DHS outlines multi-year service delivery transformation; senators press for spending detail and scheduling

Department of Human Services officials told the Senate Health and Human Services Finance and Policy Committee that a multi-year effort to modernize human-services technology is underway, but committee members sought more detail on how much of the legislatively appropriated funds remain unspent and when specific deliverables will be completed.

Jeff Jorgensen, Business Transformation Officer at DHS, said the transformation program covers five initiative areas and 21 defined outcomes, all aimed at improving client and worker experience through iterative, product-focused development. "This vision's a multi year multi year effort to shift the approach with how we connect Minnesotans to critical services," Jorgensen said.

Dave Greenman, DHS chief financial officer, and Rachel Grimes, business integration director for the Department of Children, Youth and Families, described accomplishments and remaining work. Officials said MN Benefits — the client application and benefits system — has received a string of incremental improvements (document routing fixes and a pilot texting service in 12 counties and two tribal nations) intended to reduce call volume and speed determinations. Officials also reported that two licensing types (certified child care and licensed child care) are now available as electronic licensing applications and that three additional license types are in progress as part of a planned provider licensing and reporting hub.

Committee members pressed DHS about spending. Senator Hoffman referenced a figure in committee discussion that roughly $44.5 million had been appropriated across the five initiatives and asked why only a portion has been spent; DHS officials said some work required rapid responses to federal Medicaid/CMS requirements and other statutory changes that took priority and that certain modernization tasks must be sequenced to avoid disruption to core eligibility systems. Greenman told senators those system dependencies and midstream federal requirements slowed some planned expenditures and required re-prioritization.

Several senators raised the complexity of replacing or modernizing large legacy systems such as METS, MAXIS and SSIS and urged deeper, earlier engagement with county partners. Rachel Grimes said a recent SSIS review produced 56 recommendations; DHS determined 16 were feasible now and has scheduled implementation of 11, and she offered to provide more detailed follow-up. Grimes also outlined that SSIS and other legacy-system work must coordinate with national requirements and county operations to avoid creating additional work for frontline staff.

Senators expressed concerns about data security and federal-level incidents; the committee requested follow-up on safeguards and whether recent federal developments affect Minnesota systems or vendor arrangements.

DHS officials emphasized internal changes in delivery approach — adopting agile/product practices, conducting community engagement events and establishing performance indicators for each outcome — and said they will report progress to legislative oversight committees annually, with specific reporting deadlines required by statute and appropriation language.

The committee did not take legislative action during the hearing but asked DHS to return with more detailed spending schedules, updated timelines for major deliverables, and a plan to address county operational burdens tied to technology changes.