SR 7 — 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.

787 February Session, 2024 LCOSenate Resolution No.

26727 ReferredSenate, toMarch 21, 2024 The Senate Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.OSTENofthe19thDist.,Chairperson oftheCommittee on the part of the Senate, that the resolution ought to be adopted.

SEN.

LOONEY, 11 Dist.

APP Senate Favorable LCOSR7 \\PRDFS1\SCOUSERS\FORZANOF\WS\2024SR-00007-R01/ ofFile 1No. SB.docx

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87 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 24 $ FY 25 $ FY 26 $ Social Services, Dept.

GF - Cost up to 3,640,000 8,692,000 14,664,000 Developmental GF - Cost up to 2,773,000 6,622,000 11,171,000 Services, Dept.

Resources of the GF - Revenue up to 1,387,000 3,311,000 5,586,000 General Fund (Federal Gain Grants Revenue) 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, 2026.

The fiscal impact of the agreement begins in FY 24 and is associated with wage increases, premium assistance, paid time off, holiday pay, and longevity bonuses.

The agreement covers approximately 12,000 PCAs employed by approximately 8,000 consumers of the state's Medicaid self-directed programs funded under the Department of Social Services (DSS) and the Department of Developmental Services (DDS).

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.

SR7 / File No.

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87 Cost Estimate of Agreement Agreement Provision FY 24 $ FY 25 $ FY 26 $ Annualized $ Wages 6,907,000 21,863,000 33,949,000 37,668,000 Paid Time Off 1,375,000 1,372,000 1,457,000 1,457,000 Holiday Pay 770,000 852,000 900,000 900,000 Premium Assistance 1,810,000 1,852,000 1,852,000 1,852,000 Longevity Bonus - - 5,598,000 - Total Gross Cost 10,862,000 25,939,000 43,757,000 41,877,000 Total General Fund Cost 6,413,000 15,315,000 25,835,000 24,725,000 General Fund Revenue Gain 1,387,000 3,311,000 5,586,000 5,346,000 Net State Cost 5,026,000 12,004,000 20,249,000 19,379,000 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 up to $6,907,000 in FY 24, $21,863,000 in FY 25, $33,949,000 in FY 26 and $37,668,000 annualized.

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

Wage Increases Minimum Hourly Wage 1 GWI Effective Date PCA Respite & ILST 2 Hourly Per ILST Companion Diem days from approval 20.00 18.25 36.80 2.5% 4.0% 2.5% 7/1/2024 20.50 18.75 37.72 2.5% 4.0% 2.5% 1/1/2025 21.50 19.25 - - - - 7/1/2025 22.00 19.75 38.66 2.5% 4.0% 2.5% 1/1/2026 23.00 20.25 - - - - 1Theagreement maintainsprovisionsaligning the"sleeper"rateforPCA's with the State minimum wage 2ILST=Independent Living Skills Trainer SR7 / File No.

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87 Premium Assistance – The agreement requires that qualifying employees receive an amount equal to seven percent (from six percent) of their pay on an annualized basis up to an annual maximum amount of $5,000 for healthcare premium assistance.

This is estimated to cost up to $1,810,000 in FY 24 and $1,852,000 in FY 25 and FY 26.

Paid Time Off (PTO) – The agreement increases the PTO accrual rate to .033 hours(from.025hours)per everyhourworkedupto amaximum of 50 hours per state fiscal year (from 40 hours).

This applies to hourly and 12-hour per diem PCAs.

The PTO accrual rate for 24 hour per diem employees is one 24-hour shift for every 58 days (from 73) up to a maximum of 6.25 24-hour shifts of PTO accumulated per year (from 5 24-hours shifts).

The estimated cost for the PTO provisions is up to $1,375,000 in FY 24, $1,372,000 in FY 25 and $1,457,000 in FY 26.

Holiday Pay - The agreement increases the number of holidays for which employees are paid 1.5 times his or her rate of pay.

The inclusion of two additional holidays, Juneteenth and Labor Day, results in a cost of up to $770,000 in FY 24, $852,000 in FY 25, and $900,000 in FY 26.

Longevity Bonus - The agreement establishes bonus payments for PCAs working for the same consumer-employer starting on or before 4/1/24 and who are continuously employed through 3/31/26.

PCAs working 20 hours or less per week will receive a one-time bonus of $400, while those working 21 hours or more will receive a bonus of $800.

PCAs are eligible for a bonus under each consumer-employer for whom they work for the required timeframe.

This results in a cost of $5,598,000 in FY 26.