Appropriations vehicle advances after committee hears $35 million Medicaid deficit and multiple settlements

The committee advanced an annual appropriations vehicle intended to cover off‑season and fiscal‑year 2026 obligations, including a $35 million deficit request for the Division of Medicaid and multiple settlement and litigation payments.

The chair walked members through numbered sections of the bill, saying it is the recurring vehicle the legislature uses to cover unanticipated or offseason obligations. "This is an pretty much an annual, unfortunately, an annual, act that we have to do every year," the chair said, and then listed items and funding sources.

Why it matters: the bill bundles discrete, time‑sensitive obligations — from wrongful‑incarceration payouts to federal grant changes that affected counties — into a single capital‑expense appropriation so agencies and counties can be paid during FY26.

Key provisions and amounts - Attorney general settlements and capital expenses: Section 1 includes a continuing settlement fee of $10,000 to the EPA for a Chemfac Superfund site and multiple wrongful‑incarceration payments that the chair said are statutory. The chair listed recipients and amounts, including $50,000 per year for Curtis Flowers, Eddie Lee Howard and Sherwood Duane Brown; Courtney Williams ($40,000 for time served plus $8,000 attorneys' fees); and Kelton Hathorne ($86,000, including $50,000 plus $36,000 in attorneys' fees).

- Ongoing litigation budgets: Section 2 allocates roughly $100,000 each for a series of ongoing cases and outside counsel fees, including Olivia Y. (monitoring for a CPS matter, listed at $120,000), White v. State Board of Election Commissioners, legislative redistricting litigation, and suits by AbbVie and AstraZeneca alleging takings or contract‑clause claims. The chair said firms such as Wise Carter, Butler Snow and others have been retained to handle specialized portions of the litigation.

- MEMA/Snap Nurse settlement and other employment claims: The chair said a COVID‑era claim by Snap Nurse (MEMA services) was settled for $2,475,000 to be paid from capital expense. Two employment‑related complaints involving the public/educational television authority total $149,500, and a Community College Board discrimination claim is budgeted at $100,000.

- Medicaid deficit request: The Division of Medicaid requested a deficit appropriation the chair characterized as $35,000,000 (he said the agency's actual request was slightly above that figure). "Hopefully, that'll be enough to get them through FY26," the chair said; he added some funds might be carried into FY27 if not used.

- FEMA restructuring impacts: The chair described federal restructuring that reduced Emergency Management Performance Grant funding. Section 7 records a state impact to MEMA of $1,315,990 and Section 8 would provide $2,672,869 from capital expense to counties unexpectedly affected by the federal change.

- Facilities and program funding: Other items included $4,000,000 for Bolton Building mold remediation and relocation (DMR headquarters), $1,000,000 for a commission centennial, $4,000,000 in pass‑through AOC funds for court reporters and trial judges (plus judge terminal‑leave payments), $25,000 to the Board of Medical Licensure, $5,309,560 for prior DMR projects, $50,000 for licensing system maintenance (social‑work/marriage & family therapy board), and $5,100,000 for student financial aid (MTAG and MESG).

- DHS income‑verification software: The chair listed $4,500,000 in capital expense for DHS to acquire income‑verification software intended to reduce error rates that affect SNAP benefits. When asked later whether DHS had guaranteed improved error rates, the chair said no guarantee was offered and that DHS staff would attend a technology hearing the following day.

Exchanges with members Senator Norwood asked about the status and cost of the monitor in the Olivia Y. CPS matter; the chair said monitor charges vary year to year and offered to provide prior‑year amounts. Senator Dupree sought confirmation that the $50,000 wrongful‑incarceration payments are statutory annual payments; the chair confirmed they are paid for each year served and that attorneys' fees are also required by statute. Dupree also asked whether the $100,000 litigation budgets were for ongoing cases; the chair said most are ongoing and outside counsel have been retained.

Votes and next steps The committee voted by voice to report the bill as "sufficient do pass." The chair then introduced Senate Bill 3105 as an empty vehicle to be used later for unexpected deficits; it contained no dollar amounts and was also reported "do pass" by voice vote. The committee subsequently rose and reported to the full body.

Authorities and limits The chair noted that the wrongful‑incarceration payments follow statutory requirements but did not cite a statute by name during the hearing. Litigation payments are for outside counsel and ongoing cases; specific case names and parties mentioned in the hearing include Olivia Y., White v. State Board of Election Commissioners, AbbVie and AstraZeneca suits, Express Scripts v. Board of Pharmacy, and Arkeila Lewis v. Department of Public Safety.

What to watch The Medicaid deficit request and the DHS technology hearing (scheduled for the next day) are the most consequential follow‑ups: the size of the Medicaid shortfall and whether the DHS software demonstrably reduces error rates could influence later supplemental requests or program penalties.

(Quoted speakers are identified by role or name used in the hearing.)