The Arc of Massachusetts Analysis: Governor Healey’s FY26 Budget Proposal

Governor Healey’s Fiscal Year 2026 (FY26) budget, which was released on Wednesday, January 22, provides growing support for many line items, but has some concerning funding levels that will require our collective advocacy. The Arc of Massachusetts joined a briefing on Wednesday afternoon held by the Executive Office of Health and Human Services (EOHHS) to review the budget proposal with key stakeholders.

The Arc, combined with your strong advocacy, made a difference in several key line items. Over the past several months, we communicated our top priorities for the budget to the Governor’s office. Our priorities included increasing the Chapter 257 workforce rates for home and community-based services; increasing funding to critical MassHealth and DDS programs, including day habilitation, PCA, and Turning 22; and addressing the gaps for people with more complex and dynamic needs. Our communications to the Governor continued to center our advocacy on the waitlist of people who are unserved or underserved.

While there were some wins, including funding for Chapter 257 workforce rate reserve, this budget has significant areas of concern. The Governor’s administration expressed concerns about the state revenue numbers and the end of pandemic-era federal funding, which are impacting the state’s ability to continue to grow services.

Our advocacy with the legislature is now critical. It is our vehicle to prioritize funding in these uncertain times for those with autism and intellectual and developmental disabilities and their families.

The chart below documents the FY26 budget compared to last year’s (FY25) budget.

To summarize our chart, the most notable changes include:

Community Residential, Autism Omnibus, Transportation, and Technology for Individuals all had double digit increases in this budget proposal. We anticipate that these increases will result in more access for individuals waiting for services. After much advocacy during the last budget cycle, we are pleased to see the PCA program was fully funded through this budget. We will continue to advocate for this program in the coming years.

The growth in these line-items is essential as we estimate over 2,400 have not been able to start or return to day services or supports. We believe that these positive investments will make an impact, but know that we will need to take action with the legislature to bolster other line-items.

Our Concerns about the FY26 Proposal

The Workforce crisis continues to be a priority area for our advocacy, and we hoped to see more momentum toward fair pay for human service workers. The Chapter 257 rate reserve was funded at $207 million. This reflects a $34 million increase over the previous biennial Day Program and Family Support rate review in FY24, and it maintains the direct care service worker salary at the Bureau of Labor Statistics (BLS) median rate 53rd percentile. This rate equals a median average of $20 per hour.

The BLS median rate is a benchmark for human service workers, and when it is reset, it is for a two-year period. The Arc’s goal is to bring rates to the 75th percentile, which is the level needed to provide workers with a competitive salary that considers inflation costs, training, and benefits and will attract and retain dedicated and talented workers. The 75th percentile pay rate will help alleviate the workforce shortage, which in turn will improve access to programs. Together with our advocacy partners, we will advocate for a higher percentage (63rd) of the BLS for this budget cycle to continue the momentum towards the ultimate goal of reaching the 75th percentile.

Additional information is needed to understand the $13 million (11%) decrease from last year’s budget for Turning 22. This decrease comes as the number of transition age individuals is growing, as is the complexity of their care needs. We are also concerned about the decreased funding to the Autism Children’s Waiver, as we know the needs of children with autism, especially as we come out of the pandemic, are complex. Early and intense intervention can change the trajectory for many.

Similarly, Community Day programs have been level-funded, even though more funds are needed to address those in our community who remain underserved or unserved. We understand that part of this problem is due to the workforce shortage. Programs may not be fully utilizing funds because of the lack of workforce. This is the cycle that we must break. As we begin a new session, the workforce shortage must be addressed on many levels, including through legislation. Stay tuned to learn more about our legislative platform.

Finally, The Arc is continuing to learn more about the language regarding group home vacancies. The budget states that the state will stop funding long-term vacancies and that there will be some consolidation initiatives for group homes. The information The Arc is receiving from the administration is that these consolidations will be done by working directly with families and providers. We will advocate strongly in this area, working closely with families and the administration to ensure that individuals have the most appropriate housing, peer matches, and geographic location.

Over the next few weeks, we will continue to strategize with our advocacy partners and community members. While we understand that the state is amid challenging fiscal times, our community needs investments in services. Although we have a mixed bag of highlights and concerns, it is evident that our advocacy did make a difference – and we will continue that momentum!

Please stay tuned as our next action steps develop. The budget will next move to the House of Representatives and then to the Senate. Onward!