Committee adopts compromise to limit kids matching grant program, add sunset and audit changes (Substitute for Senate Bill 281)

The Committee on Government Efficiency adopted and passed a substitute for Senate Bill 281 that preserves the existing kids matching grant program but makes several changes negotiated by stakeholders.

Tamara Lawrence summarized the proposed substitute and said it would retain the kids matching grant program but set a three‑year sunset, limiting the program to calendar years 2025, 2026 and 2027, reduce the number of approved applications from 1,200 to 1,000 and bar the treasurer from accepting applications in calendar 2028 and beyond. The substitute also narrows audit requirements: instead of auditing all withdrawals of matching funds, the treasurer would be required to audit 10 withdrawals, with audit procedures and penalties specified in the substitute.

Tom Treacy of the treasurer’s office told the committee that a three‑year sunset and a limited random‑audit approach would reduce administrative burden. He said the office spends about 850 man‑hours checking receipts for the program and that historically the program has never exceeded about 1,000 applicants; he said the office’s average recent yearly applicant count was about 708. Treacy said roughly 99% of withdrawals reviewed have been mistakes or misunderstandings and that a combination of the audit threat and penalties should be sufficient.

Committee members noted stakeholder support for the compromise; Lawrence said Interhab and a previously opposed witness, Nick Novelli, now support the substitute. Senator Murphy moved adoption of the substitute; Senator Shane seconded. The substitute was adopted and the committee then voted to pass the substitute favorably out of committee.