Disability service rates would track inflation when funding allows

The Human Services Department would adjust covered service rates using the Consumer Price Index, a broad measure of price changes. This would apply to home and community services delivered through intellectual disability and autism programs run by the Office of Developmental Programs. Federal approval is required, and money must be set aside for the increase. Available funding can cap the percentage increase. If inflation is flat or negative, rates would stay unchanged; a later increase would be reduced by consecutive prior decreases. These adjustment rules would not apply in a fiscal year when the department sets new rates under the cited state regulation. The measure would take effect immediately if it becomes law, with the annual rate schedule beginning October 1, 2026.

When covered rates rise under the inflation rule, providers would have to increase each direct support worker's total wages by the inflation percentage. The wage floor and penalties would cover direct support workers employed by providers in the same intellectual disability and autism service programs. The department would publish the program's wage floor each year based on any service-rate increase, and providers could not pay less. The inflation-based wage increase would not apply in a fiscal year when the department sets new rates under the cited state regulation. A provider that breaks the pay rules would face a department penalty capped at the hours underpaid multiplied by the gap between actual pay and the wage floor. Money collected from penalties would go to a state account for home and community services for people with intellectual disabilities. Wage-floor notices would begin October 1, 2026, and repeat yearly. Wage increases would be due by January 1 of the applicable fiscal year, and penalties would begin July 1, 2027.

Covered providers would report workforce and compensation information to the Human Services Department each year. Reports would cover the number of direct support workers and their average and starting wages for each type of service. Reports would have to follow the form and method chosen by the department. Reported compensation would include pay, benefits, and the employer's share of payroll taxes. The reporting duty would take effect immediately if the measure becomes law, but no first-report deadline is stated.