Lawmakers press DHS, DFA after $90 million Medicaid trust‑fund draw in February
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Summary
Senators and representatives pressed DHS and DFA officials over a $90 million transfer in February, sought projections for remaining trust‑fund balances and asked for historical and written plans to address staffing and cash‑flow pressures.
Senators and representatives pressed the Department of Human Services (DHS) and the Department of Finance and Administration (DFA) about a large Medicaid trust‑fund draw in February, when DHS reported $90,000,000 in outbound transfers for the month.
Senator Hickey asked whether February’s use represented a trend that would deplete reserves. DHS secretary Janet Mann said $66,000,000 of the February total came from the trust fund and the remainder covered purposes such as nursing‑home weekly transfers and matching requirements. Mann described February as a low state‑general‑revenue month that historically requires higher trust‑fund use and projected the year‑end balance to fall between $150 million and $200 million, acknowledging the range could change with quarterly payments and refunds.
DFA Secretary Jim Hudson confirmed the committee’s understanding that one $100 million set aside for FY26 remains untouched and that the governor’s budget proposal includes a second $100 million set aside for FY27; Hudson said the administration expects to tap into set asides in FY27 as needed. Members pressed for clearer, historical data; Senator Hickey and others asked staff to bring multi‑year comparisons of typical monthly outflows to help determine whether February’s draw was exceptional.
DHS officials said the $25.7 million pay‑plan appropriation requests under consideration were appropriation‑only and did not request new funding; DFA explained roughly $60 million in appropriation authority remained after the session’s requests and that performance‑fund dollars available for pay adjustments were roughly $45 million.
Committee members requested written plans and additional documentation: DOC was asked to provide a historical hiring/vacancy brief; DHS was asked to provide a written staffing plan for the human development centers and to circulate reports on recent transfers and trust‑fund activity.
Next steps: agencies will supply the requested documentation and the committee will continue trust‑fund monitoring as the fiscal year progresses.