Gov. Kehoe Signs Budget, Vetoes Some Health Care Spending

Gov. Mike Kehoe on Monday signed the state’s $50.8 billion SFY 2026 operating budget. Due to anticipated budget shortfalls beginning in SFY 2027, the governor vetoed nearly $300 million in general revenue spending approved by the General Assembly that was not included in or exceeded his budget recommendations.

General revenue funding for the Nurse Education Incentive Program decreased from $5 million to $1 million. Funds to reimburse hospitals for extended inpatient care provided to developmentally disabled clients of the Department of Mental Health were reduced from $8.7 million to $5.5 million, while still reflecting an increase over the current fiscal year. An appropriation to fund additional Medicaid waiver slots for developmentally disabled individuals also was reduced by $33 million. 

The remainder of MHA’s budget priorities remained intact, including enhanced reimbursement for inpatient psychiatric care, reimbursement for extended hospitalizations of patients with behavioral health disorders and funding for the ACE Kids program.