Georgia will soon increase wages for thousands of caregivers who help people with disabilities as state officials try to slow a worker exodus that is eroding services for this vulnerable population.

For years, organizations that serve Georgians with intellectual and developmental disabilities have said low wages, which are paid for with public funds, have resulted in a diminished workforce of caregivers. The COVID-19 pandemic pushed even more workers to leave, and group homes and other organizations struggled to compete with rising wages in the private sector.

In July, the state was given approval from the federal government to give a significant boost to caregiver wages. Caregivers, who are referred to as “Direct Support Professionals,” are now paid an average of $10.63 an hour through Medicaid, although organizations can pay above or below that rate. In the coming months, that average rate will go up to $16.70 an hour and the changes will enable organizations to offer other fringe benefits, like paid leave.

Kevin Tanner, commissioner for the Georgia Department of Behavioral Health and Developmental Disabilities, called the increase “historic.”

“This is way overdue,” Tanner said, adding, “It’s going to be a game changer for our providers, and in turn, a game changer for the people we serve in Georgia.”

The rate increase will cost the state $108 million annually, and the federal government will need to spend about an extra $200 million each year.

The change marks the first time in years the state has examined the rates for caregivers. The impact of these stagnant wages, outside of some modest supplements, has been severe: homes for people with disabilities have closed down, and organizations that have stayed open are operating with a skeleton staff. Caregivers previously told The Atlanta Journal-Constitution they have to string together other part-time or full-time jobs to pay their bills, and some reported working as much as 100 hours a week.

“It is the most meaningful impact that I ever recall on wages, and I’ve been at this for 40 years,” said Diane Wilush, Senior Director of Public Policy & Advocacy for United Cerebral Palsy of Georgia, who advocated for the increase.

Wilush said the change is allowing the organization to boost the entry level wage from $13 an hour to $17 an hour, and that more senior workers will also see increases. She’s spoken to organizations that are adding more residents back to homes, and reconsidering plans for expansion that had gone on the back burner.

The increased rates will benefit approximately 20,000 caregivers in Georgia, according to state estimates, and state officials hope the wage increase will slow the high turnover rate in the profession.

Ryan Whitmire, who oversees a residential service provider for people with disabilities, said that once fast food chains and other private sector jobs started raising wages, it was extremely difficult to compete. He said his organization ultimately had to close two homes.

“It got so out of balance, that it was impossible, and so our turnover rates were extremely high,” said Whitmire, who serves as the president and CEO of Developmental Disabilities Ministries. “With the new rates, we are optimistic that it’s going to have a huge draw.”

Commissioner Tanner said the state is now in the process of updating its billing codes so that organizations can be given funds that will go toward wage increases. Tanner said he expects the funds to be released in the fall, which will be retroactive back to July 1.

For some service providers, that money can’t come soon enough. John Zoller, who operates a nonprofit that helps care for people with disabilities in their homes, said he may have to close if he doesn’t get relief soon. Zoller is now borrowing money to keep paying his staff, and he fears having to send clients to the hospital if he can’t make payroll.

“My organization … may or may not exist three months from now,” he said.

For the current state budget, lawmakers were able to use some remaining pandemic relief funds to offset the cost.

In a statement, a spokesperson for Gov. Brian Kemp’s office celebrated the achievement as a win for all Georgians, but especially those with intellectual and developmental disabilities and those caring for them.

“We were proud to dedicate more funding to mental health than ever before in this year’s budget, and look forward to continuing that work with our partners across the state,” Carter Chapman, a spokesperson for Kemp’s office, said in a statement.

(This story has been updated with the correct title Diane Wilush holds with United Cerebral Palsy of Georgia. Wilush is the organization’s senior director of public policy & advocacy.)