On June 13, the California State Senate and Assembly passed a $214.8 billion FY2019-21 State budget. The legislature took some welcome but modest steps to address funding shortfalls in the California intellectual and developmental disability (IDD) support system, particularly the direct support professional (DSP) workforce crisis.
The budget calls for targeted increases, not to exceed 8.2%, to IDD supports deemed to be in crisis by the California Department of Developmental Services (DDS) and identified as severely underfunded in the recent IDD rate study conducted by Burns & Associates. The legislature approved temporary IDD funding increases of $125 million in the FY2019-20 budget and $150 million in the FY2020-21 budget. This increase is intended to begin to address an identified $1.2 billion funding shortfall in the state’s IDD support system but does not take effect until January 1, 2020.
To access more information on the rate study, conducted to address the “sustainability, quality, and transparency” of services in the California IDD system and to assess whether current rate-setting methods are effective,
click here
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The budget also suspends the “uniform holiday schedule,” which would have forced individuals and families to go without certain services on 14 days during the year, until January 1, 2022. The uniform schedule was established in 2009 to ease the state budget crisis brought on by the recession. Other cost-cutting measured adopted in 2009 will remain in effect including half-day billing that directed each provider of day programs or similar supports to bill at one-half of its existing rate for any person who attended the program for less than 65% of the program day, and elimination of state funding for social, recreational and camp services.
The budget also fails to remedy the state “minimum wage quirk” that prevents providers in municipalities with minimum wages different than the state rate from receiving relief when the state minimum wage increases on January 1.
It is important to note that the IDD rate increases are scheduled to “sunset” or end on December 31, 2021. It is expected that a more comprehensive rate restructure plan will be in place at that time that will include permanent rate increases intended to establish a more responsive and sustainable IDD long-term support system.
It will be critical that all stakeholders in the California IDD system participate in the rate setting reform process moving forward. All voices must be heard and honored as the state moves to a system that supports the choices and needs of all citizens with disabilities.
