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County weighs options after Area Agency on Aging relinquishes role; providers unpaid
Summary
After the Central Coast Commission relinquished its Area Agency on Aging designation, the board directed staff to pursue a two-county configuration with Santa Barbara, press the California Department of Aging for a prompt RFP and to push for payment of unpaid provider invoices. Local meal and senior service providers reported unpaid invoices totaling hundreds of thousands of dollars.
The Board of Supervisors heard a forceful update Feb. 10 after the Central Coast Commission for Senior Citizens voluntarily relinquished its Area Agency on Aging (AAA) designation following a notice of intent to revoke from the California Department of Aging (CDA).
Linda Belch, deputy director of the county's Department of Social Services, summarized options for future AAA arrangements: the county could (1) request PSA 17 be split and operate a San Luis Obispo-specific AAA (but available administrative funding would be insufficient for county operation), (2) remain in a two-county PSA with Santa Barbara and seek a new nonprofit provider via CDA's RFP process, or (3) explore a three-county PSA including Ventura.
Belch said the PSA 17 allocation totals about $4.6 million and that only about 10% may be used for administrative costs; if San Luis Obispo were assigned its own PSA the local allocation would be about $2 million and administrative constraints would make a county-run AAA fiscally infeasible without additional funds. "Given the concern with administrative fiscal climate, staff do not recommend pursuing a County run AAA," Belch said.
Local providers told the board they continue delivering services despite months of unpaid invoices. Meals That Connect's executive director said the organization is owed $499,250 as of Dec. 31, 2025, and that the unpaid balance threatens the program's sustainability. "We are owed $499,250," the director said. Other subcontractors said they are owed six-figure sums.
Family Service Agency (FSA) of Santa Barbara said it would consider applying to be the new AAA and stressed the need for a clear and transparent funding formula to ensure each county receives its fair share. Providers urged the board to press CDA for payments and for a prompt RFP to select a new AAA quickly to avoid service disruption.
The board directed staff to coordinate with Santa Barbara County to request CDA issue an RFP for a new two-county PSA provider, to advocate for immediate payments to subcontractors, and to remain engaged in selection and contract oversight. The board's roll-call vote authorized that direction.
Why it matters: AAA funding supports home-delivered meals, long-term-care ombudsman services, health insurance counseling, adult day programs and home repairs that thousands of seniors rely on. Prolonged payment delays to subcontractors risk service continuity for a vulnerable population.
Next steps: County staff will work with CDA and Santa Barbara County, advocate for interim payments to providers, and participate in the RFP process for a new AAA provider. The board asked county staff and state representatives to press CDA to resolve unpaid invoices promptly.
