Legislative Analyst's Office, March 18, 1996

Background Information on
AFDC, SSI/SSP, and Medi-Cal Programs
And Proposition 99, Part II

Child Support Enforcement

• Program is administered primarily by the county district attorney and funded by the counties (34 percent) and the federal government (66 percent)

• As a result of the counties' enforcement efforts, increased support payments to AFDC families reduce the grant expenditures. 1995-96 "off-set" to the General Fund from collections is estimated to be over $170 million.

• Counties receive incentive payments from the state and federal government designed to encourage them to maximize collections.

GAIN Overview

• Mandatory Participants

  • All AFDC recipients unless exempt.
  • Major exempt categories:
    • Parent with child under age 3.
    • Incapacitated parent or ill family member.
    • Employed 30 or more hours per week.

• Services

  • Job search.
  • Basic education.
  • Job training.
  • Community work experience.
  • Child care.

• Participation 1994-95

  • An average of 79,158 participants receive GAIN Services.
  • This represents about 21 percent of mandatory participants.
  • Program changes could result in higher participation rates in 1995-96 and 1996-97.

• Federal Law Establishes Target Groups

  • Parent under age 24 and has not completed high school or has little or no work experience.
  • Families who have received aid for three years.
  • Families in which youngest child is within two years of being ineligible for assistance because of age.

• Funding

  • Federal funding is capped at $180 million.
  • 1995-96 state funds: $83 million General Fund, $20 million Employment Training Fund.

GAIN Program Shows Positive Effects

GAIN Three-Year Impact
AFDC-FG

GAIN Program Shows Positive Effects

GAIN Three-Year Impact
AFDC-U

GAIN Program Can Be Cost Effective

Cost-Effectiveness: Return to Government
Per Dollar Invested

SSI/SSP Overview

• Eligibility

  • Financially needy aged, blind, or disabled individuals adn couples.

• Services

  • Cash grants
  • Grant varies with eligibility category
  • 1994-95 grant for aged and disabled individuals (largest category): $614 per month

• Caseload in February 1996

  • 330,648 aged
  • 21,842 blind
  • 675,295 disabled

• Federal law places eligibility and maintenance of effort constraints on the program

• General Fund cost: $1.9 billion for benefits, $60 million for administrative fee paid to federal government

• Serves as a "pass through" of approximately $3.5 billion in federal funds for benefits and administration

Disabled Receipients Represent Largest and Fastest
Growing Segment of SSI/SSP Caseload

California's SSI/SSP Grants Highest Among the Ten Largest States

November 1995

SSI/SSP Grants for Individuals Compared to Poverty Level

SSI/SSP Grants for Couples Compared to Poverty Level

Continue to Part I

Continue to Part III

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