Reimbursement rates vary widely for shelter providers in Massachusetts.
William J. Miller, Executive Director of the Friends of the Homeless, at the new Resource Center on Worthington Street in Springfield.SPRINGFIELD – Friends of the Homeless, which has been lobbying for an increase in state funds for its emergency shelter beds and related services, is a signature away from some relief.
The state budget, recently passed by both the House and Senate, calls for a new, minimum payment of $20 per bed per night for shelters in Massachusetts. The rate will trigger an increase in state funds for the lowest-paid organizations, including Friends of the Homeless, officials said.
The budget awaits a signature of approval from Gov. Deval L. Patrick.
The $20 rate will generate approximately $270,000 in new revenue for the Friends of the Homeless Resource Center on Worthington Street, partially offsetting a projected deficit of more than $400,000, said Executive Director William J. Miller.
“It doesn’t eliminate it (the shortfall), but it certainly is a step in the right direction,” Miller said.
Currently, Friends of the Homeless is paid at a reimbursement rate of $12.97 per night for 85 beds, and at a rate of $17.02 per night for 48 beds, according to a recent list of rates provided by Friends of the Homeless.
The rate increase “is a huge step in the direction of creating more equity statewide in providing services to the homeless,” Miller said.
Without the increase, “we would have been forced to drastically reduce the services we provide to our client population, particularly those related to programming including job and housing-related services,” Miller said.
State Sen. Gale Candaras, D-Wilbraham, the lead sponsor of the proposed $20 rate per bed, said she is optimistic that Patrick will approve the measure as part of the state budget. Candaras was among Western Massachusetts legislators who pushed for passage, officials said.
Both Candaras and Miller said there will be continued efforts to secure more equity in the rates in the future.
Gale Candaras“There should be more progress,” Candaras said. “We will keep pressing our case as time goes forward and revenues improve.”
The state contract average for the shelter subsidy is approximately $30 per bed per night, but it varies widely, officials said.
The Pine Street Inn in Boston, for example, receives reimbursements ranging from $42.86 to $63.32 for its shelter beds, according to Friends of the Homeless.
While there is a difference in costs in Boston, it is not to the extent reflected in Springfield’s rate, Candaras said.
Miller said he believes a “handful” of the lowest paid agencies benefit from the minimum $20 rate.
Friends of the Homeless operates a homeless resource center at 755 Worthington St., that includes shelter beds and services.
“We still have a ways to go to achieve parity with our counterparts across the state, but our legislative delegation is providing real leadership in helping us address this issue,” Miller said.
Other legislators who played key roles in gaining passage of the minimum rate were State Reps. Thomas Petrolati, D-Ludlow, Joseph Wagner, D-Chicopee, and Cheryl Coakley-Rivera, D-Springfield; and Sen. James Welch, D-West Springfield; and Michael Knapik, R-Westfield.