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Dear Community,
This message provides a budget update and ends with a “special note." Read on!
Budget Update
Earlier this morning, Governor Newsom released the proposed budget for the 2026-27 fiscal year that begins July 1, 2026. This proposed budget is known as “the Governor’s Budget”, or the “Jan 10 budget.” It is found on the Department of Finance’s website.
The Governor's budget contains several proposals to close the $2.9 billion difference between the money California will take in during 2026-27 and what the State will spend. For the developmental disability services system, the Governor’s Budget includes $21.1 billion for 2026-27.
- This is an increase of $2.4 billion over our current budget.
- The proposed budget increase funds services for approximately 37,600 more people next year, and regional center costs to support them.
- We estimate supporting nearly 527,000 individuals next year!
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Details of the proposed budget can be found on our website in the FY 2026-27 accordion.
You might be interested in these additional items in the Governor’s Budget:
Federal Funding:
- Improvements in the quality and accuracy of data is increasing our ability to claim federal reimbursements. This means that each year we get about $100 million more from the federal government for eligible services provided by regional centers.
- The proposed budget also adjusts other federal reimbursement claims for people receiving Medi-Cal through the Affordable Care Act’s adult expansion population. This change is estimated to bring in about $154 million each year in additional federal funding.
- Federal funding is very important to California because it can reduce our spending of state General Fund money.
Ongoing funding for the Life Outcomes Improvement System (LOIS) project’s planning phase:
- $14.6 million and 20 staff positions are proposed to help the Department develop LOIS.
- After collecting a lot of input from all over the State through 2025, the Department is using what we learned to get the state and federal approvals we need to build LOIS. Thank you to everyone who shared their ideas about LOIS!
- Securing approval from the California Health & Human Services Agency (CalHHS), Department of General Services, California Department of Technology, and the federal Centers for Medicare and Medicaid Services will take up at least the first half of 2026.
Implementation of the federal Home and Community-Based Services Access Rule:
- $2.4 million and nine positions to address increased workload for a new grievance process.
- Starting in July 2026, people will be able to file a grievance if they believe:
- their Individual Program Plan was not developed in a person-centered way;
- their services are not being provided in a person-centered way; or
- their residential services provider is not following the federal home and community-based services requirements.
Aligning efforts to increase access to employment:
- We are partnering with the Department of Rehabilitation to create a “no wrong door” service delivery model for individuals with intellectual and developmental disabilities who want to get a job.
- This work will reduce the burden of identifying the right department to help get and keep a job. It also will make individuals’ access to employment services faster and reduce confusion and stress.
- The Budget includes $3.3 million for the Department of Rehabilitation to support this effort.
Department-wide human resources and information technology support:
- We are moving positions and associated dollars within the Department to better support vital work, protect state resources, and address needs for programs, including autism and employment services.
You might be interested in other sections of the Governor’s budget like California’s economy overall, health care, social services, employee compensation, or housing. We encourage you to learn more about the budget topics you are interested in at the Department of Finance’s website. Use the link in the first paragraph of this note to see the full budget document.
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