Commissioner Seely outlines BHRA reorganization, fleet review and cuts to capital maintenance budget

Commissioner Darren Seely, head of the Bureau of Human Resources and Administration, told the Joint Committee on Appropriations on Jan. 30 that his merged bureau provides “the people, places, and things that are required for state government to do their work.”

The reorganization combined human-resources and administration bureaus under BHRA to reduce overhead, Seely said, move staff closer to frontline roles and centralize legal and risk functions. He said the merger eliminated layers of leadership without increasing overall head count and allowed the bureau to repurpose positions to serve employees directly.

Seely told the committee BHRA now supervises divisions including human resources, benefits, HRIS, fleet and travel, procurement, central services, surplus and the Office of State Engineer. Jason Ketweg is named in the presentation as BHRA’s deputy commissioner for general services.

Why it matters: The consolidation changes how the state manages hiring, benefits and buildings. Seely said the change aims to improve customer service to agencies and reduce duplication; he also said it allows BHRA to tackle slower contract review timelines and start owner-controlled insurance on major construction projects, which he said can reduce litigation and keep projects moving.

Key operational items presented - Fleet and travel: Seely said BHRA manages more than 3,000 state-owned vehicles (excluding DOT and Highway Patrol). He described new fleet technology that will allow 24/7 kiosk reservations and give managers analytics on vehicle use and repair costs. He said a review is under way to determine if fleet size and assignments can be reduced. - Surplus property and seizures: Linus Volk, manager of the surplus property division, confirmed the state accepts seized vehicles and sells them at live or online auction; proceeds go to the drug-buy fund. Volk: “we accept surplus seizure vehicles and miscellaneous equipment from DCI, and we either sell them on an online auction or put them on a live auction.” - Office of State Engineer and capital projects: The bureau now houses the Office of State Engineer, which oversees vertical construction and building maintenance. Seely said the office is deploying asset-management software and expects further prioritization of deferred work.

Budget and maintenance-and-repair cut: Seely said the governor’s FY26 recommendation reduces statewide maintenance-and-repair (M&R) funding by about $6.4 million. He and other lawmakers warned that dropping below the industry standard of 2% of replacement value risks higher long-term costs; Seely called 1.25% a “reasonable approach for a tough budget year” but said it cannot be sustained indefinitely. He estimated that fully restoring the Capitol to “designer’s intent” would cost on the order of $130 million and called for a phased approach that could include public-private partnership models.

Other initiatives: Seely described technology upgrades (Project Evergreen for HR/payroll and coordination with the enterprise resource planning Project Bison), consolidation of printing and mail services, owner-controlled insurance on the women's prison project and workforce-succession planning to address a large share of employees eligible to retire over the next decade.

What the committee asked: Senators and representatives pressed BHRA on the M&R cut and on the Sioux Falls one-stop lease (discussed as a separate one-stop project). Senator Howard asked for a cost-benefit analysis for the 30-year Sioux Falls lease and who signed it; Seely said the bureau director and he were signatories and said the state has previously leased new buildings in Rapid City and Sioux Falls. Morgan Greebly of the Bureau of Finance and Management told the committee that deferred projects will roll forward to subsequent fiscal years if funding is reduced.

Next steps and outstanding items: Seely said legislation will be introduced to allow the Office of State Engineer to delegate authority for some projects (the bill will go to Senate Commerce and Energy) and that a bill to authorize sale of the Box Elder (West River) federal-surplus property site will be filed. He asked to return to the committee for additional discussion on workforce and compensation later in the session.

Ending: The committee recessed after Seely finished the BHRA portion and scheduled follow-up time, leaving questions about short-term M&R reductions, fleet rationalization and one-stop lease economics for future meetings.