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Funding Authorized in the Budget's Provisional Language of 2018 (Bridge Funding for Service Providers)


The 2018 Budget Act provided the Department of Developmental Services (DDS) with one-time funding for service provider rate increases. The funding is contingent upon federal approval. DDS was tasked with determining the methodology of how the funds will be distributed, in consultation with the Department of Finance. These funds will be available until June 30, 2020.


DDS met with various stakeholder groups representing service providers, consumers and family members, advocates, regional centers, and legislative staff. The department also convened a public meeting with members of the Developmental Services Task Force on August 29, 2018. During this meeting, DDS presented various scenarios for distributing the funds. An open discussion was held that included options to provide rate increases to providers with the most significant needs in different parts of the State. Materials that were presented in the meeting can be found here under the August 29, 2018 heading.


On November 15, 2018, DDS met with the Developmental Services Task Force and announced the providers of community-based day programs and community care facilities under the Alternative Residential Model in “high cost” counties will receive the time limited rate increase. “High cost” counties are those with an average weekly wage of $900 or higher per the US Bureau of Labor Statistics data for the 4th quarter of 2017. The materials presented in this meeting can be found here. The estimated 2.07% rate increase is based on point-in-time expenditure data and subject to change based on updated expenditure data.


Pursuant to the 2018 Budget Act, federal approval for matching federal funds is required prior to this funding being available. Therefore, DDS will submit a request for approval to the Centers for Medicare and Medicaid Services (CMS), following a 30-day public notice period. CMS has approximately 90 days to review the request. DDS anticipates implementing the rate increase in May 2019, assuming CMS approval within this timeline.


The Department of Developmental Services

Rates and Fiscal Support Section
Telephone: (916) 654-2300

Last Updated: 1/9/2019