House committee hears Department of Public Service budget; gross‑receipts taxes fund operations
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The Department of Public Service told the House Energy committee its FY27 operating budget (~$12 million) is funded primarily by gross‑receipts taxes and that roughly $400 million in federal funds will flow through the agency; members asked for more detail on who pays the tax and for precise costs for a proposed position conversion.
Representative Kathleen James convened the House Energy and Digital Infrastructure committee on Jan. 29 to hear the Department of Public Service present its FY2027 budget and several legislative requests.
Britney Wilson, deputy commissioner of the Department of Public Service, told members the department is "primarily" funded by gross‑receipts tax revenue and said the department’s operating budget is about $12,000,000. Wilson said the department expects roughly $400,000,000 in federal dollars to flow through the agency in coming years, including "roughly $300,000,000 through VCBB." She said the department is operating within those revenues and that the FY27 numbers assume several of the department’s proposals will move forward.
Wilson highlighted one personnel change in the governor’s recommended budget: converting a vacant limited‑service financial controls manager post into a permanent director of administrative services. The department said the reclassification modestly increases the position’s pay and agreed to provide an exact dollar figure for the conversion within a week for members drafting a budget memo.
Members pressed for more specificity on gross‑receipts revenue sources and who pays the tax. Committee members asked DPS to provide a breakdown and statutory citations; DPS cautioned that a court ruling treats certain tax filings as confidential and said it will provide totals and statutory references to the extent allowed.
Committee members also noted that the department has built a roughly $500,000 savings assumption tied to other proposed statutory changes (see related articles) and asked DPS to identify how it would realize those savings if the changes did not pass. Wilson said the department would look at the cost and scope of scheduled work such as the next comprehensive energy plan and other levers including vacancy savings and federal funding shifts.
The committee requested follow‑up information on the gross‑receipts tax payers, statutory references, and the exact personnel cost, and asked DPS to share any legislative language it proposes.
The committee took no formal votes at the Jan. 29 meeting; members closed by requesting the written follow‑ups.