Proposed Budget for 2021-22
Governor Newsom Releases 2021-22 State Budget
Proposal
On January 8, Governor Newsom released his 2021-22 proposed state
budget. This budget proposes $227 billion in spending.
An unexpected budget surplus and some limited Federal assistance
to address costs associated with COVID-19 have lessened the need
to implement threatened spending cuts. Given the improved revenue
outlook, the Governor’s budget proposes to delay by one-year, a
number of suspensions that were outlined in the 2020 Budget Act.
The Department of Developmental Services budget includes $10.5
billion ($6.5 billion General Fund) for the Department and
estimates that approximately 386,753 individuals will receive
developmental services by the end of 2021-22.
The budget also includes many provisions important to people with
IDD including:
- The establishment of a Senior Advisor on Aging, Disability,
and Alzheimer’s.
- Extension of the provider supplemental rates and the Uniform
Holiday Schedule suspension through December 31, 2022.
- Anticipated costs to address the unique needs of people with
IDD during the COVID-19 pandemic.
- Continuation of supplemental IDD payments through to January
1, 2023, in lieu of the previous sunset of July 1, 2021 at the
same dollar amount.
- The COVID-19 temporary 10 percent rate increase for some IDD
service settings until the public health emergency declaration is
declared over by the federal government.
The budget will now be reviewed and debated in the California
legislature. We will make our advocates aware of issues and
opportunities as the budget works its way through the legislative
review and approval process. California must have an approved
budget by July 1, 2021.
2020-21 Developmental Services Budget
These proposals from Governor Newsom will be reviewed and
possibly modified by the legislature over the coming months,
prior to passage of a budget in June.
The 2020-21 budget includes a net increase of 1 billion compared
to 2019-20, which is largely due to the projected increase in
population to be served by regional centers.
- The estimated 2021 population is 368,622, reflecting an
increase of 18,575, or 5.3%. including those receiving Early
Start services (birth to 3 years) and active regional center
clients with diagnosed developmental disabilities.
- The budget proposes to provide $16.5 million to provide a
lower caseload ratio for clients 3-4 years old. Unfortunately the
budget for service coordinators is based on the salaries set in
30 years ago and will not actually cover the cost
of staffing increases to achieve this caseload ratio.
- The Purchase of Services budget will increase by $420.3
million or 6.49%) due to population and expenditure growth.
- $206.2 Million increase to implement service provider
supplemental rate increases which were approved last year
(effective January 2020) and 18 Million to provide a rate
increase for three additional services that were excluded in the
prior year – early start specialized therapeutic services,
independent living services, and infant developmental program
(effective Jan. 2021).
- 103.8 million to implement the 2020 minimum wage increase to
13.00/hr through December.
- $120.3 million to implement the 2021 minimum wage increase to
$14.00/hr as of Jan. 2021..
The 2020 Governor’s Budget also included the announcement that
the Uniform Holiday Schedule for service providers will
continue to be suspended, with the new projected sunset date of
December 31, 2023.
For more information, view
the DDS 2020 Governor’s Budget Highlights on the DDS
website.
2019-20 Developmental Services Budget
January 2020: Updates to the 19-20 Developmental Services
Budget
The 2019-20 Budget is increased $5.9 million to cover the cost
of minimum wage increases from $12.00 to $13.00 per hour
effective Jan. 1 2020. However the total Regional Center
Budget received a net decrease of $63 M due to January 2019
minimum wage increases coming in lower than originally estimated.
June 2019: The Budget Conference Committee and Newsom
Administration came to agreement on the final Budget deal for
fiscal year 2019/20, which included the following compromise
decisions for developmental services:
- Provider Rates: an additional $125 million will be added
in FY 19-20 and $150 million in 20-21 for “broad-based” provider
increases that will begin 1/1/20 and sunset 12/31/21. See
DDS chart of temporary rate increases. (DDS expects to implement
a full rate reform package by December 2021).
- In response to extensive advocacy efforts, some service
providers will receive an increase of about 8.2%, while others
will receive significantly less, and – we are very disappointed
that some service provider categories, such as Infant Development
Programs, will not receive any increase at all – on the basis of
the recent Burns and Associates rate study.
- Suspended Services: The committee did not follow the
Senate and Assembly Budget Committee’s plan, and did not restore
social recreation and camp services, nonmedical therapies, and
certain educational services that were cut during the recession.
- “Minimum Wage Quirk”: No action taken to provide rate
adjustments to service providers in areas with local minimum wage
that is higher than the state minimum wage.
- Uniform Holiday Schedule: As proposed by the Governor,
the Uniform Holiday Schedule, developed as a cost savings during
the recession, will be suspended until 1/1/22, but not repealed.
- Half-Day Billing: This provision from the recession was
not repealed.
- SSI/SSP: There will be no SSP (State Supplemental Payment)
Cost of Living Increase
The Legislature previously voted to also approve the following
items that had been proposed by the Administration.
- Early Start Co-Payments: Regional centers will be able
to pay for copayments, coinsurance, and deductibles for Early
Start children regardless of family income.
- Crisis Homes For Children: Three community crisis homes
for children will be developed, which is a model that thus far
has not been available to them.
- HCBS Final Rule: $3 million was approved for DDS to hire
a contractor to visit community settings to determine whether
they comply with the HCBS Final Rule integration expectations.
- Foster Youth Trauma-Informed Systems of Care: Funding
for regional center Operations was approved to allow for greater
coordination of care for multisystem children.
- Specialized Caseload Ratios for Regional
Centers: Approximately 50 service coordination positions
will be created statewide for caseload ratios of 1:25 for those
with the most intensive service coordination needs.
- Family Home Agency Oversight: Funding was approved for
regional center Operations to allow for greater monitoring of
Family Home Agency services.
- Specialized Home Monitors: Funding was approved for
regional center Operations for nurses and behaviorists to monitor
high-level residential facilities.
June 7, 2019
We are in the final week of budget deliberations by the Budget
Conference Committee.
Read Gavin Newsome’s First Budget Deal is Near. Here’s What to
Watch For
Read Governor, Help Our Most Vulnerable Citizens, by Assembly
Member Chris Holden
“No, there have not been miracle cures for these
disabilities. Rather, we have among us miracle workers in the
form of local men and women who provide the structure, support,
coaching and mentoring that empower the people they serve to
achieve lives of meaning and purpose. These miracle workers are
employed by local community- based organizations that receive
their funding from the state. These groups have transformed
California’s system of support for its most vulnerable residents,
and we should be proud of this successful public policy. But we
cannot feel proud of the way we have let support for these
community organizations and the people they employ slip behind in
the past 20 years.”
Developmental Services Budget decisions that differed between The
Senate and the Assembly are now being reviewed by the Budget
Conference Committee, to arrive at a compromise for the final
budget that will be sent to both houses for approval by June
15th.
- The Assembly’s budget rejected the Governor’s May Revise of
targeting specific services for an average 18% increase, and
instead use the same total amount of increase proposed in the
Governor’s May Revise of approximately $170 Million ($104 Million
General Fund – meaning the amount the state must pay which
combines with Federal dollars to make the total amount) and make
it an across-the-board increase of about 5.7% starting January 1,
2020.
- This is in contrast to the Senate’s action which approved a
motion to include a minimum of an 8% increase to all rates that
otherwise would have less than an 8% increase as proposed in the
Governor’s May Revise.
- Click here to
see a table summarizing the differences between the Assembly and
Senate budget actions.
- Both houses voted to restore recession era cuts, including
restoration of Social Recreation and Camp funding ($14.8M GF),
repeal of Half-Day Billing ($1.6 Mil GF) and the Uniform Holiday
Schedule ($30.1 Mil GF)
- Additionally, the Assembly passed $5 Million for safety net
services for clients with mental health needs while the Senate
did not include it in their budget.
May 23, 2019
This afternoon, the California State Senate unanimously approved
SB 412 (Stone), a bill sponsored by ARCA to repeal two fees. Also
called “disability taxes,” they act as artificial barriers to
services for children and families.
Under current law, a program called the “Family Cost
Participation Program” requires regional centers to pay for less
than a child needs for respite, daycare, and camp (now
suspended), based on family income. Families are expected to make
up the difference. A separate, income-based fee program called
the “Annual Family Program Fee” charges parents of children
receiving other services.
The Family Cost Participation Program goes back to 2004. During
the Great Recession, it was expanded to include Early Start, and
the Annual Family Program Fee was also implemented. They were
part of over $1 billion in cuts and funding reductions forced on
the developmental disabilities services system. While
California’s economy has rebounded, many cuts, including these,
remain in place.
Since the fees were created to raise money for the state during
the Recession, they are, essentially, taxes on
disability. SB 412
by Senator Jeff Stone repeals these disability taxes. By
doing so, it removes an artificial barrier to critical services
for people with developmental disabilities and their families.
More information about this bill is available
online
Thursday, May 16, 2019
In dramatic fashion the State Senate Budget Subcommittee #3 voted
to approve an 8% spending increase for services and supports for
Californians with intellectual and developmental disabilities
(IDD), adopting a request pushed this year by people with
disabilities, families, direct support professionals, service
providers, and regional centers throughout the state.
In addition to the rate increases, the Committee also voted to
adopt several proposals that advocates have highlighted are
impacting the IDD community – many of them cuts that were made
during the Great Recession. Those adopted proposals include:
- Restoration of Social Recreation and Camp services;
- Elimination of the 14 day mandatory holiday schedule, and
removal of the sunset language proposed in the Governor’s May
Revise
- Elimination of half-day billing;
- Correction for the minimum wage “quirk” which currently
restricts service providers in ares with minimum wages that are
higher than the state minimum wage to receive increases when the
state minimum wage goes up;
- Enable regional centers to make Early Start co-payments on
behalf of privately insured families;
- Require the Department of Developmental Services to submit a
place for system-wide rate reform, considering the
recommendations of the rate study and impending HCBS final rules,
with stakeholder input, by January 01, 2020, with a planned
beginning implementation date no later than January 21;
- Rejection of the Governor’s proposal to sunset the rate
increases on December 31, 2021.
The funding increases adopted on May 16th by the Senate represent
a first step toward full funding. The State Assembly will next
vote on the budget on Tuesday, May 21, and will have the chance
to adopt the same budget as the Senate; however, if it is
different in any way from the Senate’s version then it will move
to the Conference Committee, where a final adopted budget will be
negotiated and eventually sent to the Governor prior to the June
15th Constitutional deadline.
Thursday, May 9th, Governor Newsom released his “May
Revise” budget, which is updated from his January
budget based on actual tax revenue received by the state. The
Governor’s January budget included no significant increases for
services that support Californians with intellectual and
developmental disabilities (IDD) (except for increases based on a
growing caseload, which only maintains the status quo). The
Governor’s reasoning for not including increases was that the
state’s long-awaited rate study, which would bring to light the
true investment needed to provide quality services and supports,
was going to be released in March, and the Governor was going to
wait until after that.
The rate
study, which is still in draft form, concluded underfunding
of $1.8 billion; however, on Thursday the Governor only proposed
to increase services by $165 million next fiscal year and only
$330 million the year after that. The Governor also proposed to
“sunset” those increases, meaning that they would go away in two
years unless re-appropriated. This modest investment doesn’t
include any guarantee of additional investment over the next
couple years to reach the full amount of $1.8 billion. While this
budget would undoubtedly benefit a few people, without question
the Governor’s proposed budget falls far short of what the
community hopes and expects from the Legislature and
administration this year.
One bright spot in the Governor’s budget is the suspension of the
14-day uniform holiday schedule, that was scheduled to begin on
July 1. This would have forced individuals and families to go
without certain services on 14 days during the year, but the
suspension of its enforcement will allow regional centers to
individualize the needs for people regardless of holidays. This
proposal, however, also would sunset in two years and potentially
causing the 14 days to be re-enforced.
2018 – 19 Developmental Services Budget
The legislature has approved the budget and it has been
signed by the Governor.
click here
to view the Budget Trailer Bill pertaining to developmental
services with changes to the Welfare and Institutions Code
notated.
Unfortunately, while this final agreement includes some good
news, it also contains some disappointments for developmental
services.
In January of this year, and then again with his May Revise, the
Governor presented his Budget with some additional funding for
developmental services to cover the cost of growth in new clients
statewide. It did not however include funding for any of the
elements for which the developmental disabilities community has
been advocating for many months.
During final budget negotiations with the Governor, some
enhancements to our system that had been approved by the Senate
and Assembly Budget Committees were removed or modified.
- $25 million in one-time bridge funding for service providers,
requested by Assemblymember Chris Holden, was approved. However,
this approval is contingent upon obtaining federal matching
funds, which can be a lengthy process. This one-year funding is
intended to provide some relief for service providers who are
struggling due to frozen rates and increasing costs, while the
state completes its rate study.
- Although we advocated for restoration of funding, social
recreation and camp services will not be restored (so regional
centers are still prohibited from funding these services).
- The Uniform Holiday Schedule (required unpaid closures for
service providers, as recommended in the Governor’s Budget but
opposed by regional centers and advocates) was approved, but
suspended for one year.
Read joint statement from the Lanterman Coalition, “Outrage
at State Budget Deal for California’s Developmental Disability
Community.”
Respite Services Update
We want to remind our readers that, as part of the budget trailer
bill process this year, the Legislature took action to lift the
cap on respite services by repealing Welfare and Institutions
Code Section 4686.5, effective January 1, 2018.
- Prior to January, 2018, regional centers were limited to
purchasing no more than 90 hours per quarter of in-home respite
and 21 days of out-of-home respite for a family, unless an
exemption is granted.
- Effective January 1, 2018, these limits on the purchase of
respite services will no longer apply.
- HRC has been and will continue to make sure that families,
service providers, and local community organizations are aware of
the repeal of these restrictions on the purchase of respite, and
we will be prepared to authorize respite as needed per each
client’s IPP..
2017-18 Developmental Services Budget
- Total expenditures for 2017/18 for developmental services are
expected to exceed $7 Billion. The budget projects a total
increase of 317,283 new clients to be served statewide.
- Respite Services: Since budget reductions made during the
great recession in 2009, respite services have been capped at 90
hours per quarter. In this budget the cap on respite services
will be lifted, beginning January 1st, 2018. Services will
continue to be determined according to individual/family need but
will no longer have this legislatively established cap at 90
hours per quarter. This is something that our statewide regional
center and Lanterman Coalition advocacy teams strongly advocated
for in our visits with legislators.
- Unfortunately the prohibition of funding of social recreation
and camp services will continue. We advocated for restoration of
these services, but this decision by the budget committee was
influenced by the projected costs for restoring these services.
- Allows Community Placement Plan funds to be used more
flexibly as community resource development funds
- Requires objectives to be included in regional center annual
performance contracts that measure progress and report outcomes
in implementing the state’s Employment First Policy
- Authorizes an exemption to be granted for a client’s
participation in a paid internship program or competitive
integrated employment even though s/he is still eligible for
school
- Authorizes regional centers to provide funding for Early
Start services when the service coordination team has determined
the needed services are not available through a family’s
insurance plan
2016-17 Developmental Services Budget
The Legislature passed a budget for the 2016-17 fiscal year which
contains a substantial increase in spending for regional centers
mostly because it incorporates the provisions of ABX-2 passed by
the Legislature during the special legislative session. There
have been no unexpected additions or deletions in the budget as
enacted. The new fiscal year, and the new budget, were effective
on July 1, 2016.
Budget Highlights
March 2016
Reason To Celebrate: Bipartisan Legislature Passes
Developmental Services Funding Bill
On February 29, 2016, the Legislature passed a two-bill package,
signed by the Governor on the following day, that will provide
much needed funding relief for services for people with
developmental disabilities and the people who serve and care for
them. These votes come after a five-year campaign by our
community.
The first of the two bills helped to secure continued inflow of
federal funding, by restructuring the way that Managed Care
Organizations are taxed. The continuation of federal funding made
it possible for the second of these two bills to provide nearly
$300 Million in state general funds for the developmental
services system. And this will be matched by federal funds
resulting in an estimated total of more than $400 Million.
Support for the developmental services funding bill in the
legislature was unanimous.
After over a decade of service cuts, funding reductions and
frozen rates, the new funding has been targeted to specific
areas, to begin to restore the service system. These include
funds to retain service coordinators and service provider direct
care staff, and rate increases for targeted service categories
such as supported employment, supported and independent living,
respite, and transportation services. Special initiatives for
promoting integrated employment, and increasing cultural
competency in service delivery were also included in the funding
package. Finally, the package will fund a rate study plan to
support the ongoing sustainability of our service system.
The new infusion of funds is to become effective July 1st of
2016. We expect that some fine tuning will occur during the
coming months as the total budget for the 2016-17 fiscal year is
finalized, and as implementation details are provided by the
Department of Developmental Services.
What’s Next?
Many in the developmental services community, including system
advocate Senator Jim Beall, have pointed to the severe need for
housing resources for people with developmental disabilities. We
are also continuing to advocate for resource development for all
types of services, to begin to restore services which have been
lost as underfunded programs have been forced to close, and to
serve emerging needs in our community.
For now, the passage of new funding is an important first step in
our ongoing efforts for the fundamental reform we will need, to
see another 50 years of developmental services.
Read California
Legislature approves bills on taxing health plans
Read Daily Breeze: Californians
with Developmental Disabilities Get Desperately Needed Help
The approved MCO tax and developmental services funding package
includes:
- A 7.5% increase for salaries and benefits,for both
POS&OPS
- A 2.5% increase for administrative and other costs,for both
POS&OPS
- A restoration of the supported employment rates to 2006
levels
- A 5% increase for supported and independent living services
- A 5% increase for in-home and out-of-home respite services
- A 5% increase for transportation services
- An effective 5% increase for ICFs,done as a 3.75%increase,and
the elimination of prior cuts,
- A comprehensive increase for competitive integrated
employment programs, in the form of paid internships and
incentive payments for helping individuals obtain and retain
employment
- An increase in vendor audit thresholds
- A rate study plan
- 5 million for disparity issues for bilingual staff at
regional centers, cultural competency training, and parent
education efforts
The Administration has put the total value of this package at
$300M General Fund, $418M Total Funds. The majority of that money
will be provided via the MCO agreement, with the balance
addressed in the Governor’s May Revise.
Thank You HRC Community for Contacting Your Legislators
“The real power behind this was the tireless work of advocates
like you. This is an historic step for over 300,000 Californians
with developmental disabilities, their families, and their
service providers.” said Anne Struthers, President of ARCA. “This
bipartisan support shows the Legislature and Governor Brown are
committed to community-based care and the values expressed in the
Lanterman Act, passed also with bipartisan support in 1969.
Congratulations to the Legislature for taking this step.” \
Association of Regional Center Agencies
Read
More
Thank you Legislators For Your Support!
“Today, after a decade of waiting, the developmental
disability community in California finally got some help from
Sacramento! I was proud to support this measure… This is a down
payment on restoring years of cuts and cost-of-living adjustments
that were never appropriated.”
Assembly Member David Hadley, Torrance
“The Legislature approves ABX2-1, injecting $500 million in
permanent, on-going funding — $300 million in state funding that
draws a $200 million federal match– into the beleaguered
developmental disabilities services network. It’s a good first
step to stabilize the system, but we still must come up with a
long term solution.” Senator Jim Beall
Thank you to HRC area legislators:
Senators Ben Allen, Isadore Hall, Ricardo Lara, and Tony
Mendoza
Assembly Members Ian Calderon, Cristina Garcia, Mike Gipson,
David Hadley, Patrick O’Donnell, and Anthony Rendon.
These changes include:
- a payment reduction for regional centers and service
providers of 1.25% (as noted above, expected to end June 30,
2013)
- assisting families to access private insurance coverage for
behavioral health treatment and other medically necessary
services instead of paying directly for these service using
regional center funds
- a standardized process for reviewing needed supported living
services
- strict limitations on admissions to the developmental centers
for individuals with exceptionally challenging service needs.
- In addition we continue to implement measures instituted in
earlier years, such as continued assessment of annual family
program fees, and development of transportation service plans
designed to eliminate contract transportation for individual
clients.
Despite these measures, regional centers are concerned that their
concerted efforts will not be able to achieve the full
$200million in savings, and with the possibility of ending the
year in deficit. Together the regional centers are continuing to
ensure that individual needs identified in individual/family
service plans are met, while working closely together with the
Department of Developmental Services to get through this year
within funds available.
2011-12 Recap
Some of the most significant changes made in 2011-12 include, but
are not limited to:
- Continuation of temporary 4.25% payment reduction to regional
center operations and service providers (purchase of services),
and administrative reductions to regional centers and DDS
(changed to 1.25% for 2012-13)
- A new Annual Family Program Fee of $150-$200 for families of
minor children who live at home, and have income of at least 400%
or more of the federal poverty level. Some families will be
exempt, eg. if the child receives Medi-Cal or does not receive
services beyond eligibility determination, needs assessment and
service coordination. (Continuing)
- Elimination of the regional center Prevention Program.
Effective July 1st, 2012, infants ‘at-risk’ of developmental
disability will be referred to Family Resource Centers for
information and referral, while regional centers will continue to
provide services to infants and toddlers with developmental
delays who meet Early Start criteria. (Continuing)
- A new requirement for families to provide the regional center
with a copy of any health benefit card at the time of assessment
or at the individual service planning meeting, to promote access
of any available benefits. (Continuing)
- A requirement to access education-funded day services, rather
than regional center-funded programs, for 18-22 year old
adults.(Continuing)
- Requirements for adult day services to offer flexible or
half-day schedules. (Continuing)
- Allowing lower payment levels for individual clients in
licensed homes whose needs have decreased, without having to move
to another home. (Continuing)
- Providing shared supported living services for adults with
shared tasks in the same supported living home, Conducting
independent assessment of support needs. (Beginning in 2012-13 a
new system is to be implemented for standardized assessment
of all clients receiving supported living services,
rather than independent assessment of only those clients
receiving higher cost SLS services).
- A new requirement for parents receiving behavior services to
verify receipt of those services prior to payment. (Continuing)