A conference committee working on the fiscal year 2026 budget agreed May 9 to final language that aligns one‑time appropriations with the capital bill, establishes formal thresholds and procedures for responding to federal fund reductions, and places contingent funding for a Maple Mountain family medicine residency program on federal approval.

Grady Nixon of the Joint Fiscal Office said the draft “should incorporate all the final language changes the committee has agreed to or proposed and shall agree to at this meeting,” and committee members asked staff to circulate a rough draft of the full bill for final review after the session.

The language packet reviewed by the committee ties the one‑time appropriations list to the capital bill and carries several contingent and carryforward provisions. The text includes a $3,800,000 general‑fund appropriation intended to ensure ADEC is funded for its current work; several other line items discussed in the meeting were described as contingent or one‑time and will affect reserve calculations if realized.

On federal funding, joint fiscal staff explained a two‑tiered framework for responding to federal fund reductions. Under the draft, the secretary of administration and the governor’s office may implement spending reductions without triggering formal committee action for changes that are less than 0.5% of an unduplicated function total or $2,000,000, whichever is greater; any reductions also may not exceed 5% of the total appropriations in any single section or subsection. Larger reductions would trigger joint fiscal committee review: reductions above the $2,000,000 / 0.5% floor but less than 25% of the unduplicated function total or $50,000,000 (whichever is less) would require the committee to receive a spending‑reduction plan, hold a public hearing and vote within a 21‑day review period. The draft also designates $50,000,000 on the contingent list for emergency board transfers if needed.

Committee members removed language from the senate version that would have allowed the emergency board to access the general fund balance reserve outside of session, concluding that the board’s existing transfer limits and the contingent $50,000,000 reserve made that broader authority unnecessary at this time.

The bill text includes a provision directing the Agency of Human Services to seek approval from the Centers for Medicare & Medicaid Services (CMS) to obtain federal matching funds for the first year of the Maple Mountain family medicine residency program. The draft establishes legislative intent for future appropriations tied to that approval and requires the agency to report to the Joint Fiscal Committee (JSC) at its July 2025 meeting on whether CMS approved the request. Committee staff said two contingent appropriations were drafted: one to AHS for general and federal funds and one to DIVA for global commitment funds; those appropriations would only be triggered if CMS approval occurs.

Committee members also reviewed the positions and limited‑service columns in the position sheet that will accompany the bill draft. The packet and position sheet reflect a mix of full positions, limited‑service positions and two committee‑created pool positions; committee members noted not all positions shown on the sheet appear verbatim in the bill language and asked staff to reconcile counts before final printing.

Staff walked committee members through the reserves and the general‑fund outlook on a budgetary basis. The draft counts several contingent one‑time appropriations: if all contingencies are realized, staff projected an increase in the stabilization reserve and described a temporary reserve effect tied to those contingent items. Staff reported a small amount of unallocated spending—described in the packet as $2,500,000—based on the current structure.

Committee members agreed to the edits discussed on the call and asked staff to send a rough draft of the full bill that incorporates substantive changes (technical corrections will follow). The committee set a follow‑up time to reconvene for any final signings or to finalize remaining technical edits.