BILL ANALYSIS �
AB 1452
Page 1
Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1452 (Stone) - As Amended: April 2, 2014
Policy Committee: Human Services
Vote: 6 - 1
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill increases the amount of CalWORKs temporary homeless
assistance from $65 to $75 per day for families of up to four
members, and increases the daily maximum to $135 for larger
families. This bill also requires that this amount be adjusted
annually to reflect increases or decreases in the cost of
living.
FISCAL EFFECT
1)Potentially significant costs in excess of $3 million for
increased housing benefits.
In January 2014, there were 24,755 days authorized for
temporary shelter. The monthly cost of a $10 increase would
be $247,550. The annual cost would be $2.97 million. A 2% COLA
increase would add about $386,000. The additional net expenses
to Temporary Assistance for Needy Families (TANF) grant funds
and/or General Fund would be around $3.3 million.
2)This bill would also result in ongoing costs to counties
statewide of about $75,000 for their share in the CalWorks
basic grant cost sharing formula. Alternatively, if the
requirements in this bill are found to be reimbursable
mandates, the state would assume that cost.
COMMENTS
1)Purpose . The current CalWORKs temporary homeless assistance
benefit amount of $65 was set in 2006 and has not been
AB 1452
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adjusted for inflation since then. According to the 2009
Hotel Price Index, the average cost per night in a California
hotel at that time was $118, approaching twice the amount of
the temporary shelter assistance benefit. This bill seeks to
modestly increase the temporary shelter assistance amount in
order to assist homeless families in making temporary housing
arrangements while they look for more permanent housing.
2)Existing Law . The CalWORKs temporary homeless assistance
benefit provides temporary shelter assistance in the amount of
$65 per day for a family of up to four people, with an
additional $15 per day provided for each additional family
member, subject to an overall maximum amount of temporary
shelter assistance of $125 per day per family. The assistance
can only be used to pay for housing provided in a commercial
establishment, a shelter, or an established rental property.
3)Related Legislation . AB 264 (Maienschein) deletes the
requirement that CalWORKs temporary shelter assistance only be
provided for a lifetime limit of 16 consecutive days, and
instead allows a family to receive temporary shelter
assistance for a lifetime limit of 16 calendar days, with
certain exceptions. This bill passed off this committee's
Suspense File earlier this year and is now in the Senate.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081