Human Services committee: payment reform delayed; $6.8M in general assistance funds to support shelters

The Human Services committee reported that implementation of payment reform for designated and specialized service agencies will be postponed until after two required reports to the Joint Fiscal Committee, and that roughly $6.8 million in unspent general assistance funding will be used for shelter expansion, committee members said during a meeting.

The timing and funding matter because the department’s payment changes and contractor decisions are affecting both providers and the workforce, and the committee said it wants data on impacts before reforms take effect. Speaker 1, Committee member, summarized the schedule and budgeting details and said the committee will take testimony next week on several of the items.

“The department will have to report to joint fiscal committee at its July meeting and at its September meeting before implementation, and, they will need to report on the impact on individuals and on providers,” Speaker 1, Committee member, said, describing the compromise reached in conference negotiations over postponing payment reform. The committee was told the department would be able to proceed in October.

Committee members described ongoing negotiations related to conflict-free case management and said two contractors recently hired by the Department of Disabilities, Aging and Independent Living (DAIL) are already “having a direct impact on the workforce and the designated agencies” and, by extension, on individuals receiving services. The committee said that was one reason it sought a postponement and the scheduled reports.

Speaker 1, Committee member, said “there is going to be funding left at the end of this year, about 6,800,000,” and that the department has identified plans to use that money for shelter expansion and other purposes. The committee noted concern about whether the department had authority to repurpose those funds but said committee staff reviewed last year’s budget language and found “enough broad language in the budget bill from last year that enables them to do that.”

Members cautioned that new shelters are being planned without guaranteed operating funds and said the department is expected to request increased operating funding next year. The committee said it will monitor those budget requests and any related language in H 91 and other pending bills.

On housing and disability issues, the committee said a section inserted in the Senate version of H 127 would affect housing for people with developmental disabilities; members scheduled testimony on that provision for next Tuesday and assigned Representative Katie McClinn to present the item.

The committee also clarified confusion about child care financing after recent floor debate. Speaker 1, Committee member, said the House and Senate positions had diverged earlier, but that the conference outcome aligns with the House: the child care contribution (payroll tax) revenue will be used for child care. “So the senate has agreed with the house's position on this, and we're utilizing all child care tax money for child care, which is what it's intended for,” Speaker 1 said, noting the governor’s budget had proposed shifting $19 million out of the general fund.

Transportation staff told the committee they lacked clarity about language in a conference committee related to Medicaid transportation; members asked a colleague to follow up with conference leaders to obtain the precise language before further action.

Committee members listed several upcoming testimony items, including testimony from designated agencies and DAIL about payment reform and conflict-free case management, as well as a rescheduled appearance by Tyler Allen. The committee also noted several bills that have moved through the legislative process: H 13 and H 22 were reported delivered to the governor, and S 36 had cleared the Senate and will be transmitted to the governor after routine administrative processing.

The committee did not take formal votes during the update. Members said they would continue to gather testimony and data, watch budget language tied to shelter operating funds, and expect further public meetings of the Joint Fiscal Committee when the department reports in July and September.

The committee set no final deadlines in the meeting but scheduled testimony next week and asked staff to follow up on the Medicaid transportation language in the conference committee.