California's Self-Determination Program (SDP) gives people real control over how services are delivered. But before any of that freedom becomes real, there's a very practical step that trips up a lot of families and facilitators: building a clear, compliant spending plan.
If you've ever stared at service codes, rates, and budget tables wondering whether you're doing it "right," you're not alone. The rules are specific, the terminology isn't intuitive, and most tools weren't designed with everyday users in mind.
This article breaks down how California SDP spending plans actually work, what commonly goes wrong, and how to build one more easily using a free SDP spending plan calculator.
What Is a Spending Plan in California's Self-Determination Program?
In California's SDP, the individual budget and the spending plan are related, but they're not the same thing. The individual budget sets the total annual amount available. The spending plan shows how that budget will be used across specific services, rates, and providers.
Think of the individual budget as the ceiling, and the spending plan as the detailed map underneath it. The spending plan must:
- Align with the Individual Program Plan (IPP)
- Use allowable SDP services and service codes
- Stay within the certified annual budget
- Be understandable to the participant, their family, and the Financial Management Service (FMS)
When spending plans are unclear or inconsistent, approvals slow down and revisions pile up.
How the SDP Individual Budget Is Calculated (Before the Spending Plan)
Before a spending plan can be built, California SDP requires an individual budget calculation based on real historical data. This isn't just looking at last year's total and copying it forward. The calculation is more nuanced than that.
The budget calculation typically starts with baseline spending from the prior 12 months of Regional Center services. But that baseline gets adjusted in several ways:
- Annualization for services that were only provided part of the year, projecting what they would cost if they ran for a full year
- Group contract adjustments that reflect shared cost structures, such as shared transportation
- Newly identified needs that weren't reflected in prior spending because the service didn't exist yet or wasn't needed before
- Exclusions for services that won't continue or costs that will be handled outside the SDP budget
The official DDS budget calculation tool follows this logic closely, but it's formula-protected and not especially friendly for ongoing planning or scenario testing. That's where people often get stuck.
What Services Can Be Included in a California SDP Spending Plan?
Not every helpful idea qualifies as an SDP service. Spending plans must be built using approved SDP service definitions and service codes, grouped into clear budget categories.
Most spending plans include services across areas like living arrangements and community living supports, employment and community participation, and health and safety supports. Each service must map to a specific SDP service code, such as Community Living Supports, Employment Supports, Technology, or Respite. The name alone isn't enough. The service has to match the official definition, purpose, and billing structure.
This is where many plans run into trouble. A service that sounds reasonable can still be denied or delayed if:
- The service definition doesn't match how it's being used
- The unit of service or rate isn't aligned
- The service overlaps with something handled outside the SDP budget
- The documentation doesn't clearly support the purpose
Clear alignment between goals, services, codes, and costs makes approvals smoother for everyone involved.
Common SDP Spending Plan Mistakes (And How to Avoid Them)
After working with SDP participants, facilitators, and FMS providers, the same issues show up again and again. People often treat the spending plan like a rough estimate instead of a working budget. They mix individual budget math with spending plan details in ways that confuse rather than clarify. They use spreadsheets that only one person understands, which creates bottlenecks and errors when someone else needs to make changes. Services that are excluded from the SDP budget get accidentally included. And changes get made without anyone seeing how they affect the annual total until it's too late.
Most of these aren't policy mistakes. They're tooling and clarity problems.
A Simpler Way to Build a California SDP Spending Plan
To make this easier, we built a free California SDP spending plan calculator designed for real-world use. The calculator:
- Mirrors the logic used in DDS budget calculations
- Helps translate services into annualized costs
- Makes assumptions visible instead of hiding formulas
- Allows participants, families, and facilitators to see how choices affect the full-year budget
It's designed to support conversations, not replace them. Whether you're preparing for planning meetings or refining an approved plan, the goal is transparency and confidence. Press here to access the tool (or click on the image below)
Who This SDP Spending Plan Calculator Is For
This tool is especially useful for:
- Individuals and families participating in SDP
- Independent Facilitators supporting planning
- Financial Management Service providers
- Regional Center partners who want clearer documentation and fewer revisions
The clearer the plan, the easier it is for everyone to do their part.
Final Thoughts: Self-Determination Works Best When the Numbers Make Sense
Self-determination is about choice, flexibility, and control. The spending plan shouldn't feel like a barrier to those goals.
When budgets are understandable, services are clearly mapped, and everyone can see where the money is going, the program works the way it was intended to. Good tools don't replace human judgment. They just make it easier to use.
About Ankota and How We Support SDP Programs
Ankota provides software for Self-Determination Financial Management Service providers and self-determination programs in California and other states.
We focus on making SDP budgets and spending plans easier to understand, easier to manage, and easier for participants to engage with. That includes helping FMS providers offer more client-friendly visibility, so individuals and families can see and manage their budgets clearly alongside their FMS.
If you're exploring better tools for SDP budgeting, spending plans, or financial management, we'd be glad to help.
Ankota's mission is to enable the Heroes who keep older and disabled people living at home to focus on care because we take care of the tech. If you need software for home care, EVV, I/DD Services, Self-Direction FMS, Adult Day Care centers, or Caregiver Recruiting, please Contact Ankota. When you're ready to accept that the homecare agencies of the future will deliver care with a combination of people and tech, visit www.kota.care.
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