BILL ANALYSIS
AB 719
Page 1
ASSEMBLY THIRD READING
AB 719 (Bonnie Lowenthal)
As Introduced February 26, 2009
Majority vote
HUMAN SERVICES 6-0 APPROPRIATIONS 17-0
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|Ayes:|Beall, Ammiano, Tom |Ayes:|De Leon, Nielsen, |
| |Berryhill, Logue, | |Ammiano, |
| |Portantino, Torres | |Charles Calderon, Davis, |
| | | |Duvall, Fuentes, Hall, |
| | | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Krekorian |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Creates the Transitional Food Stamps for Foster Youth
Program (Program). Specifically, this bill :
1)Requires, effective July 1, 2010, that the Department of
Social Services (DSS) create a Program under which independent
foster care adolescents, as defined in Section 1905(w)(1) of
the federal Social Security Act (42 U.S.C. Sec. 1396d(w)(1))
and who are not eligible for the California Work Opportunity
and Responsibility to Kids (CalWORKs) or Supplementary
Security Income program benefits, shall be eligible without
regard to income or resources.
2)Specifies that an eligible foster youth:
a) Receive the maximum benefit amount allotted for a
household size of one for the initial certification period,
which shall remain constant for the entirety of the initial
certification period. The food stamp case shall be
established and maintained in the county of jurisdiction
designated by the terminating foster care case; and,
b) Be entitled to a 12-month certification period and
exempt from any quarterly or semiannual reporting
requirement during the certification period.
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3)Provides that, notwithstanding any other provision law,
Chapter 4.6 (commencing with Section 10830) of Part 2 of
Division 9 shall not apply to individuals eligible under this
section during the 12-month transitional food stamp program
certification period.
4)Requires DSS to:
a) Seek, not later than March 1, 2010, all necessary
federal waivers to implement the Program; and, specifies
that the Program only be implemented to the extent that
federal financial participation is available;
b) Implement the Program by an all county letter or similar
instruction from the Director of DSS, and adopt regulations
as otherwise necessary to implement this section no later
than January 1, 2011; and,
c) Establish a new aid code for individuals receiving
benefits, in order to differentiate these cases from the
standard Non-assistance Food Stamp case.
EXISTING LAW :
1)Establishes a system of child welfare services, including
foster care, for children who have been or are at risk of
being abused or neglected.
2)Authorizes the juvenile court to retain jurisdiction over a
child who has been adjudicated a dependent because of abuse or
neglect until the ward or dependent child attains the age of
21 years.
3)Specifies that Aid to Families with Dependent Children-Foster
Care (AFDC-FC) benefits shall be paid on behalf of any child
under the age of 18 who meets additional eligibility criteria.
Exempts from this age-based requirement foster children
between the ages of 18 and 19 who are pursuing specified
education-related goals.
4)Establishes the food stamp program, in which food assistance
benefits are provided to eligible households and administered
by state and local agencies.
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FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)One-time costs of approximately $300,000 [$75,000 General Fund
(GF)] for automation costs associated with creating a new aid
code in the Medical Eligibility Determination System (MEDS).
2)Approximately 4,500 youth emancipate from the state's foster
care system each year. Approximately 15% will be eligible for
food stamps through the Supplemental Security Income/State
Supplementary Payment (SSI/SSP) program or the CalWORKs
program. The remaining 4,200 cases would receive $200 in food
stamp benefits per month. This would result in an additional
$9 million in federal benefits for California's emancipated
foster youth each year.
3)Annual costs of approximately $200,000 ($80,000 GF) for the
county administrative costs associated with establishing
transitional food stamps cases for emancipating foster youth.
4)Workload costs associated with DSS seeking a federal waiver,
distributing an All County Letter, and promulgating
regulations for this program would be minor and absorbable
within existing resources.
5)Because providing transitional food stamps to emancipated
foster youth brings more federal food stamp dollars into the
state, California could receive additional state GF revenues
due to increased sales tax. Studies show that low-income
families spend approximately 45% of their income on taxable
goods. By providing these youth with food stamps, 45% of the
money that would have been used to purchase food would now be
used for taxable goods. Based on this assumption, the state
could expect to receive up to $250,000 in additional sales tax
revenue.
COMMENTS : Foster youth who "age out" of or "emancipate" from
foster care at 18 or 19 are highly at risk as they transition to
adulthood. When compared to children who were not in foster
care, foster children are more than twice as likely to drop out
of high school. Former foster children also face unemployment
and incarceration at rates far higher than the general
population. The author provides what recent studies reveal
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about these foster youth:
1)Fewer than four in 10 had at least $250 in cash upon
emancipating.
2)Forty-six percent have not completed high school.
3)Sixty-five percent emancipate without a place to live.
4)Forty percent of persons living in homeless shelters are
former foster youth.
5)Foster youth who emancipate from foster care face a
disproportionately higher rate of unemployment; 51% of
emancipated foster youth are unemployed within two-four years
of emancipation.
6)Emancipated foster youth earn an average of $6,000 per year.
7)Over 70% of all state prison inmates have spent time in the
foster care system.
The author's solution, to give these young people a softer
landing and a better chance at a productive life, is to provide
them with federally-funded food stamps for a year.
This bill would require DSS to create a 12-month transitional
food stamp program that these youth enter automatically as they
leave foster care. This bill would require the state to seek
all necessary federal waivers to implement this program. Once
these waivers are secured, the food coupons would be paid for
with 100% federal funds. The federal, state, and county
governments split the administration expenses but, under
provisions in the bill, would be less costly because these youth
would not be subject to costly and time consuming reporting
requirements. At the end of that first year, these young adults
could apply for further Food Stamp benefits if they meet
existing eligibility requirements.
According to Moody's Investor Services, an independent provider
of credit ratings and financial services research, food stamps
have the highest economic multiplier effect out of all
government programs or fiscal policy tools that stimulate the
economy. Moody's finds that for every food stamp dollar spent,
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a $1.74 is generated in economic activity (The USDA finds this
amount to be $1.84).
Additionally, food stamps generate sales tax revenue for county
and the state coffers. To the extent that this bill increases
food stamp participation, the state could expect to receive
additional state GF revenues due to increased taxable purchases
by recipients. Studies show that low-income families such as
food stamp recipients spend approximately 45% of their income on
taxable goods. By providing these families with food stamps,
45% of the money previously used by the family to purchase food
would now be used for purchasing taxable goods.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089
FN: 0001183