Senate budget subcommittee adopts Department of Health VA report; approves major Medicaid increase

The Senate Budget Subcommittee voted April 17 to adopt the Department of Health budget action words report for fiscal year 2027, approving major funding changes that include a $377,298,200 increase to Medicaid, staff said.

"We have adopted the VA report," Sen. Stedman, chair of the subcommittee, said after the panel withdrew an objection and approved the document. Sen. Dunbar moved the motion to transmit the attached report and to authorize Legislative Legal to make any necessary technical or conforming changes.

Rose Foley, staff to Sen. Stedman, briefed the panel on the subcommittee's recommendations. She said the FY27 Department of Health numbers total $4,247,760,400, including $1,124,395,800 in unrestricted general funds and $2,961,607,500 in federal funds. Foley told senators the subcommittee reviewed the governor's amended request and approved most items "with the exception of an $8,000,000 request for ongoing contractual operations of the virtual call center."

The subcommittee approved several notable additions and adjustments. It authorized incremental funding of $21,041,900 for the operation and maintenance of IT systems and supported implementation of IT and community care licensing specialist class studies. The panel added $2,000,000 for Alaska food banks and pantries and just under $6,000,000 to the Infant Learning Program for an inflation adjustment and to expand eligibility. Foley also said the subcommittee directed the department to increase rates for private duty nurses to align with Guidehouse recommendations.

The motion's outcome was adoption; the transcript records no roll-call tally. Following the adoption, the subcommittee confirmed it was also adopting the wordage report and authorized Legislative Legal to make technical edits. Chair Stedman thanked Valerie Rose of Legislative Finance for her assistance and adjourned the meeting at approximately 12:08 p.m.

What happens next: The adopted VA (budget action) report will proceed per subcommittee practice to any next steps required by the Senate budget process; the transcript does not specify a calendar date for further action.