BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 151
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          ASSEMBLY THIRD READING
          ACR 151 (Ma)
          As Amended  May 12, 2010
          Majority vote 

           HUMAN SERVICES      4-2                                         
           
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          |Ayes:|Beall, Ammiano, Swanson,  |     |                          |
          |     |Portantino                |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Tom Berryhill, Logue      |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Declares the intent of the Legislature to ensure the  
          preservation of home care and personal services to seniors and  
          people with disabilities through the In-Home Supportive Services  
          (IHSS) program.  Specifically,  this resolution  makes the  
          following legislative findings:  

          1)For over a quarter century, California has provided home care  
            and personal assistance services to qualifying residents  
            through a unique, consumer-directed fiscally sound program  
            called IHSS.

          2)The IHSS program was signed into law by Governor Ronald Reagan  
            in 1973 to avoid their unnecessary institutionalization and  
            assist IHSS recipients to live independently in the community.

          3)California's IHSS program has become nationally recognized as  
            the preferred way to provide long-term care assistance and is  
            being replicated in other states.

          4)IHSS is a prime example of the home-based, long-term care  
            solutions that were the focus of President George W. Bush's  
            2001 "New Freedom Initiative."

          5)February 2010 data from the California IHSS Management  
            Statistics Summary show that the IHSS program serves nearly  
            450,000 residents who qualify for services because of  
            functional limitations and financial need.

          6)The average per capita cost of IHSS is one-fifth of the  








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            average per capita cost to taxpayers of nursing homes.

          7)The IHSS program is acknowledged as the reason California has  
            a relatively low number of people in nursing homes and other  
            institutions.

          8)The IHSS program is key to fulfilling the civil rights of  
            Californians with disabilities to live in the most integrated  
            settings, as affirmed by the Americans with Disabilities Act  
            and the 1999 Supreme Court decision in  Olmstead  .

          9)Nearly 370,000 IHSS providers deliver the home care services  
            and support to make it possible for California seniors and  
            people with disabilities to remain living independently in  
            their homes.

          10)Numerous national organizations join together annually to  
            declare the month of November as National Home Care Month to  
            recognize, honor, and support the valuable contributions of  
            home care workers.

          11)The work of IHSS providers is essential to the independence  
            of seniors and people with disabilities and deserves the  
            respect and appreciation of all Californians.

           FISCAL EFFECT  :  None

           COMMENTS  : 
           
          The IHSS Program helps pay for services so that the elderly,  
          disabled, or blind individuals can remain in their own homes and  
          avoid institutionalization.  More than 370,000 caregivers  
          provide services under the IHSS program to a projected 450,000  
          recipients.

          The growth--that is, the success--of the IHSS program has led to  
          budget actions and budget proposals to control costs by cutting  
          provider wages, limiting access to services within the program,  
          narrowing eligibility for the program, and even elimination of  
          the entire program.  Recent budget actions have reduced the  
          state's participation in provider wages and benefits, denied all  
          services based on Functional Index (FI) scores, and reduced  
          services based on Functional Ranks.  These actions have been  
          enjoined as a result of litigation.








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          The Governor's January budget proposal for Fiscal Year 2010-11  
          would eliminate IHSS eligibility for all but the most severely  
          impaired individuals, resulting in an 87% reduction in the  
          caseload.  The LAO has noted that reducing the IHSS caseload by  
          87% would have other impacts, including the loss of over 310,000  
          jobs, thereby increasing the state's unemployment from a  
          projected 12% to as high as 13.2%, and further stressing the  
          state's unemployment insurance fund.

          The Governor's January proposed budget also includes a trigger  
          provision that would eliminate the entire IHSS program effective  
          October 1, 2010 if the state does not receive $6.9 billion in  
          additional federal funds for a range of programs.  In a January  
          2010 report, entitled  Considering the State Costs and Benefits:   
          In-Home Supporive Services Program  , the LAO considered the net  
          fiscal impact of eliminating the IHSS program  and concluded  
          that elimination of the program would result in a net cost to  
          the state General Fund if more than 32% of recipients entered a  
          skilled nursing facility as a result.  A subsequentlly conducted  
          analysis suggests that the breakeven point may be even lower,  
          resulting in net costs to the state if only 22% of IHSS  
          recipients moved to nursing homes in the absence of IHSS  
          services.  Howes, C.,  Costs and Benefits of In-Home Supportive  
          Services for the Elderly and Persons with Disabilities:  A  
          California Case Study  , Institute for Women's Policy Research and  
          PHI (May 3, 2010),  http://www.iwpr.org/pdf/E512HowesCBA.pdf  .  

          This resolution recognizes the value of the IHSS program, not  
          only in terms of its cost effectiveness but also in its  
          importance in human terms to the lives of hundreds of thousands  
          of California's seniors and people with disabilities.  
           

          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 
                                                                FN: 0004313