TNCO SUPPORTS DIRECT SUPPORT PROFESSIONAL WAGES



TNCO SUPPORTS

DIRECT SUPPORT PROFESSIONAL WAGE PARITY

SB 0895 Ketron

HB 2091 Maddox

This legislation requires methodology by the Division of Mental Retardation Services for determining payments to service providers to phase in salaries and benefits for Direct Support Professionals (DSP’s) over a three-year period that are commensurate with salaries and benefits of their counterpart direct care staff at state developmental centers.

❑ Entry-level staffs at the state developmental centers make $ 10.70 per hour, plus the state’s inclusive benefits package with which few community providers can compete.

❑ Comparable entry rates for Community staff is $7.52 per hour or a difference of $3.18 per hour – or over $6,500 per year.

❑ The disparity between DSP’s salaries in the community and at the developmental centers has increased greatly over the past several years.

❑ Even the “average” wage rate for community staff ($8.37 per hour) is still $2.33 per hour less than entry rate for state workers.

❑ If calculating a state average by just taking the mean point of the state’s entry rate and highest rate ($10.70 and $17.11) – the average would be $13.90 or a $5.53 difference between state and community direct support staff.

❑ The disparity in wages will soon grow exponentially with the projected increase in the Federal Minimum Wage, an issue not yet addressed by DMRS.

❑ Less than a living wage also highly contributes to community agency staff turnover – weighing in at an annual rate of 67% for the first six months of this fiscal year

With the critical shortage of DSPs, both in Tennessee and nationally, it is extremely difficult, approaching impossible, for community providers to serve additional people with developmental disabilities. There is difficulty in attracting and retaining qualified, caring staff because community providers cannot pay a living wage (which in Tennessee, for one adult with one child, is $12.84 per hour) FN -1. In Tennessee the average hourly wage paid for Personal Care and Service is $ 9.30 per hour FN-1– which is below the rate required for a living wage – no doubt dragged down as an average by community DSP wage rates. This directly impacts the quality of care provided to developmentally disabled individuals receiving services in the community.

A critical challenge for Tennessee and the nation as a whole in the 21st Century is the increasing demand for long term supports and services (LTSS). This challenge includes creating a system with adequate financing, adequate infrastructures, adequate reimbursement rates and developing a quality workforce.

The lack of adequately compensated, trained, quality DSP’s undermines consumer choice and quality care. FN-2 There are five reasons for the growing demand for DSP’s:

1. Growing population (aging baby boomers )

2. Increasing life expectancy

3. Increased occurrence of developmental disabilities

4. Aging of family care givers

5. The commitment to and expansion of community and in home services and supports FN - 3

In 2003, there were 878,000FTE DSP’s nationally. By 2020, the projected need is 1.2 million FTE DSP’s. With an average national turnover rate of 50%,

low pay is attributed as the top source of job dissatisfaction. FN - 4 More competitive wages (not to mention a living wage) are needed to serve our most vulnerable population.

The increase in demand for DSP’s is needed to provide growth of the long term support system that will be increasing nationally by 37%, while the labor supply of adults age 18-39 years who traditionally have filled these jobs, is expected to increase only by 7%. FN-5

The state of Tennessee has been downsizing the developmental centers for several years and is actually preparing a closure plan for the Federal court of the Arlington Developmental Center in West Tennessee. If the state is truly committed to a safe service delivery system with quality supports for consumers, which is more cost effective than $800 per day institutional care, resources must be allocated for the advancement of such a system.

Due to changing expectations in Tennessee’s long term service delivery system, the effects of downsizing/closure of developmental centers and the increased responsibilities for often very medically fragile, involved consumers, the required skills of our DSP’s has increased tremendously over the past several years, while their compensation has not.

The issue of qualified staff is even more critical now with the settlement of the Waiting List Lawsuit. Presently, there are 5,000 Tennesseans (47% that are children) on the DMRS statewide waiting list for services residing in the community and it continues to grow daily. Without additional living wage incentive, not only will the numbers of new DSP’s not be realized, the sad reality is that it will be difficult to retain those already in the field.

While there is a significant fiscal note attached to this bill, the impact is divided over a 3 year period. This has to be viewed as an investment in the service delivery system. Any provider will readily tell you – the number one obstacle to expanding the system is the lack of direct care personnel.

References – all wage/turnover information was from

□ State info from Tennessee Department of Personnel – Career Service Employment Information - Salary Grade 015 – Developmental Technician

□ All Community salary rate/turnover information from 2007 Survey of TNCO Community Providers – 34 respondents from 48 locations

□ FN-1-

□ Other references Links: An ANCOR publication of private provider practice and federal policy issues. June 2006, Volume 36, No.6, pages 1, 23.

FN-2 pgs. 1 and 23.

FN- 3 pg. 23

FN-4 pg. 23

FN-5 pg. 23

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