Nathan White, chief financial officer for the Department of Health and Human Services, told the committee the department currently projects "just shy of a $20,000,000 total general fund lapse." White explained HHS budgets are difficult to project because much of the agency budget is driven by utilization rather than personnel, and HHS represents a large share of the statewide operating budget.

White said HHS has roughly 3,200 full-time authorized positions with about 400 unfunded in the current biennium, which contributed to a roughly $30,000,000 biennial general-fund reduction when paired with federal matching factors. He described monthly rollups and the many factors that make lapses fluctuate, such as contract terminations or retirements that trigger large payouts.

Why it matters: the department's projected lapse affects the state's surplus statement and pressure on the biennial budget; White said statewide assumptions place total lapse near $39 million but HHS traditionally accounts for about half of that. Committee members and the commissioner discussed how back-end mandated budget cuts interact with lapse figures and near-term revenue uncertainty.

What the department will do: White said staff analyze accounting-unit spending each month and will continue to brief the committee; the department also prioritizes hiring for direct-care roles to protect critical services.