BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2565 (Salas) - Independent Living Centers: state funding ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 1, 2016 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 8, 2016 |Consultant: Debra Cooper | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2565 would permit all independent living centers (ILCs), including three that were previously excluded, to receive $235,000 in base grant funding annually. Fiscal Impact: Ongoing costs to the Department of Rehabilitation (DOR) of $705,000 per year to provide three ILCs with $235,000 in base grant funding. (Federal/GF) Background: An ILC is a consumercontrolled, communitybased, crossdisability, nonresidential private nonprofit agency that is designed and operated within a local community by individuals with disabilities and provides an array of independent living services. There are 28 ILCs in California that serve at least 22,000 individuals per year. The centers are overseen and funded by DOR with total statewide funding of $20 million. AB 2565 (Salas) Page 1 of ? The ILCs have several different funding sources. Title VII of the Rehabilitation Act established a framework for the creation and funding of ILCs across the nation. Federal Title VII(c) moneys flow directly to ILCs based on specific contracted agreements. Each ILC receives a standard $70,000 grant for assistive technology, and some ILCs that have taken on additional responsibilities typically receive more Title VII(c) funding. Existing state law provides that each ILC is required to receive at least $235,000 in base grant funding allocated by DOR, except those centers that have been established and maintained using Title VII(c) funding. Three ILCs in California (the Disability Resources Agency for Independent Living, the Independent Living Center of Kern County, and the Placer Independent Resources Services, Inc) were established with larger Title VII(c) grants instead of the state base funding which was provided to other ILCs. All California ILCs receive Title VII(c) grants of varying amounts ranging from $68,088 for Tri-County Independent Living, Inc. to $531,840 for Disability Resources Agency for Independent Living. Though the three ILCs that are exempted from the state base grant receive larger federal grants than many of the other ILCs, because they are solely funded with federal funds, they receive among the least total funding of the 28 ILCs. Proposed Law: This bill would: Strike language excluding ILCs which have been established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act as their primary base grant from receiving base funding of $235,000 and requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000. Strike language that authorizes base funding for the ILCs allocated from the state general fund to be replaced by reimbursements from the federal Supplemental Security AB 2565 (Salas) Page 2 of ? Disability Insurance and the Supplemental Security Income programs and replaces it with language that requires base funding amounts to be allocated to the ILCs from those federal funds. Related Legislation: SB 826 (Leno, Chapter 23, Statutes of 2016), the State Budget Act of 2016-17, among other things, allocates $705,000 in base allocations from the state general fund. Staff Comments: Funding for the additional $705,000 in base allocations was already addressed in the 2016-17 state budget. While the state budget provides for this funding from the general fund, this bill requires the allocation to come from federal reimbursement funding. Federal Social Security Reimbursements, which regularly fluctuate, are already reserved for other DOR programs; therefore, redirection of federal Social Security Reimbursements from other programs would result in a reduction of vocational rehabilitation services provided through DOR. -- END --