Cost Plan Budget Rebasing Explained (my understanding) News update Home
REBASING EFFECTIVE 11-23-09..
Basically the legislature passed a law (see below law) last session that in essence said that the current cost plan budget expenditures (7-1-08 to 6-30-09) cannot be greater than 105% of last years budget expenditures (7-1-07 to 6-30-08). But if your current budget expenditures are no more than 105% of last years budget, then no change is necessary. “If an individual was not served for the entire previous state fiscal year or there was any single change in the cost plan amount of more than 5 percent during the previous state fiscal year, the agency shall set the cost plan amount at an estimated annualized expenditure amount plus 5 percent.”
So if your last years budget expenditures were say $30,000 but this years approved budget is $35,000, then you will need to reduce your annualized amount down to $31,500 which is 105% of last years budget. This means cutting out $3,500 in this example. Just like in the tier budget cap adjustments, the consumer and possibly family or guardian need to determine what service(s) to reduce. The support coordinator will assist and can even recommend what to reduce but the decision is the consumer / guardian’s.
After reviewing the Notice of Hearing Rights, you may wish to file the Request for Hearing Form if you disagree with the new rebased budget. APD is asking that an amendment to reduce to new rebased budget still be filed but will not be implemented unless you have an unfavorable hearing decision. Rebasing process goes forward even if you have a pending hearing for the tier you were placed in by APD. Support coordinators are being required to turn in rebase budget reductions to APD by 12-8-09 with effective date of 1-1-10.
APD states: "During the 2009 legislative session, the legislature mandated rebasing of cost plans on an annual basis. §393.0661 (3) (f) 11(6) was amended to exempt from rebasing all individuals who have had a significant life change resulting in a cost plan change of five per cent or more. Therefore, no one whose tier was changed with a greater than 5% change in approved cost plan amount will have his or her cost plan rebased. Additionally, any individual who experienced an interruption in a waiver-funded service or services during FY0809 lasting18 days or more will not have their cost plan rebased."
§393.0661 (3) (f) 11(6) : (2009)
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