BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

                                AB16  (Honda)

Hearing Date:8/30/99            Amended:6/17/99        
Consultant: Karen French        Policy Vote:H&HS  6-1  
____________________________________________________________ 

BILL SUMMARY: 

AB 16 increases the state's share of costs for the In-Home  
Supportive Services (IHSS) Program in any county that  
establishes a Public Authority or nonprofit consortium to  
provide IHSS services and that increases wages and benefits  
for IHSS workers.

                         Fiscal Impact (in thousands)
  
Major Provisions        1999-2000             2000-01               2001-02   Fund  

IHSS increase
 State share      -----------up to $94 million annually*-------------General

*The 1999 Budget Act provides $90 million for wage and benefit increases by  
counties ($.50/hour).

STAFF COMMENTS:  This bill meets the criteria for referral  
to the Suspense File.

Existing law allows counties to deliver IHSS to eligible  
aged, blind, and disabled individuals through any of the  
following modes of service delivery:  1)  individual  
providers (IP) hired by the recipient, 2)  county contract  
with private agencies, or county social service staff.  In  
addition, counties may establish a public authority or  
nonprofit consortium to administer the IP mode.  The public  
authority or nonprofit consortium is the employer of record  
for the purpose of collective bargaining by Ips.  The  
nonfederal share of the costs of the IHSS program are split  
65% state and 35% county, except that costs of the public  
authority or nonprofit consortium  option are paid entirely  
by the county, unless otherwise provided for in the annual  
Budget Act.

Actual costs of this bill are unknown.  Costs could be  
substantially less to the extent that not all counties opt  










to implement the public authority or nonprofit consortium  
mode of delivery.  Costs could be higher depending on the  
extent of wage and benefit increases negotiated by the  
noncounty employer of record.

According to the sponsors of this measure, it places all  
three modes of IHSS delivery on equal footing regarding the  
state's share of cost and removes any financial  
disincentive for a county to opt for the public authority  
mode.