DHW seeks vehicle replacements, IT upgrades and flexibility to hire contract nurses as part of "other programs" bill

The Joint Finance and Appropriations Committee on Jan. 13 reviewed the Department of Health and Welfare’s indirect support services and licensing and certification budget items, including requests for vehicle replacements, IT upgrades and flexibility to use contract nurses for required facility inspections.

Legislative Services analyst Alex Williamson said the department’s one‑time replacement requests total $2.8 million and include $1.8 million to replace 60 vehicles, about $384,000 for visitation rooms, and roughly $648,000 for office remodels and furniture. The agency also requested $1.8 million in one‑time Office of Information Technology hardware replacements (including laptop refreshes) and an ongoing appropriation request tied to SQL Server software assurance; the governor recommended those items except for a cloud server capacity request the agency later resolved through other solutions.

Director Alex Adams told the committee DHW’s vehicle fleet totals about 435 vehicles statewide, roughly two‑thirds of which are used by child welfare staff. He said the department aims to replace its fleet on a seven‑year cycle; vehicles proposed for replacement this year have odometer readings between about 105,000 and 159,000 miles. Adams said child‑welfare work — transporting children to visitation, court and medical appointments — drives much of the fleet use.

Several committee members asked for more detail about the fleet: Representative Tanner asked whether last year’s vehicle request had been funded and whether vehicles had been purchased; Senator Wintrow and Representative Mitchell asked for a full fleet list, mileage and replacement rationale so the committee could assess need and prioritize replacements. Williamson said she would follow up with agency staff to provide those details.

Licensing and certification asked for an exemption from a transfer limitation placed in Section 8 of Senate Bill 1268 (2024) that restricts transfers from personnel cost (PC) expense class to other expense classes within the Department of Health and Welfare. The division historically hires contract nurses to perform facility surveys when it lacks full‑time staff. Williamson said the division had requested a one‑time transfer last year (about $400,000); roughly $300,000 was used and about $100,000 reverted.

Director Adams told the committee that contract nurses cost about $90 to $95 per hour while state employees in the division are paid about $35 per hour. He said the licensing division’s reliance on contract nurses peaked during the pandemic but that vacancies and turnover have improved in recent years. Adams added that every other state agency has the legal ability to transfer personnel dollars to operating dollars; he characterized the request as restoring a flexibility that other agencies possess.

Other details discussed: the department described a 5‑year staffing trend that shows vacancies declining and personnel spending dominating indirect support services costs; the agency also said the department had a maintenance and facilities backlog in some offices and had included targeted requests for visitation room upgrades that support child‑welfare work. Williamson said the governor had recommended the licensing and certification supplemental and the related enhancement. The committee asked for follow‑up materials to show fleet composition and the licensing division’s historical use of contractors versus hires.

The committee will consider these items during the Health and Human Services program maintenance and other‑programs enhancement deliberations this week.