SR 14 — RESOLUTION PROPOSING APPROVAL OF A MEMORANDUM OF AGREEMENT BETWEEN THE PCA WORKFORCE COUNCIL AND THE NEW ENGLAND HEALTH CARE EMPLOYEES UNION, DISTRICT 1199, SEIU.

Senate General Assembly SenateFile Resolution No.

14687 February Session, 2022 LCOSenate Resolution No.

513414 ReferredSenate, toMay 2, 2022 The Senate Committee on Appropriations Introducedreported by:through SEN.OSTENofthe19thDist.,Chairperson oftheCommittee on the part of the Senate, that the resolution ought to be adopted.

SEN.

LOONEY, 11 Dist.

That the memorandum of agreement between the PCA Workforce Council and the New England Health Care Employees Union, District 1199, SEIU, submitted to this assembly for approval April 20, 2022, as provided in subdivisions (7) and (8) of subsection (c) of section 17b-17b-706b 706bofthegeneralstatutes,includinganyattachmentsorappendicesthereto, of the general statutes, including any attachments or appendices thereto, and any provisions that require supercedence of a law or regulation, is approved.

APP Senate Favorable LCOSR14 \\PRDFS1\SCOUSERS\KEHOET\WS\2022SR-00014-R01-1/ ofFile 1No. SB.docx

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687 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Annualized $ Departments of GF - Cost 712,000 22.1 million 13..3 million Social Services & Developmental Services Departments of GF - Revenue 103,000 5.3 million 3.1 million Social Services & Gain (Federal Developmental Grants) Services Departments of GF - Net State 609,000 16.8 million 10.2 million Social Services & Cost Developmental Services Note:

GF=General Fund Municipal Impact:

None Explanation Summary - The resolution proposes approval of a memorandum of agreement (MOA) between the Personal Care Attendant (PCA) Workforce Council and the New England Health Care Employees Union (District 1199, SEIU).

This agreement covers the period July 1, through June 30, 2023.

The fiscal impact of the agreement begins in FY 22 and is associated with wage increases, assumed effective May 1, 2022, as well as lump sum payments, premium assistance, paid time off andtraining andorientationcosts.The agreement coversapproximately 14,900 PCAs employed by approximately 7,300 consumers of the state's Medicaid self-directed programs funded under the Department of Social Services (DSS) and the Department of Developmental Services (DDS).

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687 The table below summarizes the cost of the agreement's provisions and associated fiscal impact to the state, including:

(1) the total gross cost (reflecting boththe state andfederal share ofMedicaid), (2) the total state General Fund cost, (3) the General Fund revenue gain to reflect federal reimbursements for certain Medicaid related expenditures, and (4) the net state impact after considering both General Fund costs and revenues.

Cost of Agreement Provisions Agreement Provisions FY 22 $ FY 23 $ Annualized $ Wages 675,000 7,920,000 8,250,000 Training & Orientation Fund 300,000 750,000 750,000 Lump Sum Payments - 9,630,000 - Premium Assistance - 15,350,000 10,230,000 Paid Time Off - 2,030,000 2,030,000 Total Gross Cost 975,000 35,680,000 21,260,000 Total General Fund Cost 712,000 22,090,000 13,280,000 General Fund Revenue Gain 103,000 5,331,000 3,130,000 Net State Cost 609,000 16,759,000 10,150,000 The provisions of the agreement and associated gross costs are described below.

Wage Increases - The agreement provides for wage increases for PCA’s supported by DSS and DDS programs,which total $675,000 in FY 22, $7,920,000 in FY 23 and $8,250,000 annualized.

The minimum wage and general wage (GWI) percentage increases specified for each employee group in the agreement are outlined below:

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687 Minimum Hourly Wage 1 GWI Effective Respite & ILST2 Hourly Per Diem ILST Date PCA Companion 5/1/2022 17.25 16.30 35.20 2% 4% 2% 7/1/2022 17.75 16.72 35.90 2% 4% 2% 1/1/2023 18.25 17.25 - - - - 1The agreement includes provisions aligning the "sleeper" rate for PCA's with the state minimum wage in lieu of a static amount.

This increases the sleeper rate from $10.10 per hour to $13 on 5/1/22, $14 on 7/1/22, and $15 on 6/1/23.

2ILST=Independent Living Skills Trainer Lump Sum Payments – The agreement requires that eligible employees receive a lump sum payment equal to six percent of the wages earned during the period beginning April 1, 2021 and ending on March31, 2022, effective May1,2022.Thisisestimatedtoresult inaone- time cost of $9.6 million payable in FY 23.

Premium Assistance – The agreement requires that qualifying 1 employeesreceive anamount equalto six percent oftheir pay onasemi- annual basis, up to an annual maximum amount of $5,000 for healthcare premium assistance.

This is estimated to cost up to $15.4 million in FY 23(reflectingoneFY22paymentof$5.1millionandtwoFY23payments totaling $10.2 million).

Paid Time Off (PTO) – The agreement specifies that hourly and 12- hour per diem PCAs will be eligible to accrue PTO at a rate of .025 hours per every hour worked up to a maximum of 40 hours per state fiscal year.

New hires are not eligible to use PTO until they have completed three months of employment.

This is estimated to result in an annualized cost of $2 million in FY 23.

Training and Orientation Fund - The agreement requires the state to allocate funding to thePCA Training andOrientationFundwasfollows:

$300,000 effective May 1, 2022 and $750,000 effective July 1, 2022 and annually thereafter.

The agreement specifies that $150,000 of the Employees must provide proof of denial for Husky and Covered Connecticut programs and attest to not having access to any alternate employment or spousal health coverage.

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687 funding allocated to the Training and Orientation fund must be used for skills enhancement in FY 23 and annually thereafter.