BILL ANALYSIS
AB 1
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Date of Hearing: March 18, 2003
ASSEMBLY COMMITTEE ON AGING AND LONG TERM CARE
Lynn M. Daucher, Chair
AB 1 (Berg) - As Introduced: December 2, 2002
SUBJECT : Funding for Area Agencies on Aging
SUMMARY : In the absence of the enactment of the budget act by
July 1 of the fiscal year, this bill appropriates from the
Federal Trust Fund to the California Department of Aging (CDA)
the amount of the Federal Trust Fund that is necessary for the
administration of programs under the jurisdiction of the Area
Agencies on Aging (AAAs). Specifically, this bill :
1) Allows the Department of Finance to reduce the applicable
budget act allocations by the amount of the payments made
pursuant to this subdivision.
2)Requires payments made to the AAAs pursuant to this section be
made on July 15 with payments to be made on the 15th of each
month thereafter until the enactment of the Budget Act.
3)Specifies the measure will take effect as an urgency action to
ensure that the AAAs will be able to prevent interruptions in
important services provided to elderly persons.
EXISTING LAW
1)Establishes the CDA as the state agency that administers a
broad range of home- and community-based services throughout
California.
2)Establishes the AAAs as the local entities that provide for
and/or deliver services at the local level. The 33 AAAs
administer these programs in compliance with the Older
Americans Act, the Older Californians Act and other applicable
regulations.
3)Establishes the Medical Providers Interim Payment Fund to
continuously appropriate funds to Medi-Cal providers, the AIDS
drug assistance programs and developmental services programs
in the event the budget is not passed on time. The Controller
is authorized to loan up to $2 billion to the fund to cover
the cost of these claims when the budget is stalled.
AB 1
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FISCAL EFFECT : Not known
COMMENTS :
This bill provides that in the absence of the enactment of the
annual budget act by July 1, an amount be continuously
appropriated from the Federal Trust Fund to CDA to continue the
programs operated by the local AAAs. Once the budget is
enacted, the Department of Finance is authorized to reduce the
amounts appropriated in the budget by the amount advanced
pursuant to this statute. Ninety percent of the funding
distributed by the CDA for the 33 AAAs is received from the
federal government. The remaining ten percent is appropriated
from the General Fund.
PURPOSE OF THE BILL: The bill would ensure continued funding of
services to the elderly in the event of a budget delay. Under
current law, CDA cannot allocate the federal funds to local
agencies to continue services. It is difficult for local AAAs
to borrow funds to temporarily continue services and the payment
of interest is not an allowable federal expenditure.
RELATED LEGISLATION: Previous measures, identical to this bill
have been held in Appropriations Committees. In 1999, an
identical measure, SB 657 (Ortiz) was held in Senate
Appropriations Committee. In 2001, AB 2552 (Daucher) was held
in Assembly Appropriations Committee.
AB 561 (Scott, Chapter 993, Statutes of 1998) enacted a funding
mechanism to protect MediCal providers, developmental
disabilities providers and the AIDS drug assistance program in
the event of a budget delay. This measure provided for a loan
of up to one billion in state general funds and up to one
billion in federal funds to the Medical Providers Interim
Payment in order to continue making payments to specified
providers in the event the budget was not signed by June 30 of
any year. AB 41 (Daucher) which proposes to set up the Senior
Citizens Interim Payment Fund, has been introduced this year.
REGISTERED SUPPORT / OPPOSITION :
Support
Area 4 Agency on Aging
AB 1
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Area 4 Agency on Aging Advisory Council of Huntington Beach
Area 4 Agency on Aging Advisory Council of San Luis Obispo
Area 4 Agency on Aging Advisory Council of Santa Barbara
Area 4 Agency on Aging Advisory Council of West Sacramento
CHP Plus
California Association of Area Agencies on Aging
California Commission on Aging
California Retired Teachers Association
California Senior Coalition
California Senior Legislature
City of West Sacramento
Congress of California Seniors
County of Ventura, Area Agency on Aging
Foothill Volunteer Center
Fresno-Madera Agency on Aging
Gold County Telecare, Inc.
Gray Panthers
Health For All, Inc.
Imperial County Area Agency on Aging
Lake and Mendocino Counties Council on Aging
Legal Center for the Elderly and Disabled
Merced County Human Services Agency
Older Women's League of California
Riverside County Advisory Council on Aging
Sacramento County Adult & Aging Commission
San Joaquin County Commission on Aging
Senior Citizens Advisory Council, Orange County
Senior Citizens' Foundation of Western Nevada County
Seniors First
Sutter County Commission on Aging (14 members)
TACC, Triple-A Council of California
UC Davis Care Management
Yuba County Commission on Aging
Opposition
None on file
Analysis Prepared by : Bonnie Darwin / AGING & L.T.C. / (916)
319-3990