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DATE: |
December 9, 2025 |
IA01 |
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TO: |
Public Authority Governing Body |
SUBJECT
Title
AUTHORIZE THE EXECUTIVE DIRECTOR OF THE COUNTY OF SAN DIEGO IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY TO SIGN THE MEMORANDUM OF UNDERSTANDING BETWEEN THE COUNTY OF SAN DIEGO IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY AND UNITED DOMESTIC WORKERS OF AMERICA, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES LOCAL 3930, AND APPROVE THE SUBMISSION OF THE PUBLIC AUTHORITY RATE REQUEST (DISTRICT: ALL)
Body
OVERVIEW
These actions present approval of a negotiated successor Memorandum of Understanding (MOU) between the County of San Diego In-Home Supportive Services (IHSS) Public Authority and the United Domestic Workers of America (UDW), Local 3930 of the American Federation of State, County and Municipal Employees (AFSCME). The tentative MOU includes a wage increase and an increased County of San Diego contribution for benefits for IHSS caregivers. To implement the terms of the successor MOU, Governing Body action is requested to approve a revised IHSS Public Authority Rate Request for submission to the State, which is required by the California Department of Social Services (CDSS) to increase the wage rate and to receive reimbursement of the State and federal expenses associated with IHSS Public Authority.
Today’s actions request the Public Authority Governing Body to authorize the Executive Director of IHSS Public Authority to sign the MOU between IHSS Public Authority and UDW, Local 3930 of AFSCME, and approve a revised IHSS Public Authority Rate Request for submission to CDSS.
RECOMMENDATION(S)
EXECUTIVE DIRECTOR
1. Authorize the Executive Director of the County of San Diego In-Home Supportive Services (IHSS) Public Authority to sign the Memorandum of Understanding, which was ratified by the United Domestic Workers of America (UDW), American Federation of State, County and Municipal Employees (AFSCME) Local 3930 membership, between IHSS Public Authority and UDW, AFSCME Local 3930, American Federation of Labor and Congress of Industrial Organizations, for a 30-month term effective the later of ratification or January 1, 2026 through June 30, 2028.
2. Approve the revised County of San Diego In-Home Supportive Services Program Public Authority/Non-Profit Consortium Rate Request for submission to the California Department of Social Services.
EQUITY IMPACT STATEMENT
Today’s actions reflect the partnership between the County of San Diego In-Home Supportive Services (IHSS) Public Authority and the United Domestic Workers Union of America, American Federation of State, County and Municipal Employees Local 3930, to strengthen their relationship and work together to provide equitable compensation that ensures recruitment, retention, as well as just and fair benefits for IHSS caregivers.
SUSTAINABILITY IMPACT STATEMENT
Today’s proposed actions support the County of San Diego (County) Sustainability Goal #1 to engage the community in meaningful ways by working with In-Home Supportive Services (IHSS) caregivers and stakeholders to achieve successful negotiations leading to a Memorandum of Understanding, and Goal #4 to protect the health and well-being of eligible individuals in the region by collaborating with partners and IHSS caregivers to improve and expand programs and services that benefit the safety and well-being of older adults and persons with disabilities. Furthermore, the proposed actions will increase economic empowerment for IHSS caregivers and enable IHSS recipients to remain safely in their own homes.
FISCAL IMPACT
Today’s recommendations are estimated to result in Fiscal Year (FY) 2025-26 costs of approximately $3.0 million for wages depending on the final date of State approval of the revised rate package bringing the In-Home Supportive Services (IHSS) wage and health benefit rate to $21.00 per hour. Additionally, an increase in annual amounts for non-health benefits of $50,000 for job related safety equipment, up to $210,000 for transportation passes, up to $166,667 for Metropolitan Transit System passes, and $100,000 for training of caregivers would be paid during the term of the Memorandum of Understanding (MOU).
Based on the MOU, a total of $2.00 per hour will be added above the State minimum wage. The wage supplement will increase by $1.00 in the first year, and an additional $1.00 will be added in March 2027. In FY 2025-26, the total estimated value of the negotiated increases is $28.0 million. In FY 2026-27, the total estimated value of negotiated increases is $125.0 million. In FY 2027-28, the total estimated value of negotiated increases is $206.0 million. The County of San Diego (County) share of the increased wages and benefits is estimated at $3.0 million in FY 2025-26, $12.0 million in FY 2026-27, and $19.0 million in FY 2027-28, which will be invoiced to the County by the State under the IHSS Maintenance of Effort (MOE) arrangement. The County increase in expenditures for non-health benefits will not exceed $526,667 in each FY 2025-26, FY 2026-27 and FY 2027-28. Because Realignment is not growing at a pace to fully cover increased costs in the out years, other local funding sources and mitigations will need to be explored. The current year MOE adjustments will be covered with existing budgeted appropriations in the Health and Human Services Agency, and funds for subsequent years will be incorporated into future operational plans. At this time, there will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
This item was presented to the In-Home Supportive Services/Public Authority Advisory Committee as an informational item at its regular meeting on November 14, 2025, and will be presented to the Aging & Independence Services Advisory Council as an informational item at its Executive & Membership subcommittee meeting on December 2, 2025.
BACKGROUND
The County of San Diego (County) In-Home Supportive Services (IHSS) Public Authority is established per State mandate to act as Employer of Record for IHSS caregivers and operate a registry of caregivers. IHSS Public Authority works in partnership with the IHSS program operated by the County serving both caregivers and recipients. The County-operated IHSS program provides in-home assistance to approximately 48,000 Medi-Cal eligible low-income, aged, blind, and disabled adults and children, enabling many to remain safely in their homes, and thereby reduce the need for more costly placements in nursing homes or other care facilities. IHSS Public Authority provides a wide range of services to the approximately 45,000 IHSS caregivers, including payroll services, funding for health and dental benefits, training, and caregiver enrollment. Funding for this program comes from federal, State, and County revenue.
Negotiated Memorandum of Understanding
Under the proposed terms of the 30-month successor MOU (Attachment A), the County IHSS Public Authority will increase the supplement to the base wage at an additional $1.00 for a total supplement of $3.50 per paid IHSS hour. The MOU will provide for a base wage that is equal to the applicable State minimum wage plus an additional supplement of $3.50 per hour. The State minimum wage will increase to $16.90 per hour on January 1, 2026, which would bring the IHSS wage and health benefits including the supplement to $21.00 per hour, no sooner than March 1, 2026. Effective no sooner than March 1, 2027 and upon State approval, IHSS Public Authority will further increase the supplement to the base wage by an additional $1.00 for a total supplement of $4.50 per hour. This would bring the IHSS wage and health benefits including the supplement to $22.00 per hour.
Additional non-health benefits paid by IHSS Public Authority are included in the tentative MOU including a $0.03 per paid IHSS hour contribution to the United Domestic Workers of America (UDW) Trust for life insurance benefits, a $100,000 annual payment for job related personal protective equipment supplies, an annual contribution to the UDW Trust of up to $250,000 for distribution to IHSS caregivers to cover the cost of transportation passes, an annual contribution of up to $166,667 for Metropolitan Transit System passes, an annual contribution of up to $23,040 for compensating IHSS caregivers for services provided as a UDW representative amongst other education opportunities. Additionally, annually each calendar year, the IHSS Public Authority shall provide the UDW Trust a flat rate of $100,000 for training caregivers. These benefits will be effective upon State approval.
Revised Rate Submission to the State
Federal and State funding for IHSS wages and benefits is received based on approval of an IHSS Public Authority rate package submitted to the California Department of Social Services (CDSS). CDSS must also approve the revised rate to ensure federal financial participation occurs through the federal Medicaid program. The effective date for the revised rate will be no earlier than March 1, 2026, following the receipt of State approval.
The IHSS Public Authority rate is comprised of two cost elements: IHSS home care services involving wages and benefits, and administrative costs, respectively. The current IHSS Public Authority rate effective January 1, 2026, is $22.38 per hour. Governing Body approval is requested to submit a revised rate of $23.50 per hour to CDSS. The revised rate adjusts for the additional $1.12 per hour wage supplement and associated payroll taxes and for the newly negotiated non-health benefits.
Under the Maintenance of Effort (MOE) structure, counties have a capped contribution grown by an inflation factor each year. The County’s MOE contribution may also grow upon negotiated wage and benefit increases. The rate submission is used by the State to calculate increases to the County IHSS MOE. The State will participate in a cumulative total increase of up to 10% of the current wage and health benefit rate over a 3-year period if this option is selected. The County will be selecting to utilize the 10% increase on the County IHSS Program Public Authority/Non-Profit Consortium Rate Request (Attachment B). The County MOE increases by 35% of the non-federal share while the rate remains under the 10% State cap. The County covers 100% of the non-federal share for any increases above the State cap. A subsequent rate package will be submitted near the end of calendar year 2026 to increase the wage supplement by another $1.00 per hour to be effective March 1, 2027. Through this submission, the County will not exceed the State’s maximum participation level at the 10% cap, and the MOE will be adjusted accordingly.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions support the County of San Diego 2025-2030 Strategic Plan Initiatives of Sustainability (Economy & Resiliency), Equity (Health & Economic Opportunity), Empower (Workforce & Innovation) and Community (Engagement, Safety, Quality of Life, Communications, & Partnership), and the regional Live Well San Diego vision by developing, maintaining, and attracting a skilled, adaptable, and diverse In-Home Supportive Services caregiver workforce dedicated to sustaining operational excellence.
Respectfully submitted,
THOMAS H. JOHNSON EBONY N. SHELTON
Executive Director Chief Administrative Officer
ATTACHMENT(S)
Attachment A - County of San Diego Bargaining Offer to United Domestic Workers, Local 3930
Attachment B - County of San Diego In-Home Supportive Services Program Public Authority/Non-Profit Consortium Rate Request