Legislative subcommittee reviews DPHHS Technology Services Division budget, House Bill 10 project timelines and costs

The Legislative Fiscal Division told the Section B Subcommittee that the Department of Public Health and Human Services’ Technology Services Division (TSD) has a base budget of “a base budget of $75,500,000 in fiscal year 2025,” and that the governor’s biennial request seeks about a $38.2 million increase over the base, a 25.3% biennial change, split largely between federal special and general fund increases.

The committee was told why the increase is concentrated in operating and maintenance costs: multiple House Bill 10 long-range IT projects are nearing completion, and when capital projects finish the state pays recurring maintenance-and-operations (M&O) costs out of the House Bill 2 operating budget. “By participating in these procurements, we open the door for more business,” Shelly McCann, who leads the EMPATH team, told the subcommittee of multistate procurements used for some contracts. Carrie Albrecht, chief information officer for DPHHS, said the agency has also adopted statewide IT tools and “DPHHS has the lowest risk score of any state agency,” reflecting recent security work.

Why it matters: the TSD budget funds critical statewide technology services for Medicaid and other programs, and the subcommittee’s choices affect whether the department can operate, secure, and integrate systems that handle eligibility, claims, provider payments and health data exchange.

Committee discussion and LFD presentation Julia Hamilton, the Legislative Fiscal Division analyst for this review, walked members through tables showing the current base and the…