SSI/SSP Grants in California: Key Context 1107 9th Street, 1107 - - PowerPoint PPT Presentation
SSI/SSP Grants in California: Key Context 1107 9th Street, 1107 9th Street, Suite 310 Suite 310 Sacramento, Sacramento, California 95814 California 95814 (916) 444-0500 (916) 444-0500 www.cbp.org www.cbp.org A PRESENTATION BY
1107 9th Street, Suite 310 Sacramento, California 95814 (916) 444-0500 www.cbp.org cbp@cbp.org 1107 9th Street, Suite 310 Sacramento, California 95814 (916) 444-0500 www.cbp.org cbp@cbp.org
A PRESENTATION BY SCOTT GRAVES, RESEARCH DIRECTOR October 2014
Supplemental Security Income/State Supplementary
Payment (SSI/SSP) grants help 1.3 million low-income seniors and people with disabilities in California pay for food, housing, and other basic living expenses.
SSI/SSP cash assistance is provided to individuals and
factors, including whether recipients live independently.
Grants are funded with both federal (SSI) and state (SSP)
and state support will total $2.5 billion.
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Over a number of years, state policymakers reduced
SSI/SSP grants in order to decrease the state’s costs for the program. State policymakers: – Suspended the annual state cost-of-living adjustment (COLA) for SSI/SSP grants several times prior to 2010-11. – Eliminated the state COLA starting in 2010-11. – Cut the state (SSP) portion of the grants, reducing it to the minimum allowed by federal law for both individuals and couples.
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$233 $171 $171 $156 $156 $156 $156 $674 $674 $674 $698 $710 $721 $725 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 January 2009 January 2010 January 2011 January 2012 January 2013 January 2014 January 2015* Maximum Monthly SSI/SSP Grant for Individuals Who Are Elderly or Have Disabilities
SSI/SSP Grants for Individuals Remain Below the January 2009 Level, Even Without Adjusting for Inflation
State Policymakers Cut the SSP Portion of the Grant From $233 in 2009 to $156 by 2012
State Portion (SSP Grant) Federal Portion (SSI Grant)
* Reflects a projected 0.5 percent federal cost-of-living adjustment (COLA) to the SSI portion of the grant effective January 1, 2015. The annual state COLA for SSI/SSP grants was eliminated starting in 2010-11. Source: Department of Social Services
$907 $877 $881
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$568 $396 $396 $396 $396 $396 $396 $1,011 $1,011 $1,011 $1,048 $1,066 $1,082 $1,087 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 January 2009 January 2010 January 2011 January 2012 January 2013 January 2014 January 2015* Maximum Monthly SSI/SSP Grant for Couples Who Are Elderly or Have Disabilities
SSI/SSP Grants for Couples Remain Below the January 2009 Level, Even Without Adjusting for Inflation
State Policymakers Cut the SSP Portion of the Grant From $568 in 2009 to $396 in 2010
State Portion (SSP Grant) Federal Portion (SSI Grant)
* Reflects a projected 0.5 percent federal cost-of-living adjustment (COLA) to the SSI portion of the grant effective January 1, 2015. The annual state COLA for SSI/SSP grants was eliminated starting in 2010-11. Source: Department of Social Services
$1,579 $1,478 $1,483
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100.6% 100.4% 100.5% 93.6% 93.1% 91.8% 90.5% 90.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% January 2007 January 2008 January 2009 January 2010 January 2011 January 2012 January 2013 January 2014 Maximum Monthly SSI/SSP Grant for Individuals Who Are Elderly
SSI/SSP Grants for Individuals No Longer Lift Seniors and People With Disabilities Above the Federal Poverty Line
Source: Department of Social Services and US Department of Health and Human Services
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131.7% 130.6% 130.0% 115.9% 114.8% 114.5% 113.1% 112.8% 0% 20% 40% 60% 80% 100% 120% 140% January 2007 January 2008 January 2009 January 2010 January 2011 January 2012 January 2013 January 2014 Maximum Monthly SSI/SSP Grant for Couples Who Are Elderly
SSI/SSP Grants for Couples Have Been Declining as a Share of the Federal Poverty Line
Source: Department of Social Services and US Department of Health and Human Services
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$630 $881 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Maximum Monthly SSI/SSP Grant for Individuals Who Are Elderly or Have Disabilities
Without Adjusting for Inflation, SSI/SSP Grants for Individuals Are About $250 Per Month Higher Than in 1989-90
* Reflects a projected 0.5 percent federal cost-of-living adjustment (COLA) to the SSI portion of the grant effective January 1, 2015. The annual state COLA for SSI/SSP grants was eliminated starting in 2010-11. Source: Department of Social Services
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$1,299 $630 $881 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Maximum Monthly SSI/SSP Grant for Individuals Who Are Elderly or Have Disabilities
After Adjusting for Inflation, SSI/SSP Grants for Individuals Are About One-Third Lower Than in 1989-90, a Loss of More Than $400 Per Month
Grant Level if Grant Had Been Fully Adjusted for Inflation Each Year Actual Grant
* Reflects a projected 0.5 percent federal cost-of-living adjustment (COLA) to the SSI portion of the grant effective January 1, 2015. The annual state COLA for SSI/SSP grants was eliminated starting in 2010-11. Source: CBP analysis of Department of Finance and Department of Social Services data
Loss of purchasing power since 1989-90 = 32%
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$0 $200 $400 $600 $800 $1,000 $1,200 Marin San Francisco San Mateo Orange Santa Clara Alameda Contra Costa Santa Cruz San Diego Mono Santa Barbara Ventura Los Angeles Monterey Napa Sonoma San Luis Obispo Nevada Inyo Riverside San Bernardino Yolo Solano Shasta El Dorado Placer Sacramento San Benito Trinity Calaveras Alpine Humboldt Lassen Mendocino Lake Del Norte Fresno Sierra Amador Kern Glenn Colusa San Joaquin Madera Stanislaus Tuolumne Mariposa Tulare Kings Plumas Merced Siskiyou Butte Imperial Sutter Yuba Tehama Modoc Fair Market Rent for a Studio Apartment in Federal Fiscal Year 2014
Studio Apartment Rent Exceeds One-Half of the SSI/SSP Grant in All 58 Counties and Is Higher Than the Entire Grant in 13 Counties
Source: Department of Social Services and US Department of Housing and Urban Development
Maximum SSI/SSP grant for an individual as of January 1, 2014 = $877 50% of the SSI/SSP grant
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As part of the 2014-15 state budget process, the Assembly
proposed to restore the state COLA for SSI/SSP grants starting on April 1, 2015. This proposal would have: – Boosted the SSP portion of the grant from $156 to $160 for individuals and from $396 to $405 for couples. – Increased state General Fund costs by between $70 million and $80 million in 2015-16, according to the Legislative Analyst’s Office (LAO).
This change was not included in the 2014-15 budget.
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The Assembly’s proposal would have increased the
SSP portion of the grant for an individual by $4 per month starting in April 2015.
However, the SSP portion of this grant would have to
increase by nearly $100 per month in order to bring the total SSI/SSP grant up to the federal poverty line in 2014.
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$156 $252 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 Maximum Monthly SSI/SSP Grant for an Individual in 2014 SSI/SSP Grant if State Portion Were Increased to Bring the Total Grant Up to the 2014 Federal Poverty Line
The State's Share of the SSI/SSP Grant Would Have to Increase by Nearly $100 Per Month to Bring the Total Grant Up to the 2014 Federal Poverty Line
Federal Portion (SSI Grant) State Portion (SSP Grant)
Source: Department of Social Services and US Department of Health and Human Services
$877 $973 Federal poverty line for an individual in 2014
Restoring the annual state COLA for SSI/SSP grants would
increase state General Fund spending by up to $80 million in 2015-16, according to the LAO.
In contrast, the state’s tax credit for film and television
productions, which was recently expanded by AB 1839, will cost the state $330 million in foregone revenues each year from 2015-16 through 2019-20. – Research suggests that this type of business tax incentive does little to create jobs and simply provides a windfall for employers.
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A good budget should take a balanced approach that
strives for: – Improving outcomes for individuals, families, and communities. – Investing in long-term economic growth and broadly shared prosperity. – Paying down debt and saving for a rainy day.
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Scott Graves Director of Research 916-444-0500 sgraves@cbp.org www.cbp.org Blog: www.CaliforniaBudgetBites.org Twitter: @CABudgetProject Facebook.com/CAbudget
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