Transcript Highlights:

• We'll also see a pretty significant increase on line 12: $41 million for debt service.
• So $41 million for debt service.
• So that $30 million in additional debt service would be contingent on your action on Senate Bill 2.
• That would come out of, as I mentioned before, debt service for about half of it and about half of it
• That would come out of, as I mentioned before, debt service for about half of it and about half of it

Keywords: 996, all

Transcript Highlights:

• what finances PSCOC projects, though that share can fluctuate each year depending on overall state debt
• All of this is also only true if they have no outstanding debt.
• In FY24, districts were paying an average of just over 5 mills from that 15 mill limit in annual debt
• thirds of their bonding capacity is currently expended, and they're paying five mills annually in debt
• We could also incorporate debt load, bonding capacity, or annual debt service in the formula, which could

Transcript Highlights:

• One of these is that the cost of debt is high. For this.
• One of these is that the cost of debt is high. We have high interest rates on our mortgages.
• We have high interest rates if you're a company that wants to take out debt.
• And what this graph is telling us essentially is that as debt costs go up, construction goes down.
• They don't think they're going to be able to, for example, refinance their debt in the coming years at

Summary: The meeting began with introductions from members of the Joint Transportation Committee and a presentation from the Association of Washington Cities and the public works directors of Richland, Kennewick, Pasco, and West Richland. The cities described the Quad Cities region as one of the fastest-growing in the state and outlined shared transportation priorities that align with the committee’s focus on safety, multimodal access, climate resilience, and economic development. They emphasized Vision Zero efforts, complete streets, ADA accessibility, regional trail and bike/pedestrian planning, and coordinated long-range transportation and land-use planning to manage growth. The city officials also discussed major funding and delivery challenges, including rising construction costs, project phasing, pavement preservation, right-of-way acquisition, and delays caused by state and federal permitting and review processes. They highlighted regional cooperation through the Benton-Franklin Council of Governments, Good Roads, and local funding tools such as impact fees, transportation benefit districts, REET, tax increment financing, and state and federal grants. Specific projects discussed included Richland’s SR 240/Aaron Drive complete streets project and downtown connectivity work, Kennewick’s Columbia Center Boulevard improvements and rail study, Pasco’s Court/Road 68, Sylvester Street corridor, I-182 bridge/interchange work, and a new north-south bridge study, and West Richland’s SR 224 Red Mountain corridor project, which officials said was awarded under budget and is scheduled to begin construction. Committee members asked questions about sidewalk connections to schools, state-agency right-of-way timelines, apprenticeship utilization, contractor selection, and whether complete streets requirements add burdens to pavement preservation projects. The city officials said new development is generally meeting sidewalk standards, but older infill areas remain a gap; that state right-of-way transactions can take much longer than expected; that apprenticeship requirements are common but harder for smaller contractors and local labor markets; and that low-bid contracting leaves little room to screen for performance history. They also said complete streets requirements are usually manageable on major projects but can be difficult to absorb in smaller preservation work. The committee then shifted to a JTC-funded study on transit-oriented development, presented by Urban Institute researcher Yona Freemark. The study examined TOD conditions in 33 cities in Snohomish, King, Pierce, Clark, and Spokane counties near rail and bus rapid transit stations. Freemark said Washington’s housing affordability crisis is severe, especially near transit, and found that high-cost cities have seen more development near stations but also signs of gentrification and loss of affordable housing, while lower-cost cities have had less development and worsening affordability relative to income. He identified barriers including high debt costs, land costs, infrastructure costs, zoning and parking rules, and limited subsidies for affordable housing. He recommended more neighborhood infrastructure funding near stations, stronger affordable housing investment, and better use of public land, noting that HB 1491 and related legislation are already changing some local requirements.

Transcript Highlights:

• The ACLU is a proud member of Debt Free Justice California, where our mission is to reduce the harm of
• They face significantly more criminal fees and associated debt because of this reality.
• their families, often forcing families to choose between putting food on the table and paying their debt
• I want to extend my gratitude to the stakeholders like ACLU, Debt Free Justice, and Ella and Baker Center

Keywords: 987, senate, all

Transcript Highlights:

• And there's no group of people in this nation, in this state, that have paid a greater debt to building
• 40.280> greater in this state that have paid a greater in this state that have paid a greater debt
• 40.960> to<00:08:41.159> building<00:08:41.640> this<00:08:41.800> state debt
• to building this state debt to building this state to<00:08:44.000> overcoming<00:08:44.800><

Keywords: 923, senate, all

Transcript Highlights:

• Critical infrastructure, water, sewer, roads, police, debt service, those type things, I think, need
• Critical infrastructure, water, sewer, roads, police, debt service, those type things, I think, need
• You can't go into debt for a jail or sewer or something like that or a water system with just a one-year
• we've got today, as what Representative Wooden said, with gas prices, disposable income, credit card debt

Summary: The committee first considered House Resolution 1016, which would have allowed introduction of a bill by Representative Richmond addressing disclosure and restrictions for certain real-estate arrangements where buyers purchase interests in entities rather than direct ownership of property. Richmond said the measure was aimed at transparency, consumer protection, and preventing private tribunals or discriminatory practices, while several members questioned whether it would affect homeowners associations, hunting clubs, arbitration clauses, or duplicate existing law. After discussion, the committee voted down the resolution. House Resolution 1006, sponsored by Representative Schultz, proposed increasing the Homestead Tax Credit by $75, from $600 to $675, using a fund created by Amendment 79 and supported by sales tax revenue. Schultz argued the fund could support the increase now and that families needed relief amid high prices. The committee approved the resolution. The committee then heard House Resolution 1007, presented by Senator King and Representative Eaton, which sought to change how turnback funds are distributed to counties, with a focus on giving counties more predictable annual funding for roads, jails, water, sewer, public safety, and other infrastructure. Members raised concerns about taking $150 million off the top of sales tax revenue and about whether the bill should be handled through budget language instead; the resolution failed. House Resolution 1008, by Representative Wooten and Senator King, would have amended the LEARNS education program to reduce costs, limit or change eligibility, and add performance-based requirements and reporting for certain school-choice funding. Supporters said the program was financially unsustainable and needed accountability, while opponents argued the proposal would create larger problems and that the issue should be handled in the regular session. The resolution failed after a point of order prevented reading a supporting letter into the record. Finally, House Resolution 1009 and House Resolution 1013, both tied to Senator Bryant’s proposals on local control over crypto mines and data centers, were discussed together with testimony about water use, energy demand, and local opposition; both failed. House Resolution 1015, which would have amended the IDEA economic-development bill to remove eminent domain authority and address board accountability, also failed after members said more concerns remained to be worked out.

Transcript Highlights:

• Critical infrastructure: water, sewer, roads, police, debt service, those type things, I think, need
• Critical infrastructure, water, sewer, roads, police, debt service, those type things, I think, need
• You can't go into debt for a jail or sewer or something like that or a water system with just a one-year
• climate we've got today, as Representative Wooten said, with gas prices, disposable income, credit card debt

Summary: The committee first considered House Resolution 1016, presented by Rep. Marcus Richmond, which sought permission to file a bill aimed at consumer protection in certain housing arrangements where buyers purchase an interest in an entity rather than the property itself. Richmond said the measure was intended to improve transparency, prevent deceptive real estate practices, and ensure disputes would be handled in Arkansas or federal courts rather than private tribunals. Members raised concerns about overlap with existing law, possible effects on homeowners associations, arbitration clauses, hunting clubs, religious organizations, and the bill’s 25-acre exemption. After discussion, the committee voted down the resolution. House Resolution 1006, by Rep. Bart Schultz, proposed increasing the homestead tax credit by $75, from $600 to $675, using a fund created for property tax relief. Schultz argued the increase was supported by the annual report on the fund and was timely because of higher costs for gas and groceries. Members asked about using special language instead, whether the increase could be made retroactive later, and whether the governor had included it on the call. The committee approved the resolution. The committee then heard House Resolution 1007, presented by Sen. Brian King and Rep. James Eaton, which would have changed how turnback sales tax revenue is distributed to counties, with the first $150 million of sales tax revenue going into a fund for county infrastructure and each county receiving an equal share. Supporters said it would help counties with roads, jails, water, sewer, and other critical needs, while opponents questioned whether taking revenue off the top would harm other state services and whether the issue was urgent enough for a fiscal session. The resolution failed. House Resolution 1008, by Rep. Jim Wooten and Sen. King, sought changes to the LEARNS Act and school choice funding, including performance-based eligibility and reporting requirements. Wooten argued the program was financially unsustainable and that accountability was needed; members questioned whether the proposal would create a larger emergency and whether it should instead be handled through budget language. The resolution failed after a point of order interrupted the closing remarks. Finally, House Resolution 1009, presented by Rep. Ron McNair and Sen. King, aimed to restore local control over crypto mines and data centers, citing concerns about water use, electricity demand, Chinese ownership, and litigation tied to prior legislation. Members questioned whether the issue was truly emergent and whether the resolution was the right vehicle. The resolution failed. House Resolution 1015, by Rep. Howard Beatty, proposed amending the prior IDA bill to address concerns raised by constituents, including board accountability and removing eminent domain authority. Supporters said it would improve the bill before next session, but the resolution also failed. The committee then adjourned.

Transcript Highlights:

• I also currently represent a public housing tenant in a dispute with a debt collector.
• public housing tenant in a dispute<00:10:06.920> with<00:10:07.040> a<00:10:07.080> debt
• dispute with a debt collector. dispute with a debt collector.

Keywords: 912, senate, all

Summary: The Judiciary Committee heard testimony on Governor’s Message 725, the nomination of Daniel M. Gluck to serve as associate judge of the Intermediate Court of Appeals for a 10-year term. The chair announced a two-minute testimony limit, said the committee would not vote that day, and scheduled decision-making for the next day at 10:45 a.m. in Room 016. Testimony in support came from the Governor’s Office, judges and legal professionals, the Hawaii State Bar Association, and members of the public, including a child who described Gluck’s kindness and help in Girl Scouts. The committee reported 72 supporters, zero opposition, and one comment from the West Side Bar Association. Gluck thanked the committee and outlined his background in private practice, nonprofit work, and government service, including work in the executive, legislative, and judicial branches. He emphasized access to justice, pro bono representation, and his commitment to reducing the ICA backlog. In response to questions, he said he would focus on fuller staffing, shorter and more concise opinions, possible use of AI for limited administrative tasks, and process improvements to speed appeals. He also discussed appellate timelines, briefing schedules, and the value of oral argument for transparency and clarification. Members questioned him about impartiality, especially in cases involving tension between Hawaii and federal precedent. Gluck said judges must follow controlling law, including U.S. Supreme Court precedent on federal questions and Hawaii Supreme Court precedent on state-law issues, and that the judiciary should not make policy. He also described his current work as deputy corporation counsel, including HART, firearms licensing after Bruen, appeals, and pending state cases. No vote was taken, and the hearing was adjourned after questions concluded.

Transcript Highlights:

• And they carry real risk and debt and penalty.
• <00:07:04.720> real<00:07:05.080> risk<00:07:05.520> and<00:07:05.800> debt
• <00:07:06.120> and they carry real risk and debt and they carry real risk and debt and penalty

Keywords: 1183, house

Transcript Highlights:

• For example, both my parents work a job on top of the farm, and we're $5,000 to $10,000 in debt every
• $5,000<00:10:06.959> to<00:10:07.279> $10,000<00:10:08.000> in<00:10:08.240> debt
• <00:10:08.480> every<00:10:08.800> single $5,000 to $10,000 in debt every single $5,000
• to $10,000 in debt every single month.<00:10:10.080> Um,<00:10:11.040> that's<00:10:11.279

Keywords: 1183, house

Transcript Highlights:

• deferred presentment transactions, payday loans, and clarifies that licensees must comply with the Fair Debt
• Collection Practices Act only if the licensee uses a third-party debt collector.
• It also clarifies that licensees must comply with the Fair Debt Collection Practices Act only if the
• licensee uses a third-party debt collector.

Summary: The committee met with a quorum and heard several insurance and banking bills. HB 1399, relating to property insurance affiliates, would increase Office of Insurance Regulation oversight of transactions between property insurers and affiliates, require fair-and-reasonable documentation, review of dividends and asset pledges, contract termination clauses, affiliate registration, and penalties for violations. Members from both parties generally supported the goal of transparency and accountability, though some raised concerns about costs and whether the bill would actually return money to insureds. The bill was reported favorably. HB 427, on public adjuster contracts, would allow vulnerable adults or their legal representatives to rescind public adjuster contracts without penalty, reflecting the sponsor’s personal concerns about protecting elderly and otherwise vulnerable family members from predatory contracting. Public testimony included support from several industry and elder-law groups, while the public adjuster association warned the bill could unfairly target one profession and urged broader language. Members debated whether the bill should be expanded to cover other solicitations and whether legal representatives should be treated differently, but the bill was ultimately reported favorably. The committee also approved HB 893, which aligns bank handling of law-firm trust accounts with Florida Supreme Court rules and supports legal aid funding, and HB 767, a transparency bill requiring insurers to provide consumers with plain-language explanations of rate increases and related factors. Members emphasized consumer education and clearer disclosures, and HB 767 passed 2-0. Later, HB 381, the Office of Financial Regulation agency bill, was amended and reported favorably; it updates financial regulation provisions including cybersecurity-related requirements, money services business rules, credit union and financial institution provisions, and fee timing. HB 777, a related public-records bill protecting nonpublic personal information submitted to OFR, was also heard and moved forward without opposition.

Transcript Highlights:

• money on new projects, tariffs, anti-immigration policies by the federal government, and high costs of debt
• So there's cost of debt and cost of equity in what's going on, right?
• The cost of debt has increased rapidly because of higher interest rates in general, but this has resulted
• Essentially, if you are taking out debt and the interest rate is higher, then your long-term costs are

Summary: The Senate Housing Committee heard a series of work-session presentations focused on transit-oriented development, commercial-to-residential redevelopment, building code implementation, housing market trends, and the Covenant Homeownership Program. The first presentation, from the Urban Institute, reviewed research on HB 1491 and TOD feasibility, arguing that Washington has made major progress but faces diverging conditions across transit areas. The presenter said rising construction costs, higher interest rates, and lower rents in some markets have made many projects less feasible, and recommended targeted infrastructure funding for lower-market communities, adjustments to MFTE and affordability requirements by local market conditions, more support for very low-income housing in high-market transit areas, minimum density standards near stations, expanded public land/joint development tools, and better tracking of TOD outcomes over time. Committee members asked about AMI calculations, immigration’s effect on construction labor, developer input, and whether a tracking mechanism had been removed from the bill. The Department of Commerce then outlined implementation of HB 1491 and demonstrated the new Washington Zoning Atlas, which is live and intended to help visualize zoning, overlays, and station-area conditions. Commerce said local governments will designate station areas, update zoning and MFTE policies, and handle anti-displacement measures, with Vancouver and Spokane first to implement and Puget Sound following later. Staff described a timeline for updated MFTE guidance, station-area implementation guidance, a TOD model ordinance, and later rulemaking on variances. The committee also heard from the Lieutenant Governor’s office on a report about converting commercial properties to housing, which found substantial potential for redevelopment on vacant or underused commercial land, especially near transit, but noted barriers such as ground-floor retail mandates, affordability requirements, infrastructure costs, private covenants, and slow implementation. The office urged by-right residential use on commercial land and faster rollout of new housing laws. The State Building Code Council updated the committee on its three-year code cycle and several legislatively directed actions, including minimum dwelling size, emergency shelters, and especially single-exit stairs and multiplex housing. Council staff said those code changes are nearing completion and will provide prescriptive solutions, while noting that elevator size and requirements were not changed and would require separate legislative direction if the committee wanted to revisit them. Members discussed the cost impacts of building and energy codes and the council said it is required to consider economic impacts and is increasingly looking at performance-based approaches. Later, the Washington Center for Real Estate Research presented its annual housing report, showing that higher mortgage rates have sharply reduced affordability, flattened house prices in many cities, and slowed single-family permitting and completions, while multifamily construction has recently cooled after a prior surge. Finally, the Washington State Housing Finance Commission reported strong first-year results for the Covenant Homeownership Program, which provides zero-interest down payment assistance to eligible first-time buyers with family ties to Washington before 1968; the program assisted 547 homebuyers in its first fiscal year, with more than $60 million loaned, and the agency said participation has continued to grow after income-limit changes enacted in 2025.

Transcript Highlights:

• strong that they are able to complete unplanned capital improvements without taking on additional debt
• She was able to, and that's all credit card debt, but thanks to Representative Connors's bill, we're
• actually going to be able to have real traditional debt moving forward.
• divided by the number of units in the community or in the limited equity cooperative, plus a little for debt

Summary: The committee met for work sessions on land banking/shared homeownership and on maximizing existing housing stock. Members first heard an overview from Commerce on alternative homeownership models, including community land trusts, limited equity cooperatives, condominiums, accessory dwelling units, middle housing, church land for housing, and public land transfers. The discussion focused on how these models can help households build equity while keeping housing permanently affordable. Committee members asked about statewide counts of co-ops and land trusts, and Commerce said it does not track all of those entities directly. Pierce County staff then described the Pierce County Community Development Corporation’s rapid acquisition fund and its role in acquiring, holding, and transferring public land for affordable housing. They said the county used general fund and affordable housing sales tax dollars to buy properties, preserve a manufactured home park through resident ownership, and create a pipeline of sites for future development. Members asked about the advantages of a public development authority, funding sources, the use of surplus and underutilized public property, and how the model works with housing authorities. Spokane land bank staff followed with testimony that land banks can reduce blight, preserve affordability, and help nonprofits acquire land quickly, but that holding costs and taxes can make the work harder without state support. They also described brownfield assessments, donated properties, and work on Black homeownership and public surplus properties. The committee then heard from the Northwest Cooperative Development Center on limited equity cooperatives, especially in manufactured housing communities. The witness said Washington now has about 43 limited equity co-ops and that recent subsidy funding and legislation have accelerated resident purchases of manufactured home communities. Members asked how residents benefit from capped equity, how values are affected, and whether the model improves access to lending; the witness said the model stabilizes costs, allows modest equity gains, and that a recent law allowing manufactured homes in co-ops to be titled as real property should improve access to traditional financing. The committee also discussed House Bill 1974 from the prior session and possible updates to land banking legislation. In the second work session on maximizing existing housing stock, Commerce reviewed recent housing laws and implementation timelines, including ADUs, middle housing, condo liability reform, SEPA changes, tiny homes, and co-living. Members raised concerns about the long implementation horizon, vacancy data, corporate ownership of homes, and the need for better support for small landlords and first-time ADU owners. Sightline then testified on mobile dwelling units, arguing that RVs, tiny houses on wheels, and similar units are a low-cost, quick-to-install housing option that is often blocked by zoning; the witness said many Washington residents already live in these units, often informally. Finally, AARP discussed housing options for older adults, including ADUs, missing middle, manufactured home communities, co-living, universal design, and village-style support models, emphasizing aging in place and the need for more accessible, affordable housing choices.

Transcript Highlights:

• health and human services areas, like DSHS, DCYF, as well as Health Care Authority, higher education, debt
• Health and Human Services areas like DSHS, DCYF, as well as health care authority, higher education, debt
• Debt service is another big one, and that is largely dependent on the size of the capital budget and
• That would cover topics including K-12 basic education, debt service on capital projects, some basic

Summary: The committee held a work session focused first on juvenile rehabilitation system capacity. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth, and has longer lengths of stay, especially for “post-25” youth who must remain in secure facilities and cannot go to community beds. They described overcrowding at Green Hill School, placement limits at Echo Glen and Harbor Heights, staffing turnover, mental health acuity, and the need for more medium-security and specialized mental health beds. DCYF said it is pursuing a Parkland facility proposal, a staffing model decision package, and a broader feasibility study and master plan update. No votes were taken; members were asked to follow up with questions later. The committee then heard on behavioral health system capacity from the Behavioral Health Administration and the Health Care Authority. DSHS described growth in forensic and civil bed need, expansion at Olympic Heritage, Maple Lane, and Brockman, and construction of a new 350-bed forensic hospital at Western State expected to open in 2028. HCA reported progress on long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams, saying the community-based system is being expanded to support step-down care and reduce hospital reliance. Members asked about whether capacity is right-sized, the difference between facility types, and federal match eligibility for services. A federal funding update followed, covering the effects of H.R. 1 and H.R. 5371 on SNAP, Medicaid, marketplace coverage, long-term services and supports, K-12, higher education, and hemp regulation. OFM and agency staff said H.R. 1 adds work requirements, changes non-citizen eligibility, increases state administrative and benefit costs, reduces Medicaid and marketplace subsidies for some groups, tightens redeterminations, and may significantly affect provider payments and state-directed payments. H.R. 5371 extended federal funding through January 30, 2026 and included some agency appropriations and other provisions, including changes affecting hemp producers. Members asked about SNAP error rates and special enrollment periods. Finally, budget coordinator Mary Monroe gave a 2026 supplemental budget preview. She reviewed the state’s near general fund outlook, noting revenue declines since the enacted budget, the effect of reversions, and a preliminary maintenance-level outlook showing a projected increase in NGFO spending over the four-year period. She said the supplemental will reflect updated caseload and cost forecasts and mandatory impacts from H.R. 1, but not policy proposals. No actions or votes were taken during the session.

Transcript Highlights:

• The uncollectible debt report date modification and the extension of CIP eligibility for spouses of certain
• <00:04:05.360> The<00:04:05.519> uncollectible<00:04:06.159> debt same provisions
• The uncollectible debt same provisions.
• The uncollectible debt report<00:04:06.879> date<00:04:07.200> modification<00:04:08.159

Keywords: 1183, house

Transcript Highlights:

• But the ones that we do hire who already have that degree do come with a lot of student debt, and if
• They can focus on the program, they don't have to worry about the funding of it, they graduate debt-free
• And they have a lot of debt. So those are other problems with that.
• They have a lot of debt, like everybody else has said, and they're going to take a $20,000 to $30,000

Summary: The Appropriations Committee on Higher Education met to focus on nursing education funding, workforce supply, and Florida’s low NCLEX pass rates. The chair emphasized that Florida ranks last nationally in nursing exam pass rates and said the committee wants to use budget decisions and a forthcoming nursing bill to improve outcomes. The Florida Center for Nursing at USF presented preliminary workforce and education data showing RN supply is moving toward equilibrium with demand through 2037, while LPN shortages are projected to worsen, especially in some regions. The center also reported on enrollment, retention, faculty vacancies, and NCLEX trends, noting Florida still underperforms the national average but has shown some recent improvement, including higher RN pass rates in 2024 despite fewer test takers. The center highlighted that students who test sooner after graduation tend to pass at higher rates. A panel of nursing education leaders from public universities, state colleges, technical colleges, and private institutions described how prior state pipeline and line-item funding helped expand enrollment, simulation labs, faculty hiring, student support services, and partnerships with hospitals. UNF, Galen College, College of Central Florida, Keiser University, and Lorenzo Walker Technical College each reported strategies such as expanded simulation, mental health and social work support, test-prep and remediation, and efforts to grow faculty pipelines. Several speakers said faculty recruitment and retention remain major barriers because of salary competition with hospitals, faculty debt, and aging faculty. Technical college representatives also stressed the need to strengthen LPN pathways, English-language support, and LPN-to-RN bridge programs. Members asked for ideas to improve NCLEX outcomes and discussed possible policy options, including student loan forgiveness, critical shortage supplements for faculty, incentives for students to test soon after graduation, and possible changes to timing or regulation around NCLEX eligibility. Several witnesses supported more flexible or recurring funding, while noting that one-time line funding has been useful for simulation, scholarships, and faculty support but is harder to sustain. The committee adjourned after the discussion, with the chair saying the ideas would be considered in future funding and policy decisions.

Transcript Highlights:

• What amount of debt are we talking about that would be necessary for the state or local entities?
• What is the typical amount of debt on these loans, or is that a question for the board?

Bills: HB 1240, HB1353, HCR76, HCR90

Keywords: border region, infrastructure, economic development, government operations, education, international cooperation, infrastructure investment, bond issuance, state agencies, shrimp industry, federal regulations, foreign imports, economic impact, public health, Gulf Coast communities, Texas-Israel relations, Israel, Jerusalem, trade office, foreign relations

Transcript Highlights:

• And when I hear the other overall debt.
• The national debt is $36 trillion of debt that is going to be put on the backs not only of our children
• The national debt is $36 trillion of debt that is going to be put on the backs not only of our children
• The national debt is $36 trillion of debt that is going to be put on the backs not only of our children
• The national debt is $36 trillion of debt that is going to be put on the backs not only of our children

Keywords: U.S. House of Representatives Floor Proceedings on Wednesday, May 14, 2025, 1012, house, all

Transcript Highlights:

• are always making sure that ongoing costs are funded and that we're able to retire any outstanding debt
• Some of the best ways to do that are to build budget resiliency with reserve deposits and paying off debts
• Some of the best ways to do that are to build budget resiliency with reserve deposits and paying off debts

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• National debt. The annual deficit for this particular FY 24 year, recall, was $1.9 trillion.
• So, spending $1.9 trillion more than bringing in revenue, issuing debt, our annual debt payments are