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Legislative panel hears AG budget: added Medicaid‑fraud attorney, IT upgrades and $8M litigation fund proposed

Appropriations - Education and Environment Division · January 29, 2025
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Summary

The Appropriations — Education & Environment Division heard testimony on the Attorney General's budget (House Bill 1003). The committee agreed to put multiple items into the House version, including a Medicaid Fraud Control Unit attorney FTE ($343,000), IT upgrades (e-prosecutor and SAVIN), and a proposed $8 million litigation fund, while advocacy groups urged more human-trafficking grant match funding.

Chairman Nathy convened the Education and Environment Division hearing on House Bill 1003 and previewed a new long-sheet budget worksheet the committee will use to build the House version of the Attorney General's budget.

Assistant Attorney General Claire Nesse summarized the office's written testimony and division-level asks, including a request to add an attorney for the Medicaid Fraud Control Unit (MFU) and several reclassifications and vacancy-fill requests. "Since its inception in August of 2019, it's recovered approximately $2,850,000 and collected almost $900,000," Nesse said of the MFU, noting the unit receives a 75% federal cost share. MFU director Marina Spahr explained the difference: "A recovery is any money that Mifuku recovers ... any money that Mifuku recovers whether it be from a global settlement, a state civil settlement, or a criminal judgment," while collections reflect cash actually in hand.

Committee counsel Levi described a methodology shift for new and vacant FTE funding: rather than maintaining a central statewide pool in OMB, the leadership proposal places a new-and-vacant FTE line within each…

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