Committee backs bill to require legislative approval for permanent budget transfers between units

The House Appropriations Committee voted to recommend do-pass on Senate Bill 146 after testimony from the bill sponsor and proponents explaining the measure’s goal: to limit unilateral, permanent reallocation of budgeted funds or staff between budget units without returning to the Legislature for approval.

Senator Chris Carr, the bill’s sponsor, described the measure as a check on post-session adjustments that change the base budgets the Legislature sets. “This establishes those safeguards and prevents unauthorized fund reallocations after the budget approval, creating a check and balance system similar to how you would initially review appropriations and set the budget here,” Carr said. He gave the Board of Regents as an example, saying agency leadership should not be able to move permanent base resources from one university budget unit to another without legislative review.

Proponents including Steven Kohler told the committee the bill balances flexibility and accountability. Kohler said agencies would still be able to respond quickly to one-time needs while permanent, ongoing reallocations would require legislative review.

Committee members pressed for clarity about ordinary operational transfers and emergency actions. BFM staff (Stephen Koehler) told the committee agencies would retain the ability to make one-time transfers to respond to emergent needs but would need committee approval to make changes that alter future base budgets. He estimated the number and dollar impact of recent base transfers have been small relative to the total budget and could be considered during already scheduled May/June meetings.

Members cited past examples where post-session reallocations changed staff and funding between units and said the bill would require departments to justify that a change should alter the long-term base budget. Senator Carr said the bill does not prevent swift action for urgent operational needs; it restricts only permanent base transfers.

Representative May moved to pass the bill; Representative Munckey seconded. The committee recorded an affirmative vote and reported the bill out of committee (vote recorded in committee roll call; one member excused).

Supporters described the bill as a measure to protect legislative intent and increase oversight; opponents waived rebuttal. The bill now proceeds to the next stage in the legislative process.