DAS presents HB 5002 budget asks including $22.3 million wrongful-conviction pass-through and $15.5 million deferred maintenance

The Joint Committee on Ways and Means Subcommittee on General Government held an informational hearing on HB 5,002 on March 5, 2025, where the Department of Administrative Services (DAS) summarized the agency's budget outlook and specific policy option packages.

DAS Deputy Director and Chief Administrative Officer Debbie Dennis told the committee the governor's recommended DAS budget is largely steady compared with the current biennium but includes several notable adjustments tied to expiring ARPA funds and a set of POPs under consideration. "The value of this POP is $22,300,000. DAS covers the legal fees and passes through the settlement fees over to DOJ," Dennis said, referring to a request related to wrongful-conviction settlements.

The budget picture and why it matters

Dennis said DAS's core operating revenue is principally other funds (about 48 percent), derived from agency assessments and fees for service, while lottery, federal and general funds are mostly pass-throughs. She said the apparent declines on some lines reflect the phase-out of ARPA funding rather than permanent program cuts.

Key POPs and requests

- Wrongful-conviction pass-through (POP 152): Dennis said the POP has a total value of $22.3 million to cover legal fees and settlements passed through to the Department of Justice; DAS requested $7.5 million in an early-session bill and said it is still assessing whether that will reduce the total need. The committee heard DAS has not yet received all information needed to confirm the final net requirement.

- Deferred maintenance (POP 181): DAS requested $15,500,000 for a slate of projects described as roof replacements, building envelope work, lighting and electrical upgrades for energy efficiency, elevator replacements/upgrades, and HVAC controls.

- Electric vehicle infrastructure (POP 141): DAS said statute includes mandates to begin standing up EV infrastructure for the state fleet; DAS described the POP as funding initial steps for infrastructure but deferred technical details (for example, charger compatibility) to follow-up with agency staff.

- Workday implementation and staffing (POP 155 and related): Dennis said DAS is seeking to convert several limited-duration positions tied to the Workday system to permanent status. She described six temporary positions proposed to become permanent (four on the Workday team, two in the statewide payroll unit) and said those statewide payroll roles handle arrears and PERS reporting and ensure accurate data transfers between systems. DAS said it expects those roles to remain necessary after implementation.

ARPA and staffing transitions

Committee members asked about remaining ARPA-funded work and project timelines. Dennis said ARPA dollars have largely been dispersed, that some projects may wrap this year or spill into 2026, and that reporting and closeout remain active tasks. She said four ARPA-related positions are being requested to continue and will be phased out over the biennium.

Reductions, vacancies and impacts

Dennis presented a reduction-options list that collectively included $85,800,000 in other-fund reductions and 105 positions across DAS and Enterprise Information Services (EIS) combined. For DAS specifically, she said the governor's recommended budget built in $25.1 million in other-fund reductions affecting 13 FTE (most vacant), and roughly $20 million in reductions to services and supplies (IT investments, training, and similar items). She also said about $1.1 million in general-fund pass-through reductions would hold certain partners (for example Oregon Historical Society, OPB) at current funding levels without inflation adjustments.

On long-term vacancies, Dennis said DAS had reduced long-term vacancies by 53 percent and currently lists 15 positions in that category with an average vacancy length of 2.6 years; she clarified that five of those 15 roles are currently covered by temporary employees or rotations, and four positions had been held vacant because they were placed on the reduction list.

Committee questioning and follow-up

Members asked for additional detail on several items: technical compatibility of EV chargers, whether Workday staffing needs will decline after implementation, the timeline and remaining balance of ARPA projects, and the staffing rationale for making limited-duration positions permanent. DAS committed to follow up with additional technical and staffing detail (for example, charger standards and whether the Workday team size will be reduced as projects conclude).

Why this matters

The committee was told these DAS funding and staffing decisions affect statewide administrative services that support other state agencies (payroll, procurement, IT assessments, the risk fund and pass-throughs like wrongful-conviction settlements). Several items under HB 5,002 have cross-agency implications (deferred maintenance of state facilities, EV infrastructure for the state fleet and Workday payroll/pay systems). Committee members signaled interest in further technical briefings on Workday and EV infrastructure standards.

Next steps

DAS indicated it will return for continued consideration and that some items will be clarified with follow-up materials. The subcommittee paused the hearing for the day and scheduled additional committee time and public testimony on the bill for the following meeting day.