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Public‑health official warns of $9–10 million CHIP shortfall this year and $19 million ETF ask for FY27
Summary
Doctor Harris told the committee pandemic-era FMAP changes and enrollment churn left Alabama short roughly $9–10 million in the current fiscal year for CHIP; the department proposes a $19 million supplemental from the Education Trust Fund to stabilize FY27.
Doctor Harris, speaking for the Alabama Department of Public Health, told legislators that changes in federal funding and pandemic enrollment dynamics have left the state’s Children’s Health Insurance Program (CHIP) with a budget gap this year.
"We were short, about 9 or $10,000,000 for this current fiscal year," Harris said, explaining that during the pandemic a reduced state match and carryforward balances temporarily lowered state obligations and that those reserves have now been exhausted. He told the committee CHIP is administered in Alabama by Blue Cross and that the program covers more than 100,000 children.
Context: Harris explained several recent dynamics: during COVID the FMAP (federal medical assistance percentage) was lower and many children remained on Medicaid for the length of the public‑health emergency; the state used carryforward funds earlier and those balances ran down in FY25, producing a larger match requirement now. He estimated the total additional need for FY27 at about $19 million if the proposed ETF supplemental is approved.
Program details and options: Harris said the department seeks ETF supplemental funding to draw down federal dollars rather than asking for new recurring general‑fund appropriations. He also noted that not all federal or middle‑column dollars can be repurposed because many grants are restricted; the department has requested waivers and is coordinating with the governor’s office and budget staff on ETF options.
What comes next: Committee members asked for more granular historic enrollment and per‑member claims figures; Harris offered to provide slide backups and follow‑up meetings with staff.
