Acting CYFD secretary asks for $422M amid scrutiny of office stays, foster capacity and IT project costs

Valerie Sandoval, acting cabinet secretary for the Children, Youth and Families Department, told the Legislative Finance Committee the agency’s FY27 request seeks $422.3 million to shore up workforce capacity, reduce caseloads and expand community-based supports.

Sandoval emphasized staffing and placement priorities. "We request 422,300,000 to address the rising needs and costs required to serve our state children, youth, and families," she said, noting the request includes $61.3 million in growth funding and an additional $43.1 million in general fund. The growth funding is targeted to fill existing positions, reduce caseloads and address remedial-order requirements stemming from the Kevin’s settlement.

Why it matters: Committee members pressed Sandoval on children sleeping in offices and the agency’s plan to reduce that practice. Sandoval said office stays should be a last resort and described the department’s plan to open home-like receiving centers and create dedicated overnight staff positions so frontline workers are not required to stay overnight in offices.

Workforce and retention: CYFD reported roughly 2,429 full-time positions and a December vacancy rate of about 27 percent (down from 29 percent in September). Sandoval said the department has shortened hiring timelines — from application to offer — from roughly 81 days to about 45–50 days and launched a workforce strike force to improve retention. She said the department has hired 563 employees since January.

Foster care and adoption: Sandoval said CYFD currently has about 1,100 licensed foster homes (2,289 beds) and reported approximately 2,130 children in care in December. She told the committee that foster-care plus pilots (additional supports and training for foster parents handling higher-needs children) are in place and that the department is studying supplemental payments and retention incentives; the agency currently provides a modest monthly supplement as a retention tool.

CCWIS IT project: On child-welfare IT, the state is developing a CCWIS system to replace legacy tools. Sandoval said the original CCWIS budget was $90 million and that about $50 million has been expended to date; the project is transitioning from design to system integration testing and user-acceptance testing with a planned go-live in 2026. Committee members questioned whether off-the-shelf alternatives had been considered and sought detailed cost and timeline information.

Receiving centers and office days: Legislators sought concrete metrics: Sandoval said office days fluctuate and reported there were 16 office days on the previous night; receiving centers in Albuquerque and a planned center in Dona Ana County include kitchens and bedrooms and will be used for short-term stays while staff secure a family-based placement. Sandoval agreed to provide data on how many children have spent more than a specified number of nights outside a home setting.

Next steps: Sandoval said CYFD will provide more detailed documentation on caseload heat maps, the CCWIS budget and expenditure record, foster-parent exit interviews and other metrics requested by the committee. A compliance hearing related to remedial orders is anticipated in early 2026.