Appropriations subcommittee advances House substitute for general‑government budget with cuts, EV spending ban and new digital oversight office funding

The House Appropriations Subcommittee on General Government on March 19 advanced the House substitute for the general‑government budget (House Bill 5601, substitute H1) following a condensed overview from the House Fiscal Agency.

"Overall general government total for all departments and agencies budget is at $4.7 billion," Michael Kassen of the House Fiscal Agency told the panel, calling the figure roughly a $500 million, or 10.3 percent, reduction from the current year. He said much of the decline stems from cuts to internal service (IDG) authorizations (about $367 million) and a reported reduction in general‑fund support of about $142.2 million, along with hundreds of FTE authorizations removed.

The presentation listed several notable policy and boilerplate changes. Kassen flagged a new provision, identified in the substitute as section 254, that would "prohibit the any spending of appropriated funds on electric vehicle charging stations." He also described changes to motor‑vehicle fleet reporting and a prohibition on the lease or purchase of electric or hybrid vehicles in state fleets under revised boilerplate that would require cost comparisons between charging and gasoline.

The House substitute removes several prior appropriations and makes selective increases. Among the department‑level changes, Kassen said the Department of State faces significant reductions largely in restricted funds and that the House omitted a previously contemplated draw on statewide voting‑system replacement lines; he clarified later in questioning that Help America Vote Act (HAVA) funds already awarded remain in work project accounts and would not be forfeited by the House action. The Department of Technology, Management & Budget (DTMB) also faces sizable reductions in IDG authority and a non‑inclusion of funding for certain statewide IT projects and public‑safety communications maintenance.

A contested reallocation drew particular attention. The substitute removes approximately $2.7 million from a restricted lawsuit settlement proceeds fund that had been used in prior years for Flint‑related work, Kassen said, and directs some settlement proceeds as restricted dollars to a new digital oversight office under the legislature. During questioning Rep. Snider characterized that shift as diverting about $1.4 million "out of criminal trials where the state is prosecuting murderers and rapists" and suggested it was being moved to what he called a "pet project of the chair." Kassen responded that the Flint investigation work had concluded and that the settlement proceeds line has since funded other Attorney General activities; he said the legislature is proposing to use restricted proceeds to support the oversight office instead.

The presentation also outlined policy changes affecting disability‑rights administration (including a provision prohibiting spending for a specific line with private or nonprofit service providers), and the addition of a state digital service office (about $3.7 million and 15 FTEs), mirroring an office proposed earlier in related bills (noted in the presentation as House Bill 5504/5505 references).

After the presentation and questions, Rep. Kelly moved to place the House substitute (H1) for House Bill 5601 before the subcommittee. The clerk’s roll call recorded Chair Coons, Brandon Workham, Rep. Kelly and Rep. Maddock voting yes and Rep. Snider voting no. The motion to report HB 5601 (substitute H1) to the House Standing Committee on Appropriations passed, 4–1.

The subcommittee concluded with members requesting further detail on several line items, including the specific organizations covered by the eliminated national association dues (approximately $714,300) and whether the House omission of a proposed data‑analytics platform would risk federal eligibility; Kassen agreed to provide the requested breakdowns and clarified that an increase for that analytics platform was not included in the House substitute.

The subcommittee adjourned with the bill reported to the next committee stage.