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Committee asks staff to analyze attorney-general costs across the department after ISF change
Summary
Legislative staff discussed the state Attorney General internal-service fund for legal services and rising legal costs in the Department of Health and Human Services, especially for DCFS; staff will work with ORS, AG's office and the department and return with options in October.
Committee staff told the Social Services Appropriations Subcommittee that changes to how the attorney-general's office is funded have shifted legal-cost budgeting to agencies and that the Department of Health and Human Services is seeing increased legal-service expenditures, particularly for the Division of Child and Family Services.
Staff summarized the background: a 2016 legislative audit led to a funding change (HB351) and creation of an internal-service fund (ISF) so agencies receive appropriations and pay the Attorney General's Office for legal services. Staff said DCFS has large exposure to AG costs because many matters require court representation, and the agency has experienced recurring supplemental requests related to legal spending. The committee requested staff work with the department and the Attorney General's Office to better understand historical AG costs, drivers of recent increases, and whether budget practices could be adjusted to provide earlier predictability. Staff said it will return in October with more detailed findings and potential recommendations.
Why it matters: legal costs are a material, recurring element in agency budgets; better predictability and transparency about AG costs could reduce midyear supplemental requests and help the legislature plan appropriations.
