1. (a) Step six in the process of determining a permanent payment rate is to adjust the amount computed in step five, section 58114, by the upper and lower limit of the allowable range of rates:

   1. (1) For Fiscal Year 1997-98, and each alternate fiscal year thereafter, the upper and lower limit adjustment shall be computed as follows:

      1. (A) For vendors whose amount, as determined in step five, is within the allowable range of rates, the Department shall make no change to that amount;
      2. (B) For vendors whose amount, as determined in step five, is above the upper limit of the allowable range of rates, the Department shall reduce that amount to the upper limit;

      3. (C) For vendors whose amount, as determined in step five, is below the lower limit of the allowable range of rates, the Department shall increase the amountto the lower limit, based upon available funds pursuant to (a)(1)(C)1. through 3.

         1. 1. The amount of available funds to increase the amounts computed in step five shall be determined as follows:

            1. a. Multiply each vendor's reduction computed pursuant to (1)(B) by their direct service hours identified in section 58033 (b);
            2. b. Add the amount computed in a. for each vendor to determine the total available funds from the upper limit reduction pursuant to (1) (B); and
            3. c. Add to the amount determined in b. any gap funding appropriated pursuant to the Budget Act, for those vendors specified in section 58310 (a)(1)(A) and (B).

         2. 2. The amount of funds needed to increase amounts computed in step five to the lower limit, shall be determined as follows:

            1. a. Determine the difference between the lower limit and each vendor's amount as computed in step five;
            2. b. Multiply the difference computed in a. by each vendor's direct service hours identified in section 58033 (b); and
            3. c. Add the amounts computed in b. to determine the total amount of needed funds.

         3. 3. The total amount of available funds, as determined in (C) 1., shall be compared to the total amount of funds needed, as determined in (C)2.

            1. a. If there are sufficient funds to fully fund the lower limit increase, the Department shall, increase amounts as determined in step five to the lower limit.

            2. b. If there are insufficient funds to fully fund the lower limit increase, the Department shall adjust the difference computed in (C)2.a. by the percentage of available funds. The Department shall:

               (1.) Calculate the percentage of available funds by dividing the total amount of available funds, computed in (C)1.c. by the total amount of funds needed computed in (C)2.c.;

               (2.) Multiply the percentage of available funds, by the difference computed in (C)2.a. for each vendor; and

               (3.) Increase amounts computed in step five by the amount computed in (C)3.b.(2).

Note: Authority cited: Section 4690.2, Welfare and Institutions Code. Reference: Sections 4690.2, 4691 and 4691.5, Welfare and Institutions Code.

History

1. New section filed 6-26-90 as an emergency; operative 7-1-90 (Register 90, No. 36). A Certificate of Compliance must be transmitted to OAL by 10-29-90 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 6-26-90 order transmitted to OAL 9-28-90 and filed 10-29-90 (Register 90, No. 46).

3. Change without regulatory effect amending subsections (a)(1) and (a)(1)(B) and repealing subsections (a)(1)(C)4.-(a)(2)(B) filed 1-17-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 3).