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Statewide cost allocation (SWICAP) explained: how central-service billings flow through agency budgets
Summary
Jared Tetrault of the legislative budget office walked JFAC through the statewide cost allocation plan (SWICAP), explaining how central service agencies' costs (attorney general, state controller, state treasurer, ITS, risk management and others) are allocated and recovered across funds with a two-year lag in the budget cycle.
Jared Tetrault, budget analyst, provided the Joint Finance and Appropriations Committee a primer on the statewide cost allocation plan (SWICAP) and how central-service costs are recovered across state agencies.
What SWICAP is: Tetrault said SWICAP is both a procedural plan and a federal-facing document the Division of Financial Management prepares and submits to the cognizant federal agency (Health and Human Services for Idaho). The plan allocates costs from central service providers' — notably the attorney general's office, state controller and state treasurer's offices' and certain direct-billing services such as risk management, building services, Legislative Services audit billings and Information Technology Services (ITS).
How the budget shows SWICAP impacts: Statewide allocations are reflected as adjustments in agency appropriations. DFM calculates each eligible agency's share based on cost drivers: attorney general billings by billable hours (excluding criminal division), controller recoveries by active employees/payroll transactions, treasurer recoveries by number of warrants issued, and ITS and risk-management allocations by documented cost bases. Tetrault explained the process runs on a two-year lag: appropriation funding provided in year N supports services in year N and the recovery is reflected in the budget for year N+2 after actual usage is tallied.
Size and recent changes: Tetrault said SWICAP-associated appropriations total roughly $78 million statewide in the portfolio he covered. Examples cited: - Office of the State Controller: $4.8 million appropriation in 2023, estimated to be fully recovered to the general fund in collections. - Office of the State Treasurer: $966,000 appropriation in the same period. - Attorney General: about $21.8 million in general-fund appropriation, with roughly $19.8 million returned through allocation recoveries (attorney general recoveries typically do not reach 100% because certain attorney-general functions are excluded from billing).
Direct-billing items and agency-level effects: Tetrault noted that agencies will see line-item increases or decreases depending on the year's activity (for example changes in legal hours or payroll headcounts). Agencies may question allocation splits; DFM notifies agencies each October of the calculated adjustments so agencies can review and request clarifications before the appropriation is finalized.
Why it matters: SWICAP ensures central services are equitably funded across state funds and prevents the general fund from bearing all centralized costs. Committee members were advised to watch budget presentations for SWICAP line items and to ask analysts for breakdowns of what drives changes in individual agency allocations.
Ending: Tetrault said he will provide the committee a more detailed percentage report and can break allocations down by cost category on request.
