BILL ANALYSIS
AB 324
Page 1
ASSEMBLY THIRD READING
AB 324 (Beall)
As Amended June 1, 2009
Majority vote
AGING 5-1 APPROPRIATIONS 12-5
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|Ayes:|Bonnie Lowenthal, |Ayes:|De Leon, Ammiano, Charles |
| |Nestande, | |Calderon, Davis, Fuentes, |
| |V. Manuel Perez, Torres, | |Hall, John A. Perez, Price, |
| |Yamada | |Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+----------------------------|
|Nays:|Hagman |Nays:|Nielsen, Duvall, Harkey, |
| | | |Miller, |
| | | |Audra Strickland |
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SUMMARY : Requires the California Department of Aging (CDA) to
update the Elder Economic Security Standard Index (Elder Index)
and area agencies on aging (AAA) to use the Elder Index in their
service planning. Specifically, this bill :
1)Redefines "greatest economic need" to mean the need resulting
from an income level at or below thresholds established by the
Elder Index instead of using the poverty threshold established
by the Census Bureau.
2)Requires CDA to report the Elder Index data for each service
area in its state plan as part of the overall data and
population trends used to develop programs and policies.
3)Requires CDA to annually update the Elder Index for each
county in California, using the methodology developed for the
2008 Elder Index, beginning in 2010 and calculate the number,
percentage, and demographic profile of older adults living
below the Elder Index.
4)Requires CDA to analyze the number and percentage of older
adults living below the updated Elder Index for that year by
county, race, ethnicity, gender, age, housing situation, and
other relevant demographic factors.
5)Allows CDA to contract with the office of the President of the
AB 324
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University of California to modify the Elder Index for
California and update the demographic and financial data.
6)Specifies that each AAA's area plan must utilize the Elder
Index and identify which elders are living at or below the
Elder Index as well as specify the costs of meeting basic
needs for older adults in their respective planning and
service area (PSA).
7)Requires AAAs to annually update the Linkages Program intake
form to include the most current Elder Index adopted by CDA in
order to identify older adults in economic need and refer them
to other resources and programs.
8)Specifies that this bill shall not be construed to mandate
changes in the current funding allocations to AAAs.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, one-time costs of $45,000 GF to CDA to contract with
the University of California, Los Angeles (UCLA). UCLA has
modified the Elder Index for use in California. On-going costs
will likely be less, depending on the complexity of annual
updates to the Elder Index.
COMMENTS :
Recent research from UCLA and the Insight Center for Community
Economic Development has shown that 495,000 older Californians
living alone in 2007 could not make ends meet - lacking
sufficient income to pay for even a minimum level of housing,
food, health care, transportation and other basic expenses.
Since 1965, there have been two slightly different versions of
the federal poverty measure - the FPG and the federal poverty
thresholds. The poverty thresholds are the original version of
the federal poverty measure and are updated by the Census Bureau
each year. The thresholds are used primarily for statistical
purposes. The FPG are issued each year in the Federal Register
and are a simplification of the poverty thresholds. They are
used for administrative purposes, including determining
financial eligibility for certain federal programs. The FPG are
sometimes loosely referred to as the federal poverty level.
Proponents argue that policymakers struggle to create effective
policies to promote economic security and eradicate poverty
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because they do not have an accurate picture of what it really
takes to make ends meet in today's economy. Policymakers
typically measure poverty and determine benefits eligibility by
using the FPG, a measure based solely on the cost of a
bare-bones food diet. Although the FPG is updated annually
using the Consumer Price Index, the 2008 FPG is the same dollar
amount ($10,400 for an individual living alone) whether one
lives in a high cost market like urban Los Angeles, or a low
cost region like rural Arkansas.
In response to the shortcomings of the FPG, The Insight Center
for Community Economic Development led the effort to create the
California Elder Index which sets a new benchmark of income
adequacy for older adults. According to proponents, it provides
the true cost of meeting basic needs and maintaining
independence in the community. The Elder Index methodology uses
national and state data sources, including the U.S. Census
Bureau and the U.S. Department of Housing and Urban Development,
and reveals that in California, the FPG covers less than half of
the basic costs experienced by older adults.
Programs and services administered by CDA and the AAAs do not
require means-testing for eligibility, however, the federal
Older Americans Act requires that preference be given to older
adults with the greatest economic or social needs, with
particular attention given to low-income minority individuals.
To meet the federal requirements, CDA and AAAs track data,
including poverty data, on the number of older adults and people
with disabilities within a given PSA, but enrollment in programs
is not restricted to those who fall below a certain threshold,
with the exception of programs that use Medi-Cal funds. This
bill will not change eligibility for any of the programs
administered by CDA or the AAAs.
Please see the policy committee analysis for a more
comprehensive discussion of the bill.
Analysis Prepared by : Allison Ruff / AGING & L.T.C. / (916)
319-3990
FN: 0001247