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Senate appropriators debate moving school Medicaid administration to AHS and who decides how reimbursements are spent
Summary
Senate Appropriations staff reviewed FY27 language that moves administration of the Medicaid school‑based services program from a shared AOE/AHS approach to the Agency of Human Services (AHS) and debated whether local school districts should retain discretion over how Medicaid reimbursements are used.
The Senate Appropriations Committee reviewed FY27 budget language that would move administration of the Medicaid school‑based services program from a split AOE/AHS arrangement to AHS alone, prompting debate over whether local districts should still decide how Medicaid reimbursements are spent. Jen Carter of the Office of Legislative Council told the panel the change was intended "to ensure compliance with the federal requirements" by consolidating administration under the single state Medicaid agency.
Why it matters: The shift affects which state agency sets rules for how school districts receive and reconcile Medicaid reimbursements and could change whether districts…
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