DHS reveals $7.7M budget increase for child support services in fiscal 26

The recent Health and Human Services (HHS) Committee session held on February 27, 2025, highlighted significant budgetary changes and challenges within Maryland's child support services. The proposed fiscal year 2026 budget reflects a notable increase of $7.7 million, or 7.6%, bringing the total budget to approximately $109.4 million. This increase is primarily driven by personnel expenses, which constitute about 59% of the budget, aimed at supporting local child support offices.

A substantial portion of the budget, approximately $20.1 million, is allocated to cooperative reimbursement agreements with various law enforcement agencies, including the state's attorney's office and sheriff's office, to cover federal child support enforcement activities. In Baltimore City, $7.9 million is designated for contracted child support services with a private entity.

The budget's increase is largely attributed to a $5.5 million rise in cooperative reimbursement agreements, aligning the budget with anticipated costs. However, the fiscal year 2025 appropriation appears lower due to prepayments made in the previous fiscal year. Additionally, the budget includes funding for the Allegheny County Magistrates contract and salary increases.

A critical discussion point was the Child Support Reinvestment Fund, which has experienced revenue growth from $9.1 million in fiscal year 2018 to $20.7 million in fiscal year 2024. However, projections indicate a decline in revenues for fiscal years 2025 and 2026, raising concerns about the sustainability of funding. The Department of Human Services (DHS) has been tasked with explaining the reasons behind this anticipated decrease, which could stem from changes in federal reimbursements or lower collection rates.

The session also revealed that the fiscal year 2025 budget did not include anticipated funds from the Child Support Reinvestment Fund, which could lead to increased state spending. DHS acknowledged this omission and is currently working with the Department of Budget and Management (DBM) to address the issue.

Moreover, the committee noted a reduction in turnover expectancy within the personnel section, with 54.6 vacant positions reported as of December 31, 2024. Despite recruitment efforts, some positions have remained unfilled for over a year.

The meeting concluded with concerns regarding the performance measures of child support services. DHS has been required to submit multiple reports on performance metrics but has only provided one, limiting the analysis of the program's effectiveness. The committee emphasized the need for DHS to clarify its plans to meet reporting requirements and address barriers to timely data submission.

Overall, the discussions during the HHS Committee session underscored the complexities and challenges facing Maryland's child support services, particularly in terms of funding and performance accountability. The committee's ongoing oversight will be crucial in ensuring that these services continue to meet the needs of families across the state.