Executive Office seeks transfers to restore emergency fund, explores constituent-management system

The Executive Office of the Governor told the Joint Finance-Appropriations Committee on Feb. 18 that it is seeking to restore its governor’s emergency fund cash balance and is evaluating how best to implement a constituent-services management system.

Christopher LaHozet, a legislative budget analyst, told the committee the governor’s emergency fund has a base appropriation of $2 million but its cash balance fell to roughly $650,000 after reimbursements tied to law-enforcement and public-safety responses and related items. The governor recommends a one-time transfer of $1,350,000 from the general fund to restore the emergency fund cash balance to the statutory base appropriation.

LaHozet also outlined other enhancement requests: $45,000 one-time for ITS replacement items and $250,000 one-time from the general fund to implement the objectives of the White House Task Force marking America’s 250th birthday (referred to in the request as Task Force 250). The analyst said the $250,000 is intended to support state participation in a national program arising from a presidential executive order and related events and exhibits.

Constituent-services software: The governor’s office was appropriated funding in the prior year to implement a constituent-services platform. LaHozet said the office had evaluated Salesforce as one option but that Salesforce proved cost-prohibitive; the office has not yet spent the appropriation and is looking at alternative vendors and ways to leverage existing state IT resources. Division of Financial Management (DFM) Administrator Lori Wolf told the committee the governor’s office receives more than 100,000 constituent contacts per year and that the requested platform aims to track constituent emails/calls, board and commission appointments and other casework.

Questions on reimbursements and transparency: Several lawmakers pressed DFM and staff about personnel reimbursements and “10P” transactions in which personnel costs are shared or reimbursed across agencies. Representative Tanner and others asked why some large transfers from other agencies to the governor’s office appeared as straight transfers with limited line-item detail. DFM Administrator Lori Wolf and Mr. LaHozet explained the interagency personnel-reimbursement process has a long history and was replicated in the new LUMA accounting system; they said those transactions are not new and that controllers and DFM can provide detailed expenditure reports on demand.

Lawmakers also asked for more detailed accounting: Senator Zatterfeld requested an Excel breakout of how about $1.35 million had been spent from the emergency fund in prior years. LaHozet said the annual report from the Division of Financial Management catalogues those expenditures and that he would share the spreadsheet with the committee.

DFM told the committee it had not yet spent the constituent-services appropriation and that the governor’s office is working with ITS and DFM to define phased requirements and explore less costly alternatives than Salesforce. Wolf said the office is working to avoid unnecessary ongoing subscription costs if state resources can be leveraged.

Closing: Wolf told the committee the administration’s proposals include replenishing the emergency fund to retain readiness for unanticipated incidents and asked members to consider the requests. Committee members asked for additional itemized documentation related to travel, charter-flight costs, constituent-services implementation options, and the June transfers and personnel-reimbursement detail.