Child-protection agency says 450 more children in custody, seeks $32.7 million deficit appropriation

An agency presenter told the Legislative Budget Committee that Mississippi's child-protection system has a roughly 450-child net increase in custody since June 2023 and is seeking about a $32.7 million deficit appropriation for 2025 to cover immediate costs, with the annualized gap for 2026 estimated higher.

The presenter said the extra children are driving higher per-child costs, more residential and contracted placements — including out-of-state treatment — and larger workforce needs. "We have had a consistent steady increase of children coming into custody faster than children are leaving since June of 2023," the presenter said.

Why it matters: The agency explained that taking children into state custody increases the state's duty of care and requires maintaining safe caseload ratios and adequate clinical supervision. The presenter said meeting the caseload standard tied to the Olivia Y court settlement remains central; the agency reported progress but said the lawsuit still sets a 90% target for small caseloads.

Key details and drivers

The presenter described three main drivers of the deficit request: (1) additional children in custody (a net gain of about 450); (2) higher-cost placements and treatment needs for children with acute or specialized needs that are not available in-state; and (3) workforce costs to hire and retain caseworkers and supervisors to meet caseload and supervisory ratios.

The agency estimated roughly $40,000 of annual cost per child as an illustrative figure when describing the fiscal impact of more children in custody. The presenter said the agency has exhausted in‑state treatment options for certain high‑need children and has contracted out-of-state placements, which are paid at 100% from general funds for those contracts. At one point the presenter said the agency is "stuck with $24,000,000 obligated out of state for 46 children." The presenter also said hotels and short-term contracts were used when beds were not available in other facilities.

Caseloads, staffing and supervision

The agency noted progress on caseload distribution: the share of caseloads meeting the very stringent Olivia Y standard has risen to a historic high (the presenter said "about 79%"), while the number of caseloads in the most dangerous range has been reduced. The agency said the Olivia Y settlement sets a 90% target for small caseloads.

The presenter said the net increase of 450 children implies the need for roughly 108 additional caseworkers and additional clinical supervisors; the supervisory ratio cited was about 5 supervisors to 1 frontline worker. The agency reported a turnover rate around 21–22% for front-line staff and said it takes approximately five months to train a new caseworker to a full caseload.

Court process and attorneys

The presenter asked lawmakers to fund attorneys to represent the agency in court in order to speed decision-making and reduce children’s time in custody. She said the agency already has 18 attorneys paid through the attorney general and its budget, and estimated the cost of adding 60 agency attorneys (state salary plus fringe and federal match considerations) at about $3.6 million.

The presenter argued that faster, agency‑supported legal work could shorten lengths of stay in custody: "At the rate at the number of kids we have today, if we shave off a month from every child's stay in custody, then we would save $14,000,000," she said.

Federal funding, prevention and contracts

The agency said it has used ARPA and TANF funds for prevention and in‑home wraparound services, and it is working with Medicaid to pursue Medicaid reimbursement for some out‑of‑state placements or the providers who accept state children. The presenter said some vendors have been reluctant to accept TANF funds because of the regulatory burden and audit risk.

Olivia Y and monitoring costs

The presenter reminded the committee that the Olivia Y settlement (a court supervision arrangement identified in testimony) still imposes monitoring and fixed monthly fees (the presenter said a monitoring fee is paid monthly as required by the court). The agency also pays litigation defense counsel.

Requests and fiscal figures described in testimony

• A near-term deficit request for 2025 described as about $32.7 million (the presenter used both the phrase "about $32, almost $33 million" and later referred to a specific 2025 deficit figure of 32,747,112).

• When annualized into the next fiscal year the presenter indicated a larger figure (she cited an annualized figure of about $45 million when combining lines of the request).

• About $24 million in 100% state‑funded out‑of‑state placement obligations for roughly 46 children was cited as an existing contractual cost.

• An $11 million contract figure was discussed in context of sustaining caseloads and services (the presenter described a roughly $11,000,000 contract the agency said was necessary to maintain current caseload levels).

Questions from legislators and clarifications

Senator Simmons and other committee members asked where the $24 million in out‑of‑state funds went and whether Medicaid could reimburse such placements. The presenter said the state is negotiating with providers and Medicaid to enroll out‑of‑state providers in Mississippi Medicaid and that Medicaid has begun expediting applications; she said doing so could substantially reduce the state's 100% general‑fund burden if providers accept Medicaid reimbursement.

The presenter also said the agency has implemented evidence‑based prevention and in‑home wraparound services that have reduced removals in some other states, but in Mississippi the custody numbers have continued to rise despite those interventions.

What the agency asked the Legislature to do

The presenter asked for (1) the deficit appropriation cited for 2025, (2) funding to annualize staffing and contractual needs for 2026, and (3) funding for courtroom attorneys to represent the agency and accelerate case disposition. She also asked for continued support for prevention services and workforce pay to reduce turnover.

Ending note

The agency closed the presentation by opening to committee questions; members pressed on placement costs, TANF and Medicaid options, and the timeline for various federal approvals. The presenter said efforts to enroll out‑of‑state providers in Mississippi Medicaid were ongoing and that Medicaid had begun expediting applications for those facilities.