Health and Social Services Subcommittee adopts FY27 subcommittee report, adds DDA monthly reporting and approves multiple budget restrictions

The Health and Social Services Subcommittee met on March 18 to consider FY27 budget recommendations across health and social services agencies and moved the subcommittee report by voice vote.

Chair Shetty opened the session and turned the packet walkthrough to analyst Victoria Martinez, who guided members through the white decision document and a blue packet of additional pages containing Senate modifications and extra narrative requests. The committee considered items for the Office of the Deaf and Hard of Hearing, the Department of Aging, the Behavioral Health Administration, the Developmental Disabilities Administration (DDA), Medicaid programs, and multiple social services and housing programs.

A prominent change recorded during the meeting was an additional blue‑packet modification for the Developmental Disabilities Administration. The modification, moved and seconded for adoption by the subcommittee, requires monthly reporting and specifies additional data elements on community services spending that the Senate had previously conditioned with restricted funding. Victoria Martinez described the modification and the chair noted the provision was important to members who had received constituent feedback on DDA operations.

On Medicaid, the committee reviewed several Senate‑adopted adjustments that the agencies sometimes disputed. The packet included an $8 million reduction tied to the expectation that patients with end‑stage renal disease will be covered by Medicare; DLS explained the adjustment and the Senate adopted it despite MDH expressing timing concerns. Members also reviewed larger adjustments recommended to reflect prior‑year claim variances and medical‑loss‑ratio recoveries, including a $10 million general‑fund reduction ($70 million in total funds) tied to lower‑than‑expected prior‑year claims and a separate reduction of $44.2 million in general funds (about $151 million in total funds) described as recognizing medical‑loss‑ratio recoveries.

The committee processed numerous 'move to concur' and 'move to adopt' motions on narrative requests, reporting deadlines and conditional fund restrictions across agencies. Examples include requests for reports on sign‑language licensing and vacancy reporting for the Office of the Deaf and Hard of Hearing; additional narrative and restricted‑fund provisions for behavioral‑health workforce improvements and peer recovery specialist internship costs; and multiple child‑welfare and foster‑care reporting requirements in the Social Services Administration.

Chair Shetty moved to adopt the full Health and Social Services subcommittee report for FY27; the committee answered 'Aye' on a voice vote and the chair announced that 'the ayes have it.' In closing remarks Shetty thanked the analysts, including Victoria Martinez, and subcommittee counsel Joe Gupperlett for their work in preparing the HSS portfolio.

What happens next: the chair noted the subcommittee report will be taken up formally by the full appropriations committee at its Friday session for final consideration and any further action by the chamber.