Back to 2010 Issues

2010

Other Budget Issues

Further Detail

SB 1755 Extension of Limited Term Positions. The budget requests a two year extension of 23 limited term positions to continue the development and implementation of a new reimbursement rate structure for the Medi-Cal Adult Day Health Care (ADHC) benefit as required by Chapter 691, Statutes of 2006 (SB 1755, Chesbro). Specifically, the budget requests 23 positions as follows: 19 auditors, one research analyst, two audit managers, and one staff counsel.  These personnel would be responsible for financial audits, gathering and maintaining cost data, developing and implementing a new rate methodology, and responding to appeals of the new rate structure. These positions were originally established in 2006 and approved through December of 2010. Chapter 161, Statutes of 2009 (SB 117, Corbett) extended the required implementation date of the new rate methodology.  According to the department, the new rate methodology is scheduled for implementation on August 1, 2011. 

Analyst’s Recommendation. Consistent with our budget recommendation to support the Governor’s proposal to eliminate the ADHC benefit, we do not recommend approval of this request.  However, if the Legislature chooses to continue the ADHC benefit, we recommend the Legislature approve 20 of the 23 requested positions.  We recommend against approval of two auditor positions to account for a decrease in the number of ADHCs since 2006.  We also recommend against approval of the staff counsel.  The need for staff counsel to address appeals during the first three years of implementation of the new rate structure appears premature given that a new rate methodology has not yet been implemented and is not expected to be implemented until August 1, 2011. Additionally, as of February 2010, the vacancy rate in the Office of Legal Services division is relatively high at 14.5 percent. Reduce 4260-001-0001 by $83,000 and 3 positions.