Department of Finance requests six examiners to bolster cybersecurity and elder-fraud investigations

Department of Finance director Patty Perkins and Legislative Services Office budget analyst Noah Peterson told the Joint Finance Appropriations Committee on Jan. 21 that the agency is requesting six full‑time positions and $816,600 from state regulatory funds in fiscal year 2026 to expand its examination and investigation capacity, with a focus on information‑technology and cybersecurity work.

The request is intended to add specialized capacity across the department’s three bureaus — the Financial Institutions Bureau, the Consumer Finance Bureau and the Securities Bureau — and includes two IT‑focused examiners, two financial investigator 3 positions (IT examination focus), an IT examiner and a forensic accounting specialist. Noah Peterson, budget and policy analyst with the Legislative Services Office, told the committee the package appears on LBB page 5‑025 and that the governor recommended the items except for the two Consumer Finance Bureau investigator‑3 positions.

Why it matters: Director Patty Perkins said the request responds to a growing problem of cybercrime and fraud targeting Idahoans, particularly older residents. “There is a huge increase in cybercrime,” Perkins said, and the department has seen cases in which elderly residents were swindled by phone and online schemes. Perkins told the committee the department has been partnering with the Idaho State Police and other law enforcement to “follow the money,” and that specialized staffing and tools are needed to investigate crypto and other complex fraud schemes.

The budget context: The Department of Finance is funded primarily from dedicated regulatory funds. Peterson told the committee the department has 72 full‑time personnel approved and that personnel costs made up about 77.8% of total FY2024 expenditures; operating costs were about 21% and capital outlay about 1.2%. The department averages roughly 92.5% of appropriation spent over recent fiscal years. Two of the agency’s dedicated funds — the mortgage recovery fund and the securities investing/training fund — are statutorily limited to $50,000 of usage each year for administration and investor education, Peterson said.

Enhancement details: The FY2026 enhancement request totals six FTP and $816,600 from state regulatory funds. Key items specified to the committee include: - One IT examiner for the Financial Institutions Bureau at a salary budgeted at $121,300 (100% of policy for salary grade P). - One additional financial examiner (non‑IT) for the Financial Institutions Bureau at $121,300 (100% of policy, grade P). - Two financial investigator 3 positions focusing on IT examinations — one aligned to mortgage and credit services and the other to consumer services — budgeted at $82,500 each (100% of policy, grade M). - One securities bureau examiner specializing in cybersecurity at $82,500 (grade M). - One forensic accounting specialist for the securities investigations team at $82,500 (grade M). Peterson also listed a one‑time capital request recommended by the Office of Information Technology Services for $52,600 of hardware (laptops, docking stations and portable field monitors) and additional one‑time capital for desks and office equipment.

Governor’s recommendation and committee questions: Peterson said the governor recommended all requested items except the two Consumer Finance Bureau financial investigator 3 positions (the two IT‑focused investigator 3s). Senator Maryanne Wintrow (Senator Wintrow) asked Perkins why the governor had not recommended that specific line item, noting the department’s work on elder‑fraud cases and cybersecurity. Perkins recounted personal and agency examples of frauds targeting older Idahoans and said the department has limited investigative staff and needs specialized technicians and tools; she said the Idaho State Police has purchased systems the department can use, but that the volume and technical complexity of cases continues to grow.

Senator Cook pressed the department for measurable data justifying the new FTPs and requested baseline numbers so the committee could assess return on investment if the positions are approved. Perkins agreed to provide more detailed supporting data to the committee.

Other fiscal notes: Peterson said the department consistently spends above 90% of its appropriation and that recent maintenance changes to the base budget have largely reflected employee compensation and benefit adjustments. The department added net two FTP in FY2024 after HR consolidation reduced one FTP but three positions were added that year.

Next steps: Peterson concluded his presentation and Perkins offered to supply the committee with additional case and workload data. The committee did not take a formal vote on the request during the hearing.