Acting CYFD secretary reports workforce gains and progress on Kevin S. settlement as lawmakers press on GROW spending

Valerie Sandoval, acting cabinet secretary for the Children, Youth and Families Department, told the Senate Finance Committee on Jan. 27 that the agency has made measurable workforce and compliance gains even as lawmakers pressed it to spend growth (GROW) appropriations more quickly.

Sandoval gave a snapshot of the agency’s operations and recent actions, saying CYFD employs about 2,400 FTE with roughly 1,800 positions filled and manages about 2,100 children in foster care statewide. She highlighted several workforce steps: vacancy rates have fallen from 29% in September to 25.8% as of the most recent update; the average time-to-hire has been reduced from roughly 80 days to 45 days; and 607 new employees were hired in 2025, with 445 still employed.

“The department is continuing to go down,” Sandoval said of the vacancy rate, and she described a workforce strike force led by the chief operating officer to focus on recruitment, retention and training. She added that CYFD has contracted Deloitte to conduct 'stay' interviews and expects findings within a month or two.

The committee also heard a timeline of the Kevin S. litigation. Sandoval summarized that the case began in 2018, resulted in a final settlement agreement in 2022 and subsequent remedial orders: remedial order No. 1 issued in 2025 was not met in many respects, prompting remedial order No. 2. She said co‑neutrals and plaintiffs have recently “noted progress,” and that a hearing with the arbitrator is scheduled for early March to determine whether additional remedial steps are required.

“We are currently in remedial order number two,” Sandoval said, adding that the agency had reached 100% of required wild child checks for children entering custody in October and November and had hired staff required by the remedial orders, including emergency response positions and behavioral health specialists.

Sandoval reviewed recent statutory and administrative shifts relevant to CYFD: Senate Bill 42 moved responsibility for CARA (substance‑exposed newborns) to the Health Care Authority and required new rulemaking and care coordinator availability; the federal Family First Prevention Services Act requires a strategic plan for reimbursement of prevention services; and House Bill 5 created an Office of the Child Advocate attached to the attorney general’s office to investigate complaints against CYFD.

On GROW funding, the Legislative Finance Committee told the panel that FY25 appropriations for four GROW pilot projects totaled $6.2 million, of which $4.2 million reverted. FY26 appropriations added $32.6 million for eight additional projects; Sandoval said just over $10 million of that is expended or encumbered and that roughly two‑thirds of the FY26 allocation remains unspent. Lawmakers pressed the department to explain prior reversion rates and how future funds would be used.

Chair Munoz and other members questioned why multiple prior appropriations had such low spend rates. The chair cited prior years’ reversion rates and recruitment spending that he said produced a small number of hires relative to the money spent. In response, Sandoval said the department is meeting every two weeks on GROW and has placed recruitment and spending plans in members’ packets.

Committee members also pressed Sandoval on CARA implementation. When Senator Padilla asked how many CARA babies are in state care, Sandoval said the department can provide that figure and indicated monthly arrivals have averaged “around 25-ish” since the directive. She said babies generally stay in the hospital about 17–21 days after delivery before entering state custody and that CYFD is increasing foster parent payments for more medically complex infants and coordinating services with other agencies to support family reunification where appropriate.

Amanda Romero, CYFD chief general counsel, clarified the standard and process for termination of parental rights (TPR), explaining that both state and federal law require reasonable reunification efforts first and that TPR decisions are case‑by‑case and may take many months to ensure legal sufficiency.

Sandoval also updated the committee on New Mexico Impact, the department’s CCWIS case‑management system. The agency has spent $50 million so far and expects total project costs of $90.4 million. Sandoval said system integration, user testing and staff testing are scheduled, with a target go‑live date of Aug. 17, 2026, contingent on meeting quality and mandatory requirements.

Lawmakers pressed for a one‑page status update on CARA and asked CYFD to return before the session with additional data. The committee chair directed CYFD to provide more detailed GROW spending documentation and agreed to weekly follow‑ups with the agency and legislative staff.

What’s next: CYFD will provide requested breakdowns (CARA counts, numbers of parents in treatment, GROW spending detail and CCWIS milestones) and return for further budget and oversight hearings; a remedial hearing in the Kevin S. matter is scheduled for early March.