Senate Appropriations discusses study of community-based providers, holds key education and property tax funds pending bill

The Senate Appropriations Committee on April 15 discussed proposed language to direct the Agency of Human Services to evaluate organizational and funding structures of community-based service providers to identify opportunities for coordination, consolidation and operational efficiencies, and agreed informally to set aside $77 million intended for property tax relief and $4 million for an education finance transformation until the status of the related education bill is clear.

Committee members said the draft evaluation would cover providers such as area agencies on aging, community action agencies, designated and specialized service agencies, and parent-child centers, and would examine functions including resource responsibilities, business processes, information technology systems, contracting and other legal services. A staff member reading the draft said the report would return to the appropriations committee and to House Corporations and House Health Care in January with findings and recommendations for potential coordination or consolidation across providers.

The proposal was presented as possible budget language or as part of H 13, a bill that the committee noted had already passed Health and Welfare. A committee staffer said the proposed language directs the Agency of Human Services — not the secretary of administration — to undertake the evaluation.

A committee member who identified receiving communications from providers said, “I’ve heard from lots of providers out in the community. They don’t want this language at all.” Several members acknowledged provider concern and said they would consult further with the Agency and with sponsors, including Senator Lyons, about whether to adjust the language or leave H 13 unchanged and place the evaluation in the budget instead. The committee did not take a formal vote on the proposal during the session.

On broader budget strategy, the committee chair said the committee will temporarily set aside (place on the “bottom line”) the $77,000,000 for property tax reduction and $4,000,000 for education finance transformation until the outcome of the education finance bill is known, rather than committing those dollars automatically. The chair said the committee still must find roughly $60 million in savings to reach a balanced budget and that additional spending requests continue to arrive from agencies.

Members asked for targeted additional testimony on prevention and substance-abuse recovery programs — including recovery centers and related recovery provider funding streams — to better understand how dollars are currently used before making further cuts or increases. The chair said staff could arrange in-person testimony or one-pager summaries from the health department or other agencies.

Next steps: committee staff will share the draft evaluation language with the Agency of Human Services for comment and consult with bill sponsors about whether to revise H 13 or include the study direction in the budget. The committee paused further business to await a staff member (Emily) who would review proposed transfers and how those affect the overall numbers.