Children’s Integrated Services (CIS) coordinates care and service delivery in four key areas – Early Intervention, specialized child care, early childhood and family mental health, and home visiting – to provide better outcomes to children and young families. Recent state investments have not substantially improved the ability of the under-resourced community-based agencies that provide CIS services to retain over-worked staff and meet patient needs. A study conducted by Burns and Associates in 2024 determined the actual costs for CIS providers were 12% higher than the current reimbursement rate. Federal funding of an expanded Special Accommodations Grant (SAG) program has been fully utilized to support the system and providers, but has now been fully expended.

The Alliance supports efforts to secure: 1) an FY27 Budget increase of about $1.8m to allow for full funding of the per member/per month rate of $738 identified by the recent study of the true cost of care; 2) identification of a permanent funding source that will provide at least $3 million in annual funding to the SAG program; and 3) full funding for the development of CIS data management software.

Lead Organization: Vermont Early Childhood Advocacy Alliance

Data and Talking Points

• The actual costs of delivering CIS are at least 12% higher than the current state reimbursement rate

Result: No additional funding secured

Pre-session goal: Secure: 1) an FY27 Budget increase of about $1.8m to allow for full funding of the per member/per month rate of $738 identified by the recent study of the true cost of care; 2) identification of a permanent funding source that will provide at least $3 million in annual funding to the Special Accommodation grant (SAG) program; and  3) full funding for the development of CIS data management software.

This session saw limited discussion of CIS-related issues. The Governor’s Recommended FY27 Budget contained no funding increase for CIS. Given the challenging budgetary environment, the Legislature did not consider including any additional funding for CIS in their FY27 Budget.

The FY27 Budget will continue to provide $300,000 in base funding for SAG. This funding will supplement $2 million in federal grant funds secured through the state’s Preschool Development Grant. CDD officials are still working to determine how that federal funding will be utilized over the full course of the state’s next fiscal year.