Bill > S3427

Introduced Session

This bill stipulates that on or after the effective date of the bill, the terms of a contract entered into between the Department of Children and Families (DCF) and a children, youth, and family organization include an annual increase in the cost of living adjustment received by the organization. The cost of living adjustment would be based on the Consumer Price Index for the previous 12-month period beginning October 1 and ending September 30, as published by the United States Department of Labor, and DCF would be required to announce the rate of the increase on October 1 of each year. As used in the bill, a "children, youth, and family organization" means an organization that provides programs and services to children, youth, and families through contracts entered into with DCF including, but not limited to, programs partially or fully funded by the State Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.). DCF contracts with children, youth, and family organizations to provide child protective and treatment services through a competitive bidding process whereby a fixed rate is established for the provision of services. The fixed rate includes all the costs associated with the delivery of services including, but not limited to, salary, wages, and compensation for the staff of the organizations who provide the direct services to children, youth, and families. Such staff members continually face increases in their living expenses, but the rates provided to children, youth, and family organizations contracted with DCF are not adjusted for cost of living increases. One-time cost of living adjustments provided to the organizations by the Legislature do not keep pace with rising costs and inflation. This bill would establish a statutory mechanism for providing annual cost of living adjustments to children, youth, and family organizations contracted with DCF to ensure that the provision of essential services are fully funded and sustainable, and the staff providing such services are appropriately compensated.

AI Summary

Committee Categories

Patrick Diegnan (D)*,  Joe Lagana (D)*,  Tony Bucco (R), 

Referred to Senate Budget and Appropriations Committee (on 06/17/2019)