BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 823 (Dickinson)
          
          Hearing Date: 08/15/2011        Amended: 08/15/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Human Services 
          4-3
          _________________________________________________________________
          ____

          BILL SUMMARY: This bill would establish the Children's Cabinet 
          of California to serve, until January 1, 2019, as an advisory 
          body responsible for improving the collaboration among agencies 
          that provide services to the children and youth of the state, as 
          specified. This bill would provide that the cabinet shall be 
          comprised of, among others, the Superintendent of Public 
          Instruction (SPI), the Secretary of California Health and Human 
          Services, the Chief Justice of California, or his or her 
          designee, and the heads of various specified state agencies. The 
          bill would require the cabinet to provide recommendations to the 
          Governor and the Legislature every odd-numbered year. This bill 
          would become operative upon a determination by the Department of 
          Finance (DOF) that sufficient federal or private funds are 
          available. This bill makes various legislative findings and 
          declarations.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Children's Cabinet                     Substantial on-going cost 
          pressure        Federal/General

          Cabinet staffing                 Low to mid-hundreds of 
          thousands annually  Federal/General

          BSA audit                                    Potentially 
          significant cost pressure           General
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 









          AB 823 (Dickinson)
          Page 1


          This bill establishes the Children's Cabinet (Cabinet) within 
          state government serving as an advisory body to improve 
          collaboration among agencies serving children and youth in 
          California. It provides that the Cabinet be co-chaired by the 
          SPI and the secretary of the Health and Human Services Agency, 
          and consist of 13 other members, including: the chief justice 
          (or designee), the secretary of the Department of Corrections 
          and Rehabilitation (or designee), the directors of the 
          departments of social services, health care services, public 
          health, mental health, alcohol and drug programs, developmental 
          services, and child support services, two members of the 
          Assembly (appointed by the Speaker) and two members of the 
          Senate (appointed by the President pro Tempore), as well as 
          additional members that the Governor may choose to appoint. None 
          of the members will receive compensation, but the bill 
          explicitly states that they may be reimbursed for "travel and 
          related expenses."

          Beyond the basic parameters (and within its mission), the 
          Cabinet's activities will be largely determined by the 
          co-chairs. The bill grants the co-chairs authority call meetings 
          more frequently than quarterly, to establish committees within 
          the Cabinet to further its work (and committee members may also 
          be reimbursed for travel and related expenses), and identify 
          Cabinet goals and benchmarks. This bill specifies that the 
          Cabinet cannot be established until the DOF determines that 
          enough federal or private funds have been received to fully 
          support the Cabinet's activities. With the authority for 
          determining the scope of those activities given to the co-chairs 
          of a not-yet-established Cabinet, it is not clear how the DOF 
          would know what would be a sufficient amount of federal or 
          private funds to fully cover the Cabinet's expenses. Children's 
          cabinets in other states operate differently from one another in 
          terms of scope of activities and staffing models. 

          This bill is likely to result in General Fund pressure to begin 
          activities related to the Cabinet before federal or private 
          funding is received; otherwise, it will be very difficult for 
          the DOF to decide what constitutes a sufficient level of 
          funding. Moreover, because the bill does not specify which 
          private funds it expects to use, nor that they be designated 
          specifically for a children's cabinet, it creates cost pressure 
          to use federal funds that could be used for that purpose or 
          could have been used for other qualifying purposes toward this 








          AB 823 (Dickinson)
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          new advisory body. For example, West Virginia's Children's 
          Cabinet uses $1.2 million in Medicaid administration funds and 
          Community Based Family Resource and Support Program (federal 
          Title II funds) as part of its $3.8 million annual operating 
          budget.  

          The responsibility for staffing the cabinet and preparing 
          required reports will be shared by the Cabinet co-chairs, "to 
          the extent that federal or private funds are made available for 
          this purpose". According to the National Governors' Association 
          Center for Best Practices' publication, A Governor's Guide to 
          Children's Cabinets, it is important to have dedicated staff for 
          the Cabinet. Staffing models differ by state, as do the size of 
          the cabinet membership. For example, Louisiana uses a total 2 
          dedicated positions which are funded by the Governor's office, 
          while West Virginia has 2 senior staff and 4 support positions 
          funded by a mix of state and federal funds. Staffing costs would 
          be in the hundreds of thousands, depending on the staffing model 
          and scope of activities. Costs would likely vary depending on 
          the number of committees created and public meetings held, as 
          determined by the co-chairs.

          This bill permits the Bureau of State Audits (BSA) to conduct a 
          performance audit of the cabinet, reporting findings by January 
          1, 2018. This authority creates cost pressure for the BSA to 
          conduct such as audit, especially because this will be a 
          sizeable new program created in difficult fiscal times.