Budget Overview
The Arc is pleased to see that the Senate Ways and Means Fiscal Year 2027 (FY27) proposal contains some key provisions that include stronger language around Chapter 257, reference to the AFC working group, and importantly, key language from our Turning 22 bill.
Major funding levels for the Department of Developmental Services (DDS) and other programs are similar to the Governor and House versions. These budget proposals are complex because the detail in the language matters. Below is a breakdown of each area of priority.
Chapter 257 and the Workforce
The Senate Ways and Means proposal commits to the same $175 million funding level for Chapter 257 as the Governor’s and House’s proposals, even though a full $260 million is needed to fund rates at the 53rd percentile of the Bureau of Labor Statistics. Our understanding remains that there was an overestimate of inflation in FY26 and that balance will be moved over to fully reach the $260 million needed for FY27. We will continue to monitor this closely.
The Senate Ways and Means proposal does include language seeking a study that references the 75th percentile – reaching that level is our long-term advocacy goal. In contrast to the House Ways and Means proposal, the Senate version does not include language referencing the 50th percentile, which is a positive step in ensuring that Chapter 257 remains fully funded.
MassHealth
The Senate Ways and Means proposal continues the across-the-board MassHealth rate freeze. This is concerning, particularly for programs like Day Habilitation, as level-funding will not provide a pathway to reduce existing waitlists, leaving many individuals without access to critical services.
The Governor’s proposal created working groups to find cost savings in Personal Care Attendant (PCA), Adult Family/Foster Care (AFC), and Adult Day Health (ADH). The Arc’s CEO Maura Sullivan is serving on the PCA and AFC working groups, which will continue to meet.
The Senate Ways and Means proposal references these working groups. We look forward to continuing to be part of the conversations around balancing sustainability with the importance these programs hold for individuals and families.
Turning 22 Commission
The Senate Ways and Means proposal includes language establishing a Turning 22 Commission to review gaps in transition planning and develop a comprehensive strategy to better support transition-age youth with disabilities as they age out of programs. Importantly, the commission must produce actionable recommendations to improve outcomes in employment, independent living, and services access, while also strengthening data sharing, accountability, and long-term planning.
Based off The Arc’s Turning 22 bill, this commission language is a critical step in the right direction. Our strong advocacy in the Senate pushed for the inclusion of this language and we will continue to work to ensure that the commission language is included in the final FY27 budget. Thank you to the Senate Ways and Means Committee, Senate President Karen Spilka, and Senate sponsor Senator Jo Comerford for recognizing the importance of this Commission!
Department of Developmental Services
Our analysis shows that most Department of Developmental Services (DDS) line items were funded at the same levels as the Governor and the House proposals, which mostly maintained funding from FY26. See our analysis of the Governor’s proposal and our analysis of the House proposal for more detail.
Although these proposals all generally reflect a commitment to stability during a challenging fiscal year, level-funding does not fully address the rising demand for services across the community. Advocacy will continue to be needed in future years.
Additional Provisions
- The Governor’s proposal placed a cap on MassHealth dental expenses at $1,000 per member per year, with exemptions for those served by DDS. Thanks to the advocacy of organizations like Health Care for All, The Arc, and others, this cap was increased to $1,750 in the House version, which the Senate Ways and Means Committee maintained. Though no cap is preferable, this increase will make a significant difference in people’s ability to access oral health care.
Next Steps
Senators are currently filing amendments to this proposal, which will debated later in May. We are working closely with Senators to file needed amendments – and we will need your advocacy to ensure that they are successful.
If you have questions, please reach out to Nora Bent at nbent@arcmass.org
