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HomeMy WebLinkAboutMINUTES - 04032007 - C.58 s' TO: BOARD OF SUPERVISORS E SE L _K.. Contra FROM: JOHN CULLEN, of s- Costa County Administrator x k� Sp'q.COUIz"� v~ County DATE: April 3, 2007 SUBJECT: POSITION ON SB 782 (Cogdill)— In-Home Supportive Services Program: State Freeze on Participation in Provider Wage and Benefit Increases SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: OPPOSE Senate Bill 782 (Cogdill), a bill that would freeze State participation in In-Home Supportive Services provider wage and benefit increases, as recommended by John Cottrell, Executive Director of the IHSS Public Authority, and Joe Valentine, Director of the Employment and Human Services Department. FISCAL IMPACT: Potential future County general fund cost. The State would not participate in funding future costs increases. Fifty percent of any increased cost would be a County general fund obligation. BACKGROUND: The County's 2007 State Legislative Platform includes the following policy position: OPPOSE any efforts to increase the County's share-of-cost, maintenance-of-effort requirements or other financing responsibility for state mandated programs absent new revenues sufficient to meet current and future program needs. (General Revenue/Finance Issues) The recommended position on SB 782 is consistent with this Board-adopted policy. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): � ACTION OF BOA D N OWc I C) D APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF X UNANIMOUS(ABSENT p�f(�,�� ) THE BOARD OF SUPERVISORS ON THE DATE SHOWN. AYES: 'NOES: ABSENT: ABSTAIN: Contact: Cc: L. DeLaney 5-1097 O O�' ATTESTED S. Hoffman,CAO's Office JOHN CULL LER OF THE BOARD OFSUPERVISORS J.Valentine,EHSD J.Cottrell,Public Authority _ C.Christian,via CAO's Office BY: DEPUTY SB 782—IHSS State Freeze., p.2 April 3, 2007 Existing law provides for the county-administered In-Home Supportive Services (IHSS) program, under which qualified aged, blind, and disabled persons are provided with services in order to permit them to remain in their own homes and avoid institutionalization. Services can be provided under the IHSS program either through the employment of individual providers, a contract between the county and an entity for the provision of services, the creation by the county of a public authority, or a contract between the county and a nonprofit consortium. In Contra Costa County services'are provided through employment of individual providers, selected and hired by the recipient of the services. The Contra Costa County IHSS Public Authority acts as the employer of record for collective bargaining on behalf of the individual providers. A memorandum of understanding between the IHSS Public Authority and United Healthcare Workers West outlines the conditions of employment. This agreement is due to expire September 30, 2007. Existing law provides that when any increase in provider wages or benefits is negotiated or agreed to by a public authority or nonprofit consortium, the county shall use county-only funds for the state and county share of any increase in the program, unless otherwise provided in the Budget Act or appropriated by statute. Existing law establishes a formula with regard to provider wages or benefits increases negotiated or agreed to by a public authority or nonprofit consortium, and specifies the percentages required to be paid by the state and counties, beginning with the 2000-01 fiscal year, with regard to the nonfederal share of any increases. According to Legislative Council, this bill would eliminate the formula for state participation in provider wage and benefit increases. The bill would, instead, require, for the remainder of the 2006-07 fiscal year and any fiscal year thereafter, that the state participate in payment of the nonfederal share, as specified, in a total of wages and individual health benefits up to the level of wages and benefits approved for each countv on or before the effective date of the bill The bill would allow for increases in state participation, as necessary to accommodate increases in the state minimum wage, or upon appropriation of funds in the Budget Act or other subsequent legislation for this purpose. This bill would declare that it is to take effect immediately as an urgency statute. SENATE BILL No. 782 Introduced by Senator Cogdill February 23, 2007 An act to amend Section 12306.1 of the Welfare and Institutions Code,relating to in-home supportive services,and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 782, as introduced, Cogdill. In-Home Supportive Services program: provider wage and benefit increases. Existing law provides for the county-administered In-Home Supportive Services(IHSS)program,under which qualified aged,blind, and disabled persons are provided with services in order to permit them to remain in their own homes'and avoid institutionalization. Existing law permits services to be provided under the IHSS program either through the employment of individual providers, a contract between the county and an entity for the provision of services, the creation by the county of a public authority, or a contract between the county and a nonprofit consortium. Existing law provides that.when any increase in provider wages or benefits is negotiated or agreed to by a public authority or nonprofit consortium, the county shall'use county-only funds for the state and county share of any increase in the program, unless otherwise provided in the Budget Act or appropriated by statute. Existing law establishes a formula with regard to provider wages or benefits increases negotiated or agreed to by a public authority or nonprofit consortium,and specifies the percentages required to be paid by the state and counties,beginning with the 2000-01 fiscal year,with regard to the nonfederal share of any increases. 99 SB 782 —2— This 2—This bill would eliminate the formula for state participation in provider wage and benefit increases. The bill would, instead, require, for the remainder of the 2006-07 fiscal year and any fiscal year thereafter,that the state participate in payment of the nonfederal share, as specified, in a total of wages and individual health benefits up to the level of wages and benefits approved for each county on or before the effective date of the bill. The bill would allow for increases in state participation, as necessary to accommodate increases in the state minimum wage, or upon appropriation of funds,in the Budget Act or other subsequent legislation for this purpose. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 1/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows; 1 SECTION 1. Section 12306.1 of the Welfare and Institutions 2 Code is amended to read: 3 12306.1. (a) When any increase in provider wages or benefits 4 is negotiated or agreed to by a public authority or nonprofit 5 consortium under Section 12301.6, then the county shall use 6 county-only funds to fund the 7 nonfederal share, including employment taxes, of any increase in 8 the cost of the program, 9Budget Aet or appropriated by . No increase in wages or 10 benefits negotiated or agreed to pursuant to this section shall take 11 effect unless and until,prior to its implementation,the department 12 has obtained the approval of the State Department of Health 13 Services for the increase pursuant to a determination that it is 14 consistent with federal law and to ensure federal financial 15 participation for the services under Title XIX of the federal Social 16 Security Act, and unless and until all of the following conditions 17 have been met: 18 (1) Each county has provided the department with 19 documentation of the approval of the county board of supervisors 20 of the proposed public authority of nonprofit consortium rate, 21 including wages and related expenditures.The documentation shall 22 be received by the department before the department and the State 23 Department of Health Services may approve the increase. 99 -3— SB 782 1 (2) Each county has met department guidelines and regulatory 2 requirements as a condition of receiving state participation in the 3 rate. 4 (b) Any rate approved pursuant to subdivision (a) shall take 5 effect commencing on the first day of the month subsequent to the 6 month in which final approval is received from the department. 7 The department may grant approval on a conditional basis,subject 8 to the availability of funding. 9 (c) The state shall pay 65 percent,and each county shall pay 35 10 percent, of the nonfederal share of wage and benefit inereases 11 wages and benefits negotiated by a public authority or nonprofit 12 consortium pursuant to Section 12301.6 and associated employment 13 taxes, in accordance with subdivisions (d) , 14 and(e). 15 (d) (1) The state shall paftieipate as provided itt subdivision(e) 16 �o seven dollafs and fifty eents ($7.50) per hour and 17 18 pttblie atithority or nonprofit eonsortium providers.This paragraph 19 shall be operative for the 2000 01 fiseal year and eaeb yea.r 20 thereafter unless athefwise provided in paragraphs (2), (3), (4), 21and , and without fegafd to when the wage and benefit iftefease 22 beeemes effe t 23 (2) The state shall paftieipate as provided in subdivision (e) in 24 a total of wages and individual health benefits up to nitte dollarg 25 , ' 26 dollars a ' --� 1($7.50)pet:hout Gotinties shall detefmitte-, 27 28 ,what poftion ofthe nine dollars 29 and ten eents($9.10)per hour shall be used to ftmd w - i 30 above seven dollars and fi.fty eents ($7.50) pef hottr of individual 31 , both.This paragraph shall be opefative 32 33 otherwise provided in paragiraphs (3), (4), and(5). 34 (3) The state shall paAieipate as pmvided in subdivisiott (e) itt 35 a total of wages and individual health benefits tip to ten dollar,s 36 , if wages have reaehed at least 37 seven dollars and fifty eents ($7.50) per hour Counties shall 38 determine, 39 for in subdivision (e) of Seetion 12301 .on of the te 40 99 SB 782 —4- 1 4-1 2 individttal health benefit inereases, or both. This paragraph shall 3 be operative with the next state fiseal year for whieh 4 , exeludiftg 5 , the most ettfrent estimate 6 of revenue, exeluding tfansfers, 7 . 8 (4) The state shall partieipate as pfovided in subdivision (e) ifl. 9 a total of wages and individual health beftefits ttp to eleven dollars 10 , if wages have reaehed at least 11 seven dollars and fifty eetits ($7.50) per hottf- Gottnties shall 12 detennine, 13 ,what poftiott ofthe eleven 14 dollars and ten eents ($11.10)per hour shall be used to ftmd wage 15 , or both. This paragfVh 16 shall be operative eommeneing with the next state fiseal year for 17 , 18 exeluding transfers,exeeeds by at least 5 pereent,the most eutTent. 19 estimate of fevetittes, exeluding transfers, fof the year in whieh 20 . 21 (5) The state shall partieipate as pfovided itt subdivision (e) in 22 a total eost of wages and individual health benefits tip to twelve 23 if wages have reaehed-at 24 least seven dollars and fifty eettts ($7.50)pef hour Gotinties shaI4 25 detefmine, 26 , "I.M. floftion of the 27 28 29 of individual health benefit inefeases,o. 'afttgfaph Shall 30 be opefative with the next state fiseal year for whieh 31 the May Revision fof —at of Gmefal Fund fevetitte, exelttd�ng 32 transfefs, exeeeds by at least 5 pefeent, the most ettiTent estimate 33 , for the year in whieh paragraph 34 . 35 (e) (1) Gn or befofe May 14 immediately priof to the fiseal 36 year for whieh state partieipation is provided under paragraphs(2) 37 , ' , 38 eeftify to the Govemof-, the appropriate eomfnittees of the 39 Legislature, and the depaftment that the eandition for eaeb 40 subdivision to beeeme operative has been met. 99 -5— SB 782 1 , the 2 , that is used 3 for the relevant fiseal year shall be ealettlated in a marAtef that is 4 eonsistent with the definition of Gefteral Fund revettues,exeluding 5 tfaftsfers, that was used by the Depaftment of Fiftanee in the 6 2000 01 Goventor's 7 . 8 (9 Any ifterease ift ovemll state paftieipatioft in wage and benefit. 9 , 10 shall be limited to a wage and benefit inefease of one dollar($1) 11 12 ehanges in speeifie wages and health benefits negotiated through 13 the eolleetive bargaining proeess, the state shall partieipate in the, 14 , up to the maximufn level.s 15 , of subdivision 16 (d}: 17 (d) For the remainder of the 2006-07 fiscal year and any fiscal 18 year thereafter, the state shall participate as provided in 19 subdivision (c) in a total of wages and individual health benefits 20 up to the level of wages and benefits approved by the department 21 and the State Department of Health Services for each county on 22 or before the effective date of the act that adds this subdivision. 23 (e) (1) The level of state participation provided for in 24 subdivision (d) may increase as necessary to accommodate wage 25 increases that are solely due to increases in the statutory state 26 minimum wage. 27 (2) The level of state participation provided for in subdivision 28 (d) may also increase and remain at a higher level if funds are 29 specifically appropriated for this purpose in the Budget Act or 30 other subsequent legislation. 31 SEC. 2. This act is an urgency statute necessary for the 32 immediate preservation of the public peace,health,or safety within 33 the meaning of Article IV of the Constitution and shall go into 34 immediate effect. The facts constituting the necessity are: 35 In order to make the statutory changes necessary to implement 36 the Budget Act of 2007 at the earliest possible time,it is necessary 37 for this act to take effect immediately. O 99