Joint JFAC hears Health & Welfare budget maintenance requests, SNAP and Medicaid cost shifts

The Joint Senate Finance and House Appropriations Committee on Wednesday received a line‑by‑line briefing from the Department of Health and Welfare on its 2027 maintenance and restoration requests, including system updates needed to meet federal changes and cost shifts the department says will move millions onto the state general fund.

Alex Williamson, a budget and policy analyst with Legislative Services, told the committee the Division of Welfare (Self‑Reliance) provides SNAP, TANF and other eligibility services and is authorized for 609.5 FTE. He said the agency is seeking a one‑time systems enhancement tied to federal guidance that requires more frequent Medicaid eligibility renewals and noted the department adjusted its request after updated notices on allowable funding sources.

"The initial agency request was 100,000 one time from the general fund and 900,000 one time from federal funds," Williamson said, adding that updated federal guidance changed how the systems funding would be financed.

Williamson also flagged a $4,321,200 ongoing shift to the general fund for SNAP administrative costs, saying HR1 alters the state/federal share so the state’s portion rises to 75% starting Oct. 1, 2026. He described that as a reallocation of where administrative costs are recorded rather than a net increase in total program spending.

On mental‑health budgets, Williamson outlined a request to restore 15 of 51 previously removed FTE and roughly $6.2 million tied to personnel and trustee/benefit payments, much of it targeted to children’s services required under the Jeff D. settlement. He also described a net‑zero adjustment that shifts about $6 million from federal to dedicated receipts because patient billing now flows through the state’s behavioral‑health contractor, Magellan.

"Of the total, state hospital north accounts for about 1,100,000 of that shift and state hospital south is about 4,800,000 of the shift," Williamson said when describing accounting changes created by third‑party billing arrangements.

Director Juliette Sharon characterized the package as largely maintenance and restoration: "These are really maintenance requests, or, you know, for again, for the hospital's replacement items, or lastly, items that are reflective of new requirements that we have," she told the committee. Sharon and analysts emphasized that several requests respond to federal directives in the 1 Big Beautiful Bill (HR1) and House Bill 345, which require more frequent renewals and new verification workflows.

Committee members asked for follow‑up data on several points, including a breakdown of the factors driving a roughly $5 million increase in Self‑Reliance appropriations, the funded versus unfunded status of dozens of vacant FTE across divisions, and details on how third‑party billing affects the appearance of federal versus dedicated receipts.

The committee also received the Legislative Services Office "green sheet" update from analyst Christopher Lahosos, who pointed members to the posted revenue projection changes and a back‑page list of bills with fiscal notes that will be incorporated into future updates as they move through the Legislature.

The committee adjourned to allow the Senate to reach the floor by 09:45 and scheduled reconvening Monday at 8 a.m. to resume budget briefings.