Ways & Means Committee advances FY27 budget, transfers $104.9 million to education fund

The Ways & Means Committee voted March 24 to find H951 favorable after a high‑level presentation on the FY2027 budget that laid out a $9.3 billion unduplicated total and several notable revenue and transfer changes.

Emily Burn of the Joint Fiscal Office told the committee the FY2027 unduplicated total is "$9.3 billion," with "over a third" of that coming from federal funds largely tied to Medicaid. She said the general fund and the education fund each account for about 27% of the total, special funds about 7% and the transportation fund about 4%.

Burn said revisions tied to the miscellaneous tax bill (including changes to meals and rooms and corporate income tax provisions) have a small net FY27 impact after adjustments to FY26 carryforward. She identified a significant source of additional appropriations in the House proposal: interest earnings from the technology modernization fund, which the appropriations committee moved into the general fund to increase available appropriations.

The presenter confirmed the House proposal includes a $104.9 million transfer to the education fund and noted other specific uses: a position in the tax department to implement contemplated homestead declaration changes and $150,000 for the treasurer’s Volunteer Income Tax Assistance program. She also cited a $1.3 million transfer to the Community Resilience and Disaster Relief Fund to help towns denied FEMA relief.

During debate Representative Shai said the appropriations committee had "passed the budget out unanimously in our committee," and members generally praised staff work. Representative Fulham raised a procedural and implementation concern about the budget’s incorporation of H558, which transitions school‑based Medicaid services to the Agency of Human Services: she said there was little consultation with school districts until very late in the process and urged the committee and appropriations staff to monitor implementation closely to avoid failures.

Committee discussion also focused on multi‑year revenue dynamics. Members flagged a projected $18.5 million drop in provider tax revenue beginning in FY28 — the first of several scheduled reductions — and warned that the end of one‑time revenues could leave a $40–$60 million gap next year if not addressed. Members proposed scheduling an updated briefing on revenue and program impacts to inform second‑half session decisions.

Representative Kimell moved that the committee find H951 favorable and Representative Wadzac seconded. Clerk Curt called the roll; the chair announced the committee had "voted the bill favorable 1100." The chair said members would report the bill to the floor.

What happens next: The committee’s favorable finding moves H951 to the next stage on the legislative calendar. Members requested follow‑up briefings on implementation plans for the school‑based Medicaid transition and an updated revenue outlook to address the provider tax reductions and one‑time funding expirations.