OPWDD to cease 20% withhold, repay funds withheld to date
5% withhold may still go into effect 4/1
Yesterday, OPWDD sent the follow memo to providers (emphasis ours):
In a memorandum dated August 21, 2020, the Office for People With Developmental Disabilities (OPWDD) informed you that, pursuant to authority set forth in Chapter 53 of the Laws of 2020, 20% of payments otherwise planned to be made for certain non-Medicaid Local Assistance programs were being withheld to accommodate the reported $1.2 billion revenue decline in General Fund receipts from revenue estimates made earlier in the year.
This memorandum updates that guidance to inform you that, effective immediately, OPWDD will cease the withholding of 20% of non-Medicaid Local Assistance payments planned to be made in the current state fiscal year. Additionally, OPWDD will begin to process full repayment of funds withheld to date.
Please note that the proposed Budget for next year still contemplates the implementation of a permanent reduction in funding of 5%, effective April 1, 2021, for payments that were subject to the withhold. Although this action is subject to change based upon the level of federal aid made available to New York State, your organization should continue to plan for the 5% reduction to be implemented.
Any questions regarding this clarification should be posed to: ATL_Withholds@opwdd.ny.gov.