The Senate Appropriations Committee on Monday advanced House Bill 1015, the Office of Management and Budget (OMB) budget bill, after lengthy debate over multiple line items including a $285 million state hospital proposal and a $1 million one-time appropriation for a life-education committee.

Committee leadership opened the meeting by warning members that current projections show the general fund approximately $300,000,000 overspent and the State Infrastructure Fund (SIF) potentially $200,000,000–$300,000,000 overspent, making further cuts likely in conference committees. The committee adopted a package of Senate changes to the House bill and approved several amendments before sending the bill toward conference.

Why it matters: HB1015 contains the bulk of the OMB operating and capital decisions that will shape state spending in the coming biennium, including large capital proposals that could reshape how the state provides inpatient behavioral-health services and one-time and ongoing appropriations that affect multiple agencies.

Key changes the committee considered

- Custodial equity: The Senate reinstated $110,114 in funding that had appeared in the executive (Armstrong) budget but was removed by the House. The money is intended to narrow a roughly $1,800 average annual salary gap and reduce turnover among facility management custodial staff.

- Rent replacement for the 15th floor: The bill includes $219,000 to replace rent revenue lost when legislative office space on the 15th floor became rent-exempt; the change shifts the funding source rather than increasing line-item operating costs.

- Rent, moving and space reconfiguration pool: The Senate added $4,000,000 (SIF) to assist OMB with agency moves, reconfigurations and temporary rent costs.

- Prairie Public Broadcasting: The Senate language restores a one-time SIF infrastructure grant of $850,000 after the House removed prior base funding.

- Retirement transfer incentive: An appropriation of $1,000,000 was included to pay an incentive for eligible employees who elected to transfer from the defined-benefit retirement plan to a defined-contribution plan; 44 employees elected the transfer and the biennial cost was estimated at $959,904.

- State hospital funding: The Senate bill moved responsibility for the state hospital project to OMB and included a SIF appropriation of $200,000,000 in this bill plus other line items that together total $285,000,000 attributed in committee debate to the proposed replacement project.

- Deferred maintenance: The Senate established a state facility maintenance fund and provided a $40,000,000 SIF transfer to fund statewide deferred maintenance (excluding higher education).

- Guardianship grants: The committee added $1,000,000 to guardianship grants, bringing the biennial total discussed in committee to $8,100,000; committee members said the program funds county pass-through grants for guardianship services while a new guardianship agency proposal is considered in the House.

Life-education committee and one-time $1 million appropriation

A heavily debated provision in HB1015 would create a “life education” committee and appropriate $1,000,000 (the Senate listed it as one-time funding in section 2) to contract for a statewide public-education campaign about pregnancy and alternatives to abortion. Committee members cited an existing Alternatives to Abortion program administered by the Department of Health and Human Services that has received state and TANF dollars in prior biennia.

Supporters described the funding as one-time contracting money for media and outreach to promote awareness of state programs, tax credits and services that help pregnant women and new families. Opponents warned that using general fund dollars for messaging that may relate to ballot measures raises policy and precedent concerns.

The committee adopted an amendment to change the funding source for the $1,000,000 from general fund to the Community Health Trust Fund to preserve general fund balance; that amendment passed on a committee voice/roll call (record shows the motion passed with 16 yes votes on the amendment to change the funding source). The provision remains one-time funding in the Senate amendment.

Guardian programs and agency transitions

Committee members discussed that guardianship grant funding has historically been passed through counties and that the House had proposed moving administration into a new state agency with new FTEs and other changes. Committee members heard that, if the new agency is created in conference, budgets and administration would be reconciled later; meanwhile, counties will continue to administer the grants in the near term.

State hospital debate and alternate proposals

Senator Mather (Senator Mathern in transcript usage) led extended discussion opposing a full replacement at the cost levels in the bill and offered Legislative Council–prepared amendment language that would instead: (1) direct $25,000,000 to deferred maintenance and upgrades to the existing state hospital main building, and create a multi-branch steering committee to oversee planning; or (2) limit new construction to a $100,000,000 facility with approximately 96 beds and tighter program definitions and oversight. Department of Health and Human Services Executive Director for Behavioral Health Pam Segnus told the committee the design work and preconstruction planning already total roughly $15,500,000 and that the state hospital serves patient groups (including court-ordered patients) not typically served by acute psychiatric hospitals.

Several senators argued for regional behavioral-health investments that emphasize community-based care and for caution on large capital outlays while others said a modern consolidated facility is necessary for patients with long average lengths of stay and complex needs. Senator Mathern’s steering-committee and cost-limiting proposals generated discussion but no final change to the large SIF appropriation before the committee recessed for other floor and conference obligations; members agreed to resume the question on Monday.

Votes at a glance

- Adoption of Senate amendment package (division motion to adopt amendment 2009 to HB1015): motion by Senator Wozniak; second by Senator Dwyer; the transcript records a roll call of ayes followed by the statement “Motion passed fifteen-zero-one.” Outcome: approved.

- Motion to remove Section 19 (motion by Senator Wiese; second by Senator Eberle): recorded outcome “Motion passed 16.” Outcome: approved.

- Amendment changing the $1,000,000 life-education funding source to the Community Health Trust Fund (moved by Senator Magrum; second by Senator Davison): recorded outcome “Motion passed 16.” Outcome: approved.

- Amendment 2011 (Senator Dwyer) to appropriate funds to Legislative Council for voter-measure education: motion recorded and put to roll call; outcome recorded as failed (6 yes, 10 no). Outcome: failed.

Discussion vs. decisions

Committee debate included factual updates from OMB staff about fund balances, detailed line-item explanations from the senator presenting the division amendments, policy-focused remarks on the life-education appropriation and extended technical and policy questions around the proposed state hospital project. The committee made several formal funding source and line-item decisions (see Votes at a glance), but members noted many of these disputes—particularly the state hospital funding level and the guardianship administration move—will be negotiated in conference committees where the House and Senate positions are reconciled.

What remains open

Committee members repeatedly said the large gap between projected spending and revenues means conference committees must resolve many remaining differences. The state hospital funding level, the longer-term administration of guardianship grants, and whether any life-education effort is treated as strictly one-time or converted to an ongoing appropriation were all left for further action in conference or future sessions.

Ending

The committee adopted the Senate division's package and several amendments before adjourning to resume work later; members were told the OMB budget and related treasury items remain subject to conference committee adjustments and additional votes when the panel reconvenes.