DHHS officials cite late billings, new enrollees and lower carryforward as causes of rising developmental-disability costs

During questions on the departments budget for developmental-disability services, Nathan White, chief financial officer for the Department of Health and Human Services, told the Fiscal Committee that several factors have combined to push costs higher for fiscal year 2026.

"There's been a number of changes and factors that are contributing to the expense projections," White said, citing delayed pandemic-era billings, additional individuals entering the system, and increases in individual budgets for care. He told the committee that the agency set the budget in August 2024 and had to make assumptions that later proved incomplete as spending trends emerged.

White said the department had expected a carryforward of about $94,000,000 but that late-year spending left a carryforward of approximately $72,000,000, a shortfall of roughly $20,000,000. He described department-wide transfers as the mechanism used to realign funds where spending is projected to exceed earlier estimates and said the department is closely monitoring accounts to avoid unnecessary transfers or lapses. "Were bringing this forward now because we didn't wanna overstate it," White said, explaining the timing of the request.

Senators pressed for clarity on whether new in-migrants to the state or changes in service priority were responsible; White said it is a confluence of demographic changes and system-driven adjustments rather than a single cause. The committee approved the related transfer request after White offered to provide a reconciliation of original awards, expenditures and remaining balances.

The department also noted it has roughly $10,300,000 in certain federal one-time funds remaining in related informational items, and offered to supply a detailed reconciliation and historical award amounts to the committee.