House Appropriations reviews governor’s office and Finance & Management FY26 budgets; clean water fund flagged for shortfall

House Appropriations Committee members on Feb. 18 heard the governor’s office and Department of Finance and Management proposed budgets for fiscal 2026, with Commissioner Adam Gresham outlining a modest increase in both budgets, a reallocation of internal charges across cabinet agencies and an expected shortfall of roughly $110,000–$120,000 to the Clean Water Fund tied to a downgraded meals-and-rooms tax forecast.

The presentations matter because Finance and Management controls statewide budgeting, accounting systems and several interdepartmental billing arrangements that affect how agencies are funded and how limited-term positions for enterprise resource planning (ERP) and grants management are paid. Commissioner Adam Gresham said these mechanics, plus rising retirement, medical benefit and IT charges, are the main drivers of budget increases.

Gresham, commissioner of the Department of Finance and Management, said the governor’s office budget shows a 5.4% overall increase and that Finance and Management’s budget is up about 6% (the administration targeted a 3% current‑services increase). He said much of the added…