BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AJR 29
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          Date of Hearing:  February 18, 2014

                   ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
                                Mariko Yamada, Chair
                   AJR 29 (Brown) - As Introduced:  August 5, 2013
           
          SUBJECT  :  Senior Nutritional Services and Programs: funding.

           SUMMARY  :  Urges the Congress of the United States (Congress) to  
          restore federal funding cuts, due to sequestration, to senior  
          nutrition programs, and to declare senior nutrition services and  
          programs exempt from further budget cuts.  Specifically,  this  
          resolution  makes the following legislative findings and  
          declarations:

          1)In 2011, the one-hundred and twelfth Congress adopted and the  
            President signed, the Budget Control Act of 2011 (P.L. 112-25;  
            the Act), as both a compromise and an incentive to address  
            federal budgetary principles.

          2)The Act included provisions to either adopt a 10-year deficit  
            reduction plan, or face automatic, across-the-board reductions  
            in mandatory and discretionary funding in the amount of $1.2  
            trillion during the period between 2013 and 2021, inclusive.

          3)The automated sequester cuts were then delayed two months by  
            the American Taxpayer Relief Act of 2012, which had the effect  
            of amplifying initial cuts during the first fiscal year of the  
            reduction, by delaying the implementation by two months, from  
            January 1, 2013, to March 1, 2013.

          4)That every federal program is cut equally under sequester,  
            including programs authorized by the Older Americans act of  
            1965 (OAA) and administered by the Administration for  
            Community Living which also oversees elder abuse prevention,  
            caregiver support, and other supports for low-income seniors  
            struggling with isolation due to poverty and/or disability.

          5)That congregate nutrition programs provide important links to  
            other in-home and community-based services including  
            transportation, health and wellness, education, counseling,  
            and assessments.

          6)That home-delivered meals provide nutrition for home-bound  
            individuals, as well as volunteers to check-up on homebound  








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            elders and other, younger, functionally challenged adults in  
            order to decrease feelings of isolation.

          7)That nutrition programs enhances the ability for eligible  
            individuals to remain independent and in their own homes  
            longer, thus preventing or delaying costly  
            institutionalization.

          8)That older adults are far less likely to obtain employment to  
            compensate for lost nutrition benefits, which forces families  
            to back-fill with resources intended to support children, thus  
            jeopardizing entire families' well-being. 

          9)That funding reduction threatens loss of necessary equipment,  
            as well as fragile networks created through local innovations  
            developed by local governments, community-based organizations,  
            and faith-based entities.
          10)That California will suffer a $6.6 million loss to nutrition  
            programs during federal fiscal year 2013-14, and a loss of  
            approximately $5.1 million during each federal fiscal year  
            thereafter until the end of federal fiscal year 2021-22.

          11)That the Legislature memorializes the President and Congress  
            to restore nutrition program funding, similar to the way  
            funding was restored for small airport air-traffic controller  
            services.

          12)That nutrition program funding be exempt from any further  
            cuts due to the disproportionate growth of the aging  
            population and the corresponding disproportionate impact upon  
            the senior population.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  

           BACKGROUND  : Title III of the Older Americans Act (OAA) of 1965  
          provides for the Nutrition Program to reduce hunger and food  
          insecurity, promote socialization of older individuals, to  
          promote the health and well-being of older individuals and to  
          delay adverse health conditions through access to nutrition and  
          other disease prevention and health promotion services.  The OAA  
          authorizes and provides appropriations to the Administration on  
          Aging (AoA) for three different nutrition programs under Title  
          III of the act: Congregate Nutrition Services (Title III C1),  








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          Home-Delivered Nutrition Services (Title III C2), Nutrition  
          Services Incentive Program (NSIP).

          Congregate Nutrition Services, established in 1972 and  
          Home-Delivered Nutrition Services, established in 1978; provide  
          meals and related nutrition services to older individuals in a  
          variety of settings including congregate facilities where meals  
          are provided in group settings such as senior centers; or by  
          home-delivery to older individuals who are homebound due to  
          illness, disability, or geographic isolation. Services are  
          targeted to those in greatest social and economic need with  
          particular attention to those at risk of isolation, such as low  
          income individuals, those in rural communities, those with  
          limited English proficiency, and those at risk of institutional  
          care. Nutrition Services Programs help older individuals to  
          remain independent and in their communities.

          Grants for Congregate Nutrition Services and Home-Delivered  
          Nutrition Services are allocated to states and territories by a  
          formula based on their share of the total U.S. population aged  
          60 and over.  Nutrition Services Incentive Program grants are  
          allocated to states, territories, and eligible Indian Tribal  
          Organizations. These grants are in addition to congregate and  
          home-delivered meals and may only be used for food. 

          According to the California Department of Aging (CDA), the state  
          agency overseeing nutrition program services, nutrition programs  
          improve participants' dietary intakes and to offer opportunities  
          to form new friendships and create informal support networks.  
          Since adequate nutrition is critical to health, functioning, and  
          the quality of life, the program is an important component of  
          home and community-based services for older people.  Meals  
          incorporate dietary guidelines which focus on food and beverages  
          that help achieve and maintain healthy weight, promote health,  
          and prevent disease. Meals are provided through networks  
          developed locally by the state's 33 Area Agencies on Aging (AAA)  
          with community-based organizations.  

          In the 2011-12 fiscal year, the CDA and its 33 partner AAAs  
          served or delivered 7,538,224 congregate meals, and 10,437,410  
          home delivered meals.  Average home delivered meals run  
          approximately $3.24, while congregate meals run approximately  
          $4.86 per meal.  

          According to a report prepared by the National Foundation to End  








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          Senior Hunger called "The State of Senior Hunger in America  
          2011," on average, 15.2% of seniors in the U.S. are at risk of  
          hunger, or "food insecure."  This equates to about 8.8 million  
          individuals.  The report reveals that in California, 17.2% of  
          elders face hunger.  African American and Hispanic elders  
          experience hunger at about twice the rate of whites (31.2% & 32%  
          v. 13.3 %).  Having a grandchild present in the home more than  
          doubles the risk of food insecurity (34.91%). 

           SEQUESTER  : "Sequestration" is a process of automatic, largely  
          across-the-board federal spending reductions to meet or enforce  
          certain budget policy goals.  It was first established by the  
          Balanced Budget and Emergency Deficit Control Act of 1985  
          (BBEDCA, Title II of P.L. 99-177, 2 U.S.C. 900-922) to enforce  
          deficit targets. In the 1990s, sequestration was used to enforce  
          statutory limits on discretionary spending and a pay-as-you-go  
          (PAYGO) requirement on direct spending and revenue legislation.  
          After effectively expiring in 2002, sequestration was  
          reestablished by the Statutory Pay-As-You-Go Act of 2010 (P.L.  
          111-139) to enforce a modified PAYGO requirement on direct  
          spending and revenue legislation.  Most recently, under the  
          Budget Control Act of 2011 (BCA, P.L. 112-25), sequestration was  
          tied to enforcement of new statutory limits on discretionary  
          spending and achievement of the budget goal established for the  
          Joint Select Committee on Deficit Reduction, also known as the  
          "Super Committee."  A sequestration was triggered by the Joint  
          Committee's failure to achieve its goal and was originally  
          scheduled to occur on January 2, 2013, to affect spending for  
          FY2013. Congress enacted legislation that delayed the effective  
          date of this sequester until March 1, 2013 (American Taxpayer  
          Relief Act of 2012, P.L. 112-240).  Social Security, Medicare,  
          Tier 1 Railroad Retirement and VA services were exempt from the  
          sequestered cuts.  Sequestration enforces budget reductions that  
          are indiscriminate, rather than the usual deliberative approach  
          that includes the input of stake-holders, experts and the  
          American people.

          After sequester cuts began to go into effect in 2013, Congress  
          acted to head-off public outcry over cuts to popular programs.   
          Citing significant concerns about long lines at airports and  
          flight delays caused by the potential of furloughed air-traffic  
          controllers, Congress let the Federal Aviation Administration  
          override strict sequestration rules and redirect funds within  
          its budget to assure adequate staffing, especially at small  
          airports, thereby assuring uninterrupted flight management for  








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          non-commercial aviators.

           SEQUESTER OF NUTRITION PROGRAMS  : According to CDA, sequester  
          cuts have the effect to reducing congregate meals by 8.1% and  
          home delivered meals by 4.3%, or, $6.6 million (about 1,629,630  
          fewer meals being served or delivered).  In an effort to avoid  
          the severity of the reduced federal funds, The California State  
          Assembly entered in to an inter-agency agreement with the  
          California Department of Aging in to provide $2.7 million from  
          the Assembly's operations account, reducing the impact by about  
          30%.  Thus, the net reduction to nutrition program funding was  
          less than $4 million for FFY 2013.

          The federal Omnibus Budget for FFY 2014 restores all nutrition  
          cuts, effective retroactively to October 1, 2013.  At the time  
          of this analysis, CDA did not have the data necessary to  
          determine if sequester cuts during the FFY 2013 resulted in  
          barriers to accessing nutrition services, though the CDA  
          acknowledges that local resources have been raised to address  
          local backfill needs.  However, testimony at a recent Senate  
          Human Services Committee hearing on senior nutrition programs  
          revealed many nutrition programs and distribution networks are  
          stressed by the one-year reductions.  
           
          AUTHORS STATEMENT  : "The sequestration of funds for senior  
          nutrition programs comes at a time when our senior and elderly  
          populations are growing.  These cuts have many consequences as  
          senior nutrition programs, throughout California, are being  
          reduced or eliminated.  Foremost, the health and medical needs  
          of seniors can become compromised when there is not enough food  
          to eat.  In 2012, 2.8 million (8.8%) households with seniors  
          experienced food insecurity.  That same year, 1.1 million (9.1%)  
          households composed of seniors living alone experience food  
          insecurity.  A study which examined the health and nutritional  
          status of seniors found that food insecure seniors had  
          significantly lower intakes of vital nutrients in their diets  
          when compared to their food secure counterparts.  In addition,  
          food insecure seniors were more likely to report a fair or poor  
          health status and had higher nutritional risk, which is  
          associated with a range of chronic illnesses, including  
          hypertension and an increased risk of developing diabetes.   
          Restoring the federal funding cuts and exempting further cuts  
          from senior nutrition programs will facilitate the ability for  
          seniors to remain independent, avoid institutionalization and  
          maintain a healthier life."  








                                                                 AJR 29
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          According to the Author, "(F)ood is critical to health,  
          functioning, and the quality of life.  
          AJR 29 would memorialize Congress and President to restore  
          federal funding cuts to senior nutrition programs and to spare  
          senior nutrition programs from further cuts and prevent  
          thousands of seniors from malnutrition.  AJR 29 highlights the  
          important role of nutrition programs in the lives elderly and  
          homebound individuals who depend on meal delivery. Home  
          delivered services allow volunteers and paid staff the  
          opportunity to check on the welfare of fragile recipients, and  
          to report any health or other problems they may notice during  
          their visits.  Home Delivered Meals, Congregate Nutrition and  
          Nutrition Services Incentive programs for the elderly and  
          homebound eligible individuals can facilitate their ability to  
          remain independent, avoid institutionalization and maintain  
          healthier remaining years of life."
           
          SUPPORT  : Supporters argue that the real damage is not just in  
          the reduction of meals being served, but in the damage that  
          fewer resources will have upon the fragile networks of  
          distribution which often operate on shoe-string budgets and with  
          narrow margins.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Association of Area Agencies on Aging (C4A)
          Senior Assemblymember Gerald Richards (Hercules)

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. /  
          (916) 319-3990