BILL ANALYSIS
AB 324
Page 1
Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 324 (Beall) - As Amended: April 28, 2009
Policy Committee: Aging & LTC
Vote:5-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Department of Aging (CDA) to
establish and update the Elder Economic Security Standard Index
(Index) and requires Area Agencies on Aging (AAA) to use the
Index in their service planning. In addition, this bill
requires current and new needs-based CDA programs to rely on the
Index to establish income eligibility. Requires AAA to use the
Index to update Linkages, a current law program that is not
income-tested.
FISCAL EFFECT
1)One-time costs of $60,000 (GF) to CDA to contract with UCLA,
which has modified the Index for use in California. On-going
costs to CDA or UCLA would be less to update demographic and
financial data for 33 AAA statewide.
2)Unknown GF pressure to CDA-administered programs relying on
Index-based calculations of need, rather than current law
Federal Poverty Level (FPL) calculations. This bill requires a
future focus on the Index for newly administered programs. In
2009-10 the proposed CDA budget is $212 million (23% GF).
Under current law, only a few CDA programs are means-tested.
To the extent this bill creates future pressures on such
programs, costs could be in the range of $200,000- $500,000
(all funds).
3)Unknown, likely absorbable costs to AAA, to update the
Linkages program information annually. Because this bill
addresses state law changes with regard to planning efforts,
federal requirements in this area remained unchanged. This
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bill does not change local planning efforts with respect to
federal requirements. The potential uniformity introduced by
the Index may therefore not be fully realized
administratively.
COMMENTS
1) Rationale . This bill is co-sponsored by the Insight Center
for Community and Economic Development, the Women's
Foundation of California, Catholic Charities of California,
the California Senior Legislature, and the National
Association of Social Workers. This bill, by adding the Index
to planning efforts, provides CDA and AAA local agencies with
more specific and uniform demographic and financial data with
respect to elderly Californians and their service needs.
Under current law, local jurisdictions undertake periodic
detailed planning. Many of these efforts rely on the FPL, an
index used by federal and state governments in programs such
as Medi-Cal, food stamps, and CalWORKs. The FPL is based on a
"basket" of living costs established decades ago. The
proportion of spending, for example, attributable to housing
needs does not reflect the costs of living in many
Californians communities. In 2009, 100% of FPL is $10,830 for
a single person in annual income. Because this FPL is so low,
many means-tested programs must rely on multipliers-200% and
300% of FPL, for example. According to the author and
sponsors FPL has lost much of its meaning in high-cost
California. The Index, in contrast, relies on numerous
factors to update such costs and demographic factors that
reflect local variation and needs of older Californians. This
bill, by shifting the focus to the Index, provides local
communities and the elders served by programs with more
accurate information for planning efforts.
2) Background . The 33 AAAs coordinate an array of services for
seniors and adults with disabilities at the community level
and serve as a focal point for local aging programs. The AAA
provide a range of services, including supportive services,
nutrition programs, employment services, and preventive
health services. In addition, CDA administers a range of
programs, supported by state and federal funds that provide
non-institutional services for older Californians and
functionally impaired adults, including the Multipurpose
Senior Services Program, Linkages, Adult Day Health Care, and
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the Alzheimer's Day Care Resource Centers. The Linkages
Program provides case management services to elderly and
dependent adults at risk of institutionalization.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081