Rhode Island DCYF faces $6M deficit as program costs soar

PROVIDENCE, R.I. — The Rhode Island Department of Children, Youth and Families (DCYF) is dealing with a projected $6 million gap in state funding, triggering immediate steps to limit spending and increase oversight.

Agency leadership outlined the situation in a May 4 internal memo, pointing to rising costs tied to programs that support children and families. Those expenses are outpacing available general revenue, even as savings elsewhere help reduce the overall impact.

DCYF employees say placing a single child in an out-of-state facility can cost up to $80,000 per month.

Officials say the issue stems from a shift in funding sources rather than excessive spending.

The Rhode Island Office of Management and Budget (OMB) has placed DCYF on a “corrective action plan” to closely monitor the agency’s finances moving forward.

Leadership will take part in regular reviews aimed at stabilizing the budget and identifying areas to cut costs.

To address the shortfall, DCYF is moving quickly to scale back expenses. Steps include:

* A hiring freeze with very limited exceptions

* Restricting out-of-state travel unless directly tied to a child’s needs

* Limiting discretionary and new spending for the remainder of the fiscal year

Leadership has been told to expect tighter approvals as the agency works through the deficit. DCYF Director Ashley Deckert earns an annual salary of $194,670.06.

At the same time, officials are looking toward the 2027 fiscal year with plans to reshape how resources are allocated. The goal is to better match funding with service demands and avoid similar challenges in the future.