HB3696 100TH GENERAL ASSEMBLY

LRB100 08791 KTG 18930 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3696

Introduced 2/10/2017, by Rep. Robyn Gabel

SYNOPSIS AS INTRODUCED:

20 ILCS 1705/55.5 new
305 ILCS 5/5-5.4i new

Amends the Mental Health and Developmental Disabilities Administrative Act. Requires the Department of Human Services to establish reimbursement rates that build toward livable wages for front-line personnel in residential and day programs and service coordination agencies that serve persons with intellectual and developmental disabilities, including, but not limited to, intermediate care facilities for persons with developmental disabilities, community-integrated living arrangements, developmental training and employment programs, and other residential and day programs for persons with intellectual and developmental disabilities that are supported by State funds or funding under Title XIX of the Social Security Act. Requires the Department to increase rates and reimbursements so that direct support persons earn a base wage of not less than $15 per hour and so that other front-line personnel earn a commensurate wage. Defines "front-line personnel". Amends the Illinois Public Aid Code. Provides that for all facilities licensed by the Department of Public Health under the ID/DD Community Care Act as intermediate care facilities for persons with developmental disabilities and under the MC/DD Act as medically complex for the developmentally disabled facilities, the payment rate shall be increased to fund rates and reimbursements so that direct support persons earn a base wage of not less than $15 per hour and so that other front-line personnel earn a commensurate wage.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

WHEREAS, An estimated 27,000 children and adults with intellectual and developmental disabilities are supported in community-based settings in Illinois; direct support persons (DSPs) are trained paraprofessional staff that are engaged in activities of daily living and community support; these employees earn wages that place them and their families below the poverty level; and

WHEREAS, According to the most recent Illinois industry surveys, the average DSP wage in Illinois is $9.35 per hour, which is 26% below the U.S. Department of Health and Human Services' poverty threshold of $11.83 for a family of 4, and one out of every 4 DSP jobs in provider agencies are going unfilled, with 34% of DSPs working in residential programs having been with the service provider for less than a year; low wages often compel DSPs to work many overtime hours or hold down a second job to support their families; research by the American Network of Community Options and Resources, inclusive of Illinois, reveals 56% of DSPs rely on public assistance to make ends meet, creating additional expenditures for State government; low wages are a consequence of the historically low reimbursement rates paid by the State of Illinois to community-based service providers; over the last 9 fiscal years, there has been no increase in State funding to these agencies; by contrast, the Consumer Price Index increased 16% over the same period; and

WHEREAS, The lack of adequate wages for employees who perform the challenging work of supporting persons with intellectual and developmental disabilities results in high employee turnover, which in turn negatively impacts the quality of services provided, as described in a recent Chicago Tribune series; higher wages are proven to reduce staff turnover, improving stability and quality of services while reducing employer training costs; and

WHEREAS, Rising wages in several other sectors now mean, despite strenuous efforts to recruit new workers, agencies are experiencing staff vacancy rates of up to 25%; excessive vacancies force employers to rely more on overtime, leading to staff burnout and driving up costs; for the second year in a row a federal court monitor documented how this growing hiring crisis impedes the ability of community disability agencies to expand and accommodate persons newly approved for services as part of the Ligas Consent Decree; and

WHEREAS, The General Assembly finds that in order to reduce turnover, increase retention, fill vacancies, and ensure DSPs are adequately compensated for the critically important work they do, an increase in rates and reimbursements to community-based service providers to effectuate an increase in the hourly wage paid to DSPs is needed; and

WHEREAS, It is the purpose of this Act to increase the wages of DSPs in community disability agencies beyond the poverty level and to a level competitive with rival employers, in an effort to improve the lives of DSPs and the lives of the vulnerable persons they support; therefore

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Mental Health and Developmental Disabilities Administrative Act is amended by adding Section 55.5 as follows:

(20 ILCS 1705/55.5 new)

Sec. 55.5. Increased wages for front-line personnel. The Department shall establish reimbursement rates that build toward livable wages for front-line personnel in residential and day programs and service coordination agencies that serve persons with intellectual and developmental disabilities, including, but not limited to, intermediate care facilities for persons with developmental disabilities, community-integrated living arrangements, developmental training and employment programs, and other residential and day programs for persons with intellectual and developmental disabilities that are supported by State funds or funding under Title XIX of the Social Security Act. The Department shall increase rates and reimbursements so that direct support persons earn a base wage of not less than $15 per hour and so that other front-line personnel earn a commensurate wage.

As used in this Section, "front-line personnel" means direct support persons, aides, front-line supervisors, qualified intellectual disabilities professionals, nurses, and non-administrative support staff working in service settings outlined in this Section.

Section 10. The Illinois Public Aid Code is amended by adding Section 5-5.4i as follows:

(305 ILCS 5/5-5.4i new)

Sec. 5-5.4i. Increased wages for front-line personnel. For all facilities licensed by the Department of Public Health under the ID/DD Community Care Act as intermediate care facilities for persons with developmental disabilities and under the MC/DD Act as medically complex for the developmentally disabled facilities, the payment rate shall be increased to fund rates and reimbursements so that direct support persons earn a base wage of not less than $15 per hour and so that other front-line personnel earn a commensurate wage.

As used in this Section, "front-line personnel" means direct support persons, aides, front-line supervisors, qualified intellectual disabilities professionals, nurses, and non-administrative support staff working in service settings outlined in this Section.