DAS proposes budget with $2 million cut to CBO contracts as IHSS costs drive growth; commission approves submission

San Francisco — The San Francisco Department of Disability and Aging Services (DAS) told the department's commission on Feb. 5 that a sharp rise in costs for In-Home Supportive Services (IHSS) will drive nearly all of the department's projected $39 million increase next fiscal year and asked the commission to approve submitting a budget that includes up to $2 million in cuts to community-based organization (CBO) contracts.

The commission voted unanimously to approve the department's recommended budget submission to the mayor's office, which also calls for the Human Services Agency to absorb the balance of agency-wide reduction targets. Deputy Director of Finance and Administration Dan Kaplan said the overall citywide funding gap requires DAS, DBFS and HSA administration to find $8.2 million in general-fund reductions and that DAS's share is approximately $2 million, largely from CBO contracting. "We are reducing general fund spending by $8,200,000," Kaplan said during the meeting.

Why it matters: IHSS — which provides paid caregivers for eligible older adults and adults with disabilities — accounts for the largest portion of DAS aid payments and is the single largest driver of the department's spending growth. Department officials told the commission that IHSS-related costs include statutory maintenance-of-effort (MOE) increases, expanding enrollment in health and dental benefits for…