Existing law provides for the State Supplementary Program for the Aged, Blind and Disabled (SSP), which requires the State Department of Social Services to contract with the United States Secretary of Health and Human Services to make payments to SSP recipients to supplement Supplemental Security Income (SSI) payments made available pursuant to the federal Social Security Act.

Under existing law, benefit payments under SSP are calculated by establishing the maximum level of nonexempt income and federal SSI and state SSP benefits for each category of eligible recipient, with an annual cost-of-living adjustment, effective January 1 of each year. Existing law prohibits, for each calendar year, commencing with the 2011 calendar year, any cost-of-living adjustment from being made to the maximum benefit payment unless otherwise specified by statute, except for the pass along of any cost-of-living increase in the federal SSI benefits. Existing law continuously appropriates funds for the implementation of SSP.

This bill would reinstate the cost-of-living adjustment beginning January 1 of the 2019 calendar year. The bill would also require a maximum aid payment provided to an individual or a married couple that does not equal or exceed 100% of the 2018 federal poverty level to be increased to an amount that equals 100% of the federal poverty level. By reinstating the cost-of-living adjustment and by increasing the amount of benefits paid under the SSP, this bill would make an appropriation. year, subject to the appropriation of funds for this purpose in the annual Budget Act.

Existing law provides for the State Supplementary Program for the Aged, Blind and Disabled (SSP), which requires the State Department of Social Services to contract with the United States Secretary of Health and Human Services to make payments to SSP recipients to supplement Supplemental Security Income (SSI) payments made available pursuant to the federal Social Security Act.

Under existing law, benefit payments under SSP are calculated by establishing the maximum level of nonexempt income and federal SSI and state SSP benefits for each category of eligible recipient, with an annual cost-of-living adjustment, effective January 1 of each year. Existing law prohibits, for each calendar year, commencing with the 2011 calendar year, any cost-of-living adjustment from being made to the maximum benefit payment unless otherwise specified by statute, except for the pass along of any cost-of-living increase in the federal SSI benefits. Existing law continuously appropriates funds for the implementation of SSP.

This bill would reinstate the cost-of-living adjustment beginning January 1 of the 2019 calendar year. The bill would also require a maximum aid payment provided to an individual or a married couple that does not equal or exceed 100% of the 2018 federal poverty level to be increased to an amount that equals 100% of the federal poverty level. By reinstating the cost-of-living adjustment and by increasing the amount of benefits paid under the SSP, this bill would make an appropriation.

Existing law provides for the State Supplementary Program for the Aged, Blind and Disabled (SSP), which requires the State Department of Social Services to contract with the United States Secretary of Health and Human Services to make payments to SSP recipients to supplement Supplemental Security Income (SSI) payments made available pursuant to the federal Social Security Act.

Under existing law, benefit payments under SSP are calculated by establishing the maximum level of nonexempt income and federal SSI and state SSP benefits for each category of eligible recipient, with an annual cost-of-living adjustment, effective January 1 of each year. Existing law prohibits, for each calendar year, commencing with the 2011 calendar year, any cost-of-living adjustment from being made to the maximum benefit payment unless otherwise specified by statute, except for the pass along of any cost-of-living increase in the federal SSI benefits. Existing law continuously appropriates funds for the implementation of SSP.

This bill would reinstate the cost-of-living adjustment beginning January 1 of the 2019 calendar year. The bill would also require a maximum aid payment provided to an individual or a married couple that does not equal or exceed 100% of the 2018 federal poverty level to be increased to an amount that equals 100% of the federal poverty level. By reinstating the cost-of-living adjustment and by increasing the amount of benefits paid under the SSP, this bill would make an appropriation.

SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: AB 3200

Subject: Public social services: SSI/SSP.

SUMMARY

This bill reinstates, as of January 1, 2019, the annual cost-of-living adjustment (COLA) for the State Supplementary Payment (SSP), as specified and subject to an appropriation in the annual Budget Act.

ABSTRACT

Existing law:

1. Establishes in federal law the Supplemental Security Income for the Aged, Blind, and Disabled (SSI) Program to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 U.S.C. Section 1381-1383(f))
2. Establishes in California law the SSP for people who are aged, blind and disabled, which is intended to supplement federal SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.)
3. Defines the California Necessities Index (CNI) to be the weighted average of changes for food, clothing, fuel, utilities, rent, and transportation for low-income consumers, and specifies the methods that the computation of annual adjustments to the CNI shall be made. (WIC 12201)
4. Requires annual adjustments, based on the CNI, to SSI/SSP payment schedules to reflect increases or decreases in the cost of living, as specified, but further stipulates that such adjustments shall not be made, unless otherwise required by statute, for the 2011 calendar year and each calendar year thereafter. (WIC 12201)

This bill:

1. Reinstates the annual COLA to the SSP per the CNI as of January 1, 2019, as specified.
2. Provides that the COLA is subject to an appropriation in the annual Budget Act.
3. Makes technical conforming changes.

FISCAL IMPACT

According to the Assembly Committee on Appropriations, this bill may result in estimated annual costs of reinstituting a statutory COLA of $50 million (General Fund) for Fiscal Year 2018-19 and $110 million (General Fund) for Fiscal Year 2019-20 and ongoing.

BACKGROUND AND DISCUSSION

Purpose of the bill:

According to the author, “The current SSI/SSP grants are inadequate for a person to live on especially given California's high cost of living. Without an increase in the SSP grant, these individuals risk homelessness and, face hunger which leads to poor health…Furthermore, this is an investment not a cost. It's a solution to our senior housing crisis, it deters homelessness, and prevents poor nutrition which leads to poor health outcomes that further strain the state's other safety net programs.

Supplemental Security Income/State Supplementary Payment (SSI/SSP)

The SSI/SSP program provides a monthly cash benefit to qualified individuals and couples in order to help them pay for basic living expenses, such as food, clothing and shelter. In order to be eligible for SSI/SSP, a person must be at least 65 years old, blind or disabled (including disabled children) and meet certain income and resource requirements. A qualified SSI recipient is automatically qualified for SSP. SSI is a federally funded benefit. The SSP benefit is funded with the state’s General Fund and California sets its own SSP rates.

SSI/SSP grant amounts vary based on a number of factors, including: whether a recipient is aged, blind, or living with disabilities; the individual's or couple's living arrangements; a recipient's marital status; and whether or not a recipient is a minor.

The current SSI/SSP maximum monthly payment amount for married couples is $1,532.14, which is 111.7 percent of the Federal Poverty Level (FPL). The maximum payment for individuals is $910.72, which is 90 percent of the FPL. This puts the income $100.95 below the FPL threshold for a household of one. Therefore, individuals who are aged, blind, or living with disabilities, and rely on SSI/SSP as a sole source of income, are living in poverty per the traditional federal measure, which does not take into account the high cost of living in many areas of California, or other factors. Married couples who rely on SSI/SSP live with an income just above the FPL.

In Fiscal Year (FY) 2017-18, there are about 1.25 million SSI/SSP cases. Of these, 865,685 people file as individuals and 214,432 people file as couples. There are also 165,717 children with disabilities who receive SSI/SSP. Recipient totals broken out by claim type are as follows: 356,379 aged, 17,417 blind, and 872,038 living with disabilities.

SSI/SSP COLAs

The federal Social Security Administration provides an annual COLA to the SSI which is based on the Consumer Price Index. While the federal government has regularly increased its SSI contribution since 2011, the state has frozen or decreased its SSP contribution in recent years. Specifically, the state-funded COLAs for SSP were suspended periodically throughout the 1990s and into the 2000s and spending reductions were routinely enacted during the Great Recession.

Additionally, in the past, the state has not passed through federal COLAs to grant recipients. This meant the state reduced its SSP portion of the grant by an amount equivalent to the federal COLA provided, which generated state savings but also caused the total SSI/SSP grant to remain at the same level despite the federal COLA.

Prior to 2011, budget language frequently suspended the automatic COLA. “Automatic” COLAs for SSP recipients were repealed in 2011 by statute. SSI/SSP maximum payment for individuals was as high as $907 in January 2009 (before the recession) and decreased to $830.40 in June 2011. The state’s SSP contribution was at its lowest level in June 2011 at $156.40. No state-funded COLA was authorized between FY 2004-05 and January 1, 2017.

AB 1603 (Assembly Committee on Budget, Chapter 25, Statues of 2016), which enacted the human services budget for FY 2016-17, included a one-time increase to the SSP (calculated at 2.76 percent of CNI) beginning January 1, 2017. This gave individuals an increase of $4.32 and couples an increase of $10.94 per month. As of January 1, 2017, the SSI/SSP payment for an individual was $893.72 and $1,107.14 for couples.

This bill proposes to reinstate the annual COLA for SSP.

Related legislation:

SB 845 (Committee on Budget and Fiscal Review, 2018) proposes to reinstate the annual COLA for SSP effective July 1, 2022, among other things. This bill is on the Governor’s desk.

AB 796 (Kalra, 2017) was similar to this bill and would have reinstated the annual SSP COLA and required the maximum aid payment for SSI/SSP to be indexed to specified percentages of the FPL. It was held in Assembly Committee on Appropriations.

AB 1584 (Brown), 2016, would have reinstated the SSP COLA. It was vetoed by the Governor.

AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, included a one-time cost-of-living increase to the SSP beginning January 1, 2017, that is equal to the CNI of 2.76 percent.

AB 474 (Brown, 2015) would have, beginning with FY 2015-16, required the state maximum SSP grant for individuals to be annually adjusted and increased such that the maximum SSI/SSP combined payment would have equaled 112 percent of the federal poverty level. It died in the Assembly Budget Committee pursuant to Article IV, Sec. 10 (c) of the Constitution.

COMMENTS

This bill is significantly similar to SB 845 (Committee on Budget and Fiscal Review, 2018), which is the budget bill for FY 2018-19. AB 3200 and SB 845 both provide annual COLAs for SSP payments. However, the effective dates are different. Under SB 845, COLAs will be effective July 1, 2022 and January 1 annually thereafter. AB 3200 provides the COA effective January 1, 2019. Both bills provide annual COLAs contingent on the annual Budget Act. SB 845 bill is awaiting the Governor’s signature.

PRIOR VOTES

POSITIONS

Support:

California food Policy Advocates

Alameda County Board of Supervisors

AAPR California

Oppose:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:

Author:(Kalra, et al.)

As Amended Ver:May 25, 2018

Majority vote

SUMMARY: Reinstates, as of January 1, 2019, the State Supplementary Payment (SSP) annual cost-of-living adjustment (COLA) per the California Necessities Index (CNI), as specified, subject to an appropriation in the annual Budget Act, and makes technical changes.

EXISTING LAW:

1. Establishes in federal law the Supplemental Security Income for the Aged, Blind, and Disabled (SSI) Program to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 United States Code (U.S.C.) Section 1381-1383(f))
2. Establishes the State Supplementary Program for Aged, Blind and Disabled, which is intended to supplement SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. (Welfare and Institutions Code Section (WIC) 12000 et seq.)
3. Provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.)
4. Defines the California Necessities Index (CNI) to be the weighted average of changes for food, clothing, fuel, utilities, rent, and transportation for low-income consumers, and specifies the methods with which the computation of annual adjustments to the CNI shall be made. (WIC 12201)
5. Requires annual adjustments, based on the CNI, to SSI/SSP payment schedules to reflect increases or decreases in the cost of living, as specified, but further stipulates that such adjustments shall not be made, unless otherwise required by statute, for the 2011 calendar year and each calendar year thereafter. (WIC 12201)

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in estimated annual costs of reinstituting a statutory COLA of $50 million (General Fund) for Fiscal Year 2018-19 and $110 million (General Fund) for Fiscal Year 2019-20 and ongoing.

COMMENTS:

SSI/SSP: The SSI/SSP program provides a monthly cash benefit to eligible low-income individuals and married couples who are aged (65 years or older), blind, or living with disabilities, and who meet certain federal income and resource requirements. (Generally, a recipient's monthly income, after the disregard of certain amounts, must not exceed the monthly SSI/SSP benefit amount, and resources – not including one's primary residence or car, among certain other items – must not be valued at more than $2,000 for an individual and $3,000 for a couple.) If eligible for SSI, a recipient is automatically eligible for SSP. SSI is funded by the federal government and provided through an approved application to the Social Security Administration (SSA), while SSP is paid for using state General Fund dollars.

SSI/SSP grant amounts vary based on a number of different factors, including: whether a recipient is aged, blind, or living with disabilities, the individual's or couple's living arrangements, a recipient's marital status, and whether or not a recipient is a minor. Currently, for the most commonly used payment standard, the SSI/SSP maximum grant levels are $910.72 ($160.72 of which is SSP) per month for an individual and $1,532.14 ($407.14 of which is SSP) per month for couples. The estimated average monthly SSI/SSP caseload for the state for 2017-18 is 1.25 million cases. Of these cases, 865,685 people file as individuals and 214,432 people file as couples; there are also 165,717 children with disabilities who receive SSI/SSP. Recipient totals broken out by claim type are as follows: 356,379 aged, 17,417 blind, and 872,038 living with disabilities.

In order to receive Medicaid reimbursement from the federal government, states must provide an SSP in an amount that maintains, at the least, the level of payment that the state made in 1983. The SSA adjusts the SSI portion of the grant each year using the Consumer Price Index (CPI). This federal COLA is passed through to SSI/SSP recipients in California, which allows the SSP portion of the grants to remain at the minimum level allowed under federal law for individuals and couples, thereby allowing the state to maintain its federal Medicaid funding. California used to apply a COLA to the SSP amount; however, this practice was made inoperative as part of the 2009-10 Budget Act. AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, included a one-time cost-of-living increase to the SSP beginning January 1, 2017, that is equal to the California Necessities Index (CNI) of 2.76%. This resulted in the SSI/SSP monthly maximum grant amounts increasing by $4.32 for individuals and $10.94 for couples.

Need for this bill: While the current SSI/SSP maximum monthly payment amount for married couples of $1,532.14 represents 111.7% of the Federal Poverty Level, the maximum amount for individuals ($910.72) represents only 90% of the Federal Poverty Level – in dollars, this payment amount falls $100.95 below the federal monthly poverty threshold for a household of one. This means that individuals who are aged, blind, or living with disabilities, and who rely on SSI/SSP as a sole source of income, are living in poverty per the traditional federal measure, which doesn't take into account the high cost of living in many areas of California, or other factors. Married couples who rely on SSI/SSP live with an income just above this federal poverty line.

According to the author,

The current SSI/SSP grants are inadequate for a person to live on especially given California's high cost of living. Without an increase in the SSP grant these individuals risk homeless and, face hunger which leads to poor health.

The state has saved an estimated $10 billion from these cuts that began in 2009. We have restored every major program in the budget except SSP grants. The Governor proposes to fully fund California's rainy-day cash reserve fund to $13.5 billion, the largest cash reserve in state history. Furthermore, the Legislative Analyst Office is projecting a $3.6 billion budget surplus this year. Given the state surplus it's time to restore the SSP grant amount. This restoration will help protect these vulnerable populations, and more importantly, provide them with the right to live with dignity, not in poverty.

Furthermore, this is an investment not a cost. It's a solution to our senior housing crisis, it deters homeless, and prevents poor nutrition which leads to poor health outcomes that further strains the state's other safety net programs.

Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089 FN: 0003407

Date of Hearing: April 25, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 3200

Author:(Kalra) – As Amended Ver:April 12, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill reinstates the annual cost-of-living adjustment (COLA) to the State Supplementary Program for the Aged, Blind, and Disabled (SSP) and indexes the maximum aid payment for Supplemental Security Income (SSI)/SSP to the federal poverty level (FPL). Specifically, this bill:

1. Requires annual COLAs, as measured by the California Necessities Index, to be applied to SSI/SSP payment schedules, beginning January 1, 2019.
2. Requires, beginning January 1, 2019, any maximum SSI/SSP aid payment to an individual and adjusted for the CNI that is not equal to or above 100% of the 2018 FPL for a household of one to be increased to an amount equaling100% of the FPL for a household of one.
3. Requires, beginning January 1, 2019, any maximum SSI/SSP aid payment to a married couple and adjusted for the CNI that is not equal to or above 100% of the 2018 FPL for a household of two to be increased to an amount equaling 100% of the FPL for a household of two.
4. States that the requirements to index the maximum aid payments to 100% of the FPL are not intended to reduce any payments that already exceed 100% of the FPL.

FISCAL EFFECT:

Estimated annual costs to the Department of Social Services (DSS) of $500 million (GF) for FY 2018-19 and $1.0 billion (GF) for FY 2019-20 and ongoing to increase grants to 100% of the FPL.

COMMENTS:

1. Purpose. This bill seeks to ensure that SSI//SSP payments are at least at the FPL. According to the author:

The current SSI/SSP grants are inadequate for a person to live on especially given California’s high cost of living. Without an increase in the SSP grant these individuals risk homeless and, face hunger which leads to poor health.

The state has saved an estimated $10 billion from these cuts that began in 2009. We have restored every major program in the budget except SSP grants. Given the state surplus it’s time to restore the SSP grant amount. This restoration will help protect these vulnerable populations, and more importantly, provide them with the right to live with dignity, not in poverty.

1. Background. The SSI/SSP program provides monthly cash benefits to qualified low-income seniors and people with disabilities to help them pay for basic living expenses such as food, clothing, and shelter. Qualified SSI recipients are automatically qualified for SSP. SSI is a federal benefit, while the SSP benefit is funded with the state’s General Fund. The estimated average monthly SSI/SSP caseload for the state for 2017-18 is 1.25 million cases. Of these cases, 865,685 (70%) are individuals and 214,432 (17%) are couples. There are also 165,717 children with disabilities (13%) who receive SSI/SSP.

The current SSI/SSP maximum grant level is $910.72 per month ($160.72 SSP) for an individual and $1,532.14 per month ($407.14 SSP) for couples. This places individuals at 90% of FPL and couples at 111.7% of FPL.

In order to receive Medicaid reimbursement from the federal government, states must provide an SSP in an amount that maintains, at the least, the level of payment that the state made in 1983. The federal SSA provides an annual COLA to the SSI based on the Consumer Price Index. This federal COLA is passed through to SSI/SSP recipients in California, which allows SSI/SSP grants to remain at the minimum level allowed under federal law, thereby allowing the state to maintain its federal Medicaid funding. California used to apply a COLA to the SSP amount; however, this practice ended as part of the 2009-10 Budget Act.

AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, included a one-time cost-of-living increase to the SSP beginning January 1, 2017, that is equal to the CNI of 2.76%. This gave individuals an increase of $4.32 per month and couples an increase of $10.94 per month.

The Cash Assistance Program for Immigrants (CAPI) provides benefits to aged, blind, and disabled legal immigrants. The CAPI benefits are equivalent to SSI/SSP program benefits, less $10 per individual and $20 per couple. The grant increases for individuals would presumably have an effect for the CAPI grants as well, as the grant levels are statutorily tied.

1. Prior Legislation.

AB 796 (Kalra), of the 2017-18 Legislative Session, was similar to this bill. It was held on the Suspense File in this committee.

AB 1584 (Brown), of the 2015-16 Legislative Session, would have reinstated the SSP COLA. It was vetoed by the governor.

AB 474 (Brown), of the 2015-16 Legislative Session, would have required the state maximum SSP grant for individuals to be annually adjusted such that the maximum SSI/SSP payment would have equaled 112% of the FPL. It died in the Assembly Budget Committee.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Blanca Rubio, Chair

ABPCA Bill Id:AB 3200 (

Author:Kalra et al.) – As Introduced Ver:February 16, 2018

SUBJECT: Public social services: SSI/SSP

SUMMARY: Reinstates, as of January 1, 2019, the State Supplementary Payment (SSP) annual cost-of-living adjustment (COLA) and indexes the Supplemental Security Income (SSI)/SSP maximum aid payment to the federal poverty level.

Specifically, this bill:

1. Requires, as of January 1, 2019, the SSP payment schedules to be adjusted annually per the California Necessities Index (CNI), as specified.
2. Requires, beginning January 1, 2019, any SSI/SSP maximum aid payment provided to an individual and adjusted per the CNI that is not equal to or above 100% of the 2018 federal poverty level for a household of one to be increased to an amount equaling 100% of the federal poverty level for a household of one.
3. Requires, beginning January 1, 2019, any SSI/SSP maximum aid payment provided to a married couple and adjusted per the CNI that is not equal to or above 100% of the 2018 federal poverty level for a household of two to be increased to an amount equaling 100% of the federal poverty level for a household of two.
4. States that the provisions of this bill are not intended to result in the reduction of any payment provided to an individual that exceeds 100% of the 2018 federal poverty level for a household of one during the 2019 calendar year, nor are they intended to result in the reduction of any payment provided to a married couple that exceeds 100% of the 2018 federal poverty level for a household of two during the 2019 calendar year.
5. Makes technical changes.

EXISTING LAW:

1. Establishes in federal law the Supplemental Security Income for the Aged, Blind, and Disabled (SSI) Program to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 U.S.C. § 1381-1383(f))
2. Establishes the State Supplementary Program for Aged, Blind and Disabled, which is intended to supplement SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. (WIC 12000 et seq.)
3. Provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.)
4. Defines the California Necessities Index (CNI) to be the weighted average of changes for food, clothing, fuel, utilities, rent, and transportation for low-income consumers, and specifies the methods with which the computation of annual adjustments to the CNI shall be made. (WIC 12201)
5. Requires annual adjustments, based on the CNI, to SSI/SSP payment schedules to reflect increases or decreases in the cost of living, as specified, but further stipulates that such adjustments shall not be made, unless otherwise required by statute, for the 2011 calendar year and each calendar year thereafter. (WIC 12201)

FISCAL EFFECT: Unknown.

COMMENTS:

SSI/SSP: The SSI/SSP program provides a monthly cash benefit to eligible low-income individuals and married couples who are aged (65 years or older), blind, or living with disabilities, and who meet certain federal income and resource requirements. (Generally, a recipient’s monthly income, after the disregard of certain amounts, must not exceed the monthly SSI/SSP benefit amount, and resources – not including one’s primary residence or car, among certain other items – must not be valued at more than $2,000 for an individual and $3,000 for a couple.) If eligible for SSI, a recipient is automatically eligible for SSP. SSI is funded by the federal government and provided through an approved application to the Social Security Administration (SSA), while SSP is paid for using state General Fund dollars.

SSI/SSP grant amounts vary based on a number of different factors, including: whether a recipient is aged, blind, or living with disabilities, the individual’s or couple’s living arrangements, a recipient’s marital status, and whether or not a recipient is a minor. Currently, for the most commonly used payment standard, the SSI/SSP maximum grant levels are $910.72 ($160.72 of which is SSP) per month for an individual and $1,532.14 ($407.14 of which is SSP) per month for couples.  The estimated average monthly SSI/SSP caseload for the state for 2017-18 is 1.25 million cases. Of these cases, 865,685 people file as individuals and 214,432 people file as couples; there are also 165,717 children with disabilities who receive SSI/SSP. Recipient totals broken out by claim type are as follows: 356,379 aged, 17,417 blind, and 872,038 living with disabilities.

In order to receive Medicaid reimbursement from the federal government, states must provide an SSP in an amount that maintains, at the least, the level of payment that the state made in 1983. The SSA adjusts the SSI portion of the grant each year using the Consumer Price Index (CPI).  This federal COLA is passed through to SSI/SSP recipients in California, which allows the SSP portion of the grants to remain at the minimum level allowed under federal law for individuals and couples, thereby allowing the state to maintain its federal Medicaid funding. California used to apply a COLA to the SSP amount; however, this practice was made inoperative as part of the 2009-10 Budget Act. AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, included a one-time cost-of-living increase to the SSP beginning January 1, 2017, that is equal to the California Necessities Index (CNI) of 2.76%.  This resulted in the SSI/SSP monthly maximum grant amounts increasing by $4.32 for individuals and $10.94 for couples.

Need for this bill: While the current SSI/SSP maximum monthly payment amount for married couples of $1,532.14 represents 111.7% of the Federal Poverty Level, the maximum amount for individuals ($910.72) represents only 90% of the Federal Poverty Level – in dollars, this payment amount falls $100.95 below the federal monthly poverty threshold for a household of one. This means that individuals who are aged, blind, or living with disabilities, and who rely on SSI/SSP as a sole source of income, are living in poverty per the traditional federal measure, which doesn’t take into account the high cost of living in many areas of California, or other factors. Married couples who rely on SSI/SSP live with an income just above this federal poverty line.

According to the author,

“The current SSI/SSP grants are inadequate for a person to live on especially given California’s high cost of living. Without an increase in the SSP grant these individuals risk homeless and, face hunger which leads to poor health.

The state has saved an estimated $10 billion from these cuts that began in 2009. We have restored every major program in the budget except SSP grants. The Governor proposes to fully fund California’s rainy-day cash reserve fund to $13.5 billion, the largest cash reserve in state history. Furthermore, the Legislative Analyst Office is projecting a $3.6 billion budget surplus this year. Given the state surplus it’s time to restore the SSP grant amount. This restoration will help protect these vulnerable populations, and more importantly, provide them with the right to live with dignity, not in poverty.

Furthermore, this is an investment not a cost. It’s a solution to our senior housing crisis, it deters homeless, and prevents poor nutrition which leads to poor health outcomes that further strains the state’s other safety net programs. By investing in our seniors and disabled by bringing the SSI/SSP grant amount to the federal poverty level--ultimately saves the state money.”

Recommended amendments: In order to ensure that the provisions of this bill are not interpreted in such a way as to reduce an individual’s or married couple’s SSI/SSP payment in future years, committee staff recommends the following amendments beginning on line 17 of page 2 of the bill:

15

(c) This section is not intended to result in the reduction of any

16

payment provided to an individual that exceeds 100 percent of the

17

2018 federal poverty level for a household of one during the 2019 any

18

calendar year.

19

(d) This section is not intended to result in the reduction of any

20

payment provided to a married couple that exceeds 100 percent

21

of the 2018 federal poverty level for a household of two during

22

the 2019 any calendar year.

PRIOR LEGISLATION:

AB 796 (Kalra), 2017, was similar to this bill and would have reinstated the annual SSP COLA and required the maximum aid payment for SSI/SSP to be indexed to specified percentages of the federal poverty level. It died in the Assembly Appropriations Committee.

AB 1584 (Brown), 2016, would have reinstated the SSP COLA. It was vetoed by the Governor.

AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, included a one-time cost-of-living increase to the SSP beginning January 1, 2017, that is equal to the CNI of 2.76%.

AB 474 (Brown), 2015, would have, beginning with the 2015-16 fiscal year, required the state maximum SSP grant for individuals to be annually adjusted and increased such that the maximum SSI/SSP combined payment would have equaled 112% of the federal poverty level. It died in the Assembly Budget Committee pursuant to Article IV, Sec. 10 (c) of the Constitution.

REGISTERED SUPPORT / OPPOSITION:

Support

AARP

Alameda County Community Food Bank

American Civil Liberties Union of California

California Association of Area Agencies on Aging (C4A)

California Catholic Conference

California Council of the Blind

California Food Policy Advocates

California Immigrant Policy Center

Children’s Defense Fund

Choice in Aging

Coalition of California Welfare Rights Organizations

Disability Rights California

Ensuring Opportunity Campaign to End Poverty in Contra Costa

Food Bank of Contra Costa and Solano

Food For People, Food Bank for Humboldt County

Indivisible East Bay

Justice in Aging

National Association of Social Workers, CA Chapter

San Francisco Senior and Disability Action

Serving Seniors

SF-Marin Food Bank

St. Anthony Foundation

State Council on Developmental Disabilities

UDW/AFSCME Local 3930

Opposition

None on file.

Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089