Appropriations committee to seek conference after Senate alters Budget Adjustment Act

The House Appropriations Committee voted in a straw poll on Feb. 26 to request a committee of conference after reviewing Senate changes to the Budget Adjustment Act, members said.

The Senate’s version makes several changes from the House bill, including a $1.8 million appropriation for local economic damage grants to municipalities affected by 2023 and 2024 flooding, a $220,000 transfer to the Emergency Personnel Survivors Benefit Fund and a $6 million reversion from a treasurer’s bond Redemption appropriation, committee staff summarized. Grady Nixon, fiscal office staff, told the committee the Senate also struck language that would have reserved carryforward general fund balances for specific uses, leaving those amounts to the statutory allocation in 32-308(c).

The change to carryforward language matters because, absent a notwithstanding provision, statutory law directs that available carryforward funds be split between the budget stabilization (rainy day) reserve and pension/OPEB accounts. “The Senate struck that closeout language, so the closeout would proceed as statutorily required,” Grady Nixon said, describing the effect on roughly $130–$137 million discussed in the meeting.

Committee staff said the Senate’s construct also adds technical corrections (for example replacing commas with semicolons in two VHCB appropriations) and adds two Human Rights Commission positions and one assistant attorney general position (about $62,000 and $50,000 respectively). The Senate also modified allocation percentages tied to the property transfer tax after receiving a technical letter from the administration.

After the briefing, a member moved that the committee not concur with the Senate changes and request a committee of conference; John (committee member, last name not specified) seconded the motion. Committee members indicated unanimous support in the straw poll. The vote was a committee-level straw poll, not a final legislative vote. Committee staff said the Senate changes would leave the committee with about $4 million more on the FY 2026 bottom line than the House construct, primarily from the treasurer reversion and subtotals described above.

Committee staff and members agreed to follow up with additional spreadsheets and language review and to continue the conference process.

The committee’s action means negotiators will be asked to reconcile the House and Senate versions of the Budget Adjustment Act in a formal conference.If the conference is arranged, members said they expect staff to supply itemized charts of eligible municipalities for the local damage grants and updated spreadsheets showing where reverted and newly directed funds would be used.