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Senate hears Department of Revenue budget; senators press OTS charges and staffing at Alcohol and Tobacco Control
Summary
The Senate Finance Committee reviewed the Department of Revenue's FY26 budget, questioned large OTS/HOST charges for its tax software and hosting, and discussed Alcohol and Tobacco Control staffing and call‑center arrangements.
Senate Fiscal Services presented the Department of Revenue’s FY26 budget to the Senate Finance Committee and senators used the hearing to press the department on high interagency charges for technology and on staffing levels at the state Alcohol and Tobacco Control unit.
Chaz Nicholson of Senate Fiscal Services outlined the department’s structure, budget history and the funding model adopted after 2020. He said the department retains a flat 1% fee on several tax bases that now accounts for a sizable share of its fee revenue and noted provisions in House Bill 1 that allow the department to carry forward a $50 million fund balance for operating cash. Nicholson said the department’s FY26 recommended budget is about $134.8 million with roughly 723 authorized positions and noted an increase driven in part by payments to the Office of Technology Services (OTS).
Secretary of…
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