(The Center Square) – King County Councilmember Claudia Balducci is calling for a quick response from the county to address major fiscal oversight issues within the Department of Community and Human Services.
On Aug. 26, the King County Committee of the Whole was briefed on recent county audit findings revealing that DCHS made policy choices amid an increase in fiscal responsibility without installing a safety net to monitor whether the funds were being used appropriately.
In 2023 and 2024 combined, the department distributed more than $1.5 billion. That is a 6,700% increase from $22 million in 2019 and 2020 combined. Balducci said increases to its tax levies and federal dollars coming to the county after 2019 fueled the jump in funding DCHS was tasked to distribute.
Numerous instances were flagged in which improper payments, including potential fraud, were made across multiple DHS contracts and programs.
Balducci is now seeking to schedule a special Committee of the Whole meeting on Sept. 15 that will focus on a proposed ordinance from fellow Councilmember Reagan Dunn. At this meeting, Balducci plans to have experts and human service providers speak to their needs to ensure the council implements proper reforms to DCHS’ contract payment model.
One pressing need for DCHS is adequate staffing levels for fiscal specialists. The audit noted that in 2022 and 2023, turnover within the DCHS compliance team contributed to significant underperformance, as the team had difficulty hiring and retaining employees.
Balducci is also going to call on the County Executive’s Office to launch an internal audit of all DCHS contracts due to the county still not knowing the extent of the issues flagged in the audit, as only a select number of contracts were reviewed.
Balducci said her call for action to address the audit findings is urgent as a result of the Trump administration’s cuts to federal spending on public health.
“It’s more important than ever that King County and every local government make the maximum use of every dollar we have,” Balducci said in a press conference on Monday morning. “We can and must prove to the people that they put their trust in us.”
“These measures and calls for actions are forward-looking and supportive,” she continued. “They are meant to implement the programs that we all support.”
The King County Auditor’s Office latest report identified technical invoicing challenges and a lack of understanding of what is being approved through the department’s hybrid model. DCHS is responsible for granting and monitoring substantial public funds for the county, administering 90% of all county grants.
Balducci’s announcement comes as she heads into the 2025 general election as the underdog in the King County executive race. Fellow King County Councilmember Girmay Zahilay led the primary election with 44.2% of votes, compared to Balducci’s 29.8%.
