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Committee approves governor's $25M Millennium Fund recommendation after debate over Medicaid use
Summary
After extended debate about statutory intent and oversight, the committee recommended sending the governor's $25 million Millennium Fund transfer to mitigate an updated Medicaid forecast to JFAC, with members requesting payback language and oversight safeguards.
The interim committee debated whether to recommend the governor’s one-time transfer of $25,000,000 from the Millennium Fund to mitigate an updated Medicaid forecast impact on the general fund.
Representative Mitchell moved the recommendation to appropriate $25,000,000 to the Department of Health and Welfare (Division of Medicaid) as the governor proposed. Representative Erickson and others cited House Bill 715 (2024), arguing that the committee previously stated intent that Millennium Fund income not be used for Medicaid payments after fiscal year 2025. Several members urged that, if the committee forwards the recommendation, language be included to limit how the funds are used and to require a payback to the Millennium Fund should the state end FY2027 with a surplus.
Budget context was discussed: committee staff and members noted that without the transfer the projected ending balance would fall by $25,000,000 and that JFAC generally handles budget balancing decisions and supplemental payments to federal Medicaid obligations. Senator Woodward and other members described the proposal as a bridge for the current shortfall; Representative Redmond recorded a 'nay' during the voice vote, citing concerns about precedent and mission alignment.
The committee approved the recommendation by voice vote; transcript records at least one recorded 'no' vote by Representative Redmond. Members asked staff to include clarifying intent language on oversight and to explore payback provisions should surpluses permit reimbursement to the Millennium Fund.
The recommendation will now go to JFAC for consideration as part of the state budget process.
