Industrial Commission asks for staff, IRIS maintenance after automation increases workload

Noah Peterson, budget and policy analyst for the Legislative Services Office, reviewed the Idaho Industrial Commission’s budget request Thursday and told the Joint Finance Preparation Committee the agency is asking for a mix of ongoing and one‑time enhancements to address workload created in part by its IRIS modernization project.

The Industrial Commission, which administers workers’ compensation, rehabilitation services and the Crime Victims Compensation Program, has 130.25 budgeted FTP and reported 12 vacancies as of August. Peterson told the committee the commission reverted $4,555,000 in the prior year, including about $2.4 million from the crime victims compensation fund and roughly $3.0 million total in trustee and benefit payments. He also said personnel reversion totaled about $644,000 and operating reversions were roughly $835,000.

The commission’s budget is supported by dedicated funds rather than the general fund. Peterson summarized the four primary funds: the Industrial Administration Fund (premium taxes on sureties that write workers’ compensation), the Peace Officer Temporary Disability Fund (a $3 fine assessed on convictions to top up a peace officer’s pay), the Crime Victims Compensation Fund (fines from convictions used to reimburse victims for uncompensated expenses, subject to statutory caps), and a small miscellaneous revenue fund (seminar fees).

Why it matters: the commission said modernization has reduced paper processing but increased the volume and complexity of electronic records, shifting some work from referees to adjudication associates and creating new bottlenecks that delay hearings and payments.

Director George Gutierrez told the committee, “IRIS did increase our business system efficiency. So, it is taking a lot of the paper shuffling back and forth out of the equation and creating an electronic record that people can see, real time.” He added that the system has also increased the number and sources of employer data, producing a larger compliance caseload for staff to process.

Key requests and drivers - IRIS: Between FY 2021 and FY 2025 the commission received $12,874,000 in one‑time appropriations for the Industrial Commission Redesign Information Project (IRIS). The agency is asking for additional one‑time funding this year to contract long‑term technical support after the Office of Information Technology Services (OITS) indicated it cannot provide that support now. Peterson said the requested one‑time amount for IRIS maintenance is $288,000. The commission also requested a $30,000 one‑time contingency for IRIS unexpected costs; the governor did not recommend that contingency.

- Staffing enhancements: The FY2026 request includes 10 enhancement items funded from vacant FTPs (no net new FTP). Notable items include a senior financial technician for the Crime Victims Compensation program ($66,500 ongoing), a rehabilitation field consultant for Twin Falls/Burley to address 35% higher case volume in that area ($32,300 ongoing), a referee position to reduce adjudication delays ($111,600 ongoing), reclassification of five adjudication associates ($25,500 ongoing), and a technical records specialist in employer compliance ($62,300 ongoing).

- Fiscal operations: Peterson said the fiscal department targeted a 30‑day goal to process Crime Victims Compensation payments; at the time of the budget submission there were roughly 872 outstanding payments with an estimated turnaround of 12 weeks. Director Gutierrez said the fiscal office shifted resources to clear a previous backlog, but permanent staffing is needed to avoid repeating the delay.

- Vehicles and IT replacement: The commission seeks four replacement SUVs for field staff (three for rehabilitation, one for compensation); existing vehicles have 82,000–98,000 miles and model years approximately 2006–2011. IT replacement requests total $104,200 ($26,200 monitors; $78,000 laptops and docking stations).

Fiscal notes and governor’s recommendation Peterson said the governor recommended a 5% cost‑of‑living adjustment for commissioners (CEC) — a $22,400 recommendation — and otherwise adjusted several requests. The FY2026 package the commission submitted totals roughly $298,200 ongoing and $554,200 one‑time (all funded from the Industrial Administration Fund); the supplemental requested a net‑zero transfer of $47,000 to allocate a small portion of a prior one‑time appropriation to the Peace Officer Temporary Disability Fund in order to align spending with statutory fund purposes.

Committee questions and follow‑up requests Committee members pressed the commission for more detail. Senator Cook asked whether the $288,000 IRIS maintenance request buys new functionality or only ongoing maintenance; Peterson and Director Gutierrez said the funding is for contracted support to maintain the production system until OITS can provide long‑term support. Representative Tanner and others asked for a written breakdown of total IRIS costs, development vs. maintenance, and what has been paid so far; Gutierrez said the agency will provide a detailed report to the committee.

Representative Petzke asked whether reverted funds (the prior year $4.555 million) could be used to hire staff. Peterson said that is ultimately the legislature’s decision; Gutierrez explained most reversions were trustee and benefit payments and moving those monies to other uses would require special approval because they were appropriated for specific payment purposes.

Representative Mitchell requested a fleet inventory; Peterson and Gutierrez said they would provide a list of current vehicles and replacement needs. Several committee members asked about increased staffing needs after IRIS; the director said IRIS reduced paper handling but shifted preparatory legal work and compliance investigation outputs onto different staff, creating a need for new or reclassified positions to keep cases moving to orderly adjudication.

No formal votes were taken during the presentation. The committee recorded requests for follow‑up documentation: (1) a full cost breakdown and status report on IRIS development and maintenance; (2) detailed information on the IRIS maintenance contract and contractor tasks; (3) fleet inventory and replacement justification; and (4) estimates of what pay adjustments would be required to fill unfunded or hard‑to‑recruit positions.

Ending: Director Gutierrez closed by thanking the committee and asking for support for the FY2026 request, saying the budget aligns with the commission’s strategic plan and performance measures.