LFO: $75 million set aside for home‑care bargaining; legislature will need more to cover roll‑up costs

Gregory Jolivette of the Legislative Fiscal Office told the Joint Subcommittee on Human Services that a special purpose appropriation of $75,000,000 was set aside to cover costs tied to a newly negotiated non‑state employee collective bargaining agreement for home‑care and personal‑support workers. "This covers 14,000 home care workers, about 12,000 personal support workers," Jolivette said, and the contract raises base pay from $20 to $23 an hour by 2027.

The increase phases in a $1.25 hourly raise on Jan. 1, 2026 and a $1.75 hourly raise on Jan. 1, 2027, he said. LFO estimates the current biennium cost at $75,000,000 general fund but warned the Legislature will be required to add about $72,400,000 general fund in 2027–29 to fund the roll‑up of wages and related costs.

Agency staff answered clarifying questions about scope. LFO said the 14,000 home‑care workers and 12,000 personal support workers collectively serve an estimated 24,000 Oregonians monthly. Amber Padilla, chief operations officer for the Office of Developmental Disability Services, and Matt Rapoza, a long‑term services and supports administrator, were present to respond to technical questions.

Co‑chair Valderrama moved that the committee approve the LFO recommendation to acknowledge receipt of the report and prepare budget adjustments; the committee registered no objections and the co‑chairs said they would carry the recommendation to full Ways and Means. The motion records the committee’s acknowledgment; appropriation and roll‑up decisions will be addressed in the budget reconciliation process during the 2026 legislative session.

Next steps: LFO will draft the budget reconciliation language and the co‑chairs will work with the full Ways and Means committee to finalize appropriation timing and amounts.