Appropriations committee hears DAIL FY2027 budget; caseload, Choices for Care and developmental services drive $31M increase
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Summary
The House Appropriations Committee reviewed the Department of Disabilities, Aging and Independent Living’s FY2027 proposal, which shows a gross increase of about $31 million driven largely by caseload and utilization in Choices for Care and developmental services; DAIL flagged federal funding uncertainty and reinvestment issues.
The House Appropriations Committee on Thursday reviewed the Department of Disabilities, Aging and Independent Living’s (DAIL) FY2027 budget, which DAIL staff said reflects a gross increase of roughly $31 million largely driven by caseload and utilization pressures in Choices for Care and developmental services.
DAIL Commissioner Angela Jo Bowen said the department’s gross budget for FY27 is about $829,000,000 and described increases that stem primarily from higher caseloads and utilization in adult services and developmental services. "We have a $31,000,000 increase; the drivers are caseload and utilization," Bowen said.
Why it matters: Choices for Care and developmental services together account for the largest share of DAIL’s spending, and committee members pressed DAIL on how those increases will affect general‑fund obligations and the department’s ability to respond to nursing‑home and residential‑care instability.
DAIL staff told the committee that pure general‑fund increases outside the global commitment amount to about $39,100,000 (roughly 4.7%). Staff emphasized the difference between gross and general‑fund figures and noted that federal funds are being adjusted to reflect utilization, not necessarily changes in federal awards.
Committee members asked whether federal reorganizations or changes to Medicaid "money follows the person" rules could reduce funds. Bowen said the department is working with the Centers for Medicare & Medicaid Services to understand possible impacts and that nothing definitive had yet been confirmed.
Members also raised the recurring role of Extraordinary Financial Relief (EFR) in stabilizing nursing homes since the pandemic. DAIL acknowledged EFRs have varied year to year and said unused EFR dollars can complicate reinvestment formulas under Choices for Care.
Budget adjustments: DAIL pointed to several technical adjustments and interfund transfers. Committee members questioned a $1,000,000 reduction in adult day health and rehab appropriations; DAIL staff said utilization in that program has historically been below appropriation but that funding is available if utilization increases.
What’s next: DAIL said it will provide supplemental material and an annual developmental disabilities report to the legislature in February with additional outcome data. The committee will continue its FY27 review in later sessions.
All quotations and program figures above are taken from DAIL’s presentation to the House Appropriations Committee and committee discussion on Jan. 29, 2026.
