DAR File No. 39272

Human Services, Aging and Adult Services

Rule R510-100

Funding Formulas

Notice of Proposed Rule

(Amendment)

DAR File No.: 39272
Filed: 04/14/2015 02:07:42 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Division, the State Board on Aging, and the twelve area agencies that receive funding via the formulas in this rule have spent the past year and a half reviewing and updating the Alternatives Program's funding formula. The Board voted on 04/08/2015 to change the formula and this amendment reflects the changes that were approved.

Summary of the rule or change:

The Alternatives Program's funding formula has been changed to take out an old hold harmless clause, update the base amount each area agency on aging receives to operate the program, and the weighting of the demographic elements of the formula. The changes are made to reflect changes in Utah's aging population and to better distribute funds to agencies based on mutually agreed upon principles of the program. The state board has the responsibility to approve changes to the funding formula. The Division and area agencies worked through multiple meetings to develop these changes which were then ratified by the Board.

State statutory or constitutional authorization for this rule:

• Section 62A-3-108

Anticipated cost or savings to:

the state budget:

The changes are cost neutral to the state. The same funds will be appropriated and distributed following these changes.

local governments:

The approved changes will alter the way funds are distributed to the twelve area agencies on aging, which operate within county governments. These agencies may see increases or decreases in funding based on the changes to the funding formula. These changes were made in consultation with the area agencies and upon the approval of the state board on Aging which has statutory authority to approve these changes.

small businesses:

The funding formula determines how funds are distributed to county government area agencies on aging. These agencies in turn contract with small business providers. The formula changes could potentially increase or decrease the amount of business these providers receive from the area agencies.

persons other than small businesses, businesses, or local governmental entities:

Funding determines the number of clients an area agency on aging can serve under the Alternatives Program. The formula changes being proposed may increase or decrease funds received by these agencies and in turn have an effect on the number of clients served in a particular area.

Compliance costs for affected persons:

There are no compliance costs associated with these formula changes.

Comments by the department head on the fiscal impact the rule may have on businesses:

With the change in the allocation methodology, some of the urban areas will lose funding, which will impact providers serving the elderly. In contrast, some of the rural areas will see a greater demand for services due to an increased allocation. The urban areas are better resourced to manage the change though there will still be a significant impact.

Ann Williamson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Human Services
Aging and Adult Services
195 N 1950 W
SALT LAKE CITY, UT 84116

Direct questions regarding this rule to:

• Nels Holmgren at the above address, by phone at 801-538-3921, by FAX at 801-538-4395, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/01/2015

This rule may become effective on:

06/08/2015

Authorized by:

Nels Holmgren, Director

R510. Human Services, Aging and Adult Services.

R510-100. Funding Formulas.

R510-100-1. Older Americans Act.

(1) Compliance with State and Federal Law for Older Americans Act (OAA).

(a) The Division of Aging and Adult Services (Division) shall develop an intrastate funding formula for distribution of OAA, Title III: Grants for State and Community Programs on Aging funds and State general funds for social and nutrition services which complies with 45 CFR, Subchapter C, Part 1321.37 and with Section 62A-3-108.

(b) The formula shall be reviewed whenever a new State Plan on Aging is required to be submitted.

(2) Affected Funding Sources for OAA.

(a) The funding formula shall include:

(i) All federal funds received under Title III of the OAA with the exception of:

(A) Allowable State Division administrative funds, and

(B) Funds allocated to the State-delivered Long-Term Care Ombudsman Program.

(ii) All state funds appropriated for Title III social and nutrition services.

(b) The funding formula shall not include state or federal funds appropriated for:

(i) The Alternatives Program,

(ii) Adult Services under the Division, or

(iii) Funds identified under Section 62A-3-108(2).

(3) Funding Formula Factors for OAA.

(a) The funding formula shall incorporate the following factors:

(i) Base factor divided equally among the twelve Area Agencies on Aging (AAA) in existence on July 1, 1986;

(ii) Population factor comprised of each AAA's proportion of the State's weighted elderly population; and

(iii) Land area factor consisting of each AAA's proportion of the State's total adjusted square miles.

(b) Weighted elderly population shall consist of:

(i) The number of persons age 60 and over who have annual incomes below 125% of the poverty level, plus

(ii) The number of persons age 75 and over weighted two times, plus

(iii) The number of minority persons, as defined by the Governor's Office of Planning and Budget, age 60 and over.

(c) All population figures utilized shall reflect the most recent U.S. census figures adjusted on an annual basis based on available population estimates from the Governor's Office of Planning and Budget.

(4) Base Restrictions for OAA.

(a) If any AAA in existence on July 1, 1986, should in the future sub-divide into two or more AAAs, the base amount allocated to the original AAA shall be divided proportionally among the new AAAs.

(5) Base Factor Funds.

(a) Base factor funds shall consist of those federal Title III and state funds appropriated for Title III social and nutrition services and allocated as base funds in FY 2003.

(6) Funding Distribution for OAA.

(a) Distribution of funds under the formula shall be as follows:

(i) Base factor funds;

(ii) 7.5% of total remaining formula funds allocated to the land area factor; and

(iii) 92.5% of total remaining formula funds allocated to the population factor.

 

R510-100-2. In-Home Services.

(1) Affected Funding Sources for In-Home Services.

(a) The funding formula shall include all federal and state funds appropriated for use by local area agencies on aging to be used for in-home services with the exception of:

(i) funds allocated under Section R510-100-1 and

(ii) funds identified under Section 62A-3-108(2), and

(iii) Adult Services funded under the Division pursuant to Section 62A-3-301 et seq.

(2) Funding Formula Factors for In-Home Services.

(a) The funding formula shall include the following factors:

(i) Land area factor consisting of each AAA's proportion of the state's total adjusted square miles.

(ii) Population factor comprised of each AAA's proportion of the designated population factors.

(iii) Base amount of $35,000[$16,000] allocated to each Area Agency on Aging.

(b) Designated population factors shall consist of the following five categories and the percentage that the number from each category represents of the total combined number of all five categories:

(i) The number of minority persons, as defined by the Governor's Office of Planning and Budget, age 60 and over [weighted 10%]and at or below the federal poverty level,

(ii) The number of [all ]persons [age 18-59 weighted 5%, ]with a disability 60 years of age and older and at or below the federal poverty level,

(iii) The number of [all ]persons 60 to 74 years of age [and over weighted 55%]at or below the federal poverty level calculated as its proportion of the total clients 60 years of age and older served by the In-Home Services program for the previous state fiscal year, and

(iv) The number of [all ]persons 75 to 84 years of age [and over weighted 30%.]at or below the federal poverty level calculated as its proportion of total clients 60 years of age and older served by the In-Home Services program for the previous state fiscal year, and,

(v) The number of persons 85 years of age and older at or below the federal poverty level calculated as its proportion of the total clients 60 years of age and older served by the In-Home Services program for the previous state fiscal year.

(c) All population figures utilized shall reflect the most recent U.S. census figures adjusted on an annual basis based on available population estimates from the Governor's Office of Planning and Budget.

(3) Funding Distribution for In-Home Services.

(a) Distribution of funds under the formula will be as follows:

(i) [10%]7% of total formula funds allocated to the land area factor; and

(ii) [90%]93% of total formula funds allocated to the population factor.

(4) Funding Formula Phase-In for In-Home Services.

[(a) Funds allocated in fiscal year 1993 shall be held harmless.

(b) New funds above the fiscal year 1993 level shall be allocated by the in-home services funding formula.

(5) The following is the funding formula adjustment phase-in period for In-Home Services:

] (a) The Division is authorized to apply an adjustment to the allocation calculated in accord with funding formula contained in paragraph (2) of this section for five fiscal years beginning with FY [2004]2016.

(b) Each adjustment shall be applied to the allocation to all area agencies calculated in accord with the funding formula contained in paragraph (2) of this section and shall represent 20% of the difference [between the]in funds compared with the fiscal year 2015 funding [allocated ]in accord with paragraph (2) of this section[and the allocation for FY 2004].

 

R510-100-3. Long-Term Care Ombudsman Program.

(1) Affected funding sources for the Long-Term Care Ombudsman (LTCO) Program.

(a) All Federal and State funds received for delivery of the LTCO Program with the exception of State Division administrative funds.

(i) Funding Formula for the LTCO Program.

The funding formula for the LTCO Program shall allocate dollars to each designated AAA based on the following factors:

(A) Federal Funds.

Using the base allocation of federal funds available for the LTCO program during State Fiscal Year 1993, each designated AAA will receive an equal share of the dollars available.

Additional funds that may become available above the base allocation will be distributed based on each AAA proportion of long-term care beds in the State as reported by the State Department of Health and the Division for the preceding year. Long-term care beds shall include licensed nursing facility beds, licensed residential care beds, and approved adult foster care beds.

(B) State General Funds.

A base allocation of $60,000 shall be distributed equally to each designated AAA.

State General funds in excess of this base allocation shall be distributed based on each AAA's proportion of long-term care beds in the State, as reported by the State Department of Health and the Division for the preceding year.

 

KEY: elderly, funding formula, long-term care ombudsman

Date of Enactment or Last Substantive Amendment: [September 11, 2003]2015

Notice of Continuation: July 11, 2012

Authorizing, and Implemented or Interpreted Law: 62A-3-108