Transcript Highlights:

• This is the bill that requires L&I to publish the actuarially indicated rates for each workers' compensation

Bills: SB6197 , SB6158 , SB6302 , SB5437 , SB6117 , SB5852 , SB5847 , SB6067 , SB6152 , SB6136

Committee: Senate Labor & Commerce

Keywords: SB 6197, plumbing contractor, plumber, contractor licensing, licensing enforcement, infractions, administrative penalties, license suspension, certificate suspension, endorsement suspension, registration suspension, Department of Labor and Industries, advisory board of plumbers, penalty schedule, repeat violations, workplace standards, construction trades, professional licensing, Washington state, factory built housing

Bills: HB245 , HB245 , HB700 , HB2783 , HB3526 , HB3900 , HB4061 , HB4124 , HB4166 , HB4395 , HB4534 , HB4609 , HB4641 , HB4736 , HB4738 , HB4739 , HB4945 , HB5015 , HJR175

Committee: House Pensions, Investments & Financial Services

Keywords: property tax, delinquent taxes, ad valorem, penalties, interest cap, military service, retirement, law enforcement, custodial officer, Employees Retirement System, commercial financing, brokers, registration, disclosures, finance, consumer protection, fees, deferred compensation, automatic participation, county employees

Transcript Highlights:

• So, there will be no negative actuarial impact.
• So this is a cleanup to the JRS2 bill that we passed last session to make that pension actuarially sound
• The bill also requires. to provide the LBB with the amount necessary to make the actuarially determined
• The bill also requires the unfunded actuarially accrued liability to be determined. using an expected
• So I started working with our actuary and with our legal counsel, asking, "What can we afford to do?

Bills: HB245 , HB700 , HB2783 , HB3526 , HB3900 , HB4061 , HB4124 , HB4166 , HB4395 , HB4534 , HB4609 , HB4641 , HB4736 , HB4738 , HB4739 , HB4945 , HB5015 , HJR175 , HB245

Committee: House Pensions, Investments & Financial Services

Keywords: military service, retirement, law enforcement, custodial officer, Employees Retirement System, commercial financing, brokers, registration, disclosures, finance, consumer protection, fees, deferred compensation, automatic participation, county employees, payroll deductions, retirement plans, fiscal transparency, local government, bond issuance

Transcript Highlights:

• But I've already made my expectations clear to staff, including our new P&C chief actuary.
• And so... ...the trick is to get it right, what the actuarial discount should be.
• And we think part of that is you have actuaries that are conservative.
• You have actuaries that are aggressive.
• In the day-to-day market valuation of the reserve, we enter at a 25% discount.

Committee: Senate Business & Commerce

Transcript Highlights:

• Every two years, we commission an actuarial study.
• Every two years, we commission an actuarial study.
• We have a contracted actuary that goes out, looks at all of our an actuarial study.
• And that's as of the last valuation.
• Aaron Gutierrez with the Office of the State Actuary. Thank you.

Committee: Senate Ways & Means

Summary: The Ways and Means Committee met for a work session and first heard an economic and revenue forecast update from the Economic and Revenue Forecast Council. The forecast described moderate U.S. growth, elevated near-term inflation, weak Washington employment growth in 2026, continued personal income growth, and slower housing permit activity. Revenues were revised up about $105 million for the current biennium and down about $185 million for the next biennium, with uncertainty tied largely to tariffs, federal policy, and the recent federal shutdown. Members asked about the outlook for February, income inequality, and housing affordability; the presenter said the forecast does not measure income distribution and that housing permit data does not directly address affordability. The committee then received a caseload forecast update. Most forecasts were unchanged or nearly unchanged, but several programs moved: Washington College Grant caseloads rose, TANF and Working Connections changed due to immigration-related assumptions and updated policy timing, and long-term care caseloads increased. The largest change was in Medicaid low-income adults, where federal H.R. 1 was projected to reduce caseloads significantly through narrower non-citizen eligibility, community engagement requirements, and shorter eligibility periods. Members raised concerns about downstream effects such as uncompensated care and higher premiums, and the presenter noted some effects could be delayed depending on federal implementation guidance. A wildfire funding and 2025 fire season update followed. Staff explained the state’s base wildfire suppression funding and estimated a supplemental need of about $139 million in state funds. DNR reported a busy fire year with lower snowpack, drought, more than 1,100 DNR jurisdictional fires, about 76,000 acres burned, 31 aircraft used, 690 DNR firefighters, and 350 out-of-state resources brought in; the agency said its suppression effectiveness improved to 94.1% of fires kept under 10 acres. Questions focused on National Guard use, aircraft counts, and the higher number of residences lost in complex fires. The committee then heard a budget preview showing the near general fund outlook worsening to about a $4.3 billion ending balance by fiscal year 2029 after maintenance-level costs, while noting that policy items such as wildfire costs and liability account decisions were not yet built in. The final major topic was the state’s tort liability and self-insurance account, where the Risk Manager reported a sharp rise in indemnity costs, from $223 million in fiscal year 2023 to nearly $500 million in fiscal year 2025, driven largely by DCYF claims, especially sex abuse cases. Defense costs also rose as the Attorney General’s Office relied more on special assistant attorneys general to handle volume. Members asked about older claims, comparisons with other states, insurance coverage, and whether costs might decline if the AG’s office hires more attorneys. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust about statewide water shortages, declining snowpack, drought, overappropriated basins, and the need for more storage, recharge, conservation, and enforcement. Tribal witnesses emphasized water sovereignty, salmon habitat, and the need for tribes to be involved early in legislation, while Ecology described major projects in the Odessa and Yakima basins and the challenges of climate change and legal constraints. No votes were taken during the work session.

Transcript Highlights:

• Every two years, we commission an actuarial study.
• So of the DCYF cases, how many of them are... an actuarial study.
• And that's as of the last valuation.
• Aaron Gutierrez with the Office of the State Actuary. Thank you.
• It wouldn't be an actuarial slide if I didn't have a disclaimer.

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• So, it's the actuarial numbers that.
• They use it's an actuarial calculation, not just a market calculation.
• And do we have an actuarial analysis for this bill. Yes, we do.
• I appreciate that the actuarial analysis. Who provides that?
• Is there an An actuarial on this and if so, what does it say?

Bills: HB4030 , HB4031 , HB4032 , HB4033 , HB4034 , HB4035 , HB4036 , HB4037 , HB4038 , HB4039 , HB4040 , HB4041 , HB4042 , HB4043 , HB4044 , HB4045 , HB4046 , HB4047 , HB4048 , HB4049 , HB4050 , HB4051 , HB4052 , HB4053 , HB4054 , HB4056 , HB4057 , HB4065 , HB4067 , HB4071 , HB4072 , SB1144 , SB1145 , SB1146 , SB1147 , SB1148 , SB1149 , SB1156 , SB1157 , SB1158 , SB1159 , SB1161 , SB1162 , SB1163 , SB1164 , SB1165 , SB1166 , SB1167 , SB1174 , SB1175 , SB1176

Committee: Senate Joint Committee on Appropriations and Budget

Keywords: education funding, budget appropriations, public schools, teachers' retirement, early childhood education, aeronautics, infrastructure, funding, sustainability, Oklahoma, mining, operator fees, coal production, noncoal mining, department of mines, revenue, state budget, budgetary reform, financial legislation, fiscal accountability

Transcript Highlights:

• The net pension liability changes each year due to investment performance, actuarial assumptions, and
• An example would be: when a plan is projected to be fully funded, the valuation uses a 6.5% expected
• These amounts are actuarially determined each year by the actuaries that are commissioned.
• These amounts are actuarially determined each year by the actuaries that are commissioned.
• They are large enough to have actuaries and these individuals on staff. We are not.

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Transcript Highlights:

• <00:25:16.159><c> determined</c><00:25:16.720><c> contributions</c><00:25:17.360><c> to</c> actuarial
• determined contributions to actuarial determined contributions to the<00:25:17.760><c> teachers</c><
• Salary increment language is updated to ensure property valuation administrators are properly aligned
• <00:35:12.800><c> administers</c><00:35:13.920><c> administers</c><00:35:14.960><c> are</c> valuation
• administers administers are valuation administers administers are properly<00:35:15.680><c> aligned<

Summary: The House convened with 97 members present, declared a quorum, approved excusing absent members, and suspended the rules to allow co-sponsorships and vote modifications. The journal for February 25, 2026 was approved. The clerk also reported that the Senate had passed Senate Bills 98 and 122 and requested concurrence. The House then received second-reading reports on a range of bills, including measures on prison educational programs, respiratory care, dietitians, wildlife depredation, temporary structures, military families, civil rights, local boards of education, light pollution, controlled-substance prescribing licenses, youth health services, class sizes for exceptional children, the athletic trainer compact, limited commercial driver’s licenses, and Senate Bill 145 relating to the Department of Agriculture and Alcohol Beverage Control. Committee reports moved several bills forward, including the main budget bills House Bill 500 and House Bill 504, along with measures on workforce investment, data centers, domestic violence, guardians ad litem, domestic relations, health delivery and “food is medicine” initiatives, state personnel, open records, and fish and wildlife resources. House Bill 500 and House Bill 504 were taken from the Rules Committee and placed on the orders of the day. House Bill 500, the executive branch budget bill, was then taken up for third reading and explanation. Members presented extensive floor explanations of House Bill 500 and House Committee Substitute 1, describing it as a “good first draft” of the executive budget. Supporters said the proposal emphasizes restrained spending growth, base reductions with exemptions for key areas, employee salary increments, and deposits to the Budget Reserve Trust Fund for future one-time investments. They highlighted funding for K-12 education, postsecondary aid and workforce training, Medicaid and behavioral health, public health infrastructure, pensions, veterans, public safety, economic development, tourism, and state technology and facility maintenance. The budget substitute was adopted by voice vote, and the discussion continued with detailed descriptions of the bill’s provisions; no final passage vote was shown in the excerpt.

Bills: S0014 , S0016 , S0024 , S0052 , S0308 , S0504 , S0506 , S0564 , S0572 , S0590 , S0594 , S0806 , S1396 , S7020 , S7024 , S7026

Committee: Senate Rules

Keywords: negligence, settlement, police conduct, municipal liability, personal injury, compensation, injuries, Miami-Dade County, places of worship, house of worship, church, mosque, synagogue, religious security, armed security, volunteer security, private security, security guard licensing, licensure exemption, Florida Statutes chapter 493

Bills: SB683 , SB1579 , SB1389 , SB1387 , SB1390 , SB1391 , SB2063 , SB1829 , SB2060 , SB1842 , SB1398 , SB1212 , SB2158 , SB102 , SB1772 , SB1958 , SB2010 , SB1595 , SB1687 , SB1684 , SB2049 , SB1966 , SB1989 , SB1191 , SB1258 , SB1920 , SB1936 , SB2143 , SB2122 , SB330 , SB2071 , SB2169 , SB2069 , SB2095 , SB2157 , SB1806 , SB1430 , SB206 , SB1547 , SB1849 , SB1428 , SB1653 , SB1984 , SB1644 , SB1561 , SB1813 , SB1570 , SB1796

Keywords: education, tax credit, student support, private school, Oklahoma Parental Choice Tax Credit, financial assistance, homeschooling, qualified expenses, property tax, valuation increase, taxpayer rights, homestead, protest process, school choice, tuition assistance, income limits, parental choice, accreditation, sales tax, motor vehicles

Transcript Highlights:

• Stephanie Libby: ...The PRB also provides actuarial impact statements during legislative sessions to
• Stephanie Libby: ...improving the actuarial soundness of the public pension plans.
• Their new actuarial evaluation recommends them dropping that to 7.25%.
• Speaker: The bullet there in the middle of the page says the actuarially accrued liability is $189.8
• Really, what I should have put there is the unfunded actuarially accrued liability.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• The net pension liability changes each year due to investment performance, actuarial assumptions, and
• An example would be: when a plan is projected to be fully funded, the valuation uses a 6.5% expected
• These amounts are actuarially determined each year by the actuaries that are commissioned by PERS, and
• And this section contains actuarial information that we're required to report for pension and OPEB.
• They are large enough to have actuaries and these individuals on staff. We are not.

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• By the plan's own testimony, they need an 80% rate increase to have actuarially sound rates.
• First, rate adequacy: when Fair Plan premiums are materially lower than actuarially sound admitted market
• just looked at the survey that our association took, and some insurance companies do limit insured valuation
• I think the first three, I think all of the witnesses talked about actuarial sound market conditions.
• The witnesses talked about actuarial sound market conditions, which this hearing really isn't about.

Summary: The Assembly Insurance Committee held its first outcomes review oversight hearing on the residential fair plan clearinghouse program created by AB 3012. Chair and members focused on whether the program is actually helping depopulate the California Fair Plan and move policyholders back to the voluntary market. The Fair Plan and Department of Insurance testified that the program exists as a platform for admitted and, in some cases, non-admitted insurers to review Fair Plan policies and make offers through the broker of record, but they acknowledged limited participation and limited results. CDI said it has received no formal complaints specific to the clearinghouse, but identified obstacles including only 11 participating residential insurers, the broker-of-record requirement, compensation and appointment issues, and the lack of direct consumer contact. CDI said about 730 residential risks have moved to voluntary market coverage through the program from June 2021 through April 30, 2025, and opt-outs are under 1%. Committee members pressed witnesses on the program’s opacity, the lack of data on offers made versus policies actually moved, and whether the clearinghouse is functioning as intended. CDI and the Fair Plan said they do not have data on how many offers have been made, only on cancellations that are self-reported and marked as clearinghouse-related. Members also raised regional growth in Fair Plan enrollment, especially on the Central Coast, and concerns about underinsurance when policyholders move back to the regular market. CDI recommended more mandatory reporting, broader broker education, possible direct offers to policyholders after a period of time, and changes to commission and appointment rules to reduce barriers to insurer participation. The second panel of industry witnesses generally agreed the clearinghouse is not a stand-alone solution and said its effectiveness depends on a healthier admitted market and actuarially sound Fair Plan rates. Independent agents and brokers, admitted-market insurers, and surplus lines representatives said the current system is constrained by low rate adequacy, limited insurer appetite for high-risk properties, operational friction, and misaligned incentives. Several witnesses suggested improvements such as better data sharing, clearer depopulation procedures, stronger broker education, and more flexible appointment or compensation rules. Some supported giving the program more time under the Sustainable Insurance Strategy, while others said the Legislature should consider whether to strengthen, modify, or potentially sunset the program if it continues to produce limited results. A public witness later reported that a new carrier had recently joined the clearinghouse and was working with brokers to bring in additional capacity.

Transcript Highlights:

• By the plan's own testimony, they need an 80% rate increase to have actuarially sound rates.
• When FAIR Plan premiums are materially lower than actuarially sound admitted market rates, policyholders
• just looked at the survey that our association took, and some insurance companies do limit insured valuation
• I think the first three—I think all of the witnesses talked about actuarial sound market conditions..
• I think the first three—I think all of the witnesses talked about actuarial sound market conditions,

Committee: House Insurance

Transcript Highlights:

• As of the 2024 actuarial valuation, LEOFF Plan 1 is 160% funded with surplus assets of nearly $2.5 billion
• LEOFF Plan 1 benefits, as determined by the Office of the State Actuary.
• Even if actuarially projected as overfunded, that surplus is built on long-term receipts.
• Even if actuarially projected as overfunded, that surplus is built on long-term receipts.
• The state treasurer and the state actuary have issued warnings regarding pension investments.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• So it's the actuarial numbers that they use.
• Do we have an actuarial analysis for this bill? Yes, we do.
• The actuarial analysis, who provides that?
• Legislature in terms of the actuarial analysis?
• And so is there an actuarial analysis on this?

Summary: The committee took up a long agenda of appropriations and budget bills, with most of the early action focused on retirement cost-of-living adjustments. Senate Bills 1144, 1145, 1146, 1148, and 1149 all advanced, covering COLAs for retired teachers, public employees, police, judges, and a special “tweener” group of police and fire retirees. Members questioned the actuarial impacts, funded ratios, and timing of the apportionment changes, and the author explained that the retirement bills were based on TRS or system actuarial estimates and that the 2036 apportionment cutoff could be revisited by future legislatures. SB 1149 was described as a one-time $25,000 payment for a limited group of older retirees, with estimated costs of $3.5 million for police and $5.8 million for fire. Most of these retirement measures passed on votes of 23-24 ayes with one nay. The committee also considered House Bill 4071, creating the Oklahoma Dream Accounts Investment Program to match the federal “Trump accounts” with up to $250 per eligible child, capped at $12.5 million. Democrats criticized it as a poor use of funds and objected to the federal program’s uncertainty and the emergency clause; the bill passed 17-8. House Bill 4072 created a taxpayer endowment trust fund by moving $200 million from the Revenue Stabilization Fund and redirecting a portion of future gross production tax overages into the new fund until it reaches $1 billion, after which it would generate future revenue streams. Members raised concerns about investment risk, oversight, and whether the fund was a “shell game,” but it passed 18-6. Several agency budget and limit bills were also approved, including HB 4057 for $25 million to expand the Bureau of Narcotics headquarters, SB 1158 for $252,000 to fund medication for minors in custody, SB 1164 for the Department of Mental Health and Substance Abuse with $1.2 million in new appropriations plus $5.97 million for the 988 revolving fund, and HB 4040 for the Department of Health rural health transformation cash-flow needs tied to federal reimbursement. The committee also passed HB 4051 on FMAP preservation, SB 1161 for the Oklahoma Health Care Authority, SB 1162 for the State Department of Health, and SB 1163 for DHS, where the largest discussion centered on avoiding an Advantage waiver waitlist, SNAP administrative costs, and child abuse multidisciplinary care centers. Most of these bills passed with little or no debate, though some drew questions about federal matching dollars and reporting requirements. Education-related items were also approved, including HB 4030, the State Department of Education budget limits bill, which maintained prior-year funding for textbooks, early intervention, literacy coaching, school security, and other line items; HB 4044 for OEQA’s growth-based teacher compensation and NBCT stipends; HB 4065 for school security funding at the School of Science and Math; HB 4067 for the School for the Blind and School for the Deaf; and HB 4038 directing $5 million of ODOT FY27 appropriations to the eight-year work plan. The committee also advanced HB 4046, which directs funding to the Military Readiness, Innovation, Education, Aviation Revolving Fund for projects including McAlester, Fort Sill, Altus, and Enid, with members questioning why additional money was needed so soon after prior appropriations. Throughout the meeting, most measures were reported as passed by wide margins, with a few dissenting votes on bills viewed as controversial or as reallocating funds away from other priorities.

Transcript Highlights:

• Number two, actuarial assessment is forthcoming.
• I'm waiting on an actuarial analysis. I see Mr.
• </c><00:26:38.480><c> analysis</c> I'm um waiting on an Actuarial analysis I'm um waiting on an Actuarial
• So, do we have an actuarial analysis on this? We're waiting for that analysis.
• </c> you so C we you have an Actuarial you so C we you have an Actuarial analysis<00:31:30.120><c> on

Summary: The committee first approved the prior month’s minutes after a roll call established a quorum. It then heard testimony on a draft proposal from Senator Robbie Mills to increase CERS retiree health subsidies for members retiring on or after July 1, 2003. The bill would raise the non-hazardous subsidy from $14.63 to $40 per month per year of service and the hazardous-duty subsidy from $21.94 to $50, with employee contribution rates adjusted based on the health trust’s funded status. Supporters from sheriffs, firefighters, police chiefs, and the Kentucky League of Cities said the change would improve recruitment and retention, better align the subsidy with the cost of a single health plan, and preserve the system’s financial footing through shared employer-employee costs and funding triggers. Committee members asked about the fiscal impact, the effect of funding levels above 150%, and how the subsidy would work for rehired retirees or employees who later take private-sector jobs. Mills and other witnesses said preliminary actuarial work was still forthcoming, that the bill was intended to be revenue-neutral or close to it, and that the subsidy would continue to be paid monthly; they also noted existing 2008 rules for rehired retirees and said the benefit would still be available even if a retiree later had other insurance. One member suggested looking at stable accounts as an additional option for special-needs planning in a later bill. The committee then heard Senate Bill 58 from Senator Robin Webb, which would allow state employees to designate a Special Needs Trust as a beneficiary for retirement benefits. Webb said the measure would help employees provide for disabled dependents without jeopardizing SSI or Medicaid eligibility, and that the bill follows federal special-needs trust rules. He said the proposal could be revenue neutral, but actuarial analysis was still pending and KPPA had asked for electronic rather than paper transfer provisions. Members questioned whether the authority already exists, how the trust would work, and whether stable accounts should also be considered; Webb said he would follow up with additional information.

Transcript Highlights:

• As of the 2024 actuarial valuation, LEOFF Plan 1 is 160% funded, with surplus assets of nearly $2.5 billion
• The newly created restated LEOFF system is funded on June 30, 2029, with 110% of the actuarial value
• of the LEOFF Plan 1 benefits, as determined by the Office of the State Actuary.
• Even if actuarially projected as overfunded, that surplus is built on long-term assumptions.
• The state treasurer and the state actuary have issued warnings regarding pension investments.

Bills: HB1069 , HB2091 , SB6355 , HB2104 , SB6003 , HB2441 , HB2124 , HB2610 , HB2338

Committee: Senate Ways & Means

Keywords: collective bargaining, retirement benefits, employee rights, public sector, supplemental benefits, public employers, employee information, bargaining representatives, labor relations, union representation, electric transmission, energy policies, infrastructure, regulatory framework, transmission systems, aviation, wildland fires, funding, disaster relief, emergency response

Transcript Highlights:

• Well, we asked the actuary I'm sorry.
• ><c> that</c><00:14:01.600><c> the</c><00:14:01.839><c> actuary</c> report yesterday that the actuary
• actuarial evaluation.
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Summary: The committee reviewed a handout comparing House Bill 2 to current retirement law and walked through the bill section by section with staff from the retirement system. The discussion focused on vesting, earnable compensation, average final compensation, compensation-over-base limits, special duty pay, normal retirement age, re-retirement, and maximum benefit rules for Group 2/Tier B members. Staff explained that some provisions would restore pre-2011 rules, including counting certain end-of-career payments such as unused sick and vacation time in earnable compensation and reducing the AFC averaging period from five years back to three. They also described how the bill would eliminate the current cap on compensation over base, which mainly affects overtime, and noted that the actuarial cost of the AFC-related changes is interrelated rather than easily broken out by feature. A separate discussion covered the special duty pay limitation, which currently applies to Tier A and would be removed under the governor’s bill for both Tier A and Tier B members after their vested buy date. Staff said the actuary estimated that removing the special duty limitation would increase costs by about $13.9 million. Members also asked about the practical difference between overtime and special duty, with staff explaining that special duty generally involves work for a private third party, often police detail work, while overtime depends more on staffing and scheduling. The committee also reviewed the normal retirement age changes for Tier B and the possibility that some members would need to work longer to reach the new vested buy date. Members raised concerns about an ambiguity in the bill that could allow already-retired Tier B members to return to work, then re-retire and claim the higher benefits, or allow vested deferred members to stop working and wait for the new vested buy date. Staff said the governor’s office did not intend to allow that result and requested clarifying language, noting that the bill as drafted does not expressly prohibit it. The committee also discussed part-time and seasonal work after retirement, with staff explaining that such work generally does not restore membership unless the person takes a full-time position requiring enrollment. Finally, the committee reviewed the maximum benefit provisions and noted that HB 2 in the current year does not change the maximum benefit date or include the 1.5% annual escalator that had been part of the 2023 proposal, making the current bill more costly than the earlier version.