Department of Government Operations outlines 5% reduction plan, warns personnel and service impacts
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Summary
Department staff told the Legislature’s Government Operations Committee that a 5% general-fund reduction mainly affects personnel and contract obligations, limiting other levers for savings; the presentation listed targeted ISF and program cuts and an internal transfer to shore up the archives budget.
The Department of Government Operations presented a prioritized list of five budget requests and a 5% general-fund reduction plan to the Legislature’s Government Operations Committee, saying most unavoidable costs are personnel and long-running vendor contracts.
Unidentified Department presenter told the committee that only about “60,000,000 ish in general fund dollars” supports the department and that contracts and personnel leave little wiggle room for cuts. The presenter said “58% of their budget is all personnel” in the Division of Finance and described how many maintenance and software contracts are fixed costs that cannot be simply reduced.
The department said it applied the same 5% exercise to internal service funds (ISFs) even though the statutory 5% target addresses only general-fund dollars, noting other state agencies have relied on ISF reductions to meet their targets. Specific proposed reductions cited in the presentation include $160,000 elimination of an employee-recognition program (Motivosity) in DTS, $100,000 cut to contract employees on the citizen portal project (which will extend completion timelines by six months to a year), and phased reductions to travel, conference registrations and on-call IT hours affecting finance operations.
The presentation also described an internal reallocation that would transfer available administrative-rules on-lapsing funds to the State Archives, which the department said “operate[s] on a shoestring” and needed help. Legislative staff will consider statutory language required to move or change some duties tied to those funds.
During the briefing, the committee approved the minutes of 01/27/2026 on a voice vote after a member moved that motion; the chair announced the motion passed with aye and no nay recorded.
The department said most cuts are painful and warned that nearly every reduction will affect stakeholders or slow operations. The department pledged to follow up with additional cost-estimate information requested by lawmakers, such as an estimate of salary-processing savings if payroll frequencies change.
The committee concluded the docketed testimony and moved to routine technical items and adjournment.