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State Controller moves LUMA costs onto the main budget; JFAC approves $15.24 million reclassification
Summary
JFAC approved appropriations and positions to bring the LUMA enterprise accounting project costs onto the state controller's FY2026 budget, a change analysts said is a reclassification of existing continuously appropriated spending rather than new ongoing state spending.
The Joint Finance-Appropriations Committee on March 12 voted to bring LUMA-related costs onto the State Controller's FY2026 budget, approving additional positions and operating dollars to replace a continuously appropriated account now expiring.
The motion, moved by Representative Petske and seconded by Senator Galloway, added seven FTE (enhancement 1) and funding for LUMA personnel, dedicated funds for computer service center operating costs related to LUMA (enhancement 2), and a general fund appropriation for computer service center charges (enhancement 3). The committee also approved two financial specialist positions for shared services, a communications manager position for transparency initiatives, and an internal reallocation of leadership effort. The total action moved an additional $10,051,300 from the general fund and $5,191,700 from dedicated funds for a combined $15,243,000 and 10 additional FTE.
State Controller office analysts told the committee that the appropriation largely moves existing spending that had been run through a continuously appropriated account onto the standard budget; the office said it is not new spending and in fact represents a reduction compared with actual fiscal year 2024 expenditures once LUMA costs are included on budget.
The committee approved the budget and associated language clarifying that indirect-cost recovery revenues will be transferred to the general fund at the end of the fiscal year and authorizing an accounting correction for a prior-year erroneous billing to the Division of Veterans Services.
The appropriation passed in committee (15 ayes, 3 nays, 2 absent/excused). Committee members framed the vote as an accounting and transparency step to place LUMA costs directly on the controller's budget rather than in a continuously appropriated account.
Ending: The committee's approval moves the LUMA enterprise accounting project and related staffing explicitly onto the controller's FY2026 budget; the office said this will increase transparency while reducing reliance on continuous appropriation authority.
