aid payments to 96% or 100% of the FPL are not intended to reduce any payments that already exceed 96% or 100% of the FPL, as specified. Repeals the code that prohibits a COLA for SSI/SSP from 2011 and forward, unless specified by statute. Related Legislation: AB 1603 (Assembly Committee on Budget, Chapter 25, Statutes of 2016), among other things, includes a one-time 2.76% increase to the SSP beginning January 1, 2017. AB 474 (Brown, 2015) would have, beginning with the 2015-16 fiscal year, required the state maximum SSP grant for individuals to be annually adjusted so that the maximum SSI/SSP payment would equal 112% of the FPL. This bill was held in the AB 1584 (Brown) Page 3 of ? Assembly Budget Committee. Staff Comments: Fiscal estimates are based on the 2016 enacted state budget SSI/SSP caseload of 1,290,782 (and assumes an SSP annual caseload growth of 0.1% thereafter) and utilize the 2016 Federal Poverty Guidelines. The estimates for the 2017 calendar year reflect the difference between the 2.76%, one-time State COLA effective January 1, 2017, and the increase to 96% of FPL. -- END --