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Subcommittee advances omnibus budget changes with childcare funding and contested Medicaid edits
Summary
The subcommittee adopted LFO recommendations and moved House Bill 5204 (omnibus budget reconciliation) to the full committee after testimony praising $67 million for childcare subsidies and raising concerns about deep cuts to the Medicaid quality incentive program and other human services adjustments.
The Joint Committee moved House Bill 5204 as amended to the full Ways and Means committee after an extended public hearing and LFO presentation covering statewide budget adjustments.
Advocates from early childhood organizations thanked the committee for a $67,000,000 federal fund limitation for childcare subsidies and additional allotments for Employment Related Day Care (ERDC), but urged restoring inflationary increases and additional long‑term investments. Dana Hepper of the Children’s Institute said the funding protects about 12,000 families currently served and warned that more work remains to address structural shortfalls in childcare programs.
Health policy speakers, including Josh Balak of the Independent Physicians Association and Dan Cushing on behalf of MPL Community Care, opposed steep reductions in the Oregon Health Authority quality incentive program, arguing the cut from earlier levels would remove funds that support primary care and preventive activities and could forfeit federal matching dollars. LFO staff presented a detailed fiscal summary, including large net adjustments across agencies, one‑time fire season funding and targeted investments in education, corrections and higher education.
Committee members adopted four LFO‑recommended budget notes, debated items including horse‑racing event support and forestry funding, and moved the dash‑2 amendment to the full committee with a due‑pass recommendation. Members praised the work of LFO staff and acknowledged the difficulty of balancing short‑session constraints with complex programmatic needs.
