Impact of the State Budget on the Developmental Services System and People who Rely on Regional Center Funded Supports

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Impact of the State Budget on the Developmental Services System and People who Rely on Regional Center Funded Supports

The Administration, Senate, and Assembly have reached an agreement on a state budget plan, paving the way for a nearly $300 billion state budget for fiscal year 2024-25. There is a lot to unpack in the budget agreement, and Disability Rights California will have more to share in the coming weeks.  

The budget deal includes a number of changes that will directly impact the developmental services system and people who rely on regional center-funded supports. Here are some of the highlights: 

The biggest news: Rate increases will go into effect on January 1, 2025. In January, the Administration proposed to delay previously scheduled provider rate increases by one year: from July 1, 2024 to July 1, 2025. This proposed delay sparked widespread alarm from community advocates about the further destabilization of critical services for nearly half a million people and their families. Instead, the Administration and Legislature reached an agreement delaying the rate increase for only 6 months to January 1, 2025. 

This was a hard-fought victory for our community. And it would not have been possible without steadfast support from the Senate and Assembly Budget Committees, who fought alongside the community every step of the way, or the tireless advocacy of individuals, families, and organizations from across the system.  

Other proposals from the administration that were rejected by the Legislature, with the support of DRC, included: 

  • A proposal to relocate the newly created Office of Employment First from California Health and Human Services to the Department of Rehabilitation; and 
  • A proposal to eliminate funding to help people navigate the complex process of obtaining rate increases based on a health and safety need. 

The new budget will also bring new laws, most of which will go into effect on July 1, 2024. These laws are all in Assembly and Senate Bill 162.   

Here is a summary of the most significant changes to the law: 

1. The ability for people served and families to have IPP and IFSP meetings virtually upon request is now permanent.  

Under current law, the option to have these meetings virtually would have gone away after June 30, 2024. However, following advocacy from DRC, the Integrated Community Collaborative, Public Counsel, Children’s Law Center and others, this option and the increased access that provides will now be preserved.  

In addition, new requirements been added about in-person contacts between regional centers and the people they serve. Starting July 1, 2024, if a person served has not been seen in person by their regional center in the previous 12 months for IPPs or previous 6 months for IFSPs, the regional center must now hold an-in person meeting or visit with the person at a time and location convenient to the person or their family/authorized representative.  

The new in-person meeting requirement will be reviewed by the Department of Developmental Services with stakeholder input in 2 years.  

2. Social recreation services, camping services, and non-medical therapies will be easier for people to obtain, and have a stronger focus on building social relationships and networks, and promoting access to underserved communities. 

New requirements better and more clearly define these services and the outcomes they are intended to achieve—namely, opportunities to build relationships through shared interests or activities, and to build social networks that reduce isolation and strengthen community ties.  

They also prohibit specific regional center policies that restrict access, such as policies that prevent funding for private lessons or non-specialized services, and emphasize the Legislature’s intent to reduce administrative barriers and promote access to communities that have experienced service disparities.  

Non-medical therapies will also be added to the list of services that are available under participant-directed services starting in January 2025, so that parents will no longer have to pay out of pocket and wait months to get reimbursed for these services. 

Regional center staff and hearing officers must complete training on these changes by March 2025. 

3. The Family Cost Participation Program that previously imposed fees on families whose earnings exceed a specific amount for day care, respite, and camping services for children has been repealed. 

4. The Master Plan for Developmental Services has been codified into state law. 

These changes give the Legislature an oversight role over a process intended to strengthen accessibility, quality, and equity for all people served by the developmental services system. These changes also require California Health and Human Services to submit a report to the Legislature "that summarizes the recommended components of the master plan" by March 15, 2025, with annual updates from March 2026 to March 2036.