Maryland DHS seeks $791.2M for social services as analysts flag data gaps and rate dispute

The Maryland Department of Human Services (DHS) told the Health and Social Services Subcommittee that the Social Services Administration’s fiscal 2026 operating allowance increases by $11.8 million, to $791.2 million, while analysts from the Department of Legislative Services (DLS) urged withholding funds until missing performance data are provided and recommended a 5% cut to institutional provider rates.

DLS told the subcommittee that DHS did not include reliable fiscal 2024 child-safety and placement data in its submissions and recommended adding budget language to withhold funds until those measures are submitted. The DLS presentation also described a proposed fiscal 2026 deficiency of $47.3 million — which the analyst broke down as $18.5 million in general funds, $400,000 in special funds and $28.5 million in federal funds — and forecast shortfalls driven largely by purchased-institution placement costs.

Why it matters: Foster care maintenance payments and purchased-institution costs are the largest single pieces of the Social Services Administration budget, and disagreements over provider rate setting and data reporting affect how the state plans and pays for out-of-home care and related supports.

DLS highlighted that foster care maintenance payments account for roughly $395.6 million, about half of the SSA budget, and personnel costs were listed at about $297.6 million (roughly 38%). DLS reported that residential provider class daily rates rose by wide margins…