Committee reviews Department of Administration budget; governor's housing fund flagged as at risk

For the record, Frances Lippitt, a budget and policy analyst with Legislative Services, reviewed the Department of Administration’s budget and told the Joint Finance-Appropriations Committee that the department’s appropriation is drawn largely from dedicated funds and that roughly 10% of the department’s appropriation comes from the general fund. Lippitt said the department houses multiple service divisions—public works, document services, purchasing and management services—and provides statewide programs including group health insurance and facility maintenance for state-owned buildings.

Lippitt said the department’s dedicated fund balances grew after the state directed general-fund surplus to capital projects in 2022 and 2023, and that two-thirds of the department’s appropriation is funded by the administration and accounting services fund, which is replenished through fees for services to other agencies. ‘‘The governor’s housing committee consists of 5 appointed members … the fund provides a monthly housing stipend to the governor currently set at 4,551,’’ Lippitt said.

Why it matters: committee members pressed the department about several program risks and funding items that affect other agencies and long-term maintenance obligations. Lippitt and Director Steve Bailey described workload pressures in public works, risk management and the state’s health-plan administration; committee members pressed for clearer fund accounting and for documentation that would show continuously appropriated funds and direct investments currently not visible in the summary tables.

Governor’s housing fund and stipend request

Lippitt told the committee the governor’s housing fund ‘‘has no consistent source of revenue’’ and that the department requested an appropriation in prior budget cycles to restore the fund. She said the department requested $30,000 from the general fund for fiscal 2025 but the legislature did not provide that amount; the department’s submissions for fiscal 2026 include either $60,600 (as Lippitt first stated in the presentation) and a later reference to $660,600 appears in the transcript. The department said that without an appropriation ‘‘the fund will be fully depleted by August 2026.’’ The committee asked for the governor’s housing committee report and legislative history on the fund and statute.

Director Steve Bailey said the Governor’s Housing Committee meets once a year and that ‘‘there was discussion about potentially revisiting a Governor’s mansion, but we haven’t really gained any traction on those discussions’’ and that the committee had recommended continuing the stipend until more substantive discussion occurs on building a governor’s residence. Bailey said property reserved for a mansion remains under a revocable easement with the City of Boise.

Risk management and property valuation

Faith Knowlton (identified in the hearing as the administrator for the division of insurance and risk) told members the office has one analyst responsible for a very large portfolio and that agencies currently enter their own property values into the state system. She said that practice has led to instances of buildings remaining on the insurance roll after demolition and to overstatement of replacement values because agencies sometimes include land in replacement estimates. ‘‘It would be possible for our staff of 1 to be able to manage what the agencies are doing outside, which is the reason we are requesting this position,’’ Knowlton said, explaining the requested property-values analyst would audit insured building values and correct overstatements.

Committee requests and next steps

Members asked the analyst and director for supplemental materials: a breakout of continuously appropriated funds for the retained-risk account and documentation showing direct investments that appear on the agency’s fund summaries. Representative Tanner specifically asked for a listing of ongoing continuous appropriations associated with the retained-risk account. Director Bailey and the analyst agreed to provide additional detail and historical reports on the governor’s housing fund. The department said it will supply the committee with the governor’s housing committee report and additional fund-account detail for committee review.

Ending

Department leaders asked the committee for time to respond to follow-up requests; Director Bailey thanked the committee for its questions and for the opportunity to present the department’s budget and staffing needs.