Appropriations panel presses DCF on rising transport costs, shelter funding and secure-treatment shortfalls

BURLINGTON, Vt. — State Department for Children and Families (DCF) officials briefed the Appropriations Subcommittee on Human Services on the department's budget adjustment requests, highlighting technical realignments to maximize federal revenue, growing transportation contract costs, expanded shelter investments and a $1.9 million shortfall to sustain two secure youth-treatment programs.

"Our mission is to foster the healthy development, safety, well-being, and self-sufficiency of Vermonters," Interim Commissioner Sandy Hoffman said as the department opened the presentation, adding that DCF serves roughly 200,000 Vermonters annually. The committee heard a line-by-line review of proposed BAA adjustments and supporting spreadsheets posted for the record.

Megan Sweeten, DCF chief financial officer, told lawmakers that one technical request is a roughly $50,000 annual cost to procure an external earnings verification system after a free service was discontinued; the purchase is intended to improve eligibility accuracy for benefit programs. Committee members pressed for documentation supporting a separate transfer tied to ADS service-level agreements, and staff advised the Administration for Human Services (AHS) could provide further detail.

Members repeatedly flagged rising transportation costs within the Family Services Division. DCF said transportation contracts ' including secure transports, routine school and medical trips, and sheriff-supported transfers ' have grown substantially year over year and are difficult to control given the limited provider market. Legislators asked that a previously promised breakout report on secure transports (originally requested for April/May) be delivered to the committee; DCF agreed to share the report.

On caseloads, DCF reported a decline in substitute-care counts but an increase in subsidized adoptions, meaning cost-per-case averages can shift with caseload composition. Lawmakers raised an apparent discrepancy about out-of-state residential placements: the department said youth in out-of-state residential care have fallen over the long term but that short-term cost and budget variances can make month-to-month figures look higher. DCF agreed to provide more granular data comparing budget baselines to actual case counts.

Lily Sojourner, director of the Office of Economic Opportunity, described grants-management changes and a move of two limited-service positions into personal services so the office can continue administering growing grant workloads. "The amount that we've expended on HOP awards has grown from $3.3 million in state fiscal year '21 to about $24.5 million more recently," Sojourner said, noting the agency will publish annual performance reports and convene an advisory group this year to update stale performance measures.

Sojourner and committee members also discussed shelter investments. DCF said $2 million in one-time BAA funds covered upfront renovation and conversion costs for new emergency-shelter beds and that additional base funding will be needed to sustain expanded capacity.

The committee pressed DCF on a complex set of federal housing grant developments: HUD had rescinded and then reissued a notice of funding for Continuum of Care awards, and staff said a court order and continuing litigation leave some program rules uncertain. DCF and local applicants are preparing materials in case HUD's notice is enforced; the department warned the earliest funding gap could materialize on July 1, 2026, if federal awards are delayed.

On secure residential treatment for youth, the department asked for an additional $1.9 million to continue operating Red Clover and a newly opened short-term stabilization program in Windham (West River). DCF said the two programs together require roughly $8 million; the department currently has about $3.7 million budgeted and is using one-time appropriations to bridge the gap. Committee members expressed concern about relying on one-time funds for ongoing costs and asked for an updated money-flow chart showing how prior appropriations and carry-forwards were used.

Program details provided by DCF included capacity counts: West River was identified as a three-bed staff-secure program and Red Clover as a four-bed facility, both serving roughly ages 12 to 18. DCF also requested $150,000 one-time to update IT systems that support the child-abuse hotline to meet current server requirements.

Lawmakers raised two fiscal items for follow-up: clarification of roughly $9.2 million cited for "choices for care" back payments versus larger aggregate figures discussed during presentations, and up-to-date projections for General Assistance (GA) emergency housing costs through June. Chair and members asked DCF to obtain a clear expenditure-authority explanation from agency contacts and to deliver requested spreadsheets by Friday.

On more than one occasion lawmakers pushed the department for data transparency and longer trend series rather than single-year snapshots. Several members urged DCF to track and publish multiyear trendlines for Reach Up and shelter caseloads to inform both budgeting and policy decisions.

Representative Kimberly Miguel and others raised a policy question about DCF's use of youth Social Security survivor benefits while children are in state care. DCF staff said they are reviewing the practice, estimating total Vermont figures in the mid-hundreds of thousands (figures described as preliminary) and planning to provide a more detailed breakdown.

The subcommittee concluded by scheduling follow-ups: DCF will provide the secure-transport breakout, a money-flow chart for secure-residential funding, GA emergency housing projections, HOP performance links, and clarification of Choices for Care spending. The committee adjourned to reconvene after lunch with additional witnesses.