SENATE BILL REPORT

                   SB 5800

              As Reported By Senate Committee On:

                  Ways & Means, March 1, 1995

Title:  An act relating to developmental disabilities.

Brief Description:  Recognizing that financial savings from efficiencies in the developmental disabilities program should be redirected within the program for community‑based services.

Sponsors:  Senators McDonald, Wojahn, Cantu, West, Rinehart, Pelz and Bauer.

Brief History:

Committee Activity:  Ways & Means:  2/21/95, 3/1/95 [DPS].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 5800 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Rinehart, Vice Chair; Loveland, Vice Chair; Bauer, Cantu, Drew, Finkbeiner, Fraser, Gaspard, Hochstatter, Long, McDonald, Moyer, Pelz, Sheldon, Snyder, Spanel, Sutherland, West, Winsley and Wojahn.

Staff:  Tim Yowell (786-7715)

Background:  The Division of Developmental Disabilities in the Department of Social and Health Services will serve an average of about 11,500 children and adults each month this biennium, with a total state and federal budget of $646 million.  About 1,400 people will be served in one of the five state-operated institutions, or Residential Habilitation Centers, at a cost of $303 million.  The other 10,000 people will receive residential, employment, day activity, respite care, or other community support services at a cost of about $336 million.

After controlling for inflation, the Division of Developmental Disabilities (DDD) budget has increased by $278 million since the 1983-85 biennium, or by about 75 percent.  The number of persons receiving DDD services increased by 50 percent during this same ten-year period.

Despite these increases, because of state funding limitations, many children and adults with developmental disabilities do not get the services they and their families need, and that number is growing.  For example, in June 1994 there were approximately 3,400 developmentally disabled adults living with a parent or other family member who was not receiving any publicly-funded help with their care.  This is an increase of 700 since the end of 1991, when 2,700 developmentally disabled adults were living at home without any family support.

During the decade prior to the 1993-95 biennium, there were very few program reductions or efficiencies in developmental disabilities.  In 1993-95, there were approximately $42 million of state general fund state reductions and efficiencies, which were balanced by $44 million of state general fund cost increases.  However, only about $20 million of those increases were to provide community services for additional people:  the balance went to covering the carry-forward costs of 1991-93 salary and vendor rate increases.  Under the Governor's proposed 1995-97 budget, there would be approximately $19 million of state general fund reductions and efficiencies in the developmental disabilities budget (including $8 million of federal fund shifts), which would be balanced by $53 million of increased state general fund expenditures, of which about $22 million would be used to serve additional persons in the community.

Summary of Substitute Bill:  It is the intent of the Legislature that any financial savings from reductions and efficiencies in the DDD budget be redirected to provide public or private community services for persons who otherwise do not receive them.

Substitute Bill Compared to Original Bill:  It is clarified that the community services may be either state operated or privately contracted.

Appropriation:  None.

Fiscal Note:  Requested on February 7, 1995.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  There are many people who are unserved and desperately in need of services.  This bill provides them and their families with some hope they may get the services they need.  Families have and are willing to continue providing a great deal of assistance, but they need support.  The bill is not an iron-clad formula that money will never be exported from the DD budget, no matter what.  It is more a statement of where we want to go.

Testimony with Concerns:  These aren't really "savings."  They are a reallocation of funds from people living in institutions to those in the community.  There will not be significant savings from downsizing the RHC's because federal funds will be lost.  A better approach would be to find revenue-generating uses for some of the RHC land, and open them up to the community.  If you want to save money, the place to save it is in the bureaucracy.

Testified:  Senator Dan McDonald; Cherie Tessier; Doug Sayan; Sylvia Fuerstenberg; Margaret Lee Thompson; Nancy Melzer; Tracy Vandenwald; Heinz Leistner; Tom Dean; Dave Wood; Jess Cartesman; Tim Hornbecker; Tom Carr; Janice Skinner; Rob Hallman; Ed Brewster; Norm Davis; Bill Hacek; Janet Adams; Paul Strand.