DCYF outlines $3 million biennial reduction to home‑visiting account; performance payments removed, three local programs end services

Department of Children, Youth, and Families (DCYF) officials told the Home Visiting Advisory Committee during a June meeting that the legislature reduced state funding for the Home Visiting Services Account, resulting in roughly $3 million in general‑fund reductions over the coming biennium and immediate implementation actions by the agency.

Erica Hallock, who led a legislative overview for the meeting, said lawmakers entered the session facing a long‑range budget gap and used a mix of cuts and revenue changes to close it. "Washington state is 1 of the only states that requires a 4 year balanced budget," Hallock said, describing how that constraint shaped decisions by the Legislature and led to reductions and delays in early learning and home visiting funding.

Julie Watts, who introduced herself as "the new deputy director for government affairs for DCYF," explained how the cuts land in the home visiting account. DCYF reported the legislature took a $1,250,000 underspend from the current fiscal year, applied a $1,500,000 general‑fund reduction in state fiscal year 2026, and carried the same assumptions into fiscal year 2027 — yielding about a $3,000,000 reduction over the two‑year period. The Legislature also applied a 10% cut to the dedicated cannabis fund contribution and left total TANF funding unchanged; federal MIECHV grant awards were expected to rise roughly 6% in the award year discussed.

Laura (DCYF staff) described implementation steps the agency is taking to preserve direct services where possible. "The biggest impact on our LAAs is that we did, remove the performance payments," she said, referring to DCYF's prior performance‑based contracting incentives. DCYF also reduced administrative and infrastructure spending, delayed some rate implementations, and used a "rates‑informed budgeting approach" to adjust budgets for federally funded MIECHV sites.

Agency staff said underspend cited by the Legislature reflected one‑time delays — for example, contracts that had not fully spent by the end of the fiscal year — and that DCYF pushed back in negotiations because those dollars were planned to be spent later in the year. Watts said the department had explained the underspend was not recurring, but the Legislature assumed some of it could be absorbed into ongoing budgets.

DCYF told the committee that three local implementing agencies (LAAs) have announced they will not continue home visiting services into fiscal year 2026 or are currently tapering services. Staff identified impacted communities as Spokane (Akin program), Walla Walla (ACHIN program, described as the only home visiting program in that community), and a Mount Vernon/Skagit program (referred to as Bridget College in the meeting). DCYF said the Spokane provider can continue to serve some families through other internal services; in Mount Vernon most families were transitioned into other local programming, while Walla Walla has a gap because it does not have an alternative home‑visiting provider.

Renee (DCYF staff) described how DCYF prioritized contract decisions through program performance reviews and used performance and capacity conversations to "right‑size" program slots and budgets. She said nine programs had long‑running performance challenges and received performance plans; an additional nine were nearing resolution of shorter‑term challenges. Renee also said MIECHV‑funded programs received budget increases that were informed by rates analysis, although the department is not yet implementing statewide rate payments — a point DCYF staff clarified in response to questions.

Agency staff said precontract materials started going out to local programs the week following the meeting and that DCYF will continue to negotiate system contracts and confer with programs. DCYF plans a further contracts and budget update in July and said it is prioritizing preservation of tribal contracts and regional referral coordination for TANF‑linked enrollment slots. The department also noted it had posted updated slide materials and sent contract communications to grantees after vetoes and budget changes were finalized.

Discussion vs. decisions: DCYF characterized the legislative reductions as agency implementation of legislative budget actions. The formal changes described are (a) legislative reductions to the home visiting services account and the cannabis fund contribution, and (b) DCYF decisions to remove performance payments, reduce admin/infrastructure, adjust LAA contracts, and redistribute some TANF/MIECHV funds. Program closures were decisions by the LAAs, as reported to DCYF; staff said they continue follow‑up to place families where possible but confirmed gaps remain in some communities.

Outlook: DCYF said it will continue negotiating contract details with local programs, provide additional numeric details about federal MIECHV awards and the cannabis fund amounts, and return to the committee with a budget and contracting status update in July.