RECOMMENDATION(S): (CONT'D)
OPPOSE legislative and budgetary actions that result in reduced level of services to families, children, vulnerable adults and seniors, or that lead to preemption of local control.
SUPPORT an Increase to the CalWORKS Maximum Aid Payment (MAP) and the annual funding of a CalWORKS cost of living adjustment (COLA).
SUPPORT a revision of the budgeting methodology for the CalWORKS Single Allocation. The current methodology ties funding heavily to caseload, which can expand and contract quickly with economic changes. This can result in large variations of funding levels, and inability to respond to changing economic conditions in a timely manner.
2. AUTHORIZE the Chair of the Board to send advocacy letters aligned with these proposed amendments, including
Attachment A.
FISCAL IMPACT:
With respect to the Single Allocation, Contra Costa County expects to experience a $1.5 million decrease in funding, from $47.7 million to $46.2 million in FY 2018-2019. Advocating for an increase in funding may address this situation.
BACKGROUND:
The CalWORKs program is a critical component of California’s safety net for families with low incomes, providing families with modest monthly cash grants while helping parents overcome barriers to employment and find work. A number of cuts were made to CalWORKs during and after the Great Recession, including reducing grant levels and eliminating the annual state cost-of-living adjustment (COLA). Recent years’ budgets have incrementally increased CalWORKs grant levels, but this has not been adequate to restore cuts made in prior years.
The Governor’s January budget proposal includes a one-time augmentation of $187 million for the California Work Opportunity and Responsibility to Kids (CalWORKs) program Single Allocation, which is what the state provides to counties to administer the CalWORKs program. The overall funding for the Single Allocation is $31.8 million lower than in 2017-18; with the additional legislative requirements imposed in FY 2017-18, the total reduction in funding is $56.5 million. The 2017-18 budget required the Administration to work with the County Welfare Directors Association to revise the methodology for the Single Allocation. The revised methodology is needed to insulate counties and beneficiaries from experiencing huge swings in year-to-year funding levels for the single allocation. The conversations about the revised methodology are ongoing.
With respect to the Single Allocation, the cuts will affect direct services and staffing related to eligibility activities, employment and supportive services, and child care for CalWORKs families. Contra Costa County expects to experience a $1.5 million decrease in funding, from $47.7 million to $46.2 million in FY 2018-2019.
Furthermore, the Governor’s proposed budget for FY 2018-19 does not increase CalWORKs grants or reinstate the COLA. According to the California Budget & Policy Center, if grant levels remain frozen, the proposed maximum monthly grant for a family of three in a high cost county (such as ours) would be $9 lower than in 2007-08, without adjusting for inflation. If grant levels had been adjusted for inflation each year beginning 2007-2008, the maximum grant in 2018-19 would be $963, which is $269 higher than the proposed value of $714. Absent a significant grant increase in the 2018-19 fiscal year, this grant will equal just 41.2% of the federal poverty line, leaving it below the deep-poverty line for the eleventh calendar year.
Given the timing of the legislative hearings by the Budget Subcommittees on these issues and the cancellation of the March meeting of the County's Legislation Committee, this matter is being brought forward to the full Board of Supervisors for action so that advocacy by the County may be aligned with the Board's adopted position on these matters.