Bill Description: House Bill 685 would create a "Medicaid budget stabilization fund," transfer $12 million from the cooperative welfare fund to the Idaho millennium income fund in FY25, and transfer any unobligated general fund moneys remaining in the cooperative welfare fund to the Medicaid budget stabilization fund.
Rating: -2
Does it create, expand, or enlarge any agency, board, program, function, or activity of government? Conversely, does it eliminate or curtail the size or scope of government?
House Bill 685 would create Section 56-270, Idaho Code, to establish the "Medicaid budget stabilization fund," which would reside in the state treasury.
The bill also sets up a number of financial transfers between funds.
The bill says, "By the close of fiscal year 2025 or as soon thereafter as practicable, a total of twelve million dollars ($12,000,000) of all unobligated general fund moneys remaining in the cooperative welfare fund from appropriations made to the division of medicaid shall be transferred to the Idaho millennium income fund established in section 67-1806, Idaho Code."
Additionally, it says, "Beginning in fiscal year 2024 and each year thereafter, the remainder of any unobligated general fund moneys remaining in the cooperative welfare fund from appropriations made to the division of medicaid shall be transferred to the medicaid budget stabilization fund following the department of health and welfare's year-end reconciliation."
Creating a new fund and transferring money to it — especially when it is dedicated to perpetuating wealth redistribution — expands government.
(-1)
Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?
The bill says, "Moneys in the medicaid budget stabilization fund shall consist of such transfers and such other moneys that may be provided by legislative appropriation" and "shall be expended solely for the purpose of meeting general fund revenue shortfalls or covering unanticipated expenses for services administered by the division of Medicaid."
All spending to facilitate wealth redistribution is inherently objectionable, and shortfalls or unanticipated expenses related to Medicaid should be leveraged to cut services and reduce spending. The state should not backfill the shortfall with more fund transfers and appropriations.
It should also be noted that Idaho’s various budget stabilization funds are projected to have a year-end balance of more than $1.2 billion, including more than $800 million in the primary stabilization fund. This is an excessive reserve balance. Most of this money should be dedicated to tax relief, not hoarded for future increases in government spending. Should a future economic downturn result in reduced revenue for the state, the appropriate solution would be belt tightening and reform — especially for Medicaid — not relying on excessive cash reserves to forestall spending cuts.
(-1)
