Committee debates keeping Department of Financial Institutions budget alive while Senate Bill 2028 moves through Legislature

The Appropriations - Government Operations Division committee discussed whether to maintain a separate budget for the Department of Financial Institutions while Senate Bill 2028 (a continuing-appropriation proposal) moves through the legislative process.

Committee Chair (unnamed) said the session faces an unusual choice because “we are looking at providing a continuing appropriation” under SB 2028 and asked how the committee should proceed if the bill’s fate in the House is uncertain.

Adam (budget staff) told the committee it should consult legislative leaders in both chambers but recommended preparing a budget “just in case.” He said preparing the department’s budget now would give the committee a fallback if SB 2028 is not enacted, and would still allow the department to rely on the continuing appropriation if the bill is approved. Adam also suggested a procedural option: “you could approve it with a $0 appropriation amount in it,” which would preserve the bill structure without committing dollars until the committee decides to add amounts.

Chair remarks and later committee discussion indicated members will consult with leadership before spending significant committee time on the issue. The chair asked for time to confer with Senate leadership and said staff should be patient while he does so.

No formal motion or vote on the Department of Financial Institutions budget or SB 2028 was recorded during the meeting. Staff instructed committee members to discuss the matter with chamber leadership and return with direction on whether to build an active appropriations bill, to rely on the continuing-appropriation vehicle, or to adopt a $0 appropriation placeholder.

The committee moved on to other agenda items after directing staff to prepare materials that reflect whichever approach the chair and leadership ultimately recommend.