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Agencies tell Appropriations panel workers' compensation and staffing gaps are driving significant shortfalls
Summary
Multiple state agencies reported that rising medical costs, claim volumes and staffing gaps in 24/7 operations are producing notable workers' compensation and personnel-service deficits. Agencies described recruitment efforts, supervisory contact policies for injured employees and planned recruitment classes to reduce vacancies.
Several commissioners told the Appropriations Committee that workers' compensation and staffing pressures are key drivers of the FY2026 deficiencies the committee is considering.
Department of Administrative Services Commissioner Michelle Gilman said DAS projects a $18.7 million net shortfall in workers' compensation claims driven by escalating medical care costs, claim volume and indemnity growth concentrated in agencies with 24/7 operations such as the Department of Corrections. DAS HR administrator Lisa Annis told the committee agencies are…
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