SENIOR ASSEMBLY PROPOSAL NO. 10

INTRODUCED BY SENIOR ASSEMBLY MEMBER LOH

LEGISLATIVE COUNSEL'S DIGEST

AP 10: SSI/SSP BENEFITS

UNDER EXISTING LAW, THE STATE SUPPLEMENTARY PROGRAM FOR THE AGED, BLIND, AND DISABLED (SSP) 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.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD REQUIRE CONSIDERATION OF THE ELDER STANDARD INDEX, AS ADOPTED BY THE RESEARCH ARM OF UCLA’S CENTER OF HEALTH POLICY RESEARCH CALIFORNIA ELDER ECONOMIC SECURITY INITIATIVE, TO GUIDE THE YEARLY ADJUSTMENT OF SSI/SSP BENEFITS, AS OPPOSED TO THE LESS ACCURATE AND REPRESENTATIVE FEDERAL POVERTY LEVEL.

VOTE: MAJORITY.

AP 10: RELATING TO SSI/SSP BENEFITS COST-OF-LIVING INDEX

WHEREAS, THE CURRENT ECONOMY IS WEAK. GASOLINE PRICES ARE RISING, UNEMPLOYMENT IS HIGH, RENTS ARE INCREASING, AND HEALTH CARE PREMIUMS AND PRESCRIPTION DRUG COSTS ARE RISING FASTER THAN EVER. STILL THE ANNUAL ADJUSTMENT OF SSI/SSP BENEFITS DO NOT REPRESENT A TRUE COST-OF-LIVING ADJUSTMENT (COLA); AND

WHEREAS, THE BASE OF THE COLA IS LINKED WITH THE YEARLY ADJUSTMENT OF THE FEDERAL POVERTY LEVEL (FPL) AND THE RESULTING CHANGES TO THE CONSUMER PRICE INDEX-URBAN WAGE AND CLERICAL WORKERS (CPI-W), AND, AT THE STATE LEVEL, THE CALIFORNIA NECESSITIES INDEX (CNI). THE FPL WAS CREATED FOUR DECADES AGO AS A TOOL USED TO ADJUST THE FOLLOWING YEAR’S SOCIAL SECURITY DISTRIBUTION; AND

WHEREAS, BECAUSE THE FPL IS BASED SOLELY ON THE COST OF THE BASIC FOOD BUDGET INTENDED TO MEET THE MINIMUM NUTRITIONAL REQUIREMENTS FOR ADULTS 65 YEARS OF AGE AND OLDER, IT COVERS ONLY A FRACTION OF THE ACTUAL BASIC COSTS, AND UNDERESTIMATES THE ACTUAL ECONOMIC SITUATION FACING SSI/SSP RECIPIENTS; AND

WHEREAS, THE FPL REPRESENTS THAT A SENIOR COULD LIVE ON $10,210 PER YEAR. ON THE CONTRARY, CALIFORNIA STATISTICS SHOW THAT A SENIOR HOMEOWNER WITH A MORTGAGE NEEDS AN ANNUAL INCOME OF $30,038, A SENIOR HOMEOWNER WITHOUT A MORTGAGE REQUIRES AN ANNUAL INCOME OF $20,111, AND A SENIOR RENTER NEEDS A MINIMUM INCOME OF $17,106. THE FPL IS THEREFORE OUTDATED, AND SHOULD NOT BE CONSIDERED AS A FACTOR IN ESTABLISHING THE COLA FOR SSI/SSP RECIPIENTS; AND

WHEREAS, RECENT RESEARCH AND STUDY HAS IDENTIFIED THE ELDER STANDARD INDEX, A NEW TOOL, AS A SUPERIOR METHOD OF CALCULATING COST-OF-LIVING ADJUSTMENTS. THE ELDER STANDARD INDEX USES PUBLICLY AVAILABLE AND WIDELY USED GEOGRAPHICALLY SPECIFIC DATA AND CAN BE CUSTOMIZED FOR USE AS A PLANNING TOOL FOR POLICIES RELATING TO HOUSING, TRANSPORTATION, FOOD, AND HEALTH CARE. THE RESEARCH AREM OF THE UNIVERSITY OF CALIFORNIA, LOS ANGELES HAS IDENTIFIED THE ELDER STANDARD INDEX AS TAKING INTO ACCOUNT THE ACTUAL COST OF LIVING IN EACH COUNTY, INCLUDING COSTS FOR HOUSING, MEDICAL EXPENSES, TRANSPORTATION, AND FOOD. IN ADDITION, IT CLASSIFIES THE NEEDS OF SENIORS BY COUNTY, MARITAL STATUS, RENTAL PAYMENTS, AND HOMEOWNER STATUS, WITH AND WITHOUT MORTGAGE PAYMENTS; AND

WHEREAS, BECAUSE OF THESE QUALITIES, THE ELDER STANDARD INDEX, RATHER THAN THE FPL, SHOULD BE DEEMED THE APPROPRIATE REPRESENTATION OF A SENIOR’S MINIMUM REQUIRED INCOME WHEN ADJUSTING THE SSI/SSP COLA; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2008 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE OUTDATED AND FLAWED FPL BE REPLACED WITH THE MORE ACCURATE AND REPRESENTATIVE METHOD OF THE ELDER STANDARD INDEX, AS ADOPTED BY THE RESEARCH ARM OF UCLA’S CENTER OF HEALTH POLICY RESEARCH CALIFORNIA ELDER ECONOMIC SECURITY INITIATIVE (CAL-EESI) PROGRAM, TO GUIDE THE YEARLY ADJUSTMENT OF SSI/SSP BENEFITS; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE ENCOURAGES LAWMAKERS TO PROTECT AND ENHANCE THE STATUS OF SSI/SSP AS A SAFETY NET PROGRAM TO PROTECT THESE PROGRAMS AND PREVENT THEIR ELIMINATION OR THE RAIDING OF THEIR RESOURCES, AND THUS MAINTAIN THE INTEGRITY OF 1999’S LANDMARK AGING WITH DIGNITY ACT; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

RN 08 21994

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