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JFAC approves contract-inflation adjustments totaling $3.36 million
Summary
The Joint Finance-Appropriations Committee approved the governor’s request to fund ongoing contract inflation increases (for leases and other contractually defined escalators) for FY2026, totaling $3,356,400 across general, dedicated and federal funds.
The Joint Finance-Appropriations Committee approved adjustments to cover ongoing contract inflationary increases (for example, contractual lease escalators) for FY2026, agreeing to the governor’s recommended funding.
Representative Miller moved the motion to include the governor’s FY2026 recommended adjustments to operating expenditures and capital outlay for contract-defined inflationary increases, with a total of $3,356,400 (comprised of $1,291,500 from the general fund, $935,400 from dedicated funds and $1,129,500 from federal funds). The motion was seconded and, following a roll-call process, passed with a combined vote of 20 yeas and 0 nays.
Staff directed members to budget details in the packet that break down the amounts by agency. Analysts noted the dollar amounts are relatively small in the context of statewide spending but are required to honor existing contracts and leases with built‑in escalation provisions.
Votes at a glance
- Motion: Adjust operating expenditures and capital outlay to cover ongoing increases defined in contract lease rates and similar contract escalators — moved by Representative Miller; seconded. Outcome: Passed. Combined vote: 20–0.
Ending
The approved funding will be included in agency maintenance budgets and covers contractual obligations that would otherwise create unfunded cost increases in agency plans.
