Some new analysis of the Governor’s plan to shift costs for
In-Home Supportive Services (IHSS) back to Counties shows the
impact is larger and grows faster than originally thought.
Counties stand to lose $625 million in the first fiscal year, and
the total cumulative cost is more than $7 billion by the 2022-23
fiscal year. Tables showing the increased costs are available at this link.
The state, hoping to reduce costs by coordinating IHSS with other
health care services, took over more financial responsibility for
IHSS in 2012. In doing so, it capped the amount Counties would
have to pay. In the ensuing years, costs for the program have
ballooned due to increases in the minimum wage, paid sick leave,
and overtime pay for IHSS workers. The Governor is now proposing
to shift all of these costs back to counties, but the dollar
amounts of the cost shift would be devastating to counties both
large and small.
For example, Los Angeles pegs their raw cost increase at $220
million and Yolo County pegs theirs at $4 million. That’s a lot
for a county of any size to manage, and will have negative
consequences for funding in other areas, like public safety,
local streets and roads, health and mental health. Because IHSS
is a federally mandated program and 1991 Realignment revenues are
not projected to keep up, counties would have little choice but
to make cuts to other programs to cover the cost shift.
CSAC continues to meet with our members and other stakeholders to
discuss the local impacts of the cost shift.
