BILL ANALYSIS �
AB 808
Page 1
Date of Hearing: April 5, 2011
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 808 (Skinner) - As Amended: March 30, 2011
SUBJECT : CalFresh: transitional benefits
SUMMARY : Streamlines the re-application process for former
California Work Opportunity and Responsibility to Kids program
(CalWORKs) recipients who need to continue their CalFresh
(formerly known as Food Stamps) benefits when their CalFresh
transitional benefits are about to expire. Specifically, this
bill :
1)Requires the county welfare department to provide each
household receiving CalFresh transitional benefits with a
notice of recertification in order to continue receiving
non-transitional CalFresh benefits.
2)Requires that the recertification notice to specify an
appointment date and time for the last month that a recipient
receives transitional CalFresh benefits; and further specifies
that the recertification process be designed in such a way
that it does not require this group to take time off from work
or travel to the county welfare office.
3)Finds and declares that 40% of CalWORKs recipients who receive
transitional CalFresh benefits reapply for non-transitional
CalFresh benefits.
EXISTING LAW establishes the Transitional Food Stamps program
which provides five months of CalFresh benefits to CalWORKs
recipients who have exited the CalWORKs program.
FISCAL EFFECT : Unknown
COMMENTS : AB 231 (Steinberg), Chapter 743, Statutes of 2003
established the Transitional Food Stamp Program to improve
nutritional outcomes and increase Food Stamp participation.
Transitional Food Stamps or as it is now known, transitional
CalFresh benefits, was designed to smooth the transition from
welfare to work, recognizing that when families leave cash aid,
they often forego other benefits such as CalFresh for which they
are eligible. Transitional CalFresh benefits are provided to
AB 808
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families for five months upon exiting the CalWORKs program.
According to the author's office, approximately 40% of CalWORKs
families have to reapply to the CalFresh program to continue
their benefits because their five months of transitional
benefits have ended. The reapplication process can be lengthy
and may include up to three visits to the county welfare office
where a finger image, photo, interview, and completed
application are processed. For low-income families,
transportation is often cited as one of the largest barriers not
only to finding and maintaining a job but to make the necessary
visits that are required in order to complete a CalFresh
application. Moreover, the time off of work is also difficult
to secure and may result in lost wages. According to the
sponsor, the reapplication process can take up to 45 days and
become a real hardship on a family transitioning off of aid and
still trying to feed their family. As well, according to the
Department of Social Services, an initial application in total
costs $51, an amount they may be reduced by the policy change in
this bill. The author also makes the point that, "with major
cuts?for CalWORKs we are sure to see an increase in the uptake
of transitional CalFresh benefits." This is an additional
incentive to streamline this process for the reasons stated
above.
AB 808 would, in lieu of a reapplication process, instead
require that the counties automatically provide a
recertification notice to recipients who are in their last month
of transitional CalFresh benefits, as specified.
Positive fiscal effect of food stamp benefits: According to
Moody's Investor Services, an independent provider of credit
ratings and financial services research, CalFresh benefits have
the highest economic multiplier effect out of all government
programs or fiscal policy tools that stimulate the economy.
Moody's finds that for every CalFresh dollar spent, $1.74 is
generated in economic activity. (The USDA finds this amount to
be $1.84). Additionally, these benefits generate sales tax
revenue for county and the state coffers. To the extent that
this bill increases CalFresh participation, the state could
expect to receive additional state General Fund revenues due to
increased taxable purchases by recipients. This is possible
because studies show that low-income families such as CalFresh
recipients spend approximately 45% of their income on taxable
goods. By providing these families with CalFresh benefits, 45%
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of the money previously used by the family to purchase food
would now be used for purchasing taxable goods.
REGISTERED SUPPORT / OPPOSITION :
Support
Coalition of California Welfare Rights Organizations (CCWRO)
California Communities United Institute (CalComUI)
Western Center on Law & Poverty
Opposition
None on file.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089