The Senate Finance Subcommittee on the Department of Administration voted Thursday to advance a $349.4 million operating budget recommendation to the full Finance Committee, blocking the governor's plan to decentralize payroll and shared services across state agencies.

The budget includes $99.6 million in unrestricted general funds and authorizes 1,218 positions. The subcommittee accepted some items from the governor's amended budget, including increases for an information technology classification study and $200,000 in program receipts for the Division of Motor Vehicles to cover rising costs of producing license plates, tabs, and registrations.

But the panel rejected two major organizational changes the administration had proposed. The subcommittee denied both the decentralization of payroll services and shared services, citing concerns about implementation risks.

"There was significant concern that accepting either decentralization proposed in this budget cycle carries a high risk, especially in payroll services, where the increased risk of error rates and missed pay to the state employees is at stake," said Ella Adkisson, who staffed the subcommittee and presented the budget report.

The subcommittee directed the department to return with a plan for decentralization of both payroll and shared services by December 1. The report also recommends the full Finance Committee unwind proposed decentralizations throughout the operating budget.

The panel deleted two vacant positions, a deputy commissioner and a chief operations officer, along with associated interagency receipts. It added an Attorney V position to provide leadership and legal support to the Public Guardian section, a request the governor had made in fiscal year 2026 that was not funded.

The subcommittee also deleted a data communications specialist position that had been vacant for more than two years.

Of the total budget, designated general funds represent $36.7 million, other funds total $211.8 million, and federal funds account for $1.3 million. The position count includes 1,188 permanent full-time positions, four permanent part-time positions, and 26 temporary positions.

The motion passed without objection. The recommendation now goes to the full Senate Finance Committee.