S T A T E O F N E W Y O R K
________________________________________________________________________
4037
2025-2026 Regular Sessions
I N A S S E M B L Y
January 30, 2025
___________
Introduced by M. of A. HEVESI -- read once and referred to the Committee
on Social Services
AN ACT relating to programs that are eligible for a cost of living
adjustment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 1. Subject to available appropriations and approval of the
director of the budget, the commissioners of the office of mental
health, office for people with developmental disabilities, office of
addiction services and supports, office of temporary and disability
assistance, office of children and family services, the state office for
the aging, and the department of health (hereinafter "the commission-
ers") shall establish a state fiscal year 2026-2027 cost of living
adjustment (COLA), effective April 1, 2026, for projecting for the
effects of inflation upon rates of payments, contracts, or any other
form of reimbursement for the programs and services listed in subdivi-
sion five of this section. The COLA established herein shall be applied
to the appropriate portion of reimbursable costs or contract amounts.
Where appropriate, transfers to the department of health (DOH) shall be
made as reimbursement for the state share of medical assistance.
2. Notwithstanding any inconsistent provision of law, subject to the
approval of the director of the budget and available appropriations
therefore, for the period of April 1, 2026 through March 31, 2027, the
commissioners shall provide funding to support a seven and eight-tenths
percent (7.8%) cost of living adjustment under this section for all
eligible programs and services as determined pursuant to subdivision
five of this section.
3. Notwithstanding any inconsistent provision of law, and as approved
by the director of the budget, the 7.8 percent cost of living adjustment
(COLA) established herein shall be inclusive of all other cost of living
type increases, inflation factors, or trend factors that are newly
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07257-02-5
A. 4037 2
applied effective April 1, 2026. Except for the 7.8 percent cost of
living adjustment (COLA) established herein, for the period commencing
on April 1, 2026 and ending March 31, 2027 the commissioners shall not
apply any other new cost of living adjustments for the purpose of estab-
lishing rates of payments, contracts or any other form of reimbursement.
The phrase "all other cost of living type increases, inflation factors,
or trend factors" as defined in this subdivision shall not include
payments made pursuant to the American Rescue Plan Act or other federal
relief programs related to the Coronavirus Disease 2019 (COVID-19)
pandemic public health emergency. This subdivision shall not prevent the
office of children and family services from applying additional trend
factors or staff retention factors to eligible programs and services
under paragraph (v) of subdivision five of this section.
4. Each local government unit or direct contract provider receiving
the cost of living adjustment established herein shall use such funding
to provide a targeted salary increase of at least one and seven-tenths
percent (1.7%) to eligible individuals in accordance with subdivision
six of this section. Notwithstanding any inconsistent provision of law,
the commissioners shall develop guidelines for local government units
and direct contract providers on implementation of such targeted salary
increase.
5. Eligible programs and services. (i) Programs and services funded,
licensed, or certified by the office of mental health (OMH) eligible for
the cost of living adjustment established herein, pending federal
approval where applicable, include: office of mental health licensed
outpatient programs, pursuant to parts 587 and 599 of title 14 CRR-NY of
the office of mental health regulations including clinic, continuing day
treatment, day treatment, intensive outpatient programs and partial
hospitalization; outreach; crisis residence; crisis stabilization,
crisis/respite beds; mobile crisis, part 590 comprehensive psychiatric
emergency program services; crisis intervention; home based crisis
intervention; family care; supported single room occupancy; supported
housing; supported housing community services; treatment congregate;
supported congregate; community residence - children and youth;
treatment/apartment; supported apartment; community residence single
room occupancy; on-site rehabilitation; employment programs; recreation;
respite care; transportation; psychosocial club; assertive community
treatment; case management; care coordination, including health home
plus services; local government unit administration; monitoring and
evaluation; children and youth vocational services; single point of
access; school-based mental health program; family support children and
youth; advocacy/support services; drop in centers; recovery centers;
transition management services; bridger; home and community based waiver
services; behavioral health waiver services authorized pursuant to the
section 1115 MRT waiver; self-help programs; consumer service dollars;
conference of local mental hygiene directors; multicultural initiative;
ongoing integrated supported employment services; supported education;
mentally ill/chemical abuse (MICA) network; personalized recovery
oriented services; children and family treatment and support services;
residential treatment facilities operating pursuant to part 584 of title
14-NYCRR; geriatric demonstration programs; community-based mental
health family treatment and support; coordinated children's service
initiative; homeless services; and promises zone.
(ii) Programs and services funded, licensed, or certified by the
office for people with developmental disabilities (OPWDD) eligible for
the cost of living adjustment established herein, pending federal
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approval where applicable, include: local/unified services; chapter 620
services; voluntary operated community residential services; article 16
clinics; day treatment services; family support services; 100% day
training; epilepsy services; traumatic brain injury services; hepatitis
B services; independent practitioner services for individuals with
intellectual and/or developmental disabilities; crisis services for
individuals with intellectual and/or developmental disabilities; family
care residential habilitation; supervised residential habilitation;
supportive residential habilitation; respite; day habilitation; prevoca-
tional services; supported employment; community habilitation; interme-
diate care facility day and residential services; specialty hospital;
pathways to employment; intensive behavioral services; community transi-
tion services; family education and training; fiscal intermediary;
support broker; and personal resource accounts.
(iii) Programs and services funded, licensed, or certified by the
office of addiction services and supports (OASAS) eligible for the cost
of living adjustment established herein, pending federal approval where
applicable, include: medically supervised withdrawal services - residen-
tial; medically supervised withdrawal services - outpatient; medically
managed detoxification; medically monitored withdrawal; inpatient reha-
bilitation services; outpatient opioid treatment; residential opioid
treatment; KEEP units outpatient; residential opioid treatment to absti-
nence; problem gambling treatment; medically supervised outpatient;
outpatient rehabilitation; specialized services substance abuse
programs; home and community based waiver services pursuant to subdivi-
sion 9 of section 366 of the social services law; children and family
treatment and support services; continuum of care rental assistance case
management; NY/NY III post-treatment housing; NY/NY III housing for
persons at risk for homelessness; permanent supported housing; youth
clubhouse; recovery community centers; recovery community organizing
initiative; residential rehabilitation services for youth (RRSY); inten-
sive residential; community residential; supportive living; residential
services; job placement initiative; case management; family support
navigator; local government unit administration; peer engagement; voca-
tional rehabilitation; support services; HIV early intervention
services; dual diagnosis coordinator; problem gambling resource centers;
problem gambling prevention; prevention resource centers; primary
prevention services; other prevention services; and community services.
(iv) Programs and services funded, licensed, or certified by the
office of temporary and disability assistance (OTDA) eligible for the
cost of living adjustment established herein, pending federal approval
where applicable, include: nutrition outreach and education program
(NOEP).
(v) Programs and services funded, licensed, or certified by the office
of children and family services (OCFS) eligible for the cost of living
adjustment established herein, pending federal approval where applica-
ble, include: programs for which the office of children and family
services establishes maximum state aid rates pursuant to section 398-a
of the social services law and section 4003 of the education law; emer-
gency foster homes; foster family boarding homes and therapeutic foster
homes; supervised settings as defined by subdivision twenty-two of
section 371 of the social services law; adoptive parents receiving
adoption subsidy pursuant to section 453 of the social services law; and
congregate and scattered supportive housing programs and supportive
services provided under the NY/NY III supportive housing agreement to
young adults leaving or having recently left foster care.
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(vi) Programs and services funded, licensed, or certified by the state
office for the aging (SOFA) eligible for the cost of living adjustment
established herein, pending federal approval where applicable, include:
community services for the elderly; expanded in-home services for the
elderly; and wellness in nutrition program.
(vii) Programs and services funded, licensed, or certified by the
department of health eligible for the cost of living adjustment estab-
lished herein, pending federal approval where applicable, include:
special supplemental nutrition assistance program for women, infants and
children; perinatal and infant community health collaborative (PICHC);
consumer assistance for New York state health benefit exchange - naviga-
tor program; consumer assistance for the aged, blind, and disabled
(ABD); temporary SNAP outreach and enrollment assistance; comprehensive
family & reproductive planning; advancing tobacco free communities; NYS
nurse family partnership program; pre-exposure prophylaxis general and
HIV primary; adolescent pregnancy prevention services; young adult
community access program - AIDS institute (YACAP); home visiting;
HIV/AIDS adolescent services/ACT for youth; HIV/AIDS adolescent service
- general; HIV/AIDS adolescent services - schools; HIV/AIDS clinical
education; HIV/AIDS clinical guidelines development; HIV/AIDS clinical
scholars; HIV/AIDS clinical trials experimental treatment; HIV/AIDS
community development initiative; HIV/AIDS community HIV prevention and
primary care; HIV/AIDS community services programs; HIV/AIDS criminal
justice; HIV/AIDS education and training; HIV/AIDS evaluation and
research; HIV/AIDS expanded syringe access program; HIV/AIDS families in
transition; HIV/AIDS family centered care; HIV/AIDS harm reduction -
general; HIV/AIDS harm reduction - syringe exchange; HIV/AIDS HIV health
care and support services for women and kids; HIV/AIDS HIV prevention -
primary care; HIV/AIDS HIV prevention - support services for substance
abusers; HIV/AIDS homeless shelters; HIV/AIDS legal services and advoca-
cy; HIV/AIDS lesbian, gay, bisexual, transgender - adolescent; HIV/AIDS
lesbian, gay, bisexual, transgender - general; HIV/AIDS lesbian, gay,
bisexual, transgender - substance use; HIV/AIDS multiple service agency;
HIV/AIDS nutritional services; HIV/AIDS pediatric centers of excellence;
HIV/AIDS permanency planning; HIV/AIDS racial and ethnic minorities;
HIV/AIDS social day care; HIV/AIDS specialized care centers for youth;
HIV/AIDS specialty; HIV/AIDS supportive housing; HIV/AIDS treatment
adherence; HIV/AIDS women's services - general; HIV/AIDS women's
services - peer; HIV/AIDS women's services - supportive services;
HIV/AIDS youth access program, office of minority health; center for
community health program; red cross emergency preparedness; nutrition
outreach and education; obesity prevention; hunger prevention and nutri-
tion assistance; Indian health; asthma; rape crisis; early intervention;
sexuality related diseases - health and human services; maternity/early
childhood foundation; abstinence education; school health; sudden infant
death syndrome; childhood lead poisoning prevention; enhanced services
for kids; act for youth; children with special health care needs;
regional perinatal data centers; migrant health; dental services; osteo-
porosis prevention; eating disorders; cancer services; cancer registry;
healthy heart; Alzheimer's disease assistance centers; Alzheimer's
disease - research and education; diabetes screening - education and
prevention; tobacco control; rabies control; tick-borne illnesses;
immunization; public health campaign; sexually transmitted disease; and
tuberculosis control.
6. Eligible individuals. Support staff, direct care staff, clinical
staff, and non-executive administrative staff in programs and services
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listed in subdivision five of this section shall be eligible for the
1.7% targeted salary increase established pursuant to subdivision four
of this section.
(a) For the office of mental health, office for people with develop-
mental disabilities, and office of addiction services and supports,
support staff shall mean individuals employed in consolidated fiscal
report position title codes ranging from 100 to 199; direct care staff
shall mean individuals employed in consolidated fiscal report position
title codes ranging from 200 to 299; clinical staff shall mean individ-
uals employed in consolidated fiscal report position title codes ranging
from 300 to 399; and non-executive administrative staff shall mean indi-
viduals employed in consolidated fiscal report position title codes 400,
500 to 599, 605 to 699, and 703 to 799. Individuals employed in consol-
idated fiscal report position title codes 601 to 604, 701 and 702 shall
be ineligible for the 1.7% targeted salary increase established herein.
(b) For the office of temporary and disability assistance, office of
children and family services, and the state office for the aging, eligi-
ble support staff, direct care staff, clinical staff, and non-executive
administrative staff titles shall be determined by each agency's commis-
sioner.
7. Each local government unit or direct contract provider receiving
funding for the cost of living adjustment established herein shall
submit a written certification, in such form and at such time as each
commissioner shall prescribe, attesting how such funding will be or was
used to first promote the recruitment and retention of support staff,
direct care staff, clinical staff, non-executive administrative staff,
or respond to other critical non-personal service costs prior to
supporting any salary increases or other compensation for executive
level job titles.
8. Notwithstanding any inconsistent provision of law to the contrary,
agency commissioners shall be authorized to recoup funding from a local
governmental unit or direct contract provider for the cost of living
adjustment established herein determined to have been used in a manner
inconsistent with the appropriation, or any other provision of this
section. Such agency commissioners shall be authorized to employ any
legal mechanism to recoup such funds, including an offset of other funds
that are owed to such local governmental unit or direct contract provid-
er.
ยง 2. This act shall take effect April 1, 2026.