Bill > S403

This bill adjusts Medicaid funding, reduces vacant state positions, and reallocates funds from building reserves and the State Capital and Infrastructure Fund for the 2025-2027 fiscal biennium. * The Governor and Office of State Budget and Management must identify and eliminate vacant positions across state agencies to achieve a total reduction of at least $19,742,243 in recurring funds, starting in the 2025-2026 fiscal year. * The Department of Health and Human Services (DHHS) must eliminate vacant positions to achieve net General Fund savings of $32,613,493 in recurring funds, beginning in the 2025-2026 fiscal year. * An additional $690,000,000 in recurring funds from the General Fund is appropriated to DHHS for Medicaid rebase and managed care administration for the 2025-2027 fiscal biennium, to account for projected changes in enrollment, costs, and federal match rates, and for the implementation of the Children and Families Specialty Plan. * An additional $38,562,645 in recurring funds and $45,437,355 in nonrecurring funds for the 2025-2026 fiscal year, and $11,437,355 in nonrecurring funds for the 2026-2027 fiscal year, are appropriated from the General Fund to DHHS for contracts related to the State's Medicaid managed care program. * DHHS must discontinue Medicaid coverage of obesity management medications, effective October 1, 2025, with an exception for GLP-1 medications for diabetes management. This action is expected to reduce Medicaid program funds by $34,000,000 in recurring funds. * Local Management Entities/Managed Care Organizations (LME/MCOs) are required to make intergovernmental transfers totaling $18,028,217 in the 2025-2026 fiscal year and the same amount in the 2026-2027 fiscal year to DHHS. * The Office of the State Auditor will conduct performance audits of county departments of social services' administration of the Supplemental Nutrition Assistance Program (SNAP) and the Medicaid program, with $1,500,000 from the General Fund appropriated to DHHS for each audit. * Recurring funding for Future Building Reserves is reduced by $42,206,909, beginning in the 2025-2026 fiscal year. * The transfer from the General Fund to the State Capital and Infrastructure Fund is reduced by $34,000,000 for the 2025-2026 fiscal year. * The Office of State Budget and Management is authorized to use unexpended bond proceeds for debt retirement, reimbursement of the State Capital and Infrastructure Fund, or to pay for authorized but not yet incurred capital improvement projects.