January 27, 2025

Executive Budget Release & Legislative Advocacy Pivot

Last week, Governor Hochul released her FY26 Executive Budget Proposal. We want to send tremendous thanks to all our advocates for raising your voices to support New Yorkers with intellectual and developmental disabilities. The Governor’s Executive Budget proposal, coupled with recent rate investments, demonstrate a true commitment to people with disabilities, and make meaningful progress toward reversing the neglect our service system experienced for so long.

We began our budget advocacy efforts in late summer, requesting a 7.8% Medicaid Rate Increase to stabilize the service system. In December, The Governor and OPWDD announced a nearly $850M investment in Residential and Day Services through the rate rebasing process, including Federal matching funds. In addition to this investment, the Governor's Executive Budget includes an additional 2.1% Targeted Inflationary Increase (TII) for nonprofit providers. A full overview of the Executive Budget pertaining to New Yorkers with I/DD, can be found here, and key investments are outlined below.

We thank the Governor and OPWDD for their partnership throughout the rate rebasing process, and Governor Hochul for recognizing the needs of New Yorkers with intellectual and developmental disabilities, and proposing additional investment in her Executive Budget.

While these investments are a start, significant needs remain to right our system after years of neglect. Rate rebasing is a federally mandated process to better align rates with the actual costs of delivering supports and services. However, not all services are included in this process. Essential programs like Family Respite, Community Habilitation and Employment programs received no increases from rate rebasing, and despite recent increases, inflation still outpaces investment in the field by nearly 20% over the past two decades.

We are grateful to the Governor for beginning to correct this deficit, but we must continue with our call for a 7.8% increase to ensure access to quality supports and services for people with disabilities, and prevent us from slipping back into a cycle of austerity.

This 7.8% increase will fund all facets of the comprehensive system of supports and services for people with intellectual and developmental disabilities, including:

• Wages & mandated fringe benefits
• Food & transportation
• Maintenance & utilities for programs & homes
• Medical supplies and nursing care
• Insurance (commercial, property, liability)
• Professional development & technology
• Compliance, legal, accounting & audit
• Licensing, accreditation, security & more

As we pivot to legislative advocacy, we urge you to challenge your legislators to match the Governor's commitment, and include a 7.8% increase in their one-house budget proposals. We have created an updated info sheet to support your legislative advocacy with new talking points, and our one-click campaign campaign has been updated to directly call on your representatives. The Mental Hygiene Budget Hearing on February 5 is rapidly approaching, and it is critical our voices are heard by the state legislature!

FY2026 Budget Update

An overview of key investments in the Executive Budget can be found below, and our full budget overview is available here.

Total OPWDD Increases

Total resources for OPWDD (state share only): $5.5B = 7.3% increase

$500M Investment in Rate Increases 

Late last month, Governor Hochul and OPWDD announced final rate increases for nonprofit I/DD providers. The 2024-25 budget included $130M for rate rebasing - $350M when combined with Federal matching funds. Thanks to our ardent advocacy and collaboration with the state, Governor Hochul’s administration leveraged an additional $500M investment to better align the final provider rates with the true cost of delivering services. These increases are retroactive to July 1, 2024, and will be integrated into the reimbursement rates we receive for delivering services moving forward. 

Total investment: $850M All Funds including federal share

2.1% Inflationary Increase 

In addition to the rate increases, Governor Hochul’s proposed Executive Budget includes an across-the-board 2.1% inflationary increase for nonprofit I/DD providers, bringing total investment in the OPWDD budget to the full suggested spending cap for FY2025-26. We are hopeful additional investments will be made by the legislature.

Total Investment: $232 All Funds with federal share (effective 4/1/25); $116M (state and local shares)

$75M Investment in The Institute of Basic Research          

The proposed Executive Budget includes a five-year capital investment of $75M to renovate and modernize the Institute of Basic Research in Developmental Disabilities (IBR). Located at the College of Staten Island, on the former Willowbrook State School Campus, IBR studies the causes of developmental disabilities, conducts research and offers services to help people with developmental disabilities and their families. The proposed investment includes the development of a Genomics Core facility to allow for the customized identification of genetic causes underlying an individual's developmental disability and creation of space for a Willowbrook learning center.  

$25M for Regional Disability Clinics  

The Executive Budget includes $25 million in capital funding to support the development of Regional Disability Clinics. Funds would support one-time costs for building modifications and equipment designed to increase accessibility and improve quality of healthcare for people with developmental disabilities who access services in Article 16 and Article 28 clinics.  

$53 for Minimum Wage Increases  

The proposed budget includes $53 Million for OPWDD and the Offices of Mental Health and Addiction Services and Supports to meet the new minimum wage requirements, preventing the minimum wage increase from becoming an unfunded mandate for providers.  

Learn More at our Legislative & Advocacy Forum Feb. 10!

On February 10, 2025, The Arc New York, NY Alliance for Inclusion and Innovation and the Developmental Disability Association of Western NY (DDAWNY) will host our annual Legislative and Advocacy Forum at the Hart Theater of the Egg.

This educational forum will provide advocates with in-depth information on the New York State Budget, and other pressing issues facing the I/DD community.

GET THE FULL AGENDA & REGISTER NOW!