Navigating the Budget Crisis: Looking to the Past or Investing in the Future?

Navigating the Budget Crisis: Looking to the Past or Investing in the Future?

This has been a relatively quiet time at the Legislature.  The quiet is likely because legislators are contemplating the reality of the 10- to 12-billion-dollar budget hole and how they are going to manage it.  Devastating cuts could be looming, and it is sobering. The bill cutoff is this Friday, February 21st; many bills will die, especially those that have any fiscal impact. Tough decisions are ahead and the potentially catastrophic cuts at the Federal level make it all the more difficult.  Next week we expect to see Governor Ferguson’s budget released and we anticipate even deeper cuts than were in Governor Inslee’s budget.

Sometimes difficult decisions can present opportunity.  In Governor Inslee’s budget he made the bold recommendation to close Yakima Valley School and Rainier School.  These are both very old institutional facilities for individuals with IDD, also known as Residential Habilitation Centers (RHCs). Rainier opened in 1939 and Yakima Valley in 1958.  At the peak of state-run institutions in the late sixties and early seventies, there were more than 4,000 people with IDD residing at them. Our state still has four RHCs that house about 450 residents with IDD. This represents less than 1% of the Developmental Disabilities Administration (DDA) caseload but consumes 10% of the DDA budget. The cost for the care of the individuals and the upkeep of the facilities averages almost $1700 a day per person.  In stark contrast, the average daily cost for personal care and all waiver services for individuals living in the family home is only about $170 a day – more cost-effective by a factor of ten.

These facilities opened at a time when families had few supports and options.  Children with disabilities could not go to school and there wasn’t Supplemental Security Income or Medicaid to provide income and services. Families were left to fend for themselves.  These facilities were opened as a way to relieve these families.  Families were told that their child would be cared for throughout their entire life and that keeping them at home would ruin their families.

It is now recognized that with intervention, people with developmental disabilities grow and develop and are capable of achieving major developmental milestones. We have community resources that were not available when these facilities were established. All these factors help parents keep families together and have improved and extended the lives of individuals with IDD.  All the research shows that community-based care is “best practice” for individuals with IDD.

 

The 1999 Olmstead Supreme Court decision made clear that unnecessary institutionalization is discriminatory. Individuals have the civil right to live in their community.  18 states have now closed all their institutions.  Except for Washington, all the West Coast states have closed all of their institutions or have plans to close them in the near future.

We are at an important moment.  The threat of cuts looms large. We may be facing a time of scarcity of services.  Some people think that we need to preserve these institutions as a “last resort” placement. However, if we do this, the cost of these placements will continue to rise, and the availability of community resources will shrink.  The question we need to ask ourselves is “Do we want to continue to look to the past and perpetuate old models or do we want to look to the future and have appropriate community placements as the “last resort”? We need to invest in and strengthen the community so that everyone can live, work, learn, and play in the community.  If not now, when?

Together!

Cathy Murahashi

 

Advocacy Days Blog: Medicaid Matters

Medicaid Matters

Medicaid is often seen just as healthcare, but it plays a much larger role, especially for individuals with intellectual and developmental disabilities (I/DD). For these individuals, Medicaid provides critical funding for vital services, including residential, personal care, respite, and job support. In fact, nearly all services from the Developmental Disabilities Administration (DDA) are funded by Medicaid.

Watch Corinna’s story about why Medicaid Matters to her.

Medicaid is a partnership between the state and federal government. In Washington State, the federal government covers 50% of Medicaid Waiver services, while the state pays the other half. Some services, like personal care, have a slightly different funding ratio of 56% from federal and 46% from state sources.

Why should you care?

Washington State is facing a fiscal crisis that is projected to be between $10 and $12 billion over the next four years. Since most of our DDA services rely on Medicaid funding, state legislators have limited options for budget cuts without risking service reductions, eligibility changes, or decreased rates. Currently, many bills that require additional funding are being “held” until they determine the financial situation.

We know that DDA has been chronically underfunded. Cuts to our system would only cause harm.

Recently, parents Lee Springate and Bob Wheeler published an editorial in the Seattle Times expressing their concerns about cuts to state services.

All adults with IDD are already facing service cuts because of the acute shortage of qualified caregivers. This is at a time when approximately 2,000 adults with IDD are living at home with parents over the age of 60 and in need of immediate placement outside the family home. The remaining 11,000 adults living at home will need to transition to community placement within the next 10 to 20 years, resulting in an unfunded state liability above $1 billion annually (by year 20).”

While we face these potential cuts at the state level, there are significant threats to funding happening at the federal level that could seriously impact our Medicaid services. These changes could happen quickly, so we need to be proactive with our advocacy.

What Can You Do?

For individuals with I/DD and their advocates, this situation underscores the need to advocate for our Medicaid services. It’s vital to reach out to our state legislators and Congressional representatives to protect these crucial services.

Your voice is crucial in advocating for the future of Medicaid services!

Welcome to the 2025 Legislative Session!

Welcome to the 2025 Legislative Session!

Our first live Advocacy Day since the pandemic took place on Wednesday, the 15th. We were thrilled to see 90 advocates in person and 30 more joining us online! It was wonderful to see your enthusiasm and commitment to advocacy.

The day was filled with excitement, including the inauguration of our new Governor, Bob Ferguson. In his inaugural speech, Governor Ferguson outlined his key priorities: providing free school breakfasts and lunches for all public school students, increasing law enforcement presence, protecting reproductive freedom, and expanding housing opportunities. He also emphasized the importance of bipartisanship and collaboration, earning a standing ovation. We hope this is a positive sign for the days ahead.

The inaugural gala was a night of celebration that shined, sparkled, and rock & rolled.  Now that all new legislators have been sworn in, it’s time to get down to the business of lawmaking and budget planning.

Advocacy and Budget Challenges

With a new governor, staff, and legislators, there will be a learning curve on developmental disabilities (DD) issues. If you have a new legislator representing your district, take the opportunity to introduce yourself and share your story—early impressions tend to stick with them.

The state faces a projected $12-14 billion deficit over the next four years. The causes of this deficit vary depending on perspective, but key factors include increased caseloads, new programming that was started with pandemic-era federal funding and inflation. This leaves the legislature with two primary options: cutting services or raising revenue—both of which are unpopular. Agencies have already been instructed to freeze hiring, limit travel, and restrict equipment purchases. Unfortunately, the annual DD Community Summit has been canceled due to budget constraints. Advocacy will be essential to protect our vital services.

Given these financial limitations, new programs requiring significant funding are unlikely to be approved. Instead, policy bills with minimal or no fiscal impact have a better chance of progressing.

Proposed Institutional Closures

In response to the budget deficit, Governor Inslee has put forward a bold proposal to close Yakima Village School and Rainier School. Rainier is a Residential Habilitation Center (RHC), while Yakima Village provides nursing care for individuals with intellectual and developmental disabilities (I/DD). 18 other states have closed all their institutions entirely, while Washington still retains 4.  Currently, 10% of the Developmental Disabilities Administration (DDA) budget serves those in RHCs, despite them making up less than 1% of DD clients.

Legislation has been introduced in both chambers to support these closures:

It is critical that with the closure of RHCs, adequate investment in Community Services must be made to ensure a smooth transition to the community. In particular Supported Living needs rate increases so they are prepared to receive new residents.

Key Legislative Bills to Watch

  • HB 1130– Prioritizes individuals for DDA waivers when availability is limited, particularly those aged 45 and older, addressing the need for aging parents to secure long-term supports for their children.
  • HB 1200 & SB 5211– Allows parents of minor children with high support needs (E and High B categories) to be paid care providers.
  • HB 1344– Expands access to respite care by adding it as a service under the Basic Plus Aggregate services.

Several important education funding bills aim to increase special education funding by raising the cap, adjusting multipliers, and enhancing inclusive education. You can track all the bills we are following here: Bill and Budget Tracker

Get Involved!

There are many ways you can participate in advocacy efforts:

If you missed our Medicaid Matters town hall, you can view the recording here.

Thank you for your commitment to advocacy. Your voice matters, and together, we can make a difference!

Cathy Murahashi

2025 Advocacy Days Are Here!

The 2025 Legislative Session begins on January 13th, presenting us with challenges as the legislature anticipates a $10-12 billion shortfall over the next four years. This means significant cuts, increased revenues, or a combination of both may be necessary. What does this mean for developmental disability services?

We need to advocate for the protection of our essential services!

What Can You Do? 

Join us for Advocacy Days!

Register here to learn more about the issues at hand and how you can help. Advocacy Days will take place weekly on Wednesdays from 10:00 AM to 11:30 AM.

Kick-off Event: January 15th
Join us at United Churches in Olympia for our LIVE kick-off event. The morning program will be live-streamed, and the afternoon will allow you to schedule appointments with your legislators.

Following the kick-off, the rest of the Advocacy Days will be virtual, making it easier for individuals across the state to participate. We are also coordinating with several organizations that will host live rallies in conjunction with our virtual events. Stay tuned for more details!

To view the 2025 Advocacy Days Schedule Visit and Register: https://arcwa.org/advocacy/advocacy-days/

 

Connect with your Legislator!
Many new legislators may be unfamiliar with developmental disability (DD) issues, so now is the time to educate them. Your long-standing legislators also need to hear that DD services must be a priority. Share how important these services are and urge them to protect DD services.

Find your legislator’s contact information here: Legislator Finder. For information on new legislators, visit our candidate site: 2024 Elections.

 

DD Legislative Notebook:

For issue papers and information, check out our DD Legislative Notebook: 2025 Legislative Notebook – The Arc Washington.

Sign up for our Action Network here: Action Network Sign-Up. The Arc of Washington Action Network keeps you informed about important legislative budgets and policy issues that require immediate attention, connecting you directly to your legislators.

You can also subscribe to “News to Know” to receive updates on critical issues affecting individuals with I/DD and their families. Subscribe here: https://arcwa.org/news-to-know-sign-up/

Town Hall: “Medicaid Matters”

Medicaid is more than healthcare, it funds all Home & Community Based Services for people with I/DD. The Arc of Washington State hosted a virtual town hall to discuss more about why it matters, potential service threats, and how you can be involved. Watch the recording here.

Thank you for your continued support. Together, we can make a difference!

Cathy Murahashi, Public Policy Specialist, The Arc of Washington

cathy@arcwa.org

Advocacy Days, part of The Arc’s Advocacy Partnership Project, provide individuals with intellectual/developmental disabilities (IDD), their families, and service providers the opportunity to engage in the legislative process, make their voices heard, and influence policy and budget decisions that impact the services and support they receive.