Dear Adult Family Home Providers,

As you know, we have been in collective bargaining negotiations with the State since May. At the last chapter meeting with you all, I shared the news from the state’s economic revenue forecast: Washington is facing a budget deficit. Put plainly, the State has said it does not have the revenue needed to meet all of its current obligations.

A few months ago, the Governor directed agencies to identify potential program cuts, with particular attention to programs that began in 2019 or later. Then, just two days ago, the Governor issued another letter warning of significant shortfalls in both the operating and transportation budgets for the 2027–29 biennium.

Agencies have been instructed not to assume additional funding will be available. As a result, the State is not currently proposing any increase to the Adult Family Home base daily rate for 2027 or 2028. In other words, providers are being asked to operate under the same reimbursement structure despite rising costs, workforce pressures, and the growing needs of the people we serve.

You may also have seen other unionized organizations raising similar concerns about the State’s budget position. The State points to inflation, population growth, federal funding reductions, and economic uncertainty. But Adult Family Home providers are experiencing those same pressures every day.

The cost of food, utilities, insurance, transportation, supplies, repairs, and wages continues to rise. At the same time, providers face workforce shortages and growing demand for long-term care. Providers cannot absorb these costs indefinitely.

This is especially frustrating because we know the facts: Adult Family Homes save the State money.

AFHs provide high-quality, community-based care in the least restrictive setting possible. If the people we support were moved to skilled nursing facilities or hospitals, the cost to the State would be substantially higher. Yet providers continue to deliver essential care at rates that do not adequately support the wages necessary to recruit and retain qualified caregivers.

The recent Washington Supreme Court decision in Bolina v. AssureCare Adult Home, LLC has added another serious financial challenge. The Court held that the State’s exemption from minimum-wage and overtime protections for live-in AFH caregivers is unconstitutional as applied to those workers.adultfamilyhomecouncil+1

We support fair pay and protections for caregivers. However, the ruling increases provider labor costs, including the cost of around-the-clock coverage and all compensable

caregiving hours, without corresponding Medicaid reimbursement. The State cannot impose increased compensation obligations while declining to fund the actual cost of care.

We have made this case in bargaining. We have explained the rising costs, workforce crisis, and the critical value AFHs bring to Washington’s long-term care system. The State’s current position does not adequately recognize these realities.

As a result, we will be taking this matter to arbitration. We will present the evidence, advocate strongly for providers and the people you serve, and ask a neutral arbitrator to decide.

This is not where we wanted to be, but feel we are left with no choice. Your work matters. Your voice matters. And together, we will continue to make clear that Washington cannot afford to overlook the value of Adult Family Homes.