Human Services Programs – CWDA May Revision Memo #3

Budget Priority

The May Revision includes a $68.3 million reduction, about 11 percent, to the Eligibility component of the Single Allocation in 2021-22. This is the funding that counties use to process applications for CalWORKs, redetermine eligibility, and provide case maintenance. This reduction is due both to revised caseload assumptions in the May Revision, and a more technical aspect of the budgeting methodology that shifts eligibility costs between CalWORKs and CalFresh. While these are both standard components of the budgeting methodology, there is no cost adjustment to reflect increases in county worker and operational costs over time. A $68.3 million reduction would lower funding for CalWORKs Eligibility to an amount below that provided in 2018-19 when the budgeting methodology was rebased and below that which counties are currently spending.