Plan addresses years of multi-million dollar budget deficits and rising program costs.
After three consecutive years of multimillion-dollar operating deficits driven by rising health care costs and rising program costs, Howard Center today announced a strategic realignment of services to address ongoing financial challenges and protect its ability to deliver critical services across the region. Howard Center is the state’s largest designated provider for mental health care, developmental disability programs and substance use disorder services with more than 1,300 employees serving nearly 20,000 Vermonters at approximately 60 locations.
“Like so many organizations in our community, Howard Center is facing a structural deficit that threatens our ability to serve the community long-term,” said CEO Sandy McGuire. “This realignment is a difficult but necessary step in our ongoing work to achieve greater financial viability and ensure we remain strong and focused on where we can have the greatest impact for those who need us most.”
As a direct services organization, more than 90% of Howard Center’s budget is dedicated to staff salaries and benefits. Since 2021, health care costs alone have increased by 100%. To manage, the organization must reduce costs by nearly $2.5 million in Fiscal Year 2026— beginning July 1—and achieve $3.6 million in ongoing annualized savings to stabilize operations. At times, Howard Center has had only single-digit days of operating cash on hand, prompting the need for urgent and responsible action.
Adjustments to programs and services will begin in September and continue through the end of the calendar year. Changes include a reduction of 13 supportive housing beds and closure of day programming at Westview House. The organization will also consolidate substance use disorder services in Franklin and Grand Isle Counties to Chittenden County; however, the mobile unit will continue to provide care in the area. Additionally, operational efficiencies such as technology and lease changes are being implemented. All of which result in the elimination of 27 filled positions and 30 vacant positions – 13 of the positions are administrative. To the extent possible, the impacted employees will be offered existing positions at Howard Center to limit impacts.
“We are taking a thoughtful, phased approach to minimize disruption and ensure continuity of care,” said Beth Holden, Chief Client Services Officer. “We have to be clear though that there will be impacts to our staff and clients. Nearly all clients will continue to receive services through other Howard Center programs. Additionally, we continue working closely with community partners and providers to fill remaining gaps in services.”
Despite financial headwinds, Howard Center continues to advocate for adequate and sustained public funding. The organization expressed gratitude for recent legislative action that provided a 2% increase and restored proposed cuts to critical services like First Call for Chittenden County and Community Outreach.
“For those of us who work in this field and live in service to our clients and our mission, it is a very hard reality that we cannot do everything we’ve always done and instead must continue to adapt to meet our clients’ needs. Those impacted need time to adjust to these changes as well as our ongoing support as we continue to serve them. Howard Center has endured for 160 years by adapting to meet the changing needs of our community and shifting economic realities. We will be here for the next 160 years by carrying this commitment and legacy forward,” concluded McGuire.