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House Energy committee readies memo asking Agency of Digital Services for ISF deficit plan under H.951
Summary
Committee members reviewed and edited a follow‑up memo to Finance Commissioner Adam Gresian requesting that the Agency of Digital Services, with DFM, file a written plan by Jan. 15, 2027 describing how to reduce the deficit in the information technology internal service fund and provide 10 years of revenues/expenditures data.
Rep. Kathleen James said April 29 that the House Energy and Digital Infrastructure committee will send a follow‑up memo to Finance Commissioner Adam Gresian asking the Agency of Digital Services (ADS), in consultation with the Department of Finance and Management (DFM), to produce a written plan addressing the deficit in the information technology internal service fund (ISF).
"In section E105.1 of H.951 as passed the House ... [it] requires ADS in consultation with DFM to provide a written plan to relevant legislative committees on or before January 15, 2027," Rep. Kathleen James said as she read a condensed version of the provision for members.
Why it matters: The committee said the report should show how to reduce the ISF deficit and include recommended changes as well as detailed information on revenues and expenditures and the fund balance at fiscal‑year closeout for the previous 10 fiscal years. Members said that level of historical data is necessary to assess the fund’s trajectory and to evaluate policy options.
Committee members raised two principal concerns during the drafting session. First, several members warned that the committee still lacks a clear, single total for ADS‑related expenses and asked the letter to emphasize transparency on what counts as an ISF expense. Second, members questioned whether separately authorized accounts—such as an IT modernization fund mentioned during the discussion—are captured by the ISF reporting requirement or are treated separately; the committee did not resolve that point in the meeting.
The chair said she would cite the House‑passed language (H.951, Section E105.1) in the memo and circulate a tightened draft to staff for one more accuracy check before sending it to Commissioner Gresian. "Even if this language isn't in the budget when it reaches the governor's desk, this is testimony we'd like to request," she said, urging the committee to ask for the report regardless of final enactment status.
Clarifying details from the discussion: the committee intends to ask for a plan due on or before January 15, 2027, that addresses how to reduce the ISF deficit, recommends changes, and includes revenues/expenditures and estimated fund balances at fiscal‑year closeout for the previous 10 fiscal years. Members noted uncertainty about whether that reporting will include expenditures routed through a separate IT modernization fund; the transcript did not resolve how those funds are classified.
Next steps: The chair said she will trim the draft, send it to staff (Lisa) to confirm the technical language, repost the letter on the committee web page, and then forward the memo to the finance commissioner.
