BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           383 (Liu)
          
          Hearing Date:  4/27/2009        Amended: 4/16/2009
          Consultant: Katie Johnson       Policy Vote: Human Services 3-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  SB 383 would require the Department of  
          Developmental Services (DDS) to partner with a regional center  
          to create a 2-year Autism Spectrum Disorders (ASD) Early  
          Screening, Intervention, and Treatment Pilot Program that would  
          establish best practices for early screening, diagnosis,  
          referral, and treatment for children with ASD.
          _________________________________________________________________ 
          __
                            Fiscal Impact (in thousands)
           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          DDS Pilot Program                              $550               
            $1,100        $1,100   Federal
                                              
          DDS Pilot Program Report $0         $0                 up to  
          $100          Federal/
                                                                 Special/
                                                                 Private
          ________________________________________________________________
          STAFF COMMENTS:  This bill meets the criteria for referral to  
          the Suspense File.

          Existing law, the Lanterman Developmental Disabilities Services  
          Act, requires the DDS to contract with regional centers for the  
          provision of various services and supports to persons with  
          developmental disabilities, including ASD.

          Existing law, the California Early Start Intervention Services  
          Act, otherwise known as the Early Start program, provides early  
          intervention services for infants and toddlers who have or are  
          at risk for disabilities.

          This bill is nearly identical to SB 527 (Steinberg, 2008). The  
          substantial difference between the two bills is that in SB 527,  
          the bill stipulated that the pilot program would be funded by  
          California Children and Families Commission funds, whereas this  
          bill would require the DDS to seek federal funding for the pilot  










          program. SB 527 was vetoed by the Governor with the veto message  
          stating, "...the provisions of this bill can be accomplished  
          administratively with funding from private, non-state general  
          fund sources. In addition, given our state's ongoing fiscal  
          challenges, it is not the time to be enacting new programs in  
          statute. I would encourage the author and sponsors to work  
          directly with entities willing to fund this type of program." It  
          appears that this bill does not address SB 527's veto message.

          Staff notes that this bill is similar to the current duties and  
          programmatic activities of the DDS. In addition, the DDS plans  
          to publish updated guidelines on intervention and treatment of  
          children with ASD in the summer of 2009. As part of the  
          2009-2010 Budget Act and the Governor's Special Session, the DDS  
          was required to reduce its budget by $100 million General Fund,  
          to cut regional centers' expenditures for consumer services by 3  
          percent for a savings of about $40.4 million ($24.1 million  
          General Fund), and to 
          Page 2
          SB 383 (Liu)

          cut regional centers' operations budget by 3 percent for a  
          savings of $6.6 million ($4.6 General Fund). Due to limited  
          funding, efforts should be made to avoid a duplication of duties  
          among current DDS services and those provided by this pilot  
          program.

          This bill would require DDS to partner with one or more regional  
          centers to implement a two-year pilot program, in at least three  
          geographic areas around the state with the goals of 1)  
          identifying solutions to improve early developmental screening  
          protocols and coordination of referral, diagnostic, and  
          treatment for services for children with ASD between the ages of  
          birth and 5 years, and 2) developing best practices for early  
          identification, effective referral, and coordinated follow-up  
          care for children with ASD or other developmental delays with a  
          focus on culturally, linguistically, and geographically diverse  
          or underserved populations.

          This bill would provide that the DDS could consult with a  
          variety of national, state, and community stakeholders to  
          achieve the program goals and to share information, to build  
          upon the work of recent recommendations and published models,  
          and to avoid duplication of efforts.

          This bill would also permit the DDS, in consultation with the  










          Department of Public Health (DPH) and the Department of Health  
          Care Services (DHCS), to test a medical home model and the use  
          of adequate payment and reimbursement strategies that would  
          facilitate and provide incentives for routine screening and  
          collaborative care. If the DDS were to exercise this option when  
          implementing the pilot program, there could be significant costs  
          of a few million dollars to the DDS, the DPH, and the DHCS. For  
          example, approximately 300 children, on average, aged 0 - 4 are  
          served at each regional center. For the purposes of this  
          analysis, if it were to cost $5,000 per child to test this  
          medical home model and implement these payment and reimbursement  
          strategies at the 3 pilot project regional centers, it could  
          cost $4.5 million annually. 

          This bill would require the DDS to submit a report on the pilot  
          program, as specified, to the Legislature and the Governor no  
          later than July 1, 2012, and would require that the report would  
          be funded not through the state General Fund, but through  
          federal, other state, or private funds. The cost of the report  
          is unknown, but could constitute General Fund pressure of at  
          least $100,000 if the non-General Fund moneys were unavailable  
          upon the passage of this bill.
           
          This bill would require the DDS to seek federal funding to  
          provide for the pilot program and would stipulate that General  
          Fund moneys may not be used to implement this bill. If federal  
          funding were unavailable, DDS would be unable to establish this  
          pilot program.

          The total cost of the pilot program could exceed $1.1 million  
          annually in federal funds. If this pilot program were to be  
          expanded statewide to all 21 regional centers at a cost of  
          $150,000 per site, the costs are estimated to be at least $3  
          million annually. Existing federal law, the American  
          Reinvestment and Recovery Act (ARRA), provides a total of $1.1  
          billion for an expansion of the Early Head Start Program in the  
          form of competitive grants. These grants may be a possible  
          funding source for this pilot program.