Bill > A5268

Introduced Session

This bill makes a FY 2021 supplemental appropriation of $180 million to the Department of Children and Families (DCF) and the Department of Human Services (DHS), via Interdepartmental Accounts, for increased rates for social service providers that are in financial distress due to coronavirus disease 2019 (COVID-19) public health crisis. It is the sponsor's intent to ensure the continued operation of providers who serve the most vulnerable in the State as they face the financial hardships caused by the COVID-19 pandemic. Additional safety protocols, decreased enrollment, and shifting services to virtual platforms are a few of challenges affecting the financial stability of these providers since March of 2020. Without funding from other sources, it is imperative that the State offer support in order to preserve this essential network of social services providers. Under the bill, notwithstanding the provisions of any law or regulation to the contrary, the appropriated amount is to be used to increase provider rates issued to social service providers, under contract or a fee-for-service agreement with the DCF or any division in the DHS, that are determined, according to parameters established by the commissioners of those departments, to be in extreme financial distress or at risk of being in extreme financial distress due to the effects of the coronavirus 2019 public health crisis. Any rate increase provided under this bill is required to be retroactive to all payments issued to a provider in FY 2021. Providers included under this rate increase are to include, but not be limited to, day habilitation providers, childcare providers, behavioral health providers, and substance use disorder providers. Of the $180 million, the appropriate amounts, as determined by the Director of the Division of Budget and Accounting and approved by the Joint Budget Oversight Committee, are to be transferred, as necessary, to the departments and divisions contracting with social services providers in order to effectuate the provisions of the bill. At least 30 days prior to the transfer of such amounts, the Director of the Division of Budget and Accounting is required to submit a report to the Joint Budget Oversight Committee detailing, for each department and division, the specific providers that will receive a rate increase and an explanation of how the amounts associated with the rate increase were calculated. The Director of the Division of Budget and Accounting is not authorized to transfer any amounts without the approval of the Joint Budget Oversight Committee, provided that no action taken by the committee within 10 days of receiving a report from the director is deemed approval of the transfer. No more than 90 days after June 30, 2021, the Director of the Division of Budget and Accounting is required to submit a report to the Joint Budget Oversight Committee outlining the allocation of this appropriation as compared to the details provided in all previously approved transfer reports. This report is to also indicate the total amount expended from this appropriation, and any unexpended balances that are encumbered or will lapse.

AI Summary

Committee Categories

Daniel Benson (D)*,  Raj Mukherji (D)*,  Valerie Vainieri Huttle (D)*,  John Armato (D),  Clinton Calabrese (D),  Annette Chaparro (D),  Mila Jasey (D),  Gordon Johnson (D),  Vincent Mazzeo (D),  Antwan McClellan (R),  Verlina Reynolds-Jackson (D),  Erik Simonsen (R),  Bill Spearman (D),  Chris Tully (D),  Anthony Verrelli (D),  Benjie Wimberly (D),  Andrew Zwicker (D), 

Introduced, Referred to Assembly Human Services Committee (on 01/25/2021)