Child‑welfare budget fight focuses on a proposed Family Services division, federal draws and foster‑care fixes

Legislative analysts and the Children, Youth & Families Department (CYFD) clashed over how to fund and organize New Mexico’s child‑welfare services on Wednesday, focusing on a proposed reorganization into a new Family Services division, shortfalls in federal Title IV‑E collections, and continuing shortages of frontline workers and foster‑care capacity.

Rachel Garcia, a Legislative Finance Committee analyst, told the committee the two budget packages differ in three major ways: whether to shift prevention‑oriented programs into a newly created Family Services division (executive plan) or keep them inside Protective Services (LFC plan); how to treat a multi‑million‑dollar recent drop in federal Title IV‑E administrative draws (executive plan backfills with state funds, LFC proposes technical assistance first); and whether to fund additional recurring positions in the operating budget (executive) or cover many needs with nonrecurring GROW appropriations (LFC).

“Starting in fiscal year 24, you all began making a transfer of about $18,000,000 from the TANF program into CYFD,” Garcia told lawmakers while summarizing the agency’s funding history and recent supplemental requests. She also flagged that federal reimbursements from Title IV‑E have declined in recent years, a trend the executive budget seeks to backfill with roughly $10 million in state general fund.

Secretary Teresa Casados defended the proposed Family Services division as a reorganization rather than a net addition of staff. “This is not new,” Casados said, “it’s work that is currently happening at CYFD. The people were doing these jobs.” She said the new program code would let the department show prevention‑targeted spending in one place and better evaluate program outcomes.

Workforce, caseloads, and Kevin S. compliance

Lawmakers focused on workforce numbers and remedial requirements tied to litigation known as Kevin S. LFC and CYFD staff said the department needs funding to support additional frontline staff to meet caseload standards spelled out in court orders. The LFC recommendation would fund targeted nonrecurring investments — including $24 million over three years to reduce protected caseloads — while the executive favors recurring operating increases for additional caseworkers and administrative positions.

Foster care, office stays and foster‑parent pay

Members pressed CYFD on foster‑care measures. Department officials reported an average of about 2,100 children in foster care in recent months. Committee members repeatedly raised the stipend paid to foster families: daily maintenance rates range from roughly $20.91 per day on the low end to higher licensed and specialized rates for medically complex children; the department said the executive request would fund a targeted increase that, in administration materials, was described as doubling some maintenance levels up to a cap of $900 per month for certain placements. Secretary Casados said the department is asking for additional funds to raise foster‑parent payments but acknowledged the package heard in committee does not include the full $25 million the governor outlined when announcing broader pay goals.

CYFD also described steps to reduce office stays — circumstances when children remain overnight in a CYFD office while suitable placements are found. The agency opened two short‑term multi‑service homes, AMI and Hope House, and said that model is a temporary bridge while it scales foster‑care plus models that pair trained foster families with wraparound supports. The department said it is recruiting and training families for that model.

IT, reporting and CCWIS implementation

Lawmakers also pressed CYFD on its child‑welfare IT modernization (the CCWIS/New Mexico Impact Project). Representatives said the project has been underway for many years, has cost increases and schedule slippage, and that they expect concrete updates and milestones. CYFD officials said some contract and federal reimbursement issues complicated past draws and that implementation remains behind schedule.

Budget motions and next steps

Committee business later recorded a motion to adopt the Legislative Finance Committee’s recommendation for CYFD’s budget; that motion was seconded and adopted in committee with Representatives Pettigrew and Duncan recorded in opposition. Analysts and department staff signaled more technical follow‑up on claimable federal funds, reversioned appropriations, and a March report on compliance items from the remedial order.

Votes at a glance

- Motion to adopt LFC recommendation for Children, Youth & Families Department operating budget: moved by Vice Chair Dixon; seconded by Representative Silva; outcome: approved. Opposition recorded: Representative Pettigrew, Representative Duncan.

Sources: House Appropriations & Finance Committee hearing, CYFD secretary testimony, Legislative Finance Committee analysts.