Appropriations committee approves pool of budget cuts, holds summer EBT funds pending USDA waiver

The House Committee on Appropriations on Monday approved a package of amendments to House Bill 2007 aimed at trimming the state general fund and reallocating one-time federal interest money.

The committee voted to lapse funding for State General Fund (SGF)–funded but vacant positions that remain unfilled by July 1 (excluding state hospitals and corrections), enact a 1.5% reduction in SGF operating expenses, and move $1.8 million in summer EBT funds to the State Finance Council pending certification that the Department for Children and Families (DCF) has requested a waiver from the U.S. Department of Agriculture (USDA) to restrict purchases of candy and soft drinks with SNAP benefits.

Committee Vice Chair Williams, who offered the package of motions, said the vacant‑position lapse is intended to “right‑size” funded FTEs and estimated roughly $11,000,000 in savings based on a preliminary Legislative Research (KLRD) run. Williams said agencies would have until July 1 to fill critical positions and that the motion carried a modification requiring the State Finance Council to review appeals before funds are struck.

Members voiced concerns about unintended consequences. Representative Francis and Representative Ballard questioned whether the July 1 cutoff could penalize positions that open shortly before that date or jobs that are repeatedly advertised because of workforce shortages. Williams responded that agencies could reallocate existing funds or file a supplemental request in 2026 if a position proved essential.

On the EBT motion, Williams proposed lapsing $1.8 million from DCF operating expenditures and appropriating that amount to the State Finance Council, which would hold the funds until the DCF secretary certifies that a waiver to the USDA has been requested to prohibit children’s summer EBT benefits from buying candy and soft drinks. Williams said the motion does not require USDA approval — only that the waiver be requested — and that the funds would be released once the secretary submits the waiver request.

The EBT measure drew extensive debate. Representative Loyola asked whether a waiver is required because current USDA rules allow such purchases; Williams said a waiver is necessary to seek a restriction. Representative Ballard and others raised practical concerns about point‑of‑sale systems, retailers’ ability to segregate eligible items, and whether limiting purchases would stigmatize families. Supporters, including Representative Estes, framed the change as an effort to encourage healthier options for children and noted that SNAP funds can be used at farmers markets.

Other committee actions on HB 2007 included: - A 1.5% reduction to SGF operating expenses (excluding caseloads, aid to locals, debt service and capital improvements), estimated by KLRD at about $36,000,000. - Directing the historical society to find $905,000 for interior walls within existing funds. - Transferring $19,000,000 from ARPA interest to complete the Docking Building and authorizing a change to name the facility the Robert J. Dole Office Building; the committee included state finance council oversight language for the transfer. - Reallocating roughly $49,000,000 in ARPA/interest to a set of one‑time projects (initial payment for ERP modernization, workforce and education items, law enforcement facility repairs, and other items) to draw down the ARPA balance. - Consolidating the Children’s Cabinet budget and redirecting $2.4 million in transfers to make the Children’s Initiative Fund solvent. - Approving $1,000,000 for an efficiency review using data analytics/AI to identify agency savings opportunities. - Adopting a differentiated state employee pay plan intended to bring employees within 10% of market: targeted increases for below‑market employees, smaller increases for employees at or above market; committee fiscal impact reported as approximately $38,100,000. - Language requiring managed care organizations (MCOs) to adhere to accepted bid terms until contract expiration.

Votes at a glance (committee motion outcomes): - Lapse SGF funding for unfilled positions (exempt: state hospitals, corrections); add State Finance Council appeals review — motion passed (mover: Vice Chair Williams; second: Representative Wasser). No roll‑call tally recorded in the transcript. - 1.5% SGF operating reduction (exclusions noted) — motion passed (mover: Vice Chair Williams; second: Representative Francis). No roll‑call tally recorded. - Lapse $1.8M from DCF; appropriate to State Finance Council pending DCF secretary’s certification of USDA waiver request — motion passed (mover: Vice Chair Williams; second: Representative Tarwater). No roll‑call tally recorded. - $905,000 interior walls to be found within existing historical society funds — motion passed (mover: Chair; second: Representative Helgerson). No roll‑call tally recorded. - Transfer approximately $19M ARPA interest to finish Docking Building and rename to Robert J. Dole Office Building (subject to state finance council language for funding) — motion passed (mover: Chair; second: Representative Williams). No roll‑call tally recorded. - Convert a series of SGF one‑time items to ARPA (roughly $49M package) to draw down ARPA interest — motion passed (mover: Chair; second: Representative Howe). No roll‑call tally recorded. - Consolidate Children’s Cabinet budget and stop two transfers to restore Children’s Initiative Fund (+$2.4M) — motion passed (mover: Chair; second: Representative Ballard). No roll‑call tally recorded. - $1,000,000 for an efficiency/AI review (Legislative Coordinating Council contract) — motion passed (mover: Chair; second: Representative Williams). No roll‑call tally recorded. - State employee pay adjustments (targeted market adjustments; fiscal impact cited) — motion passed (mover: Chair; second: Representative Estes). No roll‑call tally recorded. - Require MCOs to adhere to accepted bid terms until contract expiration — motion passed (mover: Chair; second: Representative Sutton). No roll‑call tally recorded.

Why it matters: Collectively, the motions change the composition of HB 2007 by cutting recurring SGF operating amounts, redirecting one‑time ARPA/interest balances to complete capital and workforce projects, and altering the governance around a high‑profile child nutrition appropriation. The measures also create a formal appeals pathway to the State Finance Council for agencies seeking to preserve vacancies identified for lapsing.

Committee members said the package is an initial step; several motions included language preserving opportunities for agencies to seek relief (supplemental requests, State Finance Council review). The measures still must proceed through the House and Senate before becoming law.