AN ACT ESTABLISHING A COMMUNITY PROVIDER RESCUE FUND ACCOUNT, A COMMUNITY-BASED SERVICES COMMISSION AND A GRANT PROGRAM FOR NONPROFIT ORGANIZATIONS.

AN ACT ESTABLISHING A COMMUNITY PROVIDER RESCUE FUND ACCOUNT, A COMMUNITY-BASED SERVICES COMMISSION AND A GRANT PROGRAM FOR NONPROFIT ORGANIZATIONS.

This bill establishes a Community Provider Rescue Fund as a separate, nonlapsing General Fund account. Funds from the account must be used as grants to community providers that have purchase-of-service contracts with state agencies to provide health and human services to the agency's clients.

The bill creates a 34-member Community-Based Services Commission to study and make recommendations concerning a long-term funding solution for these providers. The commission must submit a report with any proposed budget recommendations and policy and legislative changes to the governor and General Assembly by October 1, 2009.

The bill authorizes up to $ 65 million in 20-year general obligation bonds for capital improvements for the providers. The bonds are subject to standard statutory bond issuance procedures and repayment requirements.

The bill also requires the Office of Policy and Management (OPM), within available appropriations, to establish a grant program to help state-funded nonprofit organizations to consolidate their programs and services.

EFFECTIVE DATE: July 1, 2009, except for the provisions establishing the commission, which are effective upon passage.

The bill establishes the fund as a separate, nonlapsing General Fund account and directs the state treasurer to administer it. It requires the OPM secretary to make funds from the account available as grants to community providers with which state agencies have purchase of service contracts. These agencies include the departments of Developmental Services (DDS), Children and Families (DCF), Mental Health and Addiction Services (DMHAS), Social Services (DSS), Correction (DOC), and Public Health (DPH); the Judicial Department; and the Children's Trust Fund (CTF). The bill does not appropriate funds to the account, but it permits the OPM secretary to receive private donations for it.

Under the bill, the grants can be used to (1) provide an immediate remedy to budget shortfalls for these community providers, (2) establish a stable funding system for them, and (3) establish a consistent “cost-of-service” adjustment to avoid future budget shortfalls.

The 34-member commission includes the OPM secretary and the commissioners of DDS, DHMAS, DCF, DSS, Higher Education, Labor, and Economic and Community Development, or their designees. It also includes the chairpersons of the Appropriations, Finance, Human Services, Public Health, Government Administration and Elections, and Labor committees, or their designees.

The appointments must be made by June 1, 2009. Vacancies are filled by the appointing authority. The House speaker and Senate president pro tempore select the commission's chairs from its membership. The chairs must schedule the first meeting by July 1, 2009.

The bill permits the commission, within available appropriations (the bill does not appropriate money for the commission), to contract for consultants with expertise in economics, the labor market, higher education, or accounting to assist it. The commission can receive funds from any source to carry out its activities.

1. developing a statewide strategic plan for funding services under purchase-of-service contracts, which must include (a) consistent funding for providing the services and (b) cost-of-living and other fiscal adjustments for payments that use an indexing option, such as the Consumer Price Index (CPI);

2. a budget to implement indexing; and

3. a budget and plan for stabilizing the service delivery system until indexed payments are allocated.

The bill requires the commission to conduct studies, research, and analyses and recommend ways to address “the problem” of funding community providers' services. The research must include:

1. comparing the employee costs, including wages and benefits, of providing these services in the private and public sectors, including unionized and nonunionized private sector employees;

2. studying the impact of standard wage legislation in the state;

3. comparing the compounded Medical CPI to the cost-of-living allocations made to service providers over 20 years;

4. analyzing the percentage increase in the health insurance, worker's compensation, property casualty insurance, and energy costs since 2000 and projecting increases through 2012;

5. projecting labor market trends through 2012;

6. calculating savings attributable to serving individuals in the community instead of institutions;

7. reviewing financial mechanisms for establishing an ongoing revenue source, such as a dedicated fund; and

8. any other studies, research, and analysis it deems necessary to accomplish its mission.

Under the bill, the proceeds of the bond sales can be used for capital improvements, which are distributed as grants to community providers by the agencies with which they have purchase-of-service contracts. Table 2 lists the bond authorizations, by agency.

*Agency*	*Authorization Amount*
DDS	$ 29,215,829
DCF	13,912,938
DMHAS	9,553,305
Judicial	4,058,592
DSS	4,415,794
DOC	1,680,886
DPH	1,485,995
CTF	676,660

The bill requires the agencies to allocate the grants through a request for proposals process. A grant may not exceed the project costs. The proposals must be for:

1. improvements or expansion of treatment and service facilities;

2. administrative office locations;

3. fire and code compliance and upgrades;

4. physical plant maintenance and upgrades;

5. energy and conservation upgrades;

6. heating and cooling system replacement;

7. generators;

8. communication systems;

9. billing, accounting, and quality assurance software;

10. hardware systems and other technology improvements; and

11. medical records and Health Insurance Portability and Accountability Act (HIPAA) compliance.

The bill requires OPM, within available appropriations, to establish a grant program to help state-funded nonprofit organizations consolidate their programs and services.

1. facility purchases and improvements,

2. refinancing facility loans,

3. equipment purchases,

4. program administration,

5. energy conservation projects,

6. transportation, and

7. technology.

By October 1, 2009, the bill requires the OPM secretary, in collaboration with the Appropriations Committee and representatives of the nonprofits that receive state funds, to develop guidelines for administering and distributing the grants.

The bill requires the OPM secretary to publish notice of grant availability and solicit competitive proposals for FY 10 and subsequent years. Eligible nonprofits can file grant applications with OPM on forms and at a time that the secretary prescribes.

The bill requires the secretary to review all grant applications he receives and determine which ones to fund and the funding levels for each. The secretary, in collaboration with the Appropriations Committee and the nonprofits, must determine the criteria for deciding which organizations get grants and include the criteria in the above-mentioned notice.

Yea

Nay

(03/10/2009)

*Members*	*Appointing Authority*
A social services provider for children or adults with disabilities and a parent of a child or adult with disabilities	Governor
Person knowledgeable about social services for individuals with disabilities	House speaker
Person with labor market knowledge	Senate president pro tempore
Person with economics knowledge	House majority leader
Person with Medicaid policy knowledge	Senate majority leader
Person with bonding knowledge	House minority leader
Person with knowledge of personal service agreements or education	Senate minority leader
Two members	Chief executive officer (CEO) of the Connecticut Community Providers Association
Two members	Connecticut Association of Nonprofits executive director
Two members	The ARC of Connecticut executive director