BILL ANALYSIS �
AB 1516
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1516 (Gonzalez) - As Amended: April 22, 2014
Policy Committee: Human
ServicesVote:4 -1
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill provides a CalWORKs diaper supplement for children
under three years of age and establishes a fund to support
public-private partnerships to facilitate the distribution of
diapers to children in needy families. Specifically, this bill:
1)Provides a young child special needs supplement of $80 per
month for any child under three years of age in a CalWORKs
recipient family and applies an annual cost of living
adjustment to the supplement.
2)Creates in the State Treasury the Unmet Diaper Need Financing
Fund, consisting of money from grants and donations from
private entities and of public money transferred to the fund,
and requires DSS to distribute money in the fund, upon
appropriation by the Legislature, to entities that serve
low-income children and receive matching funds for the purpose
of meeting the unmet diaper needs in the funding recipient's
community. The fund sunsets January 1, 2019.
FISCAL EFFECT
1)This bill would impact approximately 19% of CalWORKs children,
AB 1516
Page 2
or approximately 189,000 children per month. Based on a
monthly special needs payment of $80, the resulting cost is
approximately $90 million in 2014-15 and $181 million on-going
(TANF/GF).
2)Partial offsetting savings to the extent an increased use of
childcare better enables parents to work and thus come off of
assistance earlier, and that healthier babies decreases
healthcare costs to Medi-cal.
COMMENTS
1)Purpose of the bill . This bill seeks to address the lack of
resources available to low-income families for diaper
purchases by providing a supplement to CalWORKs families for
the purpose of purchasing diapers for young children, and
through creation of a fund to facilitate local efforts to
provide diapers to needy families. This bill also seeks to
ensure that a parent's lack of sufficient resources to
purchase diapers does not result in a barrier to child care
and, subsequently, a barrier to obtaining and retaining
employment.
2)Background . The CalWORKs program provides monthly income
assistance and employment-related services aimed at moving
children out of poverty and helping families meet basic needs.
Federal funding for CalWORKs comes from the Temporary
Assistance for Needy Families (TANF) block grant. The average
monthly cash grant for a family of three on CalWORKs (one
parent and two children) is $463 to meet basic needs,
including rent, clothing, utility bills, food, and anything
else a family needs. This grant amount puts the annual
household income at $5,556 per year. Federal Poverty
Guidelines show that 100% of poverty for a family of three is
$19,790 per year.
According to recent data from the California Department of
Social Services, 554,292 families rely on CalWORKs, including
over one million children. Nearly 80% of the children are
under age twelve and 40% are under age five.
3)Child care . Title 22 within the California Code of Regulations
provides standards to which licensed child care centers must
adhere, including that a center shall ensure each infant has
AB 1516
Page 3
sufficient changes of clothing and diapers, and that each
infant's clothing and diapers are to be changed as often as
necessary to ensure that each infant is kept clean and dry at
all times. Child care is provided within the CalWORKs program
to facilitate a parent's participation in employment or
another required welfare-to-work activity. However, because
most child care providers require parents supply the diapers,
not having enough money to purchase diapers can result in the
loss of access to child care, which impedes a parent's ability
to go to work or participate in a welfare-to-work activity,
and may result in a sanction for non-compliance with the
program requirements.
4)Cost of diapers . According to the National Diaper Bank
Network, disposable diapers cost up to $150 per month ($100
average) with no government assistance. This does not include
the cost of wipes and other necessary items. The average
child goes through 10-14 diapers daily for 2.5 to 3 years,
with more being used daily the first four months. Pricing for
disposable diapers ranges from 17 cents to 42 cents each
depending upon size, style, brand and where they are
purchased. Poor parents are less likely to be able to buy in
bulk so end up paying more on average. Cloth diapers are not
an option for many poor families, who don't have easy access
to washers and dryers. Many Laundromats don't allow diapers
to be washed in their machines, and, even when they do, the
cost of frequent washes can be prohibitive for CalWORKs
families.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081