New York City's Budget Crisis Hits People with Disabilities
Author: Pavel Kuljuk
Published: 2026/05/07
Publication Type: Data & Statistical Analysis
Category Topic: Statistics - Related Publications
Contents: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This article examines reductions in New York State's fiscal year 2026 budget for the Office for People with Developmental Disabilities (OPWDD) and reviews how those changes intersect with broader economic conditions for disabled New Yorkers. It compares disability prevalence, employment, unemployment, and median earnings in New York City with national averages, presents an OPWDD appropriations table covering fiscal years 2019 through 2027, and outlines coalition advocacy from labor unions representing direct care workers and Disabilities Committee Chairs calling for a 4% cost-of-living adjustment and Article VII language to guarantee wage increases for direct care staff. The information is useful for people with developmental disabilities, their families, direct care workers, advocates, and seniors tracking how state budget decisions affect disability services and provider wages in New York - Disabled World (DW).
- Topic Definition: Office for People with Developmental Disabilities (OPWDD)
The Office for People with Developmental Disabilities (OPWDD) is the New York State agency responsible for coordinating services and supports for individuals with developmental disabilities, including intellectual disabilities, cerebral palsy, autism spectrum disorder, Prader-Willi syndrome, and related neurological conditions. OPWDD oversees community-based residential programs, day services, employment supports, family support services, and clinical care, and it contracts with non-profit provider agencies that employ direct care workers across the state. Annual appropriations approved through the New York State budget determine the agency's operating capacity, the compensation it can support for direct care staff, and the scope of services available to New Yorkers with developmental disabilities and their families.
Introduction
New York State Budget Cuts OPWDD Disability Funding
For the first time since 2019, funding for the Office for People with Developmental Disabilities (OPWDD) has been significantly cut. Available FY 2026 amounts to only $6,260,000. A year earlier it was almost 1 billion more!
Main Content
New York City isn't the most popular place to live for people with disabilities. The U.S. average is 28.7% of the population with disabilities. However, in New York City, only 11% of the population is disabled. Statewide, the figure is 22.8%. The low number of people with disabilities in New York City is due to economic factors. In 2023, the U.S. average was 24.2% of people with disabilities living below the poverty line. However, in New York State, the figure was 28.7%.
One of the reasons for the high poverty rate is the result of ineffective labor market policies. In New York City, the proportion of employed people with disabilities is consistently lower than the national average. According to the latest data for 2022, these figures were 34.7% and 26.1%, respectively. Interestingly, the proportion of employed people with disabilities is increasing nationally, while in New York City, it is decreasing. Unemployment among people with disabilities in New York City is also consistently higher than unemployment among people with disabilities in the United States. In 2022, both figures were 11.9% and 8.2%. Finally, the average wages of people with disabilities in New York City are unsustainable. Judge for yourself. In 2023, the median household expenditure in the New York Metropolitan Area was $91,520. During this same time, the median earnings of people with disabilities in New York City was $36,300. And the median household income of people with disabilities was $32,100.
In the current situation, people with disabilities survive primarily on budget support. But in 2026, disability support will be dealt a serious blow. New York State is in a budget crisis. Although the budget for the 2026 fiscal year is supposed to be adopted by April 1, it hasn't been passed even by May 1. Legislators can't decide how much money to spend and on what. Expenses are high, but revenues are low! The main disputes are over allocating funds for the state's car insurance laws, raising taxes on the wealthy, school aid, Tier 6 pension reform, and the creation of a 25-foot protest buffer around places of worship.
In the current situation, New York State Governor Kathy Hochul, a Democrat, is significantly cutting spending on disability support. For the first time since 2019, funding for the Office for People with Developmental Disabilities (OPWDD) has been significantly cut. See the table for data. Initially, the Recommended FY 2026 Appropriations for OPWDD was $10,116,918,000. However, the amount was ultimately reduced by almost a third. Available FY 2026 amounts to only $6,260,000. A year earlier it was almost 1 billion more!
| Available FY 2019 | Appropriations Recommended FY 2020 | Change From FY 2019 |
|---|---|---|
| 4,699,874,000 | 4,821,694,000 | 121,820,000 |
| Available FY 2020 | Appropriations Recommended FY 2021 | Change From FY 2020 |
| 4,830,734,000 | 5,002,031,000 | 171,297,000 |
| Available FY 2021 | Appropriations Recommended FY 2022 | Change From FY 2021 |
| 5,002,471,000 | 4,942,092,000 | (60,379,000)Appropriations Recommended FY 2020 |
| Available FY 2022 | Appropriations Recommended FY 2023 | Change From FY 2022 |
| 5,045,124,000 | 7,229,171,000 | 2,184,047,000 |
| Available FY 2023 | Appropriations Recommended FY 2024 | Change From FY 2023 |
| 7,233,401,000 | 7,422,228,000 | 188,827,000 |
| Available FY 2024 | Appropriations Recommended FY 2025 | Change From FY 2024 |
| 7,469,517,000 | 7,631,225,000 | 161,708,000 |
| Available FY 2025 | Appropriations Recommended FY 2026 | Change From FY 2025 |
| 7,674,863,000 | 10,116,918,000 | 2,442,055,000 |
| Available FY 2026 | Appropriations Recommended FY 2027 | Change From FY 2026 |
| 6,260,000 | 9,760,000 | 3,500,000 |
Legislators and community organizations are trying to change the budget to benefit people with disabilities. In particular, labor unions representing direct care workers employed by non-profit agencies that contract with OPWDD and Disabilities Committee Chairs have joined forces to achieve this. The coalition is calling on lawmakers to include both a 4% cost-of-living adjustment (COLA) and Article VII language that guarantees funding is used to raise wages for direct care workers. The Governor's Executive Budget, which only allocated a 1.7% targeted inflationary increase - an amount that unions and their supporters say is too low.
Whether these efforts will be successful and what the final budget will be remains unclear. But it's clear that the lives of people with disabilities in New York City need to be improved. Increasing funding alone won't solve all the problems. A change in tactics and strategy is needed. This will be discussed in future articles.
Insights, Analysis, and Developments
Editorial Note: State budget cycles often determine the practical reality of disability services more directly than legislation itself, and the FY 2026 OPWDD figures presented here illustrate how appropriation shifts translate into consequences for direct care workers, service providers, and the people who rely on them. Whether the proposed 4% cost-of-living adjustment, Article VII wage protections, or restored appropriation levels reach the enacted budget remains an open question, but the underlying employment, wage, and poverty data for New Yorkers with disabilities suggests that funding decisions alone will not close the longstanding gaps in economic security that continue to shape daily life for this population - Disabled World (DW).Author Credentials: Pavel Kuljuk's articles and poems are published in Australia, North America, and Europe. In recent years, he has been constantly collaborating with Australian Rural & Regional News (Australia), Red Hook Daily Catch and OpEd News (USA), and Disabled World (US/Canada). Kuliuk's individual publications are in Forbes (Kazakhstan), Rural 21 (Germany), London Loves Business (UK), Karrep (India), RealClearDefense (RCD), Change Links, Daily Caller (USA), and many others. Explore Pavels' complete biography for comprehensive insights into his background, expertise, and accomplishments.