Under existing law, the Department of Rehabilitation is required to provide various services to individuals with physical or mental disabilities who are found to be eligible therefor, including independent living services. Existing law provides for the operation of independent living centers, which are private, nonprofit organizations that provide specified services to individuals with disabilities, in order to assist those individuals in their attempts to live fuller and freer lives outside institutions. Under existing law, the department has the responsibility and authority for the encouragement of the planning, developing, and funding of independent living centers.

Under existing law, each independent living center, except those centers that have been both established and maintained using specified federal funding as a primary base grant, is required to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the department.

This bill would delete the above exception for centers that were previously established and maintained with federal funding, thereby requiring those centers to also receive at least $235,000 in base grant funds allocated by the department. The bill would make related findings and declarations.

Under existing law, the Department of Rehabilitation is required to provide various services to individuals with physical or mental disabilities who are found to be eligible therefor, including independent living services. Existing law provides for the operation of independent living centers, which are private, nonprofit organizations that provide specified services to individuals with disabilities, in order to assist those individuals in their attempts to live fuller and freer lives outside institutions. Under existing law, the department has the responsibility and authority for the encouragement of the planning, developing, and funding of independent living centers.

Under existing law, each independent living center, except those centers that have been both established and maintained using specified federal funding as a primary base grant, is required to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the department.

This bill would delete the above exception for centers that were previously established and maintained with federal funding, thereby requiring those centers to also receive at least $235,000 in base grant funds allocated by the department.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 763 (Salas) - Independent Living Centers: funding

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 763 would permit all independent living centers (ILCs), including three that were previously excluded, to receive $235,000 in base grant funding annually.

Fiscal Impact:

Starting in FY 2018-19, ongoing costs to the Department of Rehabilitation (DOR) of $705,000 per year to provide three ILCs with $235,000 in base grant funding. (Federal/GF)

Background:

An ILC is a consumer‑controlled, community‑based, cross‑disability, nonresidential private nonprofit agency that is designed and operated within a local community by individuals with disabilities and provides an array of independent living services. There are 28 ILCs in California that serve at least 22,000 individuals per year. The centers are overseen and funded by DOR with total statewide funding of $20 million.

The ILCs have several different funding sources. Title VII of the Rehabilitation Act established a framework for the creation and funding of ILCs across the nation. Federal Title VII(c) moneys flow directly to ILCs based on specific contracted agreements. Each ILC receives a standard $70,000 grant for assistive technology, and some ILCs that have taken on additional responsibilities typically receive more Title VII(c) funding.

Existing state law provides that each ILC is required to receive at least $235,000 in base grant funding allocated by DOR, except those centers that have been established and maintained using Title VII(c) funding. Three ILCs in California (the Disability Resources Agency for Independent Living, the Independent Living Center of Kern County, and the Placer Independent Resources Services, Inc) were established with larger Title VII(c) grants instead of the state base funding which was provided to other ILCs. All California ILCs receive Title VII(c) grants of varying amounts.

Though the three ILCs that are exempted from the state base grant receive larger federal grants than many of the other ILCs, because they are solely funded with federal funds, they receive among the least total funding of the 28 ILCs.

Proposed Law:

This bill would:

• Strike language excluding ILCs which have been established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act as their primary base grant from receiving base funding of $235,000 and requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000.
• Strike related language requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000.

Related Legislation:

AB 2565 (Salas, 2016) was substantially similar to this bill, but contained a technical difference in funding methodology. That bill was held in the Senate Appropriations Committee.

SB 826 (Leno, Chapter 23, Statutes of 2016), the State Budget Act of 2016-17, among other things, allocated $705,000 in base allocations from the state general fund to Independent Living Centers.

AB 204 (Bates, Chapter 191, Statutes of 1979) authorized DOR to provide each ILC with $235,000 annually, with the exception of the three ILCs which were established and maintained using specific federal funding as base funding.

Staff Comments:

Staff notes that the Budget Acts of 2016-17 and 2017-18 included $705,000 in funding to support the three ILCs covered in this bill (though the funding was not originally included in the Governor’s 2017-18 State Budget proposal). The funding formula in the Budget Acts was not altered, which this bill seeks to do. The author seeks to permanently enable the three ILCs to receive base funding from the State General Fund or from federal reimbursements, as the other ILCs receive.

AB 2565 in 2016 also attempted to permanently allocate $705,000 in base funding for the three ILCs; however, the language of that bill would have required the state to fund all the ILCs from federal reimbursements, which is not allowable. This bill would strike language excluding the three ILCs from receiving state base funding while maintaining the language that permits the reimbursement to be used for this purpose.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: AB 763

Subject: Independent Living Centers: funding

SUMMARY

This bill deletes provisions in current law that make an Independent Living Center (ILC) eligible for state funding only under certain circumstances, thereby permitting three of the state’s 28 ILCs to receive the same $235,000 in state base funding annually that the others receive.

ABSTRACT

Existing law:

1. Declares that individuals with disabilities comprise a large percentage of California’s total population and that action is necessary to assist these individuals in their attempts to live fuller and freer lives outside of institutions. Further declares that in order to achieve this, it is necessary to provide state funding to maintain the services provided by existing ILCs and, where feasible, encourage the establishment of new centers which provide services to individuals with disabilities. (WIC 19800)
2. Defines an ILC to be a private, nonprofit organization with a board of directors controlled by a majority of individuals with disabilities and staffed by persons trained to assist persons with disabilities in achieving social and economic independence. Further defines the duties and philosophy of an ILC. (WIC 19801)
3. Requires that each ILC, except those centers which have been both established and maintained using federal funding under the federal Rehabilitation Act of 1973 as their primary base grant, shall receive at least $235,000 in base grant funds allocated by the Department of Rehabilitation (DOR), as specified. Requires that DOR allocate to those centers with Title VII(c) base grant funds of less than $235,000 an amount that, when combined with the federal Title VII(c) grant, equals $235,000 (WIC 19806)
4. Permits state funds used to fund the base grant to be replaced by reimbursements under the Supplemental Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI) programs, as defined, to the extent appropriated by the Legislature and allocated by the department to ILCs, as specified. (WIC 19806 (c))
5. Establishes funding formulas for dispersing incentive funds to ILCs, including the requirement that one grant formula is based on the amount of private funding an ILC has received, as specified. (WIC 19806 (d))
6. Prohibits any funding for the base grant be based on receipt of private funding to an ILC. (WIC 19806 (a))

This bill:

1. Makes a variety of uncodified Legislative findings and declarations including that independent living is a vested civil right under federal and state law, that it is a viable alternative to significantly more costly institutionalization in nursing homes and other settings, and that there currently is a large difference in the amount of funding that each of the California ILCs receives.
2. Strikes language excluding ILCs which have been established and maintained using federal funding under title VII(c) of the federal Rehabilitation Act as their primary base grant from receiving base funding of $235,000 from the DOR.
3. Strikes related language requiring DOR to fund those ILCs with the difference of the funding from the federal VII(c) allocation and $235,000.

FISCAL IMPACT

An analysis by the Assembly Appropriations Committee identified ongoing costs to DOR of $705,000 per year to provide three ILCs with $235,000 in base grant funding. (Federal/GF). The analysis also noted that the 2016-17 Annual Budget Act included $705,000 in funding to support the three ILCs covered in this bill. The 2017-18 State Budget also included $705,000 for the three ILCs.

BACKGROUND AND DISCUSSION

Purpose of the bill:

According to the author, a longstanding funding inequity has excluded three ILCs – serving 10 counties – from receiving state funding. “This modest investment will allow three unfunded Independent Living Centers to reduce backlogs and more efficiently provide services to individuals with disabilities and their families,” the author states.

Background

The DOR serves approximately 120,000 people annually with a total budget of approximately $435 million. About $370 million comes from federal sources, according to the agency’s 2016 annual report.^[1]

DOR’s primary focus is its vocational rehabilitation (VR) program, which provides job-seeking consumers with disabilities with support to prepare for, find and retain employment. VR services may include career assessment and counseling, help with job search, preparation with interview skills, independent living skills, training, career education and assistive technology. The VR program is not an entitlement. If demand exceeds the number of available VR slots, the state may institute an “Order of Selection,” per federal statute, which it has done for the past several years. A new order of selection takes effect July 1, 2017. An order of selection permits DOR to create a waiting list for services but imposes a priority order based on the degree of disability of the applicant.

Independent Living Centers (ILCs)

An ILC is a consumer-controlled, community-based, nonresidential private nonprofit agency that is designed and operated within a local community by individuals with a range of disabilities, according to DOR. In California, 28 ILCs served more than 22,000 individuals statewide in FY 2015-2016 with total statewide funding of $19 million. Each center offers five core services that are mandated by the federal Rehabilitation Act of 1973, including cross-disability peer support, independent living skill development, advocacy and systems advocacy, information and referrals, assistive technology services and transition services. California added two core services: personal assistance services and housing.

In order to be certified to become an ILC and to receive state and federal funding, DOR must affirm that 51 percent of the ILC’s board is comprised of people with significant disabilities, the majority of decision makers in the organization are persons with disabilities and that specific core services are provided. The California Foundation for Independent Living Centers (CFILC), which represents 23 of the state’s 28 nonprofit ILCs, notes that there is “an enormous difference in the amount of funding” across all ILCs.

Existing law requires each ILC to receive at least $235,000 in base grant funds allocated by DOR, but excludes those centers established and maintained using specified federal funding as base funding. Three ILCs were established with federal title VII(c) funding and have therefore been excluded from receiving the annual $235,000 in state funding. The affected ILCs are the Independent Living Center of Kern County, which serves that county, Disability Resource Agency for Independent Living (DRAIL), which serves Amador, Calaveras, Tuolumne, Mariposa, Stanislaus, and San Joaquin Counties, and Placer Independent Living Resources, which serves Placer, El Dorado, and Alpine Counties.

Although these three centers receive larger federal grants than any of the other ILCs, over time funding inequities have arisen because the three funded solely with federal funds have received fewer cost of living adjustments.

Funding streams

ILCs receive funding in several ways. Those centers with a base allocation from the state may receive $235,000 from the general fund, although the statute permits the base funding to be paid for through reimbursements from the federal Social Security Administration (SSA) in lieu of general fund. Typically base funding comes from the SSA, which pays incentive funds to states for finding and maintaining a consumer in a job for nine months. Federal regulations say the reimbursement funds must be used for vocational rehabilitation but it is discretionary for the states to allocate. According to data provided by DOR, the total funding for ILCs in 2016-2017 ranged from $399,005 in Eureka’s Tri-County Independent Living Inc., center to $1.2 million at the Dayle McIntosh Center for the Disabled in Anaheim.

Federal Title VII(c) dollars flow directly to ILCs from the federal government based on specific contracted agreements for services. ILCs that have taken on additional responsibilities typically have more Title VII(c) funding. Each of the 28 ILCs receives a standard $70,000 grant for assistive technology. Seymour Incentive Grants are used to federally match fundraising dollars that each ILC raises. Funding through the Title VII(c) allocation is based on contracted service delivery obligations and ranges broadly from center to center and from year to year. These funding amounts fluctuate annually, and various ILCs may receive more or less than others in any given year. In 2016-2017 for example, the range of Title VII(c) funding was $68,088 for Tri-County ILC to $531,840 allocated to DRAIL in 2016-2017.

DOR notes that the three centers without state funding were established with large Title VII(c) grants instead of the state base funding which was provided to the other ILCs. Today, DOR notes all ILCs receive Title VII(c) grants of varying amounts. Because the federal government may award the VII(c) funds based upon a variety of reasons, including on need and the compelling justification of an ILC, some ILCs receive more federal funding than others, including some of the three ILCs that are not eligible for the base funding under current law.

Independent Living Center of Kern County

The ILC of Kern County was established more than 30 years ago. The center recently added two programs – an American Sign Language interpretation service, and a technology assistance program for older individuals who are blind. The ILC of Kern County reports that more than 30 percent of Kern County’s population lives with a disability. The organization’s website notes that more than 90 percent of the ILC’s staff is people with disabilities. The center received $334,485 in federal VII-C funds in 2016-2017 and total state and federal funds of $747,641.

Disability Resource Agency for Independent Living (DRAIL)

DRAIL has been serving people with disabilities in Stanislaus County for 25 years, assisting more than 6,000 consumers to establish goals and objectives to achieve reach independence. DRAIL has provided more than 40,000 information and referral resources to consumers and the community in general. According to the agency’s website, since 2001 DRAIL has transitioned 96 consumers from nursing homes into their own home. DRAIL received $531,840 in federal VII(c) funding in 2016-2017 and $985,408 in total state and federal funds.

Placer Independent Resource Services

The Auburn-based Placer Independent Resource Services serves individuals in Alpine, El Dorado, and Placer Counties. According to the agency’s website, the ILC advocates for the rights of people with disabilities, educates the community about disability issues, empowers and provides services to persons with disabilities to live independent, productive lives. Any person with a disability is eligible for free services. The Placer ILC received $325,298 in federal VII(c) funding in 2016-2017, and $700,887 in total state and federal funds.

Related legislation:

AB 2565 (Salas, 2016) was substantially similar to this bill, however it contained technical differences in funding methodology. It was held in the Senate Appropriations Committee.

AB 204 (Bates, Chapter 191, Statutes of 1979) authorized the DOR to provide each ILC with $235,000 annually, with the exception of the three ILCs which were established and maintained using specific federal funding as base funding.

COMMENTS

While the Budget Acts of 2016-2017 and 2017-18 included $235,000 each for these three ILCs, it did not alter the funding formula, which this bill seeks to do. The author seeks to permanently enable the three ILCs to receive base funding from the state General Fund or from federal reimbursements, as the other ILCs receive.

AB 2656 in 2016 similarly attempted to permanently allocate $235,000 in base funding to these three ILCs, however language of that bill would have required the state to fund all the ILCs from federal reimbursements, which is not allowable. This bill restores the language that permits the reimbursements to be used for this purpose, and simply strikes language excluding the three ILCs from the state funding formula that the others receive.

PRIOR VOTES

POSITIONS

Support:

Bakersfield A.R.C (BARC)

California State Independent Living Council

Central Coast Center for Independent Living

Disability Rights California

Golden Empire Transit District

Goodwill Industries of South Central California

H.E.A.R.T.S. Connection FRC/FEC

Independent Living Center of Kern County

Independent Living Resources of Solano & Contra Costa Counties

Jay L. Rosenlieb of Klien, DeNatale, Goldner, Attorneys at Law

Marin Center for Independent Living

New Advances for People with Disabilities

The California Foundation for Independent Living Centers

The Center for Independence of Individuals with Disabilities

The Mental Health Collaborative of Kern County

The VOICED Coalition

Oppose:

None received.

-- END --

1. http://www.dor.ca.gov/Public/Annual-Reports/DOR-2016-Annual-Report-Final.pdf ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 763

Author:(Salas)

As Amended Ver:April 17, 2017

Majority vote

SUMMARY: Requires each Independent Living Center (ILC) to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the Department of Rehabilitation (DOR). Specifically, this bill:

1. Makes Legislative findings and declarations related to the ILC funding history.
2. Deletes the current exemption in state law for ILCs that were established and maintained by federal funding under Title VII (c) the federal Rehabilitation Act of 1973 from the mandate that all ILCs receive at least $235,000 in base grant funds to the extent funds are appropriated by the Legislature.
3. Deletes the requirement that the DOR must allocate additional funds to ILCs receiving Title VII(c) base grant funds such that the sum of those additional funds and the Title VII(c) funds equal $235,000.
4. Makes technical changes.

EXISTING LAW:

1. Establishes the federal Rehabilitation Act, which, among other things, empowers individuals with disabilities to maximize employment, economic self-sufficiency, self-determination, independence, inclusion and integration into society through statewide workforce investment systems, independent living centers and services, research, training, demonstration projects and the guarantee of equal opportunity. (29 United States Code (U.S.C.) 701 et seq.)
2. Establishes the Department of Rehabilitation (DOR) within the California Health and Human Services Agency, and designates DOR the sole state agency charged with administration of the state plan for vocational rehabilitation services. (Welfare and Institutions Code (WIC) 19000 et seq.)
3. Requires DOR to oversee the Independent Living Services Program and the state's 28 ILCs for the purpose of helping people with disabilities live fuller and freer lives outside of institutions. (WIC 19751, 19800 et seq.)
4. Allocates base grant funding of $235,000 to each ILC, with the exception of those centers established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act of 1973. (WIC 19806)

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in ongoing costs to the Department of Rehabilitation (DOR) of $705,000 per year to provide three ILCs with $235,000 in base grant funding (Federal/General Fund).

Staff notes: The 2016-17 Annual Budget Act included $705,000 in funding to support the three ILCs covered in this bill. The Governor's 2017-18 State Budget proposal, however, eliminated the $705,000 included in the 2016-17 Budget Act, noting that these particular ILCs receive a larger share of federal Independent Living Discretionary Grant Program funds than other centers. The Assembly Budget Subcommittee on Health and Human Services voted to reject the proposal to cut the $705,000 from the budget.

COMMENTS:

Department of Rehabilitation (DOR): DOR operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014 and, as such, administers programs funded with federal and matching state dollars. According to the U.S. Department of Education, vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through the DOR's cooperative program agreements. For every $1 in funds the state contributes, the DOR receives $4 in federal funds. The DOR's overall budget for fiscal year 2016-2017 is $445.1 million; of that, $61 million is from the General Fund.

Independent Living Centers: Title VII of the Rehabilitation Act – Independent Living Services and Centers for Independent Living – established a framework for the creation and funding of ILCs across the nation. California currently has 28 ILCs which provide services to people with disabilities, enabling them to remain in their own homes and communities by supporting projects and activities carried out in a manner consistent with the principles of respect for individual dignity, personal responsibility, and self-determination. Additionally, ILCs support the pursuit of meaningful careers, based upon informed choice of individuals with disabilities. An ILC is a consumer-centered, community-based, non-residential, private non-profit entity that is designed and operated within a local community by individuals with disabilities. Currently, California has 28 ILCs which serve approximately 100,000 California residents.

AB 204: In 1979, the State of California passed AB 204 (Bates), Chapter 191, Statutes of 1979, which authorized the Department of Rehabilitation to provide each ILC with $235,000 annually, with the exception of three specific centers, as they were already receiving large funding grants from the federal government. These centers are the Independent Living Center of Kern County (ILCKC), Disability Resource Agency for Independent Living (DRAIL), and Placer Independent Living Resources.

Federally funded ILCs: In 1984, the three aforementioned ILCs applied directly for Title VII funding in order to meet the needs of their consumers. Because these particular ILCs received funding from the federal government and not the state, they were subject to the waxing and waning of Congressional appropriation of funds. The remaining ILCs were funded by the State (and some federal dollars), and received cost of living adjustments (COLAs) over time such that there arose funding inequities between ILCs funded by both the state and the federal government and ILCs funded solely by the federal government. Today, DRAIL, ILCKC, and Placer Independent Living Resources are among the lowest-funded ILCs in the state, receiving an annual total in Title VII federal funds for fiscal year 2016-17 of $531,840, $334,485, and $325,298 respectively, according to DOR. Still, due to initially seeking federal funds instead of state funds, these three ILCs have larger federal grants than any other ILC that has since applied for and received federal funds in order to meet the needs of their consumers

Need for this bill: According to the author's office, "Independent Living Centers play a vital role in serving people with various disabilities. The state's system of 28 ILCs promote the social and economic achievements of individuals with disabilities through employment, housing, technology, and advocacy services. A longstanding funding inequity has excluded three ILCs from receiving state funding, forcing the centers to struggle to provide services. Beginning in the 2017-18 fiscal year, the state's 28 ILCs will not be equally funded. Three of the state's ILCs, which serve a total of ten counties and thousands of individuals with disabilities, will receive zero state funding. [This bill] amends [current law] to allow all 28 ILCs to receive equal minimum state funding. This modest investment will allow three unfunded Independent Living Centers to reduce backlogs and more efficiently provide services to individuals with disabilities and their families."

Staff comments: AB 204 was initially passed in 1979 in order to provide base funding across the board and ensure foundational equity among ILCs. However, despite the funding inequities between the three ILCs in question and the remaining 25 ILCS, it has been acknowledged that the ILC system as a whole is in need of additional funding in order to meet the needs of its consumers. To ensure equitable funding across the ILC system, it has been suggested that the State of California first consider all federal grants received by each ILC, and then appropriate State funds according to each ILCs individual funding needs. While DRAIL, ILCKC and Placer Independent Living Resources are among the lowest-funded ILCs, some ILCs do receive less total annual funding, and others receive similar allocations; all would certainly benefit from additional funding, be they state or federal dollars. Most notably, Marin Center for Independent Living has an annual budget of $439,473, and Tri-County Independent Living Center, Inc., has an annual budget of $399,005; each of these ILCs receive the $235,000 state grant, but only receive federal funding of $69,873 and $68,088, respectively. Should this bill move forward, the author may wish to consider the effects of this bill on the remaining ILCs, and seek to address issues of equity across all 28 centers.

PRIOR LEGISLATION:

AB 2565 (Salas) 2016, was substantially similar to this bill and included ILCs that were previously excluded due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973 among ILCs that are required to receive at least $235,000 in base grant funds, as specified. This bill was held on the Senate Appropriations suspense file.

AB 204 (Bates), Chapter 191, Statutes of 1979, provided state funding to maintain the services offered by existing independent living centers and encouraged the establishment of new centers to provide services to individuals with disabilities.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0000775

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 763

Author:(Salas) – As Amended Ver:April 17, 2017

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

SUMMARY:

This bill includes independent living centers (ILCs) that were previously excluded, due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973, among ILCs that are required to receive at least $235,000 in base grant funds, as specified.

FISCAL EFFECT:

Ongoing costs to the Department of Rehabilitation (DOR) of $705,000 per year to provide three ILCs with $235,000 in base grant funding. (Federal/GF)

Staff notes: The 2016-17 Annual Budget Act included $705,000 in funding to support the three ILCs covered in this bill. The Governor's 2017-18 State Budget proposal, however, eliminated the $705,000 included in the 2016-17 Budget Act, noting that these particular ILCs receive a larger share of federal Independent Living Discretionary Grant Program funds than other centers. On March 8, 2017, the Assembly Budget Subcommittee on Health and Human Services (Sub1) voted to reject the proposal to cut the $705,000 from the budget. A vote on this item is pending in the Senate Budget Subcommittee (Sub 3).

COMMENTS:

1. Purpose. According to the author’s office, “A longstanding funding inequity has excluded three ILCs from receiving state funding, forcing the centers to struggle to provide services. Beginning in the 2017-18 fiscal year, three of the state’s ILCs, which serve a total of ten counties and thousands of individuals with disabilities, will receive zero state funding. [This bill] amends [current law] to allow all 28 ILCs to receive equal minimum state funding. This modest investment will allow three unfunded Independent Living Centers to reduce backlogs and more efficiently provide services to individuals with disabilities and their families.”
2. Background. DOR, which operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014, administers programs funded with federal and matching state dollars. Vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through DOR’s cooperative program agreements. For every $1 in funds the state contributes, DOR receives $4 in federal funds. The DOR’s overall budget for FY 2016-2017 is $445.1 million ($61 GF).
3. Independent Living Centers: Title VII of the Rehabilitation Act established a framework for the creation and funding of ILCs across the nation. ILCs serve people who have physical, sensory, cognitive, and mental health disabilities. The state’s 28 centers, serving approximately 100,000 California residents, help promote the social and economic achievements of individuals with disabilities by providing employment, housing, technology, and advocacy services.

Existing law provides that each ILC is required to receive at least $235,000 in the base grant funds allocated by DOR, except those centers established and maintained using specified federal funding as base funding. Three ILCs were established with federal funding and have therefore been excluded from receiving the annual $235,000 in state funding. The affected ILCs include:

1. Independent Living Center of Kern County (ILCKC), which serves Kern County and receives $334,485 in federal funds;
2. Disability Resource Agency for Independent Living (DRAIL), which serves Amador, Calaveras, Tuolumne, Mariposa, Stanislaus, and San Joaquin Counties and receives $531,840 in federal funds; and
3. Placer Independent Living Resources, which serves Placer, El Dorado, and Alpine Counties and receives $325,298 in federal funds.

Although these three centers receive larger federal grants than any of the other ILCs, over time funding inequities have arisen because the three funded solely with federal funds have received fewer cost of living adjustments. Today, they are among the lowest funded ILCs in the state.

1. Prior Legislation.

AB 2565 (Salas), of the 2015-16 Legislative Session, was substantially similar to this bill and included ILCs that were previously excluded due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973 among ILCs that are required to receive at least $235,000 in base grant funds. That bill was held on the Senate Appropriations Committee's Suspense File.

AB 204 (Bates), Chapter 191, Statutes of 1979, authorized the DOR to provide each ILC with $235,000 annually, with the exception of the three ILCs which were both established and maintained using specific federal funding as base funding.

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

Date of Hearing: March 21, 2017

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Blanca Rubio, Chair

ABPCA Bill Id:AB 763 (

Author:Salas) – As Introduced Ver:February 15, 2017

SUBJECT: Independent Living Centers: funding

SUMMARY: Requires each Independent Living Center (ILC) to receive, to the extent funds are appropriated by the Legislature, at least $235,000 in base grant funds allocated by the Department of Rehabilitation (DOR).

Specifically, this bill:

1. Deletes the current exemption in state law for ILCs that were established and maintained by federal funding under Title VII (c) the federal Rehabilitation Act of 1973 from the mandate that all ILCs receive at least $235,000 in base grant funds to the extent funds are appropriated by the Legislature.
2. Deletes the requirement that the DOR must allocate additional funds to ILCs receiving Title VII(c) base grant funds such that the sum of those additional funds and the Title VII(c) funds equal $235,000.
3. Makes technical changes.

EXISTING LAW:

1. Establishes the federal Rehabilitation Act, which, among other things, empowers individuals with disabilities to maximize employment, economic self-sufficiency, self-determination, independence, inclusion and integration into society through statewide workforce investment systems, independent living centers and services, research, training, demonstration projects and the guarantee of equal opportunity. (29 U.S.C. 701 et seq.)
2. Establishes the Department of Rehabilitation (DOR) within the California Health and Human Services Agency, and designates DOR the sole state agency charged with administration of the state plan for vocational rehabilitation services. (WIC 19000 et seq.)
3. Requires DOR to oversee the Independent Living Services Program and the state's 28 ILCs for the purpose of helping people with disabilities live fuller and freer lives outside of institutions. (WIC 19751, 19800 et seq.)
4. Allocates base grant funding of $235,000 to each ILC, with the exception of those centers established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act of 1973. (WIC 19806)

FISCAL EFFECT: Unknown.

COMMENTS:

Department of Rehabilitation (DOR): DOR operates under the California Health and Human Services Agency and in accordance with the federal Rehabilitation Act of 1973, as amended by Title IV of the Workforce Innovation and Opportunity Act of 2014 and, as such, administers programs funded with federal and matching state dollars. According to the U.S. Department of Education, vocational rehabilitation services are funded with 78.7% federal dollars and 21.3% matching funds, part of which are provided by the state General Fund and part by public agencies through the DOR’s cooperative program agreements. For every $1 in funds the state contributes, the DOR receives $4 in federal funds. The DOR’s overall budget for fiscal year 2016-2017 is $445.1 million; of that, $61 million is from the General Fund.

Independent Living Centers: Title VII of the Rehabilitation Act – Independent Living Services and Centers for Independent Living – established a framework for the creation and funding of ILCs across the nation. California currently has 28 ILCs which provide services to people with disabilities, enabling them to remain in their own homes and communities by supporting projects and activities carried out in a manner consistent with the principles of respect for individual dignity, personal responsibility, and self-determination. Additionally, ILCs support the pursuit of meaningful careers, based upon informed choice of individuals with disabilities. An ILC is a consumer-centered, community-based, non-residential, private non-profit entity that is designed and operated within a local community by individuals with disabilities. Currently, California has 28 ILCs which serve approximately 100,000 California residents.

AB 204: In 1979, the State of California passed AB 204 (Bates), Chapter 191, Statutes of 1979, which authorized the Department of Rehabilitation to provide each ILC with $235,000 annually, with the exception of three specific centers, as they were already receiving large funding grants from the federal government. These centers are the Independent Living Center of Kern County (ILCKC), Disability Resource Agency for Independent Living (DRAIL), and Placer Independent Living Resources.

Federally funded ILCs: In 1984, the three aforementioned ILCs applied directly for Title VII funding in order to meet the needs of their consumers. Because these particular ILCs received funding from the federal government and not the state, they were subject to the waxing and waning of Congressional appropriation of funds. The remaining ILCs were funded by the State (and some federal dollars), and received cost of living adjustments (COLAs) over time such that there arose funding inequities between ILCs funded by both the state and the federal government and ILCs funded solely by the federal government. Today, DRAIL, ILCKC, and Placer Independent Living Resources are among the lowest-funded ILCs in the state, receiving an annual total in Title VII federal funds for fiscal year 2016-17 of $531,840, $334,485, and $325,298 respectively, according to DOR. Still, due to initially seeking federal funds instead of state funds, these three ILCs have larger federal grants than any other ILC that has since applied for and received federal funds in order to meet the needs of their consumers

Governor’s budget proposal: In 2016-17, the Legislature passed and the Governor signed the Annual Budget Act which included $705,000 in funding in order to provide support for three ILCs, specifically, DRAIL, ILCKC, and Placer Independent Living Resources. On January 10, 2017, Governor Brown released the proposed 2017-18 State Budget Proposal, which included the elimination of the $705,000 included in the 2016-17 Budget Act, citing the fact that these particular ILCs receive a larger share of federal Independent Living Discretionary Grant Program funds than other centers. On March 8, 2017, the California Budget Subcommittee on Health and Human Services voted to reject the proposal to cut the $705,000 from the budget and maintain funding to these ILCs. A decision on this matter is pending the approval of the Legislature and signature of the Governor on the final Budget Act.

Need for this bill: According to the author’s office, “Independent Living Centers play a vital role in serving people with various disabilities. The state’s system of 28 ILCs promote the social and economic achievements of individuals with disabilities through employment, housing, technology, and advocacy services. A longstanding funding inequity has excluded three ILCs from receiving state funding, forcing the centers to struggle to provide services. Beginning in the 2017-18 fiscal year, the state’s 28 ILCs will not be equally funded. Three of the state’s ILCs, which serve a total of ten counties and thousands of individuals with disabilities, will receive zero state funding. [This bill] amends [current law] to allow all 28 ILCs to receive equal minimum state funding. This modest investment will allow three unfunded Independent Living Centers to reduce backlogs and more efficiently provide services to individuals with disabilities and their families.”

Staff comments: AB 204 was initially passed in 1979 in order to provide base funding across the board and ensure foundational equity among ILCs. However, despite the funding inequities between the three ILCs in question and the remaining 25 ILCS, it has been acknowledged that the ILC system as a whole is in need of additional funding in order to meet the needs of its consumers. To ensure equitable funding across the ILC system, it has been suggested that the State of California first consider all federal grants received by each ILC, and then appropriate State funds according to each ILCs individual funding needs. While DRAIL, ILCKC and Placer Independent Living Resources are among the lowest-funded ILCs, some ILCs do receive less total annual funding, and others receive similar allocations; all would certainly benefit from additional funding, be they state or federal dollars. Most notably, Marin Center for Independent Living has an annual budget of $439,473, and Tri-County Independent Living Center, Inc., has an annual budget of $399,005; each of these ILCs receive the $235,000 state grant, but only receive federal funding of $69,873 and $68,088, respectively. Should this bill move forward, the author may wish to consider the effects of this bill on the remaining ILCs, and seek to address issues of equity across all 28 centers.

PRIOR LEGISLATION:

AB 2565 (Salas) 2016, was substantially similar to this bill and included ILCs that were previously excluded due to receipt of funding under Title VII(c) of the federal Rehabilitation Act of 1973 among ILCs that are required to receive at least $235,000 in base grant funds, as specified. This bill was held on the Senate Appropriations suspense file.

AB 204 (Bates), Chapter 191, Statutes of 1979, provided state funding to maintain the services offered by existing independent living centers and encouraged the establishment of new centers to provide services to individuals with disabilities.

REGISTERED SUPPORT / OPPOSITION:

Support

BARC

California Association of Public Authorities for IHSS

California Foundation for Independent Living Centers

Central Coast Center for Independent Living

Common Ground

Disability Resource Agency for Independent Living

Disability Rights California

Golden Empire Transit District

Goodwill Industries of South Central CA

H.E.A.R.T.S. Connection FRC/FEC

Independent Living Center of Kern County

Independent Living Resource Center, Inc.

Independent Living Resources of Solano & Contra Costa Counties

Marin Center for Independent Living

Mental Health Collaborative of Kern County

Mother Lode Office of Catholic Charities

New Advance for People with Disabilities

VOICED Coalition

Opposition

None on file.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089