Self-employment and Supported Self-Employment for Vocational Rehabilitation Customers
Discussion Paper
Background
Texas Workforce Commission (TWC) Vocational Rehabilitation Services (VRS) can support customers who are interested in starting their own business, or those who need VR services to help them retain or expand an existing business. To receive VRS supports for a self-employment goal, the customer solely owns, manages, and operates the business and is not considered an employee of another person, business, or organization. The customer’s business can be in an independent location or located within an existing business, such as a barbershop or nail salon. VR services can include assistive technology, training, and business start-up supports, such as developing a business plan.
Issues
Currently, VRS processes and procedures to support a customer’s self-employment goal are not standardized, especially those supports purchased with VR funds. This often results in approved self-employment plans that are not successful for the customer.
VRS is proposing to standardize policies, procedures and supports statewide to ensure that, when it is necessary to purchase self-employment supports, all providers are trained to use the same best practices. Because many VR customers do not require provider assistance with every step in the self-employment process, VR counselors need the flexibility to engage providers for only those services needed by the customer.
To help VR counselors and customers receive the best value from providers, it is proposed that fees be established for specific a la carte services such as concept development and feasibility studies and business plan assistance. These fees will help the counselor control costs and establish a consistent fee structure across the state for these services.
The proposed fees paid by VRS for all self-employment services are based on estimates developed by VRS subject matter experts with input from the Center for Social Capital (CSC), nationally-recognized in the field of customized self-employment for people with disabilities.
Application of this methodology to certain supported self-employment (SSE) services resulted in fee increases, again, based on updated estimates of the number of hours a vendor will work. The new fees more accurately reflect the estimated time vendors will spend on each service, and will help VRS retain a vendor pool necessary to serve its customers.
CSC provides proprietary training leading to the Certified Business Technical Assistance Consultant (CBTAC) credential, and provides technical assistance to VRS staff and vendors to improve customer self-employment outcomes. VRS will continue to set aside funds ($7,000 during FY2018) to provide CBTAC training for providers and VRS regional and field staff, with a focus on underserved areas.
Decision Points
Staff recommends the following revisions to Self-employment standards for providers and fees:
· To improve customer service and fiscal stewardship, a statewide fee structure will be established for specific self-employment technical assistance services such as concept development, feasibility studies and business plan assistance. The fee structure will be applied consistently across the division and the services will only be purchased as needed by the customer. The fee structure is a deliverable-based fee that is calculated using the current hourly fee of $37.50 for self-employment services. Thus, the following technical assistance services will be available to be purchased independently:
o Self-employment exploration
o Self-employment concept development and feasibility study
o Self-employment business plan development
o Self-employment financial projections
· To improve provider oversight and accountability, require all providers who offer self-employment services to have completed the CBTAC course and certification.
· To improve fiscal stewardship and the effective delivery of supported self-employment services, reduce the number of benchmarks from seven to five and define requirements that must be achieved prior to entering benchmarks. This promotes a more thorough exploration of a customer’s self-employment concept and development of the feasibility study, prior to establishment of a self-employment IPE. As a result, the self-employment IPE includes only those benchmarks and approved funding necessary for business launch and supports for the customer.
· To manage costs and retain a viable vendor pool statewide, adjust the following supported self-employment services fees:
o Concept Development - Only- Supported Proposed: $125 Current: $875
o Feasibility Study – Only – Supported Proposed: $1,125 Current: (Note 1)
o Business Plan – Supported Proposed: $1,312 Current: $1,600
o Financials – Supported Proposed: $450 Current: (Note 2)
o Supported Self-Employment Assessment Proposed: $750 Current: $625
o Benchmark 1: SSE Services Plan Proposed: $125 Current: $125
o Benchmark 2: SSE Business Start-Up Proposed: $1,650 Current: $1,650
o Benchmark 3: SSE Business Maintenance Proposed: $825 Current: $825
o Benchmark 4: SSE Business Stability Proposed: $825 Current: $825
o Benchmark 5: SSE Service Closure Proposed: $2,475 Current: $2,475
Note 1: This is currently part of the Concept Development fee
Note 2: This is currently part of the Business Plan fee
DP Self-Employment and Supported Self-Employment for VR Customers Page 1 of 3
Agenda Item: 09/21/17 Commission Meeting