Industrial Commission seeks staffing, IRIS maintenance and vehicle replacements in 2026 budget request

The Industrial Commission told the Joint Finance Preparation Committee on Jan. 23 that its 2026 budget request centers on maintaining the IRIS case-management system, funding several positions by using existing vacant full-time positions (FTP), and replacing aging field vehicles.

The request, presented by Noah Peterson, budget and policy analyst with the Legislative Services Office, was described as relying solely on dedicated commission funds rather than the general fund. Peterson said the commission has 130.25 FTP authorized, with 12 vacancies reported as of August, and that most of the agency’s appropriation is drawn from four dedicated funds: the Industrial Administration Fund, the Peace Officer Temporary Disability Fund, the Crime Victims Compensation Fund and a Miscellaneous Revenue Fund.

Why it matters: Commissioners and staff told lawmakers the bulk of the commission’s work—adjudicating workers’ compensation disputes, running rehabilitation services and operating the crime victims compensation program—depends on timely processing and field work. Committee members repeatedly pressed agency leaders to explain why modernization work on IRIS, a multi‑year automation effort, has led to continuing maintenance costs and increased staffing needs rather than reducing them.

Peterson told the committee that the IRIS modernization has been funded with multiple appropriations totaling $12,874,000 in one‑time monies from FY2021 through FY2025 and that the fiscal 2026 requests include both ongoing and one‑time amounts tied to IRIS maintenance and related replacements. He said the agency reverted roughly $4,555,000 last year, largely from trustee and benefit payments, and that about $2,400,000 of that reversion came from the crime victims compensation program. Personnel reversions were about $644,000; operating reversions about $835,000; and capital outlay reversions about $55,000.

Industrial Commission Director George Gutierrez told the committee that IRIS has increased the quantity and variety of electronic data flowing into the agency and that some tasks shifted from referees and hearing officers back to adjudication associates and legal support staff. “IRIS did increase our business system efficiency,” Gutierrez said, “but some responsibilities that were previously handled by referees—gathering and verifying the record—now require more specialized preparation before a case goes to hearing.”

Key budget requests and context: The commission requested 10 enhancement items in total for FY2026. Major items discussed include: - IRIS maintenance contract: a one‑time ask of $288,000 for contracted long‑term technical support while the Office of Information Technology Services (ITS/OITS) builds capacity to support IRIS. - Senior financial technician (crime victims compensation): $66,500 ongoing for personnel to reduce a historical backlog of unpaid claims; the fiscal department’s target turnaround for crime victims payments is 30 days, Peterson said, and at the time of the budget submission there were roughly 872 outstanding payments with an estimated 12‑week turnaround. - Rehabilitation field consultant (Twin Falls/Burley area): $32,300 ongoing to fund a position at a higher hourly rate; the Twin Falls/Burley region handles roughly 35% more cases than the statewide five‑year average. - Referee (hearing officer): $111,600 ongoing to restore the fifth referee position; the commission said the number of referees dropped from five to four after a 2020 retirement and that average decision times rose from about 90 days to 110 days since then. - Reclassification of five adjudication associates: $25,500 ongoing to move five associates from salary grade H to I (roughly a $2/hour increase). - Technical records specialist (employer compliance): $62,300 ongoing to address higher data volume and increased compliance caseloads. - Contingency and replacement items for IRIS and IT: one‑time appropriations (including a $30,000 contingency recommended by OITS and $104,200 for monitors/laptops/docking stations). - Vehicle replacements: request to replace four small SUVs used in field offices; vehicle mileage reported between about 82,000 and 98,000 miles and model years from roughly 2006 to 2011.

Committee members asked multiple follow‑ups: Representative Petzke asked whether reverted funds could be repurposed to hire staff; Peterson and Gutierrez said most reversions were trustee/benefit payments and that reallocating those monies would require special legislative approval. Senator Cook and others asked why IRIS, presented as a modernization, has created continued maintenance and higher skill requirements for some staff. Gutierrez said IRIS increased data volume and sources, producing more cases and requiring more complex pre‑hearing legal preparation; some functions previously handled “in‑house” by a Deputy Attorney General were shifted to the Attorney General’s civil litigation division, which has changed how cases must be prepared for outside counsel.

Requests for more detail: Multiple legislators asked for a written breakdown of IRIS development and maintenance costs and a schedule of vehicles and fleet needs; both Peterson and Gutierrez committed to provide further detail to the committee. Gutierrez also told lawmakers that the commission plans to use vacant FTPs to fund many of the requested positions rather than adding new FTPs.

Agency performance and closing: Gutierrez closed by highlighting the commission’s performance metrics and saying the budget aligns with the agency’s strategic plan. He requested the committee’s support for the 2026 budget and thanked the committee for its prior support for modernization and staffing needs.

What the committee directed or requested: Committee members asked the commission to: (1) provide a full itemized breakdown of IRIS spending to date and expected maintenance costs going forward; (2) supply a complete list of current fleet vehicles and the agency’s proposed replacements; and (3) clarify how reverted trustee and benefit funds could be used, if at all, for operational needs. The commission acknowledged that transfers of trustee/benefit funds to other purposes would require legislative approval.

Looking ahead: The commission’s FY2026 requests remain under committee review; a number of the enhancements are funded from dedicated funds and some require statutory or administrative changes (for example, OITS capacity is needed to transition IRIS maintenance to a long‑term support model). The committee’s questions suggest lawmakers will expect additional documentation before approving ongoing maintenance and personnel increases.