Critical state funding for California’s aging population is at risk
California’s most vulnerable residents—our seniors—are facing new threats as the state considers significant budget cuts to vital programs they rely on. These proposed reductions could severely impact access to essential services that the Program of All-Inclusive Care for the Elderly (PACE) provides, such as healthcare, housing assistance, and community-based care, putting thousands of older, frail adults at significant risk.
As California grapples with tough financial decisions, it’s crucial to understand what’s at stake for our aging population and take action to oppose the budget cuts. Your voice can help us make a difference!
How will the proposed budget cuts impact California’s seniors served by the PACE program?
Proposed rate freezes and new annual fees on PACE Organizations pose significant threat to the future of PACE in California, including:
- Stalled Growth & Limited Access: The rate freeze would hinder the ability of PACE organizations to expand into high-need, underserved communities—directly limiting access to vital, all-inclusive care for older adults who need it most.
- Economic Ripple Effect: Without continued investment in new sites and infrastructure, local economies will feel the loss—fewer construction projects, reduced hiring of local workers, and diminished support for nearby small businesses that benefit from PACE center operations.
- Workforce Reductions: Organizations may be forced to slow hiring or reduce staff—at a time when the aging population is growing and demand for care is increasing. This runs counter to state priorities around workforce development and equitable access to care.
- Higher Patient-to-Staff Ratios: Cost pressures could result in increased caseloads for existing staff, challenging the high-touch, person-centered model that makes PACE so effective—and potentially impacting the health outcomes of participants.
- Threats to Program Viability: For smaller and emerging PACE organizations, the financial burden could be unsustainable, putting their survival at risk and further shrinking the availability of this proven model of care.
“These proposals will severely limit PACE Organizations’ abilities to invest in new locations—reducing access to care for older adults in underserved areas—and force them to tighten staffing ratios in an effort to manage costs, all while striving not to compromise the quality of their services.”
– CalPACE CEO,Val Sheehan
PACE Organizations are deeply committed to preserving both the quality and breadth of our services. We cannot, and will not, compromise on care — we urgently need rates and policies that reflect the true cost of delivering it to those we serve.
Balancing the state budget on the backs of frail older adults is not only short-sighted—it’s unjust. California’s most vulnerable seniors deserve stability, dignity, and continued access to the comprehensive care that PACE uniquely provides.