Georgia’s child welfare system is grappling with a projected $85.7 million budget shortfall that has triggered widespread service reductions and sparked bipartisan concern at the state Capitol.
The crisis centers on the Georgia Division of Family and Children Services, which operates under the Georgia Department of Human Services. Commissioner Candice Broce, who also oversees the child welfare agency, implemented a series of cost-cutting measures in November aimed at reining in spending. Those steps included terminating contracts with providers deemed underperforming and requiring state-level approval for contracted services.
Advocates, providers and families say the changes have slowed the system to a crawl.
Foster parent Pamela Bruce said dwindling services have left her overwhelmed and emotionally drained. Her foster son lost access to a behavior aide he described as a “brotherly” figure after funding for the service ended. Transportation gaps have also caused him to miss school and family visits, Bruce said, forcing her to pay out of pocket for rides while struggling to keep up with bills.
“I’m just stuck. I’m stressed out. Emotionally, I’m exhausted,” Bruce said, adding that she is determined to keep the teen out of a group home.
Georgia lawmakers recently voted to backfill the budget gap, but even after the infusion of state funds, the projected deficit remains just under $49 million. Some lawmakers view the additional funding as a temporary fix and are calling for an audit to determine how the agency’s finances deteriorated so dramatically.
“I’ve been in the budget world a long time, and I’ve never seen a deficit like this,” said state Rep. Mary Margaret Oliver, who questioned whether management decisions contributed to the shortfall.
At a legislative hearing, Broce said the agency lacks the resources to meet the “magnitude” of behavioral and mental health needs of children entering state care. She said the cost-cutting efforts were designed to eliminate duplicative or unnecessary services and to shift eligible expenses to Medicaid when possible.
“I am being forced to make decisions that nobody wants to make,” Broce told lawmakers.
Broce has been credited with reducing the number of children with complex needs housed in hotels — a controversial practice used in some states when no appropriate placements are available. However, she has also acknowledged the division has lost more than 800 placement beds since 2019 and faces a shortage of psychiatric treatment slots.
Service providers say referrals have plummeted since the November policy changes. Brittney Kleuger, CEO of Family Menders in northwest Georgia, told lawmakers her agency once received 80 to 100 referrals per week but now gets fewer than 10.
“How in the world are we supposed to reunify the families if we don’t have services in place?” asked family attorney Jessica Hall.
Broce said service requests are typically approved within hours unless additional information is needed and suggested that some requests may not be properly escalated to the state office.
The budget instability comes as states nationwide struggle with an influx of children with acute behavioral challenges and changes in federal funding rules that have made it harder to access certain child welfare dollars.
Melissa Carter, executive director of the Barton Child Law and Policy Center at Emory University, said the crisis signals the need for a stronger long-term fiscal strategy, including more investment in keeping families together to maximize federal funding.
Former juvenile court Judge Juanita Stedman said the financial strain reflects years of underfunding services for children with complex needs rather than the fault of any single administrator.
For families like Bruce’s, the uncertainty remains deeply personal. She worries the deficit could balloon again and further erode services.
“My visits are very important to me because I really love my family,” her foster son wrote to his caseworker — a reminder, Bruce said, of what’s at stake as the system works to regain its footing.