The Alabama Department of Public Health’s director said Tuesday that the increase in his department’s budget is due to increased enrollment in the Children’s Health Insurance Program (CHIP) and increased costs for the state.
Alabama state health official Dr. Scott Harris made the remarks during questioning by Sen. Greg Albritton (R-Atmore), chairman of the Senate Finance, Taxation and General Fund Committee. Albritton sought clarification about how federal and state funds are being used, especially with the fiscal year 2026 budget expected to increase by about $42 million, or 32 percent.
“It’s heading in the direction we expected, which is a scenario of rising capital needs and collapse,” Albritton said.
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Of the $42 million increase, $34.6 million comes from an increase in state contributions to the Children’s Health Insurance Program (CHIP).
Harris said CHIP provides low-cost health insurance to children whose families earn too much to qualify for Medicaid, but enrollment and costs are rising. Pandemic-era federal regulations barred states from cutting Medicaid insurance in exchange for increased federal funding. As a result, children who lost CHIP insurance were enrolled in Medicaid and stayed there until the cutoffs began in June 2023, Harris said.
Harris also noted that the federal government changes CHIP’s matching rate every year, and it’s gone up this year after being cut and frozen for three years during the pandemic.
“The increase in funding is almost entirely explained by the CHIP match,” Harris told Albritton.
“I’m not criticizing the plan at all. I was just wondering yesterday where the money is going to come from,” Albritton replied, adding that for the past few years the program has been 100 percent funded by the federal government.
The state health commissioner also explained the various services ADPH provides, including disease control, emergency response and testing of health care facilities. Syphilis epidemic in newbornsCongenital syphilis is a serious and potentially life-threatening infection in newborns whose mothers have been infected and not adequately treated. ADPH estimates that cases of congenital syphilis will increase tenfold, from four cases in 2012 to 42 cases in 2022.
Harris also said she is leading a pilot program of perinatal care in underserved counties that is scheduled to begin in October, a pilot program proposed by Gov. Kay Ivey in 1990. February 6 State of the State Speech.
Harris also cited the department’s efforts to curb substance use disorder by providing county health departments with naxalone, an antidote to opioid overdoses, and said the department is closely monitoring an outbreak of avian influenza that is affecting dairy farms in some parts of the state.
The hearing also included presentations from the Alabama Department of Veterans Affairs (ADVA) and the Legislative Services Agency (LSA). ADVA outlined its work, describing its role in supporting veterans through education programs, long-term care homes and the Veterans Services Office. The agency operates on a budget of approximately $230 million, of which 46% comes from state funding and 54% from federal funding.
LSA Deputy Director Kirk Fulford spoke about the state’s fiscal outlook. He cautioned that future revenues from interest on the state’s deposits are unpredictable, but said the outlook for next year’s General Fund budget is bright. Fulford said the state already has enough money in the General Fund to meet next year’s payment obligations.
“The projections are that the numbers are stabilising in terms of growth. The growth numbers will come down after being sky rocketing the last couple of years,” Mr Fulford said.
Albritton said state agencies’ budget deliberations will likely continue until August.
“We’re trying to look at what we can do as quickly as possible and plan the best way to be fully prepared, make sure you fasten your seat belts and don’t get too shaken up,” Albritton said during a break in the hearing.
The Alabama Department of Law Enforcement and the Alabama Department of Mental Health are scheduled to release budget projections on Wednesday.
