Appropriations committee advances OMB budget with $285 million state hospital plan, $1 million life-education appropriation

The Senate Appropriations Committee on Monday advanced House Bill 1015, the Office of Management and Budget (OMB) budget bill, after lengthy debate over multiple line items including a $285 million state hospital proposal and a $1 million one-time appropriation for a life-education committee.

Committee leadership opened the meeting by warning members that current projections show the general fund approximately $300,000,000 overspent and the State Infrastructure Fund (SIF) potentially $200,000,000–$300,000,000 overspent, making further cuts likely in conference committees. The committee adopted a package of Senate changes to the House bill and approved several amendments before sending the bill toward conference.

Why it matters: HB1015 contains the bulk of the OMB operating and capital decisions that will shape state spending in the coming biennium, including large capital proposals that could reshape how the state provides inpatient behavioral-health services and one-time and ongoing appropriations that affect multiple agencies.

Key changes the committee considered

- Custodial equity: The Senate reinstated $110,114 in funding that had appeared in the executive (Armstrong) budget but was removed by the House. The money is intended to narrow a roughly $1,800 average annual salary gap and reduce turnover among facility management custodial staff.

- Rent replacement for the 15th floor: The bill includes $219,000 to replace rent revenue lost when legislative office space on the 15th floor became rent-exempt; the change shifts the funding source rather than increasing line-item operating costs.

- Rent, moving and space reconfiguration pool: The Senate added $4,000,000 (SIF) to assist OMB with agency moves, reconfigurations and temporary rent costs.

- Prairie Public Broadcasting: The Senate language restores a one-time SIF infrastructure grant of $850,000 after the House removed prior base funding.

- Retirement transfer incentive: An appropriation of $1,000,000 was included to pay an incentive for eligible employees who elected to transfer from the…