Nonprofit providers press Connecticut Appropriations Committee for $155 million to stabilize services and pay

Hundreds of nonprofit leaders, staff and family members urged Connecticut's Appropriations Committee on Feb. 26 to add $155,000,000 to the governor's FY27 budget revision to shore up human‑services providers and raise pay for direct support professionals.

John Karl Casa, president and CEO of the Connecticut Community Nonprofit Alliance, told the committee the request reflects a system under strain: “We're asking that you increase funding by a $155,000,000 beyond that already in the biannual budget for 2027,” he said, noting the state's multi‑billion dollar surplus and the long decline in nonprofits' purchasing power.

Why it matters: agencies that deliver developmental, behavioral‑health and homelessness services say reimbursement rates have not kept pace with inflation, health‑care and transportation costs. Multiple witnesses said that staffing shortages cause service cancellations, growing wait lists and increased use of higher‑cost emergency settings.

Providers described chronic workforce pressures. Kevin Zingler, president and CEO of Mark Inc., said low reimbursement forces agencies to compete with retail and healthcare employers offering higher wages and benefits. “Stabilization is not the same as sustainability,” Zingler said, asking the panel to prioritize workforce stabilization and room‑and‑board rate adequacy so providers can maintain safe, person‑centered services.

Family members and direct care workers gave the committee the practical consequences. A parent, Carrie Beeman, said nonprofits provide residential support to thousands and that cancellations for lack of staff leave families without essential care. A direct support worker described multiple jobs and near‑poverty compensation.

Several provider executives asked that any new appropriations treat day and employment supports equitably with residential services. Multiple witnesses said the most recent increases favored residential programs while day and employment services—which many agencies share staff across—received smaller COLAs, creating internal compression and recruitment challenges.

Financial snapshot and uses: witnesses said an additional $155 million would be used to raise wages toward a livable rate, reduce vacancy and turnover, reopen program capacity that has been closed for lack of staff, and fund capital projects through the nonprofit support bond program. Providers also urged indexing future rates to inflation to avoid recurring shortfalls.

What the committee heard on implementation: speakers emphasized transparent, targeted rate increases that allow agencies to pay competitive wages, fund benefits, and cover non‑payroll costs such as transportation and utilities. Several suggested using RFPs to distribute capital grants and recommended continuing a bipartisan approach to long‑term funding.

Next steps: committee members did not vote during the hearing. Witnesses said they will submit written budget language and asked lawmakers to act while the state's fiscal position remains strong.