Proposal would put $110 million into funds for physician training

The state would transfer $100 million from its general fund to a physician training trust fund and $10 million to a physician training program fund. The program fund would support training for physicians after medical school in rural and underserved areas. The Health Care Authority would run the program fund. Spending from it would require the legislature to set aside money. Both funds would keep their money across fiscal years. The transfers would occur when the act takes effect. If enacted, the act would take effect immediately.

The state investment officer would invest the trust fund's money and transfer an annual share to the program fund. Payments would support physician training in rural and underserved areas. Program spending would still require the legislature to set aside money. The annual payment would equal 5% of the trust fund's average year-end market value over the preceding three calendar years. If the trust fund had existed for fewer than three calendar years, the calculation would use the preceding calendar years it had existed. The investment officer would consult the Health Care Authority's secretary and report on investments quarterly and annually. Payments would occur each July 1 beginning in 2027. The annual investment report would be due by October 1.

The Health Care Authority would receive $8 million from the physician training program fund to support programs at different stages of formal approval. Only physician training programs located in rural and underserved areas would receive this support. Each fiscal year, up to $2.5 million could support programs developing applications for accreditation, the formal approval of a training program. Each fiscal year, up to $500,000 could support programs accredited for less than one year, and up to $1 million could support programs accredited for one year or more. Money left unspent at the end of fiscal year 2028 would return to the program fund. The $8 million would be available for spending in fiscal years 2027 and 2028.