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Statewide cost-allocation (SWICAP) explained to JFAC: $79.8M in central service recoveries spread across agencies
Summary
Jared Tetrault briefed the committee on the statewide cost allocation plan (SWICAP), explaining how central service agency costs (attorney general, state controller, state treasurer) and direct billings are recovered and appear as budget adjustments in later biennia.
Jared Tetrault, budget analyst, briefed the Joint Finance and Appropriation Committee on Jan. 7 about the statewide cost allocation plan (SWICAP), the process states use to allocate central service and other shared costs across agencies.
Tetrault said SWICAP is a formal plan the Division of Financial Management prepares and submits to the federal cognizant agency (HHS for Idaho) describing how the state recovers central-service costs from eligible funds and agencies. "We need a state controller, and we need accurate payroll and accurate accounting just as much as you do when it comes to the expenditures of federal funds," he said.
He explained there is a two-year lag between service-year costs and budget adjustments: costs incurred in fiscal year X are typically calculated in year X+1 and considered for the budget in X+2. The three primary central-service cost pools are the Attorney General's Office (billings based on billable hours excluding the criminal division), the State Controller’s Office (based largely on payroll and transaction counts), and the State Treasurer (based on warrants issued). Direct-billing items include risk management (insurance), building services, IT services and Legislative Services Office audits.
Tetrault gave illustrative numbers: roughly $79.78 million total in SWICAP-related appropriations across central services and direct billings, with the treasurer and controller recoveries usually nearly fully recovered to the general fund and the attorney general’s recovery historically around 80% recovered. He stressed that the SWICAP charges are intended to be proportional — an agency’s share should reflect its actual usage or share of statewide activity.
He showed how those adjustments appear in agency budgets (for example, an agency might see a decrease in attorney-general billing but an increase in controller fees), and reminded the committee that delegated authority and statutory requirements for the plan appear in Idaho Code 67-3531. He encouraged legislators to ask analysts for the underlying breakout if they need details such as payroll counts, legal-hours drivers, or specific insurance components.
Committee members asked for clearer reports on percentages and how funds convert through the process. Tetrault said staff will work on a more detailed committee report showing percentages and the source-of-change calculations.
The presentation concluded with the reminder that although SWICAP adjustments typically change only a small amount in any given budget decision, the base program being reallocated totals tens of millions of dollars and affects many agencies’ appropriations.
