DHHS frames $576 million FY27 budget, flags contractor costs and seeks $2.5M to finish Community Connect portal

Department of Health and Human Services Director James Bridgers told the HHS committee that FY27 presents fiscal pressures but the recommended package aims to sustain essential services across a broad enterprise.

Council staff described the DHHS FY27 recommended budget as roughly $576 million, an increase of about $18.9 million (3.39%) from FY26 and a proposed net increase of about 50 FTEs (2.4%). Bridgers illustrated the department’s delivery model with a client vignette showing a direct connection among mobile health, food assistance, case management and housing referral services.

Council members pressed DHHS about vacancies and contractor costs. Staff reported vacancies fell from roughly 375 three years ago to about 159 now, while DHHS’s second‑quarter contractor spending to backfill vacancies was approximately $6,000,000 and represented some 60–100 individual contractors. "That probably represents at least 60, probably closer to a 100, contractors," CFO Jason Rundell said when asked for a second‑quarter projection of contractor expenditures.

The committee also reviewed multiple grant reductions and their FY27 impacts. Staff noted several federal and state grant reductions—tuberculosis control grants, epidemiology (ELC) funding that supported disease‑control contractors, and a behavioral‑health/juvenile treatment contract—some of which the County Executive recommended backfill for and others left to committee consideration. Council staff highlighted swings in House Bill 669 funding levels (noting FY25 at $47M, FY26 at $64M and a recommended FY27 level of about $51M) and the implications for shifting 32 FTEs between grant and general funds.

DHHS staff explained a cost‑neutral reorganization intended to align programs into clearer service areas (for example, moving Community Action Agency and Head Start programs into Children, Youth and Families service areas and consolidating community affairs functions into the director’s office) with the stated goal of improving service targeting.

Community Connect portal: Nicole Rodriguez Hernandez (council staff) and DHHS explained the five‑year, phased Community Connect portal that began development in 2022 and has moved several eligibility programs online (working parents assistance, rental assistance, housing initiatives). DHHS requested $2.5 million for Phase 4 (FY27) to add provider invoicing, housing stabilization intake, an integrated case‑management interface, a provider data warehouse and referral functionality; staff estimated ongoing contractor invoices near $195,000 per month while phased development continues. "Phase 4 is our final enhancement year," Nicole said; DHHS staff said after Phase 4 maintenance and operations costs should be lower and procured through a maintenance contract after an RFP process.

Committee decision and next steps: The joint committee did not reduce the FY27 enhancement request but directed council staff to list two reconciliation options: the full $2.5 million enhancement and a maintenance‑only option estimated at about $1.5 million. Staff also flagged the need for further procurement and contract documentation (original scope, contract modifications and invoices) before long‑term commitments are finalized. DHHS and council staff agreed to follow up with detailed contractor cost and vacancy analyses for the committee’s next sessions.

What comes next: The portal request and other DHHS reconciliation items will be considered by the full County Council during final FY27 appropriation votes; the HHS committee will continue work sessions on DHHS service areas next week.