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AHS proposes $3.7 billion budget; Medicaid funding shifts, FMAP drop and caseloads drive requests
Summary
Agency of Human Services leaders told the Appropriations Committee their $3.7 billion FY27 budget request rises about 6.1% ($86.1 million), driven largely by Medicaid cost pressures, a 0.73 percentage-point FMAP decline (about $13 million), SNAP admin match reductions and caseload/utilization shifts; AHS proposed $41 million in general fund reductions and targeted supports for providers.
The Agency of Human Services presented its fiscal 2027 budget to the Appropriations Committee, saying the agency's total request is about $3,700,000,000 and that the Medicaid/global commitment program accounts for the largest share.
For the fiscal year, AHS requested a general fund increase of 6.1, or roughly $86.1 million, the agency said. "The agency of human services has a budget of $3,700,000,000," the secretary said during the briefing. Most of the requested increase is for current-services costs; AHS estimated about $74.9 million of the request is to maintain existing programs and operations, with roughly $11.2 million directed to base initiatives.
Why the increase matters: small percentage changes in the federal Medicaid match create large dollar impacts because the Medicaid program is about $2.2 billion. AHS told the committee that a…
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