$1.322 billion human services budget addresses Minnesota’s long-term care workforce crisis

ST. PAUL, MN – The Human Services Reform Finance and Policy Committee recently passed its $1 billion surplus priority, introduced by Senator Jim Abeler (R-Anoka). This is in addition to the $322 million rescue package to address the staffing crisis facing care facilities, which was introduced earlier this session by Senator Karin Housley (R-Stillwater). 

The budget addresses critical short-term and long-term staffing challenges facing personal care assistants, direct support professionals, nursing homes, and assisted living and intermediate care facilities. This assistance will help prevent many facilities from closing.

Under this proposal, nursing homes and senior facilities would receive $358 million, and staff could get a $2 raise. Personal Care Assistance (PCA) providers would get a 11% raise, which is twice the amount of the governor’s proposal. Group homes and services for persons with disabilities could see up to 6-7% increases. The bill also increases spending for homecare services by approximately 40%. 

Additionally, intermediate care facilities would finally have a stable funding formula to provide health or rehabilitative services for people with developmental disabilities.

“This funding will help ensure nursing homes, long term care facilities, and group homes have resources available to provide the staff necessary to care for senior citizens and Minnesotans with disabilities,” Senate Majority Leader Jeremy Miller (R-Winona) said. “Senate Republicans remain committed to helping support our most vulnerable populations.” 

As a result of Covid and its after-effects, many of these facilities continue to face stress as staffing shortages have ravaged the industry. There are currently about 23,000 open positions in Minnesota’s long-term care industry. 

To address this, Abeler’s proposal would allocate $1 billion to raise the wages of workers in Minnesota’s long-term care, personal care, and disability waiver rate service industries.  

“The long-term care industry continues to be besieged by lack of staff and faces a dire emergency situation,” Abeler said. “I strongly believe there is no higher priority than ensuring the care and safety of our seniors and persons with disabilities, and our budget priority will ensure that the essential services Minnesota’s most vulnerable people rely upon are protected. These rate increases will lead providers to raise wages and benefits for staff.” 

Additionally, this proposal would also contain $322 million to recruit more workers in long-term care centers, group homes, and home and direct care providers. This package was introduced by Housley earlier this session and is awaiting Senate floor action.  

“There has been an overwhelmingly large gap in the long-term care workforce, and this funding incentivizes retention and recruitment to fill these spaces,” said Housley. “These homes serve our most vulnerable citizens, who deserve high-quality care without interruption. We need to support those working in these facilities, so that residents can continue to have access to the care they deserve.” 

This crisis is further compounded by the closures of residential providers, therefore driving individuals to other facilities already facing staffing shortages. As a result, individuals are faced with waiting lists and find themselves unable to access essential services. These combined issues are jeopardizing the well-being of those with disabilities, as well as elderly individuals that depend on the services these homes offer.