House Human Services presses for clarity on shelter funding, objects to OEO grant-to-staffing transfer

House Human Services spent substantial time examining shelter and homelessness-related line items, expressing concern about an apparent underspend in General Assistance (GA) emergency-housing funds and a proposed reallocation inside the Office of Economic Opportunity (OEO).

Speaker 1 told the committee DCF monthly reporting indicated the department expected at least a $5.5 million underspend in GA emergency-housing assistance for the fiscal year and that Speaker 1's own calculation suggested the underspend might be closer to $8 million. Committee members said those funds could affect the ability of emergency-weather shelters to operate. "People are dying...while we have money to get them into shelter," Speaker 9 said, stressing the urgency and prompting members to flag transparency and accountability concerns.

Separately, OEO proposed a net-neutral internal change moving $269,000 from grants to personal services to fund two limited-service positions for expanded shelter oversight and technical assistance. Committee members questioned taking provider grant dollars to pay staff and recommended that those positions be funded on their merits in FY27, or that funds remain in grants for FY26 until clearer justification is provided. The committee's working language states the positions may be necessary but recommends retaining funds in the grants line for FY26 and addressing permanent authorization through the legislature if positions are intended to be ongoing.

On allocation of the $2,000,000 shelter request, Speaker 1 said the committee recommended modifying the department's allocations so that identified community-based providers are not left with a $1.3 million cut; the committee proposed a $677,859 modification to OEO and recommended restoring community partners' funding (community partners request: $1,322,141) so total changes match the $2,000,000 figure while protecting providers. The committee also recommended specifying which recovery centers receive special-fund support and asked staff (Nolan) to confirm whether the special fund cited is constrained or fungible.

Committee members asked staff to bring detailed backup (transportation breakout, occupancy lists, special-fund balances) before the Appropriations presentation and to press the administration for clearer explanations of spending decisions.