A tighter budget calls for thoughtful decisions about what matters most. 

Gregory Miller
President/CEO Penn-Mar Human Services

Penn-Mar entered its new fiscal year on July 1 facing one of its tightest budgets in recent memory. Cuts in Maryland and flat funding in Pennsylvania require us to take a closer look at spending while protecting the services and opportunities at the heart of our mission. While each budget year presents its own set of challenges and opportunities, our mission to support people with intellectual and developmental disabilities (IDD) never changes.

The State of Maryland made several cuts to intellectual and developmental disability funding. In practical terms for Penn-Mar, the cut of 2% equates to well over a half-million dollars. That’s a big hit for our annual budget. And with no increase from Pennsylvania, we went through multiple budget iterations to determine how to do the same or more with less money. 

Years of careful planning have positioned Penn-Mar to navigate this difficult budget, but it still requires us to make thoughtful choices. Our Fiscal Year 2027 budget identifies several capital improvement projects that will be temporarily deferred, along with a handful of other initiatives we’ve put on hold. We will revisit them throughout the year and move forward as funding allows.  

Our team members remain a top priority, as they are the key to providing the highest quality supports to the people we serve. The budget preserves opportunities for performance-based compensation and continues our investment in the Career Ladders Certification Program for Direct Support Professionals (DSPs) which has had a tremendous impact on our ability to recruit and retain our essential workforce. 

We also need to ensure proper maintenance of our facilities in Freeland, MD, New Freedom, PA, and our new location in Westminster, MD, as well as 60 community homes throughout Pennsylvania and Maryland.  

Over the last four years, we have been systematically selling older homes purchased earlier in Penn-Mar’s history and replacing them with one-level properties that better support accessibility, mobility, and aging in place as the people we support live longer lives. 

We recently closed on a new home in Pennsylvania after selling an older one to cover the purchase price. Our long-term goal is to replace older, multi-level properties with 4-bedroom, ranch-style homes designed around the current and future accessibility needs of the people living there. We are currently constructing a home in Maryland with that exact layout. 

Keeping our properties current and in good working condition is a huge efficiency driver given Penn-Mar’s assets.  

Penn-Mar enters this challenging year from a strong financial position. We currently hold $40 million in assets with just $6 million in debt, and most of our community homes are mortgage-free. By carefully paying down debt and reinvesting those funds, we have been able to improve properties while keeping our overall obligations manageable. We have also secured exceptional interest rates on borrowed funds. 

Assistive Technology (AT) is another critical area high on our list of priorities. Even with less government funding, we still plan to utilize and enhance technology throughout the organization, an effort led by our new Chief Technology Officer, Audra Hurd, who recently joined our executive leadership team. 

Government funding provides the foundation for the services we deliver every day, but it is our partnership with the Penn-Mar Foundation that allows us to go beyond those basics and invest in transformative, innovative initiatives that would otherwise be out of reach. Our commitment to expanding Assistive Technology (AT) is a prime example. Through philanthropic support, we can introduce technologies that enhance independence, increase opportunity, and improve quality of life for people with intellectual and developmental disabilities. Just as importantly, AT is an area that resonates deeply with many of our donors, who are eager to invest in solutions that create meaningful, measurable impact. 

At the same time, we recently achieved an important milestone that reflects the quality of the services Penn-Mar provides. Effective July 1, Penn-Mar was designated a Select Provider through Pennsylvania’s Performance-Based Contracting program, moving up from our previous Primary Provider designation. This achievement recognizes our success in meeting higher performance standards and results in an additional 3% increase in funding for certain services. Earning Select Provider status is a testament to the dedication and excellence of team members across the organization, while providing valuable financial support as we navigate a challenging fiscal environment. 

Despite the difficult budget realities ahead, Penn-Mar is well positioned to continue delivering on its mission of supporting people with intellectual and developmental disabilities to live courageously in pursuit of their best lives. Our strong financial stewardship, commitment to our team members, thoughtful investments in accessible homes and assistive technology, and continued focus on innovation give us confidence in the path forward.  

Still, none of this work happens alone. We are deeply indebted to the advocates who continue to raise their voices for sustainable funding and to the donors whose generosity helps us move beyond what government funding alone can provide. Because of that shared commitment, Penn-Mar will continue creating opportunities for people to live with greater independence, inclusion, and possibility.