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Health Department outlines $226 million budget, highlights federal funding share and staffing trends
Summary
Department of Health Commissioner Mark Levine presented the agency's FY2026 budget preview to the Appropriations Committee, describing a $226 million total budget (a 5.2% increase), the three appropriations structure, federal funding dominance, vacancy trends and occupancy/rent shifts after an office move.
Commissioner of Health Mark Levine told the Appropriations Committee that the Department of Health's total FY2026 budget request is about $226,000,000, an $11,000,000 increase from FY2025 and a 5.2% rise overall.
Levine said the department's work is organized into three appropriations: administration and support, public health, and substance use. He described the department's mission and said equity is a leading value in program design: "our leading value is equity, and you'll hear a little more about that," he said.
Financial director Paul Daley told members how the department's funding is structured, emphasizing the large share of federal funds and the state's "Global Commitment" Medicaid-related funding. Daley said the department directly collects about 70% of its special fund appropriations from licensing and fees, and that the Vermont Vaccine Purchasing Program is funded in part through insurer assessments.
Daley described internal budget shifts tied to a move from Cherry Street to the Waterbury State Office Complex. He said rent payments declined for the central office, producing net state-fund savings of several hundred thousand dollars, though some district office relocations produced higher local costs.
On staffing, Daley said the department assumes a 3% vacancy rate in the FY2026 base budget, down from pandemic-era highs that reached about 11% at the peak. "Our vacancy rate has been trending downward in the last 2 fiscal years," he said, adding the department now sees higher retention.
Levine and Daley also summarized divisions and program areas to give committee members context for the budget lines, noting environmental health, family and child health, laboratory and infectious disease, chronic disease prevention, emergency preparedness and data/vital records as examples of the department's portfolio.
The presentation included procedural guidance: Daley said the opioid abatement special fund recommended spending plan will be handled as a separate bill and considered first by the committees of jurisdiction before coming to Appropriations.
Looking ahead, Levine said the department proposes $6,500,000 in new activity funding across appropriations and flagged several targeted increases that the committee will review during line-item discussion.
Members asked questions about occupancy charges, special funds, and whether the base budget included prior one-time appropriations. Daley and Levine indicated they would follow up with details where the committee requested more specifics.
Ending: The department will return with line-item detail in subsequent hearings and with the separate spending-plan bill for opioid-abatement funds as described by administration staff.
