Department of Social Services
CalWORKs

The 2007-08 average monthly CalWORKs caseload of 460,119 represents an increase of 0.1 percent from 2006-07, and an increase of 1.9 percent from the Governor's Budget estimate. Absent the program changes described below, the average monthly caseload in this program is estimated to be 459,744 in 2008-09, a 0.1 percent decrease over the 2007-08 projection. The proposed changes to CalWORKs are estimated to reduce the 2008-09 caseload projection to 386,871 families, a 16.0 percent decrease from the 2007-08 estimate. Combined federal Temporary Assistance for Needy Families (TANF) Block Grant and state and county maintenance-of-effort expenditures in 2007-08 and 2008-09 are anticipated to be $6.7 billion.

The May Revision continues to reflect the Administration's January proposals for major CalWORKs reform measures that emphasize work participation and personal responsibility and improve the state's ability to meet federal requirements.

The May Revision also incorporates additional program reductions and transfers necessary to maintain the CalWORKs program within the limits of federal TANF funding and General Fund Maintenance-of-Effort (MOE) requirements. The final federal TANF regulations issued in February 2008 disallowed many of the expenditures that California had been counting towards its MOE requirement. In order to offset this disallowance, the May Revision reflects the exchange of TANF funds for General Fund that is currently expended in other TANF-qualifying programs. This proposal allows California to continue to meet federal MOE requirements without increasing overall state General Fund expenditures. The following programs participate in the TANF-General Fund exchanges:

  • CalGrants ($223 million)
  • Probation ($151.8 million)
  • Emergency Assistance Foster Care ($50.4 million)
  • Increased Title XX transfer to Department of Developmental Services ($22.2 million).
Higher caseloads and costs per case, and an erosion of the savings assumed in the Governor's Budget for certain proposals, will create a TANF shortfall in the CalWORKs program of $376 million. The following changes are proposed to maintain program expenditures at the level of available TANF and MOE funding:

  • Eliminate 2008-09 Cost of Living Adjustment ($131 million--$20 million taken in special session, $111 million additional proposed in May Revision)
  • Five percent grant reduction ($108.2 million).
  • Self-Sufficiency Reviews ($59.7 million; see below for details)
  • Eliminate County Pay-for-Performance Incentive ($40 million)
  • Use Unspent Performance and Fraud Incentives funding to offset General Fund ($20.6 million)
  • Implement the Regional Market Rate for Child Care in January 2009 and limit reimbursement rates to the 75th Percentile ($19.4 million)
  • Eliminate the TANF Reserve ($13.0 million)
In order to move the state closer to meeting federal work participation requirements, the May Revision includes three proposals to benefit the work participation rate calculation:

  • Pre-Assistance Employment Readiness System (PAERS) is proposed as a four-month, pre-CalWORKs program for all new or returning CalWORKs participants. The program will be designed to accelerate efforts in assisting applicants to secure employment and avoid entry into CalWORKs and develop a work plan as a condition of eligibility for CalWORKs for those applicants who are unable to secure employment during the PAERS program.
  • Institute a face-to-face self-sufficiency review every six months with a county worker for CalWORKs families who are not meeting work requirements. The review will assess what services or resources may be necessary to address barriers that are preventing participation and help remove a family's dependence upon public assistance.
  • Transfer $5 million in TANF to the Boys and Girls Club in order to count an estimated $88 million in additional expenditures as excess MOE.
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CHAPTER HIGHLIGHTS for Health and Human Services Back to Top

 Department of Health Care Services
 Department of Public Health
 Managed Risk Medical Insurance Board
 Department of Developmental Services
 Department of Mental Health
 Department of Social Services
 image of black pointing arrowCalWORKs
  Supplemental Security Income/State Supplementary Payment Program
  In-Home Supportive Services
  Child Welfare Services
 Loans and Transfers from Special Funds
PRINTABLE BUDGET DOCUMENTS Back to Top
Revised Budget Summary - Health and Human Services (pdf * - 208K) -
Provides the entire Health and Human Services Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Revised Budget Detail - Health and Human Services
Displays Revised Budget Detail information for Health and Human Services.

Proposed Budget Summary - Health and Human Services (January 2008)
Displays Proposed Budget Summary information for Health and Human Services.