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Governor Hochul Faces Pressure Over I/DD Funding in NY

Governor Hochul Faces Pressure Over I_DD Funding in NY (1)

Aretha Franklin’s iconic demand for R-E-S-P-E-C-T resonates today as a rallying cry for New York’s disability community—a field that has long been undervalued despite its critical contributions to our state. The words of Franklin’s anthem echo loudly in the ongoing struggle of people with intellectual and developmental disabilities (I/DD), who continue to face barriers in accessing healthcare, education, and vital community services. Meanwhile, the dedicated workforce that supports them struggles with inadequate compensation and job instability, despite the immense value they provide.

People with intellectual and developmental disabilities (I/DD) remain insufficiently integrated into our health system, schools, and communities. The barriers they face often stem from systemic neglect and a lack of resources allocated to support their full participation in society. These individuals are often left out of conversations about innovation and advancement, despite their abilities and the contributions they make to society. It is high time for society to recognize their potential and afford them the opportunities they deserve.

At the same time, the workers who support people with I/DD, known as direct support professionals (DSPs), are denied the dignity of a living wage. These dedicated individuals work tirelessly to provide care, guidance, and essential services to some of our most vulnerable populations. Despite the critical importance of their roles, DSPs are paid far less than their counterparts employed by the state. Their salaries and benefits account for over 70% of the funding received by providers, yet they are among the lowest-paid workers in the human services sector. In fact, these workers’ paychecks often fail to cover basic living expenses, forcing many to work multiple jobs just to make ends meet.

Meanwhile, the broader disability sector—a powerhouse that generates $14.3 billion in economic output, supports nearly 195,000 full-time jobs, and contributes $2.2 billion in tax revenue—must beg Albany year after year to increase rates to keep up with inflation. These economic contributions highlight the importance of this sector to the state, yet funding has consistently fallen short of meeting the growing needs of the I/DD community. Without adequate financial support, the sector cannot continue to thrive or provide the necessary services to people with disabilities.

On Nov. 19, hundreds of advocates, people with disabilities, and the dedicated staff that support them rallied in Albany, calling on Governor Kathy Hochul to support a stable care system for New Yorkers with I/DD. That system has been hard hit by a workforce crisis compounded by our inability to offer a living wage and years of underfunding that has pushed many providers to reduce their operations. This workforce crisis is not only a direct result of inadequate compensation, but also of insufficient investments in the training and professional development of DSPs.

While Governor Hochul has supported the disability community in recent years, we urge her to solidify that commitment by prioritizing the following: a 7.8% Medicaid rate increase; creating a wage commission to develop a sustainable plan for adequately compensating direct support professionals, or DSPs; and ensuring that all disability service providers have access to the capital necessary to upgrade facilities where individuals live, spend their days, and receive essential services.

Current Medicaid rates fall drastically short of covering the true costs of quality care, including staffing, housing, food, electricity, and transportation. From 2019 to 2024, overall inflation in the U.S. rose by 24.8%, with food costs surging 29.3% and transportation costs climbing 27.1%, according to the U.S. Bureau of Labor Statistics and Experian. During that period, Medicaid rate increases for disability providers amounted to less than half of those inflationary rises, leaving providers unable to keep pace with skyrocketing costs. This has led to a situation where many providers are forced to cut services or reduce staff, impacting the quality of care and support for people with I/DD.

For organizations whose sole funding source is Medicaid, such inadequate adjustments effectively amount to funding cuts. This systemic underfunding jeopardizes essential services and perpetuates a workforce crisis. DSPs care for some of our most vulnerable neighbors and are paid far below a living wage, despite their critical contributions. The lack of financial support also places an immense burden on families who rely on these services to ensure the well-being of their loved ones with disabilities. We deeply value our workforce and the people they serve, and we urge Governor Hochul to show the same respect by including a 7.8% rate increase in her executive budget.

Furthermore, we ask that the governor create a wage commission to evaluate wages across the human services sector. DSPs in the non-profit sector support over 85% of the people in the I/DD system, yet our providers are funded at levels that do not fully value the essential work they do, resulting in chronic staffing shortages and high turnover in non-profit agencies, jeopardizing the quality and continuity of care. The commission would develop a comprehensive plan to raise frontline staff wages and address wage compression—an issue that cannot be resolved by establishing a wage floor or new minimum wage. It is essential that wages reflect the immense value of DSPs’ work and provide a sustainable path forward for the sector.

Lastly, non-profit provider agencies need additional funding to upgrade facilities such as group homes and day habilitation centers. Many of these buildings are outdated and lack the resources to meet New York’s energy efficiency and climate goals. Upgrades would not only help providers reduce energy costs and improve operations, but they would make the facilities where our community works and lives adequate. It is critical that we invest in the physical spaces where people with I/DD receive care, as these environments directly impact the quality of life and support services provided.

The costs of inaction are steep. Without a 7.8% Medicaid increase, the I/DD system will continue to fray—losing staff, closing clinics, and reducing access to essential programs. These losses have left families increasingly anxious about the future of care for their loved ones. The I/DD community deserves better, and it is time to act before further damage is done to the sector.

Governor Hochul can reverse this downward spiral. By including our requests in her executive budget, she can affirm the state’s commitment to helping people with I/DD lead full lives, recognize the sector’s role as an economic driver, and reassure families that essential services will continue. Most importantly, she would be offering the disability community the respect it has long deserved. This is not only a moral imperative but an economic necessity, and it is time for New York to honor the contributions of the I/DD community with the dignity and respect it deserves.

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