Motion by Supervisor Zev Yaroslavsky

September 12, 2000

MOTION BY SUPERVISORS ZEV YAROSLAVSKY AND GLORIA MOLINA

Amendment to Item #71

Nearly one year ago today the Board of Supervisors approved funding that would allow the County Personal Assistance Services Council (PASC) to increase the hourly pay of IHSS providers above the minimum wage. The PASC then negotiated a $0.50 increase in IHSS wages to $6.25 per hour. Key to enabling the County to provide for this vital increase in wages was the State’s agreement at that time to pay for 80 percent of the non-Federal share of IHSS labor costs above the minimum wage.

A record surplus notwithstanding, this year the State curtailed its participation in the IHSS wage formula. Instead of paying for 80 percent of the non-Federal share, the state reduced its participation in the program to 65 percent of the non-Federal share, thereby increasing the County’s share from 20 to 35 percent. This had the effect of increasing the County’s costs to provide the existing wage level, let alone any wage increase. At the same time, the state budgeted nearly $100 million in funding to provide the 65 percent match to any locally approved IHSS wage increases, up to $7.50 an hour.

With 70,000 IHSS providers serving over 100,000 elderly or disabled recipients – 42 percent of the state caseload - Los Angeles County bears a tremendous financial burden under this program, which reduces what would otherwise be higher institutional or nursing home costs paid entirely by the State and Federal governments. Nevertheless, the County should strive to meet its obligations to both the IHSS recipients who are dependent on the program's vital supportive services, and to the providers who deserve a decent wage.

Under the old 80 percent formula, the County’s cost to allow the PASC to negotiate provider wages approaching $7.50 an hour, beginning this November, was $12.4 million. Under the 65-35% formula, the cost increased dramatically to over $33 million a year. We believe that the County should agree to provide funds to meet what it expected its obligation to be under the old 80 percent formula, so that an increase in IHSS wages can be provided this fiscal year. The County should then, in partnership with IHSS recipients and providers, ask the State to return to its previous 80 percent formula (or an equivalent participation in the program) by May 2001. This would allow IHSS wages to further increase to a level of approximately $7.50 without any significant increase in County costs.

WE, THEREFORE, MOVE THAT, the Board of Supervisors:

Approve an appropriation of $11,250,000 from the two General Fund Provisional Financing Units, in combination with a dedication of $2,100,000 in growth of realignment revenue earmarked for the IHSS program, to increase the IHSS assistance budget for a Personal Assistance Services Council (PASC) negotiated wage increase up to $6.75 per hour effective November 2000, and up to $7.00 per hour effective June 2001 to IHSS providers for the FY00-01 fiscal year beginning November through June 2001 if the 80-20 formula (or some alternative ongoing guarantee) is reflected in the Governor’s FY 01-02 May Revised budget, beginning July 2001.
Direct County Counsel, in consultation with the CAO and the Department of Public Social Services, to prepare an amendment to the contract between the County and the PASC which reflects that, based on the County's calculations, would allow for the continuation of the $6.25 wage through October, 2000, and a PASC negotiated wage increase of up to $6.75 beginning in November 2000, followed by a further increase to at least $7.00 if the 80-20 formula (or some alternative ongoing guarantee) is reflected in the Governor’s FY 01-02 May Revised budget.
Delegate authority to the Director of the Department of Public Social Services to sign the above referenced amendment to the contract.
Direct the County Department of Health Services to report to the Board of Supervisors on options for providing health services or insurance coverage to IHSS workers by January 9, 2001.
Direct the CAO, DPSS, and the County’s legislative strategist, in partnership with SEIU Local 434b and the PASC to develop a legislative strategy and advocacy plan to cause the State to either return to its previous 80 percent funding formula for IHSS wages and benefits, or develop some alternative mechanism to increase its ongoing program participation to a level that would guarantee IHSS wages of at least $7.00 an hour.