Appropriations hears contingency plans as Budget Adjustment Act stalls; officials warn of provider timing risks

Madam Chair of the House Appropriations Committee and state agency leaders discussed contingency plans on April 3 after the Budget Adjustment Act (BAA) stalled in negotiations, with officials saying a clean BAA is the preferred solution but outlining accounting maneuvers to keep core services running through fiscal year closeout.

The discussion centered on potential impacts to Medicaid, provider stabilization payments and nursing-home support if the BAA is not enacted. "Our preference is for a clean bill, that we can all agree on and pass and that we'd have the budget adjustment," said Sarah Clark, Secretary of Administration. Clark and Jenny Samuelson, Secretary of the Agency of Human Services, told representatives they are developing a plan to manage cash flow and obligations to June 30 if a budget adjustment is not available.

Committee members raised specific dollar amounts included in the BAA and asked which obligations could be delayed. The chair noted provisions on the committee's radar including about $24.5 million related to 78,000 nursing-bed days, $10 million for provider stabilization, and $21 million for…