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Veterans agency trims Charlotte Hall budget after contractor change; officials cite capacity, ratings and design work for new home
Summary
DLS told lawmakers the Department of Veterans and Military Families’ fiscal 2026 budget declines slightly, driven by changes to Charlotte Hall Veterans Home funding mechanisms after a new contractor began in June 2023. Agency leaders said occupancy is rising, quality measures are improving and federal VA construction funding affects a planned new
The Department of Legislative Services reported to the Public Safety and Administration Subcommittee that the Department of Veterans and Military Families’ (DVMF) fiscal 2026 operating budget decreases by about $608,000 (0.9%), largely because the funding mechanism for Charlotte Hall Veterans Home changed after a new management contractor took over in June 2023.
DLS presented that the fiscal 2026 allowance totals roughly $63.4 million, of which about $49.7 million is for Charlotte Hall operations; DLS said about 95% of Charlotte Hall operating funds are for contractual services to manage the facility.
Why it matters: Charlotte Hall is Maryland’s only assisted‑living and skilled‑nursing veterans home; its occupancy, federal ratings and funding mechanism affect care delivered to veterans and the department’s requests to the legislature.
DLS findings and Charlotte Hall status
DLS analyst Yashoda Arai said special funds drop sharply in the fiscal 25 to 26 comparison because the new funding mechanism (beginning fiscal 25) channels Medicare, Medicaid and private‑pay receipts to the general fund, with the state paying the contractor through general‑fund expenditures. DLS also noted proposed fiscal 25 deficiency appropriations that reduce total appropriation by roughly $5.8 million and asked the department to explain unspent special and federal balances from prior years.
DLS reported that Charlotte Hall paused admissions from April to November 2023 for facility assessments and corrective actions and that occupancy has increased as of December 2024 but remains under capacity. DLS noted the facility’s overall star rating was 1 as of December 2024 with staffing at 3 stars and health inspections and quality measures at 1 star; DLS asked the department to describe corrective steps.
Agency response and follow‑up items
Secretary Tony Woods said the department has processed over 5,000 VA claims and awarded more than $500,000 in grants; he told the committee Charlotte Hall…
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