DHS flags large out‑of‑home care deficit; House boosts funding and adds an integrated reporting system

Chris Satchin, DHS chief of staff, told the appropriations committee that the House made roughly 19 changes to DHS items and that the House substantially increased out-of-home care funding to address a known deficit.

Satchin said the governor had recommended $21.2 million for out‑of‑home care but the House increased the line to $48.3 million, intended to help close the program deficit. DHS said exact updated deficit figures were not finalized before the hearing. The House also added funding for reunification supports ($3 million), caregiver support increases ($2 million), non‑Medicaid home and community‑based services ($1.3 million), and investments to place foster youth closer to biological families ($250,000).

DHS characterized a separate $3 million House add to build an integrated child‑welfare reporting system as a direct attempt to address the aging information systems that contribute to administrative shortfalls in out‑of‑home care. Satchin said the department is still gathering details from the House on several line items and will follow up with the committee.

Committee members asked for follow-up on the specifics of the reunification funding and the updated deficit calculations. DHS said it would provide additional details and that a joint study committee between House and Senate is already investigating the rising costs of out‑of‑home placements.

Next steps: DHS will provide detailed deficit estimates and program-by-program fiscal notes; the committee reserved final budget decisions until staff can review the updated numbers.