BILL ANALYSIS
AB 1039
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Date of Hearing: April 28, 1998
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
AB 1039 (Aroner) - As Amended: April 8, 1999
Policy Committee: Human
ServicesVote:6 - 2
Urgency: No State Mandated Local
Program:YesReimbursable: Yes
SUMMARY
This bill:
1)Requires subsidized employment activities for California Work
Opportunity and Responsibility to Kids (CalWORKs) recipients,
which counties may elect to require in lieu of community
service, to meet numerous conditions, including the right to
refundable vacation and sick leave.;
2)Authorizes students in self-initiated education programs to
count hours spent preparing for classes toward the CalWORKs
work requirement;
3)Requires counties to notify CalWORKs recipients of their right
to a fair hearing or independent assessment of a
county-developed welfare-to-work plan.
FISCAL EFFECT
1)The bill's provisions imposing additional requirements on
subsidized employment in lieu of community service could have
a significant fiscal impact on counties that choose to elect
the option. To the extent supported employment programs are
more expensive than community service, fewer CalWORKs
recipients would be served, or county costs would increase
(General Fund, federal and county funds).
2)The bill's notice requirements regarding the right to contest
or seek an independent assessment of a county-developed
welfare to work plan would be state-reimbursable. In
addition, to the extent the notice requirement increases the
AB 1039
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number of CalWORKs recipients who seek state fair hearings or
independent assessments, the bill would result in costs to the
state and reimbursable county costs. Assuming 1,000
additional CalWORKs recipients sought a review or fair hearing
due to the notice requirement, the bill would result in annual
costs in the range of $250,000 (General Fund, federal funds).
COMMENTS
1)CalWORKs Community Service Requirement . As part of
California's welfare reform plan, a CalWORKs recipient who is
not employed after 18 or 24 months of receiving assistance (at
the option of the county) must enter community service
employment. Community service employment is work performed by
recipients of public assistance that otherwise would have gone
undone by employees in the public, private or non-profit
sector.
The author indicates there are two broad approaches to
community service: "workfare" and wage-based employment.
Under "workfare," recipients are required to participate in
community service as a condition of receiving their public
assistance grant. Under wage-based employment, the recipient
is provided a job and paid at least the minimum wage. The
recipient's grant is used to fully or partially offset wages
paid to the recipient. The CalWORKs program allows counties to
provide either "workfare" or wage-based community service,
provided that the compensation for community service does not
exceed the recipient's grant amount.
2)Legislative Analyst's Office Report . LAO recently completed a
report on CalWORKs community service. In its report, LAO
found that wage-based community service results in more income
for families by allowing them to claim the Earned Income Tax
Credit (EITC). A typical family of three in wage-based
community service would receive an EITC of about $250 per
month, or about $3,000 per year. The report also noted that
wage-based community service aids recipients in the transition
to work by giving participants actual work experience. The
report notes potential advantages to the state, including
increased sales tax revenues associated with the expenditure
of EITC funds by recipients, and a potential savings from
reduced welfare benefits if wage-based community service is
more effective than "workfare" in assisting recipients in
their effort to move toward unsubsidized work.
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3)Counting Study Time Toward Work Requirements . Western Center
on Law and Poverty, sponsor of this bill, notes that current
law puts some student CalWORKs participants at a distinct
disadvantage by requiring more combined hours of work activity
than other participants. A single parent recipient in a
full-time education program must add 17-20 hours of employment
or other work activities to satisfy the CalWORKs requirement.
If that student's study time is two hours for each classroom
hour and he or she is taking 15 units, that student will have
to devote 62 hours per week of education or work activities to
meet the participation requirement since 30 hours are not
counted. This, the sponsor says, jeopardizes the well-being
and development of the student's children and risks the
educational success of the student.
Analysis Prepared by : William Wehrle / APPR. / (916) 319-2081