PAR Mail 2018-053 | March 15, 2018
A Deep Dive into ODP's Budget
details, details, details.
At an in-depth briefing this week with ODP leaders and other advocates, a detailed explanation of ODP's budget was presented by Deputy Secretary Nancy Thaler and ODP Fiscal Director Rick Smith.

Key highlights of the proposed budget, as explained by ODP, include an overall increase of an additional $74.3 Million in state funds to be matched at a similar amount by the federal Medicaid program.

Specific appropriation enhancements include:
  • $16 million to provide services for an additional 965 individuals with ID/A living in the community. Included in the 965 new individuals being served will be more than 800 students graduating on or after June 2018, 100 individuals coming off of the waiting list; and another 800 students graduating after June 2019, who will receive 1 month of service during the coming fiscal year.
  • $43.8 million listed in the budget as the costs of increase and utilization is identified as the cost of annualizing the prior year's $249 million rate increase, which included some rates that began on July 1, 2017; and residential rates that began on January 1, 2018.
  • 11.8 million identified by ODP as annualization of the prior fiscal year's expansion, which includes the cost of covering the new individuals added to service rosters last year, not to be confused with the above item which addressed rates that were increased for all existing service codes in the prior fiscal year.
  • $2.7 million for annualization of the prior year's Autism Expansion covering the cost of a full year's worth of services for people added at mid year in the 17/18 budget.

Absent from the Governor's Budget Recommendations was a request to continue to raise DSP rates and wages for a second year.

ODP/DHS have indicated that DSP rates, providing the funding from which providers can raise wages, will be addressed every three years with a "rate refresh" in a procedure to be determined by pending regulations under consideration by DHS/ODP and the Governor's Office, soon to be sent for approval to the IRCC (Independent Regulatory Review Commission). Those regulations are expected to be presented to the IRRC for adoption this summer, however the Administration has not confirmed when those regulations will be available for public discussion and then an IRRC vote.
Providers, while grateful for any forward movement on rates, are deeply concerned that without legislative intervention, by approving a rate/salary appropriation; or by requesting an amendment or revision to the pending 6100 Regulations, Direct Support Professional may be facing the possibility of a three year rate and wage freeze. Such a development would be problematic for DSPs trying to make a living, and would slow the Governor's expressed wish to provide Path to a Living Wage for PA DSPs.

Thus PAR, and our colleagues in the ID/A coalition will be seeking legislative endorsement of an additional $60 million of targeted dollars for rates to improve DSP wages targeted at paying nearly a Living Wage or an average of $15.00 per hour by 2021. ODP data shows the Commonwealth's funding of rates have fallen far short of that goal, yielding an average DSP wage of $12.45 per hour.