Legislative Finance Committee analysts told the LFC subcommittee on child welfare that New Mexico has expanded funding and programs for child welfare but continues to face high staff turnover, elevated repeat maltreatment rates and incomplete spending of targeted appropriations.

The report from Rachel Garcia, the LFC CYFD budget analyst, summarized three performance challenges: preventing child maltreatment and repeat maltreatment; workforce needs; and appropriate placements for children in custody. “New Mexico continues to be one of only a few states that does not have an approved Family First Prevention Services Act, also known as Title IV‑E prevention plan, in place,” Garcia said, adding the missing plan limits federal match opportunities.

Why it matters: LFC staff said federal Title IV‑E prevention funding could help scale evidence‑based prevention if the state’s plan were approved. At the same time, LFC and agency data show protective services turnover remains far above benchmarks and repeat maltreatment rates exceed the national average, limiting the state’s ability to translate funding into better outcomes.

Key facts and figures from LFC’s presentation: the state’s repeat‑maltreatment rate was about 15% at the end of FY24 and approximately 14% in FY25; Protective Services turnover was about 39% at the end of FY24 and an April monthly desktop report showed turnover near 54%; and, in April 2025, CYFD reported about 1,062 active resource (foster) homes but monthly churn—roughly 56 new foster families on average and 43 families no longer active—remains high. LFC staff noted the state increased appropriations to CYFD this session by “about over $100,000,000” through a mix of multi‑year GROW funding and special appropriations, but said some GROW and special appropriations had low spenddown and may revert.

On targeted behavioral‑health startup funding, LFC reported a longstanding concern: a $20 million appropriation intended to seed Medicaid‑reimbursable children’s behavioral‑health services was largely spent on items LFC judged unlikely to be reimbursable by Medicaid or Title IV‑E. “Most of that spending occurred for things that will not be reimbursable by Medicaid or Title IV‑E, and don't result in additional behavioral health services for kids,” Garcia said.

Agency response: Secretary Casados (identified in the hearing as CYFD secretary) told the subcommittee that the department had used several one‑time and GROW funds for workforce incentives, training, a referral incentive program and other initiatives to recruit and retain social workers and foster families. She described contracts and pilots she said are producing early positive signals, including use of a contractor to help investigators triage referrals and a temporary 10% salary increase for master‑level licensed social workers funded through one‑time appropriations.

What remains open: LFC recommended continued monitoring of whether GROW and special appropriations are converted to sustained services, whether the state can secure Family First (Title IV‑E) approvals for prevention services, and whether workforce investments are sufficient to lower turnover and repeat maltreatment. The committee discussed follow‑up requests for detailed spending and contract lists related to the $20 million appropriation.

Ending note: LFC staff said the Legistat process will continue to track progress on the three performance challenges and suggested additional reporting back on appropriations spenddown and measurable workforce outcomes.