Keep the 8% Rate Increase Alive

 May 28, 2019


Contact the Conference Committee

This is a Good News / Bad News message, and we need your action this week to push for more good news in the future.


The Good News

On Friday, California Senate President pro Tempore Toni G. Atkins (D-San Diego) and Senate Budget and Fiscal Review Committee Chair Holly J. Mitchell (D-Los Angeles) announced the Senate’s key priorities for the 2019-2020 budget, and both the Governor’s targeted increases for certain services and an 8% increase for all other services (staring January 2020) are part of the 31-item priority list. This is the list that will be discussed in the Budget Conference Committee.

Both houses eliminated the recession-era cuts (application of the 14-day uniform holiday schedule and half-day billing, and the freeze on social recreation and camping). The Senate also funded a solution to the “minimum wage quirk” that keeps providers with local minimum wages from receiving any funding related to state minimum wage increases.

The Bad News

The dynamic will always be toward compromise or the lower number, and the Assembly was considerably lower.

The leadership in the Assembly held the funding increase to the Governor’s proposed increase but spread it evenly across providers, for a 5.7% increase. Since the proposal stays within the Governor’s fiscal parameters, he’s likely to support this approach. The Assembly didn’t address the minimum wage quirk.

The Actions

We need you to do three things this week.

Task 1: The Senate Conferees

We need to thank and encourage Senators on the Conference Committee and Pro Tem Toni Atkins to keep the 8% increase in the budget. Send an e-mail or call their office and deliver a message like this:

We thank the Senate for adding a permanent 8% rate increase for all service providers and eliminating the three recession-era cuts (14-day holiday schedule, half-day billing, and social recreation services). The DDS rate study says the service system is underfunded by $1.8 billion, and providers can’t hold out any longer. So, please support the commitment the Senate has made and keep the 8% rate increase in the budget throughout the negotiations.

Senators to Contact

Senator Holly J. Mitchell (D-Los Angeles), Chair


Capitol Office (916) 651-4030

District Office (213) 745-6656

Senator John M. W. Moorlach (R-Costa Mesa)


Capitol Office (916) 651-4037

District Office (714) 662-6050

Senator Jim Nielsen (R-Tehama)


Capitol Office (916) 651-4004

District Offices (916) 772-0571, (530) 751-8657, (530) 879-7424

 Senator Richard D. Roth (D-Riverside)


Capitol Office (916) 651-4031

District Office (951) 680-6750

Senator Nancy Skinner (D-Berkeley)


Capitol Office (916) 651-4009

District Office (510) 286-1333

Senator Toni Atkins, President Pro Tem


State Capitol (916) 651-4039

District Office (619) 645-3133

Task 2: Assembly Conferees

We need to push Assembly Members on the Conference Committee and Speaker Anthony Rendon to relax their position and accept the Senate proposal on the DDS budget that gives providers an 8% rate increase. So, call or e-mail them. The basic message is:

The DDS rate study says service providers are underfunded by $1.8 billion. We provide vital services to people with developmental disabilities, and we need a rate increase to keep operating. Please support the Senate proposal for an 8% across-the-board increase.


Assmeblymembers to Contact

Phil Ting


Capitol Office (916) 319-2019

District Office (415) 557-2312

Chad Mayes


Capitol Office (916) 319-2042

District Office (760) 346-6342

Kevin McCarty


Capitol Office (916) 319-2007

District Office (916) 324-4676

Jay Obernolte


Capitol Office (916) 319-2033

District Office (760) 244-5277

Shirley Weber


Capitol Office (916) 319-2079

District Office (619) 531-7913

Anthony Rendon


Capitol Office (916) 319-2063

District Office (562) 529-3250

Task 3: Your Legislators

If your legislator signed the letter supporting the 8%, call them and thank them for their support. Tell them the current situation and urge them to talk to members of the Conference Committee.

Use this link to find your legislator:

Letter Signers

Below are the Democrats who signed the budget letters. All Republicans signed a separate budget letter.


Assembly Letter

Jim Frazier

Chris Holden

David Chiu

Kansen Chu

Ken Cooley

Jesse Gabriel

Eduardo Garcia

Mike Gipson

Todd Gloria

Tim Grayson

Jacqui Irwin

Tom Lackey

Brian Maienschein

Jose Medina

Kevin Mullin

Adrin Nazarian

Cottie Petrie-Norris

Robert Rivas

Blanca Rubio

Susan Rubio

Rudy Salas

Christy Smith

Buffy Wicks

Scott Wilk

Senate Letter


Henry Stern

Jim Beall

Bill Dodd

Cathleen Galgiani

Steve Glazer

Jerry Hill

Ben Hueso

Susan Rubio

Nancy Skinner

Jeff Stone

Scott Wiener


Chart of Issues

Here is a more complete summary of the differences on the budget affecting DD providers that the Conference Committee will be addressing.


Assembly Sub1
Senate Sub3


Approved Governor’s May Revise amounts (approximately $200M GF annually), but as an across the board provider rate increase.

Made the increase on-going. (rejecting the Governor’s May Revision “sunset” for these costs at 12/31/21)

Added placeholder Trailer Bill Language (TBL) to require the Administration to go through a process toward incorporating a budget and policy proposal for phased-in rate reform as part of the Jan. 10, 2020 Governor’s Budget.

Provider rate adjustments


Requires Conference Committee to Reconcile Differences


Between $197.4 – $393.2M GF

Accepted Governor’s May Revise proposal to target increases for SLS, supported employment, CCFs w/ARM rates, family home agency, personal assistance, transportation assistant, and supplemental support services (average 18% increase for these services).

Rejected sunset date and make ongoing.

Provided an 8% increase for providers not included in the Governor’s May Revision proposal AND an 8% increase for those providers included in the Governor’s May Revision proposal that would have seen an increase of less than 8%. (Total annual GF of $393.2M (DDS estimate))


Adopted the Uniform Holiday Schedule cut, but on an on-going basis (rejecting the Governor’s May Revision “sunset” for these costs at 12/31/21), with placeholder TBL that repeals this section of code.
Uniform Holiday Schedule


Assembly and Senate in Agreement


$30.1M GF

Rejected sunset date and adopted placeholder trailer bill language to permanently repeal.


Adopted the Uniform Holiday Schedule cut, but on an on-going basis (rejecting the Governor’s May Revision “sunset” for these costs at 12/31/21), with placeholder TBL that repeals this section of code.
Half-Day Billing Policy


Assembly and Senate in Agreement


$1.6M GF

Rejected sunset date and adopted placeholder trailer bill language to permanently repeal.


Approved $14.8 M GF on-going to restore the social recreation and camp benefit starting July 1, 2019 and approved placeholder TBL to effectuate this change.
Social Recreation and Camp Services


Assembly and Senate in Agreement


$14.8 GF

Restored social recreation and camp services. Adopted placeholder trailer bill language to implement this change.


No action.
Local Minimum Wage Adjustments


Requires Conference Committee to Reconcile Difference


Between $8M GF

Approved placeholder trailer bill language that would allow vendors in areas where the local minimum wage is higher than the state minimum wage access to rate adjustments associated with state minimum wage increases. (Approximately $8M GF according to the LAO)


Approved Proposition 56 funding for Medi-Cal rate increases for ICF-DD (15 bed or fewer) and placeholder TBL to eliminate rate freeze.
ICF (15 bed or fewer) Rate Freeze and rate Increase


Requires Conference Committee to Reconcile Difference


$37 Million

No action.