Department of Finance asks JFAC for six examiners; governor declines two positions

The Joint Finance-Appropriations Committee on Jan. 21 heard the Department of Finance request six full-time positions and $816,600 from state regulatory funds for fiscal 2026 to expand examination and investigative capacity, particularly for IT and cybersecurity work.

The request would add an IT examiner and a financial examiner for the Financial Institutions Bureau, two financial investigator III positions focused on information-technology examinations in mortgage and consumer services, a cybersecurity-focused investigator in the Securities Bureau, and a forensic-accounting specialist for securities investigations. Salary levels presented range from $82,500 to $121,300 depending on grade; a one-time capital request of $52,600 was listed for OITS-recommended hardware (laptops, docking stations and portable monitors).

The department’s presentation noted that the agency’s operations are supported mainly by the state regulatory fund, with the mortgage recovery fund and the securities investing and trade training fund each statutorily limited to up to $50,000 of annual use. The analyst said the Department of Finance averaged about 92.5% spending of appropriation across recent fiscal years and that roughly 78% of fiscal 2024 expenditures were personnel costs.

Patty Perkins, director of the Department of Finance, told the committee there has been "a huge increase in cybercrime" and said the agency is especially concerned about fraud targeting the state’s elderly population. "There is a huge increase in cybercrime. And, we have a particular, concern about the elderly population in the state," Perkins said. She described partnerships with the Idaho State Police and other law-enforcement entities and said those partners have made tools available for tracing proceeds, including cryptocurrency investigations.

Perkins and the analyst also told the committee that the governor recommended funding for all the requested items except the two financial investigator III positions targeted to the Consumer Finance Bureau that would focus on IT examinations. That partial recommendation left senators asking for additional, measurable workload data to justify the new full-time positions and to make it possible to evaluate return on investment.

Senator Maryanne Wintrow and Senator Cook asked for more concrete data on workload, cases and outcomes that would support the six new FTP requests. Perkins agreed to provide a follow-up package to the committee with more detailed case counts and other supporting materials. "We'll get that together for you," Perkins said.

No formal committee action or vote on the enhancement request was recorded during the session. Committee members repeatedly emphasized the need for quantifiable performance or workload metrics that would allow them to measure whether additional staffing reduces fraud, improves enforcement outcomes or produces cost savings.

The Department of Finance presentation and the director’s answers are part of budget review materials posted in the legislative budget book and the SharePoint packet for the session.