DHS faces $200 million in deficiency requests after FY24 closeout errors; agency outlines fixes and data reforms

Analysts from the Department of Legislative Services told Maryland’s Health and Social Services Subcommittee that the Department of Human Services' fiscal 2026 allowance totals about $4.2 billion, an increase of roughly $55.1 million (1.3%) from fiscal 2025, and that the department requested deficiency appropriations of about $200.1 million to cover fiscal 2024 and 2025 shortfalls.

Saviksha Bujel and colleagues summarized DLS findings: the largest proposed deficiency—roughly $64.3 million—would replace assistance‑payments funds that DLS said were reverted in error at fiscal 2024 closeout. DLS reported other shortfalls: roughly $47.3 million for social‑services administration (including foster‑care shortfalls) and $30.9 million for the Office of Home Energy Programs (OHEP) to cover bill‑assistance and operational shortfalls. DLS also flagged delayed responses to information requests and outstanding mandated reports.

"During the fiscal 2024 closeout process, the department made several errors including reverting funds in error, spending on entitlements greater than the appropriation and incorrectly reporting expenditures by fund source for benefit programs," Saviksha Bujel said. DLS asked DHS to explain causes and corrective steps.

DLS analysts detailed caseload and fund‑balance issues. They described a $228 million annual federal TANF block grant and noted the TANF balance fell from roughly $57 million in fiscal 2024 as the…