Committee hears that one analyst oversees $11 billion in insured property; department asks for property valuation analyst

Representative Tanner asked for detail on the retained risk account and whether fluctuations in the fund balance were explained by continuously appropriated expenditures. Frances Lippitt, the Legislative Services analyst, told the panel that the ending fund balance figures for FY2025–FY2026 in the agency’s presentation exclude continuously appropriated expenditures, and she recommended limiting trend analysis to fiscal years 2022–2024 for that fund.

Faith Knowlton, administrator for the division of insurance within the Department of Administration, told the committee the division currently has a single analyst responsible for “over $11,000,000,000 in property” and more than 8,500 vehicles. “It would be possible for our staff of 1 to be able to manage what the agencies are doing outside, which is the reason we are requesting this position,” Knowlton said, arguing the office needs a property values analyst to ensure accurate replacement-value assessments and to remove obsolete or incorrectly listed assets.

Knowlton described problems agencies have had entering their own insurable values, including instances in which agencies were insuring buildings that had been demolished. She said the division’s first round of updated appraisals removed roughly $500 million in over‑insured property values and that the initial corrections saved the state roughly $120,000 in premiums.

On refunds and recoveries, Knowlton said the division can pursue refunds only within the current year once it identifies an overpayment. She described a four‑year appraisal plan intended to audit and correct property values across state agencies more quickly and said an additional analyst would require agencies to coordinate through the division before adding or changing property entries.

Representative Tanner asked whether staff could quantify historical overpayments going back five years; Knowlton and department staff said they were not able to reconstruct a five‑year history but that the first round of appraisals (looking back one year) identified significant over‑insurances.

Senator Bjerke and other committee members pressed for high‑level explanations of temporary negative balances in the permanent building fund and retained risk; Lippitt explained such negative free balances are often netted against direct investments to present a positive overall balance.

The committee did not take final action; staff agreed to provide requested fund detail and continuous-appropriation clarifications.