Health Priorities Impacted by Governor’s Directive to Disregard Budget Language

In May 2023, in his review and approval of the FY 2024 budget, the Governor issued guidance directing state agencies to disregard some budget language and to consider that language non-binding. In total, the Governor is directing state health agencies to disregard about $104 million in funding along with seven additional budget actions with no associated FY 2024 funding (also known as ‘Yes’ line items). These disregards are a small proportion of each Department’s budget but represent significant changes to address pressing needs like workforce gaps. For DCH, most of the disregards impact Medicaid provider reimbursement rate increases—from home and community-based services to obstetrics and gynecology rate increases. Due to concerns about a Medicaid base funding deficit, the Governor has redirected that funding to be used instead for Medicaid spending and growth.

For DBHDD, much of the disregarded funding for annualizing NOW/COMP waiver slots (to expand home- and community-based services and supports for individuals with disabilities) and for behavioral health crisis centers is still available for agency use with slightly modified language. However, about $17 million in funding for various purposes—from increasing salaries for state psychiatric hospital nurses and health aides to supporting the 988 suicide and crisis lifeline—has been entirely disregarded.

Source: Office of the Governor. HB 19 – FY 2024 Budget – Line-Item Veto and Disregard Letter and Statements, May 5, 2023.