ANR says FY27 budget falls as federal infrastructure funds taper; proposes trust‑fund adjustments and flags program risks

Julie Moore, the secretary of the Agency of Natural Resources, told the Senate Appropriations Committee that ANR's FY27 budget will be “just shy of $300 million,” down from a peak driven by a recent surge in federal infrastructure funds.

Moore said about two‑thirds of the agency's budget sits in the Department of Environmental Conservation and that roughly half of the agency's spending is returned to partners and municipalities through contracts, grants and loans. “We invest about $40 million a year in contracts,” she said, and the agency also issues about $59 million in grants and approximately $65 million in loans for water and conservation projects.

Why it matters: Moore and agency staff described the decrease as anticipated and tied to the wind‑down of Bipartisan Infrastructure Law and ARPA dollars that fueled recent growth in staffing and contracting. The change affects how many limited‑service positions are needed; Moore said of the roughly 50 hires made to deploy ARPA/BIL work, “by the end of next calendar year, there will be about a half a dozen that remain on staff.”

The agency recommended a technical change to the Lands and Facilities Trust Fund: align statutory references to Agency of Natural Resources, clarify eligible uses (to include limited administrative costs) and raise the allowable annual distribution from 5% to 8% of interest/earnings. Moore said the fund balance is about $6.25 million and projected that under the proposal the fund would continue to grow, though more slowly.

Members pressed officials about specific program risks and reauthorizations. Moore said the House removed a $600,000 vehicle‑repair appropriation intended to fund a small repair grant program and cover administration; she said about $200,000 had already been committed to contracts and the House's action left the program in a “challenging moment.”

The hearing also probed long‑term lease arrangements on state land, including ski‑area leases that range from roughly 40 to 60 years; ANR staff said a contractor is reviewing how multi‑resort pass revenue is reported to ensure consistent accounting for the state's share.

What's next: Officials said federal funds will continue to be tracked as they are spent out and that the administration will provide the seven differences between the governor's recommendation and the House version on request. The presentation drew questions about how corpus protections might be written into the trust‑fund change and whether the legislature prefers a permanent rule change or a one‑time distribution adjustment.

Speakers quoted: “So for the record, uh I'm Julie Moore. I'm the Secretary of Natural Resources,” Moore said at the start of her testimony, and later: “Our FY27 budget is just shy of $300 million.”

Provenance: Testimony and discussion, SEG 022–SEG 435.