AGING AND DISABILITY SERVICES ADMINISTRATION
July 16, 2001
AASA No. 01-016
Dear Nursing Facility Administrators and Interested Parties:
The 2001-03 Omnibus Budget, passed in the 2001 legislative session as ESSB 6153, appropriated funds to provide a $.45 increase in the direct care component rate to be used to increase the wages of low-wage workers in nursing homes that contract with the state.? In implementing this increase, a number of questions have been raised.
The department recognizes the variances of wages across the state and is defining low-wage workers as the lowest 30% of all direct care employees versus a fixed dollar.? As the funds have been provided specifically for low-wage workers, the department will not recognize additional staffing or salary increases to staff above the 30th percentile as effective uses of the funds.
In an effort to mitigate salary compression, the department encourages the use of a declining percentage increase method for wage increases.? For example, the lowest paid employees would receive a higher percentage increase than those at the top of the 30th percentile.? Another approach could be to hasten an existing schedule that might be in place so that wages of new low-wage employees are increased more rapidly.
If you need assistance in developing a distribution method, please feel free to contact Eric Case at (360) 725-2479 or Frank Hogenhout at (360) 725-2467.? They will be able to help you customize a distribution in a manner that fits legislative and department definitions, is equitable to employees and utilizes the funds provided.
Sincerely,
Tom Kearns, Chief
Office of Rates Management
Management Services Division
Aging and Disability Services Administration
