< Back to news

Funding Residential Programs for Quality Care: New Jersey DHS Budget Testimony

VOA-NNJ calls for a comprehensive review of New Jersey residential program reimbursement rates and a model budget that reflects the true cost of services for adults with behavioral health challenges, as well as investments in staff wages and training to help residential providers attract and retain qualified staff.

November 9, 2026—VOA-NNJ delivered the following testimony to the New Jersey Department of Human Services Budget Listening Session:

Introduction and Thanks: My name is Taysha Milagros Clark-Reid, and I am the Public Policy Director for Volunteers of America-Northern New Jersey (VOA-NNJ). Thank you to the Department of Human Services for the opportunity to submit testimony.

About Us: Volunteers of America-Northern New Jersey (VOA-NNJ) provides innovative housing, health, and wealth-building services to youth and adults who are experiencing, or at risk of, homelessness. Through programs in Middlesex, Union, Hudson, Bergen, and Passaic counties, we help more than 400 people achieve housing stability each year, with a focus on behavioral health services for adults and independent living services for youth working towards self-sufficiency.

Contextual Overview: It is often stated that our budget reflects our values and commitments. As we approach the FY28 budget cycle, I hope that this Department, as a central part of our safety net, is sustainably resourced to scale services. While staff at agencies like DHS have been remarkably adept at stretching limited resources, this approach is neither tenable nor sustainable.

Investing in agencies like DHS is essential to strengthening our social safety net, especially as we become increasingly reliant on state partners and agencies to address these needs in the face of federal cuts and uncertainty. We recognize the challenges that these changes pose, particularly in the FY28 budget cycle, and appreciate the Department’s commitment to serving its constituents.

FY28 Budget Needs: While we understand and respect the Department’s funding constraints, we respectfully request a revision of rates for residential programs. VOA-NNJ operates four A+, CARF-accredited group homes for adults discharged from state psychiatric hospitals. Per-person reimbursement rates are meant to cover fixed programmatic costs and services to residents, including meals, utilities, transportation, and staffing; however, these low rates are insufficient to fully cover costs, posing a challenge to sustaining these homes. To address this, we recommend a comprehensive rate review and creation of a model budget for residential programs indexed to rising costs, including groceries, house supplies, utilities, and insurance.

The current fee-for-service rate structure also impacts staff wages, hampering our ability to attract and retain quality talent. This has contributed to significant staff turnover across our residential portfolio, with our residential vacancies comprising 19% of a 20% overall staff vacancy rate. Staff wages should not perpetuate the very poverty conditions and quality of life challenges that the Department seeks to address.

To support staff in successfully meeting the expectations of the role, we would also welcome Departmental investments in trainings for residential staff. The education and technical foundation that was created for CSS would be a welcome addition to residential programs.

Closing: Investments in our State agencies are necessary to sustain care for New Jerseyans amidst federal changes. State investments in our social safety nets, including the Department of Human Services, would allow the Department to address systemic programmatic challenges, including rates, staffing, and training. We are grateful for the opportunity to testify and look forward to working with this body to expand care and services for some of our most vulnerable constituencies.