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Officials outline SWICAP allocations, central-service billing and two-year lag
Summary
A staff briefing explained the statewide cost allocation plan (SWICAP) that spreads central-service costs across agencies, described how billings are calculated and noted a two-year lag between costs and budget recovery.
A staff member explained the statewide cost allocation plan (SWICAP) to the Joint Finance and Appropriations Committee on Jan. 7, saying the mechanism allocates central service and direct-billing costs across state agencies and fund sources and therefore affects many agency appropriations.
Jared Tetrault (staff) said SWICAP covers services provided by three central service offices — the attorney general, the state controller and the state treasurer — and a set of direct-billing activities such as risk management, building services, legislative audit billings and information-technology services. "There’s always a two year lag," he said, describing how appropriations provided to central service agencies in one biennium are recovered from user agencies in the following biennium’s budget adjustments.
Tetrault summarized the mechanics that determine how…
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