JFAC hears Department of Finance request for six examiners to address cybersecurity and elder fraud; governor trims two positions

The Joint Finance-Appropriations Committee heard a budget presentation Jan. 21 from the Department of Finance requesting six new full‑time positions and $816,600 from state regulatory funds to expand IT and investigative capacity.

The request, presented by Noah Peterson, budget and policy analyst with the Legislative Services Office, would add an IT examiner, a financial examiner, two financial investigator III positions focused on IT examinations (one on mortgage/credit services and one on consumer services), a cybersecurity specialist for the securities bureau and a forensic accounting examiner. The package also includes one‑time capital outlay of $52,600 for laptops, docking stations and portable field monitors recommended by the Office of Information Technology Services.

The governor’s recommended budget included all requested items except the two financial investigator III positions for the Consumer Finance Bureau, Peterson said.

Why it matters: Committee members expressed concern about rising cyber fraud and the vulnerability of older Idahoans. Senator Melissa Wintrow, who asked the first substantive question of the agency director, said department staff have been “really excelling in pursuing criminals” who prey on elderly people and urged more detail tying the requested positions to measurable outcomes.

Department of Finance Director Patty Perkins told the committee the agency has seen a “huge increase in cybercrime” and emphasized the department’s work with the Idaho State Police and other law enforcement to follow money flows in fraud cases, including those involving cryptocurrency. Perkins said the office has a small investigation staff and that some law‑enforcement partners have purchased specialized tools the department uses to assist cases.

Budget details and staffing: Peterson said the six‑FTP enhancement totals $816,600, budgeted from state regulatory funds. Salary examples in the request include two positions budgeted at salary grade P ($121,300 at 100% of policy) and several investigator roles at salary grade M ($82,500 at 100% of policy). The governor did not recommend the two consumer‑focused financial investigator III positions highlighted in the agency request.

Lawmakers asked for evidence: Senator Cook asked for clear baseline data and metrics that would allow the committee to judge return on investment after a year. Peterson said he did not have specific FBI cybercrime damage figures in hand but that the department could provide workload and case‑volume data; Director Perkins agreed to supply a more detailed report on cases, workload and outcomes.

Agency context: Peterson’s presentation noted the Department of Finance operates a single program with 72 full‑time personnel across three bureaus — Financial Institutions, Consumer Finance and Securities — and funds its operations primarily through state regulatory fees. The department historically spends above 90% of its appropriation and cited a 92.5% average expenditure rate over recent fiscal years.

What the committee will do next: No formal vote was taken during the Jan. 21 hearing. Committee members requested follow‑up materials from the Department of Finance detailing case counts, examples of enforcement outcomes against elder fraud, and any quantifiable measures the department can use to evaluate the six‑FTP enhancement if it is approved.

The department said it supports the governor’s recommendation and will provide the requested metrics to the committee.