Industrial Commission asks for staffing and IT maintenance funding as caseloads rise

The Industrial Commission on Jan. 23 detailed a FY2026 budget request that would reallocate vacant full‑time positions and add targeted spending to respond to higher caseloads, ongoing maintenance needs for the IRIS case‑management project and replacing aging field vehicles. Noah Peterson, a budget and policy analyst with the Legislative Services Office, presented the agency’s consolidated fund picture and enhancement requests, and George Gutierrez, director of the Industrial Commission, answered committee questions.

The agency told the Joint Finance Preparation Committee that the commission operates from four dedicated funds — the Industrial Administration Fund, the Peace Officer Temporary Disability Fund, the Crime Victims Compensation Fund and a miscellaneous revenue fund — and receives no general fund appropriations. Peterson said the commission has 130.25 total FTPs allocated across programs (70.5 in the compensation program, 47.25 in rehabilitation and 12.5 in crime victims compensation) and reported 12 vacancies in August.

Committee members were shown that the commission reverted $4,555,000 to its funds in the previous year, with $3,000,000 of that tied to trustee and benefit payments (about $2,400,000 from the crime victims compensation program). Peterson said personnel reversion totaled about $644,000 and operating reversion about $835,000. The agency’s FY2026 request includes 10 enhancements (no new FTPs), consisting of ongoing personnel funding of roughly $298,200 and one‑time requests near $554,200, funded from the Industrial Administration Fund.

Why it matters: committee members pressed for details because the requests affect payment turnaround for victim compensation claims, timeliness of adjudication of workers’ compensation disputes, and field operations that serve injured workers, employers and crime victims statewide. Director Gutierrez said delays in adjudication and payment create direct impacts for claimants and for providers that rely on timely reimbursement.

Major items and agency rationale

- IRIS maintenance and long‑term technical support: The IRIS (Industrial Commission Redesign Information System) modernization project has had multiple development phases and about $12.9 million in appropriations from FY2021–FY2025, including $3.5 million one‑time in the most recent year. The commission requested a one‑time $288,000 appropriation for a maintenance contract to provide technical support until the Office of Information Technology Services (OITS) can assume responsibility. Peterson and the director said OITS currently cannot provide the full support and the contract is needed to maintain the system.

- Adjudication and legal support: The commission requested an ongoing referee position (to restore a fifth referee lost to retirement) and reclassification for five adjudication associates. Gutierrez said the number of cases taken to adjudication increased after the retirement and the average time from filing to decision rose from about 90 to 110 days. He described that some docket preparation work has shifted back to legal support staff because IRIS produces more electronic inputs that must be reviewed for statutory sufficiency before a case proceeds to hearing.

- Financial and victim compensation staffing: A senior financial technician position was requested to reduce payment‑processing delays in the Crime Victims Compensation program; the commission reported a previous backlog of roughly 800 outstanding payments and an estimated turnaround of 12 weeks (versus a 30‑day goal) before additional staffing was used to clear the backlog.

- Field and compliance staff: An ongoing rehabilitation field consultant was requested for Twin Falls/Burley due to a higher case load in that area (the agency said the area handles about 35% more cases than the statewide five‑year average). A technical records specialist was requested for employer compliance work because IRIS increased the number and variety of data sources being ingested.

- Replacement items and vehicles: The commission seeks to replace four aged vehicles in field offices (mileages reported between about 82,000 and 98,000) and to purchase IT replacement items (laptops, monitors and docks).

Questions and follow‑up requested

Committee members repeatedly asked for more detailed breakdowns and operational clarifications. Representative Petzke asked whether reverted funds could be used to fill the vacant positions; Peterson deferred operational detail to Director Gutierrez, who said a substantial portion of last year’s reversion was trustee and benefit payments and that the commission lacks unilateral authority to repurpose those funds without legislative or other approval. Senator Cook and others pressed for a detailed accounting of the IRIS spending and the nature of the $288,000 maintenance contract; Gutierrez agreed to provide a written breakdown to the committee. Representative Mitchell requested a full fleet inventory and the commission agreed to supply specific vehicle records.

No formal action was taken by the committee at the hearing; the presentation and questions were part of the agency’s budget review process.

Ending: Gutierrez closed by thanking the committee and asking for support of the FY2026 budget package; committee chairs thanked the director and staff for the briefing and said they expect the requested follow‑up materials.