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Agency cites rising historical settlement payouts as a growing driver of budget shortfalls
Summary
DCYF officials told attendees that payouts for historical claims have increased sharply—$281 million in 2024 and $499 million in fiscal year 2025—and said those growing liabilities, along with federal reductions, contributed to a $2.3 billion state shortfall the legislature faced this session.
Barbara Serrano, Chief Public Affairs Officer for the Department of Children, Youth, and Families, opened a legislative webinar by telling participants that higher payouts for lawsuits have become a major factor in the state's budget constraints.
"The amount of payouts for these claims has risen substantially. It was $281 million in 2024. In fiscal year 2025, that number was $499 million," Serrano said, noting that many claims relate to alleged incidents that occurred before…
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