Self-Determination Program (SDP) FAQ: Your Questions Answered

The Self-Determination Program (SDP) is one of the biggest shifts in California's developmental disability system. Instead of your Regional Center directly contracting with vendors for your child, SDP gives you an individual budget and puts you in charge of hiring, spending, and designing supports that actually fit your family.

It is powerful — and it is also confusing. These are the questions we hear most from California families before they enroll, and the answers we wish someone had given us on day one.

What is the Self-Determination Program in plain language?

SDP is a statewide program run by the Department of Developmental Services (DDS) through your Regional Center. Instead of the Regional Center picking vendors and authorizing services one by one, you get an individual budget and can spend it on whatever supports your child's IPP goals — therapies, respite, community activities, transportation, adaptive equipment, job coaches, and more — as long as the spending meets federal Home and Community-Based Services (HCBS) rules.

You still have a Service Coordinator, you still have an IPP, and you still have Regional Center oversight. But you have real control over the money and the providers. Read the full breakdown in our SDP Guide.

Who qualifies for SDP?

Any California Regional Center client is eligible. That includes adults and children of any age, with any qualifying developmental disability. There is no income test. Your child does not need to be in a specific service category. As long as they are a Regional Center client in good standing, they can enroll.

The only catch: you have to attend an SDP orientation and complete the enrollment paperwork before the program starts paying for services.

How much is my individual budget?

Your budget is based on the cost of services the Regional Center was paying (or would pay) under traditional services, called your "Purchase of Service" (POS) baseline. For most families switching from traditional services, the initial SDP budget is roughly equivalent to what was being spent before — sometimes slightly more after a certification review.

The key point: SDP is not extra money. It is the same pot of money, but now under your control. Families who were getting few services before enrollment often start with a modest budget. Budgets can grow if needs change, but that requires a documented change in circumstances at your IPP.

What is an FMS and why do I need one?

FMS stands for Financial Management Services. An FMS is a vendor that handles the back-office money side of SDP — they process payroll for your staff, pay vendors, handle tax withholdings, file required reports, and help you stay within your budget. Everyone in SDP must use an FMS; you cannot handle the money yourself.

There are two main FMS models: the "Co-Employer" (also called Fiscal Agent) model, where the FMS is the employer of record for your staff, and the "Sole Employer" model, where you are the employer. For most families, the Co-Employer model is simpler. Your FMS takes a fee out of your budget each month (usually a few hundred dollars). You can switch FMS if you are unhappy — it is your choice.

What does an Independent Facilitator do — and do I need one?

An Independent Facilitator is an optional paid helper who assists with person-centered planning, writing your spending plan, running meetings, and generally guiding you through SDP. Their services come out of your budget.

Do you need one? If you feel organized, understand the basics of HCBS rules, and have time to write your own spending plan, you can skip it. If SDP feels overwhelming or you want someone in your corner who is not employed by the Regional Center, a facilitator can be worth every dollar. Most families use one at least in the first year and decide later whether to keep them.

How do I apply for SDP?

Start by telling your Regional Center Service Coordinator that you want to enroll. They will put you on the list for the next SDP Orientation — a required group training that is usually offered monthly either in person, by Zoom, or recorded. After orientation, you sign an enrollment agreement, the Regional Center calculates your individual budget, you pick an FMS (and optionally a facilitator), and together you write a Spending Plan.

Once DDS signs off on your Spending Plan, services can start under SDP. Start to finish, enrollment usually takes 3 to 6 months once you attend orientation. Some centers move faster.

How long does orientation take?

Orientation itself is usually about 3 to 4 hours and is offered in English, Spanish, and sometimes other languages. It is informational — attending does not commit you to anything. Many families attend orientation, take a few months to decide, and then enroll when they are ready. It is fine to attend more than once.

Is there a waitlist for SDP?

As of 2024, the original enrollment cap was removed and SDP is now open statewide without a cap — any eligible Regional Center client can enroll. That said, individual Regional Centers process enrollments at different speeds. If your center is backed up, you may wait a few months between orientation and Spending Plan approval. If you are ready now, get on the orientation list today rather than waiting.

Can I hire family members as staff?

Yes, with limits. Under SDP you can hire extended family, friends, neighbors — pretty much anyone who is not legally responsible for the participant. For a minor child, the biological or adoptive parents generally cannot be paid through SDP (because they are legally responsible). Stepparents, grandparents, aunts, uncles, adult siblings, and cousins can be hired. Once a minor turns 18, parents can be paid as SDP staff.

Important: IHSS has different rules. Parents can be paid as IHSS providers for a minor child with certain eligibility, including Protective Supervision. Many California families combine IHSS (parent as caregiver) with SDP (other supports) — see our IHSS guide.

What can I actually spend the budget on?

The rule is that spending must support IPP goals and meet the federal HCBS Settings Rule. In practice, families use SDP for things like behavior services, speech and occupational therapy beyond what insurance covers, social skills groups, community-based activities (art class, horseback riding, gym memberships tied to a goal), respite care, personal assistance, transportation (mileage reimbursement, Lyft, adapted vehicle mods), assistive technology (iPads with AAC apps, specialized software), camp, and job coaching for adults.

What you cannot spend on: room and board, education a school district should be covering, anything illegal, and general household expenses not related to the participant's goals. When in doubt, run it by your Service Coordinator before you spend.

Can I go back to traditional services if SDP is not working?

Yes. You can leave SDP at any time with a 30-day written notice to your Regional Center. Your services will revert to traditional Regional Center vendors. You may not get back exactly the same vendors (especially if they have filled their roster), so think this through before making a move. Many families find the first 6 months of SDP are the hardest; after that it settles.

Are there tax implications I should know about?

Yes, and this is where families get tripped up. The money that flows through your FMS to pay staff is taxable income to those staff (with one big exception: the Difficulty of Care exclusion under IRS Notice 2014-7 can make payments to a caregiver living in the same home as the participant non-taxable for federal income tax purposes, though FICA may still apply).

Your FMS will handle payroll taxes, W-2s, and required filings. You, as the employer (or co-employer), may also have state tax and workers' compensation obligations. Ask your FMS up front what they handle and what you handle — and consider a tax professional if you hire live-in family caregivers.

What are the most common mistakes new SDP families make?

A few we see over and over. First, overspending in the first few months because everything feels possible — your budget has to last 12 months, so pace yourself. Second, not documenting spending carefully; keep receipts and progress notes because annual reviews will ask. Third, hiring friends or family without a real job description, which causes resentment and firing problems later. Fourth, skipping the Independent Facilitator in year one because of the cost, then struggling alone — for many families this is false economy. Fifth, not planning for what happens when a key staff member quits (because they will).

The SDP families who thrive usually run their program like a small business: written job descriptions, a simple schedule, a monthly budget check-in, and one or two trusted advisors (a facilitator, another SDP parent, a local SDP parent group).

Where can I learn more or get help?

Start with our comprehensive SDP guide, then attend an orientation. Local SDP Advisory Committees (each Regional Center has one) are also a great source of real-world advice from other parents. DDS also publishes updated SDP regulations and FAQs on its website.