Subcommittee opens informational hearing on HB 5002; DAS highlights Workday, capital needs and wrongful-conviction payments

The Joint Committee on Ways and Means Subcommittee on General Government opened an informational hearing on HB 5002, the Department of Administrative Services’ (DAS) primary appropriation bill, on March 3, 2025.

DAS financial staff and agency leaders told the subcommittee the governor’s recommended 2025–27 budget focuses investments on customer-facing administrative services, technology and information-security improvements, and restoring solvency to the state risk fund. “In an effort to address these issues, the governor's budget did focus investments, to grow programs to meet those customer needs,” DAS Chief Financial Office representative Renee Klein said.

The hearing is the first of several DAS budget briefings set for the week; staff said a separate presentation will go deeper into some programs in a later session. The department emphasized that a portion of its budget is pass-through funding for other agencies, including payments tied to the statutory wrongful-conviction compensation program created by SB 1584 (2022). “This funding is in the DAS budget as a pass through to, for both the state legal costs, for DOJ and for the compensation,” Klein told committee members.

Klein outlined three categories of the DAS budget: (1) enterprise operations funded largely by assessments and fees charged to client agencies; (2) pass-through general fund and lottery fund payments; and (3) remaining federal funds, mainly ARPA dollars that are diminishing over the coming biennium. She said the agency’s other funds are principally derived from assessments on client agencies and are used to run services such as payroll, human resources and information-technology support.

DAS Director Barry Leslie framed the department as the state’s shared-services “back of house,” responsible both for running its own agency and for leading enterprise operations across the executive branch. “DAS is an agency... but also because it's the home of the chief operating officer, it also is the lead agency and kind of the leader for the rest of the executive branch agency,” Leslie said. He said DAS intends to continue emphasizing responsiveness, employee development and operational excellence.

Workday and organizational changes: Committee members heard that Workday-related teams and financial-system work will be consolidated under the Chief Operating Office and Chief Financial Office, respectively. Klein said the reorganization responds to lessons learned during the Workday rollout and will centralize financial-system resources in preparation for a planned future replacement. “Workday is gonna be moved into the Chief Operating Office,” Klein said. DAS staff said they plan a fuller Workday briefing for the committee in a separate session.

Capital and facility needs: DAS described a recommended capital program that includes deferred maintenance and building upgrades, with a highlighted renovation of the Labor and Industries Building. Klein said the agency’s capital improvements and construction request includes about $176,000,000 for renovations, sustainability and building-automation projects.

Risk fund and debt service: The department said the state risk fund requires additional investment to rebuild fund balances after rising claims. Klein also described DAS debt-service payments that are allocated through the department’s budget; she said she would follow up with the committee on the exact scope and whether the slide reflected DAS-only debt service or a broader portion of state debt.

Pass-throughs and other programs: Klein and Leslie listed a number of pass-throughs and programs included in the DAS budget: funding for the Court Appointed Special Advocate program, a $500,000 appropriation to Oregon Public Broadcasting to support emergency broadcast services, a location for funding to the Oregon Historical Society, and payments tied to the wrongful-conviction statute. Leslie and Klein said the department receives such funds and makes payments at DOJ’s direction for the wrongful-conviction program.

Staffing and operations: Klein said some Workday-related roles that began as limited-duration positions will be continued and made permanent in the 2025–27 budget, and that DAS will fund additional positions in payroll, accounting, human resources and IT to meet agency demand. She said enterprise information services and the state data center face increased infrastructure and information-security needs.

Committee members asked questions about federal ARPA funding that previously boosted DAS appropriations; Klein said the ARPA projects are currently spending and the remaining balance for winding down those programs is roughly $165,000,000.

Next steps: Committee chairs and staff told members the week will include deeper dives into specific DAS programs and that the Legislative Fiscal Office materials on OLIS contain summaries for each budget. Director Leslie and other DAS staff paused the hearing at the committee’s request; they will return for additional briefings in subsequent hearings.

Ending note: DAS officials said they will return with more detailed briefings (including a dedicated Workday session) and follow up items requested by committee members, including clarifications on certain debt-service allocations and wrongful-conviction funding projections.