Reductions: Eligibility cuts; provider rate cuts; Residential Habilitation Center closure; wage savings for state employees; furlough days for state employees
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This letter was shared by email from DSHS DDA:
Developmental Disabilities Administration; September 16, 2020
Dear Interested Stakeholder,
Today the Department of Social and Health Services (DSHS) Secretary Cheryl Strange announced the submission of the DSHS proposed 2021-23 biennial budget to the Office of Financial Management, which included the Developmental Disabilities Administration (DDA) budget proposal.
The agency submitted two types of proposals for the next biennium’s budget: budget requests and reduction options. The budget requests include funding for increased services or a change in the way existing services are delivered.
Due to the coronavirus pandemic and projected budget shortfalls extraordinary proposed reductions of 15% were required by the Office of Financial Management this year. This painstaking effort included staff furloughs, administrative cuts, and provider rate reductions. Even more difficult were the substantial cuts to client services, including eligibility, which had to be made to reach the goal of a 15% reduction. Please remember that this is just the first step in the biennial budget process.
Budget Requests:
- Children’s State-Operated Living
Alternative (SOLA): Five new SOLA homes would serve 15
children age 20 and younger on the west side of the state who are not
eligible for Residential Habilitation Center admission and are not able to
successfully transition to out-of-home residential placement because
suitable options do not exist. ($10.7M; $5.7M GF-State; 50.1FTE)
- High School Transition Students:
Adding Basic Plus waiver capacity in anticipation that 878 eligible high
school graduates will seek DDA services in the 2021-23 Biennium. ($10.3M;
$5.7M GF-State)
- Increase Children’s Intensive
In-Home Behavioral Support (CIIBS) waiver capacity:
Expand the CIIBS Medicaid waiver from 100 to 200 slots. ($8.7M; $4.6M
GF-State; 13.2 FTE)
- Financial Eligibility Staff:
This funding for additional staff will improve the timeliness and accuracy
of eligibility reviews, application processing, and case management
updates, resulting in better meeting the 45-day application processing
requirement. ($6.0M; $3.5M GF-State; 27.1 FTE)
- Increase Preadmission Screening
and Resident Review (PASRR) Capacity: More
clients are entitled to PASRR specialized services for people with
developmental disabilities. DDA is required to initiate these services
within 120 days of assessment. ($4.3M; $2.1M GF-State)
- Personal Protective Equipment
(PPE): Requesting purchase of PPE for both DDA staff and
for in-home caregivers. ($10.3M; $5.1M GF-State; 1.9 FTE)
- COVID-19: New
costs are related to dealing with the pandemic, including a state-operated
facility (residential cottage) on the grounds of Rainier School and
technology for remote supports for staff to maintain client contact
without in-person visits. ($7.8M; $5.9M GF-State; 2.0 FTE)
- Residential Habilitation Centers
(RHC) Digital Records Transformation: An electronic health
record system for the RHCs is necessary to maintain compliance with
federal Medicaid certification standards. ($406,000; $203,000 GF-State)
- Paper to Electronic Workflows: An electronic document management system to replace paper files is essential for staff to successfully meet client and provider needs while working remotely and to comply with federal requirements in a timely manner. ($2.3M; $1.2M GF-State; 7.0 FTE)
Reduction Options:
- Furlough Reductions:
Continuation of the Governor's Furlough Days to achieve cost savings
with two furlough days per month. (-$38.7M; -$21M)
- General Wage Savings:
Continuation of the Governor's modification of the 3% General Wage
increase for EMS and WMS Positions. (-$892,000; -$512,000 GF-State)
- RHC Cuts and Rainier Closure:
Staffing reductions, cottage closures and decreased purchasing at three
RHCs, and Rainier School is proposed to be closed by the end of the next
biennium, June 30, 2023. (-$36.8M; -$16.6M GF-State; -283.1 FTE)
- Provider Rate Cuts:
A 2.4 percent rate cut would affect in-home caregivers, Adult Family
Homes, respite providers, Adult Residential Care, and Employment and Day
services providers. (-$34.2M; -$15.7M GF-State)
- Client Eligibility Cuts: Under this option, approximately 6,500 clients with lighter care needs would temporarily lose paid services in the 21-23 biennium, including in-home personal care, residential services, SOLA and RHC. (-$490M; -$243.8M; -112.3 FTE)
The budget can and will change over time, and we appreciate the Governor’s support. As we move through this process we will be meeting with stakeholders and will keep you apprised of the budget status, particularly in regard to potential reductions. More detail can be found at this link: https://abr.ofm.wa.gov/budget/agency/requests
Sincerely,
Evelyn Perez
Assistant Secretary, Developmental Disabilities Administration
Contact us for questions or feedback.
