Summary: The committee first took up a long-running audit finding involving the City of Daytona Beach’s unexpended building permit fund balance, which has exceeded the statutory cap for several years and was reported at $10.8 million in the latest audit. Mayor Derek Henry and city staff said the city had analyzed the fund, adopted a corrective action plan, waived more than $5.5 million in permit and inspection fees, used some excess funds for a training facility rehabilitation, and is pursuing a $9.4 million City Hall expansion that they say is allowed under a November 2024 Attorney General opinion permitting construction of a building to house the building code enforcement function. Committee members repeatedly questioned whether the city was simply trying to spend down the money, whether the proposed uses were truly lawful, why the balance kept growing despite fee waivers, and where the interest earnings were going. The mayor and deputy city manager said the city’s growth and staffing needs justified the plan, but several members expressed frustration and skepticism. A public commenter also urged accountability and raised concerns about the city’s spending plans and the size of the remaining balance. The committee then received an Auditor General presentation on the Town of Greenville, which found 31 operational audit findings and described pervasive control failures, possible fraud, waste, and abuse. The findings included election paperwork problems that left a council seat vacant, conflicts of interest, late financial disclosure filings, related-party transactions, inadequate meeting notices and minutes, quorum and voting documentation problems, council members’ involvement in day-to-day operations, missing ethics training, budget adoption and monitoring deficiencies, inaccurate accounting records and bank reconciliations, utility billing and rate issues, grant compliance problems tied to an unfinished grocery store project, weak personnel and contracting controls, improper severance and compensation issues, late vendor payments, weak procurement and P-card controls, vehicle-use and property-control weaknesses, poor public records access, and IT access and fraud-policy gaps. Greenville’s mayor and staff said the audit largely reflected the prior administration and that the current council and staff are taking corrective action. They said the town terminated the former manager, adopted seven new policies since the audit began, and is working with the Auditor General to improve procurement, financial controls, inventory management, grant oversight, and ethics compliance. The town attorney said he had alerted federal authorities earlier about concerns, and committee members noted that FDLE has received a criminal referral and is investigating. Several members praised the new leadership’s cooperation but also suggested the town consider consolidation or dissolution if problems persist.

Summary: The Committee on Education Pre-K through 12 held a panel discussion on artificial intelligence in K-12 education. Dr. Maya Israel of the University of Florida gave an overview of AI literacy, emphasizing that AI can support personalized learning, school operations, and teacher efficiency, but also raises concerns about data privacy, overreliance, mental health, and the need for human oversight. She described the Florida K-12 AI Task Force, which has produced guidance on policy, ethics, privacy, cybersecurity, classroom integration, and professional development, and is now working on district surveys, webinars, case studies, and teacher/family resources. Superintendents Van Ayers of Hillsborough County and Kevin Hendrick of Pinellas County described district-level implementation. Hillsborough outlined a governance council, a district AI policy, and an implementation guide; it prohibits generative AI for students below eighth grade, allows limited use for older students with teacher permission and district-vetted tools, and uses models for classroom AI expectations. The district also reported growing student enrollment in AI courses, teacher training through summer academies and quick learns, and pilots with tools such as Magic School and Microsoft Copilot. Pinellas emphasized academic integrity, student data privacy, digital responsibility, and the importance of human interaction in learning; it said state assessments already limit technology use and that districts need clear governance and parent transparency. Committee members asked about whether AI improves academic performance, the risk of student dependence, the possibility of returning to more paper-based testing, and who should set guardrails. Witnesses said reliable achievement data is still limited because the technology is new, though districts reported anecdotal gains in tutoring and early literacy. They also said there is no established statewide baseline for teacher AI training yet, so districts are using professional development, stipends, and partnerships with universities to build capacity. The committee also heard from Drew Andrew of FSU’s Inspire program, who argued that industry is moving faster than schools and that education should focus on teaching how AI works, building teacher confidence, and aligning training with workforce needs. No bills were considered and the meeting ended with a motion to adjourn, which was adopted.

Summary: The committee heard a presentation on the State University System’s new strategic plan, SUS 30, from Emily Sykes and later the system’s legislative budget request from Sarah Denagie. The strategic plan centers on five priorities: One SUS collaboration, elevating student success, operational excellence, world-class talent, and innovative research and economic development. Testimony highlighted Florida’s continued status as the nation’s top higher education system, record rankings, improved four-year graduation rates, higher median graduate wages, strong licensure pass rates, and expanded focus on research commercialization and workforce alignment. Senators asked about programs of strategic emphasis, mental health and teacher workforce needs, use of the My Florida Future wage data tool, support for first-generation and Pell students, and the role of liberal arts degrees. The system said it would provide follow-up information, including the full strategic-emphasis list and a report on campus safety best practices after a recent summit following the FSU shooting. The committee also received an update on line funding for nursing and health care partnerships. Officials said the $6 million appropriation was fully subscribed through 24 proposals from all 10 nursing programs, supporting scholarships, faculty recruitment, internships, simulation, and expanded nursing capacity. They reported more than 1,900 new nursing graduates, over 200 new student slots, more than 300 scholarships, and a 92% NCLEX pass rate. Senators asked about expanding eligibility for the program, and staff indicated that would be examined this year. For the legislative budget request, the Board of Governors asked for $634.5 million total, including $295 million to maintain the institutional performance-based funding base, $400 million for the state investment portion of performance-based funding, $125 million for preeminence funding, $100 million for faculty recruitment and retention, $6.4 million for UF/IFAS extension workload, and $3.1 million for state fire marshal inspections. The chair noted that resources are limited and that difficult budget decisions will be required. No votes were taken, and the meeting adjourned after the presentations and questions.

Summary: The committee first heard a presentation from Major General James Hartzell of the Florida Department of Veterans’ Affairs on the agency’s outreach, benefits assistance, and state veterans nursing homes. He highlighted Florida’s large and growing veteran population, the decline in World War II and Vietnam-era veterans, and the increase in post-9/11 veterans moving to the state. Hartzell discussed the state veterans nursing home system, including a new Collier County facility that will include skilled nursing, assisted living, adult day health care, and outpatient therapy, and he said the department is also studying future adult day health care expansion and possible additional homes in underserved areas. He also reported on the dental program funded by the Legislature, saying 245 veterans were served in the first quarter of the fiscal year, with 1,631 procedures completed and more than $525,000 in savings, and he credited the added state veterans service officer positions with helping connect more veterans to benefits. Hartzell also noted a 13% year-over-year reduction in homeless veterans, emphasized mental health outreach through SaveFLVets.org and the Overwatch program, and announced a new deputy executive director, retired Colonel D.J. Reyes. Members asked about the need for additional veterans homes in South Florida, the criteria used to site new homes, the homeless veteran reduction, and whether adult day health care could be added at existing facilities. Hartzell explained that federal criteria focus on the availability of private skilled nursing beds for veterans 65 and older, and that adult day health care is state-funded and being studied for broader deployment. He also said the department tracks where homeless veterans are concentrated and works with local partners and organizations like Tunnels to Towers to provide housing and services that reduce recidivism. The committee also discussed Florida’s national reputation for veteran support, including Veterans Month and the state’s culture of veteran awareness. The committee then received a presentation from Kevin Guthrie, Executive Director of the Florida Division of Emergency Management, on disaster response, recovery, and technology systems. Guthrie described the State Emergency Response Team, the new Florida Central Operations and Coordination Office in Auburndale, and the new State Emergency Operations Center in Tallahassee, which is expected to be fully operational by spring 2026 and will significantly expand capacity and hardening. He reviewed recovery efforts for Hurricanes Helene, Milton, Debbie, Idalia, Ian, Irma, Michael, Dorian, Sally, Nicole, and others, including sheltering, travel trailers, debris removal, and FEMA reimbursement totals. Guthrie said Florida removed more than 31.6 million cubic yards of debris from Helene and Milton in 90 days on a 24/7 basis, and he described Elevate Florida, the Florida Recovery Obligation Calculation (FROC), the DEMES platform, and WebEOC as tools to streamline recovery, mitigation, and intergovernmental coordination. Members asked about flood-response resources for cities, the state’s use of pumps and mutual aid, and lessons learned from inland flooding after Milton. Guthrie said local governments should first use county and city mutual aid, then request state assistance when needed, and he encouraged more partnerships for staging and maintaining flood equipment. He also said future flood mitigation must address outdated development patterns, watershed flow, and the need for better drainage planning, while continuing temporary fixes and homeowner assistance programs. The committee ended with no votes or formal actions beyond adjournment.

Summary: The committee met to hear Amy Baker’s presentation on Florida’s constitutionally required long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast reflects slower but still positive economic growth, continued above-average personal income growth, rising wages, and population growth that is increasingly driven by in-migration as Florida’s senior population expands. She highlighted weakening housing-related revenue, especially documentary stamp taxes, softer consumer sentiment, and the expectation that Florida will pass 25 million residents by 2030, with nearly a quarter of the population age 65 or older. Baker said the outlook largely retained the March 2025 general revenue forecast, but the Legislature’s 2025 session actions significantly improved near-term funds available by redirecting or freeing up money, including contingency appropriations and reversions. She noted total state reserves are just under $15 billion, or about 30% of general revenue, and that the budget stabilization fund is at its constitutional maximum. The main spending pressures in the outlook were critical needs, led by a new emergency preparedness and response fund transfer and Medicaid growth driven mainly by medical inflation and behavioral analysis costs in managed care, not by caseload growth. Other high-priority needs were also identified, and Baker said the first year shows a projected surplus, but years two and three show shortfalls, meaning fiscal strategies will still be needed. Members questioned Baker about the accuracy of the forecast, Medicaid managed care costs, the emergency preparedness fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook is a good representation of the total picture, though the Legislature will likely adjust it as conditions change, and that more information on federal changes would come in later estimating conferences. Senator Trumbull asked about the governor’s veto of $750 million, and Baker said it simply returned to unallocated general revenue rather than being spent or added to the budget stabilization fund. The chair closed by warning members to expect a difficult budgeting process and noting that the committee would adjourn without further action.

Summary: The Higher Education Appropriations Committee met for its first meeting of the session and heard presentations focused on workforce education in the Florida College System and district technical colleges. Members introduced themselves and discussed their personal connections to higher education, then heard from Department of Education senior chancellor Kevin O’Farrell, South Florida State College president Fred Hawkins, and Pinellas Technical College representative Mark Hunt. O’Farrell outlined the department’s budget request, including increases for adult education, Florida College System program funds, workforce development capitalization grants, apprenticeship and teacher apprenticeship programs, Open Door scholarships, and CAPE industry certification funding. He emphasized record growth in enrollments, completions, dual enrollment, and program offerings, and described grant-funded expansion in fields such as health sciences, manufacturing, logistics, aerospace, and AI-related programs. Committee members raised concerns about whether current programs match actual labor-market demand, how artificial intelligence may reduce future human labor needs in some fields, and how the state should avoid unwarranted duplication of programs. O’Farrell said the department uses economic forecasts, employer demand data, and a CTE audit process to review programs and phase out those that do not meet performance thresholds. Members also asked for more detail on the teacher apprenticeship model, the transition from technical college clock hours to college credit, job placement and salary outcomes, and the LPN-to-RN pathway. O’Farrell said he would provide additional information later. Hawkins described South Florida State College’s rural service area, low college-going rates, and difficulty recruiting and retaining faculty and staff because salaries lag behind local market alternatives and nearby school district pay. He said the college has had to turn away students in high-demand programs due to staffing and operational limits, while also noting strong outcomes in nursing, dental hygiene, EMT/paramedic, and radiography. Hunt said Pinellas Technical College serves about 5,000 students annually, including many dual-enrolled high school students, and reported a placement rate above 90% and strong local economic returns. He said many programs have waiting lists and that additional operational funding is needed to meet demand, maintain equipment, and keep pace with salary and cost increases. The meeting ended after public comment was opened and no further business was brought before the committee, and the committee adjourned.