Albany County DSS says Medicaid costs drive modest county share increase, flags SNAP, child care and shelter pressures

The commissioner of the Albany County Department of Social Services told the Legislature’s finance committee that the 2026 proposed budget reflects Medicaid-driven cost pressure and several program-level risks tied to federal policy.

"Over $75,000,000 because the New York State required Medicaid share. The remaining 78,000,000 is for the operation of our state and federal mandated programs and services," the commissioner said, characterizing Medicaid as the largest budget driver. The department projects an overall appropriation increase of 0.7% with a 0.6% increase in county share driven by Medicaid costs.

The department asked for several new eligibility positions in its Medicaid division and clerical positions intended to maintain caseload processing and compliance with state and federal mandates. The commissioner said some new positions will be converted from existing roles ‘‘so we can remain budget neutral.’’ She also described a negotiated step increase for senior child support investigators — a $3,000, roughly 4.47% pay step above the standard 3% increase — approved in a memorandum with the union.

On SNAP, the commissioner warned of a forthcoming reduction in federal administrative reimbursement that will cut the county’s share of SNAP administrative revenue from about 50% to 25%. She estimated an administrative revenue loss of roughly $196,000 in late 2026 and about $783,000 in 2027 and said the administrative workload will likely increase with new able-bodied adult work requirements. She also noted a separate, immediate uncertainty: federal funding delays left the status of November SNAP benefits unresolved and New York State had not provided guidance at the time of the hearing.

Child care funding remains a close-watch item. The department requested an additional $1 million based on forecasted expenditures (the transcript cites a projected $13.8 million expense for 2026 and current spending near $12.7 million). The commissioner said Albany County’s child care block plan and maintenance-of-effort requirements position the county to avoid a 2026 funding deficit but that the situation is monitored monthly.

The department requested a $600,000 increase in safety-net funding because of shelter usage and rising shelter-related security costs; shelters are reported consistently full and homelessness-related expenses are expected to rise if federal or state housing supports are reduced.

Legislators pressed the commissioner on details. Legislator Breedy asked about an immigration coordinator position created after a New York State audit; the commissioner said the role will strengthen documentation and eligibility determinations for specialized populations, including refugees, and will work closely with the county immigration services unit and legal aid providers. On questions about roles labeled ‘‘homeless’’ in the budget, the commissioner explained earlier client-support titles were changed to ‘‘homeless support coordinator’’ and ‘‘homeless support specialist’’ to reflect intensive family-centered case management and oversight of single-adult homeless caseworkers.

The commissioner emphasized recruitment and retention challenges across client-facing roles and said civil service is assisting recruitment. She described longer learning curves for many positions and said the department will continue selective hiring and workforce development strategies to retain staff.

Policy context and next steps: the commissioner said some federal changes likely will not affect 2026 materially but could have larger impacts in 2027 and later. The department is monitoring guidance from state and federal partners and will return with additional details as policy and funding decisions crystallize.