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Senate briefing: revenue 'basically flat,' mandatory costs and large transfers shape supplemental budget
Summary
Staff to the Senate Ways and Means Committee outlined a supplemental operating proposal that counts on transfers and assumed revenue bills while mandatory costs — notably health and liability — drive most of the gap. Committee staff answered brief questions before hundreds of public witnesses began testifying across education, health, human services and natural resources.
James Kettle, staff to the committee, opened the hearing with a briefing on the chair’s 2026 supplemental operating proposal, emphasizing that ‘revenue is actually basically flat’ after successive forecast revisions despite a February uptick. He told senators the net picture since the enacted budget shows limited new revenue while mandatory maintenance costs have risen sharply.
Kettle said mandatory maintenance items total about $3.7 billion, with the largest single item at roughly $1.1 billion for the Healthcare Authority and about $900 million in managed‑care rate adjustments for…
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