Will a Self Determination Program participant lose unused SDP funds if they have funds left over at the end of the SDP year
To answer this question you have to have a clear understanding of the policies and regulations that govern how SDP works, not just what happened to them or someone they know.
Remember, the SDP budget is built on three legs:
1. Last 12 months of expenditures
2. Unmet needs
3. Changes in circumstances
What will happen to any given subsequent year’s budget depends on why THAT participant didn't use the funds and what THEIR situation is going into the new SDP year.
So, yes, if the participant didn't use the funds because they didn't need to use the funds the SDP participant will lose them in the next SDP budget. This could happen because they had a change in circumstance that improved or erased a need, they had a need met by a natural or generic resource, they over anticipated what it would take to meet a need, etc… This is because the SDP funds are the purchase goods and services that are actually needed (and are not provided for elsewhere) to help address disability related challenges so the participant can work on meeting their Individual Program Plan/IPP goals.
However, if the participant could have used the funds in their budget but there were situations that kept them from using the funds then the budget should not be reduced. These factors can include scheduling (either the participant or the provider),delays, availability, mismatch of services (personality, provision methods, needs, etc), an illness, changes in needs that were not addressed, unavailability to the service needed, etc. The participant can cover that excess left in the budget at the end of the year with the "unmet needs" leg of the budget formula and just explain the barriers that kept them from being able to use it, and note that those funds will be needed in the next year (and that they are anticipating/hoping the barriers will not be an issue in the new SDP year).
In addition, if there are any known and anticipated "changes of circumstances" for next year's budget the regional center may add funds to meet those new needs. These may include known medical issues or procedures, moves, life transitions like graduating from high school, starting college, beginning a new job, moving away from parents, etc.
One complicating factor is timing…… the new year’s budget is usually created a couple of months before the end of the SDP year. This is so there is time to complete the tasks that are necessary to be ready for the next SDP year. This includes:
1. Creating the spending plan with the Independent Facilitator
2. Submitting the spending plan to the regional center so the SDP team can calendar and review the spending plan for any duplication of services. This involves the SDP team making sure all services are in service of an IPP goal, and to endure all proposed spending is in alignment with SDP regulations (note, the regional center does NOT have the authority to “approve” or not approve a spending plan, just to review it to make sure it complies with regulations)
3. Any meetings for questions if the regional center has questions about items on the spending plan.
4. Time for any necessary rewrites in case one of the criteria are not met
5. Generating the Purchase of Service/POS to accompany the spending plan
6. Then the regional center SDFP team sending the reviewed spending plan and POS to the FMS for them to enter into their system (many FMSs require the packet by the 15th or earlier of the month before the start of the new SDP year).
So, you can see, the new budget will be worked on 2-3 months before the end of the SDP year, and so the regional center could not possibly know whether all funds will be used or how much would be left over to subtract from the new budget. So, while theoretically budgets can and should be decreased by the amount of unused funds that were clearly unneeded, in practice this is harder to do. And budgets should NOT be decreased by the amount of unused funds that were needed but not spent due to barriers.