The Senate Ways & Means (W&M) chair's supplemental operating budget proposal would increase NGFS+ spending by $48.8 million. That includes a net of $168.5 million in maintenance level increases (the costs of maintaining current services) and a net of $119.7 million in policy level reductions.

Some notable increases at the policy level are:

• $16.7 million for the Health Care Authority to restore waiver savings that weren't realized,
• $32.2 million for Moore v. HCA settlement costs,
• $15.0 million for an anticipated increase in the number of tort claims against the Department of Corrections,
• $23.4 million in transitional support for Western State Hospital,
• $26.4 million for individual provider overtime,
• $14.1 million for mental health community diversion programs,
• $6.2 million to reestablish public charter schools, to be paid for with the opportunity pathways account (which is part of NGFS+),
• $14.0 million to maintain the state need grant's 2015 service level and cover increased costs for the biennium, and
• $8.1 million to backfill tuition at the public colleges and universities related to the College Affordability Program.

Policy level reductions include:

• -$75.4 million from merging the Law Enforcement Officers' and Fire Fighters' Plan 1 and Teachers' Retirement System Plan 1 ("Merger of the plans would increase economies of scale to reduce state contributions with no effect on retiree benefits"),
• -$31.9 million from using marijuana tax dollars in lieu of the general fund-state for community health centers and low-income health care,
• -$25.5 million from moving the Categorically Needy Blind Disabled and Community Options Program Entry System populations from managed care to fee-for-service, and
• -$43.6 million from using mental health Regional Support Network reserve funds.

The chart below compares the policy changes in the W&M chair's proposal to those in the budget that was passed by the House Appropriations committee on Tuesday.

At the maintenance level, the two proposals are $50.7 million apart. The main reason for this net difference is that the W&M chair reduces maintenance level in public schools by $52.5 million. Apparently this is because the enacted 2015-17 budget mandated that school districts use funds for K-3 class size reduction only for K-3 class size reduction. Some districts chose not to; those unused funds must be returned to the state by the end of the biennium. The W&M chair captures this now as reduced maintenance level.