Office of Species Conservation bills show federal IIJA grants drive trustee payments; office seeks small increase in miscellaneous revenue authority

Administrator Edmonson of the Office of Species Conservation (OSC) and legislative analyst Janet Jessup briefed the Joint Finance-Appropriations Committee on OSC's budget and federal funding profile.

Jessup told members that OSC is allocated 16 FTP and that in 2023 the office received roughly $5 million in federal appropriations tied to IIJA and related grant activity; those grants drove a spike in appropriation but expenditures lagged as projects ramped up. Jessup said the office's trustee and benefit payments are overwhelmingly federal funds and that the office requested an increase of $30,000 to its miscellaneous revenue fund in 2026 to better pursue nonfederal grants, donations and settlements.

Jessup said the apparent gap between appropriation and expenditures reflects the timing and restrictions of federal grants and the practice of agencies requesting appropriation ceilings that match anticipated federal receipts. "What isn't happening is that the agency has a great deal of cash that it's sitting on and not spending," Jessup said, adding that the agency must often revert appropriation authority when grant funds have not yet been realized.

Administrator Edmonson thanked staff support and noted the office has used recent appropriations to expand capacity. OSC asked the committee to continue support for tracking federal grant activity and for modest additional flexibility to accept and spend nonfederal grants and donations.

The governor's recommendation included the agency's requested increases; no committee votes were taken during the hearing.