LFO recommends $1.86 billion (total funds) for DAS; work session highlights Workday reorganization, ARPA oversight, cyber and risk packages

The Legislative Fiscal Office recommended budget for the Department of Administrative Services was presented to the Joint Committee on Ways and Means, Subcommittee on General Government during a May 29, 2025 work session. Kim (LFO analyst) read the LFO recommendation and walked members through a 61‑page report, saying the LFO recommended budget “is $1,863,814,003 total funds” and calling attention to embedded items that were included in the recommendation.

Kim identified several items the committee asked to note: $6.3 million in general fund for Court‑Appointed Special Advocates (CASA); funding to support Oregon Public Broadcasting’s emergency broadcast infrastructure; lottery funds for county fairs and debt service on previously issued bonds; and a stated $22,283,616 general fund for settlement payouts and state legal costs tied to Oregon’s wrongful conviction compensation program. Kim said $18.3 million of that amount was for payouts and that $8 million was for state legal costs related to statutes enacted by SB 1584.

Workday reorganization: Kim summarized multiple “Workday” packages that centralize Workday payroll and HR functions into a new Workday Oregon division. The package transfers positions and funding from the chief operating office, chief financial office and chief human resource office into the new division and authorizes additional positions. The LFO summary reported the new division will have an approximate budget of $42,142,472, 50 positions and 47.6 FTE and cited a $13,000,020 stabilization amount intended to align pay practices with the Workday payroll system and address implementation issues. Kim said the package authorizes a mix of permanent and limited‑duration positions and centralizes administration of the Workday system across DAS.

ARPA oversight and federal funds: Kim described a package (Package 121) that continues limited‑duration positions to oversee and report on Oregon’s American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund grants; she read an amount for continued federal funding and described a grant performance period that runs through Dec. 31, 2026, with final reports due April 2027. Later, Renee Klein of the DAS Chief Financial Office told the committee that about $163,911,525 in ARPA funds remained outstanding in the 2025–27 biennium and emphasized that the state has the funds obligated and under its control; she added that the funding is largely obligated to projects and that the program uses a reimbursable‑grant model (the recipient expends funds and DAS reimburses).

IT, cyber and geospatial packages: The LFO recommendation includes cybersecurity lifecycle replacement funding and a package to contract for Web application firewalls for public‑facing applications. Kim also highlighted a geospatial imagery and data program (Package 161) that would provide funding for statewide GIS data and services that support agencies and local governments.

Risk fund and insurance: The LFO recommendation includes a revenue‑and‑assessment change to strengthen the DAS risk/insurance fund. Kim described a revenue‑only package to increase risk charges and to establish at least one risk claims position to handle workload; the report text read that the recommendation “increases the DAS risk charges by 939,465,000” and authorizes additional limitation to improve the funded status of the insurance fund. Committee members pressed for a deeper interim review of the risk fund’s solvency and how increases affect agency assessments; Kim and DAS staff said the recommendation moves the fund toward improved funded status but is not a full actuarial funding in one biennium.

Other highlighted items: Kim called attention to funding for the Oregon Historical Society, Oregon Public Broadcasting, county and state fairs, debt‑service lottery funds, and a $300,000 package for Mill Creek Corporate Center planning and marketing. The LFO read a package (1 52) that appropriates $22,283,616 general fund for wrongful conviction claims and related legal costs under the cited statutes.

Committee decisions and motions: Following presentation and questions, the subcommittee voted by unanimous consent to adopt LFO’s recommendation and the dash‑2 amendment and to move HB 5002, as amended, to the full Joint Committee on Ways and Means with a do‑pass recommendation. The motion to move the bill was made and approved on the record; Senator Anderson (named by the committee for carry) agreed to carry the bill to the full committee.

Committee follow‑up: Members asked staff to provide additional interim briefings on (1) the state’s other‑funds portfolio (the committee requested a chart showing sources and purposes of other funds), (2) the annual comprehensive financial report (ACFR) and the Financial Data Transparency Act requirements, (3) the solvency and assessment methodology for the state risk/insurance fund, and (4) the gas‑tax/other revenue streams that fund ODOT personnel impacted by the DAS compensation report. Kim and DAS agreed to schedule informational items for the interim.