BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
719 (Lowenthal)
Hearing Date: 08/27/2009 Amended: 08/19/2009
Consultant: Jacqueline Wong-HernandezPolicy Vote: Human
Services 4-1
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BILL SUMMARY: AB 719 creates a transitional food stamps
"demonstration project" for foster youth who age out of the
foster care system, effective July 1, 2010. Specifically, this
bill:
1)Provides 12-months of federal food stamps to independent
foster youth who are ineligible for CalWORKs or SSI benefits,
without regard to their income or resources.
2)Specifies that a foster youth will receive the maximum amount
of federal food stamps available for a household of one during
the initial certification period.
3)Requires the Department of Social Services (DSS) to seek
necessary federal approval and specifies that this legislation
will only be implemented if "federal financial participation"
is available.
4)Requires DSS to implement the provisions of this legislation
through an all county letter (ACL) or similar instructions
from the director and requires the adoption of regulations, as
necessary, no later than July 1, 2010.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Caseload increase admin (State portion) $80
$26 General
DSS workload $20
$20 $20 General
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STAFF COMMENTS: SUSPENSE FILE.
This bill requires DSS to submit a demonstration project
proposal to the federal government to implement a new policy
that would otherwise be in violation of federal law. The
increased workload to submit the waiver, as well as to establish
the program and new aid code would be mandated by this bill,
before receiving federal approval to implement.
If federal approval is granted, the food stamps will be
federally funded. The administrative cost of food stamps is
borne by counties, federal government, and the state. The GF
portion is 35% of the county administrative costs. This bill
would add approximately 4,200 individuals to the caseload. In
2007-08, 18.5% of foster youth who aged out of the system
received food stamps. 20% of the remaining population was
ineligible due to their status as students. (It is unclear if
the proscribed demonstration project would apply to them, since
it seeks special exemptions from federal law).
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AB 719 (Lowenthal)
There are approximately 2,600 remaining foster youth who would
become eligible for food stamps. Additional costs to the state
come from DSS workload increase, at a time when the department
is subject to numerous budget cuts and an increased caseload.
By increasing eligibility, more than $6 million of
federally-funded food stamps would be received. To the extent
that these former foster youth are spending their money on
non-food items because they are receiving food stamps, the state
would receive some amount of offsetting revenue from increased
sales tax.