BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1259
                                                                  Page  1

          Date of Hearing:   May 6, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 1259 (Arambula) - As Amended:  April 13, 2009 

          Policy Committee:                              Aging &  
          LTCVote:4-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows an Area Agency on Aging (AAA) to carry over,  
          without regard to fiscal year, up to 5% of its annual total  
          baseline allocation under Titles III (nutrition) and VII (elder  
          abuse prevention), of the federal Older Americans Act (OAA).  
          Prohibits an AAA from using the carried over funds to expand  
          baseline services and specifies that carryover funds may only be  
          used to fund the purchase of equipment, home and community-based  
          projects approved by the California Department of Aging (CDA),  
          or pilot projects approved by CDA.

           FISCAL EFFECT  

          Annual federal funding rollovers by 33 AAA of up to $5 million  
          in unspent funds. In 2007-08 AAA received $104 million in  
          baseline federal funding. Under current regulations promulgated  
          by CDA, AAA are authorized to rollover up to 5% within six  
          specific allocations. This bill allows AAA to rollover funding  
          and to spend more broadly than under current regulations. 

           COMMENTS  

           1)Rationale  . This bill allows AAA to carry-over up to 5% of  
            their baseline federal allocation. Under current CDA  
            regulations promulgated two years ago, AAA are limited to  
            rollovers within program category. This bill provide more  
            flexibility in the use of unspent funds at the end of the  
            state fiscal year and partially accounts for the differences  
            in the timing of the state and federal budget years.    

           2)Background  . The 33 AAAs coordinate an array of services for  
            seniors and adults with disabilities at the community level  
            and serve as a focal point for local aging programs. The AAA  






                                                                  AB 1259
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            provide a range of services, including supportive services,  
            nutrition programs, employment services, and preventive health  
            services. In addition, CDA administers a range of programs,  
            supported by state and federal funds that provide  
            non-institutional services for older Californians and  
            functionally impaired adults, including the Multipurpose  
            Senior Services Program, Linkages, Adult Day Health Care, and  
            the Alzheimer's Day Care Resource Centers. 
           
          3)Concerns  . The California Association of Area Agencies on Aging  
            (C4A), the statewide association of AAA, opposes this bill.  
            C4A indicates this bill conflicts with recently adopted  
            regulations that ensure federal funds are spent in accordance  
            with state and federal law. C4A indicates this bill is  
            unnecessary because the current regulations provide enough  
            flexibility for the rollover of funding. 
           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081