BILL ANALYSIS
AB 719
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CONCURRENCE IN SENATE AMENDMENTS
AB 719 (Bonnie Lowenthal)
As Amended August 19, 2009
Majority vote
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|ASSEMBLY: |75-0 |(June 1, 2009) |SENATE: |22-12|(September 2, |
| | | | | |2009) |
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Original Committee Reference: HUM. S.
SUMMARY : Creates the Transitional Food Stamps for Foster Youth
Demonstration Project (Project). Specifically, this bill :
1)Requires, effective July 1, 2010, that the Department of Social
Services (DSS) propose a Project 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.
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 Project
certification period.
4)Requires DSS to:
a) Seek, not later than March 1, 2010, all necessary federal
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approvals to implement the Project; and, specifies that the
Project only be implemented to the extent that federal
financial participation is available; and,
b) Implement the Project 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.
The Senate amendments , modify the transitional food stamps for
foster youth program into one that will be a demonstration project
contingent upon federal approvals.
AS PASSED BY THE ASSEMBLY, the bill created a Transitional Food
Stamp Program for foster youth and not a demonstration project.
FISCAL EFFECT : According to the Senate Appropriations Committee,
$20,000 in 2009-10, $100,000 in 2010-11, and $46,000 in 2011-12.
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 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
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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 propose a 12-month transitional
food stamp Project that these youth enter automatically as they
leave foster care. This bill would require the state to seek all
necessary federal approvals to implement this program. Once these
approvals 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, 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)
319-2089FN: 0002772