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Staff explain statewide cost-allocation plan (SWICAP) and how charges flow to agencies
Summary
Budget staff told JFAC that the statewide cost allocation plan recoups costs for central service agencies (attorney general, state controller, state treasurer and select direct-billing services) and that adjustments in agency budgets reflect a two-year lag between services provided and billing.
Jared Tetrault of the legislative budget office briefed the Joint Finance and Appropriation Committee on the statewide cost allocation plan (SWICAP) on Jan. 7, explaining how central service costs are recovered and why SWICAP adjustments appear as routine budget changes.
Tetrault said SWICAP is a plan the Division of Financial Management compiles and submits to the federal cognizant agency (Health and Human Services for Idaho) that describes how central service costs will be shared across fund sources. The plan supports fair allocation of costs for services provided by the Attorney General—s Office, Office of the State Controller and the State Treasurer, and it covers certain direct-billing services such as risk management, building services, Legislative Services audit billing and information-technology services.
Why it matters: SWICAP adjustments commonly appear in agency decision packages with a two-year lag: costs provided in year N are analyzed and billed in the budget for year N+2. Tetrault emphasized that allowable costs must benefit eligible state entities and that certain exceptions apply (for example the criminal division is excluded from some Attorney General billings). He noted that the primary drivers of SWICAP adjustments are billable attorney hours, accounting transactions and active payroll counts for the controller allocation, and warrants issued for the treasurer allocation.
Examples and scale
- For the 2023 base, the controller—s appropriation to provide central services was about $4.8 million and collections are expected to recover nearly the full amount from beneficiary funds.
- Information Technology Services (ITS) allocations were presented as roughly $39.7 million in the base and expected to decline based on current calculations.
- Tetrault said the total program when summed across central service agencies and direct billings is about $78 million to $79 million, with a net-year change in the governor—s recommendation typically shown as modest increases or decreases in each agency—s decision package.
Process and committee role
Tetrault described the SWICAP workflow: the state provides central-service appropriations, DFM calculates actual usage (hours, transactions, warrants) and notifies agencies of budget adjustments by October; agencies review and may contest allocations (for example, to argue that an increase is tied to a particular funding source), and then the legislature considers appropriations and any adjustments during the budget process. When agencies pay the bill, DFM deposits recovered amounts to the general fund.
Tetrault said most recoveries occur as intended but noted the Attorney General appropriation historically does not recover 100% because some allowable costs exceed collections. He offered to produce a more detailed percentage report on request.
Ending
Tetrault closed by offering analysts and committee members access to more detailed breakouts (for example by insurance, payroll and ITS components) and noting staff can provide agency-specific SWICAP questions during work-group hearings.
