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DHS requests capital funding to address deferred maintenance at state treatment facilities and to expand early-childhood facilities
Summary
Direct Care and Treatment (DCT) officials told the committee they seek capital funds for asset preservation across state-operated treatment facilities and a $15 million request for Saint Peter water and sewer infrastructure; Department of Children, Youth, and Families asked for $2.7 million for early-childhood facility grants.
Nancy Freeman, chief operating officer for Direct Care and Treatment (DCT) at the Department of Human Services, and Dan Storkamp, operations director, presented the agency's capital priorities and said DCT needs recurring investment to address a substantial deferred-maintenance backlog across state-operated treatment campuses and group homes.
DCT officials said the agency manages roughly 3 million square feet of state-owned facilities and 70-plus group homes, with a replacement value they reported as about $1 billion. They presented a deferred-maintenance estimate from a recent condition assessment of about $185 million and described a 10-year strategic plan that identifies roughly $30 million per biennium to address critical needs.
The agency described a specific construction priority for the Saint Peter campus: a $15 million project to replace and upgrade water mains, sanitary sewer and storm sewer systems. DCT said the campus systems were largely built in the 1950s, have exceeded useful life, and engineers have recommended full replacement to avoid likely failures that would interrupt continuous operations for more than 1,100 patients, clients and staff. DCT said the design was funded in 2023 ($1.05 million) and is complete, making the project shovel-ready if construction funds are appropriated.
Freeman also summarized an asset-preservation request intended to keep buildings safe, accessible and energy efficient; the agency said investments such as roofs, HVAC and insulation generate operational savings and reduce long-term replacement costs. The DCT testimony emphasized that the capital requests support patient care, staff safety and continuity of services in therapeutic and secure settings.
Separately, Jennifer Summerfield of the Department of Children, Youth, and Families (DCYF) presented an early-childhood facilities proposal: $2.7 million in general obligation bonds to provide grants for construction or renovation of child-care and early-learning facilities statewide. Summerfield said grants would be awarded via competitive RFP with a 25% nonstate match and that recent appropriations have left a modest pool of funds available for projects in 2025. The program has historically supported school-district and local projects, with a majority of past projects in Greater Minnesota.
Committee members asked clarifying questions about costs and past design funding. DHS and DCYF officials said they would provide further detail and stand ready to host site tours of facilities for committee members.
