LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7075 NOTE PREPARED: Dec 31, 2021
BILL NUMBER: SB 266 BILL AMENDED:
SUBJECT: Department of Child Services' Review of Base Rate.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
Summary of Legislation: The bill defines "base rate", "cost report", and "residential treatment services
provider".
It provides a process for residential treatment services providers (RTSP) to request a review of base rates and
other cost based rates approved by the Department of Child Services (DCS). It establishes that the DCS shall
approve certain allowable costs.
Effective Date: July 1, 2022.
Explanation of State Expenditures: The RTSP’s payment rate is based on the eligible costs and the
utilization (or number of placements). Certain costs are disallowed in calculating the rate, including staffing
above the standard staffing ratio. If an RTSP proves that additional staff costs are related to child or staff
safety, these additional costs may be included in the rate. Other changes in the reimbursement rate are
indeterminate and would be based on whether the rules currently used to determine the rate would change
based on the definitions in the bill.
The DCS will have increased workload to review and amend its rules to conform with provisions of the bill
as needed.
Additional Information - RTSP expenditures from state funds was about $222.7 M annually between FY
2017 and FY 2021. On average, state expenditures are 76% of the total spent for RTSP. Utilization decreased
43% between FY 2017 and FY 2021. Any expenditure outside of those allowed by Title IV-E programs
would be a state expense.
SB 266 1 Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: A RTSP of a local unit could receive additional reimbursement, but any
increase will be based on the differences between current rules and the requirements of the bill.
State Agencies Affected: Department of Child Services.
Local Agencies Affected:
Information Sources: Sarah Faulkner; Aaron Atwell; DCS, Rate Setting Process Overview 11.22.21,
presented to the Child Services Oversight Committee on November 22, 2021.
Fiscal Analyst: Karen Rossen, 317-234-2106.
SB 266 2