Committee warned provider‑tax changes will hit general fund; staff to track effects

Jan 17, 2026

During the Jan. 16 briefing, committee members and Tom Cravat said recent changes to a health‑care provider tax are expected to flow through to the general fund; a committee speaker cited $17–18 million annually and an approximate $85–87 million five‑year impact.

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A committee member told the joint Appropriations and Ways & Means hearing on Jan. 16 that changes to a health‑care provider tax discussed earlier would reduce general‑fund revenue by roughly $17–18 million per year for five years; the member said that by year five the state would be ‘‘losing 85,000,000 a year.’’ Tom Cravat, the state economist, confirmed the provider‑tax impacts feed through to the general fund and flagged the change as a material consideration when interpreting the forecast.

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