LFC staff briefed HAFC on a nonrecurring investment package for the Children, Youth and Families Department focused on workforce capacity, liability and system improvements. The package would shift many investments to the nonrecurring side and includes several targeted items:

- $24,000,000 general fund over three years (estimated $6,000,000 federal match) to reduce caseloads by funding an estimated 101 additional caseworkers;
- $5,400,000 general fund over three years (with an estimated $1,900,000 federal match) for a workforce training and evaluation partnership (staff identified New Mexico Highlands University as a partner);
- $1,470,000 to cover rising liability insurance premiums related to litigation and payouts;
- $100,000 for a foster care (TFC) rate study;
- $100,000 for an external employee health and engagement survey to understand retention drivers;
- reauthorization or technical assistance funding for Title IV‑E / Family First planning (LFC proposed reauthorizing a prior $200,000 and adding $200,000 more to pursue deeper technical assistance).

Rachel (CYFD presenter) explained the LFC recommendation “primarily made investments on the nonrecurring side instead of making increases recurring,” and described the workforce funding as targeted at caseload standards identified in arbitration. “That should allow the agency to hire about a 101 additional caseworkers,” Rachel said.

Committee members asked about current vacancy rates and whether the funding would be sufficient. Staff said CYFD’s vacancy rate is over 20 percent and that the GROW funds would be distributed across FY26–FY28 (about $8 million per year in the GF portion) to match federal draws and hire staff. Members also discussed classification and pay‑scale issues that complicate hiring and retention, noting that pay differentials across state programs have driven turnover and that a larger classification reform is underway to align compensation.

A range of commissioners and members expressed support for the workforce investments while urging attention to how the funds are targeted and how hiring will be executed. LFC staff said they would work with the department and DFA to refine performance measures and accountabilities tied to the investments.

Ending: The work group did not adopt final appropriations; staff committed to provide additional detail on projected hiring and performance measures before full‑committee consideration.