Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the ODHS Rebalance topic
No spam. Unsubscribe anytime.
Oregon DHS seeks $91.5 million general fund in fall rebalance, cites caseload and classification impacts
Summary
The Department of Human Services told the subcommittee its fall 2025 rebalance shows a net general‑fund need of about $91.5 million, driven by caseload and cost‑per‑case increases across APD, IDD and child welfare, classification study impacts and central services cost allocation issues.
Rob Koduri, chief financial officer for the Oregon Department of Human Services, told the joint subcommittee that ODHS’s fall 2025 rebalance reflects a net general‑fund impact of approximately $91,500,000 and a federal funds expenditure limitation request of roughly $208,800,000.
"We are off by about 1.2% in our general fund compared to the legislatively adopted budget for ODHS," Koduri said as he walked members through drivers including caseload increases, cost‑per‑case rises and classification study salary adjustments. He cited provider tax collections that exceeded estimates—about $35,500,000—as an offset in APD, and a small FMAP increase of 0.27% that yielded further savings.
Key contributors to the request include: a $29.8 million ask tied to caseload and cost per case in Healthy Oregon and APD; a $47.7 million general‑fund challenge in IDD driven by caseload growth including a 20.9% increase in children’s 24‑hour residential caseload; a $20 million increase in child‑welfare foster care and residential treatment costs including a 24.7% caseload rise in residential treatment; and classification study impacts that increased personal‑services costs for thousands of positions.
Koduri also described a plan to use one‑time transfers and hiring pauses to manage central‑services deficits and acknowledged continued risk from caseload volatility and federal policy changes. Committee members asked whether psychiatric residential care costs might be Medicaid‑eligible and pressed for follow‑up detail on whether general funds are covering services Medicaid should fund; Koduri and child‑welfare staff said they would follow up with the committee.
The Legislative Fiscal Office recommended that the committee acknowledge receipt of the rebalance report and develop reconciliation recommendations for the 2026 session; the subcommittee approved that recommendation and will carry it to the full Ways and Means committee.
