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1107 9th Street,
Suite 310
Sacramento,
California 95814
(916) 444-0500
www.cbp.org
1107 9th Street,
Suite 310
Sacramento,
California 95814
(916) 444-0500
www.cbp.org
SSI/SSP Grants in California: Key Context
A PRESENTATION BY SCOTT GRAVES, RESEARCH DIRECTOR
October 2014
Key Facts About SSI/SSP Grants 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 couples. The maximum grant is based on a number of factors, including whether recipients live independently.
Grants are funded with both federal (SSI) and state (SSP) dollars. In 2014-15, federal support will total $7.2 billion and state support will total $2.5 billion.
2
State Policymakers Have Reduced SSI/SSP Grants 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.
3
4
SSI/SSP Grants Remain Below the January 2009 Level
5
$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*
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
rIn
divi
dual
s W
ho A
re E
lder
ly o
r Hav
e Di
sabi
litie
sSSI/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
6
$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*
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
rCo
uple
s W
ho A
re E
lder
ly o
r Hav
e Di
sabi
litie
sSSI/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
7
SSI/SSP Grants Have Declined as a Share of the Federal Poverty Line
8
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
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
r Ind
ivid
uals
Who
Are
Eld
erly
or H
ave
Disa
bilit
ies
as a
Per
cent
age
of th
e Fe
dera
l Pov
erty
Lin
eSSI/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
9
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
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
r Cou
ples
Who
Are
Eld
erly
or H
ave
Disa
bilit
ies
as a
Per
cent
age
of th
e Fe
dera
l Pov
erty
Lin
eSSI/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
10
SSI/SSP Grants Have Lost About One-Third of Their Purchasing Power
During the Past 25 Years
11
$630 $881
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
rIn
divi
dual
s W
ho A
re E
lder
ly o
r Hav
e Di
sabi
litie
sWithout 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
12
$1,299
$630 $881
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Max
imum
Mon
thly
SSI
/SSP
Gra
nt fo
r In
divi
dual
s W
ho A
re E
lder
ly o
r Hav
e Di
sabi
litie
sAfter 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 purchasingpower since 1989-90 =
32%
13
Housing Costs Are a Significant Concern for SSI/SSP Recipients, Even in Counties
That Are Considered to Be More Affordable
14
$0
$200
$400
$600
$800
$1,000
$1,200M
arin
San
Fran
cisc
oSa
n M
ateo
Oran
geSa
nta
Clar
aAl
amed
aCo
ntra
Cos
taSa
nta
Cruz
San
Dieg
oM
ono
Sant
a Ba
rbar
aVe
ntur
aLo
s An
gele
sM
onte
rey
Napa
Sono
ma
San
Luis
Obi
spo
Neva
daIn
yoRi
vers
ide
San
Bern
ardi
noYo
loSo
lano
Shas
taEl
Dor
ado
Plac
erSa
cram
ento
San
Beni
toTr
inity
Cala
vera
sAl
pine
Hum
bold
tLa
ssen
Men
doci
noLa
keDe
l Nor
teFr
esno
Sier
raAm
ador
Kern
Glen
nCo
lusa
San
Joaq
uin
Mad
era
Stan
isla
usTu
olum
neM
arip
osa
Tula
reKi
ngs
Plum
asM
erce
dSi
skiy
ouBu
tteIm
peria
lSu
tter
Yuba
Teha
ma
Mod
oc
Fair
Mar
ket R
ent f
or a
Stu
dio
Apar
tmen
t in
Fede
ral F
isca
l Yea
r 201
4Studio Apartment Rent Exceeds One-Half of the SSI/SSP Grant inAll 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 grantfor an individual as of
January 1, 2014 =$877
50% of theSSI/SSP grant
15
Boosting SSI/SSP Grants Would Require Changing the
State’s Budget Priorities
A Legislative Proposal to Restore the Annual State COLA for SSI/SSP Grants Failed in 2014 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.
16
The Assembly Proposal Was Modest Compared to the Size of the Cuts the State Has Made to SSI/SSP Grants 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.
17
18
$156$252
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
Maximum Monthly SSI/SSP Grantfor an Individual in 2014
SSI/SSP Grant if State Portion Were Increased toBring the Total Grant Up to the 2014 Federal Poverty Line
The State's Share of the SSI/SSP Grant Would Have to Increase byNearly $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 foran individual in 2014
The Cost of the Assembly Proposal Was Modest Compared to the Cost of the State’s Film Tax Credit 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.
19
The Measure of a Good Budget 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.
20
For More Information
Scott Graves
Director of Research
916-444-0500
www.cbp.org
Blog: www.CaliforniaBudgetBites.org
Twitter: @CABudgetProject
Facebook.com/CAbudget
21