SB 12, as introduced, McGuire. Developmental centers: downsizing and closures: funds.
Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals, referred to as developmental centers, for the provision of residential care to individuals with developmental disabilities. Existing law requires the department, when closing a developmental center, to comply with procedural requirements that include the submission of a detailed plan to the Legislature. Existing law requires the department to submit to the Legislature, on or before October 1, 2015, a plan or plans to close one or more developmental centers, as specified, and declares the intent of the Legislature that General Fund savings derived from the closure of developmental centers benefit persons with developmental disabilities living in the community.
Under existing law, the Lanterman Developmental Disabilities Services Act, the department is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports. Existing law authorizes the department to contract with regional centers to provide these services and supports.
This bill would, commencing January 1, 2017, require the Department of Finance to include in the Governor’s Budget and the May Revision a report on the estimated net savings derived from the downsizing or closure of developmental centers in the previous fiscal year, including the net savings calculated by computing the difference between the total General Fund savings or gains reasonably associated with the downsizing or closure of a developmental center and the aggregate General Fund costs of care of all consumers who move from a developmental center and into the community, as specified. The bill would require the net General Fund savings to be deposited into the Community Housing and Services Trust Fund, which the bill would create, and would require the moneys in the fund to be used, upon appropriation by the Legislature, for purposes of providing housing assistance, housing development, and specialty services for persons with developmental disabilities who are living in the community and receiving regional center services, as specified. The bill would make related findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) Individuals with developmental disabilities live full and rich
4lives in their communities, and participate in work, integrated
5living and employment, and other activities in their communities.
6(b) California has decreased the population of individuals living
7in institutions for individuals with developmental disabilities,
8known as developmental centers, from a peak of 13,000 individuals
9and eight developmental centers in the 1960s to fewer than 1,100
10individuals and three developmental centers in 2015.
11(c) Since 2004, the state has closed the Agnews
Developmental
12Center and the Lanterman Developmental Center and has
13transitioned 386 residents and 401 residents, respectively, to new
14homes in their communities.
15(d) The Legislative Analyst’s Office estimated that the cost of
16providing services and supports to individuals living in a
17developmental center in 2015 is more than $500,000 per person,
18while the cost of providing residential services to individuals in
19community-based settings ranges from $75,000 to $300,000,
P3 1exclusive of the costs of services such as day treatment, work
2support, or health benefits.
3(e) The State Department of Developmental Services estimates
4that the cost savings for individuals who have moved from the
5Lanterman Developmental Center into the community between
6January 2011 and January 2015 to be $46 million in General Fund
7operating costs, exclusive of any funding used to pay for services
8for these same
consumers in community placements.
9(f) Money saved from the transition of individuals does not stay
10within the developmental disabilities system, but instead is returned
11to the General Fund.
12(g) There is a great need for additional resources within the
13community as documented in numerous reports and legislative
14hearings.
Section 4474.12 is added to the Welfare and
16Institutions Code, to read:
(a) Commencing January 1, 2017, the Department
18of Finance shall include in the Governor’s Budget and the May
19Revision a report on the estimated net savings derived from the
20downsizing or closure of developmental centers in the previous
21fiscal year. The initial report shall compare the differences in the
22General Fund expenditure at each developmental center on July
231, 2015, against the General Fund expenditure at each
24developmental center on July 1, 2016. The report shall include all
25of the following information:
26(1) The total General Fund savings or gains reasonably
27associated with the downsizing or closure of a developmental
28center, including, but not limited to all of the following:
29(A) Proceeds from the lease of developmental center lands,
30including contractual agreements for utilization of the facility or
31its resources.
32(B) Reductions in the General Fund expenditures for services
33provided to individuals at the developmental centers.
34(C) Reductions in the General Fund expenditures for
35developmental center operations and maintenance costs.
36(2) The aggregate General Fund costs of care of all consumers
37who moved from a developmental center and into the community
38during the previous fiscal year. Cost of care shall include, but not
39be limited to, the General Fund costs for services and supports,
P4 1including all regional center funded services and supports,
2Medi-Cal, and other state-funded services.
3(3) The net savings
calculated by computing the difference
4between the totals in paragraphs (1) and (2).
5(4) A description of all General Fund community investments
6reasonably associated with the downsizing or closure of a
7developmental center, including, but not limited to, costs associated
8with the development and provision of services and supports for
9persons moving from a developmental center or at risk of
10institutionalization.
11(b) The net General Fund savings derived from the downsizing
12or closure of developmental centers, including any proceeds from
13the lease of developmental center lands, that is identified in
14paragraph (3) of subdivision (a) shall be deposited into the
15Community Housing and Services Trust Fund, which is hereby
16created in the State Treasury. The moneys in the fund shall be
17used, upon appropriation by the Legislature, for purposes of
18providing housing assistance, housing
development, and specialty
19services for persons with developmental disabilities who are living
20in the community and receiving regional center services, subject
21to all of the following conditions:
22(1) (A) Seventy-five percent of the moneys in the fund shall
23be used for housing assistance and housing development. These
24moneys shall be utilized to expand housing options for regional
25center consumers. These funds shall not be used to supplant
26existing federal, state, or county funds utilized to provide regional
27center housing or other services and supports.
28(B) Twenty-five percent of the moneys in the fund shall be used
29for specialty services. These moneys shall be utilized to establish
30specialty services similar to those currently available to
31developmental center residents and that are accessible to regional
32center consumers, with first priority in locations at
or near existing
33developmental center properties.
34(2) The department shall annually propose, through the annual
35state budget process, how these funds shall be used.
36(3) Moneys in the fund shall not be used to pay for any other
37program. These funds shall not be loaned to the General Fund or
38any other fund of the state, or to a county general fund or any other
P5 1county fund for any purpose other than those authorized by this
2section.
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