BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 893                          HEARING:  5/18/11
          AUTHOR:  Wolk                             FISCAL:  Yes
          VERSION:  5/11/11                         TAX LEVY:  No
          CONSULTANT:  Ewing                        

                 HEALTH AND HUMAN SERVICES SYSTEM IMPROVEMENT 
                    AND ACCOUNTABILITY ACT OF 2011 (URGENCY)
          

          Creates a review and outcome reporting system for health 
          and human service programs.


                           Background and Existing Law
           
          The Health and Human Services Agency administers and 
          oversees health, social services, public assistance, and 
          rehabilitation programs that affect nearly all 
          Californians.  Annual funding for health and human service 
          programs includes $36 billion in state funds, and $38 
          billion in federal funding.  

          The Agency provides leadership and direction to the 
          departments under its jurisdiction, including the:

                 Department of Aging 
                 Department of Alcohol and Drug Programs 
                 Department of Child Support Services 
                 Department of Community Services and Development 
                 Department of Developmental Services 
                 Emergency Medical Services Authority 
                 Department of Health Care Services 
                 Department of Mental Health 
                 Department of Public Health 
                 Department of Rehabilitation 
                 Department of Social Services 
                 Office of Statewide Health Planning and Development 

                 Managed Risk Medical Insurance Board

          The Agency's leadership role includes promoting 
          coordination and service integration, reducing duplication 
          and fragmentation, and ensuring the integrity of health and 
          human service programs.  




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          The Agency or the departments under its jurisdiction 
          monitor compliance with state statutes and funding 
          requirements, review performance, and conduct program 
          evaluations of health and human service programs, many of 
          which are administered by local agencies or community-based 
          organizations.  For example, the Legislature established 
          the California Child and Family Service Review System, 
          requiring the Agency to form a workgroup to identify 
          outcome indicators for California's child welfare system 
          and a process for reviewing the quality of child welfare 
          programs.  The Department of Social Services also must 
          identify and promote the replication of best practices for 
          child welfare services (AB 636, Steinberg, 2001). 

          California's ongoing fiscal crisis has required funding 
          reductions for nearly all health and human services.  In 
          response, the Governor has called for restructuring public 
          safety and health and human service programs, including 
          changes in mental health, substance abuse treatment, child 
          welfare services, and other programs.


          The Governor's realignment proposal draws upon similar, 
          prior efforts.  In 1991, the state adopted major changes in 
          the organization of specific mental health, social service, 
          and health programs.  Those changes shifted program 
          responsibilities from the state to the counties, 
          established new cost-sharing ratios, and provided the 
          counties with a dedicated funding stream for those 
          programs.  Among other reforms, the Governor's proposal 
          calls for reducing the state's role in administering and 
          funding health and related programs while expanding the 
          state's role in providing technical assistance and 
          monitoring outcomes. 


                                   Proposed Law  

          Senate Bill 893 directs the Health and Human Services 
          Agency, by December 1, 2013, in collaboration with 
          specified entities, to design and establish a system for 
          periodically reviewing the performance of the health and 
          human service programs under the jurisdiction of the 
          Agency.  






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          The bill requires the Agency to ensure that the design of 
          the review system recognizes and is coordinated with 
          existing performance review and accountability systems. 

          SB 893 requires the Agency to establish mechanisms for the 
          identification and promotion of best practices in the 
          delivery of health and human services.  

          The bill directs the Agency to draft an information sharing 
          plan to enable the exchange of information and data 
          necessary to evaluate health and human programs and promote 
          the adoption of best practices.  
          SB 893 directs the Agency to provide the Legislature with 
          periodic reports on its progress, including identifying 
          statutory, funding, staffing or other barriers to 
          accomplishing the goals of the bill. 


                               State Revenue Impact
           
          No estimate. 


                                     Comments  

          1.   Purpose of the bill  .  Senate Bill 893 builds upon the 
          outcomes and accountability system for California's Child 
          Welfare System under AB 636 (Steinberg, 2001).  The AB 636 
          system allows the public and policymakers to monitor the 
          Child Welfare System and it provides clear direction to 
          managers and staff on the overarching goals of that system. 
           SB 893 expands that successful model to other health and 
          human service programs.  California's fiscal crisis 
          requires the state to ensure that publicly supported 
          programs are effective and continuously improving through 
          the identification and replication of best practices.  
          Despite progress in some areas, the state does not 
          currently have a strategy for reviewing the quality of 
          public programs, monitoring outcomes or providing the 
          guidance and technical assistance needed to promote the 
          replication of best practices.  SB 893 will equip the 
          Health and Human Services Agency to pursue the role 
          envisioned under the Governor's realignment proposal.

          2.   Before its time  ?  In his January budget proposal, the 
          Governor indicated that he would propose a number of 





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          policy, fiscal, and organizational reforms to support the 
          implementation of his realignment proposal.  It may be 
          premature to pursue SB 893's reforms without a better 
          indication from the Governor how he intends to pursue the 
          monitoring and technical assistance functions included in 
          his realignment proposal.

          3.   One review system or many  ?  The Health and Human 
          Services Agency oversees hundreds of programs and policies. 
           SB 893 envisions a collaborative process to design a 
          review system for most if not all programs under the Agency 
          by December 1, 2013.  The Committee may want to prioritize 
          the design of a review system for those programs that have 
          the greatest impact on the health and welfare of 
          Californians and the state budget.  


                         Support and Opposition  (5/12/11)

           Support  :  Unknown.

           Opposition :  Unknown.