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

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

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n M

ateo

Oran

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nta

Clar

aAl

amed

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ntra

Cos

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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

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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

sgraves@cbp.org

www.cbp.org

Blog: www.CaliforniaBudgetBites.org

Twitter: @CABudgetProject

Facebook.com/CAbudget

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