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TEHAMA COUNTY IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY - Public Authority Program Manager David Madrigal
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Requested Action(s)
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a) Request adoption of a resolution approving the Memorandum of Understanding (MOU) between the Tehama County In Home Supportive Services Public Authority and the Service Employees International Union (SEIU), Local 2015, effective 3/19/24 to 3/18/27
b) Request authorization to submit the In-Home Supportive Services Public Authority/Non-Profit Consortium Rate package, which notifies California Department of Social Services of the wage increase for In-Home Supportive Services providers from $16.00 to $17.00 per hour plus estimated payroll taxes, and updates the Public Authority administrative rate from $.22 to $.24 per hour, with the requested effective date of 7/1/24
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Financial Impact:
The increased pay for the In-Home Supportive Services (IHSS) providers will raise the cost of the County’s annual IHSS Maintenance of Effort (MOE). The IHSS MOE is paid by Social Services each fiscal year, and it is intended to pay the County’s share of the IHSS providers’ wages. Currently providers are paid minimum wage of $16 per hour. If approved, the pay increase will be added to the minimum wage rate going forward.
The MOE in the current fiscal year 2023/24 is $2,461,852. The MOE has an annual 4% escalator, so the cost will increase 4% each fiscal year, in addition to pay increase. The projected costs below take into account what would have been paid without the pay increases (MOE plus escalator) vs with the pay increases (MOE plus pay increases plus escalator).
In the first year, the pay rate increases by $1.00 per hour. The projected cost is $313,029 and the IHSS MOE is estimated to be $2,873,355.
In the second year, the pay rate increases to $1.25 per hour. The projected cost is $410,434 and the IHSS MOE is estimated to be $3,073,173.
In the third year, the pay rate increases to $1.50. The projected cost is $515,131, and the IHSS MOE is estimated to be $ $3,284,379.
In these three years of implementation, the IHSS MOE is projected to be $1,238,594 higher with the pay increases, than it would have been absent the pay increases.
Social Services’ Health & Welfare Realignment is responsible to pay this cost. In the most recent full fiscal year 2022/23, the revenue received totaled $5,224,914. The IHSS MOE currently expends 47% of this revenue, and that will increase up to approximately 63% upon full implementation. The revenue received varies from year to year. It is subject to the economy, as it is comprised of state sales tax and vehicle license fees.
Health & Welfare Realignment revenue is intended to also cover the County’s share of Child Protective Services, Adult Protective Services, Foster Care, Adoptions, CalFresh, CalWORKs and In-Home Supportive Services.
Background Information:
The preceding MOU with the providers’ union expired in 2012. The County and union have met and conferred sporadically since then, and members on each side have changed over time. IHSS Public Authority and SEIU Local 2015 have recently come to agreement on the MOU presented today.
At this time, the California Department of Social Services (CDSS) requires notification of the approved MOU and approval requested of the initial pay increase, which is reflected in the SOC 449 rate package. The additional two pay increases will be submitted at least 60, but not more than 90 days before their effective dates. Rate changes take effect the first day of the month following CDSS’ approval, per California Welfare and Institutions Code section 12306.1(b).
The payroll taxes on the SOC 449 are estimated based on the most recent four quarters’ actual gross wages and employer deductions.
Public Authority’s administrative rate is a measure used by CDSS to look at the administrative cost of Public Authority per hour worked by the providers. It is calculated on Public Authority’s Adopted Budget (budget unit 5101) divided by estimated hours worked by the providers in fiscal year 2023/24. It is measure used by CDSS, and is not associated with the IHSS MOE.
Upon approval of the rate package, CDSS initiates the providers’ pay increase and calculates the official increase for the IHSS MOE.