Idaho Department of Finance seeks six hires to bolster IT, cybersecurity exams; governor declines two positions

The Idaho Department of Finance asked the Joint Finance‑Appropriations Committee on Jan. 21 for six ongoing full‑time positions and $816,600 drawn from state regulatory funds to expand examination and investigation capacity, including roles focused on IT, cybersecurity and forensic accounting.

The request aims to add an IT examiner and a financial examiner in the Financial Institutions Bureau, two financial investigator 3 positions focused on IT for mortgage and consumer services, a cybersecurity‑specialist investigator in the Securities Bureau, and a forensic accounting specialist in the Securities Bureau. The department also proposed one‑time capital outlay for laptops and portable field monitors recommended by the Office of Information Technology Services.

The governor’s recommendation would fund every item except two of the requested financial investigator 3 positions for the Consumer Finance Bureau, the budget analyst told the committee. "The governor recommended all the items I just described with the exception of line item 3," Noah Peterson, budget and policy analyst with the Legislative Services Office, said during the presentation.

Why it matters: the additional staff would expand the department’s ability to examine chartered financial institutions, non‑depository consumer finance providers and securities firms for cybersecurity vulnerabilities, fraud and other criminal activity. Department director Patty Perkins told the committee the workload has risen, with new tactics such as cryptocurrency and cross‑jurisdictional schemes increasing investigative complexity and demand for specialized tools and expertise.

Perkins described a rise in schemes targeting older Idahoans. "There is a huge increase in cybercrime. And, we have a particular, concern about the elderly population in the state," Patty Perkins, director of the Department of Finance, said. She said the department has partnered with the Idaho State Police on tools for tracing fraud proceeds and that some tools are provided by ISP for joint investigations.

Committee members pressed for outcome measures and more concrete data before approving additional permanent staff. "Do we have any numbers that justify all these new FTPs? … I would like those numbers," Sen. Cook said, asking for metrics that would allow the committee to measure return on investment if the positions are approved. Peterson said supporting data exists but was not available in the moment; Perkins agreed to provide a fuller workload and outcomes report to the committee.

Budget details: the six requested positions would be paid from the department’s state regulatory funds. Stated salary assumptions included $121,300 (100% of policy for salary grade P) for the IT examiner and the financial examiner, and $82,500 (100% of policy for salary grade M) for investigator‑level positions and specialist roles. One‑time OITS hardware costs in the request totaled about $52,600 (laptops $42,000; docking stations $6,100; portable field monitors $4,500).

Background: the Department of Finance oversees the Financial Institutions Bureau, the Consumer Finance Bureau and the Securities Bureau and had 72 full‑time positions approved. The agency has historically drawn nearly all of its appropriation from its regulatory funds; personnel accounted for about 78% of fiscal 2024 expenditures.

Next steps: Perkins said the department supports the governor’s recommendation and will provide the committee with additional data on cybercrime and elder‑targeted fraud to clarify workload and expected outcomes for the requested positions.

Ending: The committee did not take a vote during the Jan. 21 session. Members asked the Department of Finance to submit case counts, outcomes and workload measures to inform further consideration during the budget cycle.