California Legislature Includes Modest Increases in Developmental Disabilities Services Rates in FY2019-21
On June 13, the California Senate, Assembly, and Governor’s office reached agreement on the state’s $214.8 billion FY2019-21 budget. Although the legislative session was eventful and often contentious, all sides agree that the FY2019-21 budget represents a first step to a desperately needed long-term funding plan that creates a sustainable disability support system that allows all Californians to live, work, and thrive in the community of their choice.
This budget calls for targeted increases, not to exceed 8.2%, for support services for individuals with intellectual and developmental disabilities (IDD) that are 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.
Click here 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.
Taking into consideration some of the findings in this rate study, as well as dedicated advocacy from self-advocates and community members, 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 it does not take effect until January 1, 2020.
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, however, will remain in effect, including half-day billing that directs 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.
As providers like UCPLA continue to work with legislatures to address these ongoing concerns, it is also 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 this rate-setting reform process moving forward. All viewpoints must be heard and honored as the state moves toward a system that supports the choices and needs of all citizens with disabilities.
In the weeks and months ahead, I will be sharing with all of UCPLA’s stakeholders calls to action that can help us work toward meaningful reform. Thank you for your advocacy so far on this journey – your calls, emails, letters, and social media posts have made an impact! Stay tuned for the next steps toward a more equitable system that provides adequate supports for individuals with IDD, the Direct Support Professionals who care for them, and the agencies that oversee this work.