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DLS and DHS spar over USP budgeting and application-processing as energy-assistance demand rises
Summary
DLS told the subcommittee the Office of Home Energy Programs budget contains USP revenue misallocations and requested a report on application processing and denial rates; DHS said it has reduced processing times with the Maryland Benefits One application and will correct a $700,000 USP allocation error.
DLS presented a multi-part audit of the Office of Home Energy Programs (OHIP), focusing on funding sources, application volumes, denial reasons and processing times.
DLS analyst Suika Bjel said the FY27 OHIP operating budget is approximately $300.9 million and noted that most of that money (—94%) pays energy-assistance benefits. DLS flagged two technical issues that require committee attention: a budgeting error that assigned more Universal Service Program (USP) ratepayer revenue to OHIP than the statutory 37 million annual collection, and a set of administrative expenditures recently paid from USP funds.
"The additional 2027 12.7 million in revenues was assigned to EUSP in error," DLS wrote, and recommended DHS ensure USP funds are not overspent and explain whether Strategic Energy (SE) funds or other one-time sources would replace the USP overage.
DHS response and operational changes
DHS interim secretary Gloria Brown Bernett told the subcommittee Ohio moved many client interactions to the single Maryland Benefits One application and said the department has reduced statewide application processing times by an average of 25 days since the consolidation. DHS acknowledged a $700,000 misallocation identified by DLS and said the funds will be reclassified to SE for FY27 purposes.
DLS also documented volatility in energy-assistance applications and denial rates tied to the rollout of categorical eligibility; denial rates rose in FY24 and fell in FY25 after system improvements. DLS recommended restricted release of $250,000 in special funds pending a DHS report on energy-assistance application processing times and denial rates; DHS concurred with the substance and asked for a January 31 submission date to validate the underlying data.
Local operations and backlog remediation
DHS said it is working with local administering agencies through targeted training and internal process changes. Several counties with historically long processing times showed improvement, DHS said, and the state continues to provide technical assistance and temporary reassignments to reduce backlogs.
What the committee will get
DHS agreed to provide the requested application-processing and denial-rate data and to correct the USP allocation issue. DLS and the committee asked DHS to document how much of OHIPadministrative spending was funded from USP and to describe changes to ensure the statutory cap on USP ratepayer collections is respected in future budgets.
