JBC approves lease-termination funding; committee splits moving costs between general and cash fund

The Joint Budget Committee approved appropriations tied to an early termination of a private lease and related moving costs, adopting staff recommendations after discussion about fund sourcing, long-term savings and confidentiality.

Tom Dermody, Joint Budget Committee staff, summarized that the request involved roughly $700,000 in general-fund support to allow early termination of a private lease and consolidation of a state agency into state-owned office space. Dermody told the committee staff—s modeling showed long-term savings of roughly $200,000–$300,000 in total funds over a roughly 3–4 year period, with approximately 75% of that savings representing general fund reductions.

Committee members pressed for details about which state agency was moving. "I've been asked by the department to keep that information," Mr. Germany, Joint Budget Committee staff, said. He added that staff could provide the agency name to a member offline but the department asked that it not be discussed publicly.

Senator Kirkmeyer also asked whether the committee needed an executive session. Mr. Germany replied the information could be provided offline and an executive session was not necessary.

Committee members discussed whether moving costs and other items should be paid from the affected department—s cash fund or by general fund. Dermody explained the proposed split mirrored the current cash-fund/general-fund split used for lease payments (approximately 73/27). After further back-and-forth and requests to verify cash-fund capacity, the committee agreed to a staff motion specifying that $40,910 would come out of the department—s cash fund regarding the R3 private-lease early termination and that the $651,279 appropriation for lease termination would be made to the Office of the State Architect. The committee recorded the vote as 6-0 on the motion to source the $40,910 from the department—s cash fund.

Committee discussion also noted that a portion of the cash fund balance (about $595,000) previously identified as excess would be transferred into the general fund under other transfer legislation, and that routing the amounts through the transfer or appropriating them directly would have similar net effects. Dermody said staff aimed to keep drafting and appropriation mechanisms straightforward.

The committee did not specify the name of the affected agency on the public record at the meeting; staff offered to provide that information to members offline.