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 ****