Agencies tell Appropriations panel workers' compensation and staffing gaps are driving significant shortfalls

Several commissioners told the Appropriations Committee that workers' compensation and staffing pressures are key drivers of the FY2026 deficiencies the committee is considering.

Department of Administrative Services Commissioner Michelle Gilman said DAS projects a $18.7 million net shortfall in workers' compensation claims driven by escalating medical care costs, claim volume and indemnity growth concentrated in agencies with 24/7 operations such as the Department of Corrections. DAS HR administrator Lisa Annis told the committee agencies are conducting regular file reviews with third‑party administrators and that many agencies have a three‑way touchpoint (DAS, agency HR and the TPA) to manage return‑to‑work issues.

DESPP Commissioner Ronell Higgins said the personnel‑services shortfall and workers' compensation overlap; DESPP has about 60 employees per day on military, FMLA or workers' compensation and plans to recruit a new class in August to replenish trooper ranks. CFO Melanie Sparks said DESPP maintains historic practice of reaching out regularly to staff on leave and is formalizing the practice with a new HR business partner role.

Deputy Commissioner Shironda Carlos (DOC) said DOC projects roughly $24 million in shortfalls before lapses (PS, OE, inmate medical services) and reported about 184 staff out on leave longer than 30 days and 199 vacancies as of January; she said the next training class starts May 1. Michael Rean, DOC CFO, said the $7 million inmate medical services shortfall is mostly OE (pharmaceuticals, outside medical services) with about $1 million in related personnel services.

What they are doing: agencies described targeted recruitment and timekeeping improvements (e.g., Kronos at DMHAS), weekly supervisor contacts for injured workers (DOC said supervisors contact injured employees once a week per administrative directive), three-way file reviews with TPAs, and planned training classes to refill vacancies.

Committee interest: lawmakers asked for job‑classification and vacancy breakdowns by agency, documentation of return‑to‑work contacts, and lists of positions being deappropriated or proposed for lapse so members can evaluate service impacts before the Joint Fiscal deadline.