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Senators press DRT language that could 'earmark' whole divisions; OFB to fix technical wording
Summary
Senators warned budget wording for the Department of Revenue and Taxation could effectively earmark an entire division's lump-sum allocation to one function (use-tax collections or business licensing), potentially defunding other branches; OFB said the language reflects the agency's performance-based submission and will work with DRT and legal to correct the verbiage.
During review of the Revenue and Taxation chapter senators focused on how subsection language allocates division lump-sum funding. Senator Sabina Flores Perez flagged subsections b and c, saying the current wording could "take a whole division's allocation and put it to 1 particular…which means there is a high likelihood of not funding the other functions." She pointed to taxpayer services (income tax assistance, business privilege tax branch, electronic data processing, the SWICA function, accounting, and central files) and said nowhere in that division is a dedicated use-tax-collection branch, so the text as drafted could force the agency to reassign funds away from other duties.
OFB responded that the sections reflect the agency's Performance-Based Budget (PBB) submission and that the intent was not to defund other divisions. The OFB presenter said the committee could treat changes as legal and technical corrections and would coordinate with DRT and legal counsel to adjust language. "We will communicate with Rev and Tax and see if we can classify this as legal technical," the chair said, and OFB agreed to make a mark on the bill and speak with the agency.
Senators also questioned operational details in the DRT request — including a $2.2 million emergency sole-source contract used to restore tax operations and a report that DRT expects zero lapses — and asked OFB to follow up on rental costs and vacancy projections (OFB reported roughly 30 funded vacancies). The chair asked staff to coordinate with the agency on clarifying language before the budget is finalized.
Next steps: OFB will work with Department of Revenue and Taxation and legal counsel to rewrite subsections b and c as technical/clarifying language so the appropriation remains a lump-sum funding mechanism without unintentionally restricting other division functions.
