Delaware’s Department of Health andSocialServices will be key to implementing trademark efforts from Governor Matt Meyer proposed budget:expanded childcare supports and Medicaid services.
DHSS presented its proposed budget to the Joint Finance committee, which includes an approximately $200 million general fund increase for fiscal year 2027over the previous year.
The department's secretary Christen Linke Young told the JFC that the state’s ability to increase access and support of its purchase of care program for child care comes from a federal policy reversal that will free up more than $25 million.
With current funding, a four-person household with an income under $60 thousand qualifies for purchase of care.
“Childcare is expensive,” Young said.“It is keeping people out of the workforce. It is posing an enormous burden on families and keeping them from making the choices that they want to make.”
Young said under Meyer’s budget proposal, DHSS can expand that to households with an annual income of $80 thousand or less.
Committee member Dave Lawson (R-Marydel) said just because the state can expand a program doesn't mean it should. With $1.9 billion recommended in general funds forDHSSand $2.4 billion for the Department of Education, he said there are other needs not being funded.
“That's a lion's share, and the taxpayers are getting ripped off,” Lawson said. “In my opinion, there'sa lot more could be done with less dollars and not expanding programs.”
DHSS has the state’s second largest general fund budget behind education.It manages programs spanning aging services, SNAP, public health benefits, and childcare programs, and cash assistance for families.
The proposal for fiscal year 2027 suggests an investment of $139 million for Medicaid services growth.
And it’s an issue that public input during DHSS budget presentations focused heavily on, as federal funding for Medicaid set to decrease by 15 percent over the next 10 years.
Hope Scheiber helps care for her medically complex sister. Scheiber told the Joint Finance committee that for her sister to remain at home, Delaware needs to increase reimbursement rates for CNAs and nurses.
“Medicaid reimbursement rates have not kept pace with inflation or competitive hospital wages, incentives and benefits,” she said. “Agencies cannot recruit or retain nurses. Experienced, knowledgeable, skilled nurses are leaving home care.”
Another public commenter, John McNeil, receives personal attendant care with the Division of Aging Adults with Physical Disabilities. His hours of care are set to decrease, which will affect the amount of time he can spend with his fifth grade son. He urged the state to continue investment into the PAS program.
“It's more than policy choice,” he said. “It's a life line in dignity and humanity.”
Despite increased investment, funds granted to DHSS’s Medicaid and Medical Assistance and Social Services did fall short of what the department requested.
