Joint Finance reviews Department of Administration budget; governor's housing fund faces depletion by August 2026

At a Joint Finance-Appropriations Committee meeting, legislative analysts and Department of Administration officials reviewed the department's 2026 budget and warned the Governor's Housing Fund will be exhausted by August 2026 unless the legislature provides an appropriation.

The department provides central services for state agencies — including facilities maintenance, procurement, group insurance administration and the division of public works — and draws most of its revenue from dedicated funds paid by client agencies. "The governor's housing fund . . . provides a monthly housing stipend to the governor currently set at $4,551," Legislative Services budget analyst Frances Lippitt told the committee. Lippitt said the department requested a $30,000 general‑fund appropriation for fiscal 2025 that the Legislature did not approve and is now requesting $60,600 for fiscal 2026 to restore the fund's balance. Without additional appropriation, the fund will be depleted in August 2026, Lippitt said.

Why it matters: the Department of Administration centralizes key services used across state government, including security and maintenance of state buildings, statewide procurement, and management of the state's group insurance plan. Shortfalls in dedicated funds can drive…