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Panel agrees to compromise inflator of 2% then 1.5% for provider rates pending final numbers
Summary
The committee discussed provider rate inflators and agreed to pursue a compromise of 2% in year one and 1.5% in year two as a middle ground for conference negotiations, with staff to return with cost-to-continue estimates.
The Senate Appropriations Human Resources Division tentatively settled on a compromise for provider inflation adjustments, recommending a 2% increase in the first year and 1.5% in the second year for use in conference committee discussions.
Members debated alternatives — keeping 2% both years (the House position), using 1.5% both years, or a split 2%/1.5% — and raised the budgetary consequence that any inflator chosen becomes part of the base for subsequent biennia. "Whatever we land on for inflation, that's gonna just be in the base budget," one senator said, noting the long-term cost-to-continue implications. Keith and staff prepared figures showing approximate dollar differences; staff said the two-year 1.5/1.5 option totaled roughly $43 million while 2%/2% was about $58 million.
Senator Magrill proposed the 2% then 1.5% compromise to give the committee common ground with the House and avoid a full-floor contest. Melanie O’Brien and budget staff said they would refine and return the exact cost figures after lunch so the committee could see the midpoint impact. "We can work on those numbers over lunch and bring them back this afternoon," Melanie O’Brien said.
No final floor-or-conference motion was recorded in the morning session; the committee agreed to obtain staff calculations and present the compromise inflator figures when it reconvenes.
