Senate committee reviews Agency of Administration FY26 budget; Office of Racial Equity moved to separate appropriation

Senate Government Operations Committee members on Feb. 7 heard an overview of the Agency of Administration’s FY26 budget request, including a proposal to move the Office of Racial Equity into its own appropriation, a new chief communications officer position, an $850,000 increase in the Clean Water Fund allocation for competitive-match opportunities, and higher insurance-related charges in the Office of Risk Management, agency officials said.

The budget matters to Vermonters because it funds central services that run state government — from human resources and finance to risk management — and it includes funding shifts and one‑time investments that affect municipal grant capacity, accessibility work and community technical assistance, the agency told the committee.

Secretary of Administration (name not specified) told the committee the secretary’s office request totals roughly $8.9 million in all‑fund appropriations for FY26 and is funded by a mix of general fund, interdepartmental transfers, special funds and internal service funds. Agency officials said the breakdown is roughly $2.9 million (33%) general fund; $2.88 million (32%) interdepartmental transfers; about $1 million (9%) special funds, including Clean Water Fund items; and $2.3 million (26%) internal service funds. The secretary said the Office of Racial Equity positions and operating…