Department of Finance requests six examiners to bolster cybersecurity, governor approves all but two

The Idaho Department of Finance requested six new full‑time positions and $816,600 from state regulatory funds during a Jan. 21 Joint Finance‑Appropriations Committee hearing, citing growing cybersecurity threats and increased fraud investigations. The governor’s recommendation endorsed the department’s enhancement package except for two investigator positions proposed for the Consumer Finance Bureau.

The request, presented by Noah Peterson, budget and policy analyst with the Legislative Services Office, seeks six ongoing FTPs and associated salary and operating costs. Director Patty Perkins told the committee the department has increased focus on cybercrime, particularly fraud targeting older Idahoans, and said additional investigative capacity is needed to keep pace with complex digital schemes.

The enhancement package would add an information‑technology examiner and a financial examiner for the Financial Institutions Bureau (each budgeted at $121,300, salary grade P), two financial investigator‑3 positions focused on IT examinations (budgeted at $82,500 each, grade M), an investigator‑3 position for the Securities Bureau specializing in cybersecurity (budgeted at $82,500), and a forensic accounting examiner for the Securities Bureau (budgeted at $82,500). The request also includes one‑time capital outlay recommended by the Office of Information Technology Services totaling $52,600 for laptops ($42,000), docking stations ($6,100) and portable field monitors ($4,500).

Peterson told members the six‑position, $816,600 request would be paid from the department’s state regulatory funds. He described three dedicated Department of Finance funds: the state regulatory fund (the department’s primary operating source), the mortgage recovery fund (statutorily limited to up to $50,000 per year for administration), and the securities investor education fund (also statutorily limited to $50,000 per year for investor education). Peterson said the department consistently spends above 90% of its appropriation, averaging about 92.5% over the prior four fiscal years, and that personnel costs comprised about 77.8% of fiscal 2024 expenditures.

Director Patty Perkins described an increase in cybercrime and elder‑targeted schemes. “There is a huge increase in cybercrime,” Perkins said, adding that the department has partnered with the Idaho State Police and other law enforcement to “follow the money” and that newer schemes, including those involving crypto, require specialized tools and staff. Perkins recounted a personal example of an elderly relative who was swindled and said state law‑enforcement partners have purchased systems the department can use for certain investigations.

Senators asked for more concrete performance and workload data to justify the new FTPs. Senator Melissa Wintrow said the department’s work on elder fraud merited the investment but requested case and workload metrics; Senator Cook asked for measurable benchmarks to track return on investment if the positions are approved. Perkins agreed to provide the committee with additional data and a more detailed breakdown of investigations and outcomes.

Peterson noted that the governor recommended all the enhancement items the department sought except for the two financial investigator‑3 positions assigned to the Consumer Finance Bureau. The governor’s nonrecommendation of those two positions was highlighted in the department’s request materials shown to the committee.

Background details provided to the committee showed that in fiscal 2024 the Department of Finance added three positions (a mortgage examiner, a public outreach specialist and a securities technician) and netted two FTPs after consolidating HR staff with the Division of Human Resources. The department currently has 72 full‑time personnel allocated under one program that houses the Financial Institutions Bureau, the Consumer Finance Bureau and the Securities Bureau.

The committee did not take a formal vote during the Jan. 21 hearing. Director Perkins said the department supports the governor’s budget recommendation overall and will provide the committee the additional workload and case data requested.

The Department of Finance presentation materials and the agency’s full fund narratives are available in the legislative budget book and the committee’s SharePoint folder for further detail.