DHS tells subcommittee out-of-home care costs surged; House adds funds and system fixes

Chris Sachin, chief of staff for the Department of Human Services, briefed the subcommittee on a range of House changes and pressing deficits in child welfare and out-of-home care.

Sachin said the House increased the out-of-home care line from about $21.2 million in the governor's plan to $48.3 million in the House recommendation to help address an ongoing deficit. He also described a change in a federal match interpretation by CMS that reduced the federal share for certain eligibility-staff costs from 75.25% to about 50.5%, creating an expected annual impact "approximately $11,200,000 going forward," he said.

DHS highlighted other House items: increased funds for reunification services, caregiver supports, transfers to the Criminal Justice Coordinating Council for child advocacy work, and a $3 million proposed investment to create an integrated child welfare reporting system to replace aging information systems, which DHS said is a direct response to the structural causes of the out-of-home care deficit.

Why it matters: Out-of-home care spending and eligibility staffing drive major portions of the human-services budget; changes to federal match rates and aging information systems can have multi‑million-dollar effects on state finances and service delivery.

Committee follow-up: Committee members asked for updated deficit numbers and further detail on the integrated reporting system and reunification dollars. DHS said it would provide further details to the subcommittee.