By Mike Alvaro | March 24, 2026
With just days remaining before New York’s April 1 budget deadline, state leaders face a clear choice. They can build on recent progress in stabilizing services for people with intellectual and developmental disabilities (I/DD), or risk losing ground.
The most important step they can take is straightforward. Adopt a full 4% Targeted Inflationary Increase (TII) as proposed by the New York State Senate and Assembly. The TII is our lifeline. It funds not only wages for Direct Support Professionals (DSPs), but also the rising costs of their benefits. It is also the agencies who employ DSP’s, serve New Yorkers with I/DD, and cover the basic operating costs for critical items such as housing, food, transportation, insurance, job training programs, home health supplies, and more. Without a sufficient inflationary increase, providers are being asked to absorb costs they cannot sustain.
The 1.7% TII proposed in the Executive Budget simply does not reflect economic reality. Providers – just like all members of the community – have faced significantly higher cost increases over the past year, driven by inflation and external pressures. Since 2025, the cost of meat and eggs has risen by 13%, non-alcoholic beverages by 5%, health care premiums by 6%, personal care products by 5%, and car insurance by 6%. Importantly, the population of those with I/DD in New York State grew by 6% from 2022 to 2025. We cannot absorb increased costs and serve more people without a significant TII. A full TII is the single most important action the State can take this year to prevent that outcome.
It is vital that the TII is not restricted to any specific category of spending. We represent over 300 agencies across the state. Every agency is facing increases, but the sources of those are not equal. The costs of insurance, food, utilities, staff, and benefits vary by region. Agencies need the flexibility to fill their specific gaps and invest in spending that meets the needs of their communities.
After years of chronic underinvestment, recent State funding has helped reduce staff vacancy rates, improve retention, and increase wages for DSPs. Still, those gains remain fragile as prices to provide services surge affecting both our agencies and our workforce. As the essential workforce supporting New Yorkers with I/DD, their stability is critical.
Service providers are also a major economic engine in New York, generating $15.6 billion in total economic output and supporting nearly 194,186 full-time jobs as of 2023 New York State Industries for the Disabled, Inc. (NYSID) data. These agencies, with $9.0 billion in revenues, contribute $2.4 billion in state and federal taxes while providing critical community-based services.
In addition to strengthening the TII, lawmakers should build on the initiatives included in the Executive Budget that support frontline care staff. Governor Hochul’s plan to expand the Child and Dependent Care Credit is a meaningful and targeted step. Many Direct Support Professionals are working parents and caregivers themselves, and the high cost of care remains a significant barrier to staying in these roles. This approach recognizes that reality and provides practical relief that will support recruitment and retention, helping ensure that the gains achieved in recent years are sustained.
With the deadline approaching, the path forward is clear. The State should enact an unrestricted 4% Targeted Inflationary Increase to protect the care system, and build on the initiatives that benefit our careforce.
New York has already demonstrated that sustained investment delivers results. Staff vacancy rates have declined, wages have increased, and services have become more stable. The question now is whether the State will reinforce that progress or risk reversing it.
A full 4% TII is where that commitment begins.
Mike Alvaro is the President/CEO of CP State and also serves as the President of New York Disability Advocates (NYDA).