The end to the federal emergency declaration during the COVID-19 pandemic means Colorado’s current state budget is in for some significant adjustments, including overall savings of $15 million thanks to decreased enrollment in Medicaid.

On Tuesday, House lawmakers broke into caucuses to review 25 supplemental bills for state agency budgets, along with 11 other measures on specific programs.

The Department of Health Care Policy and Financing saw the largest decrease in its appropriation, totaling around $81.6 million, which was attributed to reductions in Medicaid caseload. The decreased enrollment is due to the end of the federal pandemic emergency designation.

Overall, the department sought a $135.5 million reduction, the largest of any state agency, as it looks to have a lower caseload and fund sources per capita in the new budget year.

During his review of the Department of Public Safety budget, Rep. Rick Taggart, R-Grand Junction, who represents the Republican caucus on the Joint Budget Committee, said he is “angry and frustrated” over the costs of dealing with the southern border crisis.

The public safety department wants an additional $9.9 million “to provide grants to community-based organizations providing services to people migrating to Colorado.”

Taggart said he believes the costs to deal with immigration issues are considerably higher than the request from the public safety department, adding he is frustrated with the lack of response from the federal government.

The department is also seeking $7.5 million to retest 3,000 DNA samples, the result of “anomalies” found in the work of a former CBI staffer.

The Department of Education, meanwhile, will see a cut of $24 million, due to higher contributions totaling $85 million from property taxes. But Taggart warned the costs tied to immigrant children coming into Colorado from the southern border will drive higher enrollment costs in the future.

Who is seeking more funding?

The Department of Corrections is seeking $15 million more for its 2023-24 budget, with almost $10 million needed for contract medical workers and additional medical caseload.

The Joint Budget Committee narrative pointed out the agency believes it will need an additional 356 beds by the end of the fiscal year, which ends on June 30. The additional cost, about $3 million, will cover 35 full-time equivalent staffers, addressing a long-standing vacancy problem in the public prisons.

The narrative noted staffers are receiving $1,000 monthly housing stipends at prisons experiencing the worst shortages. About 156 prison beds will be added at the Limon facility, and 200 prison beds will be added at the Trinidad facility.

That state will save an almost equal amount, about $3.5 million, for 286 fewer beds at the Buena Vista and Delta correctional facilities.

But Taggart raised some of the same issues that previous budget writers have had over a lack of good data about staffing, beds, and overall transparency by the department.

“I have much bigger concerns about how this is being managed,” he said.

The largest increase in the supplemental budget requests went to the Department of Human Services at $64.4 million.

Most of that is to maintain staffing and beds at the state’s mental health facilities ($46 million), plus funding for 101 more beds at Fort Logan, Pueblo and private hospitals.

A consent decree from the federal government on mental health resulted in costs to the state of about $12 million per year, Taggart noted.

The lawmaker said this raises concerns about staff vacancies and compensation. He said the state could raise the compensation for state nurses by 70% and save money on what it spends on contract nurses.

“I don’t disagree the department needs more money” to bring down the waitlists, but the agency continues to have “long staff vacancy rates,” Taggart added.

The supplemental bills were approved by the House Appropriations Committee on Tuesday morning and could be ready for review by the full House as soon as Wednesday. Once completed in the House, the package will head to the state Senate.