Senate panel amends, forwards Office of Administrative Hearings budget after debate on FTE flexibility

A Senate appropriations subcommittee voted unanimously to recommend Senate Bill 2017, the budget for the Office of Administrative Hearings, after amending the bill to restore several compensation and operating items and to give the special‑funded office flexibility to use revenue to hire staff or contract hearing judges.

The committee approved an amendment, moved by Senator Davidson and seconded by Senator Mather, that adds the health insurance increases, funding to replace the vacant FTE pool, temporary salary authority and information technology increases into the base budget and incorporates the section that allows the agency spending flexibility within its special fund. The motion carried on a recorded voice tally of 5 yeas, 0 nays; the committee then recommended the bill do pass as amended and referred it to the full Appropriations Committee.

The amendment and subsequent debate centered on how to treat a five‑FTE authorization for the office and on whether the office should have explicit spending authority to replace a vacant position or instead contract for judges. Committee members noted the office is special‑funded (no general fund line items) and that its operating cash comes from fees the office generates.

Legislative staff provided figures from an email attributed to Hope Hogan, the office’s incoming director, showing the office’s cash balance fell from roughly $370,000 in June 2020 to about $200,000 in June 2023 and to approximately $9,000 most recently. Committee members also heard caseload and billable‑hours data in Hogan’s submission showing hearing requests declined from 717 in 2016 to 449 in 2024 and billable hours decreased from 5,373 in 2021 to 4,206 in the last reported year.

Members emphasized that because the office is special‑funded it cannot spend more cash than is available in its fund, but a continuing appropriation gives it authority to carry cash forward and to use balances for future needs. The committee discussed wording — whether to tie authority to “availability of funds” or to “agency appropriation” — and staff clarified that agencies cannot legally spend more than the legislature appropriates, though grant or special fund receipts affect practical cash availability.

Senator Davidson framed the amendment as preserving operational flexibility so the office may hire its fifth position if caseload and revenue permit, or alternatively contract for judges if that proves more economical. Legislative staff confirmed the base budget and amended items are calculated on the office’s five FTE authorization, and the amendment would restore appropriation authority for the fifth position even if it is not immediately filled.

With the amendment adopted, the subcommittee moved SB 2017, as amended, out to the full Appropriations Committee for consideration.

The committee chair said staff would notify Hope Hogan of the action and that the full Appropriations Committee meets Wednesdays; he expected legislative counsel to prepare the technical amendment language promptly so the item could be considered in the full committee the next day.