OMB seeks $40 million for deferred maintenance and details Capitol complex projects

Office of Management and Budget (OMB) staff told the committee the agency seeks funding for several capital priorities, starting with a request to finish the statewide procurement automation project and continuing to a larger deferred‑maintenance ask for the Capitol complex and other state buildings.

OMB's presenter said the procurement automation system — a multiyear, enterprise project used by state agencies and higher education — is nearing a planned May go‑live date and requires about $1.1 million to finish (of which roughly $515,000 is one‑time integration and rollout costs; the remainder is ongoing maintenance/subscription). The presenter said the project included substantial stakeholder coordination and final integration with the state's accounting system.

On deferred maintenance, OMB presented a site‑logic assessment that identified about $69 million in immediate, high‑priority deferred maintenance needs for buildings above a 10,000 square‑foot threshold and across 14 state agencies; OMB asked the committee to authorize $40 million in allocations to address the highest‑priority items. The agency asked that the committee allow OMB to allocate funds to institutions during the interim based on the prioritized list and noted that the $40 million request does not cover all identified needs.

Capitol complex details: OMB and Facilities Management Division Director Brandon Solberg said the Capitol Tower and legislative wing projects include a $4.1 million shortfall to complete an 818‑window replacement program (the project remains only partially funded and cost estimates exceeded the earlier appropriation). Solberg said the legislature provided prior funding to replace boilers for the tower and that three boilers have been replaced but a remaining steam boiler and old piping will require an estimated additional $4,000,000 to finish conversion to a hydronic hot‑water system and remove old steam piping. He said the hydronic system will yield energy‑efficiency gains and that contractors would start as soon as funding is available.

Solberg described a Liberty Memorial Building problem where water intrusion and foundation issues exist; he said water mitigation funding in the current biennium would address parts of the problem but that roof replacement and additional work remain priorities on the deferred‑maintenance list.

Other items OMB cited included a $90,000 equipment request related to the insurance department (radios and x‑ray referenced earlier by the insurance commissioner), a $500,000 pool for unforeseen repairs on the complex (to cover urgent failures not on the deferred list), capital campus improvements for signage, tree and landscaping work, and a $2.35 million request to complete exterior work at the governor's residence (fencing, landscaping and driveway reconfiguration). OMB also proposed funds to reconfigure office space to accommodate hybrid work and shared work areas;

Committee members asked for a detailed list tying each project to the Armstrong executive recommendation and for carryover figures from the current biennium; they asked OMB to provide detailed cost estimates, the deferred list, and clarifications on which items were started and which remain unfunded. Brandon Solberg and OMB agreed to provide the breakout and invited committee members to tour impacted facilities.

Ending

The committee asked OMB to return with the comprehensive deferred‑maintenance list, carryover authority requests and cost reconciliations; several items were noted for follow‑up tours and additional clarification.