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PUC chair tells committee FY27 budget shortfall will require choices on work and fees
Summary
PUC Chair Ed McNamara told the House committee the commission's proposed FY27 budget is roughly $5.3 million versus projected revenues of $4.4 million, driven mostly by salaries; he warned reserves may be exhausted by FY29–FY30 and suggested revenue or fee changes will be necessary.
Ed McNamara, chair of the Public Utility Commission, gave a high-level overview of the PUC's FY27 budget and capacity concerns, telling the committee the proposed budget is roughly $5.3 million—about a 2.8% increase over FY26—and is largely funded from a gross receipts tax on regulated utilities and application fees.
McNamara said projected revenues for FY27 are about $4.4 million (mostly gross receipts tax and application fees), with application fees comprising a small share of income and gross receipts constituting roughly 96% of the commission's revenues. He told members that salaries and benefits make up more than 87% of the commission's budget and that reserves—reported in testimony as "about $3,000,000" by PUC leadership—are being drawn down to cover shortfalls; one committee member questioned the reserve number during discussion.
The PUC chair said current revenue volatility and a pattern of expenditures exceeding revenues mean the commission will need to consider options over the next budget cycle, including consolidating work, trimming speculative tasks, and discussions with the governor about including fee or revenue changes in the executive budget. McNamara said the PUC plans to bring recommendations to the legislature next year and will submit a slide deck to the committee to support the budget conversation.
Committee members asked whether the PUC planned a specific fee-raising plan; McNamara said a realistic plan is not in place and that any revenue strategy would emerge from a longer conversation about tasks assigned to the commission and the long-term future of contributing industries.
