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JFAC approves $3.36 million for ongoing contract inflation increases
Summary
The Joint Finance-Appropriations Committee approved the governor's recommendation to fund ongoing contract-defined increases (for example, lease inflators) totaling $3,356,400 and forwarded the change to the next stage of budget work.
The Joint Finance-Appropriations Committee approved an adjustment to budgets to cover ongoing increases specified in contracts, such as lease escalators.
Representative Miller moved to include the governor's FY2026 recommendation adjusting operating expenditures and capital outlay for ongoing increases defined in contract lease rates. The motion covered an aggregate increase of $3,356,400, broken down as $1,291,500 from the general fund, $935,400 from dedicated funds and $1,129,500 from federal funds. Senator Woodward seconded the motion.
Committee members voted unanimously (20-0) to adopt the recommended contract inflation adjustments. The analyst noted detailed agency-by-agency amounts appear later in the packet for members' review.
Why it matters: these contract-driven increases are legally binding obligations under existing contracts and must be budgeted to maintain agency operations and avoid defaults.
Vote: Motion adopted; Senate delegation 10-0; House delegation 10-0; total 20-0.
