BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           287 (Beall)
          
          Hearing Date:  8/27/2009        Amended: 8/17/2009
          Consultant: Katie Johnson       Policy Vote: Human Services 4-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 287 would establish the Employment First  
          Policy, a program that would assist youth and adults served by  
          regional centers that are under the jurisdiction of the  
          Department of Developmental Services (DDS) in gaining  
          employment.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          SCDD committee                   at least $50    at least $100    
          at least $100 Federal
          _________________________________________________________________ 
          _

          STAFF COMMENTS:  SUSPENSE FILE. AS PROPOSED TO BE AMENDED.

          Existing law, the Lanterman Developmental Disabilities Services  
          Act, grants persons with developmental disabilities the right to  
          receive services and supports to meet their needs. Existing law  
          requires DDS to contract with private non-profit corporations  
          for the operation of regional centers to obtain services and  
          supports and to develop an individual program plan (IPP) for  
          individuals with developmental disabilities. DDS currently  
          contracts with 21 regional centers to provide services and  
          supports to approximately 243,000 individuals.

          Existing law establishes the State Council on Developmental  
          Disabilities (SCDD) to develop and implement the state plan  
          required by the federal government.

          Existing law establishes the Department of Rehabilitation (DOR)  
          with the mission to provide services and advocacy that assist  
          people with disabilities, including those with developmental  
          disabilities, to live independently and become employed. DOR  
          provides consultation, counseling, and vocational rehabilitation  










          to consumers. It administers the Supported Employment Program  
          through which it serves approximately 8,000 individuals, the  
          majority with developmental disabilities.

          This bill would establish the Employment First Policy and would  
          require the IPP process for transition age youth and working age  
          adults to be guided by it.

          This bill makes findings and declarations related to the  
          societal and economic benefits of employing individuals with  
          developmental disabilities.

          This bill would state that the intended outcome of the  
          Employment First Policy is to increase the number of individuals  
          with developmental disabilities who engage in employment. This  
          bill would additionally state that the Employment First Policy  
          furthers the goal that services and supports be made available  
          to enable persons with 

          Page 2
          AB 287 (Beall)

          developmental disabilities to approximate the pattern of  
          everyday living available to people without disabilities of the  
          same age.

          This bill would also state the Legislature's intent that,  
          beginning when a consumer is 14 years of age, planning teams  
          discuss school-to-work opportunities during IPP meetings and  
          that, upon request, a regional center representative would be  
          available to participate in a consumer's individualized  
          education plan (IEP) meetings to discuss transition planning.

          Although this bill would establish the Employment First Policy  
          and would state Legislative intent that this policy would  
          further the goal of increasing the number of employed  
          individuals with developmental disabilities, the definition of  
          the Employment First Policy and scope is unclear. Since this is  
          unclear, there would be unknown, but major, General Fund and  
          federal fund cost pressure on DOR to provide supported  
          employment services to individuals who, as a result of this  
          policy would choose to pursue active employment. Supported  
          employment services are approximately $4,000 per person each  
          year. Costs are shared 20 percent General Fund and 80 percent  
          federal funds. However, since the amount of federal funds  
          available is capped, any extra resources required by DOR would  










          be 100 percent General Fund. There are approximately 140,000  
          youth over age 14 and adults served by regional centers.  
          Although it is difficult to estimate the number of adults who  
          would transition from day programs to supported employment, to  
          the extent that is the case, there could be General Fund and  
          federal fund savings for DDS. Since the Employment First Policy  
          appears to target youth leaving the educational system, the  
          number of people currently in day programs transferring to  
          employment could be small.

          Additionally, the DDS General Fund budget assumes $384 million  
          in cuts for FY 2009-2010. These include substantial cuts to  
          regional center services and administration. It is unlikely that  
          regional centers, DDS, and DOR would be able to absorb any  
          additional responsibilities. However, to the extent that an  
          individual gains employment and continues to remain employed,  
          there could be savings to DDS to the extent that the person is  
          working and earning income instead of participating in a day  
          program funded by the state. The amount and timing of potential  
          savings is unknown. 

          This bill also would require the SCDD to form a standing  
          Employment First Committee to implement the Employment First  
          Policy and to, no later than July 1, 2011, and annually  
          thereafter, report to the Legislature and the Governor  on the  
          committee's work and recommendations. This bill would require  
          that the responsibilities of the Employment First Committee  
          include, but are not limited to, identifying the respective  
          roles and responsibilities of state and local agencies in  
          enhancing employment opportunities, identifying strategies, best  
          practices, and incentives for increasing employment and  
          improving the transition planning process for students 14 years  
          of age or older, identifying sources of employment data and  
          recommending goals for increasing employment, and recommending  
          legislative, regulatory, and policy changes for increasing the  
          percentage of people with developmental disabilities in  
          employment.


          Page 3
          AB 287 (Beall)

          SCDD would need at least an additional staff person at a cost of  
          approximately $100,000 annually in federal funds to complete the  
          report and to staff the Employment First Committee.











          There are similar efforts to increase the number of employed  
          individuals with developmental disabilities. For example, the  
          Governor has a committee dedicated to the issue:  the Committee  
          on Employment of People with Disabilities, which receives staff  
          support from the State Employment Development Department (EDD)  
          within the Labor and Workforce Development Agency. Additionally,  
          the Governor and First Lady Maria 

          Shriver launched the We Include Initiative, a program to aid in  
          the employment of people with developmental disabilities.  
          Finally, the State Department of Rehabilitation (DOR) provides  
          individualized services to people with disabilities to help with  
          employment and independent living, including some programs to  
          aid high school seniors in transitioning from school to the  
          workforce, which is a function similar to the one intended by  
          this bill.

          AB 2424 (Beall) of 2008 would have similarly established an  
          employment first policy, although there were more detailed  
          changes to the IPP process than contained in this bill. AB 2424  
          was held on the Senate Appropriations Committee suspense file.

          The amendments proposed by the author would limit the bill to  
          the findings and declarations and the establishment of the  
          Employment First Committee under the State Council on  
          Developmental Disabilities (SCDD), as described above, which  
          would develop an Employment First Policy and other  
          recommendations for consideration by the Legislature.