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JFAC approves contract inflation and statewide cost allocation adjustments totaling several million dollars
Summary
The committee approved the governor's contract-inflation adjustments and a package of statewide cost-allocation changes covering attorney general billings, legislative audit costs, controller fees, treasurer and risk-management adjustments, and IT services charges.
The Joint Finance and Appropriations Committee approved two statewide budget items affecting agency operating and capital costs.
Contract inflation: Representative Miller moved to include the governor's FY2026 recommendation for ongoing contract inflation adjustments (examples: lease-rate inflators). The motion covered $3,356,400 in total ongoing increases (roughly $1.29 million General Fund, $935,400 dedicated funds, and $1.1295 million federal funds). The motion passed unanimously in JFAC and will be folded into agency maintenance budgets.
Statewide cost allocation: Cochair Harmon moved to adopt the governor's recommended adjustments for statewide cost allocation billings, which shift charges among agencies for services like Attorney General billings, legislative audit costs, state controller fees, treasurer fees, risk management and Office of Information Technology Services costs. The package neted to an increase of $5,540,500 statewide ($3,636,200 General Fund, $2,090,300 dedicated funds, and a $186,000 reduction in federal funds). The motion passed unanimously.
Why it matters: These adjustments modify agencies' operating budgets to reflect contractual cost increases and interagency service charges; both pass-throughs are routine components of maintenance budgeting.
Vote summary: - Contract inflation: Passed (Senate 10-0; House 10-0; grand total 20-0). - Statewide cost allocation: Passed (Senate 10-0; House 10-0; grand total 20-0).
