Transcript Highlights:

• The other thing is, this includes maintenance.
• The majority of the maintenance money—millions, hundreds of millions of dollars—is done through price
• can't be used for maintenance.
• Maintenance of state roads, to be sure there are opportunities for us to provide financial support to
• I could see the concern, especially in rural areas, for maintenance of those roads.

Committee: Senate Senate Tax, Business & Transportation

Transcript Highlights:

• This fee only goes to their portion to fund the maintenance of that building.
• It is dedicated strictly to that field office for the maintenance of that field office.
• Who pays for the maintenance on those? It's the state, right?
• There's no maintenance fee for that.
• So the maintenance costs are not there.

Summary: The House Transportation Committee met on March 23 with a quorum and received an update from OMV leadership. Director Brian Adams and Commissioner Keith Neal said the agency has improved morale, staffing, and efficiencies, is operating in the black, and expects to begin testing the driver’s license portion of its modernization project in September. They also said the agency is working on customer service and technology upgrades. The committee then considered several OMV-related bills. HB 781, creating a fleet vehicle registration program, was amended to delay implementation until the OMV system is ready and was reported with amendments. HB 712, which waives OMV fees for driver’s licenses and state IDs for eligible homeless persons, drew extensive testimony for and against; supporters said it would remove a barrier to employment, housing, and identification, while opponents raised concerns about eligibility, fraud, and policy scope. The committee adopted amendments clarifying the waiver and verification requirements, and the bill passed on a roll call vote. HB 372, requiring OMV education on roundabouts, was discussed but voluntarily deferred in favor of a House concurrent resolution approach. HB 746, dealing with oversized trucking permits, was amended to preserve existing permits while imposing a one-year moratorium on new local permit requirements and was reported with amendments. HB 732, allowing temporary waiver of certain OMV-related debts for people in special circumstances such as hospice, was amended and reported favorably. HB 722, providing automatic reinstatement of driver’s licenses after payment of fees and fines except for DUI-related suspensions, was amended and reported with amendments. HB 593, raising the maximum service fee for certain OMV field offices, was amended to exclude Shreveport and reported 9-5. HB 613, adding a citizenship indicator to Louisiana driver’s licenses and IDs, was heavily debated over its purpose and implications but was reported 8-5. Finally, HB 582, reducing reinstatement fees for insurance lapses, was reported favorably, and HB 762, which would block referral of certain OMV debts to the Office of Debt Recovery, was taken up with testimony emphasizing the burden of added collection fees.

Transcript Highlights:

• It's around $13 million a year for the maintenance and patching and all that for that part of it, which
• We have been able to do all of these projects as operations and maintenance.
• This all has to do with increased maintenance costs on hardware and software.
• We pay SAP for the licenses, and then there's an annual maintenance agreement.
• We pay SAP for the licenses, and then there's an annual maintenance agreement. Ms.

Summary: The subcommittee heard updates on several major technology modernization efforts, beginning with the Department of Financial Services’ Florida PALM project, which is replacing the state’s decades-old FLAIR accounting system. DFS described PALM as a statewide effort affecting all three branches of government, with cash management already live and the remaining financial management, payroll, and data warehouse components still in development. Officials said the project began in 2014, was restructured after a 2022 legislative pause, and is now being recommended for a go-live delay from January 2026 to July 2026. Members asked about governance, staffing, contract structure, cost growth, and maintenance costs; DFS said the contract is deliverable-based, the current amendment would add a net $2.2 million, and post-go-live maintenance is expected to be about $13 million annually under the current contract through July 2027. The Agency for Health Care Administration then updated the committee on the FX Medicaid enterprise modernization program. AHCA explained that federal CMS directed states to move from monolithic Medicaid systems to a modular approach, leading Florida to procure separate vendors for integration services, data warehouse, unified operations, provider services, and claims processing, with pharmacy benefits still to be procured. Officials said the project has spent about $334 million to date, with most costs federally matched, and requested $189.95 million for the upcoming year. They also highlighted a 2024 special assessment that produced 81 recommendations, most tied to staffing shortages, and said the Legislature added 47 FTEs, with 17 currently filled or being filled. Members asked about governance changes, production status, data access, and future technology maintenance; AHCA said some components are operational, the data warehouse is nearing certification, and the agency is working to keep the system adaptable and nonproprietary. The Department of Children and Families presented its Access modernization project, which is replacing a mainframe-based eligibility system used for SNAP, TANF, Medicaid assistance, and related programs. DCF said the six-year, $205 million project is in its third year and has already delivered a new customer portal with mobile access, multi-factor authentication, and fraud protections, while also building a worker portal, document management, community partner tools, and workload management functions. The agency said it is requesting $36.625 million for the next fiscal year, the same as last year, and emphasized that the project has remained on schedule and on budget by breaking work into smaller modules and using strong vendor and staff support. Members praised the project’s progress and asked about cybersecurity testing and the long delay before modernization began; DCF said security requirements were built in from the outset and that the remaining work will focus on moving staff off the legacy mainframe and modernizing notices and back-end processes.

Transcript Highlights:

• We will take steps to address our massive backlog of critical deferred maintenance of our facilities
• after deferred maintenance.
• And I know that Senator Archeletta talked about deferred maintenance, and that's an issue everywhere,
• Deferred maintenance is an issue everywhere, but I think more acute for CSU.
• We would use it to address both deferred maintenance and some capital outlay.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• Those now will be seeing maintenance recurring costs. And so we'll go into some detail about that.
• Vehicle repairs and maintenance costs, if we don't replace those vehicles, we see increased cost and
• Request, but ongoing costs, recurring maintenance, and licensing will be needed for that.
• So this is really scratching the surface of our maintenance costs and infrastructure needs.
• Thank you. and in recurring costs for fleet maintenance for that. Diego? Mr.

Summary: The Department of Public Safety presented its FY27 budget request, emphasizing three priorities: improving community engagement through a redesigned website and outreach, expanding statewide data and intelligence integration through intelligence-led policing, and improving emergency response and officer safety through fleet replacement, a driving track, and a requested helicopter. DPS said much of its increase is driven by rising health care premiums, and it is also seeking special appropriations for fleet replacement, the website rebuild, and an Honor Guard program created after the 2022 helicopter crash that killed four public servants. Members asked about vacancies, fleet costs, cybersecurity compliance, the real-time crime center, EV fleet participation, and the Metro DPS facility. DPS said its vacancy rate is about 9%, its fleet replacement needs are driven by mileage and condition, it is compliant with federal CJIS standards even though DoIT has raised concerns, the real-time crime center would be built as a regional model to complement Albuquerque’s center, and the Metro facility is moving toward a January groundbreaking. Committee members also discussed several DPS-related capital and IT requests, including the intelligence-led policing data lake, recurring maintenance for critical systems, and a $5.6 million reauthorization for state crime lab DNA backlog work and a $900,000 reauthorization for fingerprinting equipment. DPS explained that the website request is high because the current site must be rebuilt from scratch to support missing-person alerts, memorial updates, ADA compliance, and better communication with law enforcement and the public. Members also raised concerns about speed enforcement, construction-zone cameras, and whether EVs are practical for patrol use; DPS said it is not pursuing speed cameras and is only partially participating in the state EV initiative because patrol needs make full electrification difficult. The committee then received an LFC quarterly update on non-recurring appropriations from the 2025 General Appropriation Act. LFC reported that of the $1.4 billion appropriated in Section 5, $164 million had been expended and $333 million encumbered, leaving $897.4 million unspent, which is a slower pace than the prior year. Staff highlighted a number of reauthorization requests and slow-moving projects across agencies, including AOC cybersecurity funding, DFA housing and public safety grants, DoIT cybersecurity and higher education funds, EDD economic development and energy programs, OSI mitigation and malpractice funds, EMNRD energy and geothermal grants, Health Care Authority behavioral health-related appropriations, DPS crime lab and fingerprinting funds, PED career technical education and special education initiatives, and higher education loan repayment and technology funds. Members questioned why some large appropriations had little or no spending, discussed the need to monitor reauthorizations more closely, and asked for follow-up on several specific line items and project balances.

Transcript Highlights:

• How about the loss of the maintenance and management positions?
• I'm particularly concerned about the deferred maintenance.
• What's going to be the impact on deferred maintenance?
• schedule, and so things could fall into deferred maintenance.
• But immediately, I don't think there would be an impact on deferred maintenance.

Summary: The meeting began with a lengthy opening discussion with Secretary Karen Ross of the Department of Food and Agriculture, who reviewed the department’s proposed budget, emphasized California agriculture’s record output, and highlighted major priorities including climate-smart agriculture, groundwater management, local food systems, farm-to-school, food hubs, invasive pest prevention, bird flu response, and food safety. She also warned about federal budget cuts, especially at USDA and FDA, and discussed market access challenges abroad, rising input costs, labor shortages, and the need for automation and workforce training. Members raised questions about the future of Farm to School, the California Nutrition Incentive Program/Market Match, local food procurement, and how to better connect farmers to schools, food banks, and food hubs; Ross said the department had strong evidence the program benefits small farms and Title I schools and noted continued interest in building out local food infrastructure. The committee then took up item one on eliminating vacant positions at the Departments of Fish and Wildlife, Parks and Recreation, and Food and Agriculture. The Legislative Analyst’s Office explained that the Governor proposed eliminating 6,000 vacant positions statewide, with the Joint Legislative Budget Committee previously rejecting 650 of them, including 174 in these three departments. LAO and Finance said the vacancies represented a source of budget flexibility, but warned that eliminating them could create program impacts; LAO recommended retaining the special-funded positions at Fish and Wildlife and Food and Agriculture, while weighing the General Fund positions against other priorities. Finance argued the reductions were part of a broader budget-resiliency exercise and that departments could reclassify or shift vacancies to higher priorities. Members focused heavily on the practical impacts of the cuts. Assemblymember Petrie-Norris argued that Fish and Wildlife staffing shortages were already slowing permits needed for housing, clean energy, water, and transportation projects, and questioned the value of saving relatively small amounts of money. Fish and Wildlife officials said the department had prioritized mission-critical work and could still meet permitting obligations, but acknowledged limited-term staffing constraints. State Parks said the proposed ranger and maintenance cuts would not have immediate effects but could slow maintenance and eventually worsen deferred maintenance. Food and Agriculture said some of the eliminated positions supported early pest detection and eradication, but that the department believed it could still meet its mandate and reclassify positions if needed. The chair and several members signaled concern about the Fish and Wildlife and Parks cuts, while also noting the broader need for budget reductions. The committee then moved to item six, hearing an overview from the Governor’s Office of Land Use and Climate Innovation. Staff described the office’s role in CEQA implementation and said the budget requests were baseline funding to maintain existing functions, including IT services and administrative/legislative support, rather than new programs. The chair asked the presenters to move quickly through background material so the committee could get to questions, and the item began with no votes taken during the meeting.

Transcript Highlights:

• Historically, the maintenance was supported through gas tax revenues.
• This amendment reflects our top priority in the budget of preservation and maintenance.
• President, this fits within our priority of maintenance and preservation.
• We put more money into maintenance.
• We're also investing in this budget in the maintenance of our ferries.

Bills: SB6061 , SB6234 , SB6170 , SB6176 , SB6182 , SB6335 , SB5647 , SB6047 , HB2367 , HB2606 , SB5998 , SB6005 , SB6003 , SB6129 , SB6225 , SB6228 , SB6231

Summary: The Senate met on February 23, 2026, opened with the usual roll call, pledge, prayer, and approval of the previous journal. Members then adopted Senate Resolution 8698 recognizing piano teachers, with several senators sharing personal remarks about their own teachers and the role of music education in families and communities. Guests from the Washington State Music Teachers Association and the National Guild of Piano Teachers were recognized in the gallery. The chamber then moved into budget debate, considering a series of amendments to the operating budget. Several proposals focused on housing costs, local planning, utility rates, and state spending restraint. Amendment 0772, which would have created a housing-related task force and increased funding, was rejected after debate over housing affordability and regulatory costs. Amendment 0785, restoring growth management planning funding for local governments, was also rejected. Amendment 0791, directing the Department of Commerce to study the effects of climate and clean energy laws on utility costs, and Amendment 0769, related to grid capacity and clean energy investments, were both adopted. Other amendments drew sharper partisan debate. Amendment 0798, which would have reduced the Supreme Court from nine justices to five and redirected savings to public defense, failed. Amendments 0794 and 0795, seeking funding for ballot measure costs tied to initiatives, also failed. Amendment 0799, intended to redirect Pacific Tower lease savings to developmental disability services, was rejected after discussion of the building’s current public uses. Amendment 0773, capping state spending growth and tying it to median wage growth, failed on a roll call vote, while Amendment 0777, addressing concurrent use of paid family and medical leave and sick leave by state employees, also failed after extended debate. Later, Amendment 0776 on tort liability reporting was adopted, as were Amendment 0758 creating a DSHS work group on community-based services for people with intellectual and developmental disabilities, and Amendment 0786 was introduced to reduce cash and food assistance work-related funding, with debate beginning before the transcript ends.

Transcript Highlights:

• Senate File 68, Water Districts Funds for Maintenance Projects, sponsor Water.
• Senate File 68, water districts funds for maintenance projects.
• </c> through2 school facilities maintenance through2 school facilities maintenance and<00:23:36.320><
• Senate file for maintenance projects.
• </c><00:37:30.400><c> and</c> facilities maintenance and facilities maintenance and appropriations<00

Transcript Highlights:

• . $78 million is in the deferred maintenance category in that FCA report.
• We're one of the highest state agencies that has a deferred maintenance number that is in that crisis
• </c><00:47:44.520><c> number</c><00:47:44.800><c> that</c> has a deferred maintenance number that has
• a deferred maintenance number that is<00:47:45.599><c> um</c><00:47:46.160><c> in</c><00:47:46.359><
• but they do have and regular maintenance but they do have a<00:49:29.720><c> shelf</c><00:49:30.079>

Committee: House Capital Investment

Transcript Highlights:

• Again, all total in over $37 million in planned maintenance, and even with limited service, that's an
• Again, all total in over $37 million in planned maintenance, and even with limited service, that's an
• </c> plans which are basically maintenance plans which are basically maintenance costs<00:04:12.079><
• It has low ridership, huge operating subsidies, and ridiculous maintenance costs.
• </c><00:43:17.280><c> cost</c> operating and cost and maintenance cost operating and cost and maintenance

Summary: The committee took up House File 269 and House File 749 together, both aimed at ending Northstar Commuter Rail service. The bill author described HF 269 as directing the Metropolitan Council and MnDOT to request a federal waiver and discontinue Northstar operations, with HF 749 setting performance requirements that would trigger a similar termination request. Supporters argued Northstar has low ridership, high operating subsidies, and large maintenance costs, and said the agencies now agree with the intent to terminate the line and possibly replace it with bus rapid transit. The chair moved HF 269 to the general register while also laying HF 749 over in committee, and testimony was heard on both bills at once. Testimony split sharply. Supporters of termination, including the bill author and Annette Meeks, said Northstar has consistently underperformed ridership projections, has required large taxpayer subsidies, and should be ended rather than extended. Opponents, including Jesse Cook, Darwin Scherlan, Joel Mueller, Katie Nicholson, and Annie Buckle, argued the line still serves riders, workers, and communities, that low frequency and underinvestment are the real problems, and that the state should improve service rather than shut it down. Several opponents emphasized Northstar’s role for commuters, special events, and future growth, especially the St. Cloud corridor. Met Council Chair Charlie Zelle and MnDOT Commissioner Danenberger said they support carefully evaluating alternatives to commuter rail and acknowledged the subsidy is not acceptable, but they also said the agencies are working with the federal government and BNSF on possible next steps. Zelle said the agencies believe bus service could provide more frequent and direct service, and when asked directly, he confirmed they are in favor of terminating Northstar and replacing it with bus service if feasible. No final disposition beyond the motion on HF 269 and the laying over of HF 749 was recorded in the excerpt.

Transcript Highlights:

• Well, we have transferred maintenance responsibility, which is a huge burden.
• It's really the maintenance that is the major burden.
• Well, we have transferred maintenance responsibility, which is a huge burden.
• </c><00:28:01.600><c> responsibility</c> transferred maintenance responsibility transferred maintenance
• </c> roadway it's really the the maintenance roadway it's really the the maintenance is<00:28:11.120>

Summary: The joint hearing covered HB 1484 on transit-oriented development and HB 157 on transportation. For HB 1484, testimony included a request from the Hoi Community Development Authority to be removed from the measure while offering to assist if the transit-oriented development law is implemented, along with testimony in opposition and support from several individuals. The committees later recommended HB 1484 be passed with amendments, including an HD1, a defective date, deletion of a reference to section 225 on page 11, adoption of H-CDA’s proposed amendment, and related committee report changes. The vote was adopted in both committees, with Representatives Cochran and Lee excused and Representative Mora voting with reservations. HB 157 concerned the transfer and acceptance of roads in the Villages of Kapolei. HHFDC supported the bill’s intent and explained that the roads were originally self-permitted, the city had not accepted dedication, and HHFDC has been maintaining and upgrading the roads under an MOA that requires improvements to city standards before transfer. Testimony from the Villages of Kapolei Association and others described ongoing problems with non-emergency police services, illegal parking, abandoned vehicles, and the need for city enforcement on roads that are open to the public. Committee members asked about the current holdup, the possibility of transferring roads in segments, and whether a cash settlement could resolve the issue; HHFDC said it was working in segments and that the city had mentioned a $60 million figure. The committees then recommended HB 157 pass with amendments, noting they were awaiting an Attorney General opinion on authority to compel the transfer and that the matter would continue to the Committee on Water and Land. The Transportation Committee also heard several additional bills. HB 1083, concerning vessels in state commercial harbors, drew support from the Department of Transportation and some industry groups and opposition from charter operators; HB 1159, which would require compliance with harbor master evacuation orders and increase penalties, drew DOT support and opposition from multiple vessel operators, who argued the bill was too broad and should define emergencies more clearly and use tiered penalties. HB 58, limiting civil liability for firefighting at commercial harbors, received DOT and Maritime Group support. HB 1165, on county disposal of ocean-bordering property and state highway acquisition, received DOT support. HB 938, a broad motor vehicle franchise and EV-related bill, drew support from the Hawaii Automobile Dealers Association and the Motor Vehicle Industry Licensing Board, but strong opposition from the Alliance for Automotive Innovation, Tesla, Rivian, Scout Motors, and others; opponents argued it would restrict direct-to-consumer EV sales and innovation, while dealers said the bill was too broad and needed further stakeholder work. No final votes were taken on the Transportation Committee’s remaining measures in the portion provided, and the joint hearing was adjourned after decision-making on HB 1484 and HB 157.

Transcript Highlights:

• </c><00:18:39.240><c> Capital</c> significant Capital maintenance Capital significant Capital maintenance
• <00:18:41.679><c> the</c> maintenance is really keeping the maintenance is really keeping the transit
• </c> have not kept up with their maintenance have not kept up with their maintenance obligations<00:18
• Chair, Representative Jones, the capital maintenance is kind of widespread.
• Chair, Representative Jones, the capital maintenance is kind of widespread.

Bills: HF5

Committee: House Transportation Finance and Policy

Keywords: tax modification, transportation funding, electric vehicle tax, Social Security subtraction, retail delivery fee, motor vehicle registration, state budget, transportation policy

Transcript Highlights:

• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• Again, the CTC noted local agencies are facing a $74 billion deferred maintenance backlog.
• authorizing heavier transit vehicles will only accelerate pavement deterioration and increase long-term maintenance
• I appreciate the opposition's comments in uplifting, or elevating, the issue of pavement maintenance
• particular universe of vehicles is fatal one way or the other in terms of what happens with our pavement maintenance
• I appreciate the opposition's comments in uplifting, or elevating, the issue of pavement maintenance

Committee: Senate Transportation

Transcript Highlights:

• </c> funds can't be used for uh maintenance funds can't be used for uh maintenance or<04:34:01.039><c
• </c><04:51:48.400><c> cost</c> for the operating and maintenance cost for the operating and maintenance
• </c><04:55:49.240><c> um</c> for Dot's operations and maintenance um for Dot's operations and maintenance
• </c> up with um um operations and maintenance up with um um operations and maintenance costs<05:01:02.718
• maintenance needs particularly preventative<05:03:15.400><c> maintenance</c><05:03:15.920><c> needs<

Summary: The Division 2 Finance Committee heard an overview and budget presentation from New Hampshire Fish and Game, led by new Executive Director Stephanie Simi and Business Division Chief Kathy Leonti. The agency described its mission to conserve and manage fish, wildlife, and marine resources, and emphasized growing pressures from disease, climate impacts, habitat change, and increased public demand. Simi said the department is largely funded by hunting and fishing license revenue and federal grants, is reviewing staffing and internal processes, and faces critical needs including permanent funding for environmental review staff, infrastructure and IT modernization, and possible service reductions if additional support is not found. Members asked about specific program and policy issues, including chronic wasting disease in deer, hemorrhagic disease in rabbits and hares, moose population decline, and a proposed bait-disease bill. The department said it is actively monitoring diseases and did not see a need for the bait bill at this time. Legislators also discussed the Hike Safe program, which the department said has grown from an expected $100,000 annually to more than $300,000, and a possible boating version of that program, which the department said remains under consideration but would involve complex logistics and multiple agencies. Questions were also raised about rescue costs, out-of-state hikers, and whether boat registrations could be used as a revenue source; Fish and Game said boat registration is handled by the Department of Safety, though the department receives $5 per registered boat for the public boat access program. The budget discussion focused on revenue projections, use of unrestricted Fish and Game funds, and dependence on federal reimbursements. Leonti said the department met the governor’s general fund target but not the Fish and Game fund target without using surplus unrestricted funds, leaving only about $100,000 in the fund by the end of the biennium. She said the budget uses more than $18 million in Fish and Game funds annually against about $14 million in unrestricted revenue, and that five of 193 full-time positions remain unfunded. The department warned that if federal grants were halted, it could cost about $5 million over five months and force the Fish and Game fund to cover the gap. Committee members also requested that future presentations be sent electronically in advance, and the department agreed to do so.

Transcript Highlights:

• Well, for case and point, I would like for it to be able to include regular routine maintenance as an
• But the bill specifically says you cannot include routine maintenance.
• I think the routine maintenance should be encouraged, because why would you encourage someone to put
• But the bill specific says you cannot include routine maintenance. Okay, so what's the fine line?
• And I believe that I think the routine maintenance should be encouraged.

Committee: House Special Committee on Tax Reform

Summary: The committee first heard House Bill 2923, which would give homeowners a temporary property tax exemption of up to four years on qualifying home improvements between $7,500 and $75,000, so long as the property is the owner’s homestead and the required intent and completion forms are filed. The sponsor said the bill is meant to encourage reinvestment in homes, including after catastrophic events, and said the fiscal note showed no impact. Members asked about the bill’s effect on assessors, taxing districts, school districts, the definition of homestead, and whether the state would reimburse lost revenue. Testimony in support argued the bill would reduce ambiguity in new-construction assessments, encourage repairs and improvements, and help homeowners avoid being penalized for fixing damaged homes. Concerns were raised about routine maintenance, the four-dwelling language, possible burdens on assessors, and whether the bill could affect senior tax freezes. The hearing on HB 2923 ended without a vote. The committee then went into executive session on House Bill 3256, adopted a committee substitute, and voted the substitute do pass by a roll call of five yes and one no. Discussion focused on criminal penalties in the bill, with the ranking member objecting to those provisions and noting that other states do not include them. The sponsor explained changes in the substitute, including broader retail-establishment language, explicit coverage of sports venues and concert halls, and removal of banks and credit unions from the bill. Members suggested further floor amendments and additional review of other states’ statutes. Finally, the committee heard Senate Joint Resolution 95, which would create the Show Me Prosperity Fund as a constitutional endowment intended to eventually replace all state-imposed taxes with investment earnings. The senator said the fund would be seeded by a one-time appropriation, managed by the treasurer, audited by the auditor, and protected from borrowing or diversion, with distributions capped at 3 percent. Supporters said the proposal would use compound growth to create long-term tax relief and eventually make Missouri the first state to eliminate state taxes; one witness called it straightforward and honest. Members questioned the size of the needed appropriation, how the fund would work if state income tax changes separately, whether state law allows the needed investments, and how the fund would avoid becoming unstable if distributions begin before it is large enough. No opposition testimony was offered, and the hearing concluded without action on SJR 95.

Transcript Highlights:

• This facility maintenance fund identifies two areas. The foundation repair is almost 75% complete.
• For the 2025-27 biennium, funded projects were selected from the Deferred Maintenance Report developed
• A majority of these maintenance needs are mechanical, plumbing, and exterior projects, such as boilers
• This assessment will pair with the state facility maintenance fund that is managed by OMB.
• They had identified facility maintenance needs.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes before hearing a series of informational updates. The Petroleum Council reported that North Dakota oil production is expected to remain relatively flat at just under 1.2 million barrels per day, with activity shifting northward in the Bakken as technology improves and three- and four-mile laterals boost well performance. The presentation also discussed oil and gas prices, gas taxation, flaring concerns, the importance of pipelines and other linear infrastructure, and enhanced oil recovery pilot projects supported by state and federal funding. Members asked questions about gas production taxes, natural gas liquids, and the outlook for drilling rigs and future production. The Office of State Tax Commissioner then reviewed the federal “big beautiful bill” and its estimated effect on North Dakota individual and business income tax collections. Staff explained that most of the individual income tax impact comes from the permanent increase in the standard deduction, while temporary provisions such as senior deductions, tip and overtime exclusions, and auto loan interest deductions have smaller or limited-term effects. They also noted that business tax changes, especially depreciation and expensing provisions, create a larger near-term cash impact, and that some FY25 collections likely reflected one-time oil field transactions that may have inflated the baseline used in earlier estimates. OMB provided updates on major capital projects and facility funding. For Capitol grounds improvements, officials described plans for 18th-floor renovations, wayfinding upgrades, public seating, lighting, tree management, and possible restroom and lobby reconfiguration, while also noting the governor’s residence security project and the discovery of human remains on the Capitol grounds. OMB and its consultants also reported on the state facility maintenance fund, including window replacement, boiler work, roof and foundation repairs, and a new facility conditions assessment covering more state buildings. Updates were also given on the new state hospital in Jamestown, the Minot state office building, and the use of federal state fiscal recovery funds, including possible future reallocations to the Department of Corrections. Finally, Legislative Council staff summarized the interim compliance report on legislative intent and trust fund activity, highlighting the status of lines of credit, Bank of North Dakota profit transfers, the statewide litigation pool, the new Office of Guardianship and Conservatorship, corrections planning, HHS program updates, and a likely future general fund request for the unemployment insurance modernization project. No formal votes were taken beyond approval of the minutes; the meeting was primarily informational, with members asking clarifying questions throughout.

Transcript Highlights:

• Table 2 is the maintenance, but this is Table 1 that we're talking through.
• And that was in the maintenance budget last year.
• When we saw that in the maintenance budget is because we did a one-time reduction.
• So that's all that did in the maintenance budget.
• Table two is your maintenance budget, but where this is the Department of Water Resources.

Transcript Highlights:

• So they are doing now a kind of Band-Aid maintenance treatment in a municipal water system.
• The Joint Finance and Appropriations Committee also acted on maintenance statewide decisions, so things
• They did, this last Friday, take a vote on those maintenance costs.
• for the 10 different functional areas will roll everything together from the base through these maintenance
• of fish species in the Columbia... ...the introduction and the maintenance of fish species in the Columbia

Committee: Senate Resources and Environment

Transcript Highlights:

• And as we have mentioned the great needs, you know, for our state, you know, for maintenance and for,
• So just keep an open mind to helping support us fund maintenance. in our local roads in a different way
• There are some different types of preventative maintenance techniques, whether it's concrete caps or
• The district engineers do know what their priorities are, working with their staff, their maintenance
• That would be our hope in the executive that we see continued investments in local projects maintenance

Bills: SB2

Committee: Senate Senate Finance