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Child-welfare officials warn of shortfalls for congregate care and Guardian IT maintenance
Summary
The Department of Child Safety told the House Appropriations Committee it needs a $2.94 million FY2025 supplemental and a $2.32 million ongoing increase to cover congregate-care costs, and requested funding for Guardian maintenance; agency officials said failure to act could disrupt payments to group homes and hamper placements.
Department of Child Safety officials told the House Appropriations Committee on Jan. 29 that the agency faces budget pressure in congregate care and information-technology maintenance and is seeking both supplemental and ongoing funds.
DCS Deputy Director Alex Ong said the executive recommendation includes $2.32 million ongoing for increased congregate-care costs in FY2026 and $2.94 million supplemental for FY2025 tied to contractual rate increases and caseload dynamics. Ong said the department has reduced the number of children in congregate care but still faces costs for placements that are not eligible for Title IV‑E federal reimbursement after 14 days under the Families First Prevention Services Act.
Ong warned that if the supplemental request is not funded, DCS “will not be able to pay our group home providers” and that the department may have to stop accepting children into out-of-home care. He said the agency has used one-time sources and vacancy savings to cover ongoing Guardian maintenance costs, but is requesting $11 million (general fund) in FY2026 for Guardian operations and a companion $1.56 million authority of TANF funds in FY2025 to cover immediate needs.
Committee members asked for precise cut-off dates and timelines; Ong said DCS has been communicating monthly cash-status reports and that some placement and contract decisions were taken to avoid losing bed capacity. Members asked DCS to provide additional detail on contract expirations, RFP timelines and potential program reductions that could be used to reduce the department’s budget pressure.
