DDSN requests $9.28 million for non‑Medicaid placements and $17.5 million in capital to open new residential beds

The Department of Disabilities and Special Needs (DDSN) told a Senate Finance subcommittee on March 19 that it needs both recurring and nonrecurring state funds to place people on its residential services wait list and to encourage provider capacity.

DDSN Director Constance Holloway said the agency’s first priority is $9,275,380 in recurring state funds to serve 48 individuals whose needs are not reimbursable through Medicaid. Holloway said Medicaid cannot cover some placements — for example, people judicially admitted after competency determinations or children who need intensive out‑of‑home treatment to reunify with family — and the state must use non‑Medicaid dollars in those cases.

Holloway said DDSN currently has 281 people on the residential service wait list with an average wait time of 12.6 months; 19 people on the list have waited more than 12 months. She also said 24 people are being served in institutional respite settings intended to be short term; however, placement delays have prolonged many stays. “On average, we’ll probably experience an individual staying in our respite units for 6 months, with the average wait time outside of those respite units being 12 months,” Holloway said.

The department’s second priority is a $17,500,000 nonrecurring capital request to fund providers to open new residential settings — money for acquisition, construction, furnishings and initial infrastructure. Holloway said the state has used similar capital grants in the past to spur provider development and that solicitations are preceded by outreach to gauge provider interest.

Committee members asked whether providers have capacity or interest to expand. Holloway said DDSN holds regular provider meetings and canvasses boards and private providers before issuing solicitations; interest varies regionally and some providers cite staffing or funding constraints as barriers.

DDSN’s packet also included two requests tied to Greenwood Genetics Center: a $500,000 recurring item to expand genomic testing for adults and underfunded conditions and a $1,000,000 nonrecurring item to support Greenwood Genetics’ expansion and sustainment of genomic testing and technologies. Holloway said Greenwood is the federal/state-designated genetics center with statewide reach and that DDSN supports the requests to better serve individuals with autism and related conditions.

Holloway described the department’s capital approach: grants to providers would include reversion provisions so state funds revert if a provider later stops using the property for the intended purpose. She also noted a recent HHS request for a thousand Medicaid waiver slots; even if waiver slots are awarded, additional physical settings will be needed for placements.

The subcommittee did not vote on funding at the hearing. Holloway said the department will provide additional information and welcomed questions from members, and committee members asked for follow-up on provider interest, capacity and the timeline for capital solicitations.