Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the It Costs Ads True Up topic
No spam. Unsubscribe anytime.
Health Department asks for $646,940 to cover share of ADS service-level agreement
Summary
The Vermont Department of Health told the Appropriations Committee it needs $646,940 in fiscal 2025 to cover its share of final charges from the Agency of Digital Services, citing trailing billings and prorated allocations based on agency use.
The Vermont Department of Health asked the Appropriations Committee on Jan. 15 for $646,940 in additional fiscal 2025 funding to cover the department’s share of a service-level agreement with the Agency of Digital Services (ADS).
Commissioner Mark Levine told committee members: "The administration is requesting additional funding for the cost of the health department share of the service level agreement with the agency of digital services. Total of $646,940." He said the line appears in B.311 as the difference between what was budgeted and the annual costs ADS provided for 2025.
The request stems from final 2025 billings ADS provided to the Agency of Human Services (AHS). Paul Daley, financial director at the Health Department, explained the two agencies reconcile trailing costs and then prorate them to departments: "These are the final 2025 billings that you receive from ADS... we prorate those costs to the departments." Committee members pressed staff on why the increase was needed; Daley and the department said part of the amount is a reallocation that had been held at AHS central office and part is new, unbudgeted costs identified when ADS settled the year’s billings. Examples of ADS-billed services cited by Levine included Microsoft enterprise licensing.
Committee members asked whether the allocation is based on headcount or system activity; Levine and Daley said allocations vary by service and can be based on headcount or server activity and are determined at the AHS central office before being distributed to departments. No formal committee action was recorded during the presentation; the request was offered as part of the governor’s fiscal 2025 budget adjustment materials and will require legislative action to change appropriations.
The Health Department’s testimony noted this request is an agency-level true-up between the base appropriation and final ADS billings for the fiscal year. Committee members indicated they expect ADS to appear for additional questions in later hearings.
