February 5, 2026

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Turning Crisis into Opportunity for Social Services: How Monmouth County is Battling Reimbursement Cuts with AI

Public Human Services agencies are facing a 'perfect storm' in 2026. Pandemic-era subsidies and protections are over while the aftershocks persist, with most states' demand for services lingering significantly higher than before (KFF.org Medicaid Unwinding Tracker). 

One County in New Jersey is responding with a strategic pivot to future-proof their department against declining federal staffing reimbursement rates: reduce clerical burden through technology in order to train staff in HSA roles for promotion into reimbursable HSS1 positions.

The New Normal in 2026: A Generational Inflection Point for Social Services


As the budgets get tighter, here’s what teams around the country should be bracing for.

  1. Stricter Compliance Mandates: With the end of the Public Health Emergency and new provisions in the Fiscal Responsibility Act, the grace periods are gone, and the regulatory magnifying glass is back on every case file.
  2. The Recertification Surge: Consequently, caseloads that were once reviewed annually are shifting to biannual (or even quarterly) cadences. This isn't just a schedule change; it has the potential to double the administrative workload overnight.
  3. The Reimbursement Fallout: Simultaneously, federal reimbursement rates for many administrative functions moved from 75% to 50%. This leaves counties to absorb millions in payroll costs just to maintain the status quo (NACo's analysis on the Administrative Cost Shift).
  4. The Future Risk: Even the historic baseline, which has served as an operating assumption for the last 50 years, isn't safe. Legislative proposals now threaten to slash the reimbursement "floor" to 25% from 50% as soon as October (FY27), a move that would fundamentally break agency budgets. 

Each presents significant challenges on its own. When combined, they threaten to cripple government budgets nationwide while creating a negative feedback loop within social service operations. 

For Directors of Human Service Departments like Peter Donnell Boynton of Monmouth County, NJ, "doing more with less" is no longer a catchphrase. It’s a math problem that no longer adds up with reimbursement rate reductions. 

With negative impacts to residents, staff, and county finances at stake, Monmouth County is thinking outside of the box. They aim to turn a budget crisis into an operational opportunity, made possible with conversational AI that can operate phone lines and understand the complexities of government.

Placing Rates in Context: Quick History Lesson

  • From the 1970s to the 2000s, the guaranteed reimbursement rate was 50% serving as a durable operating assumption for Public Human Service agencies. 
  • From the 2000s until 2019, enhanced and modernization bonus rates for IT systems and specialized staff moved averages to 75% - 90%. 
  • The Pandemic Era brought much needed emergency funding, moving reimbursements up to 100%. 
  • During the post-pandemic unwinding era between 2024 and 2025, rates returned to 50% as enhanced streams expired.
  • Now, proposed legislation threatens to cut rates from 50% to a new floor of 25% effective in FY2027.

The Challenge: The Reimbursement Gap


In a social services agency, Human Services Aide (HSA) staff are essential to daily operations. They manage a high volume of constituent interactions: answering hundreds of inquiry calls, scheduling interviews, and managing complex paper trails. For context, Monmouth County’s Department of Social Services average over 17,000 phone calls per month.

While their role is critical for customer service, staff in HSA titles do not qualify for federal reimbursement like Human Services Specialists (HSS) who directly determine eligibility. This means staff in HSA titles may handle 90-100% of inbound customer service inquiries without any federal match.

The dilemma for counties is twofold. First, case processing power generates vital funds for counties, but you can’t move HSA staff into new roles when their department is drowning in phone calls.

Second, the clock has sped up. As Monmouth’s Director for the Division of Social Services, Catherine Lord, notes, the shift to biannual recertifications has effectively cut the processing window in half. This means the agency now has to perform twice the work with the same number of people. 

The old model, where clerical staff answer phones and caseworkers handle cases, simply cannot sustain this new volume. To survive, the "Clerks" effectively need to join the "Caseworker" fight.

The Monmouth Model: From "Call Deflection" to "Staff Promotion" 


Monmouth County’s strategy goes beyond simple call deflection. Their goal is to use AI to clear the operational path for Civil Service promotion and increased team capacity.

By deploying Voice AI to handle the non-reimbursable workload (intake, FAQs, scheduling), the county will "buy back" the hours needed for HSA staff to train into HSS1 roles, ultimately shifting more staff from a 0% federal match to a 50% match.

Inbound phone calls are just the start. The County is exploring additional ways to leverage Polimorphic’s full platform, including: 

  • Appointment Scheduling
  • Drafting Correspondence  
  • Outbound Communications

The ROI: Unlocking Talent and Budget


As Boynton noted in a recent discussion, AI isn't about replacing people; it's about "future-proofing" the department. 


With reduced frontline burden, an AI platform is proven to unlock staff capacity. This creates the necessary bandwidth for staff in non-reimbursable HSA roles to complete the training and Civil Service testing required to promote into reimbursable HSS1 titles.

By enabling knowledgeable staff to move into reimbursable processing roles, the county can offset federal cuts and manage the increased frequency of recertifications without increasing the deficit.


The Takeaway:
In the face of national policy shifts, AI is more than an efficiency tool; it is a fiscal strategy that can leverage existing talent in new ways. Monmouth County proves that with the right technology, local governments can survive reimbursement cuts by ensuring their human talent is focused where it matters most: helping its families and residents.

Join the Conversation

Monmouth County isn't the only one staring down this reimbursement cliff. We are working with county and state leaders across the country to map out these regulatory changes and uncover new strategies to adapt.

We want to hear your story.

If you are navigating these reimbursement cuts or struggling with recertification volumes, let’s connect. We want to learn what specifically is challenging your agency so we can better tailor our support. In exchange, we’ll share the "playbooks" and best practices we are gathering from forward-thinking leaders like Peter.

Let’s solve this together. Reach out to us today.

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