BILL ANALYSIS                                                                                                                                                                                                    



SENATE RULES COMMITTEE                           SB 2055  
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 445-6614         Fax: (916) 327-4478
                                                              
                                                          .

                     UNFINISHED BUSINESS
                                                              
                                                          .
  
Bill No:  SB 2055
Author:   Costa (D), et al
Amended:  8/25/98
Vote:     27
                                                              
                                                             
  .  

  SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 4/21/98
AYES:  Vasconcellos, Rainey, Burton, Kopp, McPherson,  
  Polanco, Schiff
NOT VOTING:  Watson

  SENATE APPROPRIATIONS COMMITTEE  :  12-0, 5/26/98
AYES:  Johnston, Alpert, Burton, Dills, Hughes, Johnson,  
  Kelley, Leslie, McPherson, Mountjoy, O'Connell,  
  Vasconcellos
NOT VOTING:  Calderon

  SENATE FLOOR  :  37-0, 5/28/98
AYES:  Alpert, Ayala, Brulte, Burton, Calderon, Costa,  
  Dills, Greene, Hayden, Haynes, Hughes, Hurtt,  
  Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,  
  Kopp, Leslie, Lockyer, Maddy, McPherson, Monteith,  
  Mountjoy, O'Connell, Peace, Polanco, Rainey, Rosenthal,  
  Schiff, Sher, Solis, Thompson, Vasconcellos, Watson,  
  Wright
NOT VOTING:  Craven, Lewis

  ASSEMBLY FLOOR  :  70-2, 8/28/98 - See last page for vote
                                                              
                                                          .

SUBJECT  :    Youth Authority commitments:  county payment  
costs

  SOURCE  :     California State Association of Counties
                                                              
                                                          .






DIGEST  :    This bill caps the fee currently paid by  
counties to the California Youth Authority (CYA) for  
committing a youth to the CYA.  Specifically, this bill:

1.Provides that the Department of the Youth Authority must  
  present to each county, not more frequently than monthly,  
  a statement of per capita institutional cost.

2.Defines "per capita institutional cost" to mean the  
  lesser of the current per capita institutional cost of  
  the department, or the per capita institutional cost  
  charged counties as of January 1, 1997.

  Assembly Amendments  delete Senate language modifying the  
current sliding scale provisions regarding county payments  
to Youth Authority and instead provide for a per capita  
institutional cost approach.

  ANALYSIS  :    Under current law, effective January 1, 1997,  
counties must pay the state $150 (instead of the former  
$25) for each minor committed to the Department of the  
Youth Authority.  (Welfare and Institutions Code ("WIC")  
sec. 912.)  In addition, counties must contribute a  
"sliding scale" contribution for Youth Authority  
commitments based upon the category of the offender; the  
sliding scale ranges from 50% of the per capita  
institutional cost of the Youth Authority for category 5  
offenses (category 1 being the most serious out of 7  
categories), 75% for category 6 offenses, and 100% for  
category 7 offenses.  (WIC sec. 912.5.)

  Sliding Scale; History and Effect
  
In 1996, the Legislature enacted legislation increasing the  
fees that counties pay to the State for commitment of  
juvenile offenders to CYA.  (SB 681(Hurtt) (Ch. 6/96).)   
These new fees went into effect in January of last year.   
Before SB 681, counties paid the State $25 -- an amount set  
in 1961-- each month for each offender sent to CYA.  SB 681  
increased this fee to $150 per offender per month, and also  
enacted a "sliding fee scale" for offenders sent by  
counties to CYA.  As explained by the Legislative Analyst's  
office:

   When a ward is sent to the Youth Authority, the Youthful  
   Offender Parole Board assigns the ward a category number  
   -- from 1 to 7 -- based on the seriousness of the  
   commitment offense.  Generally, wards in categories 1  
   through 4 are considered the most serious offenders,  





   while categories 5 through 7 are less serious.  Under  
   this legislation, counties (will) pay 100 percent of the  
   costs of wards in category 7 (the least serious offense  
   category), 75 percent of the costs for wards in category  
   6, and 50 percent of the costs for wards in category 5.   
   Counties would pay the proposed $150 per month fee for  
   all other commitments.  Wards in categories 5, 6 and 7  
   generally spend less than 18 months in Youth Authority  
   institutions.  Similar types of offenders who are placed  
   in county-run facilities often spend less than six  
   months in the facilities.

In 1994, the Legislative Analyst's office reviewed CYA  
placements and discovered that 24 counties at that time  
sent primarily serious offenders to CYA; in contrast, LAO  
found that "20 counties' total commitments to the Youth  
Authority consist (at that time) of 50 percent or more of  
less serious offenders."  The legislation imposing a  
sliding scale fee for CYA commitments was intended to  
address this situation.

In its analysis of the 1998-99 Budget, the Legislative  
Analyst's Office concluded that preliminary data indicates  
sliding scale has been successful for the state:

   Commitment data suggest that the new sliding fees have  
   had the desired impacts. The 1997 commitments of wards  
   who are in categories 5, 6, and 7 declined almost 40  
   percent when compared to 1996.  Commitments of category  
   7 wards, for whom counties paid full cost, decreased by  
   52 percent. There were only 26 commitments in this  
   category to the Youth Authority in 1997. 

   We believe that as a result of the new sliding fee,  
   counties will continue to have a fiscal incentive to use  
   less costly local options rather than the Youth  
   Authority, especially for the least serious offenders,  
   where the county would pay most of the cost of  
   commitment.  Several counties have informed us that in  
   response to the new fees they have developed local  
   alternatives to Youth Authority placements. These new  
   placement options include the creation of new ranch and  
   camp beds and the use of other nonresidential options,  
   such as day-treatment centers, for less serious  
   offenders.  As we describe below, counties have received  
   significant new federal funds for creating services for  
   these types of offenders.  The budget proposes to  
   further increase these funds.  (Legislative Analyst's  
   Office, Analysis of the 1998-99 Budget Bill)






As explained by the author, counties argue sliding scale  
has greatly increased the fees they must pay for Youth  
Authority commitments.  According to a January 1998 survey  
of 44 counties conducted by CSAC,  their total Youth  
Authority fees increased 909 percent between 1995-96 and  
1997-98; at the same time, their low-level offender  
commitments decreased 51.3 percent.

This bill would change the formula upon which sliding scale  
fees to the State is based.  Instead of basing fees on the  
per capita institutional costs for Youth Authority, this  
bill would base the fees on the marginal costs for Youth  
Authority.  Currently, the per capita cost of Youth  
Authority is about $32,000; the marginal cost -- that is,  
the cost to add each additional ward to an institution --  
is about $17,000.  Counties argue the per capita formula  
unfairly penalizes counties:  as the Youth Authority  
population decreases, the per capita costs increase,  
thereby increasing the sliding scale fees charged to  
counties which go directly to the State.  

The proposed change to the formula would greatly reduce  
sliding scale fees paid to the state.  However, under the  
bill, the counties would have to pay an additional amount  
to a newly-created local juvenile justice trust fund.  In  
this way, although this bill would decrease sliding scale  
payments to the State, it would not decrease the overall  
amount counties would have to pay under the entire sliding  
scale scheme because of the county juvenile trust fund this  
bill would mandate.

  Background:  State Funds for Local Juvenile Programs
  
In its analysis of the 1998-99 Budget, the Legislative  
Analyst's Office stated:

   In response to federal welfare reform, the California  
   Legislature established the California Work Opportunity  
   and Responsibility to Kids (CalWORKs) program in 1997.   
   The CalWORKS law specifically provided that TANF funds  
   could be used to provide probation services to juvenile  
   offenders.  In the current year, counties received $141  
   million in TANF block grant funds for juvenile offenders  
   under the care of probation departments.  In addition,  
   counties with ranches and camps received an additional  
   $33 million in TANF funds for support of these juvenile  
   facilities.  Consequently, a total of $174 million in  
   TANF was allocated to county probation departments.  

   The budget also continues the $33 million from TANF for  





   counties with juvenile ranches and camps.  As a result,  
   the budget proposes allocating $200 million from TANF to  
   county probation departments to provide services to  
   juvenile offenders.  As a result of the TANF funds,  
   counties have a source of funds to either defray  
   whatever costs they might incur as a consequence of the  
   new Youth Authority fees or develop alternatives to  
   Youth Authority placements. Furthermore, the significant  
   amount of funding available under the TANF probation  
   grants should allow counties to continue to decrease  
   their reliance on placements in the Youth Authority and  
   accordingly, reduce future sliding scale fee costs.   
   Notwithstanding the overall decrease in Youth Authority  
   placements, the allocation of $200 million to counties  
   for juvenile offenders is substantially more than the  
   estimated $43 million that counties will reimburse the  
   state for Youth Authority placements.

  Prior legislation  :

AB 2312 (Woods) passed the Senate 39-0 on 8/29/96 and was  
vetoed by the Governor.

Governor's Veto Message:

   "By relieving counties of some of their responsibility  
   to pay a portion of the cost for committing wards to the  
   Youth Authority, this bill would increase General Fund  
   expenditures by millions of dollars over the next six  
   fiscal years.  The State is already providing a  
   considerable amount of funding to counties in support of  
   local juvenile justice programs, including $33 million  
   per year for county probation camps.  In further support  
   of county efforts, I recently signed SB 1760, which  
   provides $50 million in grant funds to be awarded to  
   county agencies for the prevention of juvenile crime and  
   treatment of youthful offenders.  These funds, not  
   anticipated at the time this bill was introduced, would  
   appear to provide more first year relief than AB 2312.

   "I am also concerned with the provision that would allow  
   a juvenile ordered into the custody of the county  
   juvenile correctional administrator pursuant to a  
   community-based punishment plan, to be placed in the  
   Department of Youth Authority under terms and conditions  
   determined by the county administrator rather than state  
   authorities.  This bill would appear to obscure the  
   authority of  (the Youth Authority and the Youthful  
   Offender Parole Board) by allowing the county  
   correctional administrator to determine the length of  





   stay and the terms and conditions of the placement.

   "I am not unalterably opposed to providing additional  
   relief, of the magnitude sought here, to county juvenile  
   authorities.  I have directed my staff to work with the  
   author to explore alternatives to disruption of the  
   formula under which counties contribute to the costs of   
   the Youth Authority."

  FISCAL EFFECT :   Appropriation:  Yes   Fiscal Com.:  Yes    
Local:  Yes

                         Fiscal Impact (in thousands)

  Major Provisions               1998-99       1999-2000      2000-01   Fund  
CYA sliding scale fee   
loss of revenues             $ 1,000     $ 22,000     $ 22,000General
LJJPD revenues               $ 1,000     $ 22,000     $ 22,000Local 

  SUPPORT  :   (Verified  5/22/98) (Unable to reverify at time  
of writing)

California State Association of Counties (source)
San Bernardino County Board of Supervisors
Urban Counties Caucus
Merced County
San Diego County
City and County of San Francisco

  ARGUMENTS IN SUPPORT :    The author states:

SB 681 (Hurtt, 1996) imposed a fee schedule upon counties  
for "low level" offenders sent to the California Youth  
Authority (CYA).  The intent of the legislation was to  
provide a monetary disincentive for sending "low level"  
juvenile offenders to the CYA.  Clearly, the Legislature  
wanted counties to treat, punish and house these offenders  
at the local level.

The related cost to counties for CYA has increased from  
just under $2 million in FY 1995-96 to a projected $20-30  
million for FY 1997-98.  While costs have increased 10-15  
fold, low level commitments to the CYA decreased  
approximately 53.2 percent during that time. . . .  

SB 2055 would redirect a portion of the fees currently sent  
to CYA and return the money to the county of commitment to  
be placed in a Local Juvenile Justice Program Development  
Fund.  Moneys in the fund would be earmarked for juvenile  
probation programs and facilities -- such as probation  





camps and ranches -- dedicated to the punishment, treatment  
and rehabilitation of juvenile offenders.

Given that the per capita cost CYA charges counties has  
continually increased, (as counties send fewer kids to CYA,  
their per kid cost increases) SB 2055 would also freeze the  
actual per capita costs CYA could charge counties at the  
January 1, 1997 level.

  ASSEMBLY FLOOR  :
AYES:  Ackerman, Aguiar, Alby, Alquist, Aroner, Ashburn,  
  Baca, Baldwin, Battin, Baugh, Bordonaro, Bowen, Bowler,  
  Brewer, Bustamante, Campbell, Cardenas, Cardoza, Cedillo,  
  Cunneen, Davis, Ducheny, Escutia, Figueroa, Firestone,  
  Frusetta, Gallegos, Goldsmith, Granlund, Havice,  
  Hertzberg, Honda, House, Kaloogian, Keeley, Knox, Kuehl,  
  Kuykendall, Leach, Lempert, Leonard, Margett, Mazzoni,  
  Migden, Miller, Morrissey, Morrow, Murray, Napolitano,  
  Olberg, Oller, Ortiz, Perata, Poochigian, Prenter,  
  Pringle, Runner, Scott, Shelley, Strom-Martin, Sweeney,  
  Thompson, Torlakson, Vincent, Washington, Wayne, Wildman,  
  Woods, Wright, Villaraigosa
NOES:  Martinez, McClintock
NOT VOTING:  Brown, Floyd, Machado, Pacheco, Papan,  
  Richter, Takasugi, Thomson

RJG:jk/sl  8/28/98  Senate Floor Analyses
              SUPPORT/OPPOSITION:  SEE ABOVE
                      ****  END  ****