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DLS says Supplemental Budget No. 1 is mostly technical, adds $150 million for behavioral health
Summary
DLS told the Appropriations Committee the supplemental budget is largely technical cleanup but includes $173 million in new spending, notably $150 million for behavioral health, corrections to overstated fund transfers, and several fund swaps and reversions.
A DLS presenter told the Appropriations Committee that Supplemental Budget No. 1 is largely technical cleanup but includes targeted funding and several corrections to the original budget.
The presentation said the supplemental reduces the general fund balance by about $7 million compared with the governor's allowance. DLS identified several revenue and fund adjustments, including a correction to an overstated BURFA transfer, a $5 million transfer from the rainy day fund (leaving the rainy day balance at roughly 8 percent, about $2.2 billion), and small transfers of unused special-fund balances into the general fund.
On the spending side, DLS listed $173 million of new spending: $150 million for behavioral health (about $70 million in fiscal 2026 and $80 million in fiscal 2027) and other targeted increases. DLS said a prior fiscal-26 payment from the Community Services Trust Fund to the Developmental Disabilities Administration (DDA) had already been spent by the General Assembly and cannot be counted twice; that $15 million shortfall will be corrected with general funds. DLS also reported that a proposed use of 911 funds for operating costs conflicted with federal law and will be corrected with general funds.
DLS described several offsets and technical adjustments: Medicaid savings in fiscal 2026 and 2027 are being reallocated into behavioral health; the Climate Catalytic Capital Fund was double-budgeted and will be reduced by $5 million; and a fund swap in DOIT recognizes local shares for certain election-system projects, reducing the state's assumed share. DLS also noted an assumed vacancy savings of about $4 million in the State Police for fiscal 2026.
Overall, DLS summarized the supplemental as "mostly technical cleanup" while highlighting the behavioral-health increase, the DDA correction, the estate of fund reclassifications, and several small reversions. Committee members asked a few clarifying questions and then moved on to the revenue forecast presentation.
