Minnesota State Capitol Building Exterior, St. Paul Famous Government Dome
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A $1.3 billion budget proposal could help Minnesota assisted living and other long-term care providers address critical staffing shortages. But senior living advocates say it’s not nearly enough to address the 23,000 open caregiver positions in assisted living communities and nursing homes across the state.

State Sens. Jim Abeler (R-Anoka) and Karin Housely (R-Stillwater) introduced the funding proposal from the Human Services Reform Finance and Policy Committee. 

The proposal would allocate $1 billion to increase wages in the state’s long-term care, personal care and disability waiver rate service industries. Another $322 million would be dedicated to recruit more direct support professionals and personal care assistants at long-term care facilities, groups homes, and home and direct care providers. 

LeadingAge Minnesota President and CEO Kari Thurlow told McKnight’s Senior Living that although the budget target is “remarkable,” it won’t be enough to help fill the 20% of positions that are vacant across the state.

“This year, Minnesota will become home to over 1 million seniors, and the urgency for action grows,” Thurlow said. This session, we are asking Minnesota’s lawmakers to address the collapse of the senior care system with immediate solutions.”

Care Providers of Minnesota President and CEO Patti Cullen told McKnight’s Senior Living that the funding will cover a variety of staffing-related requests for all health and human services providers, including assisted living, nursing facilities, home care, intermediate care facilities and various waiver programs. 

“The funding requests before the committee are greater than the budget priority target,” Cullen said.

Care Providers of Minnesota has one proposal, SF3195, that likely will receive partial funding from this budget priority spending target, she said. The proposal, which would cost more than $500 million, would increase rates for nursing facilities and the Elderly Waiver program, as well as staff member wages.

The Elderly Waiver program provides home- and community-based services for eligible individuals who need nursing home-level care but who choose to live in the community. Residential services and care are among services that the program may cover. 

State Senate Republicans said that the staffing crisis in Minnesota is compounded by the closures of residential care facilities, resulting in waiting lists and the inability of individuals to access essential services. 

“There has been an overwhelmingly large gap in the long-term care workforce, and this funding incentivizes retention and recruitment to fill these spaces,” Housely said in a news release. “These homes serve our most vulnerable citizens, who deserve high-quality care without interruption.”

CNA training program

Last year, Minnesota Gov. Tim Walz (D) launched a program to recruit, train and deploy at least 1,000 new certified nursing assistants for Minnesota long-term care facilities experiencing staffing shortages.

As of this month, 1,278 individuals had participated in the program, made possible with a $3.4 million investment from the federal American Rescue Plan funds. Certified CNAs are eligible to work at any long-term care facility, hospital or veterans home. 

Walz included $6.7 million in the state’s proposed budget to continue to train students to become CNAs, with an additional $13.3 million proposed for fiscal year 2024–2025.