47 Years of Heart

Part 3: The Reality Behind the Numbers

Over the years, Valley Residential Services has survived—and grown—because of creativity, discipline, and an unwavering commitment to doing the right thing.

In the early days, funding was limited, but wages were often well above minimum wage. Residential work was not viewed as an entry-level position. It was seen as skilled, important work. As a result, the organization was able to attract employees with strong experience and a deep sense of calling.

Today, the funding structure looks very different.

Supported Living is funded primarily through Medicaid and state dollars. The system allows agencies to staff according to each client’s assessed level of need. On paper, that means the organization can hire the staff it needs. In reality, however, the hourly reimbursement rate is extremely low—approximately $18 per hour total, and that figure must cover both wages and benefits.

To understand the strain, it helps to look at how the funding is divided.

Valley Residential Services receives a set daily rate for each client in Supported Living. From that, funds are allocated for direct support staffing and a small administrative percentage—approximately 5% of the total budget. That administrative pool covers leadership, compliance, payroll, human resources, accounting, and the countless unseen functions required to operate a highly regulated Medicaid-funded organization.

Nancy has never approached administration as a desk job. Even now, decades into her leadership, she continues to provide direct support when needed. Recently, she personally assisted a Supported Living client who requested help working through anger management strategies. That is simply who she has always been—an administrator who still loves the people first.

Beyond staffing and administrative funding, the individuals supported by Valley Residential Services rely on Social Security Disability income to pay their own living expenses. The average monthly benefit is approximately $987. That amount is expected to cover rent, utilities, household expenses, hygiene items, and personal needs. Many individuals also receive SNAP benefits, which average about $177 per month.

When broken down, the reality is stark. After rent, utilities, and basic necessities, very little remains.

From the outside, Valley Residential Services appears to be a large organization, operating on an annual budget of roughly $11 million and employing 216 staff members. But when that budget is divided across personnel costs, client services, and a 5% administrative rate, margins are incredibly thin.

At the end of most fiscal years, the organization finishes with approximately a 1% surplus—achieved only through strict financial discipline and careful stewardship of every dollar. For decades, Nancy has emphasized conservative money management. Creativity has never meant recklessness. It has meant stretching limited funds to protect the people served.

The funding system itself has also evolved. Years ago, agencies were required to account for every single hour and every single dollar spent on behalf of each client. Today, the state requires an annual cost report to ensure compliance and transparency. Those accountability measures were implemented in response to misuse elsewhere in the system—particularly instances where administrative wages were inflated and misclassified as direct service, reducing actual support staff compensation.

Valley Residential Services has never operated that way.

But even with integrity and efficiency, the math remains difficult. The current budget shortfall is driven primarily by staffing costs. Recruiting and retaining skilled Direct Support Professionals at competitive wages is increasingly challenging when reimbursement rates lag far behind rising costs of living.

The work remains complex. The expectations remain high. The funding has not kept pace.

And yet, through 47 years of change, one truth remains steady:

This work matters too much not to fight for it.