BGS proposes 5.5% FY2027 budget increase, cites rising utilities and fee-for-space costs

Wanda Manoli, commissioner of Buildings and General Services, told the Appropriations Committee that the department’s proposed FY2027 budget is a 5.5% increase over FY2026 and reflects rising operational costs and fund re‑alignments.

Manoli said BGS’s FY26 total was about $60,300,000 and the FY27 proposal is approximately $63,500,000. "What I like about this is that 77% of our budget, is internal service funds," she said, explaining that most of that funding supports fee‑for‑space, operations and maintenance for state facilities.

The presentation said the department manages 348 full‑time equivalent positions with 22 vacancies as of December; the commissioner's office budget was cited as approximately $1.3 million and shown as a year‑over‑year decrease tied partly to a reallocation of a principal assistant position.

Manoli and deputy director Emily described steps taken to align charges with the proper accounts and to review vacancy‑savings targets. Committee members asked whether the department was balancing operations by increasing vacancy savings; Manoli said the proposed budget reflects reassignments and more accurate targeting of vacancy savings rather than an across‑the‑board cut.

Division‑level highlights included a $5.2 million design and construction program (a 6.5% increase), and a fee‑for‑space program that Manoli said totals about $41,000,000 and is increasing about 5.3% due to utility and service costs. Manoli also described security and environmental health functions funded from fee‑for‑space and said the department is coordinating with finance to close gaps caused by fixed sewer and water charges even when buildings temporarily use less service.

Committee members requested follow‑up materials, including vacancy‑savings crosswalks and energy‑program data. Manoli said staff will provide the requested details and annual reports for the energy program.

The hearing ended with the committee noting additional follow up questions; Manoli said BGS staff are available to supply the data and clarifications requested.