Developmental Pathways tells Arapahoe County commissioners mill levy helps 8,811 residents as agency warns of Medicaid cuts

A Developmental Pathways presenter warned Arapahoe County commissioners that state and federal changes to Medicaid funding could put local long-term supports at risk while detailing how local mill-levy dollars are being used to stabilize services.

The presenter told the board the agency’s total budget is about $79,700,000 and that “a little less than a third of that is total revenue from Arapahoe and Douglas County mill,” and that Arapahoe County’s FY25 mill-levy investment totaled $15,800,000, directly supporting 8,811 residents with intellectual and developmental disabilities. The presenter said last year’s locally served total was 6,254, underscoring a recent increase in county caseload.

Why it matters: Commissioners were shown how mill-levy funding is being used for direct assistance and system coordination, and were asked to consider using reserves and targeted grants to protect essential services as federal and state revenues shift.

Developmental Pathways described three funding layers: state and federal dollars that fund early intervention and case management; a central case-management agency that coordinates services across the service area; and a local, flexible mill-levy layer that fills gaps. The presenter enumerated local uses: respite, adaptive equipment, behavioral services, provider stabilization and transition/coordination supports. The agency said it spent $7,500,000 on direct local IDD programming (with $1,800,000 for unmet needs and scholarships and $2,900,000 for provider grants and stabilization) and invested $4,500,000 in wraparound care coordination to reduce enrollment delays, stabilize placements and prevent crisis escalation.

On federal and state pressure: the presenter said Colorado’s Medicaid budget had grown from roughly $9 billion to nearly $21 billion over eight years and warned that a federal change known as HR 1 could cut an estimated $5,000,000,000 in federal Medicaid revenues to Colorado. “If we do not do something soon, the state of Colorado is literally going to go bankrupt,” the presenter said, framing the agency’s strategy to retain some reserves as a deliberate buffer against those projected shocks. The presenter also emphasized a legal limitation: mill-levy dollars can be used only for people with an IDD diagnosis or delay.

Commissioners asked about the size and purpose of Developmental Pathways’ reserves and how long the agency expects to draw down fund balance. Commissioner Jessica Campbell asked about the organization’s goal for reserves and whether the drawdown would be temporary or a long-term strategy. DP staff said they are developing a multiyear strategy, will track the March 11 state revenue forecast and other legislative actions, and will report back with more detailed plans and data to show where unmet and undermet needs are growing.

The presentation also covered transition supports for youth aging into adult services: resource coordinators who provide phone-based navigation and referrals; outreach materials; and an upcoming data-sharing MOU that DP said will let county and DP teams view the same client information to speed case coordination. DP staff said the MOU is in its final stages.

The board was invited to participate in March events (Developmental Disability Awareness Month) and in a May 21 mill-levy planning meeting when DP will present proposals for increased community spending for fiscal year 2027.

Closing and next steps: DP committed to regular updates to the commissioners as state budget details become concrete and as the agency refines a multiyear financial strategy for reserve use and targeted investments.