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Secretary of State cites surge in business filings, seeks funding for voter pamphlet and overtime
Summary
Secretary of State Phil McGrane told the joint committee his office processed a record number of business filings and is seeking budget authority to cut wait times and fund a voter pamphlet and overtime; he proposed a one-time rescission from prior election system funds.
Secretary of State Phil McGrane told the joint committee that the Secretary of State's Office handled more than 650,000 business filings in FY25 and that the volume has grown by roughly 200,000 filings annually over five years. McGrane said the office generates more revenue than its budget and proposed a one-time rescission of $850,000 from prior one-time election system funding, while warning that processing delays for new business filings have lengthened.
"Our goal is to process these filings in 3 days. Right now we're sitting about 20 days," McGrane said, describing how increased filings have stretched staff capacity in the business-filings unit. He said staffing and IT changes -- including shifting hosting arrangements and managing licensing fees -- are part of the office's plan to manage costs and reduce backlog.
McGrane requested an ongoing $350,000 appropriation for a voter pamphlet and guide (approximately $200,000 for design and $150,000 for mailing) and an ongoing $20,000 internal transfer to cover overtime for post-election audit work rather than compensatory time. He emphasized the distinction between the statutorily required voter pamphlet and a broader voter guide that could include candidate information; adding candidate content would require a policy change.
Lawmakers asked why the Secretary's office has resisted ongoing budget cuts. McGrane said the sustained growth in business filings and the office's role in statewide election systems justify preserving certain resources. When asked about the potential strain of any national discussion about hand counts after a $10 million election-system upgrade, McGrane noted counties conduct tabulation and said the state's responsibilities for certification and cybersecurity would remain significant.
On technology and emerging tools, McGrane said the office is exploring AI applications but has policies to protect sensitive voter data and is proceeding cautiously. The committee did not vote on these requests at the hearing and asked staff to provide further operational details as needed.
