Agency of Administration presents FY2026 budget overview; few major new general‑fund items

The Agency of Administration presented its proposed FY2026 central office budget to the Vermont House Appropriations Committee on Tuesday, Feb. 11, emphasizing that the request is largely “business as usual” while highlighting a handful of new and restructured items.

Nick Bramer, chief operations officer for the Agency of Administration, opened the presentation and described the secretary’s office budget as the “backbone component of state government” that often houses initiatives that later move to other agencies. He told the committee the FY2026 package is “fairly noncontroversial this year” but includes accounting and structural changes intended to increase transparency.

Why it matters: the secretary’s office centralizes functions that affect many parts of state government — finance, human resources, recovery work after floods, and risk and insurance administration — so changes in its appropriation can affect how services are funded and delivered across state departments.

Bramer outlined the central office components the committee was being asked to consider: the secretary’s central office staff, the chief performance office, the chief prevention officer (Monica Hutt), the state recovery office (led by Doug Farnham), the financial services division (led by Holly Barrett), and the Office of Risk Management (led by Rebecca White). Bramer said one notable structural change is elevating the Office of Racial Equity to its own appropriation so its staffing and funding show up separately in the budget materials.

On personnel and one new ongoing role, Bramer said the administration is adding a chief communications officer position to serve as “a statewide point person” primarily to advance compliance with federal standards on digital accessibility. Bramer said Rebecca Kelly, who is moving from the governor’s office, will fill that role and that the position’s funding will be administered through the Department of Human Resources via an interdepartmental transfer.

The presentation also highlighted the agency’s role in administering the state’s internal service funds and insurance premiums. Bramer described the state’s three internal service insurance funds (workers’ compensation; general liability and auto; and “all other” insurance) and said actuarial work sets yearly premium charges that are then allocated across departments. He told members those premiums are increasing in FY2026, driven by market conditions and claims experience.

Bramer described two clean water items included in the secretary’s office request: a final $25,000 incentive payment to St. Albans Town tied to a municipal stormwater utility and an $850,000 increase (for $875,000 total) intended as a state match pot to pursue competitive federal clean water grants. He said the Clean Water Board’s recommendation and the statutory process historically drive the state’s clean water allocations and that the board’s work is highly public and collaborative.

Bramer identified three one‑time general‑fund requests in the secretary’s office budget: $220,000 for the Ideal Vermont program (municipal equity partnerships), $1.1 million to fund the Truth and Reconciliation Commission through FY2026, and $3 million for the Municipal Technical Assistance Program (MTAP) to help municipalities access federal funding and recovery resources. He described MTAP as a flexible program that has shifted from ARPA distribution assistance to supporting FEMA and other recovery-related grant work.

Several committee members asked clarifying questions about executive coordination on issues such as health care cost pressures and how the secretary’s office participates in statewide policy conversations. Bramer said the office participates in executive‑level and cabinet conversations with the governor’s team, Department of Finance and Management, and other cabinet secretaries, but does not unilaterally direct policy.

The agency’s presentation provided data on internal service fund balances and premium setting practices; Bramer said the administration is working with actuaries to amortize past deficits and smooth premium increases so department budgets are not subject to abrupt shocks.

The committee did not take formal action during the presentation; members indicated they will ask additional questions of other agency presenters later in the day.

Next steps: the committee will continue its FY2026 hearings with other departments scheduled later the same day.