Transcript Highlights:

• House Bill 758 essentially changes the allocation of supplemental CTE funds to 75% for enrollment-based
• funding and 25% for incentive-based funding.
• <00:37:58.359> of essentially changes the allocation of essentially changes the allocation
• > 75%<00:38:01.720> for supplemental CTE funds to 75% for supplemental CTE funds to 75%
• <00:38:06.520> the incentive based funding currently the incentive based funding currently

Keywords: 958, all

Summary: The committee first took up House Bill 669, sponsored by Representative Smith, which was presented as a response to a September shooting incident in his district that led to school closures and missed instructional days. Smith said the bill was intended to help school districts recover lost days caused by extraordinary emergencies and not to set a broad precedent. Members asked whether districts had adjusted calendars to make up time, and Smith said many had already extended days or moved calendars into June. The committee then voted to pass House Bill 669, with all members present voting yes. The committee next heard House Bill 621, as amended by a committee substitute that removed a homeschooling-related section and left only the school-threat provisions. The bill would allow courts to impose a fine on parents when a child is adjudicated for terroristic threatening if law enforcement incurred excessive costs, and it would require a mental health assessment for the child. Representative Duvall and Officer Steve Chappelle supported the measure, arguing that online school threats spread fear, disrupt attendance, pull law-enforcement resources from other schools, and should create more parental accountability. Representative Riley also supported the accountability goal, citing lost instructional time and a recent student suicide tied to online issues. Several members raised concerns about the bill’s scope and due process. Representative Josh Callaway questioned why this offense should be the starting point for parental fines and warned about a slippery slope in holding parents liable for children’s crimes. Representative Willner said the bill seemed more like a judiciary issue, questioned whether punishment can make parents better parents, and asked about diversion programs and the meaning of the detention language. Representative Tipton pointed to existing statutes on mental health assessments and terroristic threatening penalties, and said the committee substitute would alleviate many concerns. Scott West, speaking for Kentucky Policy and the Kentucky Association of Criminal Defense Lawyers, argued that the mandatory detention language would remove judicial discretion and that the parental fine provision could conflict with existing due process protections requiring notice, a hearing, and a finding that lack of supervision was a substantial factor in the child’s delinquency. The transcript does not show a final vote on House Bill 621 in the portion provided.

Transcript Highlights:

• Next are two new projects funded 50% or more from federal funds for the Department of Military Affairs
• 100% federal funds.
• <00:05:18.400> 50%<00:05:18.960> state funded 50% federal funds and 50% state funded
• <00:08:13.360> fund.
• Funds will be dispersed on a funds.

Keywords: 00:01 Call to Order and Roll Call 01:49 Approval of Minutes 02:06 Information Items 03:48 Project Rpt from Finance and Admin Cabinet 14:38 Lease Rpt from Finance and Admin Cabinet 18:50 OFM – Ky Infrastructure Authority 26:40 OFM – Cabinet for Economic Development 31:50 Office of Financial Management 40:40 Remaining 2025 Meeting Dates 41:25 Adjournment, 958, all

Summary: The meeting opened with prayer and a quorum call, then the committee approved the prior meeting minutes. Staff reported several informational items, including University of Kentucky medical and research equipment purchases, school district debt issues, leasehold improvements, and Kentucky Community and Technical College System bond allocations. The committee then approved a line-item appropriation increase of $350,000 in federal funds for the Department of Fish and Wildlife Resources’ Cumberland Forest Conservation Program, along with two Department of Military Affairs projects: the Ashland Readiness Center window replacement and the MATES HVAC replacement at Fort Knox. It also approved four larger maintenance-pool projects without further action: HVAC and smoke evacuation work at the Kentucky State Penitentiary, HVAC and hot water tank replacements at Oakwood, a Green Bank energy-savings performance project across state facilities, and roof replacement at Lake Barkley Lodge. Members asked about the prison project, the roof procurement process, and whether minority-owned firms receive special bidding preference; staff said capital projects are awarded through open low-bid procurement with qualification and warranty requirements, and that minority participation is preferred but not a bidding criterion. Two lease modifications were approved for Franklin County agencies: an expansion and renovation for the Auditor of Public Accounts and a downsizing and renovation for the Kentucky Workers Compensation Funding Commission. The committee also approved Kentucky Infrastructure Authority items, including a Monticello sewer loan, several Cleaner Water Program grants and reallocations, and a House Bill 1 water grant that required no action. Members questioned engineering costs and were told the KIA board reviews technical details and anomalies before approval. Finally, the committee approved six economic development grants: one EDF grant for V Simple in Jefferson County and five KPDI EDF grants for projects in Breckinridge, Erlanger, Todd, and Washington counties. The last action item was approval of Western Kentucky University’s up-to-$10 million general receipts revenue bond issue for athletic facilities. An informational Kentucky Housing Corporation multifamily bond item prompted concern from members about rising per-unit costs for affordable housing, and they requested further explanation from the housing corporation at a future meeting.

Transcript Highlights:

• cancel to the general fund. cancel to the general fund.
• funding is received. funding is received.
• service fund.
• I'm not asking for more funding. I'm asking for fair funding.
• I'm not asking for more funding. I'm asking for fair funding.

Keywords: 1187, senate, all

Transcript Highlights:

• At this point, there is still funding in that fund. Okay.
• The funds are fairly tight and getting near their limit, so we have those funds in that regional literacy
• This funding is one-time funding. This funding was provided in the 2023 legislation.
• pay until the funds are exhausted.
• the general fund.

Bills: HF2430, HF2433

Keywords: education finance, teacher training, Read Act, state aid, school funding, education funding, children with disabilities, transition aid, special education, school district consolidation

Transcript Highlights:

• Did we leave funds or 80% federal funds.
• the general fund and the highway fund. the general fund and the highway fund.
• Um, so I think there will be more to come in terms of how to allocate funds to maintain the roads, but
• Um, so I think there will be more to come in terms of how to allocate funds to maintain the roads, but
• > the of how to allocate funds to maintain the of how to allocate funds to maintain the roads,<01

Keywords: 1191, senate, all

Transcript Highlights:

• The allocation of 12,000 National Guard units is based on 1958 population.
• Is there a funding mechanism for this program?
• There is funding associated with the bill for the foster care pilot program.”
• The bill increases the minimum SHIP allocation and provides funding for the Florida Housing Finance Corporation
• Funding requests are limited to $15 million annually.

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several introductions recognizing visiting groups, including FSU students and officials, Catholic lay leaders, Broward County school officials and students, and veterans-related guests. The chamber then took up a series of bills, with several routine reviser measures passing unanimously: SB 36 adopting the 2025 Florida Statutes, SB 38 changing a division name in the statutes, SB 40 deleting repealed provisions, and SB 42 cleaning up obsolete language and cross-references. SB 50 on nature-based coastal resilience was amended to strengthen the Florida Flood Hub’s role and passed 39-0 after debate about mangroves, oyster reefs, living shorelines, and hybrid green-gray infrastructure. SB 116, a major veterans bill, passed 39-0 after extensive discussion of veteran benefits awareness, mental health training, coordination with federal agencies, adult day health care, and the Florida Veterans Hall of Fame. SB 118 on presidential libraries passed 36-3 after questions and debate over state preemption of local zoning and related regulation, and SB 126 on mailing prescription hearing aids passed 39-0 to expand access for adults after licensed evaluation. The Senate also passed SB 150, as amended, to conform to the House by changing the bill’s wording from “animals” to “dogs” in the natural-disaster abandonment context. SB 294 passed 38-0 to limit collaborative pharmacy practice from being expanded to certain serious cardiac conditions. Senate Memorial 314 was adopted by voice vote, urging Congress to seek a larger Florida National Guard force structure. SB 322 passed 39-0 creating a nonjudicial process for commercial property owners to have unauthorized occupants removed by the sheriff. SB 348 passed 39-0, making it an ethics violation to falsely claim a military rank for material gain and allowing delinquent ethics fines to be withheld from public paychecks. SB 7012 on child welfare passed 39-0 and would recruit former public safety workers into CPI/case manager roles, create a treatment foster care pilot in two judicial circuits, and improve data collection and services for commercially sexually exploited children. Later, the Senate returned to SB 108 on administrative procedures, which passed 39-0 after debate over a five-year review cycle for agency rules, reporting requirements, and greater transparency in rulemaking. SB 160 on public accountancy passed 39-0 after an amendment clarifying contracted services and discussion of easing pathways into the CPA profession while maintaining standards. SB 110 on rural communities passed after an amendment package and extensive debate, with provisions described as creating an Office of Rural Prosperity, a Renaissance grant program, housing and road funding, school support, and health care investments for rural areas. At the end of the session, the Senate waived rules to immediately certify all passed bills to the House, observed a moment of silence for former Surfside Chief John Healy, and received additional announcements before adjournment.

Transcript Highlights:

• Therefore, if we are funded, July 1, and I believe that we will, if we are funded, we look to have all
• are the ones that you all have funded are the ones that you all have funded for<00:21:29.280>
• the ones that we are requesting funding the ones that we are requesting funding to<00:21:37.120>
• I'm not for not funding this project. I think that we have to fund it.
• And that's this project started when it was funded in 2018, but it was funding was allocated.

Keywords: Call to Order and Roll Call- 00:00:23 Approve Minutes from January 15, 2026- 00:01:03 Kentucky State Police Update on SERVS- 00:01:47 Adjournment- 00:54:18, 958, all

Summary: The committee received an update from Kentucky State Police on the SERVE radio system project, with David Barker and consultant Brandon Marshall explaining progress across multiple phases. They reported that Mayfield PD fire/EMS and Graves County Sheriff are fully operational on the system, Phase 2 is 77% complete with 48 existing sites finished and 13 new sites pending acquisition, and Phase 3A remains funded but not yet complete. They also said router upgrades are complete, radio dispatch positions and mobile/portable rollout are complete, and microwave replacement is nearly finished, with one remaining site delayed by weather. A major part of the discussion focused on why the project has taken so long and why equipment is being purchased before some sites are built. KSP said the project began as a radio system upgrade but expanded as they discovered additional infrastructure needs, including routers and microwave links that were not in the original scope. They explained that equipment must be purchased in advance to match versions and preserve warranty coverage, and that older existing tower sites are being refurbished rather than replaced to make use of existing public-safety infrastructure. They also said all expenditures are tracked in inventory and accounting records and that the project remains transparent. Members pressed for a master plan and timeline, with Representative Smith arguing the project needs clearer structure and fewer layers of decision-making. KSP acknowledged the need for a timeline, said they had plans but not a full timeline earlier, and stated that if the remaining funding is approved they expect to complete the remaining existing sites and 25 new sites by June 30, 2027. They said 56 new-build sites remain, identified as the yellow-dot sites on the maps, and that some sites may be able to use existing Demar/National Guard tower locations. The committee did not take a vote on the project during this portion of the meeting.

Transcript Highlights:

• And this Power Fund sets up this infrastructure so that when we do decide to allocate money, when we
• hopefully have money for that again, and surplus again, that we can allocate that.
• And then also around public funding of infrastructure and the potential savings there.
• And about the state's wildfire fund and the condition of it.
• Finally, on this Power Fund, we support the direction of that.

Summary: The committee heard several energy and water affordability bills, with extensive testimony on SB 254 by Senator Becker, SB 541 by Senator Becker, SB 453 by Senator Stern, SB 292 by Senator Caballero, and SB 473 by Senator Padilla. SB 254 was presented as a broad utility affordability package addressing short-term climate credits, a Power Fund, tighter scrutiny of rate increases and utility profits, wildfire spending, securitization of future utility costs, and streamlining. Supporters, including TURN and several environmental and public power groups, said it could lower bills and reduce long-term costs; opponents from investor-owned utilities, labor, business, and local government raised concerns about market impacts, insufficient analysis, and the breadth of the bill. The committee approved SB 254 on a 6-3 vote and placed it on call. SB 541 focused on load flexibility and using existing grid capacity more efficiently. Senator Becker described it as a transparency and planning measure to identify cost-effective load shifting and reduce peak demand, while supporters said it could improve resiliency and save money. Several CCAs and utilities opposed the bill in print or unless amended, arguing that some language implied a mandate and that the concept needed more cost-effectiveness analysis; the author said amendments would remove language dividing the state goal among retail suppliers and clarify that the bill is not a procurement mandate. The committee passed SB 541 as amended to Appropriations on a 9-1 vote and left it on call. SB 453 by Senator Stern would return unspent ratepayer-funded microgrid program dollars and was described as a way to keep the lights on and redirect unused funds. It drew support from local government and environmental groups, with PG&E expressing concern about how the bill would affect its ability to spend awarded funds. The committee passed SB 453 as amended to Appropriations on a 12-0 vote. SB 292 by Senator Caballero would require more granular outage and reliability reporting, including census-tract-level data, to better inform resilience planning after PSPS events; utilities opposed unless amended, citing duplicative reporting and regulatory overlap, but the bill passed 12-0 to Appropriations. SB 473 by Senator Padilla would require or expand water utility decoupling to promote conservation and affordability. Supporters, including water utilities, labor, business, and local government groups, argued decoupling stabilizes revenue, supports conservation, and can keep rates lower for low-use customers. The Public Advocates Office opposed, saying prior pilot data showed no conservation benefit and about $1 billion in added costs, and that the CPUC had already rejected similar requests. Committee members questioned the conservation and capital-investment effects of the different rate structures; the author and supporters argued decoupling helps utilities fund infrastructure while allowing lower fixed charges for low-use customers. The transcript ends during that discussion, before a final vote on SB 473 is shown.

Transcript Highlights:

• funding.
• funding.
• funding.
• funding.
• funding.

Keywords: 910, house, all

Summary: The House Finance Committee held an informational briefing with the University of Hawaiʻi, led by new President Wendy Hensel and Vice President for Budget and Finance Calbert Young. Hensel outlined the university system’s scope, student demographics, research activity, and campus missions, emphasizing four strategic priorities: serving Native Hawaiians and Hawaiʻi, student success, workforce development, and economic diversification through innovation and research. She highlighted the system’s enrollment, research funding, and the roles of Mānoa, Hilo, West Oʻahu, the community colleges, and specialized institutions such as JABSOM and the Cancer Center. Young then reviewed the budget request, focusing largely on making prior one-time appropriations permanent and supporting recurring needs. Items included funding for Mānoa athletics, the Hawaiʻi Institute for Marine Biology, K-12 teacher education, Pamantasan Council support, Hilo programs, Windward’s mental health technician certificate, Maui’s practical nursing bridge program, and student support positions such as financial aid and admissions counselors. He also described workforce-related requests tied to nursing expansion at Mānoa and West Oʻahu, as well as facilities support at West Oʻahu. A major portion of the testimony addressed the university’s two Kakaʻako medical facilities. Young explained that declining tobacco settlement and cigarette tax revenues are no longer sufficient to cover debt service for JABSOM and the Cancer Center, so the governor’s budget includes general fund support to supplement those obligations. He also described a regents-approved request not included in the governor’s proposal: expanding the Hawaiʻi Promise financial aid program to the four-year campuses, estimated at about $11–12 million. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• Um, but I would appreciate you for putting some funding into the down payment assistance program especially
• 11.360> some I would appreciate you for putting some I would appreciate you for putting some funding
• c> the<00:03:12.239> down<00:03:12.480> payment<00:03:12.720> assistance funding
• Um, but given our targets, given the resources that we were allocated, which you fought very hard for
• , which you fought that we were allocated, which you fought very<00:04:44.000> hard<00:04:44.160

Keywords: 1187, senate, all

Transcript Highlights:

• It just sets the parameters for how these funds will be allocated through the Department of Agriculture
• the parameters for how this m this sets the parameters for how this m this These<00:02:32.720> funds
• <00:02:33.000> will<00:02:33.120> be<00:02:33.319> allocated<00:02:33.879>
• > through These funds will be allocated through These funds will be allocated through the<00:02:34.319

Keywords: 958, all

Summary: The Senate Standing Committee on Agriculture met with a quorum present and opened with the Pledge of Allegiance, led by guest Bob James of Barren County. The chair recognized visiting groups, including the Kentucky Leadership Program and the Kentucky Cattleman’s Leadership Program, before turning to the day’s only agenda item, Senate Bill 28. The committee adopted a committee substitute for SB 28 by motion and second, with no opposition recorded. The chair explained that the bill creates the framework and parameters for distributing $5 million in economic development funding included in the 2024 budget through the Department of Agriculture. Commissioner of Agriculture Jonathan Shell testified in support of the bill and described it as enabling legislation to help Kentucky attract more end users, processors, and further-processing operations. He highlighted the importance of existing agricultural processing in the state, especially poultry, citing growth in agricultural cash receipts from $3.1 billion in 1996 to $8.3 billion more recently, with poultry rising from 5% to 25% of the total. He also pointed to major processing facilities, job creation, and the broader impact on farmers and corn markets, including examples from Hopkinsville and other regions.

Transcript Highlights:

• And the ongoing allocation in fiscal year 25 and 26 is really allowing for consistent funding levels
• this allocation, the need is greater. this allocation, the need is greater.
• And we also know that... schools outside of the grant funding. schools outside of the grant funding.
• I think when you have requests for funding coming in that are double what we have allocated to put out
• Where did the funding for this come from? Is it district funding, state funding, federal funding?

Keywords: 1183, house

Transcript Highlights:

• funding change.
• Funded. To 75 to 75% as required. Federal change to work forest.
• Arpa fund of. >> They have on the our funds that is reached his period of performance and those funds
• It's looking like that funding for snap education is going away.
• allocations, this baby best practices are best ways to allocate funds to improve the process is or to

Transcript Highlights:

• It expands the funds eligible to receive funding from the water fund to allow transfers to the Flood
• to have access to the funding.
• Having access to this Texas Water Fund funding is also very important.
• areas fund under the Texas water fund, as well as funding for wastewater infrastructure projects and
• It's funding, funding, funding, and yet we see project costs increasing by 20, 40, 50% year over year

Bills: SB7

Keywords: water infrastructure, financial assistance, Texas Water Development Board, water supply, environmental sustainability, 1184, house, all

Transcript Highlights:

• Half of our funding for our programs is state-funded when federal funding is at risk.
• These funds were allocated to CDPH in the 2023 budget to be spent over four and a half years.
• and Equity Fund, or TGI Wellness Fund for short.
• Improvement fund abolishment and sub fund conversion.
• . funding.

Keywords: 988, house, all

Transcript Highlights:

• So we ended up for 2025–27 general funds at $1.2 billion and total funds at $1.7 billion.
• Funding for compensation at Western comes from two sources, either state funds or local funds, which
• The fund split is a mechanism.
• The fund split is a mechanism which splits the cost of compensation increases between state funds and
• funded by research grants.

Summary: The Joint Committee on Employment Relations met on May 8, 2026, to review goals and objectives for the 2027–2029 master collective bargaining cycle and to hear updates on higher education and Washington Management Service bargaining. OFM’s Jenny Sheehan outlined the state workforce, noting that most employees are represented, the workforce remains heavily governed by civil service rules and CBAs, and the state is entering bargaining under a constrained hiring and budget environment. She described the bargaining timeline, the role of the June revenue forecasts in determining whether targeted compensation increases can be funded, and the state’s goals of affordability, maintaining labor relations, supporting equity, and addressing non-economic issues such as AI use, leave, immigration-related workplace concerns, and union access in a hybrid work environment. Sheehan also reviewed the 2025–2027 bargaining cycle, including the prior WPEA ratification issue and the requirement that tentative agreements be submitted by October 1 for financial feasibility review and possible legislative funding. She said the 2025–27 agreements cost about $1.2 billion in general funds and $1.7 billion total, excluding the later-funded WPEA agreements. In response to a question, she explained that paid family and medical leave is not bargained over directly because it is governed by statute and ESD rules. She then presented on Washington Management Service bargaining, explaining that only certain WMS employees are eligible to bargain, that representation remains small, and that current WMS contracts are handled through addenda to existing agreements. She also described interest arbitration for certain groups, including ferries and public safety-related employees, and said arbitration awards still must be financially feasible and submitted by October 1. The committee also heard from Western Washington University and the University of Washington on higher education bargaining. Western described its locally bargained contracts, the importance of local bargaining for workload, tenure, grievance, and safety issues, and the impact of the state fund split on budget planning. Western said it has no state funding for student compensation and has requested inclusion of student employees in the wage base. UW outlined its large workforce and the different bargaining frameworks under RCW 41.56 and 41.80, emphasizing that state funding and tuition make up only a portion of its budget and that the fund split and health care cost increases significantly affect compensation planning. UW also highlighted its request for state funding for academic student employee compensation, saying rising costs are reducing the number of positions and affecting class sizes and the academic pipeline. No votes were taken, and the meeting adjourned after members discussed the upcoming bargaining and arbitration timelines.

Transcript Highlights:

• So how would you suggest this bill be amended so that we do look at space allocation?
• It was one of the things when I was in GBO previously—we were looking at space allocation and bringing
• and bringing looking at space allocation and bringing people<00:07:44.159> back<00:07:44.759>
• We're going to take the word 'positions,' which is in the measure, and replace that with 'allocations
• And finally, Senate Bill 1306, relating to procurement automation special fund.

Keywords: 912, senate, all

Summary: The committee met for joint decision-making on several measures related to elections, telework, procurement, hiring, public records, and public meetings. On Senate Bill 444, testimony was largely opposed or in comment, and the chairs said the bill raised real issues that needed more time; they deferred it for the year. Senate Bill 1091 on telework and space allocation drew support and discussion about DAGS’ role versus the Department of Human Resources; the committee agreed to amend it in a Senate Draft 1 to remove reference to OE, add a DAGS management analyst position, change “positions” to “allocations,” limit the assessment to executive branch departments in DAGS-managed or DAGS-leased facilities, and add a defective date, then passed it with amendments. Senate Bill 1057 on apprenticeship-related bid incentives received mixed testimony, including support from labor and opposition from some contractor groups, and was passed as a Senate Draft 1 with technical amendments and a defective date. Senate Bill 1065 on skills-based hiring, which would bar bachelor’s degree requirements for most state jobs with exemptions, had support from the Comptroller and outside groups and was passed with technical amendments and a defective date. The committee also took up several procurement and accountability measures. Senate Bill 92 on emergency medical response/defibrillators was deferred indefinitely because a pilot project is already underway in the Capitol building and the committee wants to use that information before expanding. Senate Bill 1175 on a past-performance procurement database was amended to add general fund appropriations and committee-report language about funding needs, then passed. Senate Bill 1587 on retainage was heavily amended to define total project budget, revise retainage language, leave key percentage and day limits blank for further review, limit application to contracts executed after January 1, 2026, and add a defective date; it passed as amended. Senate Bill 1543 on government accountability was amended to incorporate procurement officer changes and add language ensuring inherent government functions are not delegated to contractors, then passed. Senate Bill 1255 on government records was amended to clarify that records used in performing a government function are public records subject to UIPA, add contractor recordkeeping/access requirements, protect certain confidential contract information, and add a defective date; it passed. Additional measures were either deferred or advanced with amendments. Senate Bill 1513 on appropriations was deferred to a time certain on February 11. Senate Bill 1616 on care centers was converted into a feasibility study and passed with a defective date. Senate Bill 74 on state construction projects was deferred indefinitely due to concerns it could slow projects and duplicate another measure. Senate Bill 125 on state organizations and administrations was amended to codify Administrative Directive 19-02, with a note about a possible title issue, and passed. Senate Bill 786 on government records was deferred to February 11 for further amendment work. Senate Bill 1611 on government positions was amended by removing section two and passed. Senate Bill 1637 was deferred for the year after testimony indicated the action could already be done. Senate Bill 1651 on public meetings was amended to require board packets by the third business day before a meeting, remove the word “full,” and adjust notice language, then passed. Senate Bill 1617 on public meetings was deferred because the Office of Information Practices reported no complaints. Senate Bill 1253 on boards and commissions was deferred indefinitely due to no testimony. Senate Bill 1031 on advisory referendums was deferred to February 11 for possible amendments. Senate Bill 1306 on a procurement automation special fund was amended to align procurement statutes and add the School Facilities Authority executive director as a chief procurement officer, then passed.

Transcript Highlights:

• What portion of the funding got allocated? >> What portion of the funding got allocated?
• What portion of the funding campuses. What portion of the funding got<01:10:42.400> allocated?
• <01:20:47.920> Here's<01:20:48.560> my allocate funds to do that.
• Here's my allocate funds to do that.
• are allocated to us and it is our funds are allocated to us and it is our responsibility<01:29:09.760

Keywords: 912, senate, all

Transcript Highlights:

• We'll also look at how much of the general fund state budget is being allocated to pensions.
• Pension funding, long-term pension funding, determining contribution rates, measuring the program's funded
• of pension funds to fund pension issues.
• funds to fund and pension issues.
• pension fund.

Summary: The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states. The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans. Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting. Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.

Transcript Highlights:

• The pediatricians in Texas are helping to care for children and are doing so with the funds allocated
• Texans, and we thank this committee for allocating $18 million in funds to address increased ECI program
• One option is to allocate additional funding to expand these waiver programs. Bill Combest.
• We thank this committee for allocating... $18 million in funds to address increased ECI program caseloads
• Funding for 2-1-1.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all