Senators press staff for clarity on 'new' and 'vacant' FTE pool accounting during budget review

Committee members devoted a lengthy portion of the hearing to understanding the new and vacant FTE pools — a budgeting mechanism that removes salary dollars from individual agency budgets and places appropriation authority in an Office of Management and Budget pool.

Legislative and OMB staff explained that when agencies request full salary funding in their base budgets, leadership removes the portion associated with the new/vacant FTE pool and places that appropriation authority centrally. During the biennium, agencies may request transfers of that authority back from OMB when they need to fill positions. Any unused general‑fund appropriation authority at the end of the biennium returns to the general‑fund ending balance; special‑fund and federal authorities lapse or disappear as applicable.

Committee members repeatedly asked for plain‑language examples. Staff said the new FTE pool holds funding for positions added in the previous session; the vacant FTE pool holds funding associated with positions that are currently unfilled. The pool process is intended to improve accountability and to avoid agencies retaining full year salary appropriations when positions are only filled part of the year.

Members discussed operational implications for agency budgeting and staffing decisions, and noted the accounting is authority‑based rather than a cash transfer: the underlying cash remains in the general fund or in agency special funds, but the legislature centrally controls appropriation authority. Committee members asked that the approach be applied consistently across agency budgets and requested clear documentation of how the pools were calculated for each agency.