During the Agency of Human Services presentation to the appropriations committee, AHS described operating pressures tied to office relocation and a request to backfill Medicaid reimbursements for Planned Parenthood.

Tracy O'Connell said AHS expects to enter a Pilgrim Park lease to replace space lost by the sale of 108 Cherry Street, with a net new annual gross cost of $433,000 and a request for a $385,000 general‑fund fit‑out (desks, chairs, conference and technology equipment) as part of one‑time BAA funding. Committee members asked how likely federal funds are to cover part of the fit‑out; O'Connell said it is "pretty likely" administrative costs could be allocated through AHS's cost allocation plan but acknowledged the agency will absorb the cost if federal funds do not materialize.

O'Connell also said one condition of HR1 is a one‑year moratorium on Medicaid reimbursement to Planned Parenthood; AHS requested about $1,100,000 general fund to backfill that revenue to sustain access for approximately 16,000 patients during the moratorium.

Committee members asked for a clear single figure summarizing return‑to‑office lease totals (fit‑up plus operating) and AHS pledged to provide a concise briefing with the net new annual cost and contingencies.

Next steps: AHS will provide a concise cost summary for return‑to‑office leases and follow up on the status of anticipated federal reimbursements.