BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1177 (Fong)
          
          Hearing Date:  08/12/2010           Amended: 03/22/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Human Serv.   
          4-1, T&H: 6-4
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1177 establishes the Interagency Council on  
          Homelessness (ICH) and prescribes the membership and duties of  
          the ICH. Specifically, this bill:

          1.Requires the Governor to designate a lead agency or member of  
            the Governor's staff to direct the work of the ICH.
          2.Designates 13 ICH seats to be filled by representatives of  
            specified agencies, departments and non-governmental groups,  
            and appointments.
          3.Requires ICH to meet at least quarterly, and provides that  
            members shall serve without compensation, with certain  
            exceptions if private funds are available.
          4.Requires ICH to provide an updated state plan to end  
            homelessness every two years and submit this plan to the  
            Legislature, as specified.
          5.Provides that ICH "may", but is not required to: (a) Act as  
            the lead for coordinating and planning the state's response to  
            homelessness, including coordinating federal funding; (b)  
            Discuss potential mechanisms for streamlining the  
            administration of programs across agencies; (c) Discuss  
            potential mechanisms for streamlining funding of homelessness  
            programs to leverage existing resources effectively; (d)  
            Solicit input from stakeholders, the business community,  
            concerned public, and governmental agencies; (e) Identify  
            other states' best practices in combating homelessness; and  
            (f) identify private and public funding partnerships.
          6.Requires ICH to operate within the budget of each department  
            and agency represented. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions                       2009-10           2010-11       
             2011-12           Fund
           Create/operate new council                     $125               
          $250             $250           General











          State plan to reduce homelessness      Likely substantial future  
          cost pressure    General
                                                                          
          to the extent ICH completes this work    Federal*

          *Some programs/activities that address homelessness are eligible  
          for federal funding.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          This bill creates a new Interagency Council on Homelessness  
          (ICH) of at least 13 members to address the issue of  
          homelessness in the California. This bill requires the Governor  
          to designate a lead agency or member of the Governor's staff to  
          direct the work of the ICH. The costs reflected for creation and  
          operation of the council are for one full-time director position  
          and one part-time administrative position. This bill authorizes  
          the Governor to select the lead agency responsible for creating  
          and managing ICH. 

          Page 2
          AB 1177 (Fong)

          Without knowing which agency will be tasked with this project,  
          it is impossible to know the level of workload that can be  
          absorbed, and the number of (if any) new employees 
          would be needed. Considering state departments' budget  
          reductions and mandatory furloughs, it is extremely unlikely  
          that establishing an ICH could be completed within the existing  
          resources of any probable department. The workload on other (non  
          lead agency) participants, however, would likely be minor. It is  
          likely that designated positions will be necessary.

          This bill requires ICH to update a state plan to reduce or end  
          homelessness in the state. This plan would likely involve  
          increased preventative and remedial services, new protocols and  
          requisite training of agencies, and possibly new mandates on  
          local agencies (which often confront homelessness most  
          directly). There would be substantial cost pressure to adopt the  
          plan.

          To the extent that this bill results in innovative and effective  
          services provided to reduce homelessness, there will likely be  










          significant savings to local governments and law enforcement  
          agencies. Depending on the nature of these services, there may  
          be significant savings to the state in costs associated with  
          crime and social services in the future.