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It is definitely a VERY BUSY time of year and with all that is going on between the Department of Developmental Services’ Rate Study and the Governor’s proposed May revisions to the budget, so it is no surprise that some people are confused, others are concerned, and some are hopeful.
Based on the rate study (and conversations with families, people receiving services, people waiting to receive services and service providers) there is NO QUESTION that the DDS system is and has been systemically underfunded for decades. The rate study showed that the system is collectively underfunded by $1.8 Billion. The LAO outlines several different approaches to implementation but ultimately suggests that the Legislature do as much as reasonably possible in 2019-20 to begin phasing in reforms identified in the rate study.
On May 2nd the Legislative Analyst’s Office (LAO), in response to the Assembly Health and Human Services Budget Committee (Sub 1) Chair’s request to develop a few options related to implementation of the rate study, released a letter of response outlining several options that the legislature could do as it relates to implementing the rate study. The letter addresses budgetary and practical/administrative constraints, two main options, status quo funding increase options, various methods to bundle or package the options and other important issues for the legislature to consider.
Many people are concerned, rightfully so, about how the various rate-setting methodologies proposed in the rate study that will impact all the different services. Concerns that we have heard include: What will the final recommendations be? What will the legislature adopt? Will some providers really get a reduction? How many providers in the state are not compliant (or even close to compliance) with the Home and Community-Based Settings Rule? These are all extremely important issues to consider and while the rate study has been submitted to the Legislature it is far from over as the revised and final recommendations from Burns and Associates (consultants that conducted the rate study) have yet to be put forth in a final report to the Legislature.
There are many more conversations, stakeholder engagements and hearings that need to occur before a decision is made as to options for implementation, recommendations and the overall implementation process. This is the time for advocacy and to be part of the process. Work with your associations, members of the community, your elected representatives in the legislature and let them know how the various options would impact you. To read the response letter from the LAO visit: https://lao.ca.gov/letters/2019/reyes-dds-050219.pdf
As for the May 2019 Proposed Budget Revision, we also have some work to do. On May 9, 2019 the May revise came out and while there was funding to increase rates for some services others were left out. The California Health and Human Services Agency, Secretary Dr. Mark Ghaly and various Department Directors held a stakeholder call to provide an overview of the proposed budget. The DDS indicated that investments were being made to the services deemed “most structurally in need”, to provide stabilization and was not part of the 8% budget ask put forth by Senator Stern, Assembly Member Frazier and Assembly Member Holden (and supported by many other members of the legislature as well as many in the advocacy community). It was also noted that more discussion was needed related to the rate study. There will be a lot more to come in the next few weeks – we will keep you well informed as to how you can engage in the advocacy efforts related to the budget and the rate study.
Teresa Anderson, Policy Director, The Arc & UCP Collaboration