News Summary
Arizona is grappling with a $159 million budget shortfall in its Division of Developmental Disabilities program, just months after addressing a previous crisis. This shortfall threatens essential services for nearly 60,000 individuals with disabilities, with advocates warning of catastrophic impacts, especially for children. The upcoming legislative session will focus on potential solutions and funding approvals. Adjustments to service delivery and financial pressures on families are looming as reforms take effect on October 1.
Arizona is facing a significant budget shortfall of $159 million in its Division of Developmental Disabilities (DDD) program, just five months after lawmakers addressed a previous crisis involving a $122 million funding gap. The newly required supplemental funding request includes approximately $56.3 million from the state general fund and $103.1 million in federal funds to maintain current services and benefits for individuals within the program.
The Department of Economic Security (DES) has highlighted the urgent need for additional funding as DDD nearly exhausted its budget in the spring, putting essential services at risk for the last two months of the fiscal year. Recent reforms implemented to address the previous budget shortfall have resulted in significant service cuts, particularly affecting children with disabilities, causing advocates to describe the situation as “catastrophic.” Starting from October 1, these cuts are expected to save DDD around $133.2 million but will still leave a substantial gap in funding.
The projected shortfall is attributed to two main factors: an increase in program enrollment that has outpaced Arizona’s population growth, with annual growth of about 7% over the past decade, and rising costs associated with services. The program’s growth is partly due to better diagnoses of disabilities and an influx of individuals moving to Arizona. Currently, DDD serves approximately 60,000 Arizonans, including nearly 24,000 children under 18 years old.
Adjustments in service delivery, billing practices, and member assessments throughout the fiscal year could impact the exact figures for the anticipated shortfall. DES plans to closely monitor both program growth and service costs as the year progresses. The supplemental funding request follows earlier bipartisan legislative efforts aimed at resolving the previous shortfall, which included reforms targeted at ensuring the sustainability of DDD.
Significant changes are set to take effect on October 1, including new rules that impose age-based limits on habilitation services, reducing the scope of services provided to individuals with disabilities. Furthermore, parents who were previously compensated for providing care services will no longer receive payment, resulting in additional financial burdens on families. If the new supplemental funding does not pass, the state may face tough decisions concerning service provisions.
Parents and advocates are expressing urgent concerns regarding the implications of funding cuts, fearing that disruptions in care could lead to the institutionalization of children with disabilities. The Arizona Legislature’s next session is scheduled to resume on January 12, when Governor Katie Hobbs is expected to propose a budget shortly thereafter. There is anticipated debate surrounding the sustainable future of the state’s developmental disabilities program.
Advocates argue that the current cuts will place further strain on families, potentially resulting in higher future costs in other areas, such as public healthcare and emergency services. The financial demands for care related to disabilities have significantly increased, with annual spending for attendant care skyrocketing from $17 million in fiscal year 2019 to $318 million by fiscal year 2025. Additionally, Arizona’s Medicaid program, known as AHCCCS, is also adjusting policies in response to the rising needs and expenses associated with the DDD program.
The ongoing discussions underscore the necessity for transparency and a thorough examination of the implications for families that depend on these critical services, as lawmakers work to find sustainable solutions in the face of persistent budget challenges.
Deeper Dive: News & Info About This Topic
- ABC 15: Arizona’s Disability Services Program Faces New $159M Budget Shortfall
- Wikipedia: Disability Services in the United States
- Tucson Sentinel: Caregivers and the Disabled Community
- Google Search: Disability Services Arizona
- Arizona Mirror: Political Standoff Threatens Services for Disabled Arizonans
- Google Scholar: Arizona Disability Services
- 12 News: Gov. Katie Hobbs Cutting Services for Families with Disabled Children
- Encyclopedia Britannica: Disability
- Fox 10 Phoenix: Update on Arizona Disability Services
- Google News: Arizona Disability Funding
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
