I would be surprised if anyone reading this isn’t feeling some level of financial pressure right now. For families and organizations alike, every dollar feels stretched thin. For nonprofit leaders, ensuring steady and reliable resources is a constant concern, but rarely has it felt as precarious as it does today. Are we meeting our fundraising goals? Will our state grant come through? Are federal programs secure? Never in my career have these questions caused so many sleepless nights or felt so difficult to navigate. This uncertainty does not make for the best environment for long-term planning or innovation, and yet that’s exactly what all of us must do to secure our future.
At Howard Center, we made tremendously difficult decisions earlier this year, including eliminating over 50 positions and closing or restructuring programs we could no longer sustain to realize approximately $3.6 million in annual savings. That was before the notion of a government shutdown, conversations about Medicaid cuts, or the surge in health insurance premiums which have risen a staggering 232% from $7.4 million annually to $17.1 million over the last six years to insure our one thousand-plus staff members. We acted early because we knew greater pressures were coming and that to prepare, we needed to realign our work with the most stable sources of support. While it was the right approach, it was not easy for our staff, and certainly not for the clients who depend on us.
As we look toward the months ahead and the upcoming legislative session, we need to work hand-in-hand with each other, including our elected leaders, and state officials, to prioritize what is truly essential and fight to protect it. For Howard Center, that means preserving base funding for essential programs in substance use treatment, mental health care, and critical support for Vermonters with developmental disabilities. These are areas where there are few, if any, other providers able to fill the void and where the demand for care continues to far outpace the human and financial resources required to meet it. Just to keep pace with rising costs and break even, we would need an 8% increase in our reimbursement rates and state contracts. That’s no small thing in a year where resources will be scarce, but the fact is, it will take stable and adequate funding to safeguard these services. The widening gap between what services cost and what funding provides is a challenge we must face honestly and collectively as we decide what we can do, and what we are unable to continue to do.
At the same time, we need to invest and build for the future through strong partnerships, smart stewardship, and strategic innovation. So many organizations share the same goals of helping Vermonters find stability, connection, recovery and wellbeing; keeping people out of emergency departments and off the streets; and ensuring that everyone has access to the care and support they need to live full, meaningful lives. Whether it is expanding access to housing and shelter beds with embedded support services or launching new models like mental health urgent care, we’re rethinking how care is delivered and designing solutions that can be lower cost and more efficient.
Within Howard Center, we’re focused on supporting and retaining our staff, improving efficiency, and leveraging technology to make the most of every resource we have. These efforts aren’t just about doing more with less, they’re about strengthening our foundation, working smarter, and ensuring that every dollar and every hour serve Vermonters well.
This moment can feel overwhelming. But I am heartened by the commitment and compassion of those across our region, including Howard Center staff, who are working together to make the most of these difficult times. Even in uncertain times, I am certain of this: Howard Center has endured for 160 years by adapting, innovating and planning to meet the moment, and this moment will be no different. Our mission endures, our people are resilient, and together we will rise to meet whatever comes next.
Sandy McGuire, MBA, is Howard Center’s CEO and a South Burlington resident.