Indiana DCS director details $300M shortfall, cost-control steps
Indiana's Department of Child Services told the State Budget Committee it expects to need a $300 million transfer into its main account for fiscal year 2027, continuing a pattern of recent shortfalls. Director Jennifer Dorfmeyer said caseloads have flattened but cost per case keeps rising, prompting a new service utilization review team that is piloting referral reviews in Marion County offices, cutting average referral costs 19% in September and 34% in October versus prior averages. The agency is also working with consulting firms Milliman and Myers & Stauffer to restructure services and provider rates, with Dorfmeyer noting this could make it easier to identify additional funding sources such as Medicaid. She also reported progress on a federal performance improvement plan and said 16 children remain without placement, with a goal of ending the practice of housing children in department offices.