BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1882 (Cooley) - CalWORKs: relative caregivers.
          
          Amended: August 4, 2014         Policy Vote: Human Services 4-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 1882 would require a county welfare department  
          (CWD) to immediately initiate specified application, eligibility  
          determinations, and screenings of a foster child upon placement  
          in the home of a relative or non-relative extended family member  
          (NREFM) caregiver. This bill would also require an infant  
          supplement, as specified, to be paid under the CalWORKs and the  
          Approved Relative Caregiver Funding Option (ARCFO) Program to a  
          teen parent who is placed with his or her child in the home of a  
          relative caregiver, as specified. 

          Fiscal Impact: 
              Potentially major ongoing state costs (General Fund*) to  
              immediately initiate applications and determine eligibility  
              for AFDC-FC, CalWORKs, or ARCFO program benefits for foster  
              children placed with relatives and NREFM caregivers. 
              Ongoing potentially significant increase in AFDC-FC,  
              CalWORKs, and ARCFO payments due to provision mandating  
              eligibility for aid from the date of placement with the  
              relative or NREFM. Every one additional month of aid for  
              8,500 relative placements could cost in the range of $2.9  
              million to $7.3 million (General Fund*) depending on whether  
              the county has opted into the Approved Relative Caregiver  
              Funding Option.
              Potentially significant ongoing state costs for CWDs to  
              provide an explanation in-person or by telephone of the  
              eligibility requirements and benefit amounts of the programs  
              to relative caregivers. Assuming 30 minutes of social worker  
              time for 8,500 relative placements would cost about $325,000  
              (General Fund*).  
              Potentially significant ongoing state costs of about  
              $250,000 (General Fund*) for CWDs to screen for SSI  
              eligibility, assuming 30 minutes of social worker time. As  








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              existing law requires counties to screen for SSI for foster  
              youth between the age of 16 and 17 years, no additional  
              costs are assumed for this age group.
              Potentially significant ongoing state costs of about  
              $250,000 (General Fund*) to provide the infant supplement of  
              $411 per month to an estimated 50 cases statewide.

          *Pursuant to Proposition 30 (November 2012) any legislation  
          enacted after September 30, 2012, that has an overall effect of  
          increasing the costs already borne by a local agency for  
          programs or levels of service mandated by realignment (including  
          child welfare services and foster care) only apply to local  
          agencies to the extent that the state provides annual funding  
          for the cost increase. 

          Background: Existing law requires each county to provide cash  
          assistance and other social services through the California Work  
          Opportunity and Responsibility to Kids (CalWORKs) program using  
          federal Temporary Assistance for Needy Families (TANF) block  
          grant funds, state, and county funds. Existing law specifies the  
          amounts of cash aid and supplemental amounts to be paid each  
          month to CalWORKs recipients.

          Existing law establishes the Aid to Families with Dependent  
          Children (AFDC)-Foster Care program under which counties provide  
          payments to foster care providers on behalf of qualified  
          children. Under existing law, a child is eligible for AFDC-FC if  
          he or she is placed in the approved home of a relative and is  
          otherwise eligible for federal financial participation in the  
          AFDC-FC payment, as specified. Under existing law, if a county  
          welfare department places a child who is in temporary custody or  
          subject to the jurisdiction of the juvenile court with a  
          relative or NREFM, the county is required to evaluate and  
          approve or deny the home for purposes of AFDC-FC eligibility.

          Existing law recently enacted by SB 855 (Committee on Budget and  
          Fiscal Review) Chapter 29/2014, the Human Services budget  
          trailer bill, among other provisions, established the Approved  
          Relative Caregiver Funding Option Program, and appropriates $30  
          million from the General Fund annually for this program. This  
          program requires counties that opt to participate in the program  
          to, effective January 1, 2015, pay an approved relative  
          caregiver a per child per month rate in return for the care and  
          supervision of an AFDC-FC ineligible child placed with the  








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          relative caregiver that is equal to the basic rate paid to  
          foster care providers for an AFDC-FC child.

          Proposed Law: This bill would require a CWD to immediately  
          initiate specified application, eligibility determinations, and  
          screenings of a foster child upon placement in the home of a  
          relative or NREFM caregiver, as follows:
                 Requires a county to immediately initiate the  
               application for AFDC-FC and determine eligibility. 
                 If found ineligible for AFDC-FC, requires the county to  
               initiate the application for and determine eligibility for  
               CalWORKs or ARCFO, if applicable. Specifies that the  
               application date shall be the date the child was placed  
               with the relative or NREFM.
                 If found ineligible for AFDC-FC, requires the CWD to  
               explain the specific basis for this determination and shall  
               immediately screen for eligibility for SSI/SSP eligibility.
                 Requires county social workers or eligibility workers to  
               explain, in person or by telephone, the eligibility  
               requirements and benefit amounts for the AFDC-FC, CalWORKs,  
               and ARCFO programs, as well as any actions the relative  
               could take to affect the child's eligibility for those  
               programs.
                 Requires all youth in foster care who have been  
               determined federally ineligible to be screened by the CWD  
               for potential eligibility for SSI/SSP, as specified.

          This bill also requires an infant supplement, as specified, to  
          be paid under the CalWORKs and ARCFO programs to a teen parent  
          who is placed with his or her child in the home of a relative  
          caregiver, as specified. 

          Related Legislation: AB 2668 (Quirk-Silva) 2014 would provide  
          for a monthly $200 payment to a nonminor dependent parent  
          subject to the development and completion of a parenting support  
          plan between the nonminor dependent parent who resides in a  
          supervised independent living placement and an identified  
          responsible adult, as specified. This bill is scheduled to be  
          heard today by this Committee.
          
          Prior Legislation: SB 855 (Committee on Budget and Fiscal  
          Review) Chapter 29/2014, the Human Services budget trailer bill,  
          among other provisions, established the Approved Relative  
          Caregiver Funding Option Program, and appropriates $30 million  








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          from the General Fund annually for this program. This program  
          requires counties that opt to participate in the program to,  
          effective January 1, 2015, pay an approved relative caregiver a  
          per child per month rate in return for the care and supervision  
          of an AFDC-FC ineligible child placed with the relative  
          caregiver that is equal to the basic rate paid to foster care  
          providers for an AFDC-FC child.
          
          Staff Comments: By requiring county welfare departments to  
          immediately initiate specified application, eligibility  
          determinations, and screenings of a foster child upon placement  
          in the home of a relative or NREFM caregiver, this bill imposes  
          a state-mandated local program due to the higher level of  
          service mandated on CWDs, potentially requiring a subvention of  
          funds from the state. Although CWDs do initiate and determine  
          eligibility for programs, existing law does not specify  
          immediate initiation of applications and determinations of  
          eligibility for AFDC-FC, or require an explanation of the  
          specific basis for the determination followed by an immediate  
          screening for SSI of these cases. 

          This bill requires CWDs to immediately screen youth for SSI  
          eligibility upon determination of ineligibility for AFDC-FC.  
          Assuming 30 minutes of social worker time per screening, ongoing  
          state costs of about $250,000 (General Fund*) are estimated. As  
          existing law requires counties to screen for SSI for foster  
          youth between the ages of 16 and 17 years, the costs noted  
          above do not include inclusion of this age group.

          Additionally, requiring CWDs to provide an explanation in-person  
          or by telephone of the eligibility requirements and benefit  
          amounts of the AFDC-FC, CalWORKs, and ARCFO programs to relative  
          caregivers will result in additional workload to CWDs. Assuming  
          30 minutes per explanation for 8,500 relative placements would  
          cost about $325,000 (General Fund*) annually. To the extent  
          additional time is required for eligibility workers to provide  
          further information to caregivers would result in additional  
          ongoing costs.

          By mandating eligibility for aid from the date of placement with  
          the relative or NREFM, this bill could result in the receipt of  
          aid earlier and for additional months for about 8,500 relative  
          placements. For every one additional month of aid provided,  
          ongoing costs could range from $2.9 million to $7.3 million,  








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          depending on the program (CalWORKs vs. AFDC-FC or ARCFO).

          This bill also requires the provision of the infant supplement  
          to be paid in the CalWORKs and ARCFO programs to a teen parent  
          who is placed with his or her child in the home of a relative  
          caregiver, as specified. This provision is estimated to result  
          in annual costs of about $250,000 (General Fund*) to provide the  
          infant supplement of $411 per month to an estimated 50 cases  
          statewide.

          Prior to FY 2011-12, the state and counties contributed to the  
          non-federal share of child welfare services expenditures. AB 118  
          (Committee on Budget) Chapter 40/2011 and ABX1 16 Chapter  
          13/2011 realigned state funding to the counties through the 2011  
          Local Revenue Fund (LRF) for various programs, including child  
          welfare services and foster care. As a result, beginning in FY  
          2011-12 and for each fiscal year thereafter, non-federal funding  
          and expenditures for foster care and child welfare services  
          activities are funded through the LRF.

          Proposition 30 was passed by the voters in November 2012, and  
          among other provisions, eliminated any potential mandate funding  
          liability for any new program or higher level of service  
          mandated on the counties related to realigned programs,  
          including child welfare services and foster care. Rather,  
          legislation enacted after September 30, 2012, that has an  
          overall effect of increasing the costs already borne by a local  
          agency for programs or levels of service mandated by realignment  
          only apply to local agencies to the extent that the state  
          provides annual funding for the cost increase. Local agencies  
          are not obligated to provide programs or levels of service  
          required by legislation above the level for which funding has  
          been provided. 

          To the extent it is determined that the provisions of this bill  
          impose a higher level of service on local agencies or result in  
          an increase in overall costs already borne by counties for the  
          provision of child welfare services and foster care, the state  
          could potentially elect to, but not be required to, provide  
          funding for the cost increase.  












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