Updated on November 17, 2005
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Action Alert
Prepared Statement (download in Word or PDF) for the Assembly Budget Subcommittee #1 Health and Human Services on November 16, 2005.  The hearing was an informational hearing to investigate the current impact of rate freezes and other cost containment measures that have been instituted over the past several years. Please discuss any of these issues with your local legislators and other issues you see as important to you, your family, or friends. 
 
Honorable Hector De La Torre, Chair
Assembly Budget Subcommittee #1
State Capitol Building
Sacramento, CA 95814
 
Dear Assemblymember De La Torre:
 
On behalf of The Arc of California, the states’ oldest and largest membership association of people with developmental disabilities, their families, and other advocates, we would like to thank you for holding these informational hearings today in preparation of the next session.  The time and care you and your committee are taking to fully explore all the factors involved in the current state of our service and support system can only help our constituents with developmental disabilities as their needs are nonpartisan and their desire for full participation in all aspects of community life is compelling.
 
During the 1950s parents of individuals with developmental disabilities came together in California and throughout the nation to support one another, to reject institutionalization as the only option, and to urge communities and school districts to accept their loved ones and to include them in all areas of California and American society.  This was the beginning of The Arc of California, and since that time great strides have been made in education, through the Individuals with Disabilities Education Act (IDEA), and today the vast majority of individuals with developmental disabilities live and work in their own home communities with their families, their friends, their co-workers, as assured in the California Lanterman Act.  However, these important advancements have slowed and are under threat because of recent and consistent cost containment initiatives through the budget process.  These initiatives include rate freezes, intake delays, suspension of startup funding, changes in eligibility definition, and the implementation of the parental co-pay for vital respite and related services.
 
The Impact of Cost Containment Measures
Last session the administration asked to continue the “temporary” short term cost containment measures that have been put in place to save money and in the end most of these measures were approved.  The Arc of California recognizes that the state has been in a serious economic struggle but its citizens with disabilities can barely make it these days with their crumbling service and support system infrastructure.   As we will outline below these cost containment measure are having a long term debilitating effect on an already fragile community based service network.
 
Continuation of Rate Freezes
The continuation of the rate freezes on the community based service providers is perhaps the most threatening measure impacting the stability of the service system for people with developmental disabilities.  Several nonprofit service agencies are currently close to insolvency and would close their doors if not for the fund raising efforts of their dedicated boards and local communities raising from 10 to 50% of their annual income.  While rates have been frozen the cost of providing services continues to skyrocket making it impossible for agencies to survive unless they continue to raise funds to subsidize the government’s commitment to Californians with developmental disabilities and their families. 
 
These rate freezes actually have the closest impact to people with disabilities because they have an immediate impact on our thousands of direct support professionals who our constituents depend on the most.  These men and women who make up this workforce should be celebrated and honored and recognized for their contributions in supporting people with disabilities and the elderly but instead they work two and three jobs to make ends meet, many have to access public benefits for health, housing, and food, and there’s no professional certification or licensure or a career ladder to offer our workforce.  As outlined in the report, Briefing Report and Chartbook on Wage and Benefits Trends Affecting the Growing Crisis in Recruiting and Retaining the Direct Support Workforce, the wage increases for our workforce “are far below the trends of other comparable job categories and the national minimum wage. The “Personal & Home Care Aides” hourly wage increased only $1.20 over a nine-year period versus $2.79 and $1.75 for “Public Direct Support Worker” and “Fast Food Workers” respectively. Over the nine year period, wages for Personal & Home Care Aide increased 16.88% while Minimum Wage increased 21.18%.[1]”  In California our minimum wage increased to a higher level that the nation minimum wage while rates continued to be frozen thus decreasing the relative value of the wage even more.  While the job can be personally rewarding and enriching the turnover rates are estimated between 40% and 70% which has a huge non-value added cost to the system. 
 
The Arc of California implores the state to make the lifting of the rate freeze a top priority for the developmental services system.
 
Delay in Intake and Assessment (60 days to 120 days)
In the cost containment measure of delaying intakes and assessments we have a long term impact on people with disabilities that no longer saves money for the state.  Savings associated with this initiative were realized in the year implemented but now only serve to delay potential developmental progress for children and adults with developmental disabilities.  With every other new eligible intake in the regional center system diagnosing an individual with Autism, this delay can cause irreversible developmental delays if intervention is not begun immediately.   
 
The Arc of California advocates for reverting the intake assessment back to the original 60 day requirement.
 
Suspending Start-up Funding for New Programs
Over the past several years now the community of people with developmental disabilities and their families has changed in both the types of disabilities and the needs for support related to an individual’s disability and preferences.  For example the rising rate of Autism in California represents new challenges for the service and support system in the community requiring sometimes smaller settings or reduced stimulus environments and other specialized approaches.  Nationally new approaches to serving individuals are tried and many times found to be successful but without this funding our state is stuck providing services that may not meet the changing needs within each local regional center area. 
 
The Arc of California advocates for lifting this restriction on start-up funding as it also results in increased barriers to achieving the goals of the California Olmstead Plan.
 
Implementation of a Change in Eligibility Definition
During the 2003 legislative session the administration proposed a change to the definition of eligibility for services under the Lanterman Developmental Disabilities Act, which was aimed at complying more with the federal definition and would grandfather in current eligible individuals.  This proposal passed in the legislature and was sign by the governor.  The impact was estimated as minimal affecting only a few hundred individuals with high independent living skills.  However, since that time our system has seen a marked decrease in the rate of caseload growth indicating decreases in almost all categories of developmental disabilities.  While the Department of Developmental Services is currently investigating the cause of the dramatic changes The Arc of California believes there must be a direct link to changes in eligibility.  National prevalence rate estimates range from 1% to 2% of the general population and, unless the state is unique in the prevalence of developmental disabilities, we are currently not serving at least 100,000 individuals throughout California.
 
The Arc of California advocates for researching the reasons for the dramatic impact on eligibility rates and reverting back to the original determination criteria if found to be the variable causing the unintended result.
 
Instituting a Co-Pay for Parents and Families for Respite
After the 2004 session California began charging a share of cost co-pay for respite and related family support services.  The Arc of California still believes this practice should end and that we should support families as intended in the Lanterman Act.  We hear several anecdotal stories from parents who must go without support because of the initiative and we believe there are many others in communities throughout our culturally diverse state who see this measure as barrier to requesting this initial family support service. 
 
The Arc of California advocates for immediately sunsetting this policy and restoring full support to our families.
 
Thank you again for holding these hearings today and we look forward to the next session and working with you and your colleagues in the legislature and the administration in finding ways to improve the support people with developmental disabilities in California.
 
Thank you,
 
Tony Anderson
Executive Director
The Arc of California
(916) 552-6619

[1] Briefing Report and Chartbook on Wage and Benefits Trends Affecting the Growing Crisis in Recruiting and Retaining the Direct Support Workforce, August 2005 Update.  The report was prepared for the American Network of Community Options and Resources by BDO Seidman, LLP.
 

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People with developmental disabilities, families and friends:

ACTION ALERT

Letters Needed This Week!

Deadline:  Monday morning, APRIL 25, 2005

 The State Budget for 2005-06 is being developed now.  Once again the Schwarzenegger Administration is attempting to reduce services and limit your rights under the Lanterman Act. 
The Arc of California urges you to: 
   Write to members of Assembly Budget Subcommittee #1 and ask them to:

1.   Reject the Administration’s proposal for so called “Long Term,Common Sense, Cost Containment Strategies.”   These “strategies” are another attempt to limit your rights to the services determined in your individualized IPP/IFSP.  The proposal will allow the Regional Center to legally change your IPP/IFSP without your consent, to decide which provider you must use and to limit the frequency and duration of your services – all without your consent, and it removes or significantly weakens fair hearing rights.  The Legislature has rejected these Administration proposals every year because you demanded it.  Once again, your voices must be heard.

2.   Support the continuation of the existing Self-Determination pilot project and Delay the administration’s proposal for a new waiver program for Self-Directed services.  This new waiver is not real self-determination, it is a way for the State to reduce costs by placing a cap on the dollars that can be spent for each individual.   The dollar amount is a 10% (or more) reduction in dollars available for services for every person who participates.   This new waiver should be delayed so that a broader community consensus can be achieved on the key elements of the plan.

3.   Support proposals to strengthen employment services for adults with developmental disabilities.   These services are extremely cost-effective.  They support adults to become independent, productive and self-supporting members of their communities.

Send copies of your letter to Assembly Member John Laird, Senator Wes Chesbro, and Senator Denise Ducheny and to your local representatives.

  Please take the following actions now!

 
1.      Distribute this Action Alert as widely as possible. Download
 
2.      Fax or e-mail your letter to the legislators below.  Members of Assembly
Budget Subcommittee #1 are listed first. 
 
Senators Ducheny and Chesbro and Assembly Member Laird are key members of budget committees who also need to receive your message. 
 
All members may be addressed as “The Honorable” and all addresses are at State Capitol, Sacramento, CA  95814: 
 
Member
Room #
Fax #
E-mail
Assembly Member Hector De La Torre
4162
916-319-2150
 Assemblymember.delatorre@assembly.ca.gov
Assembly Member Sam Blakeslee
5126
916-319-2133
 Assemblymember.blakeslee@assembly.ca.gov
Assembly Member Loni Hancock
4126
916-319-2114
 Assemblymember.hancock@assembly.ca.gov
Assembly Member Gene Mullin
2136
916-319-2119
 Assemblymember.mullin@assembly.ca.gov
Senator Denise Ducheny
4081
916-327-3522
 Senator.ducheny@sen.ca.gov
Senator Wes Chesbro
5035
916-323-6958
 Senator.chesbro@sen.ca.gov
Assembly Member John Laird
6026
916-319-2127
 Assemblymember.laird@assembly.ca.gov
3. Send a copy to your local Assembly and Senate members

For additional information contact:

Tony Anderson

Executive Director

The Arc of California

(916) 552-6619 or

tanderson@arccalifornia.org