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Department of Aging to consolidate programs under SOAR as audits prompt oversight changes
Summary
DLS told the subcommittee that Maryland Department of Aging's FY27 allowance falls $9.7 million to $82 million largely because ARPA funding expired and a veterans program transferred out; the department described audits addressed by hiring an auditor, recovering federal draws and launching a competitive grant process for NORC awards.
The Maryland Department of Aging presented its fiscal 2027 budget, implementation plans for the new SOAR program (Supporting Older Adults with Resources), and responses to recent audit findings before the House Health and Social Services Subcommittee.
Victoria Martinez of the Department of Legislative Services said the department's FY27 allowance decreases by $9.7 million (about 10.6%) to $82,000,000. DLS attributed roughly $6.1 million of the decline to the expiration of ARPA funds and another $2.9 million to the transfer of the Veteran-Directed Care program back to the U.S. Department of Veterans Affairs.
Secretary Roque (introduced to the committee as Secretary Roque) emphasized a multi-sector, all-government approach to the departments longevity-ready planning and said the agency has reorganized roles to focus on policy, planning and fund distribution. Michael Zomberg, the department's CFO, told the committee that the department opposes a DLS-proposed general fund turnover adjustment that would increase the assumed turnover rate and reduce salary allocations; the department said the reduction would disproportionately affect a small staff.
Committee members pressed the department on three audit findings: (1) incomplete program reviews of area agencies on aging (AAAs), (2) late or missing federal draw submissions that cost the state funds, and (3) limited transparency and documentation in awarding naturally occurring retirement community (NORC) grants. MDOA described steps taken: hiring an auditor, contracting an outside firm to catch up fiscal-year audits for AAAs, instituting monthly federal draws (and recovering roughly $1.5 million in previously undrawn federal funds), and moving to a competitive, documented grant process for NORC awards.
Members also asked about SOAR implementation. MDOA said FY27 is the transition year; the department convened external and internal workgroups, solicited HCBS expertise via procurement and received a consultant report the week of the hearing. MDOA plans an in-person March meeting with AAA directors and a written implementation report by June 1 that will detail funding allocation, eligibility, and plans to protect legacy participants.
The Long-Term Care Ombudsman reported an FY27 operating budget of roughly $1.1 million in state funds and $400,000 in federal funds and said the office resolved about 4,000 complaints in fiscal 2025 with a reported 80% satisfaction disposition rate. Committee members and witnesses emphasized the need to preserve AAA funding, maintain continuity for people on waiting lists and ensure clear guidance is provided quickly to local partners.
What happens next: DLS recommended committee narrative requesting further implementation details on SOAR and performance measures; members requested follow-up on audits, wait-list handling and written guidance for AAAs.
