Hearings on CalWORKs and Subsidized Child Care Budget Proposals Begin

Both the Senate and Assembly budget committees held hearings to examine Governor Brown’s proposed redesign of the CalWORKs program, reductions to CalWORKs grants, and, in the case of the Senate, proposed changes to subsidized child care programs. 

First, a quick recap of the Governor’s 2012-13 budget proposals regarding CalWORKs and subsidized child care: 

CalWORKs

The Governor proposes to restructure the CalWORKs program into two tracks: CalWORKs Basic and CalWORKs Plus, and to also create a new Child Maintenance Program. 

CalWORKs Basic would offer participants employment services and child care for up to 24 months, starting in October of this year. If a CalWORKs Basic participant maintains unsubsidized employment at specified levels (30 hours for adults and 20 hours for those with children under age 6), they would move to the CalWORKs Plus program. Also, the lifetime time limit for this phase would be 24 months and count toward the state’s 48-month time limit on aid.

CalWORKs Plus would offer ancillary employment services and a higher monthly grant level by offering a higher income disregard (first $200 earned and 50 percent of subsequent income). It would begin in April 2013. CalWORKs Plus participants would be eligible for up to 48 months, but if they continue working specified amounts, they may retain a higher earned income disregard (which can be used for child care services; see below). 

The Governor also proposes to replace the existing CalWORKs Child Only grants with a new “Child Maintenance Program,” which would provide grants to children but also reduce them by 27 percent ($70 a month). The new Child Maintenance Program would also require annual eligibility determinations and doctor visits for covered children. This program would start in October of this year. 

The Governor also wants to allow low-income families who receive CalFresh or child care subsidies who meet work participation requirements to receive a $50 monthly bonus payment. This proposal would allow the state to count these participants in the state’s Work Participation Rate, thereby boosting the state’s overall WPR number and potentially avoiding costly federal penalties. Counties potentially have a share of cost in any federal WPR penalties.

Subsidized Child Care
The Governor proposes replacing the current three-stage CalWORKs child care system by shifting eligibility determinations and payment functions for subsidized child care programs to counties in 2013-14. Recipients would be subject to Work Participation Rate requirements in the new “work-based” subsidized child care system, with counties applying federal income eligibility rules and welfare-to-work employment requirements. Families in the new child care structure who continue to meet federal work participation requirements will receive a $50 monthly work bonus. This proposal would be implemented in 2013-14 and affect 142,000 children, including eliminating 46,300 existing child care slots. 

The Governor also wants to switch subsidized child care eligibility from a measure of state median income (SMI) to 200 percent of the Federal Poverty Level (FPL). This would eliminate 15,700 existing child care slots. He also seeks to remove the statutory cost-of-living adjustment for capped non-CalWORKs child care programs to save $29.9 million in 2012-13.
In the Assembly, Assembly Member Holly Mitchell convened Assembly Budget Subcommittee No. 1 on Wednesday to examine the Governor’s CalWORKs proposals. Yolo County Supervisor Don Saylor testified at the hearing regarding his county’s and CSAC’s concerns with the complicated proposal and the potential effect on families in our communities. Assembly Mitchell concluded the hearing with a vote to revert the Earned Income Disregard back up to $225 and approve the Governor’s automation proposal for the WINS system, as well as add $2.5 million to the proposal to speed up the operation of that system. The committee also rejected the Governor’s CalWORKs redesign proposals and voted to defer other decisions related to CalWORKs until after the Governor’s May Revision budget is released. The Assembly Committee will hear issues related to subsidized child care on March 14. 

The Senate Budget and Fiscal Review Committee, chaired by Senator Mark Leno, convened their hearing yesterday to hear testimony on both the CalWORKs and subsidized child care proposals. The Committee heard from Bruce Wagstaff, Deputy Director of the Sacramento County Countywide Services Agency, who asked the committee to keep any CalWORKs redesign simple and recognize that unique life circumstances of the families counties serve. The Senate committee did not take action at this hearing and will wait instead to address these issues after the Governor releases the May Revision budget. 

To view CSAC’s joint letter with CWDA outlining our concerns with the CalWORKs program redesign and reductions, click here. 

Dual Demonstration Project Applications Released

The Department of Health Care Services received 22 applications from health plans in 10 counties in response to its Request for Solutions to develop Medicare-Medi-Cal integrated care delivery models.

DHCS will be reviewing these applications over the coming weeks and at the end of March expects to announce the health plans that will participate in the Dual Eligibles Demonstration.

All submitted applications have been posted online here.

The following is the list of the applications by county:

County                   Managed Care Type    Application(s)
Alameda               Two-Plan Model             Alameda Alliance for Health
                                                                         Anthem Blue Cross
Contra Costa       Two-Plan Model            Contra Costa Health Plan
Los Angeles        Two-Plan Model             L.A. Care 
                                                                         SCAN Health Plan
                                                                         Health Net
Orange                 Organized Health           System CalOptima
Riverside             Two-Plan Model             Inland Empire Health Plan
                                                                         Molina Healthcare 
                                                                         SCAN Health Plan
Sacramento        Geographic                     Managed Care Molina Healthcare
San Bernardino Two-Plan Model              Inland Empire Health Plan
                                                                         Molina Healthcare 
                                                                         SCAN Health Plan
San Diego           Geographic                     Managed Care Care 1st
                                                                         Community Health Group
                                                                         Health Net
                                                                         Molina Healthcare
                                                                         SCAN Health Plan
San Mateo           County Organized         Health Plan of San Mateo
                               Health System  
Santa Clara         Two-Plan Model            Anthem Blue Cross
                                                                        Santa Clara Health Plan

Feds Approves April 1 Start Date for New Adult Day Health Program

The federal Centers for Medicare and Medicaid Services (CMS) has approved California’s request to implement a new Medi-Cal adult day health care option called the Community-Based Adult Services (CBAS) program on April 1. 

The new CBAS program was created as part of a settlement between the state and advocates for the elderly and disabled, who had sued (Darling et al v. Douglas ) after the Legislature dismantled the current Medi-Cal Adult Day Health Care (ADHC) due to fiscal constraints. The new CBAS program will also be an optional benefit, and eligibility for the program will be more narrow than ADHC eligibility, as participants will need to have documented intensive health care needs. The CBAS program will provide medical and social services in a community based setting. 

For more information on the lawsuit, settlement, CMS approval, or structure of the new CBAS program, please visit the website.

Group of “Penn State” Mandated Child Abuse Reporter Bills Set for Hearing

A series of measures introduced in response to last year’s Penn State child sexual abuse scandal will be heard in the Assembly Public Safety Committee on March 6. 

AB 1434, by Assembly member Mike Feuer, would add higher education employees to the list of persons required to report suspected child abuse to law enforcement. 

AB 1435, by Assembly Member Roger Dickinson, would add athletic personnel to the list of persons required to report suspected child abuse to law enforcement. 

AB 1438, by Assembly Member Steven Bradford, would require those who suspect child abuse to report it to a peace officer. 
The County Welfare Directors Association is monitoring the measures and may seek amendments to clarify the persons who are obligated to report suspected abuse. CSAC has not yet taken a position on these measures, but will monitor the hearing and future amendments to ensure the workability for counties and to support efforts to respond to child abuse.