State law requires the California Association of Public Authorities for IHSS (CAPA) to provide recommendations each year on the distribution of California’s General Fund for Public Authority (PA) administrative funding in collaboration with the California State Association of Counties (CSAC) and County Welfare Directors Association of California (CWDA).
At the end of the fiscal year, any remaining unspent General Fund monies allocated for IHSS county administration or Public Authority administration shall be redistributed through a methodology determined in conjunction with CAPA and CWDA.
Our Finance and Executive Committees review and approve a recommendation to the CAPA Board of Directors for PA administrative funding after the state’s May Revise budget numbers are published. CAPA also shares approved recommendations with CSAC and CWDA prior to submitting the final recommendation to the state.
PA administrative funding can be found under the Estimated Methodologies section of the proposed state budget.
Historically, Public Authority (PA) administrative cost budgets are determined by taking the anticipated number of hours worked by IHSS providers in the county multiplied by the approved PA rate. The PA rate is comprised of four components:
- The hourly wage for Independent Providers
- An hourly amount for Independent Provider health benefits component
- Payroll taxes
- Public Authority administration/operations
State funding for provider wages and benefits has a separate line item under the California Department of Social Services (CDSS) budget from the funds designated for Public Authority operations.
In 2011, AB 106 was passed, allowing CDSS, in consultation with stakeholders including, but not limited to, counties and Public Authorities, including representatives of the CAPA shall develop a new rate-setting methodology for Public Authority administrative costs to go into effect commencing with the 2012–13 fiscal year.