The 2024-25 California Spending Plan

Human Services

Department of Developmental Services (DDS)

Overview

Projects Increased General Fund Spending. The spending plan provides $15.9 billion from all fund sources for DDS, an increase of 17.8 percent over revised 2023-24 expenditures ($13.5 billion). Of the total 2024-25 DDS budget, $15.4 billion is for the regional center system, $322 million is for the state-operated facilities program, and $169 million is for DDS headquarters staff and activities.

The General Fund—which comprises 65 percent of the total DDS budget—provides $10.3 billion in 2024-25, up $2.2 billion, or 28 percent, over revised 2023-24 General Fund expenditures (about $8 billion). While General Fund spending is increasing by $2.2 billion for the regional center system, General Fund spending for state-operated facilities and DDS headquarters is essentially flat across the two years.

Most of the growth in General Fund spending is due to a combination of caseload growth, changes in service utilization, costs associated with scheduled increases to the state minimum wage, and previously scheduled increases to service provider rates (which have been delayed by six months as a budget solution). A smaller proportion of year-over-year General Fund growth is due to expiration of enhanced federal funding through California’s Home- and Community-Based Services ​Spending Plan. Some of this spending will be backfilled with General Fund.

Projects Caseload to Continue Growing Rapidly. The spending plan assumes that regional centers will serve 465,165 individuals in 2024-25 (66,186 infants and toddlers under age three, 11,992 provisionally eligible children three or four years of age, and 386,987 “consumers” ages three and older [the term used in statute]). This represents an increase of 8.3 percent compared to 2023-24. This growth assumption is roughly in line with pre-pandemic trends (the pandemic produced a seemingly temporary decrease in new entrants to DDS). The spending plan assumes that state-operated residential and community facilities will serve 302 individuals in 2024-25, the same number served in 2023-24.

Budget Solutions

Delays Full Implementation of Service Provider Rate Reform by Six Months. The 2021-22 spending plan began a multiyear, phased-in implementation of a modernized rate structure to pay direct care staff in the developmental services system (sometimes referred to as direct service professionals). The 2022-23 budget accelerated the phase-in of this plan, with full implementation of the new rate system scheduled for July 1, 2024. The Governor’s January budget then proposed to delay the final stage of service provider rate reform implementation by one year (to July 1, 2025). The spending plan modifies this proposal, delaying the final stage of implementation by six months, rather than one year. This scaled-back budget solution provides $306 million in General Fund savings in 2024-25. The spending plan includes $306 million General Fund for the half year of the final set of rate increases.

Reduces Funding for Direct Service Professional (DSP) Workforce Programs. The spending plan adjusts several programs intended to recruit, train, and retain direct service professionals. Two of these adjustments are budget solutions. The spending plan reduces funding for the DSP Internship Program by $20 million in 2022-23 and for the Regional Center Tuition Reimbursement Program by $19 million in 2024-25. The latter reduction allows for existing participants to still receive tuition reimbursement but closes the program to new applicants.

Reduces Funding for Staff at Porterville Developmental Center. The Governor’s January proposal reduced the 2023-24 estimated budget for the Porterville Developmental Center by $20 million General Fund as a result of workforce hiring challenges. The 2024-25 budget package holds funding for staff at Porterville flat at the reduced 2023-24 level, resulting in General Fund savings of $20 million in 2024-25 and $10 million in 2025-26. As a result, the positions that were vacant at Porterville in 2023-24 will remain unfilled in 2024-25 and 2025-26.

Delays Implementation of Preschool Inclusion Grants by Two Years. The 2022-23 budget package included $10 million General Fund ongoing for grants to help preschool programs include more children with exceptional needs. The 2023-24 spending plan delayed the implementation of this program until 2024-25. The 2024-25 spending plan further delays the program until 2026-27, yielding General Fund savings of $10 million annually in 2024-25 and 2025-26.

Policy and Other Actions

Codifies the Master Plan for Developmental Services. The Governor’s budget proposed that DDS develop a Master Plan for Developmental Services with the intent to improve the experience of individuals and families receiving developmental services. Subsequently, the Secretary of California Health and Human Services (CalHHS) appointed members of the Master Plan for Developmental Services Committee. This year’s developmental services trailer bill legislation codifies the Legislature’s findings and declarations establishing the foundation for the Master Plan (Chapter 47 of 2024 [AB 162, Committee on Budget]). The legislation directs the Secretary of CalHHS to submit implementation updates to the Legislature annually from 2026 through 2036. It also establishes that any funding needed to support program enhancements proposed in the Master Plan is subject to an appropriation by the Legislature.

Repeals Family Fee Programs. Previous law required DDS to assess fees on higher-income families whose minor child receives services in the DDS system. One fee was an annual flat fee of $200. Another fee was assessed on a sliding scale relative to family income for respite, day care, and camping services. These two fees were suspended in March 2020 due to the COVID-19 pandemic. Budget-related legislation now eliminates both fee programs due to their administrative complexity and minor impact on revenues.

Extends Remote Option for Individual Program Plan (IPP) Meetings. In response to the COVID-19 pandemic, DDS temporarily allowed individuals to participate in IPP meetings remotely. The remote option was originally scheduled to expire on June 30, 2024. This year’s developmental services trailer bill legislation permanently extends the option for IPP meetings to be held remotely, subject to additional requirements.

Details Legislative Intent Regarding Social Recreation and Camping Services. This year’s developmental services trailer bill legislation directs regional centers to adopt policies for the purchase of services that promote access to social recreation and camping services. It also directs regional centers to designate at least one employee to serve as a public point of contact on social recreation and camping services. The department is required to begin reporting to the Legislature on complaints and trends regarding the provision of these services.