September 15, 2022
Current statute authorizes rate adjustments for some vendored service providers in certain circumstances including, but not limited to, when there is a change in the state minimum wage and implementation of rate reform pursuant to Welfare and Institutions (W&I) Code section 4519.10. This letter provides guidance for adjusting a Self- Determination Program (SDP) participant’s individual budget when there are rate adjustments for vendored service providers.
Consistent with W&I Code section 4685.8(m)(1)(A)(ii), which requires regional center certification that expenditures for the individual budget, including any adjustments, would have occurred regardless of the individual’s participation in SDP, a participant’s individual budget may be adjusted in the following situations:
- Increase in state minimum wage
- The individual budget may be increased by the amount necessary to bring employee pay into compliance with the increased state minimum wage.
- Change in rates for vendored services included in the individual budget calculation
- There is an increase or decrease in rates for the vendored providers and/or services associated with the expenditures used in the individual budget
- Change in rates for a regional center vendored provider, who is also providing SDP services
- The participant purchases SDP services from a provider who is also a regional center vendored service provider; and
- The participant and provider have agreed to a rate for SDP services that is equal to (or based on a percentage of) the provider’s rate established through their vendorization.
Consumers and family members should contact their local regional center with questions regarding this letter. Regional centers with questions should contact the Department at [email protected].
Sincerely,
Original Signed by:
BRIAN WINFIELD
Chief Deputy Director
This DDS directive may be available in other languages. Here is a link to the DDS website.
