BILL ANALYSIS
AB 324
Page 1
GOVERNOR'S VETO
AB 324 (Beall)
As Amended September 3, 2009
2/3 vote
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|ASSEMBLY: |53-21|(June 3, 2009) |SENATE: |26-14|(September 8, |
| | | | | |2009) |
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|ASSEMBLY: |60-17|(September 10, | | | |
| | |2009) | | | |
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Original Committee Reference: AGING & L.T.C.
SUMMARY : Requires the California Department of Aging (CDA) and
each area agency on aging (AAA) to utilize the Economic Security
Standard Index (Elder Index) in their service planning.
Specifically, this bill :
1)Requires CDA to report the Elder Index data for each service
area in its state plan, only if the Elder Index is updated and
made available to CSA.
2)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), only if the Elder Index is updated and
made available to each AAA.
3)Specifies that this bill shall not be construed to mandate
changes in the current funding allocations to AAAs or
construed, based on the use of the Elder Index, to affect
means-tested programs administered by CDA through the
Mello-Granlund Older Californians Act.
4)Defines "Elder Economic Security Standard Index" to mean an
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index that quantifies the costs that elders face in meeting
their basic needs, including food, shelter, health care,
transportation, utilities, and essential household items in
the private market.
The Senate amendments :
1)Delete the requirement for CDA to annually update the Elder
Index as well as the requirement that AAAs annually update the
Linkages Program intake form to include the most current Elder
Index
2)Specify, explicitly, that this bill shall not be construed,
based on the use of the Elder Index, to affect means-tested
programs administered by CDA through the Mello-Granlund Older
Californians Act.
AS PASSED BY THE ASSEMBLY , this bill required CDA to update the
Elder Index and AAAs to use the Elder Index in their service
planning. Specifically, this bill :
1)Redefined "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 United States (U.S.) Census Bureau.
2)Required 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)Required 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)Required 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.
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5)Allowed CDA to contract with the office of the President of
the University of California to modify the Elder Index for
California and update the demographic and financial data.
6)Specified 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 PSA.
7)Required 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)Specified that this bill shall not be construed to mandate
changes in the current funding allocations to AAAs.
FISCAL EFFECT : According to the Senate Appropriations
Committee, a fiscal impact of $30,000 in fiscal year (FY)
2009-10, $60,000 in FY 2010-11, and $60,000 in FY 2011-12, all
in private funds. Unknown, but potentially in the hundreds of
thousands of dollars for CDA administration, eventually offset
by private donations, and unknown cost pressures on state
means-tested programs, but potentially in the millions of
dollars annually. However, the fiscal estimate is based on a
prior version of the bill and while the impact has changed with
subsequent amendments deleting the language requiring private
funds, updated information is not available at this time.
COMMENTS : Research 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.
Proponents argue that policymakers struggle to create effective
policies to promote economic security and eradicate poverty
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 federal poverty guidelines (FPG), a measure based
solely on the cost of a bare-bones food diet. Although the FPG
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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 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.
Both CDA and local AAAs include demographic data, including
poverty statistics, in the state and area plans, respectively.
While programs and services administered by CDA and the AAAs do
not require means-testing for eligibility, 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.
GOVERNOR'S VETO MESSAGE :
"While I appreciate the author and sponsors' interest in better
refining their planning and service levels for the seniors in
their communities, this bill is unnecessary. Local agencies can
already use the specific index defined by this bill in their
planning efforts. Furthermore, this bill would create General
Fund cost pressures at a time when there is no ability to
increase service levels."
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Analysis Prepared by : Allison Ruff / AGING & L.T.C. / (916)
319-3990
FN:
0003279