House Finance Division 1 outlines hundreds of position cuts, agency consolidations and program trims

The House Finance Committee’s Division 1 presented its package of changes to the state biennial budget, describing a mix of staff eliminations, administrative consolidations and program reductions intended to close a multi‑hundred million dollar gap in revenue and spending.

Representative McGuire, the division’s presenter, told members the approach was driven by “trade offs” that prioritize some programs over others as revenue shortfalls forced a $700–800 million gap to be reduced. The package removes about 293 positions across state agencies (most in the Department of Corrections), consolidates several small boards and commissions, reduces tourism advertising and shifts some program funding and fee structures across departments.

Why it matters: Division 1 covers central state functions — judiciary, corrections, retirement, justice, natural resources, and administration — so changes affect operations that touch local governments, courts, and service providers. The division’s proposals would produce immediate personnel and program changes if adopted by the full committee and the legislature.

Key program and agency moves described by the division: 1) Corrections: the committee proposed eliminating roughly 191 corrections positions (many unfilled; an estimated ~50 filled positions), trimming roughly 10% of the DOC budget, and shifting winter hiring/position lists as the biennium proceeds. 2) Small boards and appeals bodies: the Housing Appeals Board and the Board of Tax and Land Appeals were recommended for elimination or consolidation; the personnel appeals board, the Right‑to‑Know ombudsman and the public employee labor relations board were combined into a single small‑board structure. 3) Human Rights Commission and some boards: members recommended ending the Human Rights Commission and moving comparable cases to superior court. 4) Liquor Commission: the division recommended removing the enforcement arm from the licensing unit so the commission functions similar to other licensing boards. 5) Tourism advertising: the division cut $14,000,000 from tourism advertising. 6) Fee and revenue changes: several agencies had one‑time or recurring fee increases (Department of Environmental Services, treasurer/tax distributions), and the division recommended level funding meals & rooms distributions to municipalities at FY2025 levels. 7) Judges and court workload: in response to loss of several administrative hearing boards, the division added two superior court judges to handle cases diverted from abolished boards.

Responses and concerns: Committee members raised objections to specific eliminations — most frequently the Housing Appeals Board, the Office of the Child Advocate, the Commission on Aging and cuts affecting regional planning commissions and arts funding — citing local impacts and the services those bodies provide. Several lawmakers also pressed the division on correctional positions and said they wanted additional conversations with the commissioner of corrections before final action.

Process notes and next steps: The division reported many of the changes as “back of the budget” (i.e., not line‑item eliminations but reductions in available appropriations to be implemented administratively) and signaled several items could change during the Senate phase and committee of conference. The full House Finance Committee later voted to adopt the Division 1 package and forward it in the House process.

Ending note: Members emphasized this was a mid‑process product — Division 1’s recommendations were advanced to the full committee but the final budget will depend on later negotiation and any Senate adjustments.