Note: This year IFF rated maintenance bills according to a more refined system. This is an enhancement bill, and will be rated as a standalone bill. IFF will only consider enhancement line items in these ratings. This means that FTP reductions passed in maintenance legislation will not be evaluated here, among other things.
Bill Description: Senate Bill 1429 is an enhancement of $7,558,200 and 15.00 new full-time positions for the Department of Health and Welfare (DHW) for the Divisions of Mental Health Services, Psychiatric Hospitalization, and Substance Abuse Treatment and Prevention for fiscal year 2027. This legislation appropriates a total of 145,568,700 and 689.39 full-time positions to the agency.
Rating: -4
Is the continuation or growth in ongoing spending, if any, inappropriate for the changes in circumstances, scope of the agency, or current economic environment? Conversely, is the continuation or growth in ongoing spending appropriate given any change in circumstances or economic pressures?
This legislation authorizes an ongoing spending enhancement for these DHW Divisions of $6,465,000, an increase from last year’s (FY26) decrease in ongoing spending of $6,058,300. FY26’s ongoing spending is wrapped into FY27’s base increase, making ongoing spending especially important to scrutinize. Volatility in these increases (or decreases) is to be expected, and makes discernment on the propriety of new spending imperative.
This ongoing expenditure likely consists of several enhancements. The first is a net zero reduction for a clinical transfer to Juvenile Corrections (327,000 GF). The second is Restoration of Funding and FTP that was made onetime in FY26 and IBHP grant increases ($6,295,700 G/FF). The final non-zero enhancement is increased funding for the Allumbaugh House ($496,300 DF). First, the restoration of funding is unwarranted, especially in a deficit year. The Allumbaugh House general fund to dedicated fund shift is part of an increasingly problematic trend of moving expenditures off the general fund, making the general fund budget appear to grow less.
(-1)
Does this budget incur any wasteful spending among discretionary funds, including new line items? Conversely, does this budget contain any provisions that serve to reduce spending where possible (i.e. base reductions, debt reconciliation, etc.)?
This legislation authorizes onetime spending for these DHW Divisions of $1,093,200, adding additional expenditures after last year’s (FY26) onetime spending of $6,319,700. Onetime spending is often even more volatile than ongoing spending, which is to be expected due to the onetime expenses generally being utilized for projects or capital outlay. This also calls for special scrutiny and discernment.
There are two onetime enhancements. The first is a budget restoration for Mental Health Services ($777,100 GF) and the second is Replacement Items (316,100 DF). Almost all agencies faced the additional 2% JFAC holdback, and agencies asking for exemptions or restorations do a disservice to agencies that accepted the entire 5% holdback.
(-1)
Does this budget perpetuate or expand state dependence on federal dollars, thereby violating principles of federalism? Conversely, does this budget actively reduce the amount of federal dollars used to balance this budget?
This legislation appropriates $3,102,300 in new federal enhancements to the agency for replacement items and the above mentioned grants. This represents a commitment to continued reliance on borrowed federal dollars, deepening the dependence on the federal government and violating the principles of federalism.
Note: The overall reduction is due to the IBHP State Hospital Fund Adjustment, and is a technical accounting correction. The Fund is not actually receiving less federal money.
(-1)
Does the budget grow government through the addition of new, objectionable, permanent FTPs or through funding unlegislated efforts to create new or expanded existing programs? Conversely, does this budget reduce the size of government staff and programs except where compelled by new legislation?
This legislation adds 15.00 new FTP for the Restoration of Funding and FTP for Mental Health Services. Hiring should be curtailed, especially so in a deficit year.
(-1)
