STATE BUDGET UPDATE: WHAT DOES IT MEANS FOR IDD SERVICES?

Earlier this week, Governor Kathy Hochul released her proposed FY 2027 Executive Budget. In it, she outlines her priorities for New York State, including the ways New York State will support services for people with intellectual and developmental disabilities (IDD), their families, and the workforce who serve them every day.

At LIFEPlan CCO NY, we support any efforts to invest in services that promote independence, inclusion, and opportunity for people with developmental disabilities across the state.

The executive budget is a plan written by the governor’s office that recommends how the state spends their money each year. It decides how much money different state offices receive for things like education, healthcare, transportation and IDD services.

The Governor’s proposal includes several plans that could positively impact the IDD community, including:

  • A Targeted Inflationary Increase of 1.7% for voluntary-operated OPWDD providers: This means, agencies that provide services like Day Hab, Com Hab, and Respite will receive a small increase in funding, so services can continue running safely and reliably.
  • A 5% Family Care rate: This helps Family Care Programs keep up with rising costs and support more people in family-style homes.
  • $5 million for a new Assistive Technology Innovation Center: This will support research and the creation of tools to help people with disabilities live more independently and access jobs.
  • New funding to support expanded service opportunities for OPWDD services: This would help OPWDD increase service availability for people entering the system and for people who need additional or different supports over time.
  • $15 million to develop housing: This funding would help create more independent living opportunities so people with IDD can live safely and plan for the future.
  • Expanding accessibility across the MTA system: At least 60 more subway stations will become accessible. This can help reduce travel costs for those in the city and allow for more independence!
  • The launch of an Adaptive Clothing Grant Program, supported by $60,000 in grants through the Fashion Innovation Center: Adaptive clothing is made to be easier for people with disabilities to wear. Like shoes without laces or shirts that tie on the side instead of pulling over your head.

We are glad to see that the proposed budget includes a Targeted Inflationary Increase (TII). This shows that state leaders understand that the cost of services for people with IDD continues to rise, especially for community‑based supports.

But the proposed 1.7% increase does not fully match today’s higher prices. Right now, the Consumer Price Index (CPI) shows that the cost of programs and services has gone up by about 2.7%. This means providers and staff are still paying more than what the TII helps cover.

We strongly urge the Governor and the State Legislature to include a TII in the final budget that at least matches CPI—and ideally goes above it—to help New York maintain:

  • strong, dependable services
  • stable providers
  • a qualified workforce that can support people across the state

We also urge the Governor and State Legislature to add Care Coordination Organizations (CCOs) to the list of groups that will get the Targeted Inflationary Increase. Right now, CCOs are the only ones left out, even though they are the only providers of care coordination for people with IDD. Care managers are often the first and most important contact for individuals and families as they work through complicated Medicaid, health care, and human services systems.

We encourage staff, members, families, and community partners to read the full Executive Budget proposal to learn more about other important updates for the IDD community.

Read the Governor’s proposed FY 2027 Executive Budget here: FY2027ExecutiveBudgetBook.pdf