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Bill > S318


NJ S318

NJ S318
Establishes annual cost of living adjustment based on Consumer Price Index for certain children, youth, and family services organizations.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

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 are to 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. 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 automatically adjusted for cost of living increases. This bill would establish a statutory mechanism for providing annual cost of living adjustments to children, youth, and family organizations contracted with DCF.

AI Summary

This bill mandates that contracts between the Department of Children and Families (DCF) and organizations providing services to children, youth, and families will now include an annual cost of living adjustment, starting from the bill's effective date. This adjustment will be calculated based on the Consumer Price Index (CPI), a measure of inflation published by the U.S. Department of Labor, reflecting the change in prices over the preceding 12 months from October 1 to September 30. The DCF will be required to announce the specific percentage of this annual increase on October 1 each year. A "children, youth, and family organization" is defined as any entity that contracts with the DCF to offer programs and services to these populations, including those funded by the State Medicaid program. This change aims to address the issue where the fixed rates paid to these organizations, which cover all operational costs including staff salaries, have not automatically kept pace with rising living expenses, potentially impacting the sustainability of essential services and the compensation of staff.

Committee Categories

Health and Social Services

Sponsors (3)

Last Action

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 01/09/2024)

bill text


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