BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1452 (Stone) - CalWORKs: temporary homeless assistance.
Amended: June 15, 2014 Policy Vote: Human Services 3-1
Urgency: No Mandate: Yes
Hearing Date: June 30, 2014
Consultant: Jolie Onodera
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1452 would increase the amount of CalWORKs
homeless assistance from $65 to $75 per day for families of up
to four members, and would increase the daily maximum for larger
families from $125 to $135. This bill would additionally require
all rates applicable to temporary homeless assistance (family of
four, additional per family member rate of $15, and daily family
maximum) be adjusted annually to reflect any increases or
decreases in the cost of living, as specified.
Fiscal Impact:
First-year increase in costs for temporary shelter
assistance of about $3.1 million (General Fund) to reflect a
$10 per day increase. Nearly 311,000 days of temporary
shelter were approved for the 12 months through February
2014. Future annual costs would likely increase due to the
cost of living adjustment based on the CNI. Assuming an
annual rate of two percent, temporary shelter assistance
costs would increase by $550,000, resulting in total costs
of $3.7 million in the first year, likely increasing
annually to adjust for the cost of living.
Unknown, potentially significant one-time costs (General
Fund) for automation modifications.
Background: Existing law 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 $125 per
day per family. County welfare departments may increase the
daily amount available for temporary shelter as necessary to
secure the additional bedspace needed by a family. Assistance
can only be used to pay for housing provided in a commercial
establishment, a shelter, or an established rental property.
Existing law additionally provides that the daily amount for the
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temporary shelter special need for homeless assistance may be
increased if authorized by the current year's Budget Act by
specifying a different daily allowance and appropriating the
funds therefor (WIC � 11450(f)(2)(H)).
Existing law, with certain exceptions, provides eligible
families with a once-in-a-lifetime payment for homeless
assistance, including temporary housing assistance for one
period of up to 16 consecutive calendar days and one payment of
permanent housing assistance. A homeless assistance payment may
be granted for either, or both, temporary shelter or permanent
housing.
Existing law provides that any otherwise eligible Assistance
Unit (AU) that includes a parent or nonparent caretaker relative
living in the home who has previously received temporary shelter
assistance or permanent homeless assistance at any time on
behalf of an eligible child is not eligible for further homeless
assistance.
The exceptions to the once-in-a-lifetime availability of
temporary and permanent housing assistance are as follows:
A family that becomes homeless as a direct and primary
result of a state or federally declared natural disaster.
When homelessness is a direct result of domestic violence
by a spouse, partner, or roommate; physical or mental
illness, as specified; or the uninhabitability of the former
residence caused by sudden and unusual circumstances beyond
the control of the family including natural catastrophe,
fire, or condemnation.
Homeless assistance payments based on the circumstances above
are limited to not more often than once in any 12-month period.
If the domestic violence is verified by a sworn statement by the
victim, the homeless assistance payments are limited to two
periods of not more than 16 consecutive calendar days of
temporary assistance and two payments of permanent assistance.
Any AU applying for homeless assistance is required to be
informed that these benefits are limited to once-in-a-lifetime,
with exceptions. Additionally, any person who applies for
homeless assistance benefits must be informed that the temporary
shelter benefit of up to 16 consecutive days is available only
once in a lifetime, with certain exceptions, and that a break in
the consecutive use of the benefit constitutes permanent
exhaustion of the temporary benefit. (WIC �11450 (f)(2)(E)(i))
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Proposed Law: This bill would increase the amount of CalWORKs
homeless assistance from $65 to $75 per day for families of up
to four members, and would increase the daily maximum from $125
to $135 for larger families. This bill would additionally
require all of the amounts applicable to temporary shelter
assistance (family of four, additional per person rate of $15,
and daily family maximum) be adjusted annually to reflect any
increases or decreases in the California Necessities Index
(CNI), to become effective July 1 of each year.
This bill would require the DSS to implement the provisions of
the bill through an all-county letter or similar instructions no
later than April 1, 2015, and would require the DSS to adopt
regulations no later than July 1, 2016.
Related Legislation: AB 264 (Maienschein) 2014 would revise
eligibility for both temporary shelter and permanent housing
assistance payments under the CalWORKs Homeless Assistance
Program. This bill is currently on the Suspense File of this
Committee.
Staff Comments: By increasing the daily benefit for temporary
shelter assistance payments by $10, this bill could result in
significant ongoing costs of about $3.1 million (General Fund)
in the first year of implementation. Based on data from the CA
237HA (CalWORKs Homeless Assistance Program - Monthly
Statistical Report) for March 2013 to February 2014, nearly
311,000 days of temporary shelter were approved at a cost of
$22.3 million. A $10 per day increase based on that 12-month
period results in increased costs of $3.1 million.
This bill also requires the annual adjustment of the temporary
homeless assistance amounts for a family of up to four persons
($75), the additional per person daily rate ($15), and the daily
family maximum ($135) by a cost of living adjustment based on
the CNI to be effective July 1 of each year. Assuming the first
increase would be effective July 1, 2015, a 2.17 percent CNI
applied to all three rates would increase overall annual costs
by over $550,000, resulting in total costs of about $3.7
million. Future annual costs would increase or decrease
accordingly based on subsequent year values of the CNI.
To the extent automation modifications are required to
effectuate the changes specified in this measure, the Department
of Social Services could incur one-time costs of an unknown
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amount.
Staff notes the Budget Act of 2014 included $20 million in SB
852 (Leno), the Budget Act of 2014, to be available for housing
supports for CalWORKs families for whom homelessness or housing
instability is a barrier to self-sufficiency or child
well-being. These funds were not appropriated for the Homeless
Assistance Program covered in this measure but provide
supplemental funding for these purposes.
The provisions of this bill would impact the fiscal estimate of
AB 264 (Maienschein) 2014, which is currently on the Suspense
File of this Committee. Should both bills be enacted, there
would be an additional cost of about $0.3 million to $0.9
million annually to provide additional days of temporary shelter
assistance based on this bill's higher daily rates.
Recommended Amendments: Staff recommends the following amendment
in order to ensure the temporary shelter assistance payments are
appropriately adjusted by the CNI:
WIC � 11453(b) The overall adjustment factor determined by the
preceding computation steps shall be multiplied by the schedules
established pursuant to Section 11452 and subdivision (a) and
clause (i) of subparagraph (A) of paragraph (2) of subdivision
(f) of Section 11450 as are in effect during the month of June
preceding the fiscal year in which the adjustments are to occur
and the product rounded to the nearest dollar. The resultant
amounts shall constitute the new schedules which shall be filed
with the Secretary of State.
WIC � 11453 (a) includes multiple references to 'adjustments' in
various fiscal years, making it unclear whether the addition of
the temporary homeless assistance amounts could be subject to
prior year adjustments. For clarity, staff recommends the
following amendment to add a new paragraph (7) to WIC � 11453
(c), as follows:
(7) Adjustments to the amounts set forth in clause (i) of
subparagraph (A) of paragraph (2) of subdivision (f) of Section
11450 shall be made under this section for the 2014-15 fiscal
year and each fiscal year thereafter.
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