Legislative Analyst's Office, July 7, 1996

SUPPLEMENTAL REPORT
OF THE 1996 BUDGET ACT
1996-97 FISCAL YEAR

CONTAINING STATEMENTS OF INTENT
OR REQUESTS FOR STUDIES
ADOPTED BY THE LEGISLATURE


Health and Social Services

Item 4260-001-0001--Department of Health Services
Item 4300-001-0001--Department of Developmental Services
Item 4700-001-0001--Department of Community Services and Development
Item 5160-001-0001--Department of Rehabilitation
Item 5180-001-0001--Department of Social Services


Health and Social Services

Item 4260-001-0001--Department of Health Services

1. Medi-Cal Program--Expansion of the "Assisted Living" Model. The Department of Health Services shall report to the Legislature by January 1, 1997, on the feasibility of expanding the "assisted living" model of service delivery in the Medi-Cal Program. The department's report shall describe other state's activities in this area and, if possible, shall present alternatives for California which meet the following criteria:

a. Allows the provision of certain medical services to long-term care Medi-Cal beneficiaries in community care facilities rather than nursing facilities;

b. Provides adequate quality of care and provider assurance standards; and

c. Results in no net cost to the state.

Item 4300-001-0001--Department of Developmental Services

1. Rates for Community-Based Services. The Department of Developmental Services shall report to the Legislature by March 1, 1997 on the feasibility and desirability of adopting modifications to the existing rate system for community-based services, including the potential for greater authority for Regional Centers in contract ing for community-based day and residential services. The department may, in developing its recommendations, consult with residential services provider organizations, advocacy groups, and the Association of Regional Center Agencies, or other individuals and/or organizations as the department sees fit.

2. Early Start Program. The department shall provide data to the Leg islature and the Interagency Coordinating Council (ICC) by September 1, 1996, on regional center services provided to infants and toddlers under the Early Start Program since the 1995-96 fiscal year. The data will include the following:

a. The number of children served by age;

b. The eligibility criteria used; and

c. The types of services provided or purchased, and their cost.

The department shall provide data to the Legislature and the ICC by September 1, 1996, on the results of monitoring efforts currently being conducted under the program. The data will include the following:

a. The criteria and standards used for conducting monitoring activities;

b. The findings of the monitoring activities; and

c. The corrective actions, if any, taken to assure program compliance.

The department shall provide data to the Legislature and the ICC by September 1, 1996 on the number and types of complaints against the Early Start Program at the state and local level since the 1995-96 fiscal year.

Item 4700-001-0001--Department of Community Services and Development

1. Economic Development. The Department of Community Services and Development shall develop criteria for the distribution of funds allocated from Item 2240-104-0001 for the development of economic development proposals or economic development plans which shall include but not be limited to the following:

a. The eligibility requirements for cities and/or unincorporated areas applying jointly or individually for a grant;

b. The requirement that a cash or in-kind match be made by an applicant city or cities;

c. The encouragement of the employment of local residents;

d. The encouragement of diversifying the applicant's economic base, especially locally-owned business;

e. Strengthening of infrastructure and "quality of life" features of city or cities, such as housing, transportation, water and sewage systems, education, and workforce development.

Not more than 10 percent of these funds shall be used by the department for costs of administering funds. Grant amounts between $40,000 and $60,000 shall be allocated by the department to eligible applicants.

The department shall prepare a preliminary report to the budget and appropriations committees of each house and the Joint Legislative Budget Committee by October 30, 1996 on the criteria developed for allocation of these funds. The department shall prepare a final report by April 1, 1997 on the allocation of these funds and the initial results of this expenditure.

Item 5160-001-0001--Department of Rehabilitation

1. Consumer Financial Participation Expansion. It is the intent of the Legislature that the Department of Rehabilitation not implement a new, or expand its existing, system of consumer financial participation, or similar copayment system, with out an adequate legislative and public review of the potential impact of any such system on the department's consumers or the timely delivery of programs and services.

The department will specifically solicit comments and suggestions from the Rehabilitation Advisory Council (RAC) and the State Independent Living Council (SILC) regarding the impact such a proposal would have on consumers and the extent to which the proposal may operate as a fiscal disincentive to participate in programs and services offered by the Department of Rehabilitation. At least 45 days prior to the submission of any consumer financial participation regulations to the Office of Administra tive Law for promulgation, the Department of Rehabilitation shall share its proposal and accompanying comments or suggestions from the RAC or the SILC with the appropriate policy and fiscal committees of the Legislature. Furthermore, in noticing the pub lic comment period and hearings regarding such proposed regulations, the department will specifically solicit comments and suggestions regarding the impact such a proposal would have on consumers and the extent to which the proposal may operate as a fiscal disincentive to participate in, or delay the delivery of, programs and services offered by the Department of Rehabilitation.

Item 5180-001-0001--Department of Social Services

1. Group Home Audits. The department shall report to the fiscal and policy committees of the Legislature by
January 15, 1997 on the feasibility and cost-benefit of contracting out the foster care group home audit function. The report shall include consideration of contracting with the private sector and state control agencies that routinely perform fiscal and program audit functions, such as the Bureau of State Audits or the State Controller's Office. The report shall also include a comparison of the cost of contracting out versus retaining the audit function within the department. The department shall consult with staff of the Legislative Analyst's Office and the appropriate fiscal and policy committees of the Legislature on its approach to comply with this requirement and shall keep the Legislature apprised of its progress.

2. Adoptions Initiative. The department shall identify and implement strategies to maximize adoption opportunities for children in long-term foster care. The strategies shall include:

a. Establishing specific goals for the adoptions program, including but not limited to, timeliness and stability of placements and increased number of placements;

b. Developing proposals to make improvements in the areas of kinship adoptions, open adoptions, adoptions of older and minority children, and concurrent planning for children in out-of-home care;

c. Streamlining the adoption process, including the identification and evaluation of any barriers caused by regulations, statutes, procedures, and practices at the federal, state, and local levels;

d. Establishing uniform and compatible performance agreements with county agencies and state adoptions district offices, including specific performance measures and proposed incentives and sanctions.

The department shall consult with the counties, the Legislative Analyst's Office, staff of the appropriate fiscal and policy committees of the Legislature, and other interested parties throughout the process of developing these adoption strategies. By November 1, 1996, the department shall submit a progress report and summary of the specific program goals to the fiscal and policy committees of the Legislature. By March 1, 1997, the department shall provide to these same committees a copy of the draft proposals specified in (b) above, and evaluation of identified barriers requested in (c) above, and draft performance agreements described in (d) above.


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