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Committee approves contract inflation increases and statewide cost‑allocation adjustments
Summary
The Joint Finance‑Appropriations Committee approved governor‑recommended adjustments for contract inflation and for statewide cost allocations that shift billing and fee responsibilities among state agencies; both motions passed by majority from both chambers and will be included in agency maintenance budgets.
The Joint Finance‑Appropriations Committee voted Friday to include the governor's recommended contract inflation increases and a package of statewide cost‑allocation adjustments in the fiscal‑year 2026 maintenance budget.
Representative Miller moved the contract inflation package, which the committee described as adjustments for ongoing increases defined in contracts (for example, rolling lease escalators). The motion covered $3,356,400 in total increases, allocated among the general, dedicated and federal funds; the committee approved the motion on a roll‑call vote with full support from both the Senate and the House.
On the statewide cost allocation item, the committee approved the governor's recommendations to adjust agency billings for central services and internal fees. The packet described a set of net changes by agency that included a $2.8 million reduction in Attorney General billings, a $1.948 million reduction for risk management, a $6.8 million increase for the state controller, about $3.235 million for the office of information technology services, and other smaller adjustments. The committee adopted the statewide cost allocation motion by unanimous roll call in both chambers; staff said the package will be applied agency‑by‑agency in the maintenance budgets.
Both items were described by analysts as routine, ongoing adjustments that align agency budgets with contractual obligations and with central service charge estimates.
