Agency of Administration outlines FY2026 central-office budget; racial equity office split out, clean-water match set aside

Nick Kramer, chief operating officer of the Agency of Administration, told the Appropriations Committee Feb. 6 that the agency’s FY2026 central‑office budget is largely “business as usual” but includes several targeted changes: the Office of Racial Equity has been moved into its own appropriation; the governor’s recommended budget includes a new statewide chief communications officer funded by a general‑fund increase; the submission shows an $850,000 Clean Water Fund set‑aside to serve as a flexible non‑federal match for competitive grants; and the budget includes a $3 million one‑time allocation for the municipal technical assistance program (MTAP).

The budget matters for municipalities and service delivery because the Agency of Administration serves as a central “backbone” for statewide programs and for short‑notice funding opportunities. Kramer said the agency often “is the place where things land when there’s an urgent need to be responded to or a new legislative initiative often it gets stuck in the secretary’s office if there’s no other quit home for it.” The Clean Water Fund change, he said, is intended to help the state pursue federal competitive grants that…