Equitable Funding for a Statewide Independent Living Center System

1. Equitable Funding for a Statewide Independent Living Center System A formula perspective on service to persons with disabilities 2012 SILC Congress: Houston TX Patricia Yeager, Ph.D: The Policy CJ McKinney, Ph.D: The Numbers

2. Formula funding for statewide IL systems • One of the most important functions of a SILC (with DSU as partner and Centers as stakeholders) is to develop a statewide Independent Living Network • Define catchment areas • Define an equitable funding formula • Must cover the entire state • Must plan that the four core services are available to all who want them

3. Why Use a Formula? Formula funding presents a useful strategy for estimating the amount of funding a particular county needs for CILs based on its unique demographic and economic profile. Indiana Business Research Center, 2009. page 4

4. Why use a formula? continued According to economist Peter C. Smith, we can allocate funds by: Local bids Political patronage Historical precedent Reimbursing actual expenditures Smith, Peter. 2003. Oxford Review of Economic Policy, 19:2 Or we can use a formula based on objective, third party data. Formula funding has the potential for ensuring fairness and transparency for a system designed to assist and empower a traditionally disadvantaged population. Indiana Business Research Center, 2009. page 5

5. What would an IL formula fund? There are very few sources of funds other than Title VII B, C and state general funds to pay for traditional IL services: Information and Referral Peer Support Advocacy (personal and systemic) Independent Living Skills Training These are the basic IL services that presumably all SILCs want their residents with a disability to receive. CILs are the only ones who have access to these funds.

6. Where did the IL funding formula come from? First developed during the 1990’s by the Centers in Illinois, who engaged an economist to set up the formula. That state’s IL system will cost $22 million. In 2009, the Indiana SILC (ICOIL) engaged the Indiana Business Research Center, Indiana University to replicate the formula for Indiana and create a template.

7. States that have a formula • IN 9 centers + 6 new ones $20 m Large state & population, some rural, • CO 10 centers $12 m Lots of square miles, high & low density population, • WA 6 centers + 2 new ones $11 m Lots of square miles, high and low density population • NJ 12 centers $8.4 m Small state, high density population • WY 2 centers $3.8 m Lots of square miles and low density population

8. What does the formula look like? • We set the definition of disability then we research the numbers • Census • State Labor statistics • One state used the poverty index for each county

9. Definition of disability This study uses the Census 2000 definition of disability whenever considering the number or proportion of disabled persons within each county. According to the U.S. Bureau of the Census survey instruments, a person has a disability if he or she reports one or more of the following conditions: - a sensory, physical, mental, or self-care disability - a disability affecting going outside the home - an employment disability (or “work disability”)

10. What are the elements of the funding formula? Service Index Number of people with a disability, ages 16-64, using the US Census definition and data. Workers with disability Index Compares the ratio of county’s non institutionalized persons with a work disability with the state ratio of same. Economic Distress Index Compares the relative job density in each county to the job density of the state.

11. Where does the state data come from? 2000 US Census Full count of all residents in each county 2006-2008 American Community Survey A follow-up to the 200 US Census to provide population estimates for those years, only counties with more than 20,000 were included Each state’s Department of Labor and Workforce Development Employment Survey Tables for 2008

12. How does the formula work Using the three indices, at the county level, a dollar amount is derived for what is needed to serve the disability population in that county. The CILs catchment area counties’ funding are added together to get the total for that catchment area. Those with fewer counties, compact square miles and/or more jobs get less money. They may have less demand (fewer counties) or have more resources outside the Center. Those with more counties, less jobs and big geographic territory get more money. They have less resources outside the Center.

13. Colorado numbers: an example

17. How to use this data • Look at catchment area issues • Equitable number of people served/geography across the Centers? • Demonstrate need • Data driven plan that shows how IL dollars will be spent across the state-where are the greatest needs? • Set a dollar amount for the IL system based on objective data • Legislators like knowing there is a finite number to work toward

18. How to use this data…continued • Funding formula for distribution of funds • Each CIL knows in advance how much it will get when new dollars come in-based on their percentage of the statewide IL funding formula • reduces fighting and can promote collaboration • Set funding priorities • Maintain Centers existing funding level • Where would new dollars go in your state? • IN decided to bring all existing Centers % of funding formula dollars to parity before funding anything new

19. Another Source of Data for your State’s Disability Population • National Disability Statistics Center will do a free county by county, IL catchment area, and statewide demographic analysis of census data for your state, upon request in 2013. • Gives you more specific information about your counties, catchment areas and state. • Great information for planning, raising money and advocacy

20. Another source of data…continued • Contact for National Disability Stats Center (funded by National Institute on Disability Rehabilitation Research-NIDRR) Andrew Houtenville Senior Research Assistant Andrew.houtenville@unh.edu

21. Summary • A data driven funding formula will revolutionize the discussion of funding for independent living services. • For the first time, we are able to use the data that so many advocates fought hard to get collected. • School districts do it, county governments do it, now Statewide Independent Living Councils and their stakeholders can do it, too. • We can use an economic formula to determine how much is needed to truly serve our consumers, just like other public service entities.

22. More information? A Funding Formula Allocation Model for Indiana’s Centers for Independent Living, July 2009. Produced by the Indiana Business Research Center, Indiana University Kelly School of Business http://icoil.org/documents/082009/ICOIL_Formula_Funding_-_FULL_REPORT_.pdf

23. Consultants’ contact information • Patricia Yeager & Associates Patricia.yeager@gmail.com 970-356-5521 • CJ, McKinney Statistical Services cj@mckinneystatisticalservices.com