CYFD seeks recurring funding and GROW dollars as it works to reduce youth held in offices and review child deaths

Acting Cabinet Secretary Valerie Sandoval told the Senate Finance subcommittee that stabilizing CYFD’s workforce is central to meeting court-ordered remedial obligations and improving placements for children in state custody.

LFC analyst Carl Malone summarized the budget differences and flagged that the adopted recommendation totals about $409.9 million (a 3.2% increase) and that much of the variation between LFC and the executive stems from how federal funds and transfers (TANF) are budgeted. Malone said HAFC added a $2.5 million special appropriation for a short-term stabilization pilot for youth in custody.

Sandoval said CYFD needs recurring base funding to hire and retain qualified staff. She said the department has obligated roughly $24.5 million of $32 million in FY26 GROW funding to date and emphasized workforce investments that total about $20.26 million, including $10 million to meet caseload standards tied to the Kevin S. remedial order.

Placements and quality assurance

Sandoval described a sustained effort to reduce the number of youth staying in state offices: the department saw as many as 26 kids in offices during a holiday surge and reported that number had fallen to six the night before the hearing. She said the department uses daily staffings and provider teaming to find placements, move children to foster homes, treatment foster care or independent living, and avoid moving children just to meet a numeric target.

When asked about nine child deaths last year, Sandoval confirmed the number and said that four of those children were in state custody; five had CYFD involvement but were not in custody. She said CYFD is conducting a quality-assurance initiative to review each case, identify system failures, and implement changes where needed. The secretary offered to provide senators with follow-up documentation about reunification status and other case details.

Questions from committee members

Senators asked for more detailed GROW spend-down reporting, asked whether the funding for foster parent tax credits and foster parent recruitment would reach existing caregivers first, and pressed CYFD on whether an executive order led to rapid placement improvements. Sandoval described expanded recruitment and multi-agency coordination, including with HCA and the Health Care Authority on behavioral health supports.

What the department asked for

Sandoval asked the committee to approve the executive recommendation for general fund support because it funds GSD/DOIT rates and backfills expired federal Title IV-E grants, and said a modest additional C-2 request for technology (~$6M) remains outstanding. She said the department will continue providing detailed reports on growth funding obligations and offered to meet with senators for one-on-one briefings.

The hearing moved on after extended questioning; members signaled they may request additional briefings and documentation regarding child fatalities and the placement plan.