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JFAC moves to restore rural nursing loan-repayment funding after rollout gap
Summary
Committee action addressed a rollout gap in the rural nursing loan repayment program created in 2023, approving a supplemental and ongoing appropriation after an initial transfer motion failed in one committee.
The Joint Finance-Appropriations Committee on March 12 addressed funding shortfalls in the rural nursing loan repayment program created by House Bill 213 (2023).
Frances Lippitt, budget and policy analyst with the Legislative Services Office, told the committee that the program was designed as a five-year initiative with initial funding of $250,000 transferred at creation. Lippitt said a subsequent cash transfer for year two was not completed, leaving the program without authority to make year-two awards.
Representative Furness moved an initial action to transfer $2,250,000 from the General Fund into the rural nursing loan repayment dedicated fund to cover the program life-cycle; that motion failed at the committee level in the Senate. The committee recorded the combined total as: Senate 5 aye, 4 nay, 1 absent/excused; House 6 aye, 3 nay, 1 absent/excused; combined total 11 ayes, 7 nays, 2 absent/excused; the majority in the Senate did not vote in the affirmative and the motion failed in that chamber.
After additional discussion, the committee approved a one-time supplemental appropriation of $375,000 from the rural nursing loan repayment fund for FY2025 to allow year-two awards to be distributed. That motion carried with a combined committee vote reported as 12 ayes, 6 nays, 2 absent/excused.
The committee also approved an ongoing appropriation of $625,000 from the rural nursing loan repayment fund for FY2026 to fund future years of the five-year program; that motion carried with a combined vote of 12 ayes, 6 nays, 2 absent/excused.
During debate, Representative Tanner and others noted there are multiple state and federal programs supporting nursing recruitment, and some members argued the legislature should consider consolidating supporting programs to avoid redundancy. Representative Furness and supporters responded that the program was enacted by statute and funds are intended to provide loan repayment for participating rural nurses. "This is legislation, this is policy that was voted on by the Senate, by the House, signed by the Governor," Furness said in support of completing funding for the program.
Senator Ward Engelking emphasized JFAC's responsibility to fund items that are in statute and said policy issues should be addressed in the germane committees if lawmakers wish to change programmatic scope or repeal the policy.
