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Legislators weigh transfers to shore up Workers' Compensation fund as vacancies persist
Summary
The Appropriations & Finance Subcommittee reviewed the Workers' Compensation Administration budget and debated one‑time transfers to replenish a depleting fund, differences between the LFC and executive operating recommendations, and the agency's staffing and contract needs. The committee adopted the LFC recommendation by unanimous voice vote.
Madam Chair and members of the subcommittee heard Tuesday that the Workers' Compensation Administration (WCA) is drawing on fund balance to cover operations and needs a one‑time infusion to avoid running low.
LFC analyst Rachel Mercer Garcia told the committee the WCA's primary revenue is a quarterly assessment first set in 1993 of $4.30 per employee, and that in recent years expenditures have grown faster than revenue. The mismatch, she said, means the fund balance is “quite low” and both the executive and LFC budgets propose a one‑time transfer to stabilize the account.
The WCA's director, Heather Jordan, told legislators the agency now has about 14 vacancies—roughly an 11% vacancy rate—and has exercised its 5% BAR authority to cover salary and contractual increases in recent years. Jordan said the agency has prioritized filling field‑office ombudsman roles and that pay adjustments in recent years increased applicants per posting from handfuls to “30 to 40 applicants,” but limited funding keeps many positions vacant.
The two budget proposals differ modestly. The executive recommended a $5 million supplemental transfer to the WCA fund; LFC recommended a $6 million fund transfer in the base bill. The LFC operating recommendation was about $111,000 lower than the executive overall, including roughly $99,000 less in personnel so the budget would fully fund the agency’s existing 108 filled positions but restrict new hires. Both recommendations reduced an annual transfer the WCA historically made to Workforce Solutions (for apprenticeship funding) down to $750,000 because of the lower fund balance.
DFA analyst Sky Stone described the executive vs. LFC split on nonrecurring funding: the executive proposed a $5 million supplemental while LFC proposed $6 million. Mercer Garcia explained the technical distinction: an executive supplemental typically allows spending within the fiscal year, while a fund transfer in the bill is a one‑time replenishment of the fund balance.
Committee members pressed Jordan on how vacancies affect operations. Jordan said the unfilled Albuquerque positions have included deputy director, bureau chief, IT and clerical roles; field offices are prioritized for staffing and managers cover regional outreach. Representative Luhan asked about the transfer to Workforce Solutions and Mercer Garcia explained that transfer history and the current recommendation to scale it back to $750,000 were intended to preserve fund balance.
The subcommittee adopted the LFC recommendation for the WCA operating budget by unanimous voice vote with no recorded objections.
