May 3 Oppose letter Governor's Budget Proposed Delay for Developmental Services Provider Rate Reform

May 3, 2024

State Senator Scott Weiner
Chair, Senate Budget Committee
1021 O Street, Suite 8620
Sacramento, CA 95814

Assemblymember Jesse Gabriel
Chair, Assembly Budget Committee
1021 O Street, Suite 8330
Sacramento, CA 95814

RE: Developmental Services Provider Rate Reform – Oppose proposed delay 

Dear Senate and Assembly Budget Leaders: 

On behalf of the Marin County Board of Supervisors, I respectfully request that you maintain the current timeline of July 1, 2024 for the long-awaited final phase of the Developmental Services Provider Rate Reform—which would bring full implementation this July. These service providers deliver care to one of the most vulnerable groups in our state; adults and children with developmental disabilities. Providers support individuals and their families in ensuring they can make choices and lead independent, productive lives in their communities. 

The Governor’s proposed one-year delay of implementing full pay for Service Providers from July 2024 to July 2025 would have immediate, negative effects on a workforce in high demand, and already challenged with recruitment and retention. Lower-wage care workers are also a workforce that is disproportionately made up of women, people of color, and/or the primary earners for their families. 

The Budget Act of 2021 authorized a multi-year phased-in implementation of rate models that support a person-centered, outcomes-based focus for California’s developmental services. In 2022, the state recognized the urgency to increase compensation for these providers in response to a workforce shortage of direct care staff – and accelerated the multi-year rate increase timeline to be fully implemented in July 2024: meaning all service providers’ base pay would equal 90 percent of its rate model, and 10 percent would be available as quality incentive payments if the provider achieves specified targets. 

We understand the state’s budget crisis and the many pressing priorities policymakers must consider in difficult funding decisions. However, this funding delay could have cascading effects beyond its short-term savings. Direct care staff shortages and disruptions in care could mean family members or other caretakers may need to scale back or leave their own employment to care for their loved ones with developmental disabilities – resulting in further tax loss, increased reliance on safety net assistance, and earnings loss to local economies. 

For the above reasons, we respectfully request that you maintain the timeline of July 1, 2024 to implement the Developmental Services Provider Rate Reform. 

Sincerely, 

Dennis Rodoni, President 
Marin County Board of Supervisors 

Cc: Marin County Board of Supervisors 
Senator Mike McGuire 
Assemblymember Damon Connolly