AHS proposes 5.8% general‑fund increase, prioritizes substance‑use care and shelter expansions

The Agency of Human Services on Thursday proposed a 5.81% increase in its general‑fund budget for fiscal year 2026, driven mainly by Medicaid cost pressures, repayment of pandemic‑era corrections side letters and a set of initiatives to fill gaps in the state’s substance‑use system of care.

Jenny Samuelson, secretary of the Agency of Human Services, told the Senate Appropriations Committee that “this is primarily a current services budget,” and that roughly 5.34% of the increase is tied to current‑services pressures, “primarily at the Medicaid consensus,” including utilization and eligibility changes.

The proposal matters because it attempts to preserve services that AHS said have demonstrated results while adding limited new capacity where state officials say gaps remain in addiction treatment and shelter capacity. The department also described investments intended to bridge potential federal funding changes for primary care supports.

Key numbers and near‑term actions

- Overall increase: 5.81% in the general‑fund–based budget; AHS said 5.34% of that is for current services. - Positions: AHS proposed about 3,835 permanent positions, an increase of six positions from FY25. - Medicaid pressure: The presentation cited a $21.4 million general‑fund increase for Medicaid caseload and utilization. - Nursing homes: A statutory nursing‑home rebase and inflationary adjustment was listed at $6.3 million in general fund. AHS noted nursing‑home bed‑day utilization has returned to pre‑pandemic levels. - Corrections side letters: $17.9 million in general fund would move components of pandemic‑era side letters for corrections into the collective‑bargaining base. AHS said the side‑letter measures reduced a vacancy rate that…