DBM faces scrutiny on collections, ARPA closeouts and DPA investments; administration defends priorities

The House Appropriations Committee heard a detailed fiscal 2026 review of the Department of Budget and Management's operating units and the State Reserve Fund, including DLS recommendations and DBM responses on collections, federal relief closeouts and a slate of dedicated purpose account (DPA) initiatives.

Jacob Cash, policy analyst for the Department of Legislative Services, told the committee the fiscal 2026 allowance for the DBM Office of the Secretary is $45 million, a 24 percent decline from fiscal 2025 levels driven primarily by a $15 million government-efficiency initiative that would fund consultant work by Boston Consulting Group under a pay-for-performance contract. Cash said the initiative would pay consultants up to $15 million if statewide savings reach $75 million.

Cash highlighted concerns about the Central Collections Unit (CCU), noting CCU collected a lower share of debts by value in fiscal 2024 (about 8 percent) than in prior years. DLS said CCU did not generate a net profit in fiscal 2024 and that the unit had undertaken cost-containment steps. DBM officials told the committee they are balancing investments in customer service with a return-to-profit objective and plan to add 15 contractual staff and website improvements to help debtors make payments.

Cash also…