Senate Institutions Committee reviews DOC FY26 budget adjustment, including Wellpath contract expansion and Medicaid offset
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Summary
Department of Corrections staff told the Senate Institutions Committee that H.790 would increase FY26 spending for in-state medical services and substance-use treatment under the Wellpath contract, offset some general-fund costs by moving allowable activities into the Global Commitment via a random moment time study, and add modest operating costs for out-of-state beds, utilities and staff hoteling.
The Senate Institutions Committee heard testimony Feb. 10 from Department of Corrections officials on H.790, a FY26 budget adjustment that would change several DOC operating lines and amend the contract for in‑custody medical and substance‑use services.
Interim Commissioner John Murrah and DOC budget staff presented the department’s summary, saying the proposal moves some costs from the general fund into the Global Commitment (the state Medicaid-like pool) by documenting probation and parole staff activities through a random moment time study. DOC officials said that shift is intended to reduce pressure on the general fund and that reporting under the new time study has begun this fiscal year. Committee members asked whether DOC plans to continue the practice next year; DOC replied that it is the plan to continue the approach.
DOC also described a contract amendment with Wellpath for in‑state medical services tied to an increase in average daily population and to expanded substance‑use treatment, including a Burlington Recovery Response project. DOC said the amendment covers higher ADP‑related costs and a roughly $1.2 million component intended to stand up additional treatment staff (seven positions were cited during testimony). Department presenters described the treatment expansion as an effort to increase therapeutic services beyond medication alone and said roughly half of people in custody already receive medication‑assisted treatment (MOUD).
On the funding mechanics, DOC staff said one component of the request is effectively a net‑neutral carryforward of an FY25 payment that must be recorded on the FY26 BAA for receipt; a finance official stated that portion is “net neutral … not new money; it’s existing money.”
The department requested an increase to cover additional out‑of‑state bed usage, noting roughly 150 people are currently housed out of state and that temporary placements have included a facility in Tallahatchie, Mississippi, operated by CoreCivic. DOC identified a line increase for out‑of‑state beds in the FY26 request and said the recent population rise over the summer drove additional placements.
Committee members pressed DOC on transport responsibilities. DOC clarified that extradition or apprehension transports differ from routine court transports: the latter are typically the responsibility of county sheriffs or the courts, while DOC sometimes handles other types of transport and has taken on extra duties since the pandemic because of remote courtrooms. DOC warned that if models like Burlington’s 3B courtroom are expanded, transport demands could grow and affect staffing.
Other operating items explained during testimony included: • A water/sewer payment for the Southern State Correctional Facility (SSCF) that DOC said must now be budgeted (presented as about $100,000 in total for the year). • An increase to a pilot (payment‑in‑lieu) special fund for Newport and Southern facilities to reduce general‑fund hits for PILOT obligations (DOC cited an increase from an unlabeled baseline by $55,000 to a $207,000 pilot fund total). • A request to budget $225,000 in general fund for short‑term hoteling of staff used to cover long transports or extended shifts. • A $60,000 request for heat‑mitigation items tied to DOC policy 3.22 and VOSHA recommendations (fans, breathable shirts, water and related supplies), noted primarily for staff comfort and some population options. • A mechanically required service‑level transfer from AHS (AES) of $215,000 that DOC described as net neutral.
Committee members asked whether DOC is tracking outcomes for the expanded treatment services; DOC said those evaluation efforts are in early stages and that there is not yet sufficient throughput or data to report a programmatic success metric.
No formal motions or committee votes were recorded during the hearing. Committee members asked DOC to return with additional detail on transport data, the rationale and conditions for out‑of‑state placements (including vendor selection), and longer‑term plans for training and correctional industries.
What’s next: Committee members asked DOC to return for further hearings with follow‑up information on transports, treatment outcome measures, and contracting details; no final committee action occurred during the Feb. 10 session.
