The only way to address this shortfall is through legislation and the time is now. I am asking you to contact your legislators and educate them on the funding issues that exist specific to DDD Providers.
They need to know that the rate for room and board in a group home setting is only 71.2% of the benchmark rate determined to be fair and equitable in the 2014 Rate Rebase Study. Room and board monies go towards food and housing for individuals living in group homes. Taking into account the price of food increases 5-30% yearly this rate is even less adequate than 2014, and will continue to be less effective year after year. Couple this with skyrocketing rental rates, especially in the metro Phoenix area (5.6% in the last 12 months), and it is clear that this service is grossly underfunded.
Maybe the most significant issue faced by providers is staffing. Legislators According to the Arizona Association of Providers for People with Disabilities (AAPPD) providers average turnover rate is 55.9% for direct care staff, with rural areas experiencing between 70-85%. At the current funding levels, most providers can afford to pay direct care staff between $8.05 and $8.75 per hour. This wage is not competitive and we are losing good staff to the food service and retail industries which pay significantly more. These high turnover rates lead to exorbitant increases in training costs and overtime. Most importantly, this excessive turnover leads to inconsistent staff in the homes reducing the quality of care individuals receive.
June 30th, 2015 the Department of Labor proposed new rules increasing the minimum salary requirement for exempt workers $23,600 annually to $50,,440. If this change comes to fruition the impact it would have on the provider community would be devastating. Many providers utilize these low to mid range managers to assist with the staffing deficit. Providers would be forced to take these managers to $50,440, which is an impossibility based on current funding or, pay overtime when these managers work over 40 hours in a week. In almost all cases, these managers' overtime rate of pay would exceed the rate providers are getting from DDD.
I believe we have come to a critical time in supporting people with developmental disabilities in Arizona. I would hope, as citizens of Arizona, you would share my concern. I am asking for your support in this fight to save these vital services for our fellow Arizonans.
To learn more about AIRES, LLC and our fight for adequate funds, please give us a call at (800) 540-2050 or visit our website.
Marc Langschwager
Vice President / Chief Operations Officer
AIRES, LLC.
