Committee Summary for Fiscal Committee (06/20/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:03:26.560 - 10:02:22 AM	General Working Session	Unclear

Unclear: Chair Information Only00:03:26.560 - 10:02:22 AM; The Chair called the fiscal committee meeting to order for June 20th, 2025, and proceeded with the consent calendar, addressing the acceptance of minutes from the May 16th meeting and moving through the agenda items. The Chair also noted requests to remove certain items from the consent calendar for further discussion.
Unclear: Representative Edwards Information Only00:05:34.880 - 10:04:30 AM; Representative Edwards asked questions regarding a $5 million transfer for nursing homes, inquiring about the percentage of the total annual long-term services support budget, the background and future implications of the transfer, and whether there would be a shortfall in the next budget year.
Unclear: Chris Santelo, Associate Commissioner Information Only00:06:51.360 - 10:05:47 AM; Chris Santelo explained that the $5 million request was for additional funds for nursing facility payments, involving federal matching dollars, county cap funds, and general funds. He detailed the transfer history and projected expenses, indicating that they expected to be within the budgeted realm based on current assumptions.
Unclear: Commissioner Caswell Information Only00:12:32.399 - 10:11:28 AM; Commissioner Caswell discussed ARPA funds, explaining that the spending authority needed to be extended for ongoing projects until December 31st, 2026. He addressed concerns about project completion timelines and the potential return of unspent funds to the federal government.
Unclear: John Skipa, Interim Commissioner of the Department of Corrections Information Only00:15:14.399 - 10:14:10 AM; John Skipa, the interim commissioner of the Department of Corrections, discussed staffing issues, including layoffs and a drop in interest in becoming corrections officers. He mentioned that layoffs were part of the budget process and addressed the impact of collective bargaining agreements on the budget. He also discussed the morale and leadership challenges within the department and the need for a new permanent commissioner to set a new direction.
Unclear: Representative Leechman Information Only00:16:22.880 - 10:15:18 AM; Representative Leechman welcomed John Skipa to his interim role and asked about layoffs within the Department of Corrections, specifically how many had received preliminary notice. Skipa responded that 18 individuals had received notices pending the final budget approval.
Unclear: Senator Gray Information Only00:18:18.960 - 10:17:14 AM; Senator Gray questioned the movement of $10 million at the end of the year and its budget implications, expressing concern about the department's deficit situation and the need for transparency regarding the budget.
Unclear: Representative Edwards Information Only00:20:31.120 - 10:19:27 AM; Representative Edwards asked about strategic leadership and the morale within the Department of Corrections, seeking insights on what might need to happen to improve morale and mitigate operational risks. John Skipa provided a detailed response, discussing the impact of leadership changes, media attention, and budget uncertainties on morale, and outlined the department's statutory and constitutional obligations.
Unclear: John Skipa, Interim Commissioner of the Department of Corrections Information Only00:23:51.600 - 10:22:47 AM; John Skipa continued his response to Representative Edwards, emphasizing the temporary nature of his role and the importance of leaving major changes to the incoming permanent commissioner. He discussed his focus on maintaining day-to-day operations and identifying areas needing attention, and the need for a new vision for the department.
Unclear: John Skipa, Interim Commissioner of the Department of Corrections Information Only00:26:09.600 - 10:25:05 AM; John Skipa responded to a question about the governor's committee on government efficiency, stating he had met with a member and facilitated interviews within the department. He noted that a formal report was still being developed and expressed surprise at the delay in receiving information.
Unclear: Lisa Stone, Director of Finances at the Department of Corrections Information Only00:28:13.520 - 10:27:09 AM; Lisa Stone responded to a question about overtime rates, confirming that under the collective bargaining agreement, uniform officers receive double time for any overtime work.
Unclear: Unknown Information Only00:29:29.360 - 10:28:25 AM; The speaker expressed concern about increasing the state deficit by an additional 1.1 million dollars. They provided figures on the current deficit in the governor's budget (over 80 million), the House budget (147 million), and the state senate budget (closer to the governor's but less severe than the House). They mentioned a lapse deficit of 47 million in the governor's budget and questioned the current lapse deficit, noting an estimate of 111 in the committee of conference report.
Unclear: Unknown Information Only00:30:14.640 - 10:29:10 AM; The speaker discussed two budget items that require new money, totaling 101 million dollars. They mentioned that these items are contractual obligations, but emphasized the need for the fiscal committee to investigate such requests, especially given the existing deficit. They pointed out that the Youth Development Center (YDC) was not fully funded in the current budgets, with 20 million allocated for the first year and a potential 80 million if the property is sold.
Unclear: Unknown Information Only00:31:02.480 - 10:29:58 AM; The speaker noted that the state is expected to pay over 120 million dollars in claims over the next two years, with a specific figure of 26 million mentioned. They stressed the need for severe cuts in the next budget to manage the deficit, acknowledging the worthiness of the two items under discussion but highlighting the necessity for the committee to take its role seriously in monitoring lapses and revenues.
Unclear: Representative Edwards Information Only00:32:15.600 - 10:31:11 AM; Representative Edwards reacted to a senator's comments, suggesting the need for quarterly or semi-annual specific reviews of financial estimates. They criticized the current estimates as unreliable and emphasized the importance of the Health and Human Services oversight committee taking a stronger role in financial management, mentioning a lapse of 11 million dollars.
Unclear: Representative Leechman Information Only00:33:30.880 - 10:32:26 AM; Representative Leechman followed up on comments about budget estimates, focusing on the high cost of treating hepatitis C and cancer among inmates. They questioned why these costs were not better factored into the budget process, given the known issues at the prison.
Unclear: Lisa Stone, Director of Finances at the Department of Corrections Information Only00:34:45.839 - 10:33:41 AM; Lisa Stone explained that the health of inmates is unpredictable over a two-year period, making it difficult to project medical and pharmaceutical costs accurately. She introduced the chief pharmacist to provide more specific details on the issue.
Unclear: Ben Carboni, Chief Pharmacist Information Only00:35:32.880 - 10:34:28 AM; Ben Carboni discussed the challenges in estimating the costs of treating hepatitis C among inmates, noting that many patients leave, get reinfected, and return, necessitating repeated treatments. He also mentioned that treatment failures can lead to more expensive medications.
Unclear: Senator Gray Information Only00:36:35.359 - 10:35:31 AM; Senator Gray moved to approve items 25152 and 25153, which were adopted without opposition.
Unclear: Drew Beamer, Administrator of the Site Evaluation Committee Information Only00:37:21.520 - 10:36:17 AM; Drew Beamer, the administrator of the Site Evaluation Committee, discussed the committee's financing, which primarily comes from applications for new facilities. He noted recent changes in their operational structure.
Unclear: Drew Beamer, Administrator of the Site Evaluation Committee Information Only00:37:21.520 - 10:36:17 AM; Drew Beamer discussed the integration of the Site Evaluation Committee into the Public Utilities Commission, which allowed for the utilization of PUC employees on SEC dockets and enabled him to assist the PUC. He highlighted the positive relationship between the two entities and explained the budget shortfall due to fewer applications for new facilities. He emphasized the significant amount of casework and public engagement he undertakes, which involves answering public inquiries about potential applications and neighborhood developments.
Unclear: Drew Beamer, Administrator of the Site Evaluation Committee Information Only00:38:13.680 - 10:37:09 AM; Drew Beamer continued to discuss how he calculated the time spent between the PUC and the SEC, indicating that the budget request reflects the uncovered SEC portion. He concluded his remarks, and the committee proceeded to vote on the budget item FIS-25150, which was approved.
Unclear: Representative Leechman Information Only00:40:34.240 - 10:39:30 AM; Representative Leechman raised questions about item 25168 concerning the Youth Development Center (YDC) claims administration. He inquired about the role of Verald Dana LLP, hired as a consultant for over $2 million annually, and why such a high amount was necessary.
Unclear: Paige Lauren, Audit Manager Information Only00:41:32.319 - 10:40:28 AM; Paige Lauren explained that Verald Dana reviews every claim sent to the Attorney General's office, determining its next steps and potentially being involved in resolution proceedings. She mentioned that the Department of Justice sets a flat rate for each part of the process Verald Dana is involved in.
Unclear: Jennifer Foley, YDC Claims Administrator Information Only00:42:21.599 - 10:41:17 AM; Jennifer Foley added that Verald Dana had been involved in related litigation and helped set up the claims administration process with legislators. She also confirmed the Attorney General's office's involvement in the processes managed by Verald Dana.
Unclear: Jennifer Foley, YDC Claims Administrator Information Only00:44:26.319 - 10:43:22 AM; Jennifer Foley responded to questions about the administrative costs of the YDC Claims Administration, detailing the number of employees, their roles, and how salaries are established, tied to judicial branch labor grades and steps.
Unclear: Senator Gray Information Only00:46:47.200 - 10:45:43 AM; Senator Gray proposed scheduling the next meeting at the call of the chair due to uncertainties about the budget and potential needs for a meeting in July if a continuing resolution (CR) were to be implemented. He suggested tentative dates in August for planning purposes.
Unclear: Senator Leeman Information Only00:48:00.880 - 10:46:56 AM; Senator Leeman supported the motion to schedule the next meeting at the call of the chair but requested tentative dates for planning personal activities, suggesting the second or third Friday in August.
Unclear: Mr. Kane Information Only00:49:12.319 - 10:48:08 AM; Mr. Kane discussed the implications of a continuing resolution, noting that departments often request permissions to use funds from other sources during a CR. He mentioned the difficulty in predicting meeting needs due to the budget's status and the closure of the legislative office building, supporting the call of the chair for flexibility.
Unclear: Senator Gray Information Only00:50:03.040 - 10:48:59 AM; Senator Gray concluded the discussion by affirming the motion to schedule the next meeting at the call of the chair, with tentative dates in August for planning. He also mentioned that if a CR were enacted on top of the SHM, the committee might not reconvene until September due to summer plans.