SF2053

This bill, S.F. No. 2053, pertains to human services in Minnesota and mandates a report on direct support service rate calculations. The commissioner of human services is required to submit a report by March 15, 2027, to legislative committees overseeing human services policy and finance.

Key Provisions:

1. Scope of the Report

   • The report must analyze and provide estimates on the financial impact of a proposed collective bargaining agreement between the state and individual providers of direct support services under Minnesota Statutes §256B.0711.

2. Cost Estimations

   • The report must include the estimated costs to employers for:
     a) Wage increases tied to incremental wage floor adjustments.
     b) Increases in paid time off (PTO).
     c) Additional compensation for work done on holidays.
     d) Incremental increases in other employee benefits included in the agreement.
     e) Employer obligations related to FICA, Medicare, unemployment taxes, workers' compensation, and retirement contributions stemming from pay and benefit increases.

3. Rate Calculations

   • The commissioner must detail the formulas and reimbursement rates used for covered programs and Community First Services and Supports (CFSS) under the agency-provider model.

4. Assumptions for Calculations

   • The report must assume that all employers of direct support professionals will receive a reimbursement rate increase matching the wage and benefits increases detailed in the collective bargaining agreement.
   • Employers cannot absorb the increased costs themselves; funding for the wage and benefit increases must come from the revised reimbursement rates.

5. Fiscal Impact & Legislative Changes

   • The report must estimate the total appropriation necessary to fund these increases.
   • It should also outline any statutory changes required to implement these changes.
   • The commissioner may propose alternative funding estimates and policy recommendations.

In summary, this bill mandates a comprehensive financial analysis of how a potential direct support services labor agreement would impact employer costs, service rates, and necessary state funding adjustments, ensuring that legislative decision-makers have the necessary financial data.