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Providers warn cuts to extended‑employment and unstable DSP funding would harm adults with disabilities
Summary
Multiple providers, family members and statewide disability advocates told the Senate Budget and Appropriations Committee the governor’s FY26 proposal — combined with long‑running underfunding — threatens extended employment, supported employment, early‑intervention and direct‑support professional pay increases.
Lede Multiple providers, family members and statewide disability advocates told the Senate Budget and Appropriations Committee the governor’s FY26 proposal — combined with long‑running underfunding — threatens extended employment, supported employment, early‑intervention and direct‑support professional pay increases.
Nut graf Speakers said the proposed $3,400,000 cut to extended‑employment grant funding and inconsistent distribution of DSP wage increases across state agencies would reduce choices for people with significant disabilities and lead to higher long‑term costs for Medicaid and the state.
Body Tom Bufuto of The Arc of New Jersey and several local executives described two cuts in the proposed budget: eliminated grant funds used for transition planning and a $295,000 cut to psychiatric/behavioral grants for IDD providers. Tom said one program that prepared 7,000 students for adult life was at stake and urged reinstatement.
Providers and family members testified that extended‑employment sites (often called workshops) offer stable, tailored work for people whose disabilities make community‑integrated jobs inappropriate or unsafe. Pathways to Independence, Hudson Community Enterprises and Employment Horizons described the funding gap that historically leaves providers absorbing 20–25% of costs per participant. One speaker said the loss would force program reductions and jeopardize staff and client safety.
Speakers also asked for equity among state agency rates: supported‑employment reimbursements are set at different levels across the Division of Developmental Disabilities (DDD) and the Division of Vocational Rehabilitation Services (DVRS). Advocates asked that supported‑employment rates be aligned and increased to about $80–$84 per hour where appropriate, and that the $18,000,000 allocation for DSP wage increases be preserved and disbursed predictably.
Family testimony A mother of a 39‑year‑old man with severe autism described the lack of entitlement to adult services after age 21 and said finding stable placements is an ongoing crisis. A family member of a child waiting for an out‑of‑home placement described years on waiting lists and urged the Legislature to alleviate backlogs by restoring and expanding funds.
Ending Providers asked the Senate to restore extended‑employment grant funds, align supported‑employment rates across agencies and ensure DSP wage increases are built into rates or released in predictable installments, not as year‑end lump sums.
