Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Budget topic
No spam. Unsubscribe anytime.
Committee debates governor's office budget as analysts flag rate-driven increases
Summary
The House Appropriations & Finance Committee heard competing recommendations for the Office of the Governor (agency code 356). LFC recommended holding most costs at FY25 levels while the executive recommended funding the full agency request, driven by higher GSD and DoIT rates and an increased contractual services request for legal review.
The House Appropriations & Finance Committee reviewed the FY26 budget request for the Office of the Governor (agency code 356), where analysts said the executive recommendation is higher than the Legislative Finance Committee's (LFC) proposal.
LFC analyst Emily Hilla told the committee "the executive recommendation is 4.1% higher than the LFC recommendation in general fund revenue," adding the executive plan "fully fulfills the agency's request" while the LFC sought a budget commensurate with FY25 spending.
Why it matters: The bulk of the difference is in personnel and contractual services. DFA and the governor's office explained the executive request anticipates higher insurance premium and DoIT rate charges and asks for additional contractual funds for legal services. The LFC said prior reversions and vacancy patterns support a more conservative approach.
Most important facts: Hilla and DFA staff identified the main drivers: a 3.4% increase in personal services and employee benefits in the executive recommendation (largely to cover GSD insurance and related liabilities), a 26.8% increase in contractual services to allow for more legal research, and a 3.6% rise in "other" costs because of higher DoIT rates. The LFC analyst pointed out the agency reverted approximately $510,000 in FY24 personnel funding and estimated a funded vacancy offset if the LFC recommendation is adopted.
Agency response and staffing: Cindy Montoya, the governor's chief financial officer, said vacancies that existed in FY24 have largely been filled and that the agency still has two active recruiting positions. She told the committee that if the LFC recommendation is adopted and staffing levels remain at the newly filled level, the agency would absorb a liability to GSD of roughly $202,400.
Committee action: The committee's vice chair moved to adopt the executive recommendation during the hearing. The transcript records roll-call discussion and named votes (Representative Blanca and Representative Duncan recorded as "No"; Representative Silva recorded as "Yes"). The motion was carried and the committee adopted the executive recommendation for agency 356.
Where things go from here: Committee leadership asked analysts to track any additional contractual work and to coordinate closely with the LFC to monitor the new contracts and staffing changes the governor's office may undertake.
Ending note: The hearing emphasized the tension the committee faces between funding agency requested services and holding to recent spending patterns; staff and members said they will continue to monitor contract activity and the impact of DoIT and GSD rate changes.
