Transcript Highlights:

• That big $100 million pot can be for tribal infrastructure or must be for tribal housing infrastructure
• or must be for tribal housing infrastructure.
• Then item number six is for the Water Security Planning Act.
• It's for infrastructure on the acequias. It's for infrastructure on a lot of our public ditches.
• And trust me, as a water engineer, as a guy that lives off of infrastructure, infrastructure, I know

Keywords: 996, all

Transcript Highlights:

• of State's facility security, resulting in the initiation of the SOS building security improvement project
• of State's facility security, resulting in the initiation of the SOS building security improvement project
• By centralizing the infrastructure, configuration, security, governance, and ongoing model management
• By centralizing the infrastructure, configuration, security, governance, and ongoing model management
• to keep that infrastructure alive.

Summary: The Assembly Budget Subcommittee 5 on State Administration held a May Revise hearing focused on state administration proposals, with the chair noting no actions would be taken and all items would remain open. The committee heard presentations on a range of budget proposals, including technical adjustments for the Governor’s Office of Service and Community Engagement and the California Workforce Development Board, security and election-related funding for the Secretary of State, modernization and loan-backfill requests for the Department of Consumer Affairs, and multiple Employment Development Department updates covering EDD Next, UI and DI/PFL benefit estimates, workforce funding, and an EMT training reappropriation. Several items drew discussion from the LAO and committee members. The LAO generally supported technical or modernization items such as PERB’s implementation requests, GoServe’s College Corps adjustment, the Secretary of State’s security and HAVA grant items, and the Board of Pharmacy modernization proposal, but raised concerns about the Bureau for Private Postsecondary Education’s proposed $10 million General Fund backfill and interest-free loan language. For EDD, the LAO flagged the size of the DI/PFL benefit adjustment and the unusual structure of the document management system proposal within EDD Next, while EDD said the changes reflected higher participation and benefit levels after SB 951 and ongoing modernization needs. The Department of Industrial Relations drew the most extensive questioning. It proposed funding for legal unit reclassifications, EAMS and Cal/OSHA data modernization, a new Cal/OSHA emerging technologies unit, a COYA reappropriation, and trailer bill changes requiring electronic payment of employer assessments and adjusting the Workers’ Compensation Appeals Board timeline. Members pressed DIR on high vacancy rates, long wage theft and workers’ compensation backlogs, low collection rates for fines, and the need for clearer workload and outcome measures. DIR said the requests were intended to improve efficiency, support audits and corrective action plans, and better address emerging workplace risks, while the LAO said the workload drivers behind delays remain unclear. The hearing also included support for CalHR’s employee assistance program consolidation and CDT’s proposal to expand “Poppy,” a statewide generative AI assistant for state employees.

Transcript Highlights:

• . infrastructure. infrastructure.
• Um we're doing a lot on infrastructure. Um we're doing a lot on infrastructure.
• infrastructure and reducing the burden. infrastructure and reducing the burden.
• it probably will be for infrastructure. it probably will be for infrastructure.
• build infrastructure. build infrastructure.

Keywords: 910, house, all

Transcript Highlights:

• Investing in water infrastructure today is critical.
• Or aging infrastructure, or some combination of both upgrading facilities.
• Madam Chair, Senator, it is primarily aging infrastructure and cost. of infrastructure improvements.
• Russell, whenever we're talking about the aging infrastructure, the cost of the infrastructure now, whenever
• Sometimes working with Homeland Security, though, is something else.

Transcript Highlights:

• So this distributed ledger technology is more for security of data, a higher level of security, or just
• If we couldn't fit that into that more secure system, I'll just say more secure system, because that's
• The density of the equipment is not as demanding as this hyperscale infrastructure, as this AI infrastructure
• So this is around current infrastructure.
• Secure the sustainable funding.

Summary: The committee received several informational reports from NDIT and DPI. Justin Data reviewed the quarterly major IT project portfolio, noting the portfolio was slightly under budget and behind schedule overall, with three red schedule items: Bed Management System and Vital Records were essentially complete and being closed out, and the Roadway Capital Planning Project was delayed by vendor bug fixes after testing. He also summarized recent project startups and closeouts, including the Victim Notification System, Medicaid data exchange, Highway Patrol’s motor carrier permit system, and several completed HHS and RIMS projects. Members asked for follow-up on ADA compliance work, the public-facing RIO website, and the state’s mainframe retirement timeline, and staff agreed to provide updates later. Craig Falkley reported on coordination of services with political subdivisions and higher education, including StageNet, cybersecurity, radio/911 services, and PeopleSoft coordination. He also explained distributed ledger technology as a tool for transparency and fraud prevention, but said it is not widely used in state government and suggested the report be modernized to focus more broadly on emerging technologies such as AI and cybersecurity. The committee generally agreed that the topic should be updated. Chris Gurgan presented the mandatory cybersecurity incident reporting program created by HB 1314, explaining how agencies and political subdivisions report incidents through NDIT’s website or service desk. He said 77 incidents had been reported since 2021, 47 met the statutory definition, and most were phishing-related; most reported incidents were resolved, with one recent ransomware matter still open. He also reviewed notable incidents since the last report, including the PowerSchool compromise, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise, and a recent ransomware incident involving a non-state critical infrastructure entity. Members asked about recovery of stolen funds, early warning signs, smishing, training, MFA, conditional access, and cybersecurity maturity assessments; Gurgan said the state uses MFA and conditional access, provides awareness training to state employees, and would return with more information on maturity assessments. Tony Ambrose then updated the committee on the K-12 student information system bridge project. He said district implementation of Infinite Campus had begun statewide, but the data migration vendor originally selected was terminated for poor performance and replaced by Aurora Educational Technology, which had experience with similar statewide migrations. He also said DPI is migrating special education data from Tynet into Infinite Campus, and that some SLDS-based tools such as e-transcripts and Choice Ready may not function exactly as they do now at July 1, requiring interim or alternative solutions. Members raised concerns about summer school disruptions, the timing of the cutover, and whether the new system would support existing reporting and transcript functions; DPI said it was working on identity, authentication, data-sharing agreements, and post-go-live integrations, and would continue to refine the plan beyond June 30.

Transcript Highlights:

• The governor has a security detail. His family has a security detail.
• The governor has a driver, maybe part of the security detail.
• The court system and security also cost the county.
• Infrastructure, for example.
• the backlog and infrastructure needs that we had that were created. ...infrastructure needs that we had

Summary: The Select Committee on Property Taxes heard first from city representatives through the Florida League of Cities, who argued that property taxes are a stable local revenue source that funds core services such as police, fire, parks, public works, and stormwater work. Casey Cook emphasized that cities are optional governments with widely different tax bases and service levels, that exemptions shift the burden to fewer taxpayers, and that transparency already exists through TRIM notices, public budgets, and local hearings. Sarah Campbell of Fernandina Beach, T. Michael Stavris of Winter Haven, and Stephen O’Kee of Port St. Lucie described their budget processes, the share of general-fund revenue coming from property taxes, reserve policies, debt and capital planning, and the impact of inflation, minimum wage increases, and personnel costs. They all said local governments need predictable revenue and that any property tax changes would require careful consideration of replacement funding or service reductions. Members questioned the city panel about whether homebuyers are clearly informed about city versus county taxes and services, the role of HOAs, how many lobbyists cities employ, reserve levels, average salaries, and whether utility revenues are used only for utility purposes. The panel said TRIM notices, realtor listings, and city websites provide tax information; HOAs generally do not provide emergency services; lobbyists help local governments track Tallahassee legislation; reserves vary by city and fund; and utility revenues are generally restricted, though some cities use limited transfers. Members also asked about revenue replacement if ad valorem taxes were reduced or eliminated, and the panel said options would likely include user fees, service cuts, or other local revenue shifts. The chair also asked about public safety consolidation, and the response was that such decisions are local and may shift costs rather than create true savings. The committee then heard from county representatives after an overview by the Florida Association of Counties’ Davin Suggs, who framed counties as shared partners with the state and emphasized the gap between rising market values and the shrinking share of taxable value after exemptions and assessment limits. He said counties face a mismatch between revenue based on taxable value and expenses driven by real-world costs, and noted that most counties either held millage steady or lowered it without reaching rollback rates. He also highlighted that property taxes are only one part of county revenue, with charges for services and intergovernmental revenue often larger in some counties, and that public safety at the county level includes more than law enforcement, such as EMS, emergency management, inspections, and corrections. Deborah Manzo of Okeechobee County described a fiscally constrained rural county with limited staff, a county-supported airport, heavy reliance on property taxes for the general fund, and major cost pressures from inflation, insurance, retirement, and state and federal mandates. She said the county lowered millage slightly over recent years but still depends on multiple revenue sources and special assessments, and she flagged Medicaid, medical examiner costs, and possible firefighter workweek changes as significant concerns. Bay County Administrator Mark McQueen said his county’s budget is shaped by Hurricane Michael recovery, non-discretionary obligations, and rapid growth; he described ongoing FEMA reimbursement delays, substantial borrowing to cover disaster costs, and continuing interest expenses while the county waits for reimbursement. The county panel was still in progress when the transcript ended.

Transcript Highlights:

• the reduction in the um uh security the reduction in the um uh security contract<00:26:10.919>
• We ensure critical state infrastructure is reliable and secure.
• We ensure critical state infrastructure is reliable and secure.
• The primary goal of the ETS cyber security program is to protect the state infrastructure and its data
• to newer infrastructure infrastructure to newer infrastructure for for for sustainability<01:16:02.480

Keywords: 912, senate, all

Summary: The joint Ways and Means and Government Operations committees received a biennium budget preview from Keith Regan, Comptroller and Director of the Department of Accounting and General Services (DAGS), who introduced department leadership and described DAGS’ broad responsibilities across accounting, public works, procurement, elections, archives, risk management, and other attached agencies. He emphasized that DAGS supports nearly every state department and cited ongoing workforce challenges, while noting progress in reducing the department-wide vacancy rate from 21% in 2023 to 17.7% in 2024. He also highlighted recruitment efforts, including new salary schedules for engineers and architects, job fairs, internships, and outreach to retiring federal employees. A major focus was modernization of the state’s aging financial systems, especially the 55-year-old FAMIS platform and the Enterprise Financial System (EFS) project. DAGS said it expects to release the RFP for the FAMIS replacement by the end of January and is seeking a second tranche of CIP funding, including $35 million, plus position augmentation and creation of a Business Transformation Office to manage EFS and future modernization work. The department also described major capital projects such as the Aloha Stadium Entertainment District, Wahiawā Civic Center, Kauaʻi Civic Center, and Ahuimanu Community Correctional Center, and reported that Public Works is managing 455 projects statewide valued at more than $2.5 billion. Other budget requests discussed included funding for cemetery operations, with DAGS asking for two positions and $1 million in operating funds to support maintenance of eight cemeteries; a $200 million ceiling increase tied to anticipated insurance proceeds for West Maui fire-related recovery and rebuilding; and several staffing and operating items for district offices and facilities. These included full-year funding for positions in West Hawaiʻi and East Hawaiʻi, support for a small business coordinator at the State Procurement Office, funding for cloud hosting and PeopleSoft licensing, six positions and staff augmentation for the EFS project, electricity costs, and security-related funding. DAGS also noted that two requested reductions totaled $7.9 million, including transferring the security contract to the Department of Law Enforcement and reducing nonrecurring expenses; members discussed whether some security funding should remain with or be moved to DLE, and DAGS said it would not object to that transfer. No votes were taken in the portion provided.

Bills: HB3419, HB4153, HB3430, HB3791, HB3277, HB4119, HB4408, HB3905, HB3968, HB3835, HB3386, HB2650, HB3742, HB3588, HB3748, HB4303, HB4311, HB3028, HB4428, HB4429, HB4132, HB1889, HB3265, HB1739, HB4434, HB3313, HB3852, HB4263, HB3413, HB3414, HB3415, HB3416, HB3417, HB3418, HB3420, HB2116, HB2206, HB3625, HB2939, HB3721, HB1823, HB2425, HB4440, HJR1087, HB4003, HJR1077, HB1770, HB1675, HB3627, HB3891, HJR1067, HB3462, HJR1053, HJR1054, HJR1044, HB3472, HB1225, HJR1019, HB4145, HJR1081, HB1746, HJR1069, HJR1050, HB1638, HB3327, HJR1055, HB3127, HB4488, HB2955, HB3781, HB3783, HB3802, HB2471, HB2937, SCR16, HB2960, HB3466, HB3262, HB3269, HB3152, HB4140, HB4142, HB3148, HB3378

Keywords: corruption, nonpublic information, government accountability, criminal law, public office, driver license, reading proficiency, minors, education requirements, alternative testing, attendance, remedial reading, public school, oath of enrollment, court financial obligations, cost hearing, payment plan, community service, court compliance program, debt relief

Transcript Highlights:

• So both in terms of providing the infrastructure, the modern infrastructure, to meet modern technology
• So both in terms of providing the infrastructure, the modern infrastructure, to meet modern technology
• Our doors would be upgraded for security purposes.
• Our doors would be upgraded for security purposes.
• Our doors would be upgraded for security purposes.

Bills: SB6, SB62, SB74, SB90, SB104, SB119, SB132, SB133, SB135, SB182, SB185, SB193, SB207, SB217, SB229, SB233, SB260, SB262, SB280, SB281, SB300, SB306, SB378, SB382, SB393, SB403, SB422, SB427, SB431, SB434, SB442, SB452, SB456, SB468, SB472, SB487, SB503, SB6

Keywords: cloud seeding, Nevada, water conservation, agriculture, Desert Research Institute, victim compensation, hate crimes, property remediation, criminal justice, vulnerable persons, elections, voter registration, mail ballots, candidate eligibility, cybersecurity, education funding, teacher grants, classroom supplies, instructional support, specialized personnel

Transcript Highlights:

• Let me just say that infrastructure is key.
• We can't divorce housing from the infrastructure space because we need that infrastructure to plug into
• How do we finance infrastructure? Because that is the public infrastructure.
• How do we finance infrastructure? Because that is the public infrastructure.
• When a construction loan is secured, it sets everything else in motion.

Keywords: 988, house, all

Transcript Highlights:

• On the requirements related to system privacy and security, we evaluated vendor-provided technical security
• And then there were other schools that didn't have security camera systems at all.
• The third function we tested was remote access to schools' live security cameras.
• Okay, my final question is: why aren't you Homeland Security certified?
• Department of Homeland Security as a qualified anti-terrorism technology.

Keywords: 1182, all

Transcript Highlights:

• You'll see item 3 discusses border security appropriations.
• We'll start where we left off on border security.
• And this particular grant program supports physical security enhancements and other security activities
• Border security, thank you for everything y'all do.
• So first is Social Security.

Transcript Highlights:

• have one item on this agenda that is House Bill 344 HD1, relating to electric vehicle charging infrastructure
• That's been our biggest challenge, right, with existing facilities is that the actual infrastructure
• That's been our biggest challenge, right, with existing facilities is that the actual infrastructure
• That's been our biggest challenge, right, with existing facilities is that the actual infrastructure
• to be um have those that infrastructure to be um have those that infrastructure installed.<00:04

Keywords: 912, senate, all

Summary: The joint committees heard House Bill 344 HD1, which would require new buildings to include electric vehicle charger-ready parking stalls. Testimony was overwhelmingly in support from the State Energy Office, Department of Accounting and General Services, the Disabilities and Communication Access Board, and others. Members asked about cost and infrastructure impacts; the State Energy Office said the added cost would likely be modest if planned from the start, but that electrical capacity remains a key challenge for expanding EV charging. The chairs proposed two amendments: extending the bill to cover on-grade parking lots and adding language for Level 1 or Level 3 charging when appropriate. After discussion, both committees voted to pass HB 344 HD1 with amendments. In the Energy and Intergovernmental Affairs committee, the chair voted aye, one member voted with reservation, and excused members were noted; the Government Operations committee also passed the measure, with one aye vote and one vote with reservations. The committees also heard House Bill 10001 HD1 SD1, relating to the Maui wildfire settlement trust fund. The Governor’s Office, Attorney General’s Office, Maui County, and the Tax Foundation testified in support. Members questioned Hawaii Electric Industries’ ability to fund its share of the settlement and whether the state should pay first or in tranches. The chair proposed amendments requiring all defendant parties to submit payment plans and proof of ability to pay, and requiring non-state defendants to fund their shares into escrow before the state releases its share. The committee adopted the amendments and passed the bill unanimously by the members present. Later, the committee deferred action on House Bill 229 HD1 until March 20 for clarification on amendments, then passed House Bill 860 HD1 with amendments addressing liability for limited resurfacing of disputed roads, and passed House Bill 1161 HD2 with amendments concerning highway fund use, formula calculations, and EV-related county fees.

Transcript Highlights:

• In San Francisco's Mission District, 23 families have now secured affordable housing, and in Corning,
• of these programs. and I also just want to To be able to support the ongoing infrastructure of these
• What dollar amount do we, at a minimum, need to be able to keep this infrastructure going and keep it
• The Department of Ed is no longer a secure resource for our state for Promise Neighborhoods work.
• The other is Social Security benefits, often referred to as survivor's benefits or SSDI.

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing on child welfare, foster care, child support, and related prevention efforts. The chair opened by emphasizing mandated reporting reform, foster care system improvements, and community-based prevention, and noted that no votes would be taken. Public testimony focused first on mandated reporting, where a lived-experience advocate and several organizations argued that the current system overreports families, especially Black, Native, and Latino families, causes trauma, and should be reformed through standardized training, clearer thresholds, and stronger community supports rather than more hotline referrals. Casey Family Programs cited data showing nearly 90% of reports are unsubstantiated, while CDSS said it is already forming a Mandated Reporting Advisory Committee, updating training, and exploring community pathways and possible changes to the list of mandated reporters. CWDA and SEIU supported training and alternative response concepts but stressed child safety, county capacity, funding, and the need for careful implementation and accountability. The committee then discussed a proposal to create a foster care multi-agency office within the California Health and Human Services Agency, led by a chief foster youth advocate with authority to coordinate across departments. Advocates said foster youth often need services from education, health, housing, and behavioral health systems that do not coordinate well, and argued that a central office with real authority could improve placement stability and access to services. CDSS responded that existing structures already provide coordination, including AB 2083 interagency teams, the Child Welfare Council, complex care steering committees, and the foster care ombudsperson, but said it was open to technical assistance. Members raised concerns about whether the new office would have enough authority and funding to avoid becoming another layer of bureaucracy, and the chair emphasized the need for real “teeth” and better interagency action. The final major topic was the continuation and expansion of Promise Neighborhoods. A community leader described strong early results from the state-funded neighborhoods, including improved kindergarten readiness, reduced chronic absenteeism, higher graduation rates, food access, housing supports, and mental health services, but warned that current funding sunsets in June 2025 and that a fiscal cliff could jeopardize staff and services. CDSS said the four funded neighborhoods have reported positive outcomes and valuable flexibility, but also noted challenges with one-time funding, student mental health, and long-term planning. Assemblymember Mia Bonta urged continued investment, saying the place-based model is difficult to rebuild once lost, and the chair asked LAO to help identify the minimum funding needed to preserve the existing infrastructure while evaluation results are still pending.

Transcript Highlights:

• The Committee on Military, Veterans Affairs, Space, and Domestic Security will now come to order.
• We've got infrastructure. I might just mute this. That way you guys don't have to.
• And we use infrastructure for a reason, because it's not just about coming... ...of Florida's space infrastructure
• , just like you'd make investments in airport infrastructure, seaport infrastructure, rails, roads, all
• funds looking to invest in space infrastructure.

Summary: The committee met to hear presentations on Florida’s space economy and related infrastructure. SpaceX Vice President Kiko Donchev described the company’s Florida operations, launch cadence, reusable rocket program, Starlink service, and plans for future Starship activity at the Cape. Senators asked about Florida employment, expansion plans, satellite lifetimes, disaster-relief uses of Starlink, and recreational connectivity; members also praised SpaceX’s hurricane response and broader public benefits. Donchev said SpaceX’s Florida workforce has grown to about 1,600 and that the company hopes to add Starship pads and continue expanding in the state. The committee then recognized Commander Dennis Baker for his military service and veteran advocacy, including his leadership of the Florida Veterans Foundation, grant work, the Walk of Honor, and the Gadsden Flag license plate program. Members highlighted that revenue from the plate helps fund veterans’ dental care and noted upcoming dental services for veterans in Volusia County. Baker received a flag flown over the Capitol and a framed gubernatorial proclamation. Newview CEO Clint Grumman presented the company’s commercial satellite LiDAR mapping system, describing its Lake Nona headquarters, Florida ownership, planned jobs, and applications for infrastructure planning, environmental monitoring, and disaster response. He said the company’s satellite data could improve accuracy and lower costs, and noted partnerships including a Department of Defense contract and a European Space Agency moon-mapping effort. Space Florida then outlined its role as the state’s aerospace finance and business development authority, emphasizing its pipeline of projects, spaceport improvement program, workforce academy, and efforts to address infrastructure constraints and seek tax-exempt bond authority for spaceports. NASA’s Kelvin Manning closed with an update on Kennedy Space Center, highlighting Artemis progress, rising launch demand, commercial partnerships, economic impact, and the Florida University Space Research Consortium. No bills were voted on, and the meeting adjourned after comments from members.

Bills: HR39, HR40, HR41, HCR19, HCR20, HCR21, HB2, HB3, HB15, HB441, HB976, HB977, HB978, HB979, HB980, HB981, HB982, HR19, HR20, HR21, HR22, HR23, HR24, HR25, HR26, HR27, HR28, HR29, HR30, HR31, HR32, HR33, HR34, HR35, HR36, HR37, HR38, HCR15, HCR16, HCR17, HCR18, SCR10, HB115, HB208, HB465, HB964, HB965, HB966, HB967, HB968, HB969, HB970, HB971, HB972, HB973, HB974, HB975, HB474, HB487, HB503, HB606, HB633, HB707, HB720, HB728, HB733, HB846, HB852, HB856, HB868, HB875, HB78, HB112, HB148, HB149, HB190, HB221, HB346, HB354, HB355, HB356, HB358, HB384, HB427, HB657, HB675, HB716, HB207, HB300, HB331, HB428, HB464, HB587, HB618, HB629, HB801, HB853, HB891, HB901

Keywords: St. Joseph's Day, Saint Joseph's Day, St. Joseph's Altar, Italian American, Italian heritage, Italian immigrants, Louisiana culture, New Orleans, Sicilian heritage, Catholic, Feast of Saint Joseph, cultural resolution, heritage caucus, legislative caucus, ethnic heritage, jazz history, Italian Louisiana, immigrant contributions, cultural recognition, House Resolution 40

Transcript Highlights:

• you know, safe and secure. you know, safe and secure.
• <00:30:54.880> security?
• issue a secure security? issue a secure security?
• So, um, we issue uh a security. Um the security itself um is um uh a share of a treasury fund.
• <01:40:32.840> And security checks. So, it's software. And security checks.

Keywords: 1189, house, all

Summary: The meeting opened with roll call, confirmation of a quorum, and approval of the April 6 and May 4 minutes, with minor corrections noted to the May minutes. The main presentation came from JD of Link Network, introduced by Dan Cohen, who described Link’s work with crypto.com and other market participants on tokenized money market funds and real-time settlement for institutional clients. JD gave a detailed history of his earlier work developing the Arca U.S. Treasury Fund and ArCoin, emphasizing that the project was built within existing SEC and 1940 Act frameworks and was intended to use blockchain technology for a traditional asset rather than create a crypto product. He said the effort involved years of discussions with the SEC, multiple custodians, and partners such as U.S. Bank, T-Zero Securities, and Tassat, and that the model eventually led to Link’s settlement system. He highlighted concerns that shaped the design, including regulatory compliance, privacy for institutional users, and the need to bridge traditional banking hours with 24/7 digital asset markets. The presentation also described Link’s features, including segregated and bankruptcy-remote fund structures, tokenized deposit and treasury fund settlement, and “yield in transit,” which allows interest to accrue and be distributed daily down to a two-second block. JD said the platform is being expanded for use cases such as exchange liquidity, cross-border capital movement, off-exchange collateral, stablecoin bridging, treasury management, and peer-to-peer settlement. He closed by posing policy questions for the commission about the use cases for stablecoins versus tokenized money market funds in New Hampshire and whether the state could issue or administer a security-based program with appropriate compliance controls.

Transcript Highlights:

• I felt like I was entering a jail because of the very wonderful security system.
• This 4.25 million allows us to start to build that infrastructure.
• Healthcare professionals have to have infrastructure to work in.
• Building infrastructure allows us to take care of patients.
• Institutional safety and security enhancement in the amount of $1,318,900.

Keywords: 996, all

Transcript Highlights:

• However, we found that both the system and the infrastructure that it sits on were outdated, unstable
• Our audit found the entire suite of applications relies on an infrastructure foundation, including its
• and causing a couple of systems to halt. ...consuming all the storage available on the infrastructure
• That's complete, accurate, secure, and reliable.
• We expect the agency to have strong controls to ensure data is complete, accurate, secure, and reliable

Summary: The Joint Legislative Audit and Review Committee subcommittee heard a State Auditor’s Office performance audit on the accuracy and reliability of OSPI’s school apportionment system. Auditors said the system, which calculates and distributes K-12 funding using multiple feeder systems and a core apportionment engine, is outdated, unstable, inefficient, and at high risk of failure. They reported weak controls over data input, documentation, oversight, and staffing, and said OSPI relies heavily on manual workarounds, a few knowledgeable staff, and vendor support. In limited testing of three districts, the auditors found the system calculated funding correctly for the 2023-24 school year, but they identified nine small input discrepancies tied to differences between budget materials and state law, which they said could compound into larger dollar amounts. The auditors recommended replacing or modernizing the system and noted that delays in doing so prolong risk. OSPI largely agreed that the current platform needs replacement and said it has been working toward a new system for years. Agency officials clarified that the Legislature requested a feasibility study in 2022, that the study found the system at risk of catastrophic failure, and that funding for a replacement is now in the state IT pool subject to OCIO/OFM gate reviews. OSPI disputed the audit’s characterization of the rounding and budget-law discrepancies, saying the issue was an agency rule and implementation choice, not an error that caused under- or over-allocation. Officials also said the current system is too old to easily absorb future formula changes, but that the planned replacement should be flexible enough to handle a new funding model if the Legislature adopts one. Committee members asked about the amount and timing of the $16 million project funding, whether smaller districts face greater risk, how many times data is entered, and whether the funding formula should be simplified. Auditors and OSPI both emphasized that formula simplification is a policy question for the Legislature, not the audit. Public testimony came from one online witness, who urged full implementation of the audit recommendations and modernization of the system. The subcommittee took no formal vote and adjourned after the presentations and testimony.

Transcript Highlights:

• And then when you run that gauntlet, hopefully you'll have all your funding secured.
• , but also the resources to make the infrastructure successful?
• HCD secures home ownership and monitors manufactured housing sales.
• Our Social Security benefits don't get rounded up like this.
• The fair housing infrastructure across the state and the country is crumbling.

Keywords: 987, senate, all