Advocates and providers urge restoration of Developmental Disabilities funding as DLS flags shortfalls

Chair Emily Shetty convened the Health and Social Services Subcommittee hearing on the Developmental Disabilities Administration budget with Department of Legislative Services analyst Victoria Martinez presenting DLS’s review and recommendations. Martinez told the panel that “the fiscal 20 26 allowance decreases by $190,000,000 or 6.6% for a total of $2,700,000,000,” and detailed growth in community‑based spending that has repeatedly exceeded legislative appropriations.

The nut graf: The hearing centered on whether proposed fiscal 2026 cost‑containment measures and rate changes—most notably elimination of a geographic rate differential, changes to dedicated (1‑to‑1) hours policy, and reductions in self‑directed services compensation—would destabilize providers and force some Marylanders into institutional or crisis care. DLS and the Maryland Department of Health’s DDA exchanged technical and timing details about waiver amendments and reporting, while dozens of providers, direct support professionals and family members gave testimony about the real‑world consequences they say would follow the cuts.

DLS presentation and key fiscal findings

Victoria Martinez of DLS summarized the DDA analysis. DLS reported nearly $4,000 individuals on the community services waiting list in fiscal 2024, substantial enrollment in three DDA waivers, and the LTSS transition’s contribution to unusually rapid spending growth in 2023–24. Martinez said DDA provided $457,000,000 in bridge payments to providers and recouped about $346,000,000 of that amount. DLS recommended several restrictions and reporting requirements, including holding funds until the agency submits a fiscal year closeout report and monthly spending data tied to the monthly/quarterly forecasts.

DLS identified three cost‑containment items that are contingent on a waiver amendment and CMS approval (geographic differential elimination, a cap on individual and family‑directed goods and services, and…