BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 1584 (Brown) - Public social services:  SSI/SSP
          
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          |Version: June 30, 2016          |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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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 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.









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           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  








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          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  








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          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. 


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