02/03/2026
Maryland DDA Budget Update:
Last week, Governor Moore released the FY27 draft budget. DDA Community Services includes a $300 million cut, including roughly $150 million in state funding and $150 million in federal matching funds. The DDA budget total increases by 8% year over year, according to budget experts, however, these increases are explained to be mostly tied to increased utilization (services used) that exceeded the budget appropriation for our current fiscal year and are expected to continue, in addition to funding for service expansion including services for transitioning youth, adults aging out of children's residential programs, and crisis resolution cases (people in urgent situations, people who are unhoused, and people in crisis).
The cost containment measures (cuts) are proposed to be accomplished through 3 primary policy changes:
1. Self-Directed Services: Implement Reasonable and Customary Rate Changes. Rates would align with BLS code guidance and wage exceptions would be eliminated. This is projected to impact ~4,000 people with anticipated cost containment of $62 million in General Funds.
2. Community Provider: Dedicated Hours Training for Providers and CCS, and Enforcement of Federal Requirements. This is projected to impact ~3,800 participants who currently have dedicated hours in their person-centered plans. Anticipated cost containment is $54.2 million in General Funds.
3. All People with IDD in DDA Services: Caps on Individual Budgets of $500,000 based on Person Centered/Annual Plan (not utilization). According to DDA, this will impact ~1,600 individuals whose budgets are at or over $500,000 per year, with ~824 people who have service expenditures that exceed $500,000 per year. DDA states they will work with CMS on an exceptions process.
Read more in the latest edition of our Annapolis Insider here: https://conta.cc/3NDfiMF