Senate panel hears General Services request to shore up facilities staffing, pilot building-use fees and cover rising liability payouts

Acting General Services Cabinet Secretary Anna Silva told the Senate Finance Committee that the General Services Department (GSD) is seeking increased recurring funding chiefly to preserve staffing levels in its facilities management division and to cover settlement costs in the agency’s risk management program.

Silva said the department’s total budget is about $204,000,000 and that the Legislative Finance Committee (LFC) and executive budget recommendations differ by a “very small” amount — roughly $400,000 to $451,000 depending on which line is compared. “Starting on page 2: 88% of the general services department's budget is enterprise funds. The only division that is 100% general fund is the facilities management division,” Silva said.

The request is aimed primarily at personnel. Silva said the department seeks to convert 26 two‑year term positions — which support capital projects including a forensic laboratory, a metro facility for DPS and veterans’ cemeteries — to permanent positions before they expire June 30. “Those positions are so important because they support all of our capital projects,” Silva said.

Why it matters: committee members pressed the department on whether the problem is lack of applicants or lack of funding. Silva answered that the constraint is funding: the department does not have enough money to hire additional custodians, maintenance workers and landscapers needed to operate newly completed and newly acquired state facilities.

Liability fund pressure: Silva and committee staff described growing settlement costs in the public liability fund. The fund paid about $32,000,000 in claims for the first half of the year; she said “unforeseen settlements” (so‑called ‘‘shock losses’’ defined in the discussion as settlements over $500,000) accounted for roughly $12,000,000 — about 38% of the paid claims. Committee analysts told senators the LFC recommended a recurring, Section 8 appropriation of $17,000,000 and other adjustments that would put roughly $22,000,000 into the fund under the LFC package; the department’s executive request included $50,000,000 for risk management to cover projected liabilities. Silva said the open claims inventory includes 2,639 unresolved claims and that the fund balance and agency revenues make the shortfall a “moving target.”

Pilot building‑use fees: LFC staff noted the recommended budget includes $169,200 in other state funds to test current statutory authority allowing the department to charge building‑use fees to agencies that occupy state buildings. The pilot would reuse rental dollars already in agency bases to fund a building‑use fee in a new state‑owned building that will house an agency previously in leased space.

Other items discussed: senators asked about an aviation request — the department has two aircraft and the agency sought a third aircraft and a $15,000,000 appropriation to add a jet to the fleet. Silva confirmed all state aircraft are available to the governor; the additional jet would likewise be available. Senators also reviewed a deficiency the agency ran in personnel code P608 and asked staff to confirm projected personal services totals and vacancy counts. LFC staff noted the facilities management personnel request raised the division’s projected FY26 personal services from about $14,000,000 to $15,700,000 in the agency request, with the LFC recommending roughly $14,000,000.

What was not decided: committee discussion here was informational; no formal committee vote or final appropriation was recorded during the exchange. Senate members asked for additional detail and for staff follow‑up calculations on the public liability fund shortfall before any final appropriation decision.

Ending: Silva closed by asking senators to consider the executive recommendation’s larger risk‑management appropriation and to preserve the 26 term positions as permanent staff so the department can maintain services to new state facilities.