Oregon ODDS outlines $6.37 billion budget, plans to refocus high-cost SACU program

At an April 2025 informational hearing of the joint interim subcommittee on human services, Dana Hittle, interim director of the Office of Developmental Disability Services (ODDS) at the Oregon Department of Human Services, presented an overview of ODDS programs, caseload growth and the governor’s recommended budget for the 2025–27 biennium.

Hittle said the ODDS portion of the department’s budget in the governor’s recommended budget is about $6.37 billion, funded roughly 63% with federal Medicaid match and 37% with state general fund. She told the committee the increase from the 2023–25 legislatively approved budget is driven primarily by caseload growth and higher average cost per case, including greater utilization of in‑home services and updated provider rate models.

The presentation included statewide program and enrollment figures: ODDS serves about 38,261 individuals (12,764 children and 25,497 adults) and reported an 80.5% enrollment increase since the implementation of the Community First Choice “K plan” in July 2013. Hittle said the agency currently operates six 1915(c) Home and Community Based Services waivers and the statewide 1915(k) Community First Choice authority, explaining that the K plan is an entitlement-like state plan option that requires statewide provision without limiting by age or severity of disability.

Hittle described the Stabilization and Crisis Unit (SACU) as the highest per‑case cost in ODDS — about $105,787 per person per month — and said SACU had a resident count of 79 as of January 2025. Under direction in the governor’s recommended budget, the Human Services Group (HSG) is drafting a plan to refocus SACU toward its original purpose as a short‑term stabilization program that supports transitions back to community settings. HSG told the committee it has engaged more than 200 interested parties through interviews and focus groups; Hittle said HSG will draft recommendations in March–April for review by the governor and the Legislature and that earliest implementation of changes could begin in July 2026.

On staffing and positions, Hittle said the governor’s recommended budget funds about 1,048 positions and 660.2 full‑time equivalent (FTE) positions; she said the recommended decrease in FTE (about 32% versus the 2023–25 approved budget) is driven largely by a proposed partial closure or refocusing of SACU and cited a reduction of about 372.42 FTE tied to that proposal. Hittle emphasized the department’s stated commitment to avoid layoffs, saying staff would be reassigned where possible and that changes would follow collective bargaining terms.

Committee members pressed Hittle on the timing and funding for transitions out of SACU. Senator Gelser Blouin asked whether community providers would have sufficient funding and capacity to meet the needs of people leaving SACU; Hittle said the department will bring provider recommendations back to the Legislature and explore Medicaid authorities and rate flexibilities (including 1915(c) and 1915(k)) to support any required home modifications, staffing or vehicle needs. Hittle also stated unequivocally that the department is not seeking to convert SACU into intermediate care facilities for individuals with intellectual disabilities (ICF/IID) and that any continued operation would remain under HCBS authorities.

Hittle walked the committee through program cost and caseload breakdowns: adult residential services and adult in‑home services are the largest budget drivers (roughly $2.2 billion and $2.0 billion, respectively), children’s in‑home services and children’s residential services account for smaller portions, and case management and program design together make up roughly 2% of the ODDS budget. She said ODDS contracts with 25 community developmental disability programs (CDDPs) and 14 brokerages, and that about 36,000 personal support workers and direct support professionals are hired by families and providers statewide. Hittle said ODDS is procuring a statewide case management IT system expected to go live in early 2026.

The K plan and waiver rules were described in plain terms: the k plan (1915(k)) requires statewide eligibility and cannot be targeted by age or disability type, while 1915(c) waivers are limited in capacity and allow states flexibility to define eligibility groups, services and permissible provider types. Hittle noted that certain children’s model waivers are federally capped at 200 participants. She also said federal reporting and renewal cycles (five‑year waivers and 18‑month reporting lags) create timing constraints for forecasting and program planning.

Members asked about wage and rate work. Hittle said ODDS will return with a detailed rate and wage study presentation; she previewed a recommended rate model that, she said, could increase overall provider payments by an estimated $1.3 billion annually and that additional briefings are planned.

Hittle highlighted operational details and program safeguards: HCBS setting rules require residency agreements, privacy of sleeping units, resident control over schedules and visitors, and that any modifications to those rights must be based on an assessed need, documented in an individual support plan and reviewed annually.

The presentation also summarized recent policy and implementation work: closing of intermediate facilities in Oregon (Fairview Training Center and Eastern Oregon Training Center), implementation of paid‑parent caregiver authority under the children’s extraordinary needs program, and work with the Oregon Health Authority to implement behavioral health benefits for youth under 21. Hittle noted the department is monitoring federal policy uncertainty (FMAP changes, the phase out of the public health emergency enhanced FMAP, and the ending of ARPA HCBS funds) and the potential statewide financial impacts.

No formal committee votes were recorded during the hearing. Hittle offered to return with follow‑up budget details from ODHS budget staff and additional briefings on the rate study and waiver implementation.

Ending: Hittle closed by offering to provide more information and thanking the committee; the co‑chairs adjourned the informational hearing.