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A Sample Non Medical Home Care Business Plan Template

With more senior citizens preferring to age at home for as long as they can, there is a massive demand for non-medical home care providers in the United States. According to reports, non-medical home care has become one of the fastest-growing businesses – but it is not to be confused with medical home care.

Medical home care providers tend to offer licensed nursing and rehab services that are prescribed by a physician with stipulated guidelines. Non-medical home care services serve as personal assistants and their services include meal preparation, daily errands, personal care assistance, assistance with daily living activities like bathing/showering, housekeeping, and transportation needs.

Also note that these business offerings go beyond just senior citizens, as they work with those with disabilities or even those recovering from an injury.

Steps on How to Write a Non-Medical Home Care Business Plan

1. executive summary.

King’s Care is a certified non-medical home care service provider that will be based in San Diego, California. We will also cover other cities like Coronado, National City, Chula Vista, Lemon Grove, Bonita, La Mesa, Imperial Beach, La Presa, Spring Valley, El Cajon, Rancho San Diego, Santee, Bostonian, and Lakeside.

Company Profile

A. our products and services.

Our plan at King’s Care is to provide non-medical care services to elderly people who would prefer to age at home, yet require some assistance with certain daily or weekly activities. We offer services like:

• Warm Companionship
• Meal Preparation
• Incidental Transportation
• Light Housekeeping
• Errands & Shopping
• Medication Reminders
• Laundry & Linen Washing
• Recreational Activities
• Personal Hygiene & Dressing Assistance
• Senior Information Resource
• Alzheimer’s/Dementia care
• Respite Care

b. Nature of the Business

At King’s Care, we will make available caregivers and workers who specialize in non-medical home care. We aim to offer excellent and affordable home health care and community-based social services to individuals and families of Southeastern Kansas.

c. The Industry

Since our agency specializes in non-medical home care and community-based social services, we are primarily in the home care industry.

d. Mission Statement

At King’s Care, our mission is to establish a first-class nonmedical home care service that will adequately cater to both highly and lowly placed clients as long as they can afford our services.

e. Vision Statement

At King’s Care, our primary aim is to become the number one choice when it comes to nonmedical home care service delivery in the whole of California and also to be amongst the top five non-medical home care service providers in the United States of America within the next 15 years.

f. Tagline or Slogan

King’s Care LLC – Exactly Where and How You Want It

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

King’s Care will be registered as a limited liability company in the State of California, because of the limited liability protection and pass-through taxation it offers.

h. Organizational Structure

We intend to employ an Administrative Director, three employees, and then work with a contracted agency to provide Caregivers, Physical Therapists, Occupational Therapists, and Speech Therapists. Aside from roles to be filled by Premium Control LLC, a well known human resource firm in San Diego, we intend to employ the following at King’s Care;

• Administrative Director
• Sales and Marketing Executive
• Accounting Officer

i. Ownership / Shareholder Structure and Board Members (If Any)

King’s Care being a limited liability company will solely be owned and managed by Sandra Jackson, a retired social worker with over 30 years of experience in the caregiving industry.

SWOT Analysis

A. strength.

• Comprehensive Non-Medical Home Care and Personal Care Services
• Experienced, Well-Trained Staff
• Long Operational Hours.

b. Weakness

•   Little or No Brand Identity and Image
• Low Staffing Numbers
• Not Enough Marketing Budget.

c. Opportunities

• Fast-Growing Market
• Aging Population
• Affordability and Comfort
• Protractible Business Model

i. How Big is the Industry?

According to a recently published report, the market size of the Home Care Providers industry in the US grew faster than the economy overall. When measured by revenue, the Home Care Providers industry generated about $109.6bn in 2023 and is ranked the 8 th Healthcare and Social Assistance industry by market size and the 111 th largest in the US.

ii. Is the Industry Growing or Declining?

Note that the market size of the Home Care Providers industry in the US has increased by 3.3% per year on average between 2016 and 2022 and is expected to keep growing at 0.1% in 2023.

iii. What are the Future Trends in the Industry

Even with rising staffing challenges, the care industry is still growing encouragingly. However, numerous emerging trends will define that ascent in the year ahead. These trends include;

• New labor battles are expected to emerge.
• Care management will become an utmost priority
• More franchise opportunities
• Growing demand for companionship services

iv. Are There Existing Niches in the Industry?

Yes. The niches include;

• Nursing Aide
• Skilled Nursing
• Social Work
• Personal Injury Case Management
• Physical, Occupational, and Speech Therapy
• Personal Assistance Services
• Home Medication Management

v. Can You Sell a Franchise of your Business in the Future?

Yes, the in-home care industry has grown massively in recent years, and franchises have taken a massive place in that market. However, according to industry reports, the top franchises in this sector are all relatively new businesses, mainly in response to increasing customer demand, and long-term social changes that entail that this sector is set for more growth.

Owing to these facts and market demand, we at King’s Care also intend to sell a franchise of our business in the future, more preferably after our first 10 years in business.

• Local Competition
• Recruiting, Hiring, And Retaining Quality
• Business Cash Flow and Funding
• Regulatory Changes.

i. Who are the Major Competitors?

• Nurse Next Door.
• Seniors Helping Seniors.
• Home Instead.
• Home Care Assistance.
• Visiting Angels.
• Comfort Keepers.
• Senior Helpers.

ii. Is There a Franchise for Non-Medical Home Care Business?

• Amada Senior Care: $101,900 to $163,100
• Assisting Hands Home Care: $82,050 to $152,000
• Home Care Assistance: $77,775 to $245,250
• ComForCare Home Care: $81,300 to $185,300
• FirstLight HomeCare: $99,681 to $152,926
• Home Instead Senior Care: $125,000 to $135,000
• Right at Home: $79,250 to $137,900
• Acti-Kare: $30,000 to $55,000
• Homewatch CareGivers: $50,000 to $350,000.
• Senior Helpers: $113,300 to $152,300
• BrightStar Care: $105,735 to $170,457
• Griswold Home Care: $108,181 to $181,431
• Qualicare Family Homecare: $84,550 to $194,550
• Interim HealthCare: less than $200,000
• Nurse Next Door: $120,000 to $200,000
• Synergy HomeCare: $39,130 – $160,057
• Visiting Angels: $77,985 to $102,285

iii. Are There Policies, Regulations, or Zoning Laws Affecting Non-Medical Home Care Businesses?

Yes, state and county laws can thwart certain services from being provided by increasing the requirements and certification levels. Therefore, it is very necessary to contact your state’s department of health services to understand the rules and regulations governing your business model.

You will also be expected to put together business policies and procedures that will serve as a driver’s manual for your business. A good non medical home care Policies and Procedures handbook will include:

• Company mission and values statements
• Client admission process
• Scheduling guidelines and rules
• Time-sheet and employee expense reimbursement procedures and policies
• Hiring practices
• Training and Orientation
• Client Rights and responsibilities

Marketing Plan

A. who is your target audience.

i. Age range

Our services at King’s Care will be for adults 65 years and above.

ii. Level of Educational

According to reports, the educational level of the older population has been increasing over the years. Between 1970 and 2020, the percentage of older persons who had completed high school rose from 28% to 89%. At least one-third (33%) in 2020 had a bachelor’s degree or higher. The Education level of older adults can also vary exponentially by race and ethnic origin.

iii. Income Level

Note that the median income of older persons in the United States was $27,398 in 2020. Men enjoyed a higher Median income overall: $36,921 compared to $21,815 for women.

iv. Ethnicity

• African American (not Hispanic): 12%
• Asian American (not Hispanic): 13%
• Native Hawaiian and Other Pacific Islander (not Hispanic): 10%
• American Indian and Alaska Native (not Hispanic): 12%
• Hispanic: 8%
• Persons identifying as two or more groups: 6%

v. Language

There is no restriction when it comes to the language spoken by the people we are looking to render our non medical home care services to.

vi. Geographical Location

• California (5.8 million)
• Florida (4.5 million)
• Texas (3.7 million)
• New York (3.3 million)
• Pennsylvania (2.4 million)
• Ohio (2 million)
• Illinois (2 million)
• Michigan (1.8 million)
• North Carolina (1.8 million)

vii. Lifestyle

According to industry reports, over half (61%) of persons age 65 and older lived with their spouse (including partner) in 2020. Approximately 18 million or 73% of older men, and 15 million or 50% of older women, lived with their spouse.

About 27% (14.7 million) of all older adults living in the community in 2020 lived alone (5 million men, 9.7 million women). Note that they represented 20% of older men and 33% of older women. The proportion living alone increases with advanced age for both men and women. Among women age 75 and older, for example, 42% lived alone.

b. Advertising and Promotion Strategies

• Press Releases
• Social Media Marketing
• E-mail Marketing
• E-mail Program

i. Traditional Marketing Strategies

• Develop a list of local health care facilities, senior organizations, and social centers to cold call to gain client referrals.
• Develop informational (postcard) brochures and flyers and distribute via a targeted direct mail campaign.
• Share press releases highlighting news about our agency to print news outlets in our target area.
• Distribute business cards in high-profile gatherings and share them indiscriminately to spread word of mouth regarding our services.
• Participate in health care industry trade shows and events hosted by senior organizations and other relevant industry events, workshops, and seminars to generate buzz about our agency.
• Join local and regional organizations like Health Care and Insurance organizations.

ii. Digital Marketing Strategies

• List our agency on industry lead sites
• Optimize our Google My Business profile
• Develop an organic SEO strategy
• Launch a Google Ads campaign
• Collect reviews on key third-party websites
• Use our blog to educate and attract website visitors.
• Retarget warm website traffic

iii. Social Media Marketing Plan

• Use images and video to build your brand on social media
• Amplify content with Facebook ads
• Encourage our clients and staff to share their experiences and opinions of our company.
• Tell real-life success stories because this is what prospects want to hear about.

c. Pricing Strategy

Nonmedical home care is a human-centered service, and no discussion on billing rates and pricing strategy is complete without acknowledging the human side to it. Howbeit, we will work towards ensuring that all our services are offered at highly competitive prices compared to what is obtainable in the United States of America.

Sales and Distribution Plan

A. sales channels.

At King’s Care, sales to us simply entail top-notch patient service and absolute satisfaction from referring physicians and health care facilities.

b. Inventory Strategy

After extensive research and deliberations, we intend to leverage AxisCare to efficiently manage our business dealings and inventory. This software is a web-based home care scheduling and management platform designed for personal care home care agencies.

It also offers user-friendly scheduling, a GPS Mobile App, automatic invoicing, medication reminders, custom forms and reports, payroll and billing integrations, EVV capabilities, visit insights, and so much more. It also features a marketing and CRM platform that will let us track revenue by referral source, analyze advertising methods, and track connections and relationships.

c. Payment Options for Customers

At King’s Care, we will make available the following payment options to clients.

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At King’s Care we do not offer any form of return policy; but being a well-established business, we will ensure that our employees and caregivers are well-trained, properly instructed, and duly monitored. We will also carry extensive insurance to ensure our agency can recover from mistakes or claims and can continue to provide valuable service to our clients.

e. Customer Support Strategy

To set King’s Care apart from other non medical home care businesses in California, we will also strive to establish our reliability. We understand that being flexible enough to adjust to a client’s change in schedule will go a long way in cementing trust. For example, accompanying a client to an unscheduled medical appointment if a health-related issue arises will make life easier for family and friends.

Operational Plan

At King’s Care, one of our major objectives is to employ well-trained, caring, and qualified individuals who are responsive to the needs of our patients. In addition, every member of our staff member will definitely meet the State of California educational and training requirements for the services they provide.

a. What Happens During a Typical Day at a Non-Medical Home Care Business?

For caregivers and personal aides, much of their time is spent with clients. A single visit might warrant preparing meals, basic cleaning, running errands, taking the client to appointments, and social engagements. In some cases, it might also involve basic hygiene and/or other simple non medical services. For owners, their responsibilities more or less transition to more administrative tasks. Owners will have to invest time in finding and managing assistants and aides, and less time working directly with clients.

b. Production Process (If Any)

There are no production processes at King’s Care!

c. Service Procedure (If Any)

All our service offerings and procedures at King’s Care will be to assist every client with improving their quality of life, encouraging independence, and allowing them to be comfortable with excellent care in their own homes by providing first-class, professional care with respect, dignity, compassion, high ethical standards, and honor.

d. The Supply Chain

Owing to our extensive feasibility research, we acknowledge there is a significant need for quality non-medical home care within this region (San Diego, California) and we believe that by employing competent staff, we can grow King’s Care to become the non medical care/social service agency of choice in Southern California within our first 3 years in business.

e. Sources of Income

At King’s Care, we intend to generate income by servicing the following clients.

• Private Patients
• HHC – Medicare Patients
• HHC – Medicaid and Private Insurance Patients
• PICM Patients

Financial Plan

A. amount needed to start your non-medical home care business.

We understand that starting a Non medical home health agency is quite inexpensive, compared to other businesses. However, being a business with exciting goals and objectives, we will need around $72,000 to start and run King’s Court for the first year.

b. What are the Cost Involved?

• Attorney Fees – Setting Up a Limited Liability Company: $1,200
• State of California Home Health Agency License: $110
• Medisoft Billing Program plus Support: $4 760
• Professional Liability Insurance: $2 800
• Workman’s Comp Insurance Deposit: $410
• Premises and Content Insurance Deposit: $210
• Contract Retainer with PT/OT/ST: $504
• Deposit plus First: $400
• Phone Set-Up (Excluding Phones): $250
• Utility Deposit: $150
• Post Office Box: $26
• 2 Computers (Fully Loaded): $3 000
• 4-in-1 Printer/Fax/Copier/Scanner: $750
• QuickBooks Pro: $150
• Phones: $290
• Stationary: $200
• Business Cards: $150
• Brochures: $150
• Other Misc. Office Supplies: $450

c. Do You Need to Build a Facility?

No, King’s Care will be started and managed out of a lavish facility at the hub of San Diego, California.

d. What are the Ongoing Expenses for Running a Non-Medical Home Care Business?

• Payroll and Payroll Taxes
• Depreciation
• Heat and Lights
• Water and Garbage
• Internet Access
• Professional Liability Insurance
• Workman’s Comp Insurance
• Premises and Content Insurance
• Advertising and Marketing
• Meals and Entertainment
• Professional Development
• Office Equipment and Supplies

e. What is the Average Salary of your Staff? (First Year)

• Administrative Director (Owner) – $0
• Administrative Assistant: $39 404
• Skilled Nurse: $41 389
• Nurse Aide: $30 915
• Social Worker: $21 214

f. How Do You Get Funding to Start a Non-Medical Home Care Business

King’s Care will be solely financed by Sandra Jackson herself and she will control the direction of the business to ensure that it is expanding at the forecasted rate. In terms of our business start-up, no equity funding or outside loans will be required.

Financial Projection

A. how much should you charge for your service.

Note that a good number of our services are covered under Medicaid, Medicare, and other private insurance providers, and the rates are set by them.

b. Sales Forecast?

• First Year: $350,000 (From Self – Pay Clients): $180,000 (From Medicaid Covers)
• Second Year: $670,000 (From Self – Pay Clients): $400,000 (From Medicaid Covers)
• Third Year: $910,000 (From Self – Pay Clients): $1,200,000 (From Medicaid Cover)

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1): $110,000 (30% of revenue generated)
• Second Fiscal Year (FY2): $400,000 (35% of revenue generated)
• Third Fiscal Year (FY3): $670,000 (45% of revenue generated)

d. Profit Margin of a Non-Medical Home Care Business Product/Service

According to experts, the average profit margin for Non medical home care services is about 30 and 40%, depending on certain factors such as services provided, pricing strategy, number of clients and workers, and also business expenses.

Growth Plan

At King’s Care, we intend to start selling franchises by our 10 th year in business. Just like we noted above, the in-home care industry has grown massively in recent years, and franchises have become a massive part of the industry. Owing to fact that the top franchises in this sector are all relatively new businesses, we also intend to sell a franchise of our business in the future.

We intend to expand to the following locations mentioned below;

• California (5.8 million seniors)
• Florida (4.5 million seniors)
• Texas (3.7 million seniors)
• New York (3.3 million seniors)
• Pennsylvania (2.4 million seniors)
• Ohio (2 million seniors)
• Illinois (2 million seniors)
• Michigan (1.8 million seniors)
• North Carolina (1.8 million seniors)

10. Exit Plan

King’s Care is an agency that will invest so much in its employees and we believe that management buyout is our only exit plan option. Some industry experts also believe that an employee-owned model is a perfect business opportunity to keep home care companies open.

More on Healthcare

Non Medical Home Care Business Plan Template

Written by Dave Lavinsky

Non Medical Home Care Business Plan

You’ve come to the right place to create your Non Medical Home Care business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Non Medical Home Care businesses.

Below is a template to help you create each section of your Non Medical Home Care business plan.

Executive Summary

Business overview.

Caring Companions Home Care is a startup non medical home care company located in Missoula, Missouri. The company is founded by Jim and Janice Lockwood, former managers for a home care business for over twenty years. Their experience in all facets of the business, including operations and administrative management, led to repeated stellar reviews of the business by the residents of Missoula who hired them to manage the care for their loved ones.

Jim and Janice Lockwood formed a team to produce an online system that assists the in-home caregivers with up-to-the-minute information on the status of the home client, medication needs, recent events/experiences, medical changes and other pertinent information. This allows each caregiver to enter the home of their client fully prepared with the latest information on the needs of their client. Caregivers provide general non medical assistance and care for the elderly or infirm in their own homes, offering a stable, reassuring continuance of familiar surroundings while able to remain in their own homes.

Product Offering

The following are the services that Caring Companions Home Care will provide:

• Personal care
• Companionship
• Meal planning and preparation
• Medication reminders
• Light housekeeping
• Transportation and Errands
• 24/7 assistance

Customer Focus

Caring Companions Home Care will focus on family caregivers of seniors and on seniors. They will focus on individuals with chronic illnesses. They will also focus on post-surgical or post-hospitalization individuals. They will focus on individuals with disabilities. They will focus on medical doctor organizations and community associations who work with elderly and disabled individuals.

Management Team

Caring Companions Home Care will be owned and operated by Jim and Janice Lockwood. They have recruited two former assistants to join them in starting their new company, Shawn Trentham and Cassidy Lovell, who will now take on the roles of assistant managers in the startup company, each managing specific areas according to their abilities and skills.

Caring Companions Home Care is the realization of a dream for Jim and Janice Lockwood. While working at their former place of employment, they saw all that could be accomplished and improved by processing many operations digitally, scheduling efficiently, and coordinating with home care companions via a client/caregiver digital platform. With these improvements now on the way, they’ve set out to improve all systems and processes to give their customers the best possible care in their own homes.

Shawn Trentham is a former caregiver with seven years of experience. His strength and mobility create a significant plus when working with clients who are larger and require movement from a wheelchair, for instance, to a sofa, or other movement requirements of a similar nature. Shawn’s new role will be that of the Training Manager for all new employees, as well as the first point of contact for employees who are already trained.

Cassidy Lovell, also a former caregiver with six years of experience, will take on the role of Scheduling Manager. She will oversee and direct all schedules for the team of caregivers at Caring Companions Home Care and will dedicate her efforts to assist customers efficiently, with compassion, in every contact.

Success Factors

Caring Companions Home Care will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Caring Companions Home Care
• Comprehensive menu of services, customized to need, provided for each client
• Complete digital platform system of up-to-the-minute caregiver and client notes
• Caring Companions Home Care offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Caring Companions Home Care is seeking $200,000 in debt financing to launch its Caring Companions Home Care. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Caring Companions Home Care.

Company Overview

Who is caring companions home care.

Caring Companions Home Care is a newly established, full-service non medical home care company in Missoula, Missouri. Caring Companions Home Care will be the most reliable, cost-effective, and efficient choice for those who need care in Missoula and the surrounding communities. Caring Companions Home Care will provide a comprehensive menu of personal and domestic services for any chronically ill, senior, or disabled individual to utilize. Their full-service approach includes a comprehensive array of services and assistance choices.

  Caring Companions Home Care will be able to offer the very best home care assistance available. The team of professionals are highly qualified and experienced in all aspects of care and assistance and will be fully trained by Caring Companions Home Care before responding to client calls for care. Caring Companions Home Care removes all headaches and issues of the disabled, elderly and chronically ill individuals of Missoula, and it ensures all issues are taken care of expeditiously, while delivering the best customer service.

Caring Companions Home Care History

Since incorporation, Caring Companions Home Care has achieved the following milestones:

• Registered Caring Companions Home Care, LLC to transact business in the state of Missouri.
• Has a contract in place at one of the area buildings for a 10,000 square foot office and staff conference room.
• Reached out to numerous former clients and contacts to include Caring Companions Home Care when they need assistance.
• Began recruiting a staff of ten and office personnel to work at Caring Companions Home Care.

Caring Companions Home Care Services

The following will be the services Caring Companions Home Care will provide:

• Transportation and errands

Industry Analysis

The non medical home care industry is expected to grow over the next five years to over $10 billion. The growth will be driven by the increase in age of the general population, as more seniors live longer, independent lives. The growth will also be driven by the ability of younger generations to cover the cost of personal care for parents and family members. The growth will be driven by an increased number of caregivers who are trained in the non medical caregiver industry. The growth will be driven by individuals who are amenable to working all hours of the day or night. Costs will likely be reduced as digital platforms will assist caregivers in providing communication online rather than in-person visits.

Customer Analysis

Demographic profile of target market.

Caring Companions Home Care will target family caregivers of seniors and seniors. They will target individuals with chronic illnesses. They will also target post-surgical or post-hospitalization individuals. They will target individuals with disabilities. They will target medical doctor organizations and community associations who work with elderly and disabled individuals.

Customer Segmentation

Caring Companions Home Care will primarily target the following customer profiles:

• Elderly and infirm individuals who need care assistance
• Individuals with disabilities who need care assistance
• Post-surgical or post-hospitalization individuals who need care assistance
• Medical groups and community associations who work with elderly and disabled

Competitive Analysis

Direct and indirect competitors.

Caring Companions Home Care will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mountain View Respite Care

Mountain View Respite Care is an indirect competitor in that the care offered is for caregivers who need rest from their typical duties. Caregivers can rest for up to two weeks, bringing heir loved ones with them for care at the same time. This allows family members an optimal situation and a rest from assisting seniors who are seriously ill or have dementia and other cognitive disabilities. By providing for both the clients with assistance needs and the caregiver who visits for a rest, Mountain View Respite Care becomes the perfect solution for both parties.

Roger Stone formed Mountain View Respite Care as a result of watching the care given to both his parents during their years of declining health. He noted that the caregivers worked 24/7, often with shift changes in the middle of the night, and were in need of help themselves to continue their duties. When he noted the family members needed help as much as those they cared for, he pursued the idea and launched the Mountain View Respite Care center in 2017. The needs of caregivers are now met, as well as the elderly and disabled or ill clients who visit the center with them.

Harmony Home Care Solutions

Harmony Home Care Solutions is a direct competitor located in the northeast suburban area of MIssoula, Missouri. It is owned and operated by Henry Dowling, who owns two additional locations in other regions of Missouri. Harmony Home Care Solutions provides care attendants who help with personal grooming, bathing, and toileting. They also provide transportation and run errands for clients. The assistants often take care of housekeeping, as well.

The caregiver shifts for Harmony Home Care Solutions are up to 6 hours each; in any 24-hour period of time 4 care attendants are provided. This allows the company to avoid paying full-time wages for any employee, listing each as part-time and not eligible for health care services. The company has fifteen part-time caregivers and three in-office administrative clerks. The outreach and target audience for the company is to seniors who need to augment Medicare benefits with non medical home care. Harmony Home Care Solutions provides those weekly hours and coordinates with Medicare services to effect a full week of care, while providing limited service during those hours.

Serenity Support Services

Serenity Support Services provides hospice care to patients who are typically within the final six to eight months of their lives. The company is owned by Greta Simmons, a former caregiver who chose hospice services because she believes the clients need the most concentrated, mindful care during those last months of life. Serenity Support Services is a direct competitor; however, the service is limited compared to the wide array of services offered by Caring Companions Home Care. The care attendants for Serenity Support Services provide medications, which entails regulating the professional certifications for aides in order to do so, and they assist with bathing and other personal care issues. They run errands and provide transportation to medical appointments, often helping them communicate with doctors or other care providers. The hospice staff is focused on end-of-life care, which is typically pain relief. Therefore, care attendants must be carefully vetted to avoid any abuse of medication usage by staff members.

Competitive Advantage

Caring Companions Home Care will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Caring Companions Home Care will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of personalized services, crafted to meet the individual needs of each client.
• Unique digital platform offering up-to-the-minute client information for caregivers.
• 24-hour care with detailed attention provided for medication reminders and assistance.
• Unbeatable pricing to its clients; they will offer the lowest pricing in town.

Promotions Strategy

The promotions strategy for Caring Companions Home Care is as follows:

Word of Mouth/Referrals

Caring Companions Home Care has built up an extensive list of contacts over the years by providing exceptional service and expertise to the clients of their other locations and because they’ve offered stellar care as managers of a home care company themselves. Most clients have already indicated they will follow Jim and Janice to their new company and will also help spread the word of Caring Companions Home Care.

Professional Associations and Networking

Jim and Janice Lockwood will network extensively within the community groups, hospital associations and senior/elderly groups that can direct clients to their care group. They will become actively engaged in assist others within these groups, with the hoped for result of growing their own business.

Website/SEO Marketing

Caring Companions Home Care will fully utilize their website. The website will be well organized, informative, and list all the services that Caring Companions Home Care is able to provide. The website will also list their contact information and schedules for care attendants and clients. The interactive platform allows caregivers to instantly detail information for the other caregivers on their team, offering outstanding results for the clients of the company. The website presence will use enhanced SEO marketing tactics so that anytime someone types in the Google or Bing search engine “non medical home care company” or “home caregivers near me”, Caring Companions Home Care will be listed at the top of the search results.

The pricing of Caring Companions Home Care will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Caring Companions Home Care. Operation Functions:

• Jim and Janice Lockwood will be the co-owners of the company. They will jointly oversee all staff and manage client relations. Jim and Janice have spent the past year recruiting the following staff:
• Shawn Trentham is a former caregiver who will be the Training Manager for all new personnel. His ability to demonstrate best practices while maintaining professionality will be a winning combination of skills to demonstrate to new employees.
• Cassidy Lovell, also a former caregiver with six years of experience, will take on the role of Scheduling Manager. She will oversee and determine all schedules for the team of caregivers. She will also direct her efforts to assist customers efficiently, with compassion, with every contact.

Milestones:

Caring Companions Home Care will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts
• 6/1/202X – Finalize client contracts for Caring Companions Home Care
• 6/15/202X – Begin networking at association events
• 6/22/202X – Begin moving into Caring Companions Home Care office
• 7/1/202X – Caring Companions Home Care opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for Caring Companions Home Care are the fees they will charge to the customers for their extensive list of services provided in non medical home care.

The cost drivers will be the overhead costs required in order to staff Caring Companions Home Care. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Caring Companions Home Care is seeking $200,000 in debt financing to launch its non medical home care company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs, along with association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Home Care Clients Per Month: 125
• Average Revenue per Month: $250,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, non medical home care business plan faqs, what is a non medical home care business plan.

A non medical home care business plan is a plan to start and/or grow your non medical home care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Non Medical Home Care business plan using our Non Medical Home Care Business Plan Template here .

What are the Main Types of Non Medical Home Care Businesses? 

There are a number of different kinds of non medical home care businesses , some examples include: Personal Care, Homemaking, and Companionship.

How Do You Get Funding for Your Non Medical Home Care Business Plan?

Non Medical Home Care businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Non Medical Home Care Business?

Starting a non medical home care business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Non Medical Home Care Business Plan - The first step in starting a business is to create a detailed non medical home care business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your non medical home care business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your non medical home care business is in compliance with local laws.

3. Register Your Non Medical Home Care Business - Once you have chosen a legal structure, the next step is to register your non medical home care business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your non medical home care business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Non Medical Home Care Equipment & Supplies - In order to start your non medical home care business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your non medical home care business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful non medical home care business:

• How to Start a Non Medical Home Care Business

Non-Medical Home Care Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Home Healthcare for Seniors

Are you about starting a non-medical home care business ? If YES, here is a complete sample non-medical home care business plan template & feasibility study you can use for FREE .

If you want to start a medical based business, you can choose to start a non- medical home care business. It is less technical and can provide great help to those that are in need of such services. In the united states of America, as well as other parts of the world, this business has continued to gain popularity.

A Sample Non-Medical Home Care Business Plan Template

1. industry overview.

When it comes to caring for people who can’t take care of themselves, there are several options and one of them is to take them to non-medical home care facility.

Basically, a non – medical home care facility is a private residence for the elderly, children or young people who cannot live with their families due to obvious reasons, or people with chronic disabilities who may be adults or seniors and can’t take proper care of themselves if left to live alone.

The law in the United States and in some countries states that before a non – medical home care facility can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week.

So also a standard non-medical home care facility is expected to have a house manager, night manager, weekend activity coordinator, and 2 or more caregivers depending on the size of the facility.

It is important to state that residents of non – medical home care facilities are people who don’t have need for medical care; it is basically designed for elderly people, and people with one form of disability or the other.

Non – medical home care facilities are not expected to accommodate people with medical conditions such as autism, intellectual disability, chronic or long-term mental/psychiatric disorder, or physical or even multiple disabilities et al.

As a matter of fact, some non – medical home care facilities were funded as transitional homes to prepare for independent living (in an apartment or return to family or marriage and employment), and others were viewed as permanent community homes.

Society may prevent people with significant needs from living in local communities with social acceptance key to community development.

The residents of non – medical home care facilities sometimes need continual or supported assistance in order for them to be able to complete daily basic and simple tasks such as:

Taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.

Going by the data published by the US Census Bureau, the regions that account for the largest share of establishments in the industry are the Southeast (23.9% of total establishments), Great Lakes (17.3%), West (12.9%) and Mid-Atlantic (12.7%) regions. This data basically reflects the age distribution in the United States.

So also, the data shows that employment in this industry is also concentrated in the Southeast, the Mid-Atlantic and the Great Lakes regions. The largest states in terms of employment are New York, California, Texas, Ohio and Florida.

The Home care industry of which non – medical home care is a subset of is indeed a very large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 386,384licensed and registered Non – Medical Home Care Facilities responsible for employing about 1,737,543employees and the industry rakes in a whopping sum of $84bn annually with an annual growth rate projected at 4.0 percent. It is important to state that there is no company with dominant market share in this industry.

Over and above, the Group Home/Non – medical home care facility line of businesses in developed countries are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market; the aging population and those who can’t take care of themselves.

2. Executive Summary

Noah’s Ark Non – Medical Home Care, LLC is a standard and licensed non-medical home care facility that will be located in the heart of Duluth – Minnesota in a neatly renovated and secured spacious housing facility.

Our non – medical home care facility is specifically designed and equipped with the needed accommodation facilities/gadgets to give comfort and security to all our residence irrespective of the religious affiliations, their race, and health condition.

We are set to take care of people with can’t take care of themselves be it the elderly, the young, or people with one form or disability or the other.

Noah’s Ark Non – Medical Home Care, LLC is a family owned and managed business that believes in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the hospitality industry by establishing our own non – medical home care facility (assisted living facility business).

We are certain that our values will help us drive the business to enviable heights and also help us attract the numbers of residents that will make our facility fully occupied year in year out.

Despite the fact that we are a non – medical home care facility, we are going to be a health conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization.

With that, we know that we will be enables to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners (vendors), and all our employees as well.

Our accommodation facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Noah’s Ark Non – Medical Home Care, LLC will provide a conducive home for our residents.

We will engage in services that will help residents in our facility complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.

Noah’s Ark Non – Medical Home Care, LLC will be equipped with everything that will make life comfortable for the disabled and elderly.

We will as build a fitness room and library et al. We will also install a free Wi-Fi that will enable our residents and guests surf the internet with their laptop in the room free of charge, and there will be wireless access in all the public area within the lodging facility.

Noah’s Ark Non – Medical Home Care, LLC is a family business that is owned and managed by Mrs. Abigail Washington and her family.

Mrs. Abigail Washington is a licensed non – medical home care administrator and social health worker with well over 15 years of experience working for leading brand in the industry. She has a Master’s Degree in Public Health and she is truly passionate when it comes to taking care of the aging population and people with disabilities.

3. Our Products and Services

Noah’s Ark Non – Medical Home Care, LLC is set to operate a standard non – medical home care facility in Duluth – Minnesota. The fact that we want to become a force to reckon with in the Home Care Facility industry means that we will provide our resident a conducive and highly secured accommodation.

In all that we do, we will ensure that our residents are satisfied and are willing to recommend our facility to their family members and friends. We are in the non – medical home care business to deliver excellent services and to make profits and we are willing to go the extra mile within the law of the United States to achieve our business goals, aims and objectives.

Noah’s Ark Non – Medical Home Care, LLC will provide a conducive home for our residents; we will engage in services that will help our residents complete daily basic and simple tasks such as:

4. Our Mission and Vision Statement

• Our vision is to become the number one choice when it comes to non – medical home care facility in the whole of Minnesota and also to be amongst the top 20 non – medical home care facilities in the United States of America within the next 10 years.
• Our mission is to build a non – medical home care facility that will meet and surpass the needs of all the residents of our facility; we want a profitable and successful business.

Our Business Structure

Noah’s Ark Non – Medical Home Care, LLC is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (non – medical home care administrator, nurse’s aides, medication management counselors, county aging worker, rehabilitation counselors, and home caregivers) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the home care facility industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our business brand to be well accepted in Minnesota and the whole of the United States.

When hiring, we will look out for applicants that are not just qualified and experienced, but homely, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Noah’s Ark Non – Medical Home Care, LLC;

• Chief Executive Officer
• Non – Medical Facility Administrator (Human Resources and Admin Manager)

Nurse’s Aides

• Home Caregivers/County Aging Workers
• Sales and Marketing Executive
• Accounting Officer
• Security Officer

5. Job Roles and Responsibilities

Chief Executive Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board.

Non – Medical Home Care Administrator (Admin and HR Manager)

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily home activities.
• Responsible for managing our residents in their various houses
• Handles personal injury case management
• Responsible for offering home medication management services

Marketing and Sales Executive

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represent Noah’s Ark Non – Medical Home Care, LLC in strategic meetings
• Helps to increase sales and growth for Noah’s Ark Non – Medical Home Care, LLC.

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Noah’s Ark Non – Medical Home Care, LLC
• Serves as internal auditor for Noah’s Ark Non – Medical Home Care, LLC.

Security Officers

• Ensure that the facility is secured at all time
• Control traffic and organize parking
• Give security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports weekly
• Any other duty as assigned by the facility administrator
• Responsible for cleaning the facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Assist our residents when they need to take their bath and carry out other household tasks
• Cleans both the interior and exterior of the facility
• Handle any other duty as assigned by the facility manager

6. SWOT Analysis

Noah’s Ark Non – Medical Home Care, LLC is set to become one of the leading non – medical home care facility in Minnesota which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business.

We want our non – medical home care facility to be the number one choice of all residents of Duluth and other cities in Minnesota. We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.

Even though our Chief Executive Officer (owner) has a robust experience in social work and taking care of people with disability and the aging population, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the home care facility industry.

This is the summary of the SWOT analysis that was conducted for Noah’s Ark Non – Medical Home Care, LLC;

Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our organization.

As a matter of fact, they are some of the best hands in the whole of Duluth – Minnesota. Our location, the Business model we will be operating on, well equipped facility and our excellent customer service culture will definitely count as a strong strength for us.

Noah’s Ark Non – Medical Home Care, LLC is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the highly experienced hands in the home care facility industry.

• Opportunities:

The opportunities that are available to non – medical home care facilities are unlimited considering the fact that we have growing aging population and people with one form of disability or the other in the United States and we are going to position our business to make the best out of the opportunities that will be available to us in Duluth – Minnesota.

Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new and bigger / well established non – medical home care facility or group home facility brand in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Because of the essential nature of services provided by non – medical home care facilities / group homes, the industry was able to grow even in the face of economic stagnation. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.

Since the aging population are more prone to injury and illness, and therefore require more assistance with daily activities, the larger share of senior adults has propelled demand for non – medical home care facilities and of course nursing care facilities.

Despite favorable demographic trends, unsatisfactory government funding has hindered industry growth. The trend in the industry is that, players in the industry are now flexible enough to adjust their services and facilities to attract more knowledgeable and educated residents by incorporating more technology and adapting to new markets

Another trend in the industry is that, in other to make non – medical home care facilities and group home facilities more affordable for low income individuals, many states in the United States of America are enacting changes to the portion of Medicaid which can be applied to Group Home Facilities.

Before now, only individuals living in nursing homes were typically provided Medicaid assistance, but in recent time, there are now a growing number of states that have recognized the importance of offering Medicaid dollars to senior citizens living in Group Home Facilities.

No doubt the Home Care Facility industry will continue to grow and become more profitable because the aging baby-boomer generation in United States is expected to drive increasing demand for this specialized services and care.

8. Our Target Market

Noah’s Ark Non – Medical Home Care, LLC is in business to service the aging population and people with disabilities in Duluth – Minnesota and other cities in Minnesota. We will ensure that we target both self – paying customers (who do not have Medicaid cover), and those who have Medicaid cover.

Generally, those who need the services of non-medical home care facilities are the aging population, people with one form of disabilities or the other and perhaps those who need daily help.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the home care facility industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies. Our customers can be categorized into the following;

• The aging population
• People with one form of disability or the other (Both young and the elderly)
• The aged who might suffer from severe joint pains and every other age categories that fall under the conditions listed by the physician as people who do not necessarily need the services health workers to survive or carry out their daily task.

Our Competitive Advantage

Aside from the competitions that exist amongst players in the non – medical home care line of business, they also compete against other home healthcare services providers such as assisted living facilities and nursing homes et al.

To be highly competitive in the home care facility industry means that you should be able to secure a conducive and secured facility, deliver consistent quality service and should be able to meet the expectations of the children / family members paying for their loved elderly parents and people with disabilities in your facility.

Noah’s Ark Non – Medical Home Care, LLC is coming into the market well prepared to favorably compete in the industry. Our facility is well positioned (centrally positioned) and visible, we have good security and the right ambience for elderly people and disabled people.

Our staff is well groomed in all aspect of non – medical home care facility services and all our employees are trained to provide customized customer service to all our residents. Our services will be carried out by highly trained professional nurse’s aides, county aging workers and home caregivers who know what it takes to give our highly esteemed residents value for their money.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups non – medical home care facility business and other related businesses in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Noah’s Ark Non – Medical Home Care, LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry.

We will generate income by providing a conducive home for our residents; we will engage in services that will help our residents complete daily basic and simple tasks such as:

10. Sales Forecast

One thing is certain; there would always be elderly people and people with disabilities who would need the services of non – medical home care facility.

We are well positioned to take on the available market in Duluth – Minnesota and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our non – medical home care facility business and our residents’ base.

We have been able to critically examine the non – medical home care facility services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Duluth – Minnesota.

Below is the sales projection for Noah’s Ark Non – Medical Home Care, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;

• First Year-: $100,000 ( From Self – Pay Clients ): $250,000 ( From Medicaid Covers )
• Second Year-: $250,000 (From Self – Pay Clients): $500,000 ( From Medicaid Covers )
• Third Year-: $500,000 ( From Self – Pay Clients ): $1,500,000 ( From Medicaid Cover )

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing and sales strategy of Noah’s Ark Non – Medical Home Care, LLC will be based on generating long-term personalized relationships with our residents. In order to achieve that, we will ensure that we offer top notch all – round non – medical home care facility services at affordable prices compare to what is obtainable in Minnesota and other state in the US.

All our employees will be well trained and equipped to provide excellent and knowledgeable services as it relates to our business.

We know that if we are consistent with offering high quality service delivery and excellent customer service, we will increase the number of our residents by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for Noah’s Ark Non – Medical Home Care, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residents of Duluth and other cities in Minnesota.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the home care facility industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Minnesota.

In summary, Noah’s Ark Non – Medical Home Care, LLC will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residents, clubs for elderly and people with disability and other stake holders in Minnesota
• Advertise our business in community based newspapers, local TV and local radio stations
• List our business on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals)
• Enter into business partnership with hospitals, government agencies and health insurance companies.
• Attend healthcare related exhibitions/expos.

11. Publicity and Advertising Strategy

We are in the non – medical home care facility business to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote Noah’s Ark Non – Medical Home Care, LLC.

Noah’s Ark Non – Medical Home Care, LLC has a long term plan of building non-medical home care facilities in key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Duluth – Minnesota before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning residents (customers) over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Noah’s Ark Non – Medical Home Care, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs that appeals to the aging population and people with disability
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Billboards on strategic locations all around Duluth – Minnesota
• Engage in road show from time to time in location with growing aging population and people with disability
• Distribute our fliers and handbills in target areas with high concentration of aging population and people with disabilities
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Noah’s Ark Non – Medical Home Care, LLC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.

On the average, non – medical home care facilities and group home facility service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment.

In view of that, it is easier for non – medical home care service providers to bill their clients based in their discretions. Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal residents especially when they refer clients to us.

• Payment Options

At Noah’s Ark Non – Medical Home Care, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

If you are looking towards starting a non-medical care facility business , then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You would need money to secure a standard residential facility big enough to accommodate the number of people you plan accommodating per time, you could need money to acquire supplies and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.

The items listed below are the basics that we would need when starting our non – medical home care facility business in the United States;

• The Total Fee for Registering the Business in the United States – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of Noah’s Ark Non – Medical Home Care, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Consultant – $2,500.
• Cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Cost for leasing a standard and secured facility in Duluth – Minnesota for 2 years – $250,000
• Cost for facility remodeling – $50,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (stocking with a wide range of products such as toiletries, food stuffs and drugs et al) – $50,000
• Storage hardware (bins, rack, shelves,) – $3,720
• The cost for the purchase of furniture and gadgets (Beds, Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching a Website: $700
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our non – medical home care facility in Duluth – Minnesota. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding/Startup Capital for Noah’s Ark Non – Medical Home Care, LLC

Noah’s Ark Non – Medical Home Care, LLC is a family business that is solely owned and financed by Mrs. Abigail Washington and her family. We do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Noah’s Ark Non – Medical Home Care, LLC intends to generate our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Noah’s Ark Non – Medical Home Care, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our non – medical home care services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Noah’s Ark Non – Medical Home Care, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of Medical Equipment and vans et al: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress

Related Posts:

• Home Healthcare Agency Business Plan [Sample Template]
• Senior Home Care Business Plan [Sample Template]
• How to Start a Non-Medical Home Healthcare Business
• 40 Best Senior Care Business ideas You Can Start Today
• What Type of Business is a Non-Medical Home Care?

A Near-Comprehensive Guide to Starting A Non-Medical Home Care Agency

Starting a home care agency isn't for the faint of heart, but it can be a great way to set yourself and your family up for long-term financial security while making a real difference in your community at the same time.

My name's Connor —my team and I at Careswitch have educated and worked with hundreds of home care agencies over the last ten years. We've also gotten the chance to rub shoulders with many of the very best and brightest in the home care industry. I've tried to condense the most relevant knowledge about starting a non-medical home care agency into one guide for you here.

Let's break down the steps to starting a home care agency.

I strongly encourage you to bookmark this guide and come back to it often as you go through the process of starting your home care agency. If you're using Chrome, just hit Control+D on a PC or Command+D on a Mac.

Note that this applies primarily to starting a non-medical home care agency relying on private-pay clients in the United States. If you're trying to start an agency providing actual medical care, or want to use Medicaid waivers to expand your available clientele, know that there are likely additional steps we aren't covering here.

In each section we'll include additional reading, resources, and other videos.

Start planning the details for your home care agency now.

Before you get to the technical logistics, it's good to do some self-examination regarding your own skills and motivations. If you're getting into this business, make sure you've got a mix of business skills and desire to help people. It sounds basic ,but too many agency founders are either businesspeople in it solely for money or kindhearted care professionals without business sense. Either of those fail nearly every time.

Some of the biggest challenges you should plan ahead for: (we'll cover each of these)

• Getting licensed, if you’re in a state that requires licensure.
• Where to get clients
• Where to get caregivers
• Where your startup capital will come from
• Where your office will be situated
• How you’ll stand out from the competition—both to potential clients and potential caregivers

Note: States often have small business development centers that provide free assistance to entrepreneurs. Take advantage of this resource.

A great resource to help you think through these questions:

• The 6 biggest challenges new home care agencies face , and how to deal with them (podcast episode with Julio Briones, one of the leading home care operations consultants in the country)

Do all the un-sexy administrative stuff.

This includes:

Get licensed.

This is a major step, and licensure requirements vary by state. This process is usually much easier if you are planning to offer exclusively non-medical care to private pay clients as opposed to home healthcare or Medicaid waivers. (You can expand into those over time but they add significant complexity up front.)

Depending on the state you may decide to hire a consultant to help you through this process. We recommend Certified Home Care Consulting or Slusher Consulting (Slusher operates in Texas only).

Decide on a business tax structure.

Consult with your tax professional, but generally speaking you should start as an LLC and change to an S-Corp once you’re pulling in enough net profit to pay yourself a managerial salary of at least $70k. Here’s an explanation why from a tax consultant who specializes in home care agencies.

Understand your state board of nursing standards and procedures.

The board maintains standards for homemaker-home health aide education and training programs. The board also maintains a registry of all individuals who have successfully completed homemaker-home health aide training and competency evaluation program.

Decide if you want to use a third-party registered agent for your business.

A registered agent is business or individual designated to receive service of process when a business entity is a party in a legal action such as a lawsuit or summons. They can also assist with some of the basic legal steps in setting up your business—they can file formations, amendments, and other filings you may be required to file with your state. If you choose to use an online service to register the business, they usually do this for you.

Obtain an Employer Identification Number from the IRS.

This is 9-digit unique identifier for your business, much like a Social Security Number (SSN) is a unique number assigned to an individual. This is an essential legal step in every state. You can file online, fax, or mail; learn more and apply for one on the IRS website here .

Here's a video directly from the IRS it.

Form your business by filing a certificate of formation with your state Division of Revenue.

You don’t need to use the “LLC” in your marketing, brand, etc. but remember to use it in important legal docs like contracts, invoices, etc. There's usually a fee of around $100.

Open a bank account.

Never combine business and personal finances. You’ll want to make sure to run your business transactions through your business bank account so they can be written off for taxes. Save your receipts and/or use an expense tracking software (will save you and CPA time/headaches down the road)

Register with your state division of consumer affairs (if required).

Generally speaking, all healthcare service-related firms generally need to be registered here. Often you may need to also get accreditation from a third party accreditor, such as:

• Accreditation for Commission of Health Care
• Commission On Accreditation For Home Care
• Community Health Accreditation Program ‍
• National Association For Home Care & Hospice ‍
• The Joint Commission

Identify a Director of Nursing (if different from yourself) and have a copy of their nursing license.

Specific requirements for this will vary by state; typically, a Director of Nursing performs client assessments and creates plans of care for your caregivers to follow.

Register for state taxes and unemployment insurance.

This is often the same department and website, but sometimes can be split up (register business with secretary of state and taxes with department of taxation). You can usually do this online; you’ll need your tax account number and UI number to sign up for payroll services with a third party firm.

Obtain Workers Comp either through a human or online broker .

Usually any stockholder (owner) of a corporation that works in the business, even if compensation is deferred, must also be covered by Workers Comp (sometimes does not apply to LLCs).

Become familiar with your states Wage and Hour Compliance requirements for wages, working hours, earned sick leave and other regulations that employers must follow.

Among other things, this includes:

• Wages and overtime
• Leave and benefits
• Registration and records
• Worker classification (we'll save you some time; your employees MUST be W-2s instead of 1099s unless you operate as a registry, which is a significantly different business model in which you have significantly less control over things like schedules and pay)
• Employee discrimination

Many (if not most) home care agencies are out of compliance in various ways when it comes to payroll, and the Department of Labor has been ramping up litigation against home care agencies. Here's a useful guide to some of the most common ways agencies risk litigation and how you can avoid them.

Get an office.

You may choose to start from a home office or rent a place right out of the gates. Either way, there are legal, administrative, and strategic considerations.

If operating from your home you will need to have checked with your municipality to determine what, if any, permits are required for you to operate a business in your home and have secured any required permits. Depending on how you use the office, you'll often need to maintain a separate entrance/exit for the public to access your office that does not allow visitors to walk through your home’s private residential space.

If you are operating your business at a “shared” services office facility, the Investigator will need to inspect your file cabinets for securing all client and employee documents and your rental agreement or lease for “shared” office space.

Choosing an office location is also a highly strategic decision that will impact your difficulty in hiring and engaging caregivers. Here's a podcast episode where we go in-depth about this decision (and several related start-up decisions).

Start creating your brand and marketing assets.

Where should you start?

Come up with a name.

Your name, mission, brand, and differentiator should tie together. For instance, too many home care agencies choose names that draw from the same set of words and imagery—hands, touch, angels, hearts, helpers, home, etc.

While you shouldn’t automatically reject any names that use these words, you’ll have a hard time standing out if you use them because so many agencies already make use of them.

Consider a phrase that has personal meaning to you and connects with a mission or purpose that you can communicate to people. Some real-life examples include:

• Light Bearers Home Care
• Abundant Living Home Care
• Covenant Care
• Grandkids On Call

Create your website.

While you can create your own, it's usually more efficient to have a marketing agency do it for you (as well as maintain it). Some reputable agencies focused on home care agencies include Grow Home Care Marketing , Home Care Marketing Pros , Revivify , corecubed , and ChoiceLocal .

Here's a great guide to getting your home care agency's website right .

This is a beautiful example of a home care agency with a unique brand that speaks compellingly to the value they add. I love the fact that they articulate their value while putting the focus on the client.

Create a Google Business Profile and other online directory profiles.

These are critical for two reasons: first, many of them are direct ways for consumers to find you (Google will typically end up being one of the key ways clients find you). Additionally, listings in online directories help your website's search engine optimization (SEO) score, essentially helping ensure that your overall online presence is stronger and more credible.

Here’s a great guide to getting your Google Business profile top-notch .

Get the right software tools.

Many agency owners try to do it all on paper at first or run the business out of Excel. Doing so will waste your valuable time and contribute to burnout.

There are many great scheduling software platforms built for this. Careswitch can help you with running these basic business functions and we operate on a freemium pricing model so you can use it for free.

We can help you run almost every part of your business from place, including:

• An app for your caregivers to keep track of schedules and pay
• Processing your payroll (this is one of the few features that requires you to pay)
• Creating care plans
• Electronic visit verification
• Documenting visits
• HIPAA-compliant chat with your caregivers

While Careswitch is generally regarded as the most technology-forward option (and the only home care-specific software that you can use for free), we encourage you to shop around and see what works best for you. Some other options include ClearCare (now called Wellsky Personal Care, eRSP (Kaleida Systems), and MatrixCare.

Your life will be a LOT easier if you skip the phase of trying to build schedules out of Excel and get a software system made for home care agency management.

Start building relationships with community referral sources.

While many clients will come to you via sources like your Google profile, building relationships with other professionals in your community will help you establish pipelines of client referrals. In many cases these become the backbone of an agency's revenue.

Some common commmunity referral partners include:

• Home health agencies
• Assisted living facilities
• Continuing care retirement communities
• Hospital discharge planners
• Doctors offices
• Skilled nursing facilities
• Independent living facilities
• House call physicians
• Rehab centers (outpatient)
• Rehab facilities (inpatient)
• Other home care agencies
• Diagnosis-specific support groups
• Neurologists
• Social service agencies
• Workers compensation providers/case managers
• Bank trust officers
• Real estate agencies
• VA programs
• Financial planners
• Geriatric care managers
• Adult day care centers
• Churches/clergy
• Occupational therapists
• Funeral directors
• Fiduciaries
• Elder law attorneys
• Estate planners
• Country clubs
• House cleaning services
• Senior communities
• Social workers
• Care management agents
• Placement agencies
• Independent living
• Hair salons

As you get going, don't forget clients and their loved ones.

Some other important resources to help you with marketing:

• Planning your marketing strategy
• How to choose referral sources
• Which talking points to use with different referral sources
• What the first three visits to a new referral source should look like

Plan your home care agency's recruitment strategy.

After you get over the initial hill of getting your first five clients, you'll probably find it harder to attract caregiver than clients because demand for home care is so high and there's such a shortage of home care workers.

In fact, hiring good caregivers on a consistent basis will probably end up being one of the biggest challenges your home care agency faces.

There's no silver bullet to hiring, but we've compiled a list of great resources for you:

• How to build your recruitment strategy
• How to win on sites like Indeed
• A very in-depth guide on home care recruitment

Get the right ongoing education.

Ultimately, you won't succeed unless you're constantly learning. Here's what we suggest:

For starters, find a mentor, ideally another home care owner or former home care owner, who you can talk to regularly and ask questions.

Join Home Care U. Home Care U is a free community Careswitch put together to help home care agency owners/administrators and aspiring owners. It includes a Facebook community , a podcast , and a weekly virtual class. All 100% free.

Home Care U: a free community to help you start and run a home care agency. Because nobody learned how to run a home care agency in school.

Check out the Frequently Asked Questions of Home Care . The Frequently Asked Questions of home care is another free resource the Careswitch team put together, in which we and experts from across the industry offer quick, bite-sized answers to the questions every home care agency owner asks at some point.

Bookmark this guide! If you're starting a non-medical home care agency, you'll likely find yourself returning to it quite a few times.

And now, if this was useful to you, a couple quick asks:

• Share this guide (and any of the other resources we linked to) with anyone else who might find it useful.
• Check out   Careswitch . You'll need a software system to run your agency with, and we dare you to find one better-suited than Careswitch.

Here's to your success.

How to Start a Non Medical Home Care Business

Starting a non medical home care business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful non medical home care business.

Importantly, a critical step in starting a non medical home care business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Non Medical Home Care Business :

• Choose the Name for Your Non Medical Home Care Business
• Develop Your Non Medical Home Care Business Plan
• Choose the Legal Structure for Your Non Medical Home Care Business
• Secure Startup Funding for Your Non Medical Home Care Business (If Needed)
• Secure a Location for Your Business
• Register Your Non Medical Home Care Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Non Medical Home Care Business
• Buy or Lease the Right Non Medical Home Care Business Equipment
• Develop Your Non Medical Home Care Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Non Medical Home Care Business
• Open for Business

1. Choose the Name for Your Non Medical Home Care Business

The first step to starting a non medical home care business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your non medical home care business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your non medical home care business.

2. Develop Your Non Medical Home Care Business Plan

One of the most important steps in starting a non medical home care business is to develop your non medical home care business plan . The process of creating your plan ensures that you fully understand your market and your business  model. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your non medical home care business.
• Company Overview – this section tells the reader about the history of your non medical home care business and what type of private home care business you operate. For example, are you a home health agency, in-home care service, home nursing service, personal home care service, or a respite care business?
• Industry Analysis – here you will document key information about the home care services industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your non medical home care business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your non medical home care business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your non medical home care business.

Next you need to choose a legal business structure for your non medical home care business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the non medical home care business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a non medical home care business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a non medical home care business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a non medical home care business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your non medical home care business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Non Medical Home Care Business (If Needed)

In developing your own home care business plan , you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a non medical home care business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a non medical home care business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few key factors to consider when choosing a location for your non medical home care business. First, you’ll want to think about the needs of your target market. For example, if you’re targeting seniors, you may want to choose a location close to retirement communities or hospitals. If you’re targeting families with young children, you’ll want to be close to schools and parks.

Next, think about accessibility. If you’re planning on offering transportation services, you’ll need to operate in a location that is accessible by public transportation.

Finally, consider your budget and what will be the most cost-effective for your business. You’ll also want to think about the setting you want for your business. Do you want to operate out of your home, or do you want to lease office space?

6. Register Your Non Medical Home Care Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account or business checking account in your non medical home care business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your non medical home care business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits you need to start a non medical home care business will vary depending on your location. However, generally you will need a business license, a state license, and insurance. You may also need a permit to operate as a home care agency. To find out what licenses and permits you need in your area, contact your local government or business licensing agency.

10. Get Business Insurance for Your Non Medical Home Care Business

The type of insurance you need to operate a non medical home care business will depend on the scope of the operation.

Some business insurance policies you should consider for your non medical home care business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Non Medical Home Care Business Equipment

To start a non medical home care business, you will need some basic equipment. This may include a computer with internet access, a printer, a phone, and a fax machine. You may also want to invest in a copy machine and scanner. You may also need a vehicle to transport your clients.

12. Develop Your Non Medical Home Care Business Marketing Materials

Marketing materials will be required to attract and retain customers to your non medical home care business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your non medical home care business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your non medical home care business.

13. Purchase and Setup the Software Needed to Run Your Non Medical Home Care Business

The software you need to run a non medical home care business is a customer relationship management (CRM) system to manage your customers and appointments, and a billing system to track your invoices and payments. You may also want to consider an online booking system to make it easy for your customers to book appointments.

14. Open for Business

You are now ready to open your non medical home care business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

Additional Resources

Private Home Care Mavericks

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Non Medical Home Care Business FAQs

Is it hard to start a non medical home care business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a non medical home health care business will vary depending on the specific market and location. However, some key factors to keep in mind include the availability of qualified employees, stringent regulations governing the industry, and competition from larger businesses.

How can I start a non medical home care business with no experience?

One of the best ways to start a home healthcare business with no experience is to research the industry and find a mentor. You can also look for online courses or webinars that can teach you the basics of starting and running a home care business. Additionally, you can join industry associations and networking groups to learn from other experienced medical professionals in the field. 

Finally, create a business plan and track your progress. There are many helpful resources online, including the U.S. Small Business Administration (SBA). The SBA offers free counseling and workshops for small businesses and online resources like templates and calculators.

What type of non medical home care business is most profitable?

Businesses that provide home care services to seniors and disabled individuals are the most profitable. There is a high demand for these services, and the market is growing as the population ages. Home health care agencies that offer nursing and other medical services are also in high demand. However, the profitability of a home care business can vary depending on the location and the services offered. So, it is essential to do some research before starting any home care business.

Other profitable home care businesses are personal care, companion care, and homemaker services, which include tasks such as cooking, cleaning, and running errands.

How much does it cost to start a non medical home care business?

The cost of starting a non medical home care business can range from a few thousand dollars to over $50,000. The most important factor is the size and scope of the business. The startup costs include licensing and insurance fees, equipment, marketing materials, and staff training.

What are the ongoing expenses for a non medical home care business?

One of the most significant ongoing expenses for a home care business is hiring qualified caregivers. Other ordinary expenses include advertising and marketing, office supplies, and liability insurance. It's important to calculate these costs and factor them into your overall plan to ensure your business is profitable and sustainable in the long term.

How does a non medical home care business make money?

Non medical home care businesses make money by charging a fee for their services. This fee can be either a flat rate or based on time. Additionally, some non medical home care businesses receive payments from health insurance providers or government programs. Finally, non medical home care businesses can also earn money by recruiting new clients.

Is owning a non medical home care business profitable?

There are many reasons owning a non-medical home care business can be profitable. First, the number of people over the age of 65 is growing rapidly. As more people reach retirement age, there will be an increasing demand for home care services. Additionally, the Baby Boomer generation is increasingly interested in staying in their homes as they age, rather than moving to a retirement community. This trend indicates increased demand for home care services.

Why do non medical home care businesses fail?

Non medical home care businesses fail for various reasons, including a lack of industry knowledge, inadequate planning, and insufficient capitalization. Other reasons include failure to properly screen and train employees, marketing mistakes, and not pricing services correctly.

Other Helpful Business Plan Articles & Templates

Non Medical Home Care Business Plan Template

Our free non-medical home care business plan template. Our template will help you identify your target market, establish your unique value proposition, define your service offerings, and outline your financial projections. Start or grow your home care business with our comprehensive and easy-to-use template.

Download the business plan today!

This template has been designed to help you start or grow your home care business by providing you with a comprehensive, easy-to-use guide for developing a successful business plan.

Starting a non-medical home care business can be a daunting task, but with the right plan in place, you can set yourself up for success. Our template will help you identify your target market, establish your unique value proposition, define your service offerings, and outline your financial projections.

The first section of our template is the Executive Summary, which provides a brief overview of your business plan. It should include a summary of your company, the products or services you offer, and your target market. The Executive Summary is the first thing investors or lenders will read, so it is important to make a good impression and capture their attention right away.

The second section is the Company Overview, which should provide a more detailed description of your company. This section should include information on your company’s history, mission statement, and business structure. It is also a good place to include any legal or regulatory requirements that apply to your business.

The third section is the Market Analysis, which will help you identify your target market and competitors. This section should include a detailed analysis of the demographics of your target market, as well as the size of the market and any trends or opportunities that may exist. You should also include information on your competitors, such as their strengths and weaknesses and any opportunities for differentiation.

The fourth section is the Service Offering, which should provide a detailed description of the non-medical home care services you offer. This section should include information on the types of services you provide, the qualifications of your staff, and any special equipment or facilities you use.

The fifth section is the Marketing and Sales Strategy, which should outline how you plan to reach and acquire customers. This section should include information on your pricing strategy, sales channels, and marketing tactics.

The sixth section is the Financial Projections, which should provide a detailed analysis of your projected revenue and expenses. This section should include a profit and loss statement, a balance sheet, and a cash flow statement. It is important to provide detailed and realistic projections to show investors or lenders that you have a solid financial plan.

Our non-medical home care business plan template is easy to use and can be customized to fit the unique needs of your business. It includes helpful tips and examples to guide you through each section, making it easy to complete your plan in a timely and efficient manner.

In addition to our free business plan template, we also offer a variety of resources to help you start or grow your non-medical home care business like an nemt financial projection spreadsheet . Our team of experts is available to provide guidance and support throughout the process, from identifying your target market to securing financing.

Starting a non-medical home care business can be a rewarding and profitable venture, but it requires careful planning and strategy. Our free non-medical home care business plan template is the perfect tool to help you get started and take your business to the next level. Download our template today and begin building your business plan.

Non Medical Home Care Business Plan Frequently Asked Questions

Q: why do i need a business plan for my non-medical home care business.

A: A business plan is a roadmap for your business, providing a detailed plan of action and setting clear goals and expectations for the future. It is essential to have a business plan if you are seeking financing from investors or lenders, but it is also a valuable tool for organizing your thoughts and ideas and making informed decisions about your business.

Q: Can I customize the non-medical home care business plan template to fit my specific business needs?

A: Absolutely! Our business plan template is designed to be customizable, allowing you to tailor the plan to your specific business needs. It includes helpful tips and examples to guide you through each section, but you are free to modify and adjust the template as needed to fit your unique situation.

Q: How do I use the financial projections section of the non-medical home care business plan template?

A: The financial projections section of the template is where you will outline your projected revenue and expenses. It is important to provide detailed and realistic projections to show investors or lenders that you have a solid financial plan. The section should include a profit and loss statement, a balance sheet, and a cash flow statement. Using a tool like our home healthcare financial projection template makes creating accurate projections for your business plan very easy to do!

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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High-Demand Home Care: The Complete Guide to Starting a Non-Medical Home Care Business

The home care industry is booming. With  $93 billion in annual revenue , over 404,000 businesses, and a yearly growth rate of 3.4 percent, there couldn’t be a better time to start a business in this industry.

But do you know what it takes to start a non-medical home care business and find success?

Whether you’re a newbie entrepreneur or a seasoned pro, you’re likely to run into challenges if you don’t take your time to study the market, craft a solid business plan, and get other basics right.

Eager to learn?

Here is the lowdown on how to break into the non-medical home care business industry.

Understand What a Non-Medical Home Care Business Does

The first step to starting any business is to research and understand the kind of problems it solves.

A non-medical home care business typically caters to adults who’re unable to take care of their own living needs. Examples of common services include:

• Bathing and grooming
• Laundry and house cleaning
• Shopping for groceries and other home supplies
• Socialization and companionship
• Reminding clients to take their medicines
• Meal planning and preparation
• Transporting/accompanying clients to their errands
• Helping clients perform physical exercise often with the instructions of a therapist.

As you can see, these services aren’t medical in nature. And to excel in providing the services, home care companies rely on family caregivers or home care aides.

Now that you know what your business will do, let’s focus on how to build it from the ground up.

Draw a Business Plan

One of the biggest mistakes you can make as an entrepreneur is to start a business without a business plan.

This is the document that describes the nature of your business, your professional background, the business’ organization structure, sales and marketing strategy, financial forecasts, and other important details. In short, it’s your blueprint to success.

If you’ve no business plan writing expertise, hire a small business consultant to help you write it.

Get Your Funding Ready

The business plan will give you an idea of how much money you’ll need to set up the business and keep it running until it’s turning a decent profit.

The question is do you have the money ready? If you don’t, it’s time to find a funding source.

One option is to get in for a business loan from a traditional bank. However, your chances of getting approved will depend on your personal credit score, strength of your business plan, and relationship with the bank. If banks play hardball, consider approaching hard money lenders, as their loans only require collateral.

You could also raise money from friends and family, seek out angel investors, or run an online crowdfunding campaign.

Regardless of your funding source, don’t make the mistake of starting the business without adequate capital at hand. You’ll likely run it cash flow problems, which is one of the leading causes of small business failure.

Identify a Suitable Location

How do you find the ideal location for your new business?

First, have a good knowledge of your target market. In this case, we’re targeting the senior population.

Next, find a location with a high senior population. The higher the population of potential clients, the more sales you’re likely to make.

Another factor to consider is competition. How many home care businesses are in your preferred location? Are there any large, dominant players in the market?

An ideal location shouldn’t be overly competitive; otherwise, your new business will struggle to attract clients.

Also, consider the general accessibility and security of the area. You want a location that enables your home caregivers to access clients’ homes easily and safely.

Register the Business

With a location in mind and armed with the startup capital, you’re ready to make it official!

Settle on a business name and then head over to the relevant agency in your state and register the business . 

In addition to business registration, most states require non-medical home care businesses to obtain a license. The requirements for getting licensed vary from state to state, so be sure to know what your state needs and prepare yourself adequately before applying.

Set Up Your Office and Build a Team

Although most of the work will be happening in clients’ homes, your office plays a central role in coordinating your operations.

As such, get a space in your ideal location and create an ideal working environment. This involves installing furniture, computers, phones lines, and other .

Once that’s done, focus on building a team of workers. At the start, you only need a few caregivers, an office administrator, an accountant, and a sales representative. As the business grows, you’ll add more staff as needed.

Keep in mind, home care aides are the face of your business. After hiring, it’s important to put them through additional training to improve their skills and ensure quality service delivery.

Market Your Business and Wow Your Clients

The last (and probably the hardest) step to starting a non-medical home care business is getting your first batch of clients.

This is why you need to invest in marketing. Start by a building a business website and then go social.  

Although you can do marketing in-house, you’ll get the most out of your marketing dollars if you outsource the task to a digital marketing agency.

As your marketing rolls into gear, potential clients will start making inquiries and some will sign up for your services. Be sure to wow them.

In addition to providing the home care services they need, go an extra mile recommend resources such Inogen Connect app that’ll help improve their health and make their lives more comfortable.

Build a Thriving Non-Medical Home Care Business

Starting a non-medical home care business is an opportunity to make a difference in the lives of people in need of elderly care. And as the baby boomer generation ages, your target market will only keep increasing.

Use our guide to build the business and grab a share of the market before it gets too competitive.

As you do that, keep coming back to our blog for more .

Next post: Is the Quote Fair? How to Calculate an Insurance Premium

Previous post: What is SR-22 Insurance and Does Your Business Need it?

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How To Start a Non-Medical Home Care Business

Starting a non-medical home care business is a great way to be your own boss and help others in your community. 

Here are the 8 steps you can take to get started on building your very own non-medical home care business.

8 Steps to Launching a New Non-Medical Home Care Business

1. name your non-medical home care business.

Give your non-medical home care business an identity so people will think of it as a well-known and respected brand. You can take the name of your non-medical home care business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your non-medical home care business is to make it sound appealing and trustworthy so that potential clients will be motivated to use your services. 

2. Choose a Legal Form for Your Business

By incorporating your non-medical home care business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your non-medical home care business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common non-medical home care business structures .

3. Write a Non-Medical Home Care Business Plan

All non-medical home care business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write a non-medical home care business plan .

4. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your non-medical home care business.

For example, if you’re going to be providing care in the home, you’ll likely need a business license from your state’s department of health. 

You must also register your non-medical home care business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper non-medical home care business licenses .

5. Determine Your Budget & Apply for Funding as Needed

In developing your non-medical home care business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your non-medical home care business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your non-medical home care business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting a non-medical home care business to help you determine if funding is needed. 

Read our article about how to fund your non-medical home care business . 

6. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your non-medical home care business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in a customer relationship management (CRM) system to manage client information, as well as marketing automation software to generate leads and grow your business.

Other essential non-medical home care business startup technology includes:

-An appointment scheduling system

-A payment processing system

-A project management tool

7. Market Your Non-Medical Home Care Business to Potential Clients

Before you start selling your services , you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the non-medical home care industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Non-medical home care businesses should consider the following promotional strategies for which you should start getting prepared: 

-Develop a sales pitch

-Create an email list

-Attend non-medical home care trade shows and events

-Develop partnerships with other businesses

-Get involved in the community

Read our article about how to market your non-medical home care business for more tips.

8. Get New Clients & Grow Your Business

When you promote your services , you’ll start to get interest from potential clients . 

Make sure you’re ready to serve these clients . Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your non-medical home care business.

Read our article about how to effectively grow your non-medical home care business to learn more.

Starting a Non-Medical Home Care Business FAQs

Why start a non-medical home care business.

There are many reasons to start a non-medical home care business. First, the industry is growing rapidly due to aging Baby Boomers and advances in home health care technology. This provides entrepreneurs with a great opportunity to enter the market and be successful.

Second, starting a non-medical home care business is a way to make a difference in the lives of your clients. You’ll be helping seniors and other individuals live independently in their homes by providing them with essential care services.

Third, starting a non-medical home care business is a great way to be your own boss and achieve financial independence. 

What are Some Tips for Starting a Non-Medical Home Care Business?

Here are some tips for starting a non-medical home care business:

• Research the market. 
• Develop a business plan. 
• Choose the right location. 
• Train your staff. 
• Invest in the right technology. 
• Promote your business. 
• Get involved in the community. 
• Establish partnerships with other businesses. 
• Focus on quality. 
• Get new clients and grow your business.

Where Can I Find a Simple Checklist for Starting a Non-Medical Home Care Business?

A simple checklist to use when starting a non-medical home care business is as follows:

• Name Your Non-Medical Home Care Business : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Write a Non-Medical Home Care Business Plan : Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses : In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed : You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
• Get the Technology & Software Needed to Run Your Business Efficiently : You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your Non-Medical Home Care Business to Potential Clients : A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
• Get Clients & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services . 

Starting a non-medical home care business becomes easier if you follow the tips outlined in this article. Remember to research the market, develop a business plan, and invest in the necessary technology and software. Most importantly, focus on offering high-quality service and attracting new clients. 

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3 Simple Steps to Start Your Own Non-Medical Home Care Agency

The home care field is rapidly expanding. In fact, Home health care revenue in the U.S. has grown to $97 billion . This massive shift has been driven by an expanding older adult population who are overwhelmingly interested in aging in place. AARP reports that 90% of seniors plan to remain in their homes as they age today. 

With such explosive and ongoing industry growth, it’s no surprise that savvy caregiving professionals and entrepreneurs are considering throwing their hats in the ring in creating their own home care agencies.

One of the fastest-growing sects of the home care agency is non-medical services , which commonly include support with activities of daily living, like cleaning, safety checks, and socialization. Read on to learn how to get started with your own home care business.

Medical vs. non-medical home care business

First and foremost we need to make the distinction between medical and non-medical home care agencies. 

Medical home care is provided by medical professionals and includes wound care and general nursing services, such as monitoring blood pressure and mental state. This type of care is typically needed by senior citizens and those recently discharged from the hospital. 

Want a deep-dive on starting a medical home care business? Start here .

Non-medical home care is provided by professional caregivers or other (licensed or unlicensed) non-medical personnel and is based around essential day-to-day assistance. For example, home care aides will prepare meals, clean the house, help change or dress an individual, or drive them to or from doctors’ appointments. They might also play cards or board games to keep seniors cognitively engaged. 

Read on for more on starting your non-medical home care business.

Step 1. Structure and incorporate your home care agency

The first step in building a successful non-medical home care agency is to decide on a name. Once you have a name, you’ll be able to incorporate your business and access an Employer Identification Number (EIN).

In many states, a home care business must apply for a specialized license (get your EIN ready -- you’ll need it.) Currently, only 28 of the 50 states require a specialized license, but you will need to contact your state to get the latest information.

Find non-medical home care licensing requirements in your state here.

Once you have your paperwork and licensure underway, it’s time to think about your business plan. What services will you offer? Who is your ideal client? How can you target your services, business structure, and messaging to most effectively meet their needs?

The answers to these high-level questions then should be reflected in your budget. Be sure to outline a budget that includes the many moving pieces of owning and operating a service-based business. 

Small business experts at BizInsure recommend including the following items in your non-medical home care agency budget:

• A professional website
• The cost of incorporating your business
• Cost of software (billing, scheduling, marketing, communication, etc.)
• Marketing (flyers, posters, billboards, online advertisements, etc.)
• Licensing and certification materials and test costs
• Payroll (if you are hiring additional staff)
• Office equipment and supplies
• Office costs (not applicable if you are working out of your own home)
• Insurance (liability, automotive, etc.)
• Nursing supplies

Step 2. Staff your home care agency

Some home care business owners opt to begin with a single caregiver model, wherein you are both the business owner and the skilled care for your clients. Compensation for non-medical care services ranges from $13 -$35 per hour by state. Considering the national average of $27 per hour, a single-person care agency could expect to earn $50,000 per year or more – depending on how much you charge for your services.

However, when you expand your company to include multiple caregivers and home health aides , profits for the business owner typically increase drastically, which is why many home care agencies keep multiple caregivers on staff. 

Unfortunately for new agency owners who are hoping to grow profits , hiring and retaining caregivers can be challenging, given the shortage of caregivers . To address this dynamic in the field, the majority of savvy home care agency owners are offering advanced training and advancement opportunities for their staff.

Step 3. Market and grow your home care agency

Now that you have the basics in place, you’re ready to start attracting and growing your client base. Marketing your new home care agency is a critical part of increasing your revenue and ensuring the long-term success of your business. Home care agency owners should think of marketing efforts on two levels:

Brand marketing:

These are your high-level marketing efforts that help establish your brand as a trustworthy option for clients. High-level brand marketing includes aspects like developing a professional website, creating active social media channels, and securing a google business and directory listening with other reputable sites. 

You might create a blog on your website to demonstrate your caregivers’ expertise, or create caregiver bio pages to humanize your team, and create a packet of marketing materials that accessibly outlines your services for potential clients.

Local marketing:

Local marketing is critical when providing a community-based service like home care. Try these local marketing ideas to get your business off the ground and established in your community.

• Set up your google business listing to connect with potential clients and their families searching online for services
• Connect with local hospitals, nursing homes, and medical centers to create an in-person referral network. 
• Attend community events with marketing materials to introduce your business to your potential client base. 
• Create social media ad campaigns to target local clients 

Not sure where to start? Download our free toolkit for marketing your agency today.

Start growing your agency today

The need for qualified non-medical home care services is on the rise. If you’re ready to build a successful business serving your community and beyond through a non-medical home care agency, we’re here to help. Learn more about how CareAcademy can help you build your home care business . 

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Senior Service Business

The Best Home-Based Senior Service Businesses You Can Start On A Shoestring

How To Make Money With A Non-Medical Home Care Business

By Craig Wallin

Most private non-medical care providers are hired by the spouse or adult child when clients are not ready to move to an assisted living facility or prefer home care as a more affordable alternative to a care facility.

Almost all non-medical care is “private-pay,” which means the bills are paid directly by the client or someone in their family. This means caregivers get paid promptly and often earn more hourly than when billed through an insurance company.

Non-medical home care rates currently range from $20 an hour to $40 per hour, depending on the location. Small towns and rural areas, where living costs are lower, are less, and big cities, where living costs are high, tend to be on the high side. Still, the national average is $27 per hour, which works out to $54,000 a year with a 40 hour work week.

Many caregivers who start their own private duty home care business are already working with seniors, but want to make more money. For example, Tricia Moore was working at an assisted living facility, and was frequently asked by her patients and their families if she was available to visit them regularly when they returned home.

This happened over and over again, so she decided to become a private-pay caregiver and start her own business. After a few months, she was totally booked and making double what she was paid at the nursing home. That’s the financial advantage to being your own boss – the client pays the same hourly rate, but you get to keep it all.

It’s important to remember that starting a non-medical home care business is not a get-rich scheme, but a great way to earn a solid income helping seniors live an independent life. That said, there are many caregivers who start out as a “lone eagle,” then expand by hiring employees because the demand is so great. It’s not uncommon to build a million-dollar homecare business in just a few years if that’s the goal.

Related posts:

• Help Homebound Seniors With a In-Home Eldercare Business
• How To Start An Eldercare Business in 9 Easy Steps
• Help Seniors Stay Independent With a Non-Medical Home Care Business
• How To Start An Eldercare Business

How to craft a successful home care business plan

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As a home care provider, you run your business with compassion and knowledge of the job and the local community you work with. After you’ve learned more about how to become a caregiver and how to start a home care business , you’re ready to formalize your ideas with a business plan.

How to create a home care business plan

Your business plan is an essential part of the portfolio you’ll present to banks, investors, and partners before launching your company. Every entrepreneur can benefit from a business plan that helps you turn your vision into action and strategize for success. For home care professionals, there are unique additions and considerations for your business plan. From determining your core local clients to developing the marketing plan to reach them, this guide will walk you through nine sections for your home care business plan.

1. The executive summary

The executive summary kicks off your business plan and hooks whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out in your business plan.

A home care business summary should include:

• Your mission and the populations your business will serve 
• A list of your primary services 
• The demand for these services in your community
• What sets your home care business apart from competitors
• Your vision 
• A summary of funding needs

2. The company description

As a home care business working with clients in need, your professional background should be front and center. Your company description offers a snapshot of you and your business, and should include:

• The registered (or intended registered) name of your business
• The location of your company headquarters, and the neighborhoods, area, or city your business will reach
• Management, primary personnel, and their professional backgrounds
• Any licenses or certifications your staff has

Different types of home care services will need different certifications, like medical home care companies compared with senior transportation providers, for example. Make sure to research and include the requirements in your county, city, and state. 

If you’re in the preliminary stages of creating your home care business and haven’t secured the required licenses yet, mention any certifications you’re pursuing in this description.

3. Your business mission and goals

The mission and goals section of a business plan outlines the primary objectives of your company and how you plan to achieve them.

As more Americans advance into the senior age bracket, demand for credible home care businesses is rising. This need can help position your business for success and give you more opportunities to refine your mission and select specific populations to focus on. 

The need for home care help for senior relatives in particular has grown. As home care professional Christine Friedberg reflects, “I used to get on the phone and talk with clients about home care being an option for them or for their loved one, but it was like a new concept…For a long time, we were trying to educate the community about what home care was. Demand is greater than ever now.”

Medicare’s Triple Aim program may provide general inspiration for your own company goals. Their three pillars are :

• Centering and improving patients’ experience of care
• Improving health outcomes of patients served
• Mitigating the cost of care for individuals

From a business perspective, working with specific demographics may give you a leg up on funding. Based in Alexandria, VA, Griswold Home Care works with the area’s large population of aging veterans. To reach more of them, Griswold joined the cross-regional VA Community Care Network to provide in-home services to veterans needing extra support at home.

Not only was Griswold able to reach a specific community in need, but the program also helped this local home care business secure funding directly from the Department of Veterans Affairs . “We’ll see anywhere from 5 to 20 hours a week that the VA is covering, in terms of actually contracting with us directly. They pay us directly…so it’s very easy for the veteran to get in, take advantage of this program and take advantage of this care.”

In the home care industry, other demographics include:

• LGBTQ senior citizens
• People with Alzheimer’s
• People living with disabilities
• Non-seniors living with disabilities
• Adults whose first language isn’t English

Keep your demographic in mind as you refine your company’s identity and plan for growth. It will determine the steps you’ll take to fund your business and reach the neighbors who need you most.

4. Your services

The services section of your home care business plan sets the vision for what your business will specifically do. There are two main types of home care companies and services:

• Non-medical home care services – This type of home care business is not licensed to administer medical services or healthcare to its clients. Instead, they provide support, companionship, and home assistance. Services may include driving clients to doctor’s appointments, taking them to the park, or preparing meals.
• Medical home care services – Medical home care providers are staffed by nurses or other medical professionals licensed to administer medical care to their clients.

With the growing need for at-home healthcare businesses, some of the most common home care services include:

• Assistance with dressing, bathing, and using the toilet
• Companionship and diversion
• House cleaning and support with daily chores
• Transportation
• Hospice care
• Continued education for older adults
• Physical therapy and rehabilitation
• Prescription fulfillment services
• Administering medication
• Tracking vital physical or psychological health 
• Senior citizen relocation assistance
• Specialty nursing for a long-term illness or disability
• 24-hour emergency services

Get specific about what caregiver duties you’ll provide your clients, narrowing down your list with the most needed services in your local community. With 1 in 3 U.S. households on Nextdoor , you’ll be able to connect with neighbors, and your most important clients, with a free business page.

5. Your management structure

This section of your business plan establishes the legal status of your company, which affects other details, from the extent of your liability as the owner to how you’ll file taxes.

The most common business structures for home care providers are:

• Limited liability company (LLC)
• Sole proprietorship
• Partnership
• Corporation

To choose the right business structure for you, consider:

• Liability – Every business is financially and legally liable to compensate for injuries committed on their watch. Consult with an accountant to take stock of your personal assets to choose a framework that gives you adequate protection.
• Taxes – Your home healthcare business structure will determine how the profits you earn are taxed, whether through your business, on your individual tax returns, or a hybrid of both. As a general rule, the larger your company is, or the more shareholders it has, the more complex the tax process will be.
• Growth expectations – Whether your home care company will focus on your neighborhood or expand nationwide, your business structure should reflect your desired administrative capacity and set the stage for investors who want to scale alongside you. 

While S corporations and C corporations are often better suited for larger-scale companies, it’s possible to change the legal structure of your organization as it grows. Consider hiring experts, like a lawyer and an accountant, to help you with this stage of the process, especially if they have advised other local businesses in your area.

6. Your marketing plan

Show potential funding partners you know the modern home care market and set your local business up for success with marketing goals that cover the following bases:

• Digital marketing - In a job as intimate as home care, any new caregiver business begins on the local level. Sign up for a free business page with Nextdoor to instantly unlock a network of verified neighbors near you. Keep your business page updated with your story, photos, and contact information so local clients can find you and easily get in touch. Introduce yourself, share job listings, and keep neighbors updated on your business with free posts or hyperlocal advertising tools to reach more clients in specific ZIP codes you want to grow your business in.
• Partnerships – Qualified home care providers may be eligible to partner with care networks already plugged into local consumer demand. If properly licensed, apply to enroll as a Medicaid or Medicare partner. 
• Word-of-mouth marketing – Since home care professionals are a part of their clients’ and families’ lives, your local reputation will be important. Build trust in you and your services with testimonials on your website and recommendations on Nextdoor. 72% of neighbors there have been influenced by a business recommendation and 71% have shared one. Consider sharing your website and Nextdoor page with former clients to ask them for a recommendation.

Anything that makes your home care business unique, include in this section of your business plan. With a growing population of aging Americans, entrepreneurs are getting creative about the types of care they offer to suit different lifestyles.

Take Dr. Bill Thomas . He thought there should be a senior care option in place of the traditional nursing home so he created Minka, a company that builds small dwellings tailormade for seniors who want extra assistance, community, and autonomy in their advanced years. Says Thomas, “I think there will continue to be congregate housing, but the more choices people find in front of them, the more they’ll find something that suits them best.”

7. Your core financials

The next two sections cover your financial history with projections for your home care business’s future. This will be important for your business strategy, as well as for potential lenders, investors, or partners. 

The finance section of your home care business plan should include:

• Income statement
• Balance sheet
• Expected revenue
• A list of your assets and debts
• A summary of company expenses
• Desired loans

If you plan to enroll as a provider through a network like Medicare, mention in this section of your business plan.

8. Financial projections

This section of your home care business plan is important if you’re asking for an investment of any kind as it covers the funding you’re requesting, what you’ll use it for, and your plan to pay it back.

Financial projections should cover at least three years. Fortunately, the home care industry is slated for financial growth in the coming years. In the U.S. alone, the compound annual growth rate for home health care is projected to be 14.2% between 2021 and 2027.

However you plan to grow your company, speak with your local bank to discuss the full spectrum of financial options before finalizing your business plan. 

You can also connect with fellow home care professionals through Nextdoor for more information on the local home care industry in and around your neighborhood. This will help you get a realistic sense of your financial plan and the next few years operating your business.

9. Appendix

Your business plan’s appendix is where you’ll include any supporting or miscellaneous information for your business goals that didn’t have a place in the earlier sections.

Consider including:

• The resumes or educational and professional backgrounds of you, the owner, and your core staff
• Medical or non-medical licensing, or the licenses you plan to secure
• Any legal permits your business needs or the ones you plan to secure
• Bank statements, loans, and personal or professional credit history
• Real estate information about your business’ headquarters, if applicable

Make local connections through Nextdoor

As more Americans age, local caregivers are increasingly integral to the health of their communities. An effective home care business plan should tell this compelling narrative, sharing why there’s a need for your services and what you’ll do to fulfill them in your area. 

If you’re just building your local home care business, start close to home with a Nextdoor Business Page. Signing up is free, takes just a few minutes, and will help you spread the word, turning your neighbors into your first clients. 

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How to Make a Non-Medical Home Care Business Plan?

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The Non-medical Home Care market is expected to expand in North America, particularly in the US, with the baby boomers of the 1980s, entering the 60s and 70s of their lives.

While in 2018, the seniors in the US society (65 years and above) comprised 16 percent of the population , this figure is expected to rise to 22 percent of the population by 2050 , or in just about 30 years.

That will be roughly 80 million people, which will constitute your target market for a non-medical home care business. Team Respect Caregivers brings to you, easy steps to make a non-medical home care business plan.

Non-Medical Home Care Business Plan

Non-medical home care businesses provide a variety of services – including but not limited to help with day to day household chores, personal hygiene and cleanliness, monitoring of timely medication and doctor-prescribed dietary requirements, mobility assistance, and a range of services aimed at improving the lifestyle of the elderly client.

While it is one of the businesses in which you will not have to immediately worry about the shrinking of your target market, expectedly this space will have a lot of competitors, vying for market share.

Therefore, to stay ahead of the competition, the first step is to create a detailed business plan, which will help you estimate the costs and plan for your finances.

What to Decide While Drawing Up a Business Plan?

Before firming up a business plan, you need to make a few decisions about your business – these are the catchment area of your business, foolproof and channel-diversified marketing, and advertising plan, and the scale of your business to start with as well as how you are planning to expand your business in future.

Market research will help you to identify the area which has a higher proportion of your target segment of customers – at the same time keep an eye open for the number of potential competitors that are operating in the same area and how they are doing.

Try to strike a balance between a good target market and a reasonable competitive landscape.

Also, to start with, we recommend you lay out a marketing plan which focuses on a smaller area and slowly widen the scope of the plan as you expand your business.

In the beginning, it is expected that your business will not generate much cash, hence, you would not want your marketing dollars to spread too thin and not be very effective.

It is always advisable in this kind of business (driven by reputation capital) to build a strong reputation within a local area, before venturing out of your stronghold.

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How Much Revenue Can You Expect per Customer?

Revenue per customer is a metric that closely reflects the health of your business – if your clients are paying you more on an average, either your service is high on customer satisfaction or your clients choose your business for more number of services or both.

It is important to set a target of revenue per customer before you start your business .

The average revenue per customer for non-medical home health care businesses is somewhere between $2500 – $3500 , depending on the responsibilities of the caregiver.

While you run your business, you must keep an eye on your revenue per customer metric and your aim should be to touch your target number as soon as possible.

Once you achieve your target number and a pre-determined number of customers, only then you should look to expand beyond your stronghold area.

Ways of Financing Your Business

Depending on your initial decisions and the initial scale of your business, it may take you anywhere between $ 75,000 to $ 200,000 to start your business. It may not be possible for you to cough up the entire amount yourself and you must look at debt sources.

In fact, your return on equity will improve drastically if you load your business with 50 – 60 percent debt, to start with. Typical funding sources will include bank loans and angel investors – however if you have access to friendly loans (funding from friends and family) it may be the cheapest source of funding for your business.

Franchise vs Non-Franchised Option

The benefit of going ahead with the franchise option of an already established brand is that there is a lot of brand equity, marketing, and training support. But, on the other hand, it will entail you a steep upfront franchise fee (that is almost 30 percent of total upfront cost).

Also, you need to pay a monthly/quarterly fee which is generally calculated as a percentage of your revenue. Even with these costs, oftentimes buying an existing franchise makes sense, because it will come with its ready base of customers and will generate a cash flow right from day 1.

Moreover, a lot of businesses may have been started about 30 years ago by the baby-boomer generation and the owners may be planning to sell it now and retire . Therefore, these business owners will be strongly motivated to sell, and you may have the opportunity to pick up an up-and-running business at reasonable valuations.

While you may have to pay an extra premium for the business because it is generating stable cash flows, but you save yourself the first few months of burning through cash and having to build your customer base from scratch which may be a difficult thing to do.

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What are the Costs Associated with a Non-Medical Home Care Business?

The costs associated with a non-medical home care business, or any business as such, can be categorized as one-time business set up costs (costs which you can capitalize and show as assets) and recurring business running expenses.

One Time Start-Up Costs

• Business Incorporation & Licensing: First and foremost, before running any other costs (except for probably costs related to market research), you should be getting your company registered and apply for the relevant licenses for operating your business. The home care business deals with sensitive information of clients – therefore, take extra care to be fully compliant with the starting up requirements. These are fees paid to government departments and should be in the range of $500 – $1,000, depending on the state or province in which you are setting up your business.
• Website & Company Logo: A website is absolutely essential nowadays, not only as a source of information about your company, but it will also help you take advantage of the digital marketing techniques that businesses have access to. The website should be as informative as possible, for the target segment, in this case, the elderly population. This will help you in establishing yourself as an expert in your area and will help you in creating trust among your target customers. The company logo should be closely aligned with the service your company provides and the vision of your company. While you can get a logo professionally designed at $500, a good and informative website may cost you anywhere between $8,000 – $15,000, including the content.
• Business Stationery, and Signage: Once you got the company logo developed, you can start printing company stationery, and signage. These will include business cards, marketing materials like brochures and pamphlets, and signage or standees to be put outside your office.
• Lumpsum Payments on Rental & Vehicle Lease: When you are leasing an office space for your business, it is common to have to pay the first 6 months’ lease at one go – this amount can be capitalized and amortized over time. The same goes for a vehicle lease – you may want to pay down a fraction of the cost to reduce your biweekly lease payments. However, initially, while you will require a vehicle for emergency purposes, starting off from your home office is not uncommon and saves you significant upfront investment in your business which may be better utilized in marketing or staffing activities.
• Software: Software like ClearCare or AxisCare are web-based or cloud-based applications that help you organize the activities of running the business – like tracking your leads, sending emails to leads, tracking conversion, scheduling new jobs and employees, invoicing clients, and collecting payments. While in the initial stages you may be able to manage your business on an excel sheet, it is better to start using the software as early as possible as it will reduce repetitive work, save you time, and are quite the value for money.
• Franchise Fee, if Applicable: Franchise fee is most likely to be the largest cost item among the one-time upfront costs. If you are following the franchise model, be prepared to provide for a large one-time payment equal to roughly 30 percent of your total upfront cost. All major home care brands will have a franchise page on their website – where you can find the cost of the franchise and the benefits that you will receive. Some brands allow for deferred payments for the franchise fee – you may want to decide the payment mode depending on the state of your finances.

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Ongoing Recurring Costs

• Staff Payroll: This should be, by far, the largest proportion of your business running cost – in fact, in this business the raw material is technically your staff. Ideally, payroll should comprise 50 – 60 percent of your entire business running costs. Fortunately, staff costs should be rangebound in your area. We recommend you hire staff at the higher end of the range which will help you attract good talent. It is particularly important in this industry as your staff will be the ambassadors for your business and will help you create reputation capital over time. Hiring mistakes may cost you dearer than any other business. Moreover, you will do well to keep only a small portion of your staff on the permanent payroll, the rest of your staff should be hired on contract so that you are able to closely match your staff strength with your business volumes. It is also advisable to have some bench strength, which will add on to your costs but will keep you prepared in times of more demand.
• Rental Expenses: This is the cost of your office space; However, as mentioned earlier, it is best to avoid this cost for as long as possible, at least till the time your business stabilizes or starts generating steady cash flows.
• Marketing and Business Promotion Expenses: Depending on your marketing plan, you may use a combination of local physical marketing and digital marketing. However, to start with, we recommend you use local marketing more as most of your customer leads should be generated locally. Over time, you will understand which marketing campaigns and channels are being more effective and it will help you rebalance your marketing budget across channels.
• Insurance: You must take a professional liability cover and a general liability cover in the name of your company for covering against the risks arising out of the crystallization of heavy claims and financial liabilities. There are multiple websites that can help you in estimating your insurance premia, depending on the assets covered, liability amount, and co-pay amounts. The premia for these covers are generally paid once a year and is a recurring cost that ensures your peace of mind.
• Interest on Loan: The interest rate charged for any debt that you take on may range anywhere between 5 percent to 12 percent. You should avoid taking loans which are even more expensive. Bear in mind that this is like a fixed cost and you will keep on incurring this cost irrespective of your business volumes, till the time you pay off the debt.
• Utilities: Utilities include the cost of communication (cold calling from a landline in your office for the purpose of lead generation), electricity, internet, heating & water charges. Though individually small numbers, these can add up annually to derail your return calculations, if not accounted for in your business plan.
• Franchise Fee, if Applicable: Businesses which start as franchisees of an already existing band have to pay a royalty to the umbrella brand at specific intervals. The extent of the franchise fee really depends on the brand, however, in most cases it is a percentage of sales. Businesses bear this cost as being a franchisee of a known brand reduces your own marketing spend – since the brand equity automatically generates some customers for you. Also, you may receive regular training for your staff and other benefits aimed at standardizing the brand’s services, in lieu of the franchise fee.
• Legal & Accounting Services: To be able to concentrate on your business, you must quickly offload two aspects of running your company to professionals with better knowledge – legal documentation and accounting services. Costs related to these services may be sporadic – accounting will be an annual or quarterly cost to be borne by you in lieu of tax filing services and preparation of company statements.
• Taxes: These are payments to be made to the government and heavily depends on the state or province of business operations. In the event that your business is running a loss in the first year, do not forget to check whether you can carry the losses for tax adjustment in the second year. Moreover, to make your business projections more accurate, make sure to take advantage of any depreciation or amortization benefits, depending on your capitalized costs of initial investments. The actual filing of the taxes is best left to the accountant that you would have hired.
• Miscellaneous Costs: Irrespective of how accurately you try to project the financials of the company when you actually run it, you are bound to incur miscellaneous expenses or out-of-pocket expenses. Examples of such expenses will be website maintenance costs, vehicle repair costs, office heating system repair costs, and so on. You really cannot project these costs and they loosely depend on the scale of your business. Typically, assuming cumulative miscellaneous costs of 2 percent of the annual revenue should serve your purpose.

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Conduct Breakeven Analysis and Payback Period

Once you have firmed up your business plan and have arrived at the projected earnings, it is time for the final part – the real stuff which any investor would want to see for the business – the breakeven analysis.

Breakeven analysis refers to the point in time by when you have recovered your initial investment, adjusted for the time value of money.

The longer the time taken to recover the initial amount, the more you need to recover to match that initial investment as time tends to devalue the currency.

For example, if you had invested $100,000 in your business (including debt), to start with, you would roughly need to have net earnings of $55,000 for 2 consecutive years to get back your money adjusted for the cost of the time value of money of around 5 percent per annum.

In this case, your payback period is 2 years.

Finally, it is often the case that you start deviating from your business plan projections as you start running your business. You may question the utility of creating a business plan in the first place.

However, having a business plan will make you better prepared to deal with unforeseen circumstances that crop up during business operations.

Therefore, even when you are some months into your business, do not forget to alter and adjust the plan and the projections as per your expectations – which will be different, now that you have some experience under your belt.

First Look: Understanding the Governor’s 2024-25 May Revision

May 2024 | By California Budget & Policy Center

• Table of Contents
• Our Statement on the May Revision
• Event registration: Examining the Governor’s 2024-25 May Revision

Introduction

Governor Gavin Newsom released a summary of the May Revision to his proposed 2024-25 California state budget on May 10, projecting a $44.9 billion shortfall, or $27.6 billion shortfall, when taking into account early budget action taken by the legislature in April to reduce the shortfall by $17.3 billion. While many of the details are forthcoming, the governor proposes to close the budget gap through the partial use of reserves, spending cuts, and delays or deferrals of spending authorized in earlier years. While the $201 billion General Fund spending plan would protect many investments made in prior years, it also includes cuts and delays to programs and services that affect the day-to-day lives of Californians, particularly foster youth, Californians with disabilities, immigrant communities, students, and families with young children. Notably, the administration’s strategy demonstrates continued resistance to adopting long-term revenue solutions, putting corporate profits over families. This shortsighted approach exacerbates wealth inequality, stalls progress, and undermines the governor’s vision of a California for all.

WHat is the May Revision?

Released on or before May 14, the May Revision updates the governor’s economic and revenue outlook; adjusts the governor’s proposed expenditures to reflect revised estimates and assumptions; revises, supplements, or withdraws policy initiatives that were included in the  governor’s proposed budget  in January; and outlines adjustments to the minimum funding guarantee for K-14 education required by  Proposition 98 (1988) .

The rapid shift from a budget surplus, as was the case in recent fiscal years, to the budget shortfall we face today, is a lingering effect of the unprecedented COVID-19 pandemic and its impact on the economy. The projected budget shortfall is primarily the result of state revenue collections that the administration now projects are $12.5 billion lower over the three-year budget window (fiscal years 2022-23 through 2024-25) than was anticipated in the governor’s January proposal. The shortfall reflects the steep stock market decline in 2022 — after significant growth in 2020 and 2021 — that negatively impacted income tax collections from high-income Californians and corporations, as well as the economic dampening effects of the Federal Reserve’s interest rate hikes.

Lower state revenues over the three-year budget window result in automatic adjustments to constitutionally-required funding allocations, including to the state’s main reserve and education reserve accounts, as well as reduced funding for K-12 schools and community colleges.

The governor’s proposed solutions to cover the shortfall would partially draw down on various state reserves . The solutions include using $12 billion enacted through legislative early action in April, however, just $3.1 billion would be used in 2024-25, and $8.9 billion would be shifted to 2025-26. The administration also proposes draining the Safety Net Reserve ($900 million), withdrawing $2.6 billion from the Public School System Stabilization Account for education, and leaving an estimated $22.9 billion for future use.

The administration’s proposals include billions in cuts, delays, and deferrals of critical investments intended to improve the health and well-being of all Californians. Reductions that will disproportionately affect the lives of low-income communities, Californians of color, Californians with disabilities, and families with children include, among others:

• Ongoing cuts to CalWORKs for supportive services, home visiting, and mental health/substance abuse services (despite draining the Safety Net Reserve intended to be used to avoid cuts to CalWORKs) and a one-time cut in employment services,
• Cuts to programs that help address homelessness and provide affordable housing,
• Indefinitely delaying further expanding child care slots, 
• Various reductions in investments in behavioral health, including cuts to infrastructure, housing, workforce, and youth behavioral health initiatives,
• Cuts in ongoing support for public health and one-time investments in the health workforce, 
• Cuts to services for Californians who are undocumented, including ongoing support for the expansion of In-Home Support Services (IHSS) and delayed expansion of the California Food Assistance Program (CFAP),  
• Pulling back investments in transitional kindergarten (T-K) facilities and pre-kindergarten (pre-K) inclusivity of students with disabilities.

The revised budget also continues to utilize a controversial accounting maneuver to shift $8.8 billion in K-12 schools and community college (K-14) costs  — on paper — from 2022-23 to later fiscal years and pay for these delayed expenses using non-K-14 funds. 

The May Revision proposals would protect and maintain some progress made in prior budget years to help improve economic security and opportunities for Californians with low incomes and Californians of color, including expanding full-scope Medi-Cal coverage to all Californians, maintaining investments in cash assistance through the CalEITC, Young Child Tax Credit, and Foster Youth Tax Credit, and temporary rate increases for child care providers.

However, state leaders have the tools and resources to prevent other harmful cuts. By further tapping into the state’s main rainy day fund and permanently reducing tax breaks for profitable corporations, state leaders can ensure corporations pay their fair share and avoid cuts to services that help Californians stay healthy, housed, and put food on the table.

This First Look report outlines key pieces of the May Revision to the 2024-25 California budget proposal, and explores how the governor prioritized spending and determined cuts to balance the budget amid a sizable projected state budget shortfall.

Budget Overview

Economic Outlook : Revised Budget Projects Moderate Job and Wage Growth Revenue : Revised Budget Reflects Additional $12.5 Billion Downgrade in Revenue Outlook Tax Policy : Modified Tax Proposals Include Temporary Business Tax Break Limitations Reserves : May Revision Includes Withdrawal of Reserve Funds, Proposes New Fund to House “Excess Revenue”

Coverage, Affordability & Access : Governor Upholds Medi-Cal Expansion, Amends MCO Tax, Proposes Harmful Cuts Health Workforce: Revised Budget Severely Cuts Health Care Workforce Development Behavioral Health : Behavioral Health Initiatives Mostly Sustained, But New Cuts Proposed Public Health : Cuts to Public Health Leave Californians Vulnerable to Future Threats

Homelessness & Housing

Homelessness : May Revision Reduces Limited Funding for Homelessness Housing : May Revision Proposes Deeper Cuts for Affordable Housing

Economic Security

Overview: May Revision Proposes Alarming Cuts to Vital Safety Nets Refundable Tax Credits : Revised Budget Maintains Tax Credits for Californians with Low Incomes Refundable Tax Credits: Revised Budget Does Not Implement Workers’ Tax Credit Slated for 2024 CalWORKs : May Revision Proposes Additional Cuts to Critical CalWORKs Support Services Food Assistance : Governor Proposes Cuts and Delays to Previous Food Assistance Commitments Child Care : Governor Maintains Temporary Rate Increase, Pauses Slot Expansion Californians with Disabilities : Governor Protects SSI/SSP but Cuts Key Services for People with Disabilities Immigrant Californians : Proposal Eliminates and Delays Vital Services for Immigrant Californians, Maintains Cut to Legal Services Domestic Violence : Governor Does Not Provide Needed Support to Domestic Violence Survivors

Early Learning & Pre-K : Transitional Kindergarten Expansion Continues While Facilities are Cut Proposition 98 : K-14 Education’s Minimum Funding Level Drops Due to Lower Revenue Estimates K-12 Education : Budget Proposal Relies on Reserves to Support K-12 School Funding Formula Community Colleges : Revised Budget Increases Reserve Withdrawals for Community Colleges Funding CSU/UC : Revised Proposal Maintains Deferrals for the CSU and UC Systems Student Financial Aid : May Revision Abandons Commitments to Expand Student Financial Aid

Justice System

State Corrections : May Revision Calls for Deactivating Prison Housing Units, but Not Prison Closures Retail Theft : Revised Budget Continues to Provide Over $100 Million to Address Retail Theft Proposition 47 Investments : Revised Budget Estimates Proposition 47 Savings of $95 Million for Local Investments

Workforce & Climate Change

Other/General Workforce : Governor Proposes Additional Cuts to Several Workforce Programs Climate Change : Revised Budget Proposes Further Cuts to Prior Environment Commitments

virtual event

How does the governor’s administration navigate and prioritize spending in the face of a challenging fiscal landscape?

Join us for this free, virtual event on May 22.

Revised Budget Projects Moderate Job and Wage Growth

The administration’s economic outlook projects trends in major economic indicators that affect state tax collections and revenues in the budget. The revised outlook projects steady, but slowing national economic growth into next year, with California job gains expected to remain relatively weak through 2025. The number of nonfarm jobs in the state is forecast to increase by just 0.1% in 2024 and 0.4% in 2025, following a stronger increase of 0.9% in 2023 and 1.5% in 2019, just before the pandemic. California’s unemployment rate is projected to remain relatively higher in the near term as well: 5.2% in 2024 and 5.3% in 2025, up from 4.7% in 2023 and 4.1% in 2019. Wages and incomes are also expected to grow more slowly this year and next than just prior to and coming out of the pandemic downturn. The revised budget does not project a recession in the near term, but does note that if inflation remains elevated, the Federal Reserve could maintain higher interest rates which could slow economic activity by more than projected. 

While the administration’s outlook is useful for understanding how economic conditions might impact budget revenues, it’s also important to consider how economic conditions are affecting Californians with low incomes, who count on programs and services funded by the budget. In March 2024, the majority of California households with incomes under $25,000 (55%) reported having difficulty paying for basic needs like food, housing, and medical expenses, according to the most recent US Census Pulse survey. Black, Latinx, and other Californians of color, as well as households with children were more likely to struggle paying for basic expenses. The Census data from March also show that 42% of Black households with children and 32% of Latinx households with children did not have enough to eat , compared to 15% of white households with children. Among all households with children, about one-quarter (24%) had insufficient food. In addition, the latest Census data show that California continues to have the highest poverty rate of the 50 states based on the Supplemental Poverty Measure, which provides a more accurate picture of poverty by accounting for differences in the cost of housing across communities. Housing costs in California typically exceed costs in the rest of the nation, and rents have risen sharply in many parts of the state in recent years making it difficult for Californians with low incomes to afford housing .

Revised Budget Reflects Additional $12.5 Billion Downgrade in Revenue Outlook

The governor’s revised proposal is based on an updated revenue estimate for the three-year budget window spanning fiscal years 2022-23 through 2024-25. After lower-than-expected tax collections since the governor’s January proposal, the administration now expects General Fund revenues to be about $12.5 billion lower over that window than the January estimate. This is before taking into account loans and transfers, the governor’s revenue proposals, and other budget solutions ( see Tax Proposals section ).

The administration continues to have a more optimistic revenue outlook than the Legislative Analyst’s Office, which recently projected that the three-year total of the “Big Three” General Fund revenues sources — personal income taxes, corporate taxes, and sales taxes, which together make up the majority of General Fund revenues — could be around $19 billion lower than the governor’s January projection.

After accounting for automatic spending changes resulting from the lower revenue estimate, the governor estimates that the downgraded revenue outlook results in a $7 billion addition to the three-year state deficit the governor identified in January. 

The administration expects state revenue growth to generally return to the pre-pandemic pattern after the dramatic spike in revenues during the pandemic as the stock market surged and then subsequently corrected.

Modified Tax Proposals Include Temporary Business Tax Break Limitations

In January, the governor proposed a modest package of revenue solutions that included limiting the extent to which businesses can use prior-year losses to offset their taxable profits (“Net Operating Loss carryforwards”), eliminating oil and gas tax subsidies, and other minor tax changes. These revenue proposals made up less than 1% of the total budget solutions proposed in January.

The May Revision modifies the January revenue-related proposals by:

• Replacing the previous Net Operating Loss proposal with temporary business tax benefit limits.
• Clarifying existing law for how some multinational corporations calculate their taxable income in California.

The updated proposal would suspend the use of Net Operating Losses for businesses with state income above $1 million, and limit total business tax credits that a business can use in a single year to $5 million. The tax credit limit would exclude Low-Income Housing Tax Credits as well as Pass-Through Entity Elective tax credits. These limitations would be in effect for up to three years, beginning with the 2025 tax year, and could be eliminated if the administration determines that the revenue situation has improved sufficiently by the 2025-26 May Revision. The administration estimates these limitations would raise revenues by $900 million in 2024-25 and $5.5 billion in 2025-26.

The administration expects this proposal to raise $216 million in the budget window.

While temporary limitations on businesses’ ability to reduce their state income taxes help to address the deficit in the short-term, the governor’s revised proposal does little to increase state revenues on an ongoing basis and misses key opportunities to make the state’s tax system more fair. Policymakers should consider permanent limitations on business tax credits — as some states already do — to ensure that businesses are not paying next to nothing in state income taxes when they turn large profits. State leaders should also explore other options to permanently increase state revenues by making the corporate tax system more fair and eliminating or reforming other costly and inequitable tax breaks , which are not regularly considered as part of the budget process.

May Revision Includes Withdrawal of Reserve Funds, Proposes New Fund to House “Excess Revenue”

California has a number of state reserve accounts that set aside funds intended to be used for a “rainy day” when economic conditions worsen and state revenues decline. Some reserves are established in the state’s Constitution to require deposits and restrict withdrawals, and some are at the discretion of state policymakers.  

California voters approved Proposition 2 in November 2014 , amending the California Constitution to revise the rules for the state’s Budget Stabilization Account (BSA) , commonly referred to as the rainy day fund. Prop. 2 requires an annual set-aside equal to 1.5% of estimated General Fund revenues. An additional set-aside is required when capital gains revenues in a given year exceed 8% of General Fund tax revenues. For 15 years — from 2015-16 to 2029-30 — half of these funds must be deposited into the rainy day fund, and the other half is to be used to reduce certain state liabilities (also known as “budgetary debt”).

Prop. 2 also established a new state budget reserve for K-12 schools and community colleges called the Public School System Stabilization Account (PSSSA) . The PSSSA requires that when certain conditions are met, the state must deposit a portion of General Fund revenues into this reserve as part of California’s Prop. 98 funding guarantee ( see Prop. 98 section ). In order to access the funds in the BSA and PSSSA, the governor must declare a budget emergency — an action that is not included in the May Revision or in the early budget action agreed to by the governor and Legislature in April, but will be necessary to access these funds.

The BSA and the PSSSA are not California’s only reserve funds. The 2018-19 budget agreement created the Safety Net Reserve Fund , which holds funds intended to be used to maintain benefits and services for CalWORKs and Medi-Cal participants in the event of an economic downturn. Additionally, the state has a Special Fund for Economic Uncertainties (SFEU) — a reserve fund that accounts for unallocated General Fund dollars and that gives state leaders total discretion as to when and how they can use the available funds.

The current-year (2023-24) budget, enacted in mid-2023, projected $22.3 billion in the BSA; $10.8 billion in the PSSSA; $900 million in the Safety Net Reserve; and $3.8 billion in the SFEU. However, revenue adjustments in the current year result in updated 2023-24 projections in the governor’s proposed budget — $22.6 billion in the BSA; $2.6 billion in the PSSSA; $900 million in the Safety Net Reserve; and a shortfall of $843 million in the SFEU, which fluctuates throughout the year based on changes in revenues.

In April 2024, the governor and legislative leaders agreed to an early action budget package to partially address the state’s budget shortfall that included drawing down $12 billion from the BSA, a proposal that was also included in the governor’s January budget proposal.

The May Revision:

• Includes the $12 billion withdrawal from the BSA, but spreads the withdrawal over the next two fiscal years — utilizing only $3.1 billion in 2024-25 and shifting $8.9 billion to 2025-26. 
• Withdraws all $900 million from the Safety Net Reserve, despite also proposing significant cuts to the CalWORKs program, a program the reserve is designed to protect ( see CalWORKs section ).
• Withdraws $5.8 billion from the PSSSA in 2023-24 and the remaining $2.6 billion in 2024-25.
• Projects a 2024-25 year-end SFEU balance of $3.4 billion.

In total, the May Revision proposes to withdraw less from the state’s rainy day funds for 2024-25 than the governor’s January proposal, despite the fact that the administration projects that the budget shortfall has increased since January. Taking into account the remaining reserves in the BSA and the SFEU, the governor’s May Revision projects total remaining reserves of $22.9 billion at the end of 2024-25, compared to $18.4 billion in the governor’s January proposal. 

Given that the administration’s approach to resolving the state budget shortfall includes an array of harmful cuts to vital programs and services that help Californians with low incomes, communities of color, and Californians with disabilities, state leaders appear to have additional room to responsibly draw upon reserves to protect those programs and also leave funds available to address future fiscal uncertainties.

New Fund to Capture “Excess Revenue”

The May Revision also signaled the administration’s intent to enact legislation to enable state leaders to save more during future upswings in revenue by requiring the state to set aside a portion of anticipated “surplus” funds — funds that exceed a yet-to-be-determined standard for historical trends. The administration notes that the funds would not be able to be committed until revenues have been realized. 

While the specifics of the governor’s proposal are not yet available, any efforts to set aside additional funds would likely interact with other constitutional requirements that affect state spending and reserves, including Prop. 4 (1979; the “Gann Limit”), Prop. 98 (1988), and Prop. 2 (2014). For instance, the administration notes that amendments would be needed to Prop. 2 to allow for increased deposits to the BSA. Any amendments to the constitutional provisions, however, would need to be approved by California voters.

State Budget Reserves Explained

See our report, California’s State Budget Reserves Explained , to learn more about the savings accounts policymakers can use to support Californians in times of budget shortfalls.

Governor Upholds Medi-Cal Expansion, Amends MCO Tax, Proposes Harmful Cuts

Access to health care is necessary for everyone to be healthy and thrive. About 14.5 million Californians with modest incomes — nearly half of whom are Latinx — are projected to receive free or low-cost health care through Medi-Cal (California’s Medicaid program) in 2024-25. Another 1.8 million Californians purchase health coverage through Covered California, the state’s health insurance marketplace. 

The May Revision maintains recent Medi-Cal expansions, but pulls back on other health care investments that were established in prior years. Specifically, the revised budget:

• Maintains the expansion of Medi-Cal eligibility to undocumented adults ages 26 to 49, but cuts $94.7 million to eliminate In-Home Supportive Services (IHSS) for all undocumented Californians.
• Cuts $280 million for Equity and Practice Transformation Payments to Providers.
• Cuts $62 million from the Health Care Affordability Reserve Fund intended to reduce cost-sharing in Covered California.
• Eliminates the Indian Health Grant Program.
• Freezes funding levels for county administration of Medi-Cal eligibility.
• Eliminates acupuncture as an optional Medi-Cal benefit for adults.
• Eliminates $2 million in ongoing General Fund for free clinics.
• Does not provide funding to reform the Medi-Cal Share of Cost program.
• Does not provide funding to implement continuous coverage for children from birth to age five.

These services help Californians with low incomes who are over the age of 65, blind, and/or disabled live with dignity in their own homes. Under this revised spending plan, about 14,000 Californians would lose access to IHSS solely due to their immigration status. This proposal is both harmful and xenophobic, potentially pushing immigrant families deeper into poverty. These cuts could also lead to increased state spending on nursing home care in the long run. State leaders should not compromise home care for thousands of Californians simply due to their immigration status.

These grants to certain Medi-Cal providers were intended to improve quality, health equity, behavioral health integration, and primary care infrastructure. The May Revision maintains $70 million General Fund expenditures included in the 2022 Budget Act.

These funds are critical for Californians who are uninsured and struggling to purchase coverage as well as for those who are insured but can’t afford to access the care they need.

This aims to improve the health status of American Indians living in urban, rural, and reservation or rancheria​ communities throughout California. The May Revision proposes to reduce $23 million annually beginning in 2024-25 to eliminate this program.

This reflects a reduction of $20.4 million in 2024-25 and ongoing. This reduction occurs at a time when counties are processing a high volume of renewals and many Californians are losing Medi-Cal coverage .

The estimated reduced General Fund cost for this cut is $5.4 million in 2024-25 and $13.1 million ongoing. Acupuncture is performed to prevent, modify or alleviate severe, persistent chronic pain resulting from a medical condition.

This provides primary care, preventive health care, and additional health services to medically underserved Californians.

This would alleviate financial burdens for many older adults and people with disabilities. Under the current Medi-Cal Share of Cost program, which forces many Californians to choose between paying for their health care, rent, food, or other basic needs. This reform was passed in the 2022 Budget Act but was subject to future appropriation. 

California was one of the first states to pass a policy that would ensure that children under age five can keep their Medi-Cal coverage without administrative renewals. Funding is needed to start the necessary steps to implement this policy change.

The May Revise also amends the Managed Care Organization (MCO) tax revenue and expenditure proposal. The MCO tax is a provider tax imposed by states on health care services that essentially reduces, or offsets, state General Fund spending on Medi-Cal. The federal government approved the initial MCO tax proposal last year. In January, the administration proposed to increase the MCO tax and the May Revision proposes an additional amendment to the MCO tax to include health plan Medicare revenue, resulting in an additional $689.9 million in reduced General Fund costs in 2024-25, $950 million in 2025-26, and $1.3 billion in 2026-27. These changes would be subject to federal approval. Overall, the May Revision includes $9.7 billion in MCO tax funds over multiple years to support the Medi-Cal program. However, rather than using $6.7 billion of this amount to continue Medi-Cal provider rate increases, as originally planned, these funds will be used to offset General Fund spending. 

The May Revise does protect some health care investments that were established in prior years. Specifically, the budget:

• Sustains the ambitious Medi-Cal reform effort known as CalAIM (California Advancing and Innovating Medi-Cal).
• Maintains one-time $200 million ($100 million General Fund) in 2024-25 to support access to reproductive health services.
• Maintains commitment to eliminate the Medi-Cal asset test for seniors and people with a disability.

This was originally introduced in 2019. The main goal of this initiative is to better support millions of Californians enrolled in Medi-Cal — particularly those experiencing homelessness, children with complex medical conditions, children and youth in foster care, Californians involved with the justice system, and older adults — who often have to navigate multiple complex delivery systems to receive health-related services. Initial components of CalAIM launched in the beginning of 2022 and the remaining components will go live over the next several years.

The administration plans to develop a federal demonstration waiver that would support access to family planning services for Medi-Cal enrollees as well as strengthen the state’s reproductive health safety net. Access to reproductive health services, including contraceptive care, sexually transmitted infection prevention and treatment, obstetrical care, and abortion services, have a profound impact on the lives of women and pregnant people.

Specifically, the revised budget includes $112.2 million total funds ($56.1 million General Fund) in 2023-24 and $227.2 million total funds ($113.6 million General Fund) in 2024-25 for the elimination of the Medi-Cal asset test which became effective on January 1, 2024.

Lastly, the May Revision includes directed payments to children’s hospitals and public hospitals. This includes an annual allocation of $230 million to support children’s hospitals, with half of these funds provided by the federal government and the remaining half sourced from the Medi-Cal Provider Payment Reserve Fund. 

Revised Budget Severely Cuts Health Care Workforce Development

Access to health care services is important for everyone’s health and well-being. The state’s workforce must meet the needs of Californians to achieve equitable access to timely and culturally competent health services. While state policymakers have made considerable investments in recent years to bolster the health workforce, investments in various health workforce areas still fall short. 

Despite the clear need to invest in the health workforce, the May Revision cuts over $1 billion over multiple years. This includes:

• $854.6 million General Fund across five years for various health care workforce initiatives.
• $189.4 million Mental Health Services Act Fund for behavioral health workforce programs.

This includes community health workers, nursing, social work, primary care education and training, and efforts to increase the number of underrepresented individuals in health professions. The May Revision proposes to cut $300.9 million in 2023‑24, $302.7 million in 2024-25, $216 million in 2025‑26, $19 million in 2026-27, and $16 million in 2027‑28 for these initiatives.

These cuts impact the social work initiative, addiction psychiatry fellowships, university and college grants for behavioral health professionals, expanding Master of Social Work slots, and the local psychiatry behavioral health program overseen by the Health Care Access and Information Department.

The May Revision also modifies previous plans to enhance Medi-Cal provider participation under the Managed Care Organization (MCO) tax proposal. While the revised budget maintains $727 million to increase provider rates for primary care, maternity care (including doulas), and non-specialty mental health services, it reallocates $6.7 billion previously intended for other health areas, including primary and specialty care in Medi-Cal, abortion and family planning access, clinics, and the Medi-Cal workforce pool. This redirection of funds towards existing Medi-Cal services is sensible in a budget deficit, but it raises concerns about the impact on timely access to health care services.

The health care workforce and access to health care services are intrinsically linked. If people cannot find a health care provider in their area or face extended wait times for an appointment, they do not have meaningful access to health care. State policymakers must continue to build a health care workforce that not only meets the needs of Californians but also mirrors the state’s diverse population in terms of race, ethnicity, sability, gender identity, and sexual orientation. Doing so will require sustained, ongoing investments, not cuts.

Behavioral Health Initiatives Mostly Sustained, But New Cuts Proposed

Millions of Californians who cope with behavioral health conditions — mental illness or substance use disorders — rely on services and supports that are primarily provided by California’s 58 counties. Improving California’s behavioral health system is critical to ensuring access to these services for all Californians, regardless of race, age, gender identity, sexual orientation, or county of residence. 

In recent years, state policymakers have launched various initiatives to transform California’s behavioral health system with the goal of improving access. Proposition 1 , the most recent of these initiatives, was approved earlier this year. Prop. 1 is a two-part measure that 1) amends California’s Mental Health Services Act and 2) creates a $6.38 billion general obligation bond to fund behavioral health treatment and residential facilities as well as supportive housing for veterans and Californians with behavioral health needs.

The May Revise includes some initial funding to begin Prop. 1 implementation, including:

• $126.9 million for the Department of Health Care Services in 2024-25.
• $85 million ($50 million General Fund) for county behavioral health departments.

Of this amount, $16.9 million is from the General Fund, $28.2 million is from the Behavioral Health Services Act Fund, $31.6 million is from the Opioid Settlement Fund, $10.4 million is from the Behavioral Health Infrastructure Bond Act, and $39.8 million is from the federal government.

This provides mental health and substance use disorder services to Californians through Medi-Cal and other programs.

In the governor’s January budget proposal and the revised budget proposal, the administration maintains funding to continue behavioral health initiatives that state leaders launched in recent years. For instance, the revised budget sustains the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) Demonstration , which aims to improve mental health services for Medi-Cal members. The administration assumes that implementation of BH-CONNECT will begin on January 1, 2025. Major reforms to the Medi-Cal program as well as the level of federal funding provided must be negotiated with the federal government through the Medicaid waiver process. As such, implementation will depend on the availability of funding and federal approval.

However, the revised budget also proposes a series of cuts and delays to other behavioral health initiatives. Specifically, the revised budget:

• Eliminates $450.7 million one-time from the last round of the Behavioral Health Continuum Infrastructure (BHCIP) Program.
• Reduces funding and modifies the Children and Youth Behavioral Health Initiative.
• Cuts $132.5 million in 2024-25 and $207.5 million in 2025-26 for the Behavioral Health Bridge Housing Program.
• Cuts $126.6 million ongoing General Fund for CalWORKs mental health and substance abuse services, effectively eliminating this service.
• Cuts $61 million General Fund in 2024-25 and ongoing for the Naloxone Distribution Project and Medication Assisted Treatment.
• Includes $27.2 million General Fund in 2023-24 and $37.8 million General Fund in 2024-25 for Community Assistance, Recovery, and Empowerment (CARE) Act.

This program provides competitive grants to expand the community continuum of behavioral health treatment resources. The May Revision proposes to reduce BHCIP funding by $70 million General Fund in 2024-25 and $380.7 million General Fund in 2025-26. While BHCIP will receive Prop. 1 bond funds, these funds are inadequate to address the overarching need for state investments. ( See homelessness section. )

The spending reductions — $72.3 million in 2023-24, $348.6 million in 2024-25, and $5 million in 2025-26 — impact school-linked health partnerships, various grant programs, a public education campaign, and a youth suicide reporting and crisis response pilot program. Of this amount, the administration notes that $140 million General Fund proposed in 2024-25 to support a platform is no longer needed. The revised budget does maintain $9.5 million ($4.1 million General Fund) in 2024-25 to establish a Wellness Coach benefit in Medi-Cal, which the administration proposed in January. Effective January 1, 2025, these coaches will offer wellness education, screening, support coordination, and crisis management services to children and youth in schools and other behavioral health settings.

This program aims to address the immediate housing and treatment needs of people with serious behavioral health conditions who are also experiencing unsheltered homelessness. The administration notes that $90 million in Behavioral Health Services Act funding would be provided in 2025-26, resulting in a net reduction of $117.5 million for that year. ( See homelessness section. )

California has led the way in expanding CalWORKs support services, recognizing families often need additional support, like mental health and substance use treatment, to improve their well-being and address barriers to work. ( See CalWORKs section. )

Naloxone is a life-saving medicine that reverses an opioid overdose and Medication Assisted Treatment is treatment for a substance use disorder that includes medications along with counseling and other support.

This is a plan to establish court-ordered treatment for people experiencing both homelessness and serious behavioral health challenges. The revised budget adjusts estimated county funding to align with recent trends in utilization. 

Investing in the state’s behavioral health system is crucial for supporting Californians who are coping with mental health conditions or substance use disorders. State leaders should continue to invest in the behavioral health system and address the behavioral health workforce shortage. Policymakers can also invest in efforts to make sure that the behavioral health workforce better reflects the diversity of all Californians, including their gender identities and sexual orientations.

Cuts to Public Health Leave Californians Vulnerable to Future Threats

Everyone should have the opportunity to be healthy and thrive. The California Department of Public Health as well as local public health departments are vital in protecting and promoting Californians’ health and well-being. From improving living conditions to promoting healthy lifestyles to responding to infectious disease emergencies, public health workers are essential.

Despite this important responsibility, funding has not kept pace with the cost of responding to ongoing and emerging health threats. Many Californians suffered during the COVID-19 pandemic due to the state’s lack of preparedness. Communities of color experienced higher rates of illness and death due to historic and ongoing structural racism that deny many communities the opportunity to be healthy and thrive. Structural racism continues to underscore the need to address the root cause of health disparities through public health initiatives. 

In an alarming move, the governor’s revised budget proposes significant cuts to public health investments that were established in previous years. Specifically, the May Revision eliminates $52.5 million in 2023-24 and $300 million ongoing General Fund thereafter to improve public health infrastructure at the state and local level. Under this revised spending plan, local health jurisdictions would no longer continue to receive a minimum base allocation to support workforce expansion, data collection and integration, and partnerships with health care delivery systems and community-based organizations. At the state level, these cuts will reduce the capacity to assess and respond to current and emerging public health threats and will weaken key functions such as emergency preparedness and public health communications.

These cuts to public health capacities are short-sighted and harmful. After years of underinvestment in public health, these dollars provided much-needed infrastructure support. Given that public health emergencies and climate change disasters often disproportionately impact people with low incomes and communities of color, these cuts undo progress to advance health equity. State leaders should ensure that counties and cities have the capacity to address ongoing and future public health threats.

May Revision Reduces Limited Funding for Homelessness

Having a place to call home is core to living with dignity and health. Yet homeless service providers served over 330,000 Californians experiencing homelessness last year, underscoring both the need and increased capacity of the state’s response systems. Homelessness providers and localities are serving more individuals and families than ever before partially due to previous one-time state funding investments that provided critical resources for homelessness prevention and resolution services. Despite this, the May Revision proposes no new resources and reduces previous allocations, effectively leaving no significant state funding to address homelessness in 2024-25 or beyond. 

The May Revision proposes to eliminate $260 million in supplemental grant funds for the  Homeless Housing, Assistance and Prevention (HHAP) Grant Program in 2025-26, but maintains the last round of funding in 2023-24. HHAP is critical as it provides local jurisdictions with flexible funds to address homelessness in their communities in a variety of ways, ranging from rental and operating subsidies to acquiring shelter, interim and permanent housing beds, and street outreach, among other uses. The May Revision also changes previously proposed funding delays into funding cuts for various homelessness programs that serve diverse populations.

These funding reductions include:

• A reduction of $132.5 million in 2024-25 and $207.5 million in 2025-26 for the Behavioral Health Bridge Housing Program.
• A reduction of $80 million General Fund for the Bringing Families Home Program.
• A reduction of $65 million General Fund for the Home Safe Program.
• A reduction of $50 million General Fund for the Housing and Disability Advocacy Program.

This leaves  $132.5 million General Fund in 2024-25 and $117.5 million ($90 million Mental Health Services Fund and $27.5 million General Fund) in 2025-26. These funds help provide immediate housing for people experiencing homelessness who have a serious mental illness or substance use disorder ( see Behavioral Health section ).

Appropriated in the 2022 Budget Act, which serves families involved in the child welfare system.

Appropriated in the 2022 Budget Act, which supports the safety and housing stability of individuals involved in Adult Protective Services.

Appropriated in the 2022 Budget Act, which assists people experiencing or at risk of homelessness to connect with disability benefits and housing supports.

Also notable is the increased reduction of $450.7 million one-time from the last round of the Behavioral Health Continuum Infrastructure Program (BHCIP), leaving $30 million one-time General Fund in 2024-25. This program provides competitive grants to expand the community continuum of behavioral health treatment resources ranging from wellness centers to psychiatric care facilities. BHCIP will be receiving $4.4 billion in bond funds through Proposition 1 , which voters approved in March 2024. The Department of Health Care Services is anticipated to open funding applications this summer and begin granting competitive awards by the fall ( see Behavioral Health section ). Prop 1. also restructures funds from the Mental Health Services Act, which exists separately from the state budget. It now requires counties to redirect 30% of these funds for housing interventions for people experiencing or at risk of homelessness with behavioral health conditions. However, these funds are inadequate to address the overarching need for state investments, as they focus solely on a specific subset of unhoused Californians.

May Revision Proposes Deeper Cuts for Affordable Housing

All Californians deserve a safe, stable, and affordable place to call home. However, many are blocked from this opportunity due to California’s affordable housing shortage and accompanying high housing costs. Renters, people with low incomes, Black and Latinx Californians, and undocumented Californians are especially likely to struggle to afford their homes . Yet despite noting California’s serious housing affordability challenges, the May Revision proposes deeper funding reductions and scarce new investments to affordable housing programs.

The administration now proposes $1.7 billion in General Fund reductions for various programs that support affordable housing development and homeownership . The May Revision reductions build on those in the January proposed budget . These include:

• An additional reduction of $236.5 million General Fund for the Foreclosure Intervention Housing Preservation Program in 2023-24 , bringing the total reduction to $474 million, which will eliminate the program.
• An additional reduction of $75 million General Fund for the Multifamily Housing Program , bringing the total reduction to $325 million General Fund, eliminating state funding in 2023-24.
• A newly proposed reduction of $127.5 million General Fund for the Adaptive Reuse Program , with $87.5 million from the 2023 Budget Act and $40 million from the 2022 Budget Act, which will eliminate the program. 
• An additional reduction of $35 million General Fund for the Infill Infrastructure Grant Program , with $25 million from 2023 Budget Act and $10 million from the 2022 Budget Act, eliminating state funding in 2023-24.
• An additional reduction of $26.3 million General Fund for the Veterans Housing and Homelessness Prevention Program from the 2022 Budget Act. The January proposed budget already fully reduced allocated state funds for this program in 2023-24.

The May Revision does reinstate an additional $500 million for state Low Income Housing Tax Credits – as has been done since 2019 – which help promote and finance affordable housing development. The administration also highlights Proposition 1 , approved by voters in March, as providing some funding for supportive housing programs. Prop. 1 provides roughly $2 billion in bond funds for the development of permanent supportive housing units specifically for Californians experiencing or at risk of homelessness with behavioral health needs (see Homelessness and Behavioral Health sections). Over half of these funds are designated for veterans. The Department of Housing and Community Development is anticipated to open applications for this funding at the end of 2024. However, these funds are specifically for supportive housing units and fall short in providing the diverse critical investments needed to continue meaningful, affordable housing development in California.

state budget terms defined

What’s the difference between a trailer bill and policy bill? A deficit and an operating deficit? And what exactly is a “Budget Bill Jr.?” Our Glossary of State Budget Terms answers that and more.

May Revision Proposes Alarming Cuts to Vital Safety Nets

While California has made significant investments in its social safety net in recent years, millions of people in communities across the state are still struggling to make ends meet as the cost of living continues to outpace incomes. Poverty, particularly among children and people of color, is on the rise. Despite this, the governor’s proposed budget includes very concerning cuts to vital safety net programs that may have devastating consequences for California families with the greatest needs. Cuts to the Department of Social Services, which administers the state’s safety net programs, total nearly $2 billion in the 2024-2025 fiscal year alone. These cuts target key investments in CalWORKs, food assistance, and child care. The budget proposal outright eliminates several critical support services for CalWORKs families, significantly reduces funding for program administration, and drains the dedicated reserves that were designed to protect the program from cuts.

Additionally, the proposal delays a long-awaited program expansion of food assistance to undocumented older adults and defunds a pilot to increase CalFresh benefits. In delaying and eliminating these vital services, which were small stepping stones to larger expansions that would close gaps in food insecurity across the state, the proposal would take California a step backward. In the child care space, the governor indefinitely delays his promised slot expansion despite the growing unmet need. Other cuts in this space would affect programs that serve foster youth and people with disabilities. 

California’s future largely depends on children whose entire lives will be shaped by the extent to which our state invests in their education, health, and well-being. But children cannot thrive unless their families thrive. Despite the budget shortfall, California’s leaders have a responsibility to ensure that our state’s children and families have the opportunity to reach their full potential.

Revised Budget Maintains Tax Credits for Californians with Low Incomes

California’s Earned Income Tax Credit (CalEITC), Young Child Tax Credit, and Foster Youth Tax Credit are refundable state income tax credits that provide tax refunds or reductions in state taxes owed to millions of Californians with low incomes, boosting their incomes and helping them to pay for basic needs like food. These credits also help to promote racial and gender equity by targeting cash to Californians of color, immigrants, and women who are frequently blocked from economic opportunities and forced into low-paying jobs that fail to provide economic security .

The administration maintains these tax credits in the revised budget while also continuing to cut funding for free tax preparation assistance, education, and outreach,  in half to $10 million in 2024-25, as proposed in January. These funds support community based organizations (CBOs) in their efforts to educate community members about state and federal refundable tax credits, connect eligible tax filers to free tax preparation services and assist tax filers in applying for or renewing Individual Taxpayer Identification Numbers, which some Californians must have in order to claim tax credits. Cutting this funding will reduce the capacity of CBOs to provide these services.

Revised Budget Does Not Implement Workers’ Tax Credit Slated for 2024

The 2022-23 budget included a new refundable tax credit for workers slated to become available in tax year 2024 if the Department of Finance determined that sufficient General Fund resources were available to support it. This credit was intended to help cover the cost of being a member of a labor union, particularly among workers with lower incomes who are typically excluded from an existing tax deduction for certain business expenses, including union dues. The administration does not include this new tax credit in the revised 2024-25 budget given the multi-year budget shortfall.

May Revision Proposes Additional Cuts to Critical CalWORKs Support Services

The California Work Opportunity and Responsibility to Kids (CalWORKs) program is a critical component of California’s safety net for families with low incomes. The program helps over 650,000 children and their families, who are predominantly people of color, with modest cash grants, employment assistance, and critical supportive services. The governor’s May Revision proposes deeply concerning cuts to CalWORKs administrative and program funding in addition to the significant cuts proposed in January.

The newly proposed cuts include:

• A one-time reduction of $272 million in 2024-25 for employment services under the single allocation funding.
• An ongoing reduction of $126.6 million for Mental Health and Substance Abuse Services, effectively eliminating this service. 
• An ongoing reduction of $47.1 million for the Home Visiting Program, which is designed to support positive health, development, and well-being of CalWORKs families with children under 2.

This amounts to a total cut of $445.7 million. Adding on to the cuts proposed in January , which totaled about $293 million in FY 24-25, this brings the total to about $739 million in cuts to CalWORKs, two-thirds of which would be ongoing. For many years, California has led the way in expanding CalWORKs support services, recognizing families have diverse needs and often need additional support to address barriers to work and improve their well-being. Taking programs away that offer mental health support, crisis intervention (Family Stabilization Program), and parenting support (Home Visiting Program), which research has shown can reduce or prevent the effects of adverse experiences for children, could jeopardize families’ ability to meet all program requirements and maintain access to their grants. Families not meeting strict program requirements will be at risk of punitive sanctions, which will only push them deeper into poverty. 

In addition to the proposed cuts, the governor’s budget does not include funding to redirect collected child support payments from the state back to former CalWORKs parents. For formerly assisted families, outstanding child support debt that is collected does not go to the families but rather goes to the state, county, and federal governments as “reimbursement” for the costs associated with the CalWORKs program.  Under this change , which was supposed to go into effect in April 2024, these families would have received an estimated annual total pass-through of $187 million annually.

Additionally, the governor proposes drawing down the full $900 million in the Safety Net Reserve, which was created to maintain existing CalWORKs and Medi-Cal benefits and services during an economic downturn ( see Reserves section ). While the governor does not propose cutting cash grants, given the projections of a sustained deficit in upcoming years, fully drawing down the reserve will leave CalWORKs vulnerable to additional cuts, similar to what occurred during the Great Recession . Closing the budget shortfall at the expense of families with low incomes is a short-sighted approach that could have detrimental effects on California’s economy and families facing the greatest needs.

Governor Proposes Cuts and Delays to Previous Food Assistance Commitments

All Californians should be able to put enough food on the table without having to go without other basic needs. But about 1 in 11 California households — and 1 in 8 California households with children — sometimes or often didn’t have enough to eat in March 2024, according to recent US Census Household Pulse data. In recent years, households have been hit with both rising food prices as well as the expiration of enhanced pandemic-era food benefits . 

CalFresh — California’s version of the federally funded Supplemental Nutrition Assistance Program (SNAP) — provides modest food assistance benefits to about 5.4 million Californians . The California Food Assistance Program (CFAP) is a state-funded program providing food benefits to certain non-citizens who are excluded from receiving federal  benefits, but undocumented immigrants are still excluded from CFAP benefits. The 2021-22 budget agreement included a plan to expand CFAP to Californians aged 55 and older who are excluded solely due to their immigration status. The expansion is currently set to begin in October 2025.

While the governor’s January budget proposal generally maintained prior commitments to  improve and expand the state’s food assistance programs, the May Revision proposes cuts and delays that would reverse or pause recent progress, including:

• Delaying the CFAP to include undocumented adults age 55 and older until 2027-28.
• Eliminating funding for the CalFresh Minimum Nutrition Benefit Pilot Program.
• Eliminating the Work Incentive Nutrition Supplement Program (WINS) beginning in 2025-26.
• Eliminating all remaining $111.6 million for the Older Californians Act Modernization Funding for Senior Nutrition.

This means those older adults will continue to be excluded from vital food benefits for the next several years. The administration also has not put forth any plans to end this exclusion for undocumented Californians under age 55, even while 45% of undocumented Californians with low incomes are affected by food insecurity.

The 2023-24 budget created this pilot program and included $15 million one-time funding for 2024-25 to provide a state supplement to increase the minimum benefit for selected households to $50 for one year. This pilot program was a small step in acknowledging the inadequacy of the current minimum benefit of $23.

WINS is a $10 supplemental food benefit for some working CalFresh households. The Legislative Analyst’s Office estimates that eliminating the program would reduce food benefits for around 125,000 households . The program is funded through CalWORKs but is only available for households not receiving regular CalWORKs benefits. The program was created with the primary goal of improving the CalWORKs Work Participation Rate (WPR), and it appears the proposal to eliminate WINS is a response to a recent federal law that would require the state to increase the supplement in order for it to continue helping the state achieve its WPR target, which could cost the state an additional $40 million each year. However, this elimination represents a loss of benefits for those households that rely on the additional assistance to keep food on the table, and the administration does not propose any relief for families to offset that loss.

The 2022 Budget Act included $186 million over three years to restore local services and supports for older adults that were reduced during the Great Recession; the 2023 Budget Act spread this funding out over five years instead of the original three years. This funding was intended to enable the local Area Agencies on Aging (AAAs) to continue to serve new meal participants brought on during the COVID pandemic. Taking away this funding could leave a gap in food access for a community struggling to stay housed and make ends meet .

Additionally, the budget does not include funding to implement Cal Grant reform, which would allow more college students to access CalFresh benefits ( see Financial Aid section ). The 2022 budget included a plan for Cal Grant reform, but it was subject to sufficient funds being available in 2024, so this was one of several “trigger” proposals included 2022 that will not be moving forward this year.

Finally, the budget includes $63 million in additional funding to implement the universal school meals program to account for an expected increase in the number of meals to be provided and a cost-of-living increase ( see K-12 Education section ). The $63 million is in addition to the increase included in the January proposal.

Governor Maintains Temporary Rate Increase, Pauses Slot Expansion

Thousands of families in California rely on subsidized child care and development programs administered by the California Department of Social Services (CDSS) as a critical resource for supporting their families to grow and thrive. While the state has made improvements to California’s child care system — most recently through reforming family fees and committing to an alternative methodology for child care provider reimbursements — the system is still falling short for many families and child care providers. For example, as of 2022, only one in nine children eligible for subsidized child care received services, despite growing demand. Moreover, the state released data this year showing that 73% of family child care providers do not pay themselves a salary. The administration therefore has an opportunity to advance progress toward creating an equitable child care system that meets the needs of all families and reflects the integral role of child care providers.

The governor’s revised budget:

• Pauses planned child care slot expansion at 119,000 new spaces.
• Maintains commitment to one-time funding for temporary subsidy rate increases but lacks a detailed plan for meeting federal deadlines to implement an alternative rate structure.
• Cuts funding for foster youth child care programs and support services.
• Includes $972 million in cost shifts to help ensure that unspent federal relief dollars are not reverted.

  In 2021-22, the governor committed to adding approximately 200,000 new child care slots by 2026-27. As of 2023-24, approximately 146,000 new slots were funded. Expansion was paused in 2023-24, and the state is still in the process of rolling out all intended new slots. Specifically, only about 119,000 new slots have been added. The revised 2024-25 budget paused slot expansion at this 119,000  “until fiscal conditions allow for resuming the expansion.” These proposed actions result in a reduction of $489 million in 2024-25 and $951 million in 2025-26 for subsidized child care slots. The April 24, 2024 Assembly Budget Subcommittee No. 2 on Human Services and Assembly Budget Subcommittee No. 3 on Education Finance discussed the possibility of creating a “reversion account” that would keep unspent funds for slot expansion within child care. This reversion account to maintain unspent dollars within child care is not included in the 2024-25 revised budget.

The 2023-24 budget provided a total of nearly $1.4 billion in one-time funds for temporary rate increases for providers reimbursed through the California Department of Social Services (CDSS). The 2024-25 proposed budget maintains this one-time funding. This one-time funding is set to expire July 1, 2025, which is also the federal deadline determining the new rate structure, per the alternative methodology currently being developed. If the new provider rates are not determined by this deadline, they will revert back to the 2018 regional market rate or standard reimbursement rate. The administration remains committed to developing a single rate structure and alternative methodology for child care reimbursements. However, given the need for spending associated with the alternative methodology to be included in the 2025-26 budget process and Child Care Provider United union negotiations, the lack of a detailed plan (i.e., confirming a timeline for when state agencies produce cost estimates) makes the state more vulnerable to missing the federal deadline.

The Emergency Child Care Bridge Program for Foster Children (Bridge Program) is administered through CDSS. The Bridge Program provides time limited vouchers for child care and child care navigator services for foster care system families and parenting foster youth. The revised budget reduces funding for the Bridge Program, reflecting a reduction of $34.8 million in 2024-25 and $34.8 million in 2025-26. Additionally, the revised budget maintains proposed cuts to the Family Urgent Response System (FURS) by $30.1 million. FURS is a hotline for current or former foster youth and their caregivers to call and get immediate help for any issue they may be experiencing. 

The Legislative Analyst’s Office (LAO) estimates that the state currently has $450 million of COVID-19 federal relief funds that may go unspent (set to expire September 30, 2024). Moreover, as of March 2024, the state had a Proposition 64 child care carryover balance of $296 million. The 2024-25 proposed budget plans to utilize all or a portion of these funds (among others) to offset General Fund costs for child care. Specifically, $596.8 will be shifted for 2023-24 and $375.5 will be shifted for 2024-25. This approach likely aligns with the LAO’s recommendation to minimize federal reversion of COVID-19 relief funds.

Governor Protects SSI/SSP but Cuts Key Services for People with Disabilities

All Californians should be included, supported, and treated with dignity in their communities, regardless of disability status. In California, people with disabilities can access several essential programs and services to manage their needs. The governor’s revised budget maintains a recent increase to the largest cash assistance program serving low-income Californians with disabilities, but builds on January’s proposed cuts and reduces support for key programs serving this population.

Specifically, the governor’s budget:

• Protects the recent grant increase to the State Supplementary Payment (SSP) program.

The Supplemental Security Income (SSI) and SSP programs together provide grants to over 1 million older adults with low incomes and people with disabilities to help them pay for housing, food, and other necessities. In recent years, state policymakers have made significant investments to increase SSP grants, however, the total grant levels remain below federal poverty levels. After deep cuts to the program during the Great Recession, grants cannot keep up with rising housing costs, making it difficult for low-income people with disabilities to make ends meet.

The governor’s January proposal included:

• Delaying, by one year, a scheduled raise for workers who care for people with intellectual and developmental disabilities.
• A funding delay for the Preschool Inclusion Grant program.

The governor proposes to implement this wage increase for around 150,000 workers on July 1, 2025 — one year later than anticipated. This delay would allow the state to avoid $613 million in new state costs in the 2024-25 fiscal year, with these costs instead reflected in the 2025-26 budget. More than 460,000 Californians with intellectual and developmental disabilities — including children receiving early intervention services — are expected to receive supports and services in 2024-25. Delaying pay increases for workers who provide these services could exacerbate staffing shortages across the disability system. This, in turn, would make it more challenging for individuals with disabilities and their families to receive the services that the Lanterman Act requires the state to provide.

The January budget proposal included a delay of $10 million General Fund for this program, which had been delayed to 2024-25 in previous years. This delay essentially postpones its implementation to 2026-27. The Preschool Inclusion Grant program was created in the 2022-23 budget with the goal of supporting preschool programs to include more children with developmental disabilities. This program and proposed reductions are different from the enrollment requirements as part of the California State Preschool Program (see “preschool inclusivity” bullet below).

The May Revision maintains these delays in funding and also:

• Eliminates the In-Home Supportive Services (IHSS) expansion coverage to undocumented Californians of all ages by cutting $94.7 million ongoing.
• Cuts the planned expansion of preschool inclusivity.
• Cuts $65 million for the Home Safe Program.
• Cuts $50 million for the Housing and Disability Advocacy Program.
• Cuts $44.8 million for Adult Protective Services (APS).
• Does not include funding to reform the Medi-Cal Share of Cost program.

IHSS is a key health care program that helps older adults with low incomes and people with disabilities live safely and with dignity in their own homes. Under the revised spending plan, about 14,000 Californians would lose access to IHSS solely due to their immigration status ( see the Coverage, Affordability & Access section ) .

Currently, at least 5% of California State Preschool Program enrollment must be for students with disabilities. The administration had planned to increase this proportion to at least 10% by 2026-27. However, the 2024-25 proposed budget cuts funding for this increase, reflecting a one-time General Fund savings of $47.9 million in 2025-26 and $97.9 million General Fund ongoing starting in 2026-27 ( see the Early Learning section ) . 

A ppropriated in the 2022 Budget Act, which supports the safety and housing stability of individuals involved in Adult Protective Services ( see the Homelessness section ) .

Appropriated in the 2022 Budget Act, which assists people experiencing or at risk of homelessness connect with disability benefits and housing supports ( see the Homelessness section ) .

This provides abuse intervention and support services to older adults and dependent adults who are unable to meet their own needs. This cut targets a recent expansion effort to address California’s growing aging population, which may limit the program’s reach, particularly for more complex cases.

This would alleviate financial burdens for many older adults and people with disabilities. Under the current Medi-Cal Share of Cost program, many Californians have to live at the maintenance need level in exchange for Medi-Cal services, which forces many to choose between paying for their health care, rent, food, or other basic needs ( see the Coverage, Affordability & Access section ) .

Proposal Eliminates and Delays Vital Services for Immigrant Californians, Maintains Cut to Legal Services

Immigrants are an integral part of California’s communities. They are not just part of the state’s mighty economic engine as taxpayers, entrepreneurs, and members of the workforce — they enrich our cultural identity as the Golden State. They are students, teachers, artists, chefs, religious leaders, colleagues, neighbors, and family members. 

California has the largest share of immigrant residents of any state. Over half of all California workers are immigrants or children of immigrants, and nearly 2 million Californians are undocumented, according to recent estimates .

State leaders have made notable progress in recent years working toward a California for all, where all people have access to economic opportunity and essential services, regardless of immigration status. Extending full-scope Medi-Cal eligibility to undocumented Californians is one significant example of this, and the governor’s May Revision maintains the final and most recent step in this expansion, extending coverage to adults ages 26 to 49. However, the revised budget takes a step backwards by eliminating or delaying other vital services for undocumented Californians that other Californians can access. Specifically, the revised budget:

• Permanently eliminates In-Home Supportive Services (IHSS) for all undocumented Californians.
• Delays expanding the California Food Assistance Program (CFAP) to undocumented adults age 55 or older, as promised in last year’s budget.

These services help Californians with low incomes who are over the age of 65, blind, and/or disabled live with dignity in their own homes. This harmful and xenophobic cut will cause about 14,000 Californians to lose access to IHSS solely due to their immigration status, potentially pushing them deeper into poverty ( see Health Coverage section ).

Instead of beginning in October 2025, these vital food benefits will be delayed until 2027, denying hundreds of thousands of older Californians access to assistance at a time when 45% of undocumented Californians with low incomes are affected by food insecurity ( see Economic Security section ).

The revised budget also maintains the governor’s January budget proposal to cut immigration legal services, which are a lifeline for immigrant families. Specifically, the May Revision:

• Continues to permanently cut funding for the Temporary Protected Status (TPS) Services program , eliminating $10 million General Fund in 2023-24 and each year thereafter, zeroing out all resources for this program. 
• Continues to permanently cut funding for the California State University Legal Services program by $5.2 million General Fund in 2023-24 and each year thereafter.

Cutting support for immigrant legal services is harmful. These services are crucial for helping immigrants stabilize their lives and remain in their communities. Immigration legal services can help put immigrants on a pathway to stability , particularly for those without status. Without access to legal services, immigrants can face greater risks of deportation and family separation, which can lead to financial hardship for families and adverse health outcomes . Given that newly arriving immigrants have the potential to grow the economy and contribute to state and local coffers, supporting them is a strategic investment in our collective future. 

The governor’s May Revision also reduces $29 million for the Rapid Response program in 2024-25, which helps sustain humanitarian support to individuals and families seeking safety at the California-Mexico border in partnership with local providers. This reversion in funds comes out of the $79.4 million General Fund reappropriated for the Rapid Response program from the 2021-22 and 2022-23 budget acts to 2023-24 as part of the early action budget deal approved by policymakers in April. The revised budget proposes no additional state funding for this program in 2024-25 despite the glaring need for continued investment . 

Eliminating and delaying vital services to Californians simply due to their immigration status would have a significant negative impact on immigrant communities and our collective prosperity and is a short-sighted approach to closing the state’s budget shortfall.

Governor Does Not Provide Needed Support to Domestic Violence Survivors

Every Californian deserves to live in a world where they feel safe. However, millions of Californians experience domestic and sexual violence every year — women, transgender, and non-binary Californians, and some women of color are most likely to experience this type of violence. 

Domestic and sexual violence prevention programs are proven ways to stop the violence from occurring in the first place by taking a proactive approach and seeking to shift culture on racial and gender inequities. Since 2018, state policymakers have provided small, one-time grants for prevention programs, administered by the California Governor’s Office of Emergency Services. Besides funding for prevention services, the state also receives federal funding through the Victims of Crime Act (VOCA) to help provide essential services to survivors of crime, including survivors of domestic violence. These funds help provide survivors with critical services like emergency shelter, counseling, and financial assistance. 

However, cuts to VOCA at the federal level are resulting in roughly a 45% cut to state grants for organizations that support survivors of crime, decimating the funding of many of these organizations who rely entirely on VOCA funding to provide these critical services. Additionally, the last round of prevention grants will run out at the end of 2024 . Prevention efforts take time, and organizations doing this critical work cannot commit to long term programming without permanent, ongoing funding.

In the May Revision, the governor:

• Does not provide funding to fill the gap in crime victim services funding.
• Does not provide continued funding for domestic violence prevention.
• Eliminates all funding for the cash assistance program for survivors.

In 2021-2022, the state stepped in and provided $100 million in one-time funding to backfill federal VOCA funding gaps. However, since 2019, funding has fallen far short of levels needed to maintain the services local organizations provide to more than 816,000 victims of crime. At the current funding levels, programs will have experienced a 67% cut in funding since 2019. While organizations are being forced to pause critical services to survivors of crime, the state continues to spend billions of dollars on prisons. The state could safely close up to five state prisons, which would result in savings of around $1 billion per year – some of which could be used to help support crime survivors ( see State Corrections section ).

While the 2023-24 budget extended state funding for domestic and sexual violence prevention grants, the governor does not propose any additional funding for new grants in the 2024-25 fiscal year, leaving many organizations uncertain as to how they will continue providing crucial services without funding.

In 2022-23, the state appropriated $50 million to establish the Flexible Assistance for Survivors (FAS) grant program. These dollars were meant to provide grants to community-based organizations to provide flexible assistance such as relocation, care costs, or other basic needs to survivors of crime. In January, the governor proposed delaying the $47.5 million program until 2025-26. However, the May Revision removes all state funding for the program, eliminating another support for survivors of crime.

While the governor has failed to include funding to support survivors of domestic and sexual violence among other crimes, a bipartisan group of Assemblymembers have issued an emergency budget request to address the VOCA funding shortfalls, recognizing the importance of protecting the state’s most vulnerable individuals. 

GUIDE TO THE STATE BUDGET PROCESS

See our report  Guide to the California State Budget Process  to learn more about the state budget and budget process.

Transitional Kindergarten Expansion Continues While Facilities are Cut

The California Department of Education (CDE) hosts two early learning and care programs: Transitional Kindergarten (TK) and the California State Preschool Program (CSPP). CSPP provides preschool to children ages 3 and 4 for families with low to moderate incomes. TK serves 4-year-olds, and eligibility is based on age alone in public schools and is not dependent on family income. Given the overlap with the child care and development programs administered through the California Department of Social Services, CSPP is included in recent family fee and rate reform wins (see Child Care section). However, as Universal TK continues to roll out and CDSS child care and development programs face cuts and delays, the administration has the opportunity to ensure that all early learning and care programs have the resources they need to prioritize family needs and early educator well-being. 

• Continues to fund the implementation of Universal TK expansion.
• Maintains CSPP slots and temporary reimbursement rate increases.
• Cuts the planned $550 million investment in preschool, TK, and full-day kindergarten facilities.

The initial year one expansion took effect during fiscal year 2022-23 and covered children whose fifth birthdays fell between September 2 and February 2 (the previous cut-off was December 2). The year two 2023-24 expansion provided eligibility to children who turn 5 between September 2 and April 2. The year three 2024-25 expansion will extend eligibility to children who turn 5 from April 2 to June 2. The revised budget includes $550 million from the General Fund for this year three expansion. As Universal TK continues to roll out, TK programmatic delays from 2023-24 are still relevant. Specifically, the following are delayed until 2025-26: 1) the reduction in TK classroom ratios to 1:10 and 2) the deadline for TK teachers to earn 24 units (or equivalent), a child development permit, or an early childhood education specialist credential.

The revised budget includes $1.4 billion in 2024-25 to maintain projected CSPP enrollment. As shared in the Child Care section , the 2023-24 enacted budget included one-time funding for temporary reimbursement rate increases and a commitment to developing an alternative methodology for provider rates. While this increase was negotiated by Child Care Providers United (CCPU) – representing home-based providers – the per-child temporary rate increase also applies to CSPP providers. Thus, the one-time funding promised for CSPP provider temporary rate increases is proposed to be maintained for 2024-25. Specifically, the revised budget includes $53.7 million from the General Fund to support reimbursement rate increases. Moreover, if the state does not determine the new rate structure by July 1, 2025, CSPP providers will also have their rates reverted to the 2018 standard reimbursement rate.

Facilities investments are intended to help build new school facilities or retrofit existing buildings in order to provide appropriate spaces for preschool, TK, and full-day kindergarten. The 2023-24 enacted budget reflected $550 million in 2024-25 to support this facilities program. This funding was delayed to 2025-26 in the January budget proposal. However, due to the projected budget shortfall, the dollars that were delayed to 2025-26 are now cut. The administration suggests that preschool, TK, and full-day kindergarten facilities could be added to an education bond proposal.

K-14 Education’s Minimum Funding Level Drops Due to Lower Revenue Estimates

Approved by voters in 1988, Proposition 98 constitutionally guarantees a minimum level of annual funding for K-12 schools, community colleges, and the state preschool program. The governor’s May Revision assumes a 2024-25 Prop. 98 funding level of $109.1 billion for K-14 education. Because the Prop. 98 guarantee tends to reflect changes in state General Fund revenues and estimates of General Fund revenue in the May Revision are lower than estimates in the January budget proposal, the governor’s revised spending plan assumes a decrease in the Prop. 98 guarantee in 2023-24 and 2022-23. Specifically, the May Revision assumes a 2023-24 Prop. 98 funding level of $102.6 billion, $3 billion lower than the $105.6 billion funding level assumed in the governor’s January budget proposal. The 2022-23 Prop. 98 funding level of $97.5 billion is roughly $800 million below the $98.3 billion funding level assumed in January, but it is $9.8 billion below the level assumed in the 2023-24 budget agreement – the largest decline in an estimated Prop. 98 guarantee for a prior-year since Prop. 98 was adopted. 

To address this unprecedented drop in the 2022-23 Prop. 98 guarantee, the governor’s May Revision proposes using the same complex accounting maneuver as the one he proposed in January: the revised budget plan attributes $8.8 billion in reduced Prop. 98 spending to the 2022-23 fiscal year, which would help reduce state General Fund spending to the lower revised Prop. 98 minimum funding level. However, the revised spending plan would not take away the $8.8 billion from K-12 schools and community colleges — dollars they received for 2022-23 that have largely been spent. Instead, the governor proposes to shift the $8.8 billion in K-14 education costs — on paper — from 2022-23 to later fiscal years and pay for these delayed expenses using non-Prop. 98 funds. 

The May Revision also reflects withdrawals of $5.8 billion in 2023-24 and $2.6 billion in 2024-25 from the Public School System Stabilization Account (PSSSA) – the state budget reserve for K-12 schools and community colleges ( see Reserves section ). Because the revised 2023-24 PSSSA balance of $2.6 billion is not projected to exceed 3% of the total K-12 share of the Prop. 98 minimum funding level in 2023-24, current law would allow K-12 school districts to maintain more than 10% of their budgets in local reserves in 2024-25.

Budget Proposal Relies on Reserves to Support K-12 School Funding Formula

The largest share of Prop. 98 funding goes to California’s school districts, charter schools, and county offices of education (COEs), which provide instruction to 5.9 million students in grades kindergarten through 12. The governor’s May Revision maintains the proposal made in his January budget to withdraw funds from the Public School System Stabilization Account (PSSSA) – the state budget reserve for K-12 schools and community colleges – to support the Local Control Funding Formula (LCFF), the state’s main K-12 education funding formula. Specifically, the governor’s revised spending plan:

• Allocates $7.5 billion from the PSSSA to support ongoing LCFF costs.
• Increases one-time funding for green school buses by roughly $395 million, for a total of approximately $895 million.
• Reduces K-12 school facilities funding by $375 million.
• Provides funding for a 1.07% COLA for non-LCFF programs and the LCFF Equity Multiplier.
• Increases funding for universal school meals by $63.3 million.
• Maintains $25 million in ongoing funding for literacy screening training.

The LCFF provides school districts, charter schools, and COEs a base grant per student, adjusted to reflect the number of students at various grade levels, as well as additional grants for the costs of educating English learners, students from low-income families, and foster youth. The May Revision includes a 1.07% cost-of-living adjustment (COLA) for the LCFF. To pay for the additional ongoing costs, the proposal would withdraw $5.3 billion from the PSSSA to fund the LCFF in 2023-24 and $2.2 billion to fund the LCFF in 2024-25.

The May Revision sustains a commitment made in the 2023-24 budget agreement to support the greening of school bus fleets through programs operated by the California Air Resources Board and the California Energy Commission in 2024-25. The governor’s proposal would increase 2024-25 funding for green school buses above the $500 million included in his January budget, but would reduce funding committed to the program to $105 million in 2025-26.

The 2022-23 budget agreement included an intention to allocate $875 million in one-time, non-Prop. 98 General Fund spending for the School Facility Program (SFP) to support K-12 facilities construction in 2024-25. The Legislature’s “early action” package approved the governor’s January budget proposal to reduce the 2024-25 SFP allocation by $500 million. The May Revision proposes to eliminate the remaining $375 million in 2024-25 SFP funding.

The governor’s January budget proposal included $65 million to fund a 0.76% COLA for the LCFF Equity Multiplier , established as part of the 2023-24 budget agreement, and for several categorical programs that remain outside of the LCFF, including special education, child nutrition, and American Indian Education Centers. The May Revision would increase ongoing funding to support these COLAs in 2024-25.

California established a Universal Meals Program in the 2022-23 school year that provides two free meals per day to any public K-12 student regardless of income eligibility. The governor’s January budget proposed $122.2 million to fully fund the program in 2024-25, and the May Revision proposes to increase this funding to pay for growth in the projected number of meals served and a COLA ( see Food Assistance section ) .

The 2023-24 budget agreement included a requirement for school districts to begin screening students in kindergarten through 2nd grade for risk of reading difficulties by the 2025-26 school year. The May Revision sustains the governor’s January budget proposal to provide funding to administer these literacy screenings.

Revised Budget Increases Reserve Withdrawals for Community Colleges Funding

A portion of Proposition 98 funding provides support for California’s Community Colleges (CCCs), the largest postsecondary education system in the country, which serves high percentages of students of color and students with low incomes. CCCs prepare more than 1.8 million students to transfer to four-year institutions or to obtain training and employment skills. 

The 2024-25 revised spending plan increases withdrawal amounts from the Prop. 98 reserve for CCC apportionments and provides additional resources to fund an increase in the cost-of-living adjustment (COLA). 

Specifically, the governor’s revised budget includes:

• Reserve withdrawals totaling $914.1 million from state budget reserves for CCC apportionments.
• A 1.07% COLA for apportionments and other programs.

The governor proposes a withdrawal of $381.6 million from the Prop. 98 reserve (also known as the Public School System Stabilization Account or PSSSA) ( see Reserves section ) in 2023-24 and $532.6 million in 2024-25 for the Student Centered Funding Formula (SCFF).

This includes $100.2 million ongoing Prop. 98 dollars for the SCFF. The revised spending plan also provides ongoing Prop. 98 resources to provide the same percentage COLA to other CCC categorical programs and the Adult Education Program.

Revised Proposal Maintains Deferrals for the CSU and UC Systems

California supports two public four-year higher education institutions: the California State University (CSU) and the University of California (UC). The CSU provides undergraduate and graduate education to nearly 460,000 students at 23 campuses, and the UC provides undergraduate, graduate, and professional education to more than 290,000 students across 10 campuses. 

The governor’s revised budget includes additional cuts to higher education and maintains funding deferrals for both of the state’s public university systems. 

The January proposal included:

• A deferral of $240 million General Fund dollars from 2024-25 to 2025-26 for the CSU.
• Deferrals totaling $259 million General Fund dollars from 2024-25 to 2025-26 for the UC.
• A reduction of $494 million in General Fund dollars for the California Student Housing Revolving Loan Fund Program.

These dollars were meant to fulfill multi-year funding increases as part of the CSU compact. Under this proposal, the governor intends to restore this funding commitment in 2025-26, along with the scheduled base increase for the fourth year of the agreements. Additionally, the administration would also provide a one-time payment of $240 million in 2025-26 as part of the deferral.

This includes a deferral of $228 million for base increase as part of the multi-year compact with the UC and $31 million to support the UC in increasing the number of resident undergraduate students. In 2025-26, the governor intends to restore the $228 million on top of the increase scheduled for the fourth year of this compact and provide a total of$62 million for resident undergraduate enrollment, reflecting the deferred amount and that year’s increase for this purpose. The administration would also provide one-time payments of $228 million and $31 million to compensate for the deferrals in 2024-25 of the same amount.

The proposal pulls back $194 million in 2023-24 and $300 million in 2024-25. This program provides interest-free loans to campuses for new student housing projects.

The May Revision maintains these proposals and also include the following cuts in higher education:

• An ongoing reduction of nearly $14 million General Fund for the Proposition 56 General Fund backfill that supports Graduate Medical Education programs at the UC. 
• An ongoing cut of $13 million General Fund for the UC Labor Centers. This funding provides support for economic research and labor education across various UC campuses. 
• A reduction of $485 million General Fund of unspent one-time dollars for the Learning-Aligned Employment Program. The program provides resources for students at public colleges and universities to earn money while learning in a field related to their educational and career interests ( see Workforce section ).
• A $60 million General Fund cut for the Golden State Teacher Grant Program. This program provides awards to students in professional preparation programs and who are working toward a teaching credential. 

May Revision Abandons Commitments to Expand Student Financial Aid

The budget shortfall and proposed solutions significantly impacts access to financial aid opportunities for California students. The May Revision does not include funding for the anticipated reform to the Cal Grant program and reduces funding for the Middle Class Scholarship (MCS). 

Specifically, the revised spending plan:

• Does not trigger the Cal Grant Reform Act.
• Walks back expansion of the MCS.

Given the multi-year shortfall, the revised spending plan does not include funding for the Cal Grant Reform Act, which was included in the 2022-23 budget, and the governor does not propose any budgetary actions to phase in the program. Trailer bill language as part of the 2022-23 budget stated that the reform would become operative if General Fund dollars “over multi-year forecasts” are available beginning in 2024-25. The Cal Grant is California’s financial aid program for low-income students pursuing postsecondary education in the state. These grants support students by providing financial assistance so they can afford the costs of college attendance, including meeting their basic needs such as housing, food, transportation, and child care. The Cal Grant Reform Act would reach thousands of new students who were previously not eligible and would also allow more students to qualify for CalFresh food assistance, freeing up resources for institutions to support students with other non-tuition costs.

The May Revision proposes an ongoing cut to the MCS of $510 million . The revised spending plan also includes an additional spending reduction of more than $20 million, reflecting revised program estimates. These two actions reduce total spending for the program down to $100 million ongoing, reflecting an 88% drop from the 2023-24 total funding level. The May Revision also maintains the January proposal to abandon a planned one-time investment of $289 million that was included as part of the 2023-24 budget. The state created the MCS program in 2013-14 to provide partial tuition coverage to CSU and UC students who were not eligible for Cal Grants. The program was revamped in 2022-23 by increasing funding and implementing new rules. Due to these changes, a broader group of students received the awards. Eligible students include those who qualify based on income (maximum household income is $217,000), low-income students who qualify through other requirements, and community college students in bachelor’s degree programs.

Overall, these budget choices have consequences for college affordability, degree attainment, and overall student well-being. Students pursuing postsecondary education confront significant hardship to afford basic necessities , and they are often forced to make difficult decisions that impact their college experience and degree completion .

May Revision Calls for Deactivating Prison Housing Units, but Not Prison Closures

More than 93,000 adults who have been convicted of a felony offense are serving their sentences at the state level , down from a peak of 173,600 in 2007. This sizable drop in incarceration is largely due to justice system reforms adopted since the late 2000s, including Proposition 47 , which California voters passed with nearly 60% support in 2014 . Despite this substantial progress, American Indian, Black, and Latinx Californians are disproportionately represented in state prisons — a racial disparity that reflects racist practices in the justice system as well as structural disadvantages faced by communities of color.

Among all incarcerated adults, most — about 90,000 — are housed in state prisons designed to hold roughly 75,500 people. This overcrowding equals 119% of the prison system’s “design capacity,” which is below the prison population cap — 137.5% of design capacity — established by a 2009 federal court order. California also houses around 3,000 people in facilities that are not subject to the cap, including fire camps, in-state “contract beds,” and community-based facilities that provide rehabilitative services.

• Calls for deactivating 46 housing units across 13 state prisons, for ongoing annual state savings of around $80 million.
• Fails to advance a plan to close state prisons.
• Proposes deep cuts to the Adult Reentry Grant (ARG) program.

The housing units proposed for deactivation contain roughly 4,600 beds. However, the state prison system currently operates with about 15,000 empty beds . Moreover, closing housing blocks rather than entire prisons saves the state less money because ongoing operational and staffing costs are higher when prisons remain open. For example, while the governor’s proposal would reduce state costs by around $80 million per year, the state would save around $200 million per year for every prison it closes. Given California’s challenging fiscal outlook, state leaders should be exploring ways to significantly reduce spending on prisons in order to ensure the wise use of state tax dollars and maximize state savings.

In recent years, California has ended the use of private prisons and shut down three state prisons. State leaders can — and should — go further. In fact, due to the large number of empty prison beds, the state could safely close up to five additional prisons, according to the Legislative Analyst’s Office . Closing five more state prisons would save around $1 billion per year — dollars that could be redirected to help incarcerated individuals successfully transition back to their communities as well as support crime survivors, reduce poverty, increase housing stability, and address substance use and mental health issues. Unfortunately, the May Revision fails to advance a plan to close more prisons, with the governor instead focusing on deactivating selected prison housing units for far less state savings.

Community-based organizations use ARG funds to help formerly incarcerated people successfully transition back to their communities. In January, the governor proposed to cut $7.8 million in unspent ARG funds from 2022-23 as well as to delay $57 million in ARG funds budgeted for 2024-25 to the next three fiscal years (2025-26 to 2027-28 — providing $19 million per year). The May Revision maintains the $7.8 million cut and also proposes two significant reductions: 1) eliminate (rather than delay) the $57 million budgeted for 2024-25 and 2) cut $54.1 million in ARG funds budgeted for 2023-24. The governor’s proposal represents a major step back from recent efforts to ensure that people released from prison are prepared to successfully reenter their communities.

Revised Budget Continues to Provide Over $100 Million to Address Retail Theft

Retail theft  is defined in several ways  in California law:

• Shoplifting
• Commercial burglary
• Organized retail theft

Shoplifting occurs when the value of stolen goods is $950 or less (petty theft) — a limit set by Proposition 47 of 2014 . Shoplifting is generally a misdemeanor, but may be charged as a misdemeanor or a felony if the defendant was previously convicted of certain severe crimes or is required to register as a sex offender.

Commercial burglary covers higher-value retail theft (grand theft) and can be charged as a misdemeanor or a felony.

Organized retail theft , a specific type of theft created by the Legislature in 2018 , is punishable as a misdemeanor or a felony.

Robbery , a felony, occurs when force or a threat of force is involved. “Smash and grab” incidents are prominent examples of robberies affecting retail businesses.

Retail theft rose following the isolation and social breakdown caused by the COVID-19 pandemic. In California, commercial burglary and robbery rates continued to exceed their pre-pandemic (2019) levels as of 2022, the most recent year for which statewide data are available. In contrast, California’s statewide shoplifting rate remains below the 2019 level despite a recent increase.

In January, Governor Newsom proposed to provide $119 million in 2024-25 to address organized retail theft and other crimes. This was the same amount of General Fund support provided in the current fiscal year (2023-24) despite the large budget shortfall the state is facing.

The May Revision modestly reduces the total funding level from $119 million to $115.4 million. This reflects a $3.6 million cut to the Vertical Prosecution Grant Program, which would see its funding reduced from $10 million to $6.4 million in 2024-25. The governor does not propose cuts in 2024-25 to other components of his organized retail theft package, which includes $85 million for local law enforcement agencies and $24 million for state-level task forces and prosecution teams.

Revised Budget Estimates Proposition 47 Savings of $95 Million for Local Investments

Overwhelmingly approved by voters in 2014, Prop. 47 reduced penalties for six nonviolent drug and property crimes from felonies to misdemeanors. Consequently, state prison generally is no longer a sentencing option for these crimes. Instead, individuals convicted of a Prop. 47 offense serve their sentence in county jail and/or receive probation.

By decreasing state-level incarceration, Prop. 47 reduced the cost of the prison system relative to the expected cost if Prop. 47 had not been approved by voters. The Department of Finance is required to annually calculate these state savings, which are deposited into the Safe Neighborhoods and Schools Fund and used as follows:

• 65% for behavioral health services — which includes mental health services and substance use treatment — as well as diversion programs for individuals who have been arrested, charged, or convicted of crimes. These funds are distributed as competitive grants administered by the Board of State and Community Corrections.
• 25% for K-12 school programs to support vulnerable youth. These funds are distributed as competitive grants administered by the California Department of Education.
• 10% to trauma recovery services for crime victims. These funds are distributed as competitive grants administered by the California Victim Compensation Board.

As of the 2023 Budget Act, the state has allocated roughly $720 million in savings attributable to Prop. 47 — funds that have been invested in local programs that support healing and keep communities safe. For example, a recent evaluation shows that people who received Prop. 47-funded behavioral health services and/or participated in diversion programs were much less likely to be convicted of a new crime. Specifically, individuals enrolled in these programs had a recidivism rate of just 15.3% — two to three times lower than is typical for people who have served prison sentences (recidivism rates range from 35% to 45% for these individuals).

The May Revision estimates that Prop. 47 has generated an additional $94.8 million in state savings due to reduced state-level incarceration. These dollars will be allocated through the 2024 Budget Act, increasing Prop. 47’s total investment in California’s communities to more than $800 million since these savings were first allocated through the 2016 Budget Act.

Governor Proposes Additional Cuts to Several Workforce Programs

The revised budget proposes to cut spending on several workforce development programs to help address the multi-year budget problem. ( See Health Workforce section. ) Specific cuts include:

• $50 million General Fund in 2024-25 and 2025-26 to California Jobs First (formerly called the Community Economic Resilience Fund).
• $20 million General Fund in 2024-25 to the California Youth Leadership Corp
• $20 million General Fund in 2025-26 to the Apprenticeship Innovation Fund at the Department of Industrial Relations.
• $10 million General Fund ongoing for the Women in Construction Unit at the Department of Industrial Relations.
• $10 million General Fund in 2025-26 for the Department of Industrial Relations’ California Youth Apprenticeship Program.

This program is an inter-agency partnership that supports strategies to diversify local economies and develop sustainable industries that create high-quality, broadly accessible jobs.

This is an initiative of the Workforce Development Agency, certain community colleges, and non-profit organizations that prepares historically marginalized youth to become community organizers and change agents in their local communities.

This is in addition to the $40 million General Fund delay in 2024-25 that was included in the governor’s January budget.

This aims to increase opportunities in the construction industry for women, non-binary, and underserved communities.

This provides apprenticeships for youth ages 16 to 24. This cut is in addition to the $25 million General Fund spending delay in 2024-25 that was included in the governor’s January budget.

In addition, the revised budget cuts $485 million General Fund in unspent one-time funds for the Learning-Aligned Employment Program in 2022-23. This program places eligible students at public colleges and universities in employment opportunities related to their area of study or career objectives. ( See higher education sections .)

Revised Budget Proposes Further Cuts to Prior Environment Commitments

Californians across the state have increasingly seen the effects of climate change through devastating fires, droughts, and floods, but communities of color and low-income communities are often hit hardest by these catastrophes due to historical and ongoing displacement and underinvestment. Additionally, these communities are more likely to be exposed to environmental pollutants for the same reasons. 

Significant investments in climate resilience were made through recent years’ budgets. Most of the commitments were one-time investments intended to be made across several years, so there are significant unspent funds remaining. In January, the governor proposed budget solutions that included $2.9 billion in reductions and $1.9 billion in delays of climate investments committed in previous budget agreements. Several of these proposals were included, or partially included in the early action agreement between the governor and the Legislature.

The May Revision proposes around $1 billion in additional reductions to climate and environment programs for 2022-23 as well as further reductions to planned spending beyond the current budget window. Reductions are proposed in areas including but not limited to clean energy and transportation, water and drought resilience, and wildfire resilience.

Significant new reductions that may disproportionately impact low-income and under-resourced communities include:

• $399 million for the Active Transportation Program across 2025-26 and 2026-27 ($300 million in 2025-26 and $99 million in 2026-27).
• $268.5 million for the Cleanup in Vulnerable Communities Initiative ($136 million in 2023-24, $85 million in 2025-26, and $47.5 million in 2026-27).
• $140 million for the Equitable Building Decarbonization program across 2024-25 and 2025-26 ($53 million in 2024-25 and $87 million in 2025-26).

This program supports walking and biking options with the goals of improving safety and mobility and reducing greenhouse gas emissions. The Transportation Commission notes that 85% of funds committed have gone to projects benefiting disadvantaged communities.

The initiative was created in 2021 and committed $500 million across four years to clean up hazardous waste sites in communities subject to environmental hazards.

This program provides funds for 1) energy retrofits for low and moderate income households and 2) incentives for the adoption of energy efficient technologies, at least half of which must benefit under-resourced communities. This appears to be in addition to the $286 million proposed reduction across several years included in the January proposal.

You may also be interested in the following resources:

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• Best for customer satisfaction
• Best for older adults
• Best for long-term care
• Best for high returns
• Best for agent support
• Best for term life
• How we review life insurance companies

Best Life Insurance of May 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Best life insurance companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

Best life insurance for customer satisfaction

State farm life insurance.

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review here.

Best life insurance for older adults

Prudential vul protector life insurance.

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review here.

Best life insurance for long-term care

Columbus life insurance.

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Best life insurance for high returns on income

Allianz life insurance.

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Best life insurance for agents

New york life insurance.

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Best life insurance for term life

North american life insurance.

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Summary of the best life insurance companies

• Best for customer satisfaction:   State Farm Life Insurance
• Best for older adults:   Prudential Life Insurance
• Best for agent support:   New York Life Insurance
• Best for long-term care:   Columbus Life
• Best for high returns:   Allianz Life
• Best for term life:   North American Company

How to pick the best life insurance policy for you

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

Methodology: How we review life insurance companies

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best life insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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Time zone info for Elektrostal

• The time in Elektrostal is 8 hours ahead of the time in New York when New York is on standard time, and 7 hours ahead of the time in New York when New York is on daylight saving time.
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Sunrise, sunset, day length and solar time for elektrostal.

• Sunrise: 03:51AM
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• Day length: 17h 5m
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• The current local time in Elektrostal is 24 minutes ahead of apparent solar time.

Elektrostal on the map

• Location: Moscow Oblast, Russia
• Latitude: 55.79. Longitude: 38.46
• Population: 144,000

Best restaurants in Elektrostal

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• The flag of Elektrostal, Moscow Oblast, is a striking combination of Old Glory red, representing strength and courage at 81%, complemented by a subtle touch of light grey at 5% for balance and harmony. The bold black stripe at 3% adds a touch of sophistication, while the shimmering gold stripes at 3% each symbolize prosperity and success. The flag is completed with a touch of very dark grey at 1%, representing the city s resilience and
• Elektrostal Moscow oblast

Product information

Warranty & support, looking for specific info, product description.

Flag: Elektrostal Moscow oblast landscape flag | 2.16m² | 23sqft | 120x180cm | 4x6ft Elektrostal Moscow oblast Elektrostal obwód moskiewski , flaga ???????????? ?????????? ??????? Since we know how important your external presentation is, we print our Elektrostal Moscow oblast flag for your representative appearance using the most modern machines in Germany. To ensure your maximum flexibility, we have equipped the flags with quality metal eyelets, to let you simply attach these flags to any flagpole. To let you use the flags for a long time, we have strengthened the flag using double safety seams and a tear proof strap at the side of the pole. Due to the quality of this business flag, you show a particular degree of the closeness to Elektrostal Moscow oblast. Details about this flag This landscape Elektrostal Moscow oblast flag is a quality product Made in Germany made of 110g/m² gloss polyester. This Elektrostal Moscow oblast flag is wind- and weather-resistant and highly durable. The flag colors are intensive and UV-resistant. This flag is specially made for outer space. This Elektrostal Moscow oblast flag will be delivered with a double safety-seam as well as with 2 metal eyelets to hoist at the flag pole. The metal eyelets give you great flexibility for placing this flag on any flagstaff. The mast side is reinforced with a white hem. The quality flag material and the metal eyelets will take care of a long endurance of this Elektrostal Moscow oblast flag. If required, the flag can be washed at 60 degrees Celsius. Recommended height of flag pole Elektrostal Moscow oblast flags of 2.16m² | 23sqft | 120x180cm | 4x6ft look best with flagpoles of around 6m | 18ft height. Need a bigger size or an other configuration? We can provide bigger sizes, other configurations, exclusive indoor ...

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E-Cigarette Use Among Youth

What to know.

E-cigarettes are the most commonly used tobacco product among U.S. youth. No tobacco products, including e-cigarettes, are safe, especially for children, teens, and young adults. Learn more about e-cigarette use among youth.

• In the United States, youth use e-cigarettes, or vapes, more than any other tobacco product. 1
• No tobacco products, including e-cigarettes, are safe, especially for children, teens, and young adults. 2
• Most e-cigarettes contain nicotine, which is highly addictive. Nicotine can harm the parts of an adolescent's brain that control attention, learning, mood, and impulse control. 2
• E-cigarette marketing, the availability of flavored products, social influences, and the effects of nicotine can influence youth to start or continue vaping. 3 4
• Most middle and high school students who vape want to quit. 5
• Many people have an important role in protecting youth from vaping including parents and caregivers, educators and school administrators, health care providers, and community partners.
• States and local communities can implement evidence-based policies, programs, and services to reduce youth vaping.

E-cigarette use among U.S. youth

In 2023, e-cigarettes were the most commonly used tobacco product among middle and high school students in the United States. In 2023: 6

• 550,000 (4.6%) middle school students.
• 1.56 million (10.0%) high school students.
• Among students who had ever used e-cigarettes, 46.7% reported current e-cigarette use.
• 1 in 4 (25.2%) used an e-cigarette every day.
• 1 in 3 (34.7%) used an e-cigarette on at least 20 of the last 30 days.
• 9 in 10 (89.4%) used flavored e-cigarettes.
• Most often used disposable e-cigarettes (60.7%) followed by e-cigarettes with prefilled or refillable pods or cartridges (16.1%).
• Most commonly reported using the following brands: Elf Bar, Esco Bars, Vuse, JUUL, and Mr. Fog.

Most middle and high school students who vape want to quit and have tried to quit. 5 In 2020:

• 63.9% of students who currently used e-cigarettes reported wanting to quit.
• 67.4% of students who currently used e-cigarettes reported trying to quit in the last year.

Most tobacco use, including vaping, starts and is established during adolescence. There are many factors associated with youth tobacco product use . These include:

• Tobacco advertising that targets youth.
• Product accessibility.
• Availability of flavored products.
• Social influences.
• Adolescent brain sensitivity to nicotine.

Some groups of middle and high school students use e-cigarettes at a higher percentage than others. For example, in 2023: 6

• More females than males reported current e-cigarette use.
• Non-Hispanic multiracial students: 20.8%.
• Non-Hispanic White students: 18.4%.
• Hispanic or Latino students: 18.2%.
• Non-Hispanic American Indian and Alaska Native students: 15.4%.
• Non-Hispanic Black or African American students: 12.9%.

Many young people who vape also use other tobacco products, including cigarettes and cigars. 7 This is called dual use. In 2020: 8

• About one in three high school students (36.8%) who vaped also used other tobacco products.
• One in two middle school students (49.0%) who vaped also used other tobacco products.

E-cigarettes can also be used to deliver other substances, including cannabis. In 2016, nearly one in three (30.6%) of U.S. middle and high school students who had ever used an e-cigarette reported using marijuana in the device. 9

• Park-Lee E, Ren C, Cooper M, Cornelius M, Jamal A, Cullen KA. Tobacco product use among middle and high school students—United States, 2022 . MMWR Morb Mortal Wkly Rep. 2022;71:1429–1435.
• U.S. Department of Health and Human Services. E-cigarette Use Among Youth and Young Adults: A Report of the Surgeon General . Centers for Disease Control and Prevention; 2016. Accessed Feb 14, 2024.
• Apelberg BJ, Corey CG, Hoffman AC, et al. Symptoms of tobacco dependence among middle and high school tobacco users: results from the 2012 National Youth Tobacco Survey . Am J Prev Med. 2014;47(Suppl 1):S4–14.
• Gentzke AS, Wang TW, Cornelius M, et al. Tobacco product use and associated factors among middle and high school students—National Youth Tobacco Survey, United States, 2021 . MMWR Surveill Summ. 2022;71(No. SS-5):1–29.
• Zhang L, Gentzke A, Trivers KF, VanFrank B. Tobacco cessation behaviors among U.S. middle and high school students, 2020 . J Adolesc Health. 2022;70(1):147–154.
• Birdsey J, Cornelius M, Jamal A, et al. Tobacco product use among U.S. middle and high school students—National Youth Tobacco Survey, 2023 . MMWR Morb Mortal Wkly Rep. 2023;72:1173–1182.
• Wang TW, Gentzke AS, Creamer MR, et al. Tobacco product use and associated factors among middle and high school students—United States, 2019 . MMWR Surveill Summ. 2019;68(No. SS-12):1–22.
• Wang TW, Gentzke AS, Neff LJ, et al. Characteristics of e-cigarette use behaviors among US youth, 2020 . JAMA Netw Open. 2021;4(6):e2111336.
• Trivers KF, Phillips E, Gentzke AS, Tynan MA, Neff LJ. Prevalence of cannabis use in electronic cigarettes among U.S. youth . JAMA Pediatr. 2018;172(11):1097–1099.

Smoking and Tobacco Use

Commercial tobacco use is the leading cause of preventable disease, disability, and death in the United States.

For Everyone

Health care providers, public health.

I cared for my dad under ‘hospital at home’ in his final weeks. The program is missing one big piece

I cared for my father 24/7 in the last years of his life. A lot of that care happened through the hospital-at-home program. While he received high-quality care, the support provided to his primary caregiver, me, fell short.

Innovation in health care delivery increasingly keeps patients out of the hospital by providing medical care in the home. As a result, care is being pushed into the home much earlier in the patient journey than ever before. One major evolution—starting in the last decade but gaining momentum since COVID—has been the popular hospital-at-home program. It’s widely supported across the nation, with support from the Centers for Medicare and Medicaid Services through the “ Acute Hospital Care at Home ” waiver. The program ends later this year, and it’s up for debate how the federal agency should make such models permanent moving forward. A bill now being considered by Congress would extend the program.

Health care at home

Either way, the trend is clear: Health care providers have made the growth of the hospital-at-home program a major priority for the coming year. Mass General Brigham , for example—one of the largest health care systems in the U.S.—has indicated it would like to move 10% of its medical patients to home care. A McKinsey & Company study predicts that health care will continue to be delivered at home, to the tune of $265 billion by 2025 . But while it’s embraced by both health care systems and patients, the hospital-at-home program overlooks a key piece of the puzzle: the family caregivers who do so much of the work, often with little warning and no training.

Family caregivers have long been a part of the care ecosystem. They cover over $470 billion worth of unpaid care every year, and our health care system is reliant on family caregivers to provide over 80% of community-based long-term care. According to the National Alliance for Caregiving, over 65 million Americans serve as family caregivers for a disabled or ill relative. On average, caregivers shoulder 37.4 hours of care per week , a trend that will only intensify with the momentum of aging-in-place and hospital-at-home models. Despite the growing reliance on them, family caregivers have been left out of the equation. But as hospital-at-home and its ilk gain popularity, the care taking place at home is becoming more acute and complex.

As the primary family caregiver to both of my parents for eight years, I intimately understand the emotional and logistical toll caregiving can take, both in clinical settings and in the home. My mom had pancreatic cancer for seven years and moved in with my family. I cared for her until she passed away in my home six years ago. My dad had been living with us since then and experienced a major health decline from congestive heart failure. Last year, we became participants in a hospital-at-home program upon his discharge after a hospital stay to treat complications from congestive heart failure.

At that time, I didn’t know what the program was until I found myself sitting in my living room with my recently discharged dad, a doctor, and a nurse. They brought the monitoring equipment and took his vitals. The whole time they were talking to him as the patient—and didn’t ask me any questions about the living situation, care coverage, or daily care needs. Once their 20-minute visit ended, I was left to figure out all the extra care he needed after a six-day hospital stay. I had to cancel a work trip that week because my dad needed extra assistance for his daily care. The monitoring equipment was impressive, but the many moments he walked a few inches beyond the 13-foot coverage, I was being called by their 24/7 monitoring line asking to check on him.

Having experienced this program firsthand while also being a health-tech leader in the industry, I want to emphasize that the positives abound for health care systems, which can discharge patients from an acute care setting, and for patients, most of whom prefer to be cared for in their homes. However, hospital-at-home will not reach its full potential until the family caregivers are integrated into the process with the appropriate onboarding and support.

Supporting family caregivers

A few key steps should be taken. First, be intentional with the onboarding process and education provided to family caregivers. Clearly explain the program in a way that sets the caregiver’s role and expectations. Lay out how long it’s intended to last, ask the caregiver about the home care environment, and assess where needs may arise. Provide a thorough overview of any resources and support that are available, and incorporate the family caregiver as part of the care team. Caregivers in this situation are not just players sitting by the bedside, as in a hospital setting. They are playing the roles of health aides, social workers, food service, and 24/7 monitoring beyond key vitals. Consider the care in the home environment, where daily life distractions and obligations occur.

In my case, caring for my father at home coincided with my work at ianacare, a caregiving tech company that I cofounded to help bridge the gaps in home-based care. I have learned that the important thing, as we make this critical shift of transitioning care into the home, is to start by acknowledging the importance of family caregivers. The hardest part, after all, falls to them.

Clinical evidence demonstrates the key role they play. The goals of the provider align with the outcome of well-supported caregivers, with a 25% reduction in hospital readmission when a family caregiver is involved. Meanwhile, patients whose caregivers are burned out, stressed, or fatigued experience a 73% increase in emergency department utilization .

I recently spoke with a health care system as they began the process of implementing hospital-at-home, and they mentioned that caregiver support was important to them—but that they were more concerned about getting the program up and running for the patients first. Unfortunately, this is the prevalent mindset within health care systems, and the unintended consequence is the large amount of stress and pressure placed on family caregivers.

While hospital-at-home is designed to deliver clinical support and professional care, the reality is that informal unpaid caregivers do much of the work in the home. We’re caring for our loved ones and ensuring that they get the best standard of care in the process. The moments between in-home and virtual visits quickly become critical—and that is where family caregivers, who are often thrust into that role with little warning and no training, come in. It’s the last mile of the patient’s care.

These caregivers need far more attention. Proper training and support for them will not only reduce burnout, but ultimately lead to better patient outcomes and lowered costs. Hospital-at-home is the start of other initiatives pushing care in the home, so we need to get this right—starting now.

Jessica Kim is cofounder and executive chairman of ianacare . She is a graduate of Brown University and holds an MBA from Northwestern University’s Kellogg School of Management.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of  Fortune .

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