Bill
SB 376
Increased funding to the State Auditor to hire 70 staff, upgrade IT and analytics, and expand contracts and space to boost audit capacity, fraud detection, and oversight.
Status & Sponsors
- Bill Number: SB 376
- Short title: Increase Funding to State Auditor
- Sponsors: Senators Sawrey, Overcash, and Hanig (primary)
- Status (as provided): Passed 1st Reading
- Effective date (as proposed): July 1, 2025
- Required report: State Auditor must report to the Joint Legislative Commission on Governmental Operations by December 31, 2025
Purpose / Intent
- Strengthen the Office of the State Auditor by increasing staffing, compensation, contracting capacity, and audit technology to improve financial, compliance, and performance oversight of state agencies; expand fraud detection and accelerate audit delivery.
Key financial provisions (specific dollar amounts)
- One‑time (2025–2026):
- $95,000 nonrecurring — onboarding / recruitment costs for new positions
- $3,000,000 nonrecurring — contract funding to support short‑term audit infrastructure
- $1,000,000 nonrecurring — additional office construction/space
- Total nonrecurring FY2025–26: $4,095,000
- Recurring (each year of the 2025–2027 biennium):
- $6,700,000 recurring — hire 70 additional full‑time staff positions
- $500,000 recurring — 3% staff compensation increase (recruitment/retention)
- $5,000,000 recurring — data analytics / IT modernization and security for audit infrastructure
- Total recurring annual cost: $12,200,000
Key programmatic provisions
- Personnel: authorize funding to create ~70 new full‑time audit positions and fund a modest across‑the‑board pay increase for staff retention.
- Contracts & Facilities: one‑time funds to engage external contractors/consultants and expand physical office space as needed.
- Technology: recurring funding to modernize audit information systems, invest in secure data analytics tools, and strengthen cybersecurity for audit operations.
- Reporting: State Auditor must submit a usage/impact report by Dec 31, 2025 detailing audits completed, fraud/financial mismanagement findings, and effects of technology investments on audit efficiency.
Who is affected
- Primary: Office of the State Auditor (expanded capacity and resources)
- Secondary: All state agencies, departments and institutions subject to audit — likely to face more timely and data‑rich audits and oversight
- Fiscal: State General Fund (appropriations increase); taxpayers indirectly (through potential savings from recovered funds, but also through increased budgetary outlay)
Procedural / timeline notes
- Proposed effective date is July 1, 2025.
- One‑time appropriations are for FY 2025–26; recurring amounts are budgeted annually through the 2025–2027 biennium in the text.
- The December 31, 2025 report provides an early accountability checkpoint for the Legislature to assess implementation and outcomes.
Potential impacts — summary
- Expected benefits: increased audit throughput, improved detection/prevention of fraud, better use of data analytics, improved recruitment/retention of professional audit staff.
- Fiscal tradeoffs: recurring impact to the General Fund (~$12.2M/year under the bill as drafted) plus ~$4.1M one‑time costs; net budgetary effect depends on legislative appropriations and any savings or recoveries attributable to strengthened audit activity.
Compiled from official sources — confirm details with the bill’s official record.
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