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Committee approves contract inflation and statewide cost-allocation adjustments

2123316 · January 16, 2025

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Summary

The committee approved the governor’s recommendations for contract inflation increases and for statewide cost-allocation adjustments affecting multiple agencies; both motions passed with recorded majorities from both House and Senate delegations on JFAC.

The Joint Finance-Appropriations Committee approved two routine, statewide budget adjustments: contract inflation increases and a set of statewide cost-allocation changes.

Analysts described contract inflation as payments for ongoing increases in contracts (for example, lease inflators). The committee approved the governor’s request covering $3,356,400 in total contract inflation increases, with funding split across the general fund, dedicated funds and federal funds as listed in the committee packet. Representative Miller moved the contract-inflation recommendation and the motion was seconded and passed with a combined committee vote recorded as 20 ayes, 0 nays.

Committee staff then presented statewide cost-allocation adjustments — incremental changes in agency budgets to pay for services provided by other state agencies. The packet included a $2,800,000 reduction for the Attorney General, an increase for legislative audit billings, a $1,948,000 reduction for risk management, a $6,800,000 increase for the state controller, and a $3,235,500 increase for the Office of Information Technology Services, among others. The committee adopted the governor’s recommended statewide cost-allocation adjustments by voice and recorded roll call; the combined tally was 20 ayes, 0 nays.

Committee staff noted the agency-level detail for these adjustments is available in the packet (pages 19–26). Both motions will be included in agency maintenance budgets going forward.