COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Board of Supervisors

DATE:

October 15, 2009

BOARD MEETING DATE:

October 20, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Housing, Health and Human Services Standing Committee:

Supervisor Carole Groom, Chair

Supervisor Rose Jacobs Gibson, Vice Chair

SUBJECT:

Opposition to contracting out a statewide eligibility and enrollment process for CalWORKs, Medi-Cal and SNAP.

RECOMMENDATION:

Adopt a resolution opposing the State’s implementation of ABX 4 7 through the contracting out of a statewide eligibility and enrollment process for CalWORKs, Medi-Cal and SNAP.

BACKGROUND:

ABX 4 7, passed in July of this year by the State of California, authorizes the State Departments of Health Care Services and Social Services to implement a centralized statewide eligibility and enrollment process for CalWORKs, Medi-Cal and the Supplemental Nutrition Assistance Program (SNAP; formerly the Food Stamp Program).

Prior to implementation, according to provisions in the bill, the departments must conduct a feasibility study, one component of which is a cost-benefit analysis comparing the current process of eligibility and enrollment to a privatized model. Currently, eligibility for these social service programs is determined at the county level by public employees. Privatization models implemented in other states involve the contracting out of these services to private firms, whose employees determine eligibility through the use of customized, automated software applications.

DISCUSSION:

Both the County Welfare Directors Association of California and the California State Association of Counties actively opposed ABX 4 7 as it made its way through the legislature because in other states where it has been tried, privatization has failed to lower costs or improve service. Rather, privatization efforts in other states have resulted either in cost overruns or a failure to produce estimated savings, declines in access to services, and high error rates in processing applications.

Determining eligibility is a complex process that belies an automated, one-form-fits-all approach. Automation poorly serves those who lack access to the Internet or who have disabilities that make it difficult to use a computer. Having skilled employees accountable to the community members they serve has proven to be the most effective model for social services eligibility determination.

For these reasons, we recommend the adoption of the resolution opposing the State’s implementation of ABX 4 7 through the contracting out of a statewide eligibility and enrollment process for CalWORKs, Medi-Cal and SNAP.

FISCAL IMPACT:

None.