BILL ANALYSIS Ó
SENATE COMMITTEE ON HUMAN SERVICES
Senator McGuire, Chair
2015 - 2016 Regular
Bill No: AB 2565
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|Author: |Salas |
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|Version: |June 21, 2016 |Hearing |June 28, 2016 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mareva Brown |
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Subject: Independent Living Centers: state funding
SUMMARY
This bill deletes provisions in current law that make an
Independent Living Center (ILC) eligible for state funding only
under certain circumstances, thereby permitting three of the
state's 28 ILCs to receive the same $235,000 in state base
funding annually that the others receive.
ABSTRACT
Existing law:
1) Declares that individuals with disabilities comprise a
large percentage of California's total population and that
action is necessary to assist these individuals in their
attempts to live fuller and freer lives outside of
institutions. Further declares that in order to achieve
this, it is necessary to provide state funding to maintain
the services provided by existing ILCs and, where feasible,
encourage the establishment of new centers which provide
services to individuals with disabilities, and to establish
the Department of Rehabilitation (DOR) has responsibility
and authority to encourage planning, developing and funding
of ILCs. (WIC 19800)
2) Defines an ILC to be a private, nonprofit organization
with a board of directors controlled by a majority of
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individuals with disabilities and staffed by persons
trained to assist persons with disabilities in achieving
social and economic independence. Further defines the
duties and philosophy of an ILC. (WIC 19801)
3) Requires that each ILC, except those centers which have
been both established and maintained using federal funding
under the federal Rehabilitation Act of 1973 as their
primary base grant, shall receive at least $235,000 in base
grant funds allocated by DOR, as specified. Requires that
DOR allocate to those centers with Title VII(c) base grant
funds of less than $235,000 an amount that, when combined
with the federal Title VII(c) grant, equals $235,000 (WIC
19806)
4) Permits state funds used to fund the base grant to be
replaced by reimbursements under the Supplemental Security
Disability Insurance (SSDI) and the Supplemental Security
Income (SSI) programs, as defined, to the extent
appropriated by the Legislature and allocated by the
department to ILCs, as specified. (WIC 19806 (c))
5) Establishes funding formulas for dispersing incentive
funds to ILCs, including the requirement that one grant
formula is based on the amount of private funding an ILC
has received, as specified. (WIC 19806 (d))
6) Prohibits any funding for the base grant be based on
receipt of private funding to an ILC. (WIC 19806 (a))
This bill:
1) Makes a variety of uncodified Legislative findings and
declarations including that independent living is a vested
civil right under federal and state law, that it is a
viable alternative to significantly more costly
institutionalization in nursing homes and other settings,
and that there currently is a large difference in the
amount of funding that each of the California ILCs
receives.
2) Strikes language excluding ILCs which have been
established and maintained using federal funding under
title VII(c) of the federal Rehabilitation Act as their
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primary base grant from receiving base funding of $235,000
from the DOR.
3) Strikes related language requiring DOR to fund those
ILCs with the difference of the funding from the federal
VII(c) allocation and $235,000.
4) Strikes language that permits base funding for the ILCs
allocated from the state general fund to be replaced by
reimbursements from the federal Supplemental Security
Disability Insurance and the Supplemental Security Income
programs and replaces it with language that requires base
funding amounts be allocated to the ILCs from those federal
funds.
FISCAL IMPACT
According to an analysis prepared by the Assembly Appropriations
Committee, this bill will result in ongoing costs of $705,000
(Federal funds/GF) annually to provide three ILCs with $235,000
in base grant funding.
Appropriations staff also noted that in addition to an annual
base state funding level of $235,000 (with the exception of the
three ILCs), all 28 ILCs receive federal funding directly from
the Administration for Community Living in the form of Title
VII(c) grants. The total amount of federal funding California
ILCs receive is approximately $7.7 million annually. However,
there is a difference in the amount of federal funding that each
ILC receives. The 28 ILCs share a total of $20.2 million dollars
through state and federal funding annually, which is about $900
per individual receiving direct services
BACKGROUND AND DISCUSSION
Purpose of the bill:
According to the author, three of the state's 28 ILCs are
excluded from state base funding from the DOR. These ILCs serve
a total of 10 counties and thousands of individuals and the
author states at least two of the three centers suffer from
insufficient staff to provide adequate services.
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The author states that these three ILCs were founded after the
enacting state statute and were excluded from the annual base
allocation of $235,000. While the three received additional
federal funding allocations from a different funding stream at
the time they were established, the author said inequities
persist and these three centers are at particular risk of
federal funding loss because they do not have state base
funding.
"Resolving this funding inequity requires a modest annual
appropriation of $235,000 for each of the three ILCs," the
author states. "This would bring these centers up to the minimum
base funding level." The three ILCs that don't receive state
base funding are Independent Living Center of Kern County;
Disability Resource Agency for Independent Living in Modesto,
Stockton and Sonora; and Placer Independent Resource Services,
serving Placer, El Dorado and Alpine counties.
The author further states that because the base funding is
typically allocated from federal Social Security Income
incentive payments that the state receives for successful job
placements of individuals with disabilities, the state will not
be paying for the additional base funding from General Fund.
Independent Living Centers (ILCs)
An ILC is a consumer-controlled, community-based, cross
disability, nonresidential private nonprofit agency that is
designed and operated within a local community by individuals
with disabilities, according to DOR. In California, 28 ILCs each
serve at least 22,000 individuals statewide per year with total
statewide funding of $20 million.
Each center offers five core services that are mandated by the
Rehabilitation Act of 1973, including cross-disability peer
support, independent living skill development, advocacy and
systems advocacy, information and referrals, assistive
technology services and transition services. California added
two core services: Personal assistance services and housing.
In order to be certified to become an ILC and to receive state
and federal funding, DOR must affirm that 51 percent of the ILCs
board is comprised of people with significant disabilities, the
majority of decision makers in the organization are persons with
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disabilities and that specific core services are provided. The
California Foundation for Independent Living Centers (CFILC),
which represents 23 of the state's 28 nonprofit ILCs, notes that
there is "an enormous difference in the amount of funding"
across all ILCs.
Placer Independent Resource Services
The Auburn-based Placer Independent Resource Services serves
individuals in Alpine, El Dorado, and Placer Counties. According
to the agency's website, the ILC advocates for the rights of
people with disabilities, educates the community about
disability issues, empowers and provides services to persons
with disabilities to live independent, productive lives. Any
person with a disability is eligible for free services.
According to documents provided by the CFILC, Placer received
total funding of $455,790 in 2013/2014 and $314,504 in Title
VII(c) funding.
Independent Living Center of Kern County
The Independent Living Center of Kern County was established
more than 30 years ago. The center recently added two programs -
an American Sign Language interpretation service, and a
technology assistance program for older individuals who are
blind. The ILC of Kern County said more than 30 percent of Kern
County's population lives with a disability. The organization's
website notes that more than 90 percent of the ILC's staff is
people with disabilities. According to documents provided by the
CFILC, ILC of Kern County's total grant allocation in 2013/ 2014
was $494,065, the third lowest of the 28 centers, just ahead of
Placer. Kern's ILC received $323,482 in Title VII(c) funding.
Disability Resource Agency for Independent Living (DRAIL)
DRAIL has been serving people with disabilities in Stanislaus
County for 25 years, assisting more than 6,000 consumers to
establish goals and objectives to achieve reach independence.
DRAIL has provided more than 40,000 information and referral
resources to consumers and the community in general. During the
first two years of DRAIL, it was necessary to outreach to the
community and to let the community know that services were
available to people with all types of disabilities of all ages.
According to the agency's website, since 2001 DRAIL has
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transitioned 96 consumers from nursing homes into their own home
saving the government $436,464 over twelve years.
The author notes that DRAIL has been forced to start a waiting
list because it is cannot meet demand for services. According to
documents provided by the CFILC, DRAIL received $734,000 in
total funding in 2013/2014, and $516,369 in Title VII(c)
funding.
Department of Rehabilitation
The ILCs are overseen and funded by the state DOR, which serves
approximately 110,000 people annually with a total budget of
approximately $435 million. About $350 million comes from
federal sources, according to the agency's 2015 annual report.
DOR's primary focus is its vocational rehabilitation (VR)
program, which provides job-seeking consumers with disabilities
with support to prepare for, find and retain employment. VR
services may include career assessment and counseling, help with
job search, preparation with interview skills, independent
living skills, training, career education and assistive
technology. The VR program is not an entitlement; if demand
exceeds the available VR slots, the state may institute an
"Order of Selection," per federal statute.
Funding streams
ILCs receive funding in several ways. Those centers with a base
allocation from the state may receive $235,000 from the general
fund, although typically the base funding in paid for through
reimbursements from the federal Social Security Administration,
which pays incentive funds to states for finding and maintaining
a consumer in a job for nine months. State statute permits the
federal reimbursement money to be used in lieu of general fund.
Federal regulations say the reimbursement funds must be used for
vocational rehabilitation but it is discretionary for the states
to allocate.
According to data provided by the CFILC, total funding for ILCs
in 2013/2014 ranged from $407,000 in Eureka's Tri-County
Independent Living Inc., center to $1.2 million at the Dayle
McIntosh Center for the Disabled in Anaheim.
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Federal Title VII(c) dollars flow directly to ILCs from the
federal government based on specific contracted agreements for
services. ILCs that have taken on additional responsibilities
typically have more Title VII(c) funding. Each ILC receives a
standard $70,000 grant for assistive technology. Seymour
Incentive Grants are used to federally match fundraising dollars
that each ILC raises. Funding through the Title VII(c)
allocation is based on contracted service delivery obligations
and ranges broadly from a low of $63,117 for Marin County to
$526,672 allocated to Berkeley's Center for Independent Living.
According to DOR, in fiscal year 2014-2015, the three centers
without state base funding collectively provided services to
1,322 individuals from 10 counties. DOR notes that these three
centers were established with large Title 7-C grants instead of
the state base funding which was provided to the other ILCs.
Today, DOR notes all ILCs receive Title VII-C grants of varying
amounts. Because the federal government may award the VII-C
funds based upon a variety of reasons, including on need and the
compelling justification of an ILC, some ILCs receive more
federal funding than others, including some of the 3 ILCs that
are not eligible for the base funding under current law.
COMMENTS
Funding for the additional $705,000 in base allocations is
already established in the 2016-2017 state budget (SB 826, Leno,
2016, item 5160-101-0001). The budget, however, provides for
this funding from state general fund. The language of this bill
alters the ongoing allocation of the base grant to require its
allocation from the federal reimbursement funding. Should this
bill move from this committee, the author may want to revisit
whether to include the possibility of General Fund allocations
if reimbursement funds are unavailable in future years.
PRIOR VOTES
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|Assembly Floor: |80 - |
| |0 |
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|Assembly Appropriations Committee: |20 - |
| |0 |
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|Assembly Human Services Committee: |7 - |
| |0 |
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POSITIONS
Support:
California State Independent Living Council
Cornelius Financial Group
Court Appointed Special Advocates of Kern County
Disability Rights California
Friends Outside
Golden Empire Transit District
Goodwill Industries of South Central California
Housing Authority of the County of Kern
Kern Travel
Knight's Pumping and Portable Services, Inc.
La Perla Market
New Advances for People with Disabilities
Office of the Mayor of the City of Bakersfield/ The
Bakersfield City Council
PETRO-LUD
Rent 1 One
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The Bakersfield ARC
The California Association of Public Authorities
The California Foundation for Independent Living Centers
The City of Modesto
The Disability Resource Agency for Independent Living
The Housing Authority of the County of Kern
The Kern County Board of Supervisors
The Kern County Office of the National Multiple Sclerosis
Society
The Mental Health Collaborative of Kern County
The Voiced Coalition
Oppose:
None.
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