Georgia foster care agency faces $85M deficit ahead of 2026 session

The state agency that manages Georgia’s foster care system is facing an increased deficit as lawmakers look to enter the 2026 legislative session.

Georgia Department of Human Services Commissioner Candice Broce testified before lawmakers Dec. 18 saying that the agency faces an $85 million deficit in fiscal year 2026. The deficit is due to a combination of reduced or delayed federal funds, increasing demand for the foster care system and increased operation costs, she said.

“A colleague of mine recently described our lack of resources and support as fighting a forest fire with a squirt bottle. That is absolutely true. I’m doing what I can with what I have. I do not have alternatives,” Broce said in an emotional testimony.

The agency has already suspended or eliminated contracts with providers that offer services, such as assessments for children’s needs, services that prevent children from living outside their home and parent training programs

“I had to make a pretty awful choice in selecting those particular contracts,” Broce said. “I’m having to compare the needs of different children and decide which one is more important in terms of priority.”

State Rep. Mary Margaret Oliver, D-Decatur, questioned whether funds could be used from the $16 billion reserve of the state’s budget to mitigate the deficit.

“Respectfully, I would like to know whether the governor will step forth and help you in the position you have,” she said, to which Broce said the governor is always willing to help her.

Broce said they are a goods and services agency, so when costs rise due to inflation and other factors, it significantly impacts the services they can provide. 

“Right now I am not the only child welfare leader appealing to their governor and legislature for more financial support. My providers are not the only ones either. Nationally, the child welfare system is seeing exponential growth in the cost to operate,” she said.

The agency relies on Temporary Assistance for Needy Families funding to fill the gaps in their budget, but Broce said they can no longer rely on the federal funding. The agency has run a deficit in the past, and Broce said they are usually able to implement temporary maneuvers to make ends meet. However, that is not the case this time.

“I did not want to frustrate the work of our partners, jeopardize relationships with judges, risk contempt,” she said. “I also don’t want to break the law by overspending my budget. So I’m in a real catch-22 right now.”

The meeting ended with discussing upgrading the agency’s case management system, which Broce said is detrimental to productivity and efficiency. Lawmakers at the meeting seemed hopeful that improving that system could produce results that help the agency long term.

State Rep. Katie Dempsey, R-Rome, ended the meeting by saying that balancing a budget is difficult and these issues are a priority.

“I want us to have a walk in reality of where we are that in the 15 years that I’ve done the budget, we’ve had challenges, but we’ve never had one like this before, so we’ll get there somehow, someway,” she said.