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State controller urges funding to bring LUMA costs on‑budget; committee warned of audit and staffing risks
Summary
State Controller Brandon Wolf told the Joint Finance-Appropriations Committee that funding is needed to move LUMA sustainment from a temporary implementation fund onto the controller’s budget, warning that insufficient appropriation would reduce staff supporting payroll, payments and statewide financial reporting.
State Controller Brandon Wolf and legislative analysts briefed the Joint Finance-Appropriations Committee on the state controller’s office budget and the transition of LUMA (the statewide enterprise resource management system) from the Business Information Infrastructure Fund (BIF) to on‑budget appropriations.
Why it matters: LUMA centralizes financial, procurement, HR and benefits systems across state government. The controller’s office said funding and staffing decisions affect payroll and accounting processing, the annual financial report, and timely completion of federal audits.
Frances Lippett, Legislative Services analyst, told the committee the BIF — the temporary fund that covered LUMA implementation costs — will expire June 30. Lippett said the controller’s FY2026 request would bring LUMA sustainment costs onto the controller’s budget and include personnel to staff ongoing LUMA support. The office requested additional full‑time equivalents and operating appropriation to cover positions previously funded out of the BIF, and a dedicated‑fund appropriation to reflect infrastructure costs charged through the Computer Service Center.
Brandon Wolf outlined operational consequences if funding is not provided. “We have 47 employees working on the LUMA project,” Wolf said. He added that the 13 positions requested previously were approved structurally but not funded and that without the current funding request “we would almost cut the LUMA team in half,” which would pose risk to payroll, payments and financial reporting. Wolf said bringing LUMA on budget would preserve roughly 20 positions that otherwise would lose continuing appropriation funding.
Audits and reporting: committee members asked about delayed financial closings and federal reporting. Wolf acknowledged the office is behind in the FY closing cycle and said the office and agencies are working to complete the annual comprehensive financial report and the single audit. “I believe we're eight weeks late on the closing,” Wolf said, and described the work as ongoing with an emphasis on training, process improvement and support for agency fiscal staff.
Operational details: the controller’s FY2026 request as presented includes funding for 7 additional FTEs and approximately $9.86 million to bring LUMA sustainment costs onto the general‑fund appropriation, plus dedicated‑fund appropriation for infrastructure costs within the Computer Service Center and two financial specialists intended to offer shared‑services transaction processing and reporting support for smaller agencies.
Wolf characterized LUMA as a long, complex technical and programmatic effort whose problems are not unique to Idaho. “The system is functioning. It is working,” he said, adding that other states implementing similar enterprise systems have encountered longer delays. He emphasized change management and user training as priorities and said the controller’s office will share lessons learned to help future large technology projects.
Bottom line: the controller asked the committee to fund a multiyear transition to on‑budget funding for LUMA sustainment and several positions. Committee members pressed for assurances about audit timeliness and for follow‑up on operational impacts and training for agency staff; the controller said the requested funding is needed to maintain current support levels for LUMA and to continue completing statewide financial reporting.
