Appropriations panel advances OMB budget, creates $2 million rent/move pool and backs $40 million deferred maintenance

Chairman Munson convened the House Appropriations — Government Operations Division and said, “We have a quorum,” as the panel opened discussion on the Office of Management and Budget (OMB) portion of the appropriations worksheet.

The committee approved several OMB budget changes and procedural sections after extended discussion of individual line items, including a decision to combine two previously separate line items into a single $2,000,000 pool for rent, moving and space reconfiguration and to place a $40,000,000 deferred-maintenance request from the State Infrastructure Fund (SIF) onto the worksheet.

Why it matters: the OMB budget covers central building maintenance and agency-space needs for the capitol complex and other state-leased space. The committee’s decisions affect capital repairs, agency office moves, and short-term funding authorities that determine whether agencies can reconfigure space, relocate staff or draw down SIF funds during the next biennium.

Major outcomes and context

The committee directed staff to combine the earlier, separate requests for a rent-and-moving pool and a space-reconfiguration pool into a single $2,000,000 appropriation, with authority to carry over unspent funds. Representative Meyer and others had argued for caution given hybrid-work trends and existing carryover balances; the chairman and OMB staff said combining the items would allow flexibility and internal allocation without repeated deficit requests.

OMB staff member Joe described the rent/move concept as a central pool to “allocate it out” to agencies that face unexpected or unbudgeted rent or relocation costs, and said the office will prioritize filling underused space in the Capitol before leasing off-site. The panel also asked OMB to provide a listing of current off-campus leased square footage and agencies paying rent to help gauge potential savings from reconfiguring space back into the Capitol.

The committee placed $40,000,000 of deferred-maintenance funding on the worksheet, described by OMB as a multi-agency list of high-need projects (roofs, windows, boilers and other critical systems) identified by assessments. Members discussed that the governor’s residence security request ($2,350,000) remained as a separate line item and that the deferred-maintenance pool is intended for building-systems repairs rather than residence improvements.

Other funding decisions and instructions

- The committee agreed to include the student-internship program at the governor’s requested continuing level (the governor had proposed $500,000) to match and encourage agencies to hire interns; OMB said the funds are a match program and do not replace agencies’ existing internship funding.

- The committee left a $15,000 request for news-media monitoring software out of the worksheet “for now,” asking OMB to provide a more complete listing of agencies participating in a collaborative purchase before including that item.

- A proposed placeholder for a retirement-incentive pool (an estimate for incentive payments tied to a pension plan election) was left out pending more accurate March estimates; the panel noted it could be addressed later or as a deficiency once actual take-up rates are known.

- One-time capital items (floor scrubbers, snow-removal equipment and a $3,000,000 capital-buildings-improvement pool to address Eighteenth Floor work, tree management and signage) were discussed and put on the worksheet as presented.

Statutory and section decisions

The committee walked through bill/section language in the OMB bill and removed some proposed statutory language that is already addressed in other bills. Members directed staff to omit sections 13 and 14 because they are addressed elsewhere, to remove section 3 from the OMB bill, and to keep section 4. Section 15 (budget-stabilization language) remained in the worksheet. The committee also confirmed the need to include section 17 to repeal a statutory reference tied to the Boys and Girls Club appropriation that members agreed should be removed.

Guardianship and program placement

Members noted guardianship funding appears across multiple budgets (OMB, Human Services and Judicial) and asked staff to reconsolidate and report back so the committee can track total funding; OMB staff confirmed the base figure shown in the worksheet and said they would follow up with details, and members agreed to restore the guardianship line to the base level in the worksheet pending coordination with the other budgets.

Votes at a glance: - Combine rent, moving and space reconfiguration into one $2,000,000 pool — approved by committee consensus; no roll-call recorded. - Add $40,000,000 deferred-maintenance (SIF) to worksheet — approved by committee consensus; no roll-call recorded. - Include $500,000 state internship match (one-time/continuation) — approved by committee consensus; no roll-call recorded. - Leave $15,000 news-media monitoring software out pending further agency list — approved by committee consensus; no roll-call recorded. - Remove section 3 from the OMB bill; keep section 4; remove sections 13 and 14 (addressed in other bills); keep 15; include repeal language in section 17 for Boys and Girls Club — committee consensus.

What remains and next steps

OMB staff and committee members scheduled follow-up: OMB will provide a list of agencies and square footage for off-campus leases, an agency list for the media-monitoring software collaboration, and a more precise estimate of the retirement-incentive cost after March take-up data. Committee members said they planned to reconvene the Government Operations panel the next morning to finalize amendments and to coordinate placement of guardianship funding with the Senate and judicial budgets.

Ending: The committee adjourned after instructing staff to update the worksheet and prepare an amendment reflecting the agreed changes; Chairman Munson closed the meeting and noted the committee will meet again the next day to continue work.