At its April 2, 2015 meeting, the Legislation Committee considered the recommendation from the In-Home Supportive Services (IHSS) Public Authority Advisory Committee to recommend a position of "Support" to the Board of Supervisors on the restoration and COLA increase of SSI/SSP funding. (See Attachment 2.) The Legislation Committee supported the recommendation from the IHSS Public Authority Advisory Committee, and recommends that the Board of Supervisors support the funding in the State Budget.  
  
Supplemental Security Income/State Supplementary Payment (SSI/SSP): One of the key attributes of the Social Security Act is the SSI/SSP combination program. The SSI portion of the program is a federally funded effort that provides income for those aged 65 or older, those who are blind or those who are disabled. California supplements the federal SSI payment with a State Supplementary Payment (SSP). Eligibility for both programs is determined by the Social Security Administration using the federal poverty level (FPL) as eligibility threshold. Benefits are in the form of cash assistance. About 1.3 million Californians receive SSI/SSP benefits. California's State SSP is $156.40. When combined with the federal benefit of $733, an individual could receive a total benefit of $889.40 with which to pay for housing, food, utilities, and transportation. In California, SSI recipients are ineligible for CalFresh/SNAP (Food Stamps) assistance.  
  
California once provided a Cost of Living Allowance (COLA) on the total SSI/SSP amount. This COLA was repealed in 2009. Since then, the state contributions to the SSI grant for individuals have declined from $233 a month down to the federal minimum of $156 a month, a $77 a month, per person, reduction.  
  
The issue of increasing the base grant for SSI/SSP and restore the COLA on the entire grant was considered at a special informational hearing of the Assembly Aging and Human Services Committee on March 17. (See Attachment 1.)  
  
Regarding the state COLA issue as it relates to SSI/SSP grants, in order to help clarify how the state COLA was applied historically (before it was eliminated beginning in state fiscal year 2010-11), when it was in effect, the state COLA was required to be calculated annually based on the year-over-year change in the California Necessities Index (CNI) The CNI reflects changes spending by low-income residents on food, clothing, fuel, utilities, rent, and transportation in two high-cost areas of the state: LA and the SF Bay Area.  
  
In contrast, the federal COLA is calculated based on the year-over-year change in the Consumer Price Index (CPI), a national measure of the change in prices paid by urban consumers for a "market basket" of goods and services. The California-specific CNI is typically larger than the national CPI.  
  
Since there used to be two different COLAs - a state one and a federal one - the key question is how did they interact when determining maximum SSI/SSP grant levels. Here is what state law required:  
  
1. A state COLA was calculated based on the total SSI/SSP grant. Let's say it works out to $30 per month for an individual grant.  
  
2. The state then took into account the amount of the federal SSI COLA. Let's say the SSI COLA comes to $12 per month for an individual grant.  
  
3. The state then subtracted the federal SSI COLA (#2) from the state COLA on the full SSI/SSP grant (#1) in order to determine the state's share of the total grant increase. In this case it would be $30 - $12 = $18 (the state's share of the monthly increase for an individual grant).  
  
The Legislative Analyst's Office (LAO) suggests that one choice for state policymakers would be to apply a state COLA solely to the state's SSP portion of the grant, rather than to the entire SSI/SSP grant. Applying the state COLA solely to the SSP grant would require a state law change since current law does not appear to authorize the state to base its adjustment on the SSP grant alone. However, applying a state COLA solely to the SSP portion would cost the state less simply based on the way the math works out.  
  
For additional information about the SSI/SSP cash grants, see Attachment 3, the LAO report of March 11, 2015.  
  
A bill related to this subject is currently making its way through the Legislature: AB 474 (Brown). See Attachment 4. This bill would requires the State maximum for the State Supplementary Program for the Aged, Blind and Disabled (SSP) grant for individual to be readjusted and increased so that the SSP payment and federal Social Security Income (SSI) payment, when combined, equals a specified percentage of the federal poverty level. Staff recommends that the Board of Supervisors also consider adopting a position of "Support" on this bill. AB 474 will be heard in Assembly Human Services Committee on 4/28/15.

Contra Costa County would not have a position on the bill.