Department of Finance asks JFAC for six positions to bolster exams and cybersecurity; governor trims two

The Joint Finance-Appropriations Committee on Jan. 21 heard the Department of Finance’s base budget and a 2026 enhancement request that would add six full‑time positions and $816,600 from state regulatory funds to expand exam and cybersecurity capacity.

The request, presented by Noah Peterson of the Legislative Services Office, would add IT‑focused examiners and specialist investigators across the Financial Institutions Bureau, Consumer Finance Bureau and Securities Bureau; the governor recommended all of the agency’s listed items except two financial investigator 3 positions requested for the Consumer Finance Bureau.

The committee was told the Department of Finance has 72 full‑time positions and operates primarily from a dedicated state regulatory fund, which covers roughly 99% of the agency’s appropriation. The agency described three dedicated funds: state regulatory funds (operations), a mortgage recovery fund (statutorily limited to $50,000 in annual administrative use), and a securities investor‑education fund (statutorily limited to $50,000 for investor education and training). Mr. Peterson’s presentation showed the department averaged about 92.5% spending of its appropriations from fiscal 2021–2024; fiscal 2024 expenditures were about 77.8% personnel, 21% operating (about $2.1 million) and 1.2% capital outlay.

On the 2026 enhancement list, the agency requested six positions and associated costs (total $816,600) drawn from state regulatory funds: an IT examiner for the Financial Institutions Bureau ($121,300, salary grade P), a second financial examiner for Financial Institutions ($121,300, grade P), two financial investigator 3 positions with IT examination focus for the Consumer Finance Bureau (budgeted at $82,500, grade M), one financial investigator 3 for the Securities Bureau focused on cybersecurity ($82,500, grade M), and one forensic accounting specialist for the Securities Bureau ($82,500, grade M). The packet also included a one‑time Office of Information Technology Services hardware request of $52,600 (itemized as $42,000 for laptops, $6,100 for docking stations and $4,500 for portable field monitors). The governor’s recommendation excluded the two Consumer Finance Bureau investigator 3 positions.

Committee members asked for more concrete data to justify the new positions. Senator Melissa Wintrow said she had met with agency staff who described increased criminal activity targeting elderly Idahoans and expressed concern that the governor did not recommend the two investigator positions focusing on cybersecurity and elder‑targeted fraud. Senator Cook asked for measurable workload data and return‑on‑investment metrics to assess whether the requested FTPs are warranted.

Director Patty Perkins said the department has seen a sharp increase in cybercrime, particularly schemes targeting older residents, and described the department’s work with Idaho State Police and prosecutors to “follow the money.” Perkins said some investigative tools and expertise (for example, crypto tracing tools) have been provided or enabled by partners such as ISP, and that the department’s investigative staff is small and stretched; she agreed to provide more detailed case and workload information to the committee. Analyst Peterson said tangible numbers (for example, FBI cybercrime damage estimates) were not immediately at hand but that he would work with the agency to provide supporting data.

No formal motions or votes were taken on the Department of Finance budget during this hearing. Committee staff noted earlier in the session that final budget setting is delayed pending resolution of a compensation (CEC) recommendation and a separate health insurance benefits issue; the committee directed several agencies to accelerate presentations later in the week.

The Department of Finance said it supports the governor’s recommended budget overall while continuing to press for the additional investigator positions it requested.

The committee asked the agency to return with more granular data on case volume, outcomes and metrics that would allow members to measure the impact of any new investigative staff if the positions are approved later in the process.