Human Services seeks $76.7 million increase; childcare gap and Oakley workforce cited as top priorities

Bob (agency executive) told the appropriations committee that the Department of Human Services (MDHS) is requesting a $76.7 million increase in general funds for the coming budget cycle, with the largest single item—about $47.9 million—earmarked to preserve child‑care subsidy levels for roughly 36,000 children in approximately 20,000 families.

Why it matters: The department said a failure to fund the request would likely force it to reduce child‑care subsidies and build a waiting list for assistance, which the department said would affect parents' workforce participation and education pathways.

Child care and TANF conversion

MDHS said it currently draws approximately $121 million from the federal Child Care and Development Fund (CCDF) and can convert up to 30% of the current year’s TANF grant to CCDF (the agency cited about $26.5 million from TANF conversion). The department said these sources still leave a gap of about $47.9 million to maintain service levels; without that state funding the agency said it would need to disenroll families or create a waiting list.

Adolescent opportunity and youth services

The agency proposed a smaller, targeted adolescent opportunity pilot at $1.5 million to test community‑based diversionary programs in 4–5 high‑need counties (the agency listed Harrison, Hinds and DeSoto among likely pilots). The agency said community programs are less expensive than sending a youth to a state youth development center — an Oakley placement was cited at roughly $42,000 per youth per year — and that local juvenile court judges have requested more community referral options.

Workforce and career ladders

The department said a major portion of the request funds career‑ladder progressions for eligibility staff across 82 counties, for youth‑services workers (including a new starting salary alignment for Oakley staff closer to Department of Corrections starting pay), and for adult protective services staff. The agency asked for 88 new county office positions and for pay progression funding tied to previously approved career ladders.

IT modernization and federal spending authority

MDHS told the committee it seeks to right‑size federal spending authority after pandemic years (the agency cited reducing an elevated federal spending authorization by about $207 million to realign to expected spending). The agency also described a multi‑year IT modernization project (procurement completed; vendor named as Deloitte) to merge multiple eligibility platforms for SNAP, TANF, child care and child support into a cloud system; the agency said a protest to the procurement was withdrawn and it expects to start implementation once final federal approvals are secured.

Other details

• The department said it currently serves about 36,000 children in child‑care subsidy programs representing about 20,000 families and spends approximately $16.3 million per month on the subsidy program.

• MDHS described Oakley staffing challenges and turnover rates that historically reached 25–30% and said it obtained approval for a new career ladder that aligns youth services starting pay with correctional officer pay to reduce turnover; the department requested funding to add 24 youth service workers at Oakley.

• Child support: The agency highlighted the contractor Young Williams, reporting a high return on investment (about $8 collected for every $1 spent) and said it plans a future RFP to run in the coming months.

What the agency asked the Legislature to do

MDHS asked for the full $76.7 million general‑fund increase as described (including the $47.9 million for childcare, career ladder progression funding, and time‑limited positions funded largely by federal grants). It also asked the Legislature to allow use of previously approved capital/capital‑project funds to proceed with the IT modernization.