Subcommittee hears largely flat FY27 budget for Office of the Governor

The House Finance Subcommittee received a concise overview Monday of the Office of the Governor’s FY27 operating budget, which staff described as largely unchanged from the previous year and funded almost entirely by state general funds.

Sherry Lowenstein, administrative director for administrative services in the Office of the Governor, told the committee the request is "almost exclusively general funds, 93% or so to be exact," and noted statewide salary and benefit adjustments totaling $979,800 in all funds, of which about $960,500 are general funds. She also said the federal infrastructure office closed at the end of fiscal 2025.

Lowenstein said the budget largely reflects a flat funding posture with a few notable personnel adjustments. "We did close the federal infrastructure office at the end of fiscal year 2025," she said, and described a planned transfer of one accountant from the Department of Administration, Division of Finance, to assist agencies with fund sufficiencies and balances.

Cochair Foster and Lowenstein clarified that the accountant transfer is funded by existing resources. Foster said the transfer is effectively net zero; Lowenstein said the position will bring $154,000 of existing funds and that the shared‑services realignment "came with no funding."

Members asked clarifying questions. Representative Edgemond asked whether the salary adjustment was a routine amount; Lowenstein replied that it is standard and "it's a 2.5% salary increase for PX and EX," and that such adjustments occur annually when bargaining‑unit changes arise. Representative Stutes noted that adjustments can vary by bargaining units across agencies.

Representative Bynum asked whether the statewide salary study included governor's office staff. Lowenstein said the governor's office staff were not included in that study and that applying the study's findings to the office would require a separate review.

Cochair Foster set an amendment deadline of noon on Feb. 24 and told members the subcommittee would reconvene on Wednesday, Feb. 25 at 4:00 p.m. to take up budget action items, consider amendments and close out the review. Foster adjourned the Office of the Governor portion of the meeting at 4:14 p.m.

The budget overview contains no identified new programmatic spending beyond the small salary and staffing realignments described by staff; staff said they will return with any requested follow‑up details, including the executive branch’s rent payments for the Legislature’s third floor.