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Committee language preserves ARPA reporting, directs transfers to cover IT shortfalls
Summary
Appropriators preserved reporting and reestablishment language for ARPA projects, clarified reversions, and included provisions to transfer certain technology-modernization interest to the general fund and to use interest to help cover a cited $25 million deficit in the IT internal service (CIT) fund.
The committee’s language package maintains reporting authority for reestablished ARPA spending, strikes obsolete reversion language, and includes a pair of adjustments aimed at consolidating and stabilizing technology-related funds.
Grady Nixon explained that prior budget language required reversion and reserve of unused ARPA funds but that some cited ARPA funds will no longer exist in that format; the proposed amendment preserves reporting on reestablished spending authority and removes references to funds that will have been reverted. Nixon summarized the intent: "this would just maintain that that spending authority report back continues" and clarified that truly remaining ARPA funds would still have to be returned to the federal government if not spent by the statutory deadline.
Separately, the packet includes two treatments of technology-modernization money: one provision would transfer an estimated $9.5 million of interest earned on the Technology Modernization Special Fund (FY23–25) to the general fund as one-time revenue; another provision (E105) would allow future interest on the technology fund to be used to offset negative balances in the information-technology internal service (CIT) fund, cited in the meeting as an approximate $25 million shortfall.
Why it matters: the ARPA language preserves legislative oversight and reporting on how reappropriated funds are being used; the tech-fund changes both realize one-time revenue and create a mechanism to help service an ongoing IT internal-service deficit.
What’s next: Joint Fiscal will reconcile effective dates and treatment of prior-year interest and prospective interest in final bill text. Committee members flagged the timing of any effective date to avoid a one-year general-fund hit of roughly $1 million if interest retention is accelerated into the current fiscal year.
