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Committee approves DHS reallocation moving tens of millions to nursing home lines
Summary
The committee approved second reallocation moves from DHS that transfer $58.6 million from a hospital medical appropriation to private nursing home payments and $17.5 million to public nursing homes, with agency officials saying the hospital medical line is a general services fund and the moves address rising client counts and rates.
Members pressed the Department of Human Services on a large reallocation request that moves tens of millions in spending authority to nursing home line items.
Billy Parish summarized Section E reallocation requests and said the package included a transfer of $58,600,000 from the hospital medical line item to the private nursing home line and $17,500,000 from the hospital medical to the public nursing home line "due to an increase in the number of clients and rates paid." Representative Hudson asked what services those original hospital-medical funds had been used for and what the state was pulling the funds from. Elizabeth Pittman, from the Division of Medical Services, said "The hospital medical is our general services fund that covers services like hospitals, physicians, things of that nature...there is excess funds there and we need to move it to cover the private nursing facilities." Andy Morgan, deputy CFO, clarified these are appropriations being reallocated rather than additional cash spending authority.
The committee approved the reallocation requests by voice vote. Members had no further questions for the agency in the hearing record; staff and agency representatives remain the primary sources for additional program-level detail.
The committee recorded the transfers and noted they were made under statutory reallocation authority to respond to changing client needs during fiscal year 26.
