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Secretary of State defends IT funding request as senators press transparency and spending questions
Summary
Secretary of State Diego Morales and Jerry Bonnet told the Budget Committee the office needs increased IT and business services funding to replace outdated systems; senators pressed about staffing costs, bank chargebacks, overseas travel, vehicle purchases and potential campaign contributions from vendors.
During the State Budget Committee meeting, Secretary of State Diego Morales and Jerry Bonnet explained the Secretary of State's request for additional funding for IT systems and business services, saying the existing systems are outdated and replacement work is scheduled to complete by the end of FY26. Bonnet told the Committee that the $2,100,000 request for IT and business services was "not" for bonuses or salary increases but to recover prior staffing costs and cover consultant contracts needed to meet statutory requirements.
Senator Fady Qaddoura asked for historical expenditure data to justify the increase; Bonnet said the office has provided materials and cost estimates in RFPs. Senator Chris Garten asked about "bank returned payment chargebacks" on the Secretary's financial statement; Bonnet explained third-party business filings can generate chargebacks when checks do not clear and said there are collections procedures to recover the money.
Members also questioned Secretary Morales about recent travel, vehicle purchases and absences from budget hearings; Senator Garten said the vehicle purchase cost nearly twice the salary of the "average Hoosier" and asked whether contractors had contributed to the Secretary's campaign. Secretary Morales responded by defending his work ethic and saying he travels to meet constituents across the State; he acknowledged contractors have contributed to his campaign. Senator Qaddoura said he was disappointed the Secretary had missed a Budget Hearing and urged greater transparency.
The Committee did not take formal action on the Secretary of State's appropriations request during this meeting. Members asked for more detailed staffing and expenditure documentation prior to any funding decision.
