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JBC approves steep child community‑connector rate cuts and unit caps despite family‑impact concerns
Summary
The committee approved a two‑step rate reduction (15% then 23%) and a suite of utilization caps for the Community Connector child HCBS service after staff argued explosive growth is unsustainable. Several members objected, warning the cuts would disproportionately hit families and parents who provide paid care.
The JBC approved a package of supplemental actions targeting the child Community Connector HCBS service after staff presented data showing dramatic utilization and cost growth.
Tom Dermody explained the department’s request for multiple cost‑control measures: a 15% initial rate reduction (S6.12), an additional 23% child rate alignment (S6.33), and a soft cap on annual units (S6.34), together producing substantial FY26‑27 reductions. Staff tied these actions to the governor’s executive order and showed multi‑year increases in both per‑member rates and total expenditures.
Supporters said the combination of rate reduction and utilization caps is necessary to bend an unsustainable cost curve. "We have to make cuts in this budget," said the Vice Chair while acknowledging unequal burdens and urging careful implementation. Opponents — including Representative Taggart, Senator Mobley and Senator Kirkmeyer — warned these measures would destabilize families who have structured their lives around parent caregiving, disproportionately affect rural providers, and could reduce access for medically complex children. Representative Taggart said he was “really uncomfortable with dropping this rate so much on the parents' side,” noting parents who provide services may have sacrificed work or income.
The committee voted to approve S6.12 (15%) and S6.33 (23%) with recorded objections; staff recommended, and the committee accepted, forecast adjustments for unit caps but denied many associated new FTE requests. Members demanded follow‑up data: the share of cost growth attributable to parents vs third‑party providers, distribution of over‑cap hours, and the geographic impacts of provider shortages. The JBC will revisit impacts and possible mitigations during figure setting.
