DATE: January 21, 2020
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director, Department of Social Services
Joy Moreno, Executive Director, In-Home Supportive Services Public Authority
SUBJECT: Memorandum of Understanding for Service Employees International Union Local 2015
RECOMMENDED ACTION(S):
TITLE
Sitting as the In-Home Supportive Services Public Authority Governing Board:
1. Approve the Memorandum of Understanding (MOU) between the In-Home Supportive Services Public Authority and Service Employees International Union Local 2015, effective upon approval by the Public Authority Governing Board through December 31, 2022.
2. Contingent upon approval of action one, review and approve the FY 2019-20 In Home Supportive Services Public Authority Rate Change Request Packet (State Form SOC 449) for submission to the California Department of Social Services.
Sitting as the County of Fresno Board Supervisors:
1. Approve the Memorandum of Understanding (MOU) between the In-Home Supportive Services Public Authority and Service Employees International Union Local 2015, effective upon approval by the Public Authority Governing Board through December 31, 2022.
2. Contingent upon approval of action one, review and approve the FY 2019-20 In Home Supportive Services Public Authority Rate Change Request Packet (State Form SOC 449) for submission to the California Department of Social Services.
REPORT
Approval of the recommended action item allows for the execution of a new MOU with Service Employees International Union Local 2015 (SEIU 2015) and provides for a $0.60 minimum wage supplement to the In-Home Supportive Services (IHSS) provider wages, effective April 1, 2020, contingent on State approval. Approval of the recommended action item two, which is contingent on approval of action item one, will allow for the County of Fresno to be reimbursed by the State for IHSS Public Authority (IHSS PA) Administrative costs and IHSS provider wages and benefits.
ALTERNATIVE ACTION(S):
If your Board does not approve the recommended action, the terms and conditions from the previous MOU which expired September 30, 2015 will remain in effect, and contract negotiations will continue.
FISCAL IMPACT:
There is an increase in Net County Cost associated with the recommended actions which will not be finalized and billed to the County until actual FY 2019-20 hours are certified in FY 2020-21. The County negotiated minimum wage supplement would result in a one-time adjustment to the County IHSS Maintenance of Effort (MOE), thereby increasing the County’s share of cost for the program.
For FY 2019-20, the Department has a County MOE of $43,549,271 for IHSS Assistance (Org 6420), which is offset with 1991 Realignment and Net County Cost. A $0.60 per hour increase effective April 1, 2020 (3 months remaining in budget year), applied to estimated FY 2019-20 Paid Hours, would adjust the County MOE to $44,321,841, or a County share increase of $772,570. In FY 2020-21, the new County MOE would be $48,505,131, a $3,213,889 increase over the estimated Fresno County MOE with no wage increase ($45,291,242).
Final adjustment to the FY 2019-20 MOE will be made after FY 2019-20 has concluded and will be billed in FY 2020-21. Therefore, no budget adjustments are needed at this time and sufficient appropriations to pay the FY 2019-20 MOE increase will be included in the FY 2020-21 Recommended Budget. Any costs above County MOE are 100% offset with Federal Title XIX and State General Funds.
The requested IHSS PA rate of $15.67 per hour is composed of a) negotiated IHSS provider hourly wages, a $13.00 minimum wage base and a $0.60 wage supplement ($13.60), b) negotiated hourly health benefit rate ($0.85), c) associated hourly payroll taxes ($1.12), and d) hourly IHSS PA Administrative cost reimbursement ($0.10) which is based on the FY 2019-20 Public Authority Adopted Budget (Org 5611).
DISCUSSION:
Your Board’s representatives have met and conferred with representatives from SEIU 2015 regarding a successor MOU with the IHSS PA since the previous agreement expired in September 2015. After four years and multiple bargaining sessions, the IHSS PA and SEIU 2015 reached a tentative agreement on December 18, 2019. The tentative agreement was ratified by SEIU 2015 membership on January 14, 2020. SEIU 2015 currently represents over 19,000 in-home service providers.
The significant components of the successor MOU, effective upon approval by the IHSS PA Governing Board through December 31, 2022, unless otherwise noted, include the following:
• MOU Term: Through December 31, 2022.
• Wage: The base wage for providers shall be the State or Federal minimum wage, whichever is highest.
• Wage Supplement: $0.60 supplement to minimum wage.
• General MOU Updates: Update or deletion of MOU language, and update of IHSS PA business processes.
Per Welfare & Institution Code 12306.16, there will be a one-time adjustment to the County IHSS MOE equal to 35 percent of the non-federal share up to the State participation cap ($14.10). The County shall have the responsibility of paying the entire non-federal share of the increase in excess of the State participation cap, unless the County is using utilizing the 10 percent option. For a County that is at or above the current State participation cap, the County may negotiate a contract and the State shall continue to participate in the non-federal share of 65 percent, in a cumulative total of up to 10 percent of the sum of the combined total of changes in wages, health benefits, or both within a three-year period and upon request by the County. The combined provider wage ($13.00), health benefits ($0.85) plus the wage supplement ($0.60) of $14.45 is above the State participation cap, thus requiring the utilization of the 10 percent option. To be eligible to participate in the 10 percent option the increase is required to begin prior to the State minimum wage reaching $15.00 per hour, set to occur on January 1, 2022. Once minimum wage reaches $15.00 there will no longer be a cap of State participation for approved increases. After that time, the non-federal sharing ratio for any locally established increase will change from 65 percent State and 35 percent County to 35 percent State and 65 percent County.
The agreement before you increases IHSS provider wages from the current rate of $13.00 per hour to $13.60 per hour effective April 1, 2020. The monthly health insurance premium payment to Healthcare Employees/Employers Trust Fund which is utilized to purchase health insurance for health care providers will remain at the same rate of $0.85 per hour. The monthly health benefit premium is equivalent to the average of the previous three months of paid hours multiplied by the hourly benefit cost. This cost will vary depending on monthly paid hours.
The IHSS MOE was revised by Governor Newsom and enacted into law by Senate Bill 80 (Chapter 27, Statutes of 2019). The revised MOE allows counties to manage IHSS costs and continue to deliver vital services on behalf of the State. SB 80 also lowers the annual inflation factor and the County share of any locally negotiated wage and benefit increases. The new MOE consists of only one MOE and no longer includes the County Administration, Public Authority Administration or CMIPS components that were part of the 2017 MOE structure.
The IHSS Public Authority Rate Request Packet (Attachment B) is required by the State to make necessary changes in the Case Management Information Payrolling System (CMIPS) and issue correct wages to the providers. The rate packet also serves as a mechanism to ensure the County receives State and Federal reimbursement for expenditures associated with the IHSS Public Authority and IHSS provider benefits and to ensure correct billing by the State to the County for the MOE. The Rate Request Packet approval by the State takes approximately 60 days.
OTHER REVIEWING AGENCIES:
The In-Home Supportive Services Advisory Committee has been advised of the tentative agreement.
REFERENCE MATERIAL:
BAI #20, April 29, 2014
BAI Addendum C, May 25, 2010
BAI #18, September 26, 2006
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement
On file with Clerk - Rate Change Request Packet (SOC 449)
CAO ANALYST:
Debbie Paolinelli