LFO recommends $23M budget with staffing and IT upgrades for Contractors Board

The Oregon State Legislature's Joint Committee on Ways and Means Subcommittee on General Government convened on April 16, 2025, to discuss a significant budget recommendation aimed at modernizing the state's construction contractors board. The Legislative Fiscal Office (LFO) proposed a budget of $23,370,802, which marks an 8.7% increase from the current service level budget. This budget is designed to enhance system capabilities and address staffing needs within the agency.

A key component of the budget is the allocation of $1.5 million to replace the agency's outdated 30-year-old licensing system. This initiative includes funding for a part-time position to oversee the transition and an additional $35,644 to migrate IT infrastructure to the state data center. These changes are expected to streamline operations and allow IT staff to focus on the modernization efforts.

The budget also addresses personnel costs, with $337,949 earmarked for overtime, temporary staffing, and pay differentials. This funding is crucial for maintaining adequate staffing levels as the agency undertakes these significant changes.

In addition to the budget discussions, the committee reviewed a proposed fee increase for contractor licenses. The board has recommended a 75% increase in the licensing fee, raising it from $325 to $400 for a two-year license. This adjustment is projected to generate approximately $3.4 million in revenue for the 2025-2027 biennium.

The meeting concluded with a motion to approve the budget recommendations, which aim to enhance the efficiency and effectiveness of the construction contractors board, ultimately benefiting contractors and the broader community in Oregon. As the state moves forward with these initiatives, residents can expect improvements in service delivery and operational transparency within the agency.