Analysts recommend $100,000 restriction, question vacancy and salary assumptions in DBM personnel budget

For the record, my name is Jacob Cash. I'm a budget analyst for the Department of Legislative Services, and I'll be presenting the budget for the Department of Budget and Management Office of Personnel Services and Benefits, including the transition of retiree prescription drug coverage to Medicare Part D.

The Department of Legislative Services (DLS) told the Appropriations Committee that the fiscal 2026 allowance for the Department of Budget and Management (DBM) personnel program is $326,500,000 and that much of that funding will be transferred out to support statewide salary actions. DLS flagged multiple issues in the personnel budget: rapid growth in prescription drug spending driven by specialty medications, timing gaps in agency reporting, an ongoing high number of vacant positions relative to budget assumptions, and potential differences between agency-requested funding for health insurance and the amounts shown in agency appendices.

DLS highlighted prescription drug spending as a major driver of cost growth. "Diabetes is a big driver of both healthcare and prescription costs, with antidiabetic drugs being the largest share of prescription drug costs for some time," Jacob Cash said, noting large growth in antidiabetic medication costs in fiscal 2023 and 2024 and changes in utilization after a rule limiting GLP-1 coverage in quarter 3 of fiscal 2024. DLS reported overall prescription drug costs up 13.6% from a year earlier and said three quarterly reports required by annual…