7: Spending Plan
- Page ID
- 64399
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- Spending plans show how you will use the SDP budget to meet your goals.
- Spending plans list all of the services and supports that cost money.
- Spending plans include required information, but in 2026, there is no one required spending plan format.
All spending plans must include:
- The service/support
- The goal addressed by the service
- How much the service costs (including frequency/annual units)
- The service code (budget code)
- FMS information: including number of monthly services billed
SDP Law
Statute does state that by March 1, 2027, standardized processes and procedures will be in place, so the spending plan and other aspects of SDP could change.
According to statute, the Department shall reduce barriers to the Self Determination Program. Here is the law’s text regarding barrier reduction:
(I) Reduce barriers to participation and improve equity in enrollment by establishing, with community input, no later than March 1, 2027, statewide standardized processes and procedures, including, but not limited to, timelines for these processes and procedures. Input from the community shall include, but not be limited to, consultation with the department’s Lived Experience Advisory Group, individuals and families, caregivers, advocates and associations, service providers, regional centers, the State Council on Developmental Disabilities Statewide Self‑Determination Advisory Committee, and legislative staff and shall include adequate notice, or 45 days at a minimum, for the community to review and provide feedback on draft processes and procedures, with review and consideration by the department of feedback prior to finalization for the March 1, 2027, deadline. The standardized processes and procedures shall be consistently applied by regional centers. The standardized processes and procedures shall include, but not be limited to, all of the following:
(i) Enrollment.
(ii) Individual budgets.
(iii) Spending plans.
(iv) Financial management services.
(v) Access to transition supports.
In addition to this requirement, the Department shall also complete the following:
(b) The department, in establishing the statewide program, shall do both of the following:
(1) Set targets and benchmarks as set forth in paragraph (1) of subdivision (r).
(2) Address all of the following:
(A) Oversight of expenditure of self-determined funds and the achievement of participant outcomes over time.
(B) Increased participant control over which services and supports best meet the participant’s needs and the IPP objectives. A participant’s unique support system may include the purchase of existing service offerings from service providers or local businesses, hiring their own support workers, or negotiating unique service arrangements with local community resources.
(C) Comprehensive person-centered planning, including an individual budget and services that are outcome based.
(D) Consumer and family training to ensure understanding of the principles of self-determination, the planning process, and the management of budgets, services, and staff.
(E) Choice of independent facilitators, who meet standards and certification requirements established by the department, and who can assist with the functions specified in paragraph (2) of subdivision (c).
(F) Choice of financial management services providers who meet standards and certification requirements established by the department, and who can carry out the functions specified in paragraph (1) of subdivision (c).
(G) Innovation that will more effectively allow participants to achieve their goals.
(H) Long-term sustainability of the Self-Determination Program by doing all of the following:
(i) Requiring IPP teams, when developing the individual budget, to determine the services, supports, and goods necessary for each consumer based on the needs and preferences of the consumer, and when appropriate the consumer’s family; the effectiveness of each option in meeting the goals specified in the IPP; the cost effectiveness of each option, as specified in subparagraph (D) of paragraph (6) of subdivision (a) of Section 4648; and the utilization of available generic services, as defined by the department.
(ii) The department may review final individual budgets that are at or above a spending threshold determined by the department of all individual budgets and use information from its review in the aggregate to develop additional program guidance and verify compliance with federal and state laws and other requirements.
Again, these requirements are due to be completed and reported on to the legislature by March 1, 2027. How this will impact the Self Determination Program remains to be seen.
To read the entire law, visit the California Legislature’s webpage.
Level of spending plan detail
Additionally, it is wise to include as much detail as is available to reduce the need to return to the regional center (RC) for updates. Depending on both the Financial Management Services (FMS) and the RC, there may be pain points when adjusting the spending plan.
Keep in mind every time the spending plan is updated, multiple approvals could be needed to update it. This update may be needed for the FMS to purchase the services and goods approved in the spending plan.
Additionally, some regional centers have started to use these reviews as an opportunity to revisit already approved services. Keep in mind that the Individual Program Plan reflects the services needed to meet the needs of the person-served. If you have not changed the IPP, there is no change needed in the spending plan.
It makes sense to include as much information in the annual spending plan as you can. If you do not know which service provider will be a great match yet, then include a list of possible ones. That way, the FMS will be able to onboard the one you select on your list. Make sure to communicate this with the FMS. You do not want to create additional work for the FMS (or for yourself or the participants you support) by asking them to onboard all of the listed providers. Instead, tell the FMS which provider you will use now. If that service does not meet the participant’s needs, try a different listed provider.
Tip to avoid spending plan headaches
Listing possible service providers within the spending plan with “or” allows the FMS to move between service providers when needed.
- Ask both the FMS and the RC if this practice works for them. Using "or" in the plan give multiple possible providers in case one provider does not meet the participant's needs.
- If including multiple provider works for your regional center and FMS, you might reduce the number of approvals and meetings you need throughout the year. Yippie!
Make sure to communicate with your FMS about which provider you intend to use.
Remember that the spending plan connects directly to the person-centered goals. Much like the IEP, the IPP contains goals. Also like the IEP, if there is no need identified in the IPP, there is no reason to spend money to meet the goal.
If there is a need, make sure to document it in the IPP. Take care to participate in the IPP each year with specifics and ideas of ways to meet goals. Once a need is reflected in the IPP, it is easier for the regional center to allocate funds to address that need with appropriate services and supports. If there is no need demonstrated in the IPP -- much like in an IEP --- there is nothing to fund, hence, no service or support. Treat the IPP as seriously as you would treat an IEP, and hopefully, all needs will have connected services.
Questions to think about:
- What are ways to reduce the number of edits to spending plans needed during a year?
- Do I have a checklist from the regional center and/or FMS with their required/preferred formatting?
- Does the regional center I am working with have a required spending plan template? Do I have the most recent version of it?