Fiscal Impact: Savings of $185 million

Under Governor Schwarzenegger's proposed budget, low-income seniors and disabled Californians who receive Supplemental Security Income payments will see a cost-of-living increase as the state passes on increases to their federal payments.

Most states do not supplement these federal SSI payments for low-income seniors and disabled people living on their own. But California does. Our state adds additional payments on top of the federal funding. In fact, it awards the second-highest grants of this type in the country.

Historically, California has suspended increases to these supplemental payments during tough budget years - as it did from 1991-98. Despite that, the payments have increased over time.

This year, the state will save $185 million by again suspending an approximately $7 increase to the payments California adds on top of federal Supplementary Security Income payments.

The state will continue to provide supplemental payments to these Californians that are far above the national average. Also, individuals who receive SSI/SSP payments will still see an increase this year, as the state passes on to them the federal cost of living increase.

California Provides The Second Highest SSI/SSP Payments For Low-Income Seniors, Blind And Disabled Individuals In The Country. The state provides $233 to eligible low-income seniors, blind and disabled residents, and $568 to couples. That is on top of the federal payments of $203 and $904. California is behind only Alaska in the amount of its supplemental payments. (California State Department Of Finance, "January 2006 Supplemental Security Income/State Supplementary Payment (SSI/SSI) Payment Standards For Aged Individuals Living Independently)

• California Provides The Highest SSI/SSP Payments For Low-Income Seniors, Blind And Disabled Couples In The Country. The state provides payments of $568, higher than the nearest state, Alaska, at $528. (California State Department Of Finance, "January 2006 Supplemental Security Income/State Supplementary Payment (SSI/SSI) Payment Standards For Aged Individuals Living Independently)
• California's Payments Far Outpace Other States. California's SSP is $233 for an individual, compared to $168 in the next-nearest state, Connecticut, $129 in Massachusetts, and $87 in New York. (California State Department Of Finance, "January 2006 Supplemental Security Income/State Supplementary Payment (SSI/SSI) Payment Standards For Aged Individuals Living Independently)

The Additional SSP Cost-Of-Living Increase Has Historically Been Suspended During Tough Budget Years, And The Payments Have Increased Over Time.

• California's Supplemental Cost Of Living Increase Was Suspended In The 2005-06 State Budget. Major Changes-Social Services Programs: 2005-06 General Fund and Special Fund: SSI/SSP: Suspends January 2006 state COLA: -$130.9 million. (Legislative Analyst's Office, "Major Features Of The 2005 California Budget," www.lao.ca.gov/2005/major_features, July 2005)
• California's Supplemental Cost Of Living Increase Was Suspended Between 1991 and 1998. "California has suspended the SSP COLA every year since 1991." (AB 2648, Bill Analysis, April 1998)

Most States Do Not Even Offer An SSP (State Supplementary Payment) In Addition To The Federal SSI (Supplemental Security Income) Benefits. Only 22 states offer funds in addition to the federal SSI payments. (California State Department Of Finance, "January 2006 Supplemental Security Income/State Supplementary Payment (SSI/SSI) Payment Standards For Aged Individuals Living Independently)