DCS outlines $433 million real-estate plan, says in-state capacity is reducing out-of-state placements

Commissioner Margie Quinn and DCS staff gave a detailed update on placement capacity and the department's real-estate initiative. Quinn said the General Assembly and the governor fully funded a $433,000,000 plan to build community-based "welcome" and "wellness" places and two modernized youth development campuses to replace aging facilities such as Wilder Development and Woodland Hills. She said wellness places will be sited in each grand region and that three sites (Shelby, Davidson and Knox counties) will include 20 beds each; six welcome places will provide short-term stabilization near families and community services.

DCS described recent capacity additions: 102 assessment and respite beds plus 164 treatment beds, with approximately 230 additional beds expected online in 2026, bringing the total added since Sept. 2022 to roughly 570 treatment beds. The department said expanding in-state capacity reduced the number of children sent for out-of-state specialized treatment (256 in 2025 versus 37 fiscal-year-to-date). Commissioner Quinn credited workforce stabilization, higher case-manager staffing and prevention efforts for the reductions and said the facilities will include on-site clinical, dental and medical capacity.