BILL ANALYSIS
AB 2114
Page 1
Date of Hearing: April 6, 2010
ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
Mariko Yamada, Chair
AB 2114 (Beall) - As Amended: March 18, 2010
SUBJECT : Aging: Elder Economic Security Standard Index.
SUMMARY : Requires the California Department of Aging (CDA) and
Area Agencies on Aging (AAAs) to utilize the Elder Economic
Security Standard Index (Elder Index) in their service planning.
Specifically, this bill :
1)Defines the Elder Index as an index that quantifies the costs
that elders face in meeting their basic needs, including, but
not limited to, food, shelter, health care, transportation,
utilities, and essential household items, in the private
market.
2)Specifies that the Elder Index is derived by applying the
existing publicly available methodology, developed by Wider
Opportunities for Women and the Gerontology Institute at the
University of Massachusetts, Boston, to publicly available
data sources on the cost to live in each county of the state.
3)Requires CDA to report the Elder Index data for each service
area in its State Plan if the Elder Index is updated and made
available to the department.
4)Requires each Area Plan developed by an AAA to use the Elder
Index and specify the costs of meeting basic needs for elders
in each planning and service area and identify which elders
are living at or below the Elder Index if the Elder Index is
updated and made available to the AAA.
5)Requires AAAs to use the Elder Index to track the progress of
participants in the state-administered Senior and Community
Service Employment Program (SCSEP) if the Elder Index is
updated and made available to the AAA.
6)Specifies that nothing in this bill shall be construed to
mandate changes in the current funding allocations to AAAs or,
based on the use of the Elder Index, affect means-tested
programs administered through the Mello-Granlund Older
Californians Act.
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EXISTING LAW
1)Establishes the federal Older Americans Act (OAA) which
provides a national network of state units on aging and AAAs
to deliver home and community-based programs for older adults.
Programs include nutrition, transportation, information and
assistance, elder abuse prevention, and caregiver support.
2)Establishes the Older Californians Act which provides
state-funded programs and services for older adults and people
with disabilities.
3)Establishes CDA as the state unit on aging to administer a
broad range of home and community-based programs. The
department's mission is to provide leadership to the AAAs in
developing systems of home and community-based services that
maintain individuals in their own homes or least restrictive
homelike environments.
4)Requires CDA to develop minimum standards for service delivery
to ensure that programs meet consumer needs, operate in a
cost-effective manner, and preserve the independence and
dignity of aging Californians.
5)Establishes the AAAs as the entities that provide for and/or
deliver services under the OAA, the Older Californians Act,
and other funding sources at the local level.
6)Requires AAAs to conduct regular needs assessments in their
planning and service area to document the service needs of
older adults and adults with disabilities.
7)Requires each AAA to develop and submit to CDA an Area Plan
every four years. Each plan must include the available data
and population trends, assess the community's need for
services, identify sources of funding for those services, and
develop and implement a plan for the delivery of those
services based on the community's needs.
8)Specifies that in fulfilling their mission, AAAs shall build
upon the resources unique to each community and be guided by a
description of a community-based system that includes the
assurance that all services are readily accessible to all
older adults, involves a collaborative decision making
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process, and offers special help or targeted resources for the
most vulnerable older individuals, those in danger of losing
their independence.
9)Requires CDA to develop a State Plan on Aging every four years
based upon the local area plans. The State Plan is submitted
to the Administration on Aging at the federal level.
10)Establishes the Federal Poverty Guideline (FPG) issued each
year in the Federal Register by the Department of Health and
Human Services for use in determining financial eligibility
for certain federal programs.
FISCAL EFFECT : Unknown.
COMMENTS :
California has 33 AAAs that provide a wide range of services
designed to keep older adults and adults with disabilities
independent and in their own homes and communities for as long
as possible. AAAs serve as the focal point for local aging
issues and concerns. The services are funded through the OAA,
the Older Californians Act, local entities, and grants.
Planning for Aging Services
To ensure that programs and services funded by the AAA
adequately serve the older adults within each community, AAAs
are required to conduct a needs assessment every four years to
document the service needs of community residents and any gaps
in the service network. The needs assessment process typically
includes a community-wide survey, community meetings, and
information received from stakeholders and key informants.
California Code of Regulations (Title 22, Division 1.8, Chapter
3, Article 3) requires that each needs assessment include all of
the following: the target populations, the types of existing
and potential needs of older individuals in the community, the
services or resources that currently are available, as well as
any constraints (waiting lists, geographic limitations,
quality), an estimate of unmet needs or barriers to access,
demographic information, and data from other agencies. The
information received through the needs assessment process guides
the AAA in identifying the service priorities for the Area Plan.
Every four years, CDA is required by federal law to submit a
State Plan on Aging to the federal Administration on Aging.
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When approved, CDA receives federal funds to administer the
State Plan. Beyond the minimum required information,
California's 2009-2013 State Plan on Aging addresses key
socio-demographic factors that will shape funding needs and
priorities, unmet needs and promising practices identified by
CDA and the AAAs, and CDA's objectives in working with the AAAs
to provide cost-effective, high quality services to California's
Older adults and their informal caregivers.
The 2009-2013 State Plan on Aging states that the number of
older Californians at both ends of the income scale is growing,
creating two very different groups: persons with annual incomes
over $50,000 (45 percent) and persons with incomes below $15,000
(16 percent), with a diverse middle class in between. The
highest proportion of older adults with income below 200 percent
of the FPG is in Imperial County, followed by several counties
in Northern California and the Central Valley, where
approximately 40 percent of the older population is in this
income group. Eleven percent of the population age 65 and over
has income below the FPG, and another 21 percent has income
between 100-199 percent of the FPG. Persons in this latter
group have income too high to make them eligible for many public
assistance programs, yet often do not have resources sufficient
to meet their most basic needs.
Recent research from the University of California, Los Angeles
and the Insight Center for Community Economic Development has
shown that 495,000 older Californians living alone in 2007 could
not make ends meet - lacking sufficient income to pay for even a
minimum level of housing, food, health care, transportation and
other basic expenses.
Senior Community Service Employment Program
According to the CDA web site, The SCSEP provides part-time
work-based training opportunities at local community service
agencies for older workers who have poor employment prospects
and assists with the transition of individuals to private or
other employment opportunities in the community. The program
provides a variety of supportive services to the individual such
as personal and job-related counseling, job training, and job
referral.
The work-based training is an integral part of the program.
Individuals may receive job-related training prior to, and as
preparation for their community service assignment, and train
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for an average 20 hours per week. After a prescribed period of
on-the-job training, individuals are either transitioned into
unsubsidized employment or rotated to other training positions
in the community to further upgrade their skills and assist in
finding unsubsidized employment.
Individuals who participate in the program must be residents of
California, be at least 55 years of age, and have an income that
does not exceed 125 percent of the federal poverty level.
($1,083 per month/$13,000 annual). Some income sources may be
excludable, and other factors may effect an individual's
eligibility.
The SCSEP is available through 17 of the 33 AAAs and eight
national organizations. While this bill requires AAAs to use
the Elder Index to track participant progress and outcomes, it
does not change eligibility requirements for the SCSEP. In
addition, the requirement for using the Elder Index to track
progress only applies to the AAA-administered SCSEPs and not to
those programs operated by the national organizations.
Poverty Guidelines and the Elder Index
Since 1965, there have been two slightly different versions of
the federal poverty measure - the FPG and the federal poverty
thresholds. The poverty thresholds are the original version of
the federal poverty measure and are updated by the Census Bureau
each year. The thresholds are used primarily for statistical
purposes. The FPG are issued each year in the Federal Register
and are a simplification of the poverty thresholds. They are
used for administrative purposes, including determining
financial eligibility for certain federal programs. The FPG are
sometimes loosely referred to as the federal poverty level.
Proponents argue that policymakers struggle to create effective
policies to promote economic security and eradicate poverty
because they do not have an accurate picture of what it really
takes to make ends meet in today's economy. Policymakers
typically measure poverty and determine benefits eligibility by
using the FPG, a 1963 measure based solely on the cost of a
bare-bones food diet. Although the FPG is updated annually
using the Consumer Price Index, the current FPG is the same
dollar amount ($10,830 for an individual living alone) whether
one lives in a high cost market like urban Los Angeles, or a low
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cost region like rural Arkansas.
In response to the shortcomings of the FPG, The Insight Center
for Community Economic Development led the effort to create the
California Elder Index which sets a new benchmark of income
adequacy for older adults. According to proponents, it provides
the true cost of meeting basic needs and maintaining
independence in the community. The Elder Index methodology uses
national and state data sources, including the U.S. Census
Bureau and the U.S. Department of Housing and Urban Development,
and reveals that in California, the FPG covers less than half of
the basic costs experienced by older adults.
While California's most expensive counties to live in tend to be
urban and coastal, the Elder Index and related research show
that older adults in rural counties face significant challenges
as well. For example, Imperial County has the highest
percentage of single older adults with incomes below the Elder
Index benchmark (67.1 percent). San Francisco County has the
next highest percentage with 61.3 percent of older adults living
alone with incomes below the Elder Index.
Impact of using the Elder Index on Program Eligibility and
Funding
Programs and services administered by CDA and the AAAs do not
require means-testing for eligibility, however, the OAA requires
that preference be given to older adults with the greatest
economic or social needs, with particular attention given to
low-income minority individuals. To meet the federal
requirements, CDA and AAAs track data, including poverty data,
on the number of older adults and people with disabilities
within a given PSA, but enrollment in programs is not restricted
to those who fall below a certain threshold, with the exception
of programs that use Medi-Cal funds. This bill will not change
eligibility for any of the programs administered by CDA or the
AAAs.
Arguments in Support
The California Association of Area Agencies on Aging, AARP,
Aging Services of California, the Older Women's League of
California, and a host of other organizations, contend that the
Elder Index sets a new benchmark of income adequacy for older
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adults. It provides the true cost of meeting basic needs and
maintaining independence in the community. By
institutionalizing this tool, AB 2114 will empower policymakers
to allocate limited resources more effectively, and prepare for
the needs of seniors and aging baby boomers.
According to the author, the state is not well-prepared for the
senior tsunami of baby boomers that are now retiring. In fact,
California is home to one of the highest number of seniors in
the nation at almost 6.5 million-that is almost 20 percent of
the state's population. . Planning better for our seniors is
one of the most significant and responsible improvements we can
make to ensure the dignity of our parents. Utilizing the Elder
Index in our planning documents will ensure that our measurement
of their needs will be accurate and consistent across the state.
Related Legislation
AB 324 (Beall) was substantially similar to this bill and
required CDA and AAAs to utilize the Elder Index in their
service planning. AB 324 was vetoed by the Governor. The
Governor's veto message stated:
"While I appreciate the author and sponsors' interest in better
refining their
planning and service levels for the seniors in their
communities, this bill is
unnecessary. Local agencies can already use the specific index
defined by
this bill in their planning efforts. Furthermore, this bill
would create
General Fund cost pressures at a time when there is no ability
to increase
service levels."
REGISTERED SUPPORT / OPPOSITION :
Support
Insight Center for Community Economic Development - Sponsor
AARP
Aging Services of California
Aging Services Collaborative of Santa Clara County
At Your Home Familycare
California Advocates for Nursing Home Reform (CANHR)
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California Association of Area Agencies on Aging (C4A)
California Commission on the Status of Women
California Communities United Institute
California Health Collaborative
California Senior Leaders Alliance
California Senior Legislature
California Women's Agenda
Catholic Charities of California United
Catholic Charities of Santa Clara County
Center for Technology and Aging
Chicano Federation of San Diego County, Inc.
Community Living Campaign
Congress of California Seniors
Contra Costa County Board of Supervisors
County Welfare Directors Association (CWDA)
ElderHelp of San Diego
Experience Corps San Francisco
Gray Panthers Sacramento
Human Investment Project Housing
In-Home Supportive Services Consortium of San Francisco
Islamic Shura Council of Southern California
JERICHO, A Voice for Justice
Jewish Family Services of Los Angeles
Lavender Seniors of the East Bay
Meals-on-Wheels Greater San Diego, Inc.
National Association of Social Workers - California Chapter
National Senior Citizens Law Center
Neighborhood House Association
ONEgeneration
Openhouse
Older Women's League of California (OWL-CA)
Partners in Care Foundation
Professional Fiduciary Association of California (PFAC)
Rehabilitation Services of Northern California (RSNC)
San Diego East County Action Network
San Francisco Gray Panthers
Senior Community Centers of San Diego
Seniors Council
Senior Services Coalition of Alameda
South Asian Network, Inc.
St. Mary's Center
St. Paul's Senior Home & Services
The Health Trust
UC Berkeley's Center on Aging
Wider Opportunities for Women
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Women's Foundation of California
Women's Initiative
36 individuals
Opposition
None on file.
Analysis Prepared by : Allison Ruff / AGING & L.T.C. / (916)
319-3990