BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 138
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 138 (Beall)
          As Amended  August 15, 2011
          Majority vote
           
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          |ASSEMBLY:  |51-27|(May 31, 2011)  |SENATE: |23-14|(August 31,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    AGING & L.T.C.  

           SUMMARY  :  Requires the California Department of Aging (CDA) and 
          Area Agencies on
          Aging (AAA's) to utilize the Elder Economic Security Standard 
          Index (Elder Index), as defined, to specify the costs in the 
          private market of meeting the basic needs of elders in each 
          planning and service area, and identifies the number, or 
          percentage, of elders who are living at or below the Elder 
          Index.  

           The Senate amendments  

           1)Remove the requirement that directs the CDA use the Elder 
            Index to track the progress of participants in the 
            state-administered Senior and Community Service Employment 
            Program (SCSEP).

          2)Remove the requirement that CDA and AAA's report the number of 
            elders living below the Elder Index security threshold.

          3)Add intent language that CDA and AAA's utilize the Elder Index 
            as a planning tool in the development of local area plans, and 
            as a guide in allocating existing resources that support 
            senior services in communities.

          4)Require the CDA and AAA's to utilize the Elder Index as a 
            reference when making decisions about allocating existing 
            resources, as long as the Elder Index is updated using county 
            specific information, and made available to AAA's in a format 
            that shows each county's data.

           EXISTING LAW  : 

          1)Establishes the federal Older Americans Act (OAA) which 








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            provides a national network of state units on aging and AAA's 
            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 
            living with disabilities.  

          3)Requires AAA's to conduct regular needs assessments in their 
            planning and service area to document the service needs of 
            older adults and adults with disabilities.  

           AS PASSED BY THE ASSEMBLY  , in addition to current language, this 
          bill required the CDA to use the Elder Index to track the 
          progress of participants in the state-administered Senior and 
          Community Service Employment Program (SCSEP), as well as report 
          the number of seniors living below the index threshold.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, although this bill states that the Elder Index should 
          be used by CDA and AAAs to guide decisions related to services 
          within existing resources, the Index currently available online 
          shows that the federal poverty level (FPL), as of 2007, covers 
          less than half of the basic costs experienced by older 
          California adults and that that gap is roughly $10,000 per 
          elder.  Some believe that by referencing the Elder Index and 
          identifying the number of elders living at or below the Index, 
          this bill would imply that elder Californians are in need of 
          additional resources and programs. Thus, there could be unknown, 
          but significant, cost pressure.  There are over 4.4 million 
          Californians aged 60 and up, of which about 10% live below the 
          poverty line. 

           COMMENTS  :  California has 33 AAA's that contract and support 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.  To ensure that programs 
          and services funded by the AAA adequately serve the older adults 
          within each community, AAA's 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, 
          focusing on seniors in the "greatest social and economic need." 
          The needs assessment process typically includes a community-wide 
          survey, community meetings, and information received from 








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          stakeholders and key informants.  

           Federal poverty guidelines (FPG) 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 is 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 is 
          sometimes loosely referred to as the federal poverty level.  For 
          2011, an individual with an income below $10,890 is considered 
          impoverished using the FPG.  


          Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. / 
          (916) 319-3990


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