JFAC corrects prior reappropriations: broadband funds moved to broadband office; DEQ and health-and-welfare expenditure fixes approved

The Joint Finance and Appropriations Committee unanimously approved a set of technical corrections to the current (FY2025) budget on Friday, Jan. 17, moving previously reappropriated broadband funds into the broadband office created last year, correcting an appropriation classification error at the Department of Environmental Quality and changing expenditure categories for two Health and Welfare line items.

The corrections were presented by Janet Jessup, a budget and policy analyst with the Legislative Services Office. Jessup told the committee the broadband office was added to the Department of Commerce after reappropriation was already recorded, so reappropriated funds had been placed in the Department of Commerce’s commerce program rather than the broadband office. The committee approved two motions — first to remove the reappropriated funds from the commerce program and then to add the same amount to the broadband program — both totaling $291,737,000. Both motions passed on roll call, 20 ayes, 0 nays.

Why it matters: moving the funds into the correct appropriation unit aligns accounting with the Legislature’s intent and enables ongoing tracking and transparency for the broadband program going forward. Jessup described the pair of motions as netting to zero overall (removal then re-addition) but necessary to place the funds in the proper fund and expenditure categories.

The committee also approved a correction for the Department of Environmental Quality that changes an item mistakenly coded as a reduction to the agency’s general fund appropriation into a transfer from the general fund to the DEQ general fund so the agency remains whole. Senator Woodward moved the $2,000,000 transfer; Representative Manwaring seconded. The motion passed 20-0 on a roll call.

Finally, the committee fixed two Health and Welfare line-item expenditure classifications that had been placed in trustee and benefit payments but were intended to be appropriated as operating expenditures because the payments are made via contract. Representative Price moved a reclassification for the Substance Abuse Treatment and Prevention program moving $160,000 from trustee and benefit payments to operating expenditures; Senator Bierke seconded. The committee also approved a $240,000 operating-expenditure adjustment in the Physical Health Services program tied to the Central Tumor Registry fund; that motion also passed on roll call, 20-0.

Actions recorded today are technical and corrective rather than policy changes; each motion carried a "do pass" recommendation from the committee. Committee staff said the corrections were necessary because of organizational changes and earlier timing differences between program creation and how reappropriations were entered into the state accounting system.

Meeting context and next steps: Committee members and staff said these fixes are procedural and intended to improve accounting transparency. The committee will carry the motions forward as recommendations (to be included in the formal appropriation bills and bill drafts for floor action).