Appropriations committee hears OPM outline of $78.4 million deficiency bill for FY2026

The Appropriations Committee opened a public hearing on House Bill 5031, an act making deficiency appropriations for the fiscal year ending June 30, 2026. Mr. Secretary told the committee the bill "makes appropriations totaling 78,435,000 uh dollars" and couples those increases with proposed reductions of $77,121,000 to limit the net fiscal impact to about $1.3 million while remaining under the state's constitutional spending cap.

Why it matters: the bill is intended to address agency shortfalls projected by the Office of Policy and Management (OPM) and to preserve compliance with the state's expenditure cap while agencies continue to manage rising costs, notably in health care and workers' compensation.

Mr. Secretary said OPM expects to update the bill over time as agencies refine expenditure estimates and as the Finance Advisory Committee (FAC) considers transfers and the release of withheld funds. Committee members repeatedly probed whether FAC meetings could or should be used to handle some shortfalls instead of relying on deappropriations in this bill.

Representative Walker raised Medicaid omissions in the initial drafts, asking why Medicaid-level shortages did not appear earlier. The secretary said earlier projections showed more deficiencies than identified lapses and that OPM has continued to work with agencies to identify lapse opportunities so a final bill can include Medicaid shortfalls where needed.

Several members, including Representative Aker and Representative Corpus, asked for clearer identification of the accounts targeted for deappropriation. The secretary explained that deappropriations generally come from anticipated lapses — delayed contracts, unfilled positions or timing differences — and that the bill (and subsequent FAC transfers) will need to identify which lines will be reduced to offset entitlement increases.

Committee next steps: OPM said it will continue to revise deficiency estimates in coordination with the Office of Fiscal Analysis and agency CFOs. The hearing set the stage for agency-by-agency presentations that followed and for FAC actions later in the fiscal year to address timing and availability of funds.

The committee did not vote on the bill at the hearing; members were reminded of a Joint Fiscal deadline on April 2 and potential committee meetings scheduled before then.