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Legislative subcommittee reviews HB 872 commission report and $99 million executive budget request
Summary
Members of the Interim Budget Committee’s Section B heard an overview of House Bill 872 and the commission it created, including the fund balance, the commission’s final report, and a $99 million biennial request to implement 10 prioritized recommendations.
Members of the Interim Budget Committee’s Section B heard an overview of House Bill 872 and the commission it created, including the size and status of the Behavioral Health Systems for Future Generations (BISFIG) fund and the executive’s biennial budget request.
A fiscal analyst summarized the law’s appropriation and the commission process, saying the 2023 law allocated $300 million overall — “$225,000,000 in state special revenue funds and $75,000,000 in capital funds” — and that the commission published a final report in September 2024 after 15 meetings and extensive public comment. “The report includes initial startup costs, shorter-term operational costs, and estimates of recurring costs split between state and federal funding,” the analyst said.
The executive budget submitted to the legislature seeks $99 million over the coming biennium for 10 of the commission’s long-term recommendations. Department briefers told lawmakers the request would be phased: about $30 million in fiscal 2026 covered by BISFIG state special revenue and $69 million in fiscal 2027, made up of $23.5 million state funds and $45.5 million federal funds contingent on Medicaid or federal approvals.
Why it matters: Although the BISFIG fund currently holds a sizeable balance, officials warned it lacks a dedicated revenue stream. The fiscal presenter told the committee that, as of a December 19, 2024 snapshot, the BISFIG state special revenue fund balance was roughly $217,000,000; near‑term initiatives already approved total about $47,000,000 over the current biennium. The department emphasized that amounts added to the governor’s base would become ongoing obligations for future budgets if approved.
Officials and commissioners told the committee the $99 million request represents a first tranche — eight phase‑one recommendations and two phase‑two items — chosen for their foundational nature or because federal planning or timing made them ready to begin. Department staff said additional cost estimates for the remaining 12 recommendations exist and can be provided if the legislature directs further work.
Implementation and fiscal risks noted by staff include the need to secure federal approvals (Medicaid/CMS) to draw down federal matching funds for several recommendations and the usual timing uncertainty when projecting when new programs will begin incurring costs. The department said it expects to provide updated cost estimates in February as new information becomes available.
Ending: Committee members asked for further detail on long‑term fiscal exposure, including multi‑biennium projections and breakdowns of which recommendations carry state‑only versus state‑plus‑federal costs. Staff said they would supply additional tables and work with the Legislative Fiscal Division on multi‑year effects and staffing implications.
