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OFM outlines Gov. Ferguson’s 2026 supplemental budget, cites caseload growth and a revenue shortfall
Summary
Office of Financial Management Director Katie Chobinski told the Senate Ways and Means Committee the governor’s 2026 supplemental package responds to caseload growth, federal policy changes and a drop in revenue; the proposal uses roughly $1 billion from the budget stabilization account and targets reductions and selective restorations across human services, education and natural resources.
Katie Chobinski, director of the Office of Financial Management, told the Senate Ways and Means Committee the governor’s 2026 supplemental proposal aims to preserve core services while closing an on‑paper shortfall driven by caseload growth, federal policy changes and weaker revenue forecasts. "We have seen increasing case loads and enrollments," Chobinski said, and identified long‑term care, childcare and special education as the largest drivers of maintenance‑level cost increases.
Chobinski said federal changes tied to the federal reconciliation bill known in this hearing as HR1 require the state to absorb additional costs for SNAP and Medicaid and related systems investments; she reported about $155,000,000 in…
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