Transcript Highlights:

• I'm assuming you're talking more about budgetary items that may be related to that.
• Some of it's budgetary, but some of it may be things that happen in agencies that we as a legislature
• this committee in an alert position to be responsive to any changes that might happen at the federal level
• At every level of this agency, there are individuals who are devoting their time and expertise and compassion

Committee: Senate Health and Human Services

Summary: The Senate Health and Human Services Committee met to consider a series of gubernatorial nominations, first for several boards and commissions and then for key health-related executive positions. Early confirmations included Michael Vaughn to the Board of Licensed Alcohol and Drug Counselors, Tina Frazier to the State Board of Licensed Social Workers, Dr. Kanya Martin and Dr. Edgar Boyd to the Board of Examiners for Speech-Language Pathology and Audiology, Dr. Christopher Thurman to the Health Care Workforce Training Commission, Samuel Haubrick and Robert Wipp Jr. to the Committee of Home Inspector Examiners, and Dr. Gabriel Pittman to the State Board of Health. Each nominee briefly described their background and qualifications, and committee members generally emphasized professional experience, public service, and rural health needs. All of these nominations advanced on unanimous or near-unanimous votes. The committee then considered Clayton Bullard for two roles: Cabinet Secretary of Health and Mental Health and Administrator of the Oklahoma Health Care Authority. Senators focused heavily on Medicaid managed care, provider payment delays, MCO oversight, and the short timeline before a new administration. Bullard said his priority would be stabilizing the agency, building a balanced budget, monitoring contractors and managed care organizations, and ensuring claims are paid promptly; he reported high rates of clean-claim payment within 14 days and said the agency would continue fining MCOs for noncompliance. Members also pressed him on legislative oversight and the need to keep lawmakers informed about policy changes. Both nominations were approved and sent to the full Senate. Sharon Schell Millington was then nominated to lead the Office of Juvenile Affairs. Senators asked about security concerns, staff safety, de-escalation training, pay for direct care staff, and coordination with local law enforcement. Millington said the agency had increased staff pay, adopted nationally recognized restraint/de-escalation training, and was working to improve communication with law enforcement. Her nomination also passed and moved to the Senate floor. At the end of the meeting, the chair answered a question about board membership requirements, clarified that the statute limits how many members may reside in one congressional district but does not require every district to be represented, and thanked committee staff for their work as the committee’s final HHS meeting of the session.

Transcript Highlights:

• been a vice years uh at the local level been a vice president<00:04:20.160><c> and</c><00:04:20.280>
• I think I’m on my 19th year as some level of an administrator, so I bring that perspective and really
• I think I’m on my 19th year as some level of an administrator, so I bring that perspective and really
• I think I’m on my 19th year as some level of an administrator, so I bring that perspective and really
• </c> committee is to track the budgetary committee is to track the budgetary decisions<00:21:19.240><

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• Thank you, but isn't it true that it would go through the budgetary process that we have here at the
• Thank you, but isn't it true that it would go through the budgetary process that we have here at the
• unlike the last two years, the subcommittees, Unlike the last two years, the subcommittees of our budgetary
• process never met and took a vote on any of the budgetary items.

Bills: HB3327 , HB3711 , HB4104 , HJR1077 , HB3329

Committee: Senate Rules

Summary: The committee first considered House Bill 3711, which was described as a work in progress aimed at increasing transparency for taxpayers about instructional expenditures in school bond communications. Members questioned whether the bill changed what districts may bond for, and the author said it did not alter the bond process, only added communications. After title was struck, the bill passed committee 13-5. House Bill 4104, dealing with repeat peeping Tom and clandestine recording offenses, was presented with an amendment adding conduct involving three or more separate victims as a basis for felony treatment. The amendment was adopted after questions about its legal basis and a recent court decision. The bill as amended then passed committee unanimously, 18-0. The committee also took up House Joint Resolution 1077, which would send to voters a proposal to move $1 billion from the Tobacco Settlement Endowment Trust corpus into a new Oklahoma’s Futures Trust Fund. The proponent said the T-SET board would remain in place, the corpus would stay protected, and annual earnings from the new fund would be split between reinvestment and legislative appropriations for health and education. Opponents argued the measure would shift money from an independent endowment to a politically controlled process and could weaken existing T-SET programs. After debate, the resolution passed committee 14-4. Finally, House Bill 3327 proposed expanding the State Board of Education from seven to nine members, with appointments divided among the governor, speaker, and president pro tem, and allowing removal only for cause. Members raised questions about geographic representation and vacancy appointments, but the bill passed as amended 15-2. House Bill 3329, a trailer bill related to sunset legislation, added a July 1, 2027 sunset for the Board of Psychological Examiners after concerns about its handling of a complaint and a recent court ruling; it passed as amended 14-2, and the committee then adjourned.

Transcript Highlights:

• </c><00:33:09.279><c> of</c> allocation will reflect the level of allocation will reflect the level of
• </c> let alone reach our recommended levels. let alone reach our recommended levels.
• </c> time two years ago, um staffing levels time two years ago, um staffing levels at<00:48:35.680><c
• I've had a lot of direct experience with STS at the county level and at the local level, and I believe
• </c> the budgetary source is for that agency. the budgetary source is for that agency. um<01:50:27.119

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• It's a DOJ ask because you guys can do a lot of processing at that level, at the DOJ level, but if there's
• However, for next year, I anticipate if we do receive a similar level at the federal level, we're not
• And if we can see those reduced stress levels, that is huge.
• And if we can see those reduced stress levels, that is huge.
• And if we can see those reduced stress levels, that is huge.

Summary: The Senate Budget Subcommittee No. 5 held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department described funding for EDD Next document management work, updated UI loan interest costs, disability insurance and paid family leave benefit increases, WIOA adjustments, UI and school employee benefit changes, an EMT training reappropriation, and a technical correction tied to an EDD Next reversion. PERB discussed reduced funding requests for AB 288 due to litigation and a proposal to implement AB 1 covering legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language requiring electronic payment of employer assessments and removing a salary cap for the DWC administrative director. CalHR proposed consolidating employee assistance services into a statewide contract with enhanced support for first responders, and CalPERS and CalSTRS presented budget adjustments tied to investment costs, state contributions, and benefit overpayments. Members focused heavily on the unemployment insurance debt and interest payments, asking why the administration had no concrete plan to pay down principal. Finance and LAO explained that the state’s UI tax structure has long been insufficient and that any long-term solution would need to address both the outstanding federal loan and the structural imbalance in employer taxes. Questions also centered on EDD Next costs and timelines, with the chair asking for clearer long-term project cost estimates and Finance noting that future maintenance and operations costs will continue after implementation. On DIR’s emerging technologies unit, members asked whether it would address AI-driven workplace harms; DIR said the unit would focus on physical workplace safety issues involving AI, robotics, autonomous equipment, and related guardrails, while LAO noted broader labor-practice questions would likely fall outside Cal/OSHA’s scope. In the CalPERS discussion, members raised concerns about transparency in private equity and external management fees, while CalPERS said higher fees reflect a strategy of greater private-market and active-management exposure and are offset by higher net returns. Members urged more information on specific investments and future reporting. For CalSTRS, Finance presented routine contribution and overpayment adjustments, but members also raised broader transparency concerns that CalSTRS staff said they would follow up on separately. Public comment in Part A was dominated by strong support for an immigrant worker emergency relief fund, along with support for apprenticeship and workforce proposals and PERB staffing. The chair and members said they would follow up on where the immigrant relief proposal should be considered, noting it may belong in another policy area. The hearing then moved into Part B with an overview of Judicial Branch-related May Revision items, including court interpreter funding, appellate court security, workload cap changes, lactation room implementation delays, and a reduction to the state court facility construction backfill.

Transcript Highlights:

• So I'm confused as to how this would be a budgetary issue.
• So I'm confused as to how this would be a budgetary issue.
• So I'm confused as to how this would be a budgetary issue.
• So I'm confused as to how this would be a budgetary issue.
• So I'm confused as to how this would be a budgetary issue.

Summary: The committee first took up House Bill 313 and, on motion by Representative Perez, voted to retain the bill because members felt it needed further work and was not ready for final action. The motion passed 18-0, and no further action was taken on the bill. House Bill 391, an anti-SLAPP measure, was then discussed; supporters said it addressed a real problem and should move forward, while opponents raised concerns that it was too broad, could affect criminal cases, and might create procedural complications. The committee voted 18-0 to retain HB 391 as well, and it was placed on consent. The committee next considered House Bill 462, establishing a cause of action for unwarranted video imaging of residential properties. Representative McFarland moved OTP, saying the bill raised First Amendment and property-rights concerns. The motion passed 18-0, and the bill was also placed on consent. The committee then turned to House Bill 509, which would require reporting on forfeitures. Supporters argued the information was useful for future legislation, while opponents said the reporting would be costly, duplicative, and potentially split data across fiscal years. The committee voted 11-7 to recommend OTP, with a minority of members opposed. House Bill 520, authorizing Department of Education hearing officers to issue subpoenas, drew the most extended debate. Supporters argued DOE needed the same tools other agencies have, while opponents said DOE already had access to needed information, the Attorney General could handle subpoenas, and the bill would create an unbalanced process and raise due process and student-record concerns. Representative Tur offered Amendment 0842H to shift subpoena power from DOE hearing officers to the Attorney General; after debate, the amendment failed 10-8. The transcript cuts off as the committee begins the roll call on the underlying bill after rejecting the amendment.

Transcript Highlights:

• We The income levels are slightly different.
• So again, happy to talk about it more, but want to give that high-level note.
• So again, happy to talk about it more, but want to give that high-level note.
• Is it to maintain it at the state level? Or?
• levels?

Summary: The Assembly Budget Subcommittee on Human Services heard an overview of efforts to streamline access to safety net programs and move toward more automatic, person-centered enrollment. CDSS, DHCS, and CalHHS described current cross-enrollment between Medi-Cal, CalFresh, and CalWORKs, including data showing high overlap among programs and a text-message outreach pilot that increased CalWORKs applications and enrollments but reached only a small share of potentially eligible people. Witnesses emphasized barriers such as differing federal eligibility rules, data-sharing limits, privacy concerns, and the need for better technology, consent management, and stakeholder engagement. Members pressed the administration on how to institutionalize these efforts across administrations and asked for concrete budgetary and regulatory steps to support “no wrong door” enrollment and automatic referrals. The committee also reviewed several chair priorities. On the proposed foster care multi-agency office, CDSS said existing coordination structures already address much of the intended work and asked to verify prior fiscal scoring. On the Employment First Office, CalHHS explained that the office’s $1 million budget was eliminated in the 2024-25 budget as part of deficit reductions, while noting that employment for people with intellectual and developmental disabilities remains an administration priority through existing departmental coordination. For the food insecurity proposal, CDSS said it could provide technical assistance but would need new data-sharing agreements, could not separately calculate a CFAP participation rate with current data, and would likely need until July 1, 2027, plus ongoing staffing, to complete the requested report. The mandated reporter proposal drew support for reform, with CDSS estimating low-millions in one-time training costs and ongoing costs in the hundreds of thousands. The subcommittee also discussed a guaranteed income proposal. CalHHS suggested drafting new statutory language and considering a county-administered model rather than a state-run competitive grant process to reduce administrative burden, while members and public commenters urged support for AB 661 and a study of a permanent statewide guaranteed income program. Public testimony also supported automatic enrollment, community-supporting mandated reporting reforms, and cash assistance for fire recovery. In the final items, CSD described how local nonprofit partners helped during the Los Angeles fires with food, housing vouchers, transportation, and emergency energy assistance, and explained that LIHEAP and CSBG remain important but limited tools for disaster response. CSD also said recent federal staffing cuts and possible future federal budget threats could affect LIHEAP and CSBG administration, though no immediate service disruptions had occurred and additional LIHEAP funds were expected to be released soon.

Transcript Highlights:

• you could run into a situation where somebody's cashing out a tremendous amount and it could be a budgetary
• you could run into a situation where somebody's cashing out a tremendous amount and it could be a budgetary
• could be uh tremendous amount and it could be uh become<00:24:16.400><c> a</c><00:24:16.640><c> budgetary
• </c><00:24:18.640><c> So</c> become a budgetary uh issue for you.
• So become a budgetary uh issue for you.

Summary: The committee first took up Representative John Blanton’s bill on pension spiking and Kentucky Public Pension Authority administration. Blanton said the measure would make a prior court-related pension-spiking fix retroactive to July 1, 2022, so employees who retired between that date and the court ruling would be treated the same as those covered by the earlier legislation. KPPPA staff said they did not think the bill would go beyond the Court of Appeals ruling, but noted it could prompt requests from people who retired before July 1, 2022. Members asked about how many retirees might be affected, whether the language was narrow enough, and whether the bill could open the door to additional claims; Blanton estimated roughly 1,000 retirees would need review, with fewer actually impacted. No vote was taken on the bill in the excerpt. The committee then heard Senator Matt Nunn and Scott County Schools Superintendent Billy Parker present a proposal allowing school districts to offer teachers and other employees a voluntary payout for unused sick days. Supporters said the idea could improve attendance, reduce substitute costs and classroom disruptions, help retain younger teachers, and potentially lower long-term retirement-related costs because the payout would not count toward pension compensation. They emphasized the program would be optional for districts and employees, would require teachers to keep at least 15 sick days in reserve, and would be district-funded rather than a state cost. Members raised questions about budget impact, tax treatment, pension effects, and whether the incentive would actually change behavior; the bill sponsor and witnesses said the payout would be taxed like other compensation and would not affect TRS or CERS benefits. One member requested reporting on how the program would be used, and the sponsor said he would be open to adding that. The sponsor also noted a later committee-substitute change would allow use of accumulated sick leave for observance of religious holidays not otherwise on the school calendar, with a personal statement from the employee.

Transcript Highlights:

• </c> implementation and budgetary priorities. implementation and budgetary priorities.
• Postsecondary institutions are generally held harmless from any cuts and unfunded at the base level.
• </c><00:42:41.360><c> However,</c><00:42:41.760><c> we</c> unfunded at the base level.
• However, we unfunded at the base level.
• This chamber so honorably has for years maintained an exceptional level of discipline in their budgeting

Transcript Highlights:

• The level of training and expertise and cooperation across agencies was truly inspiring to see.
• The level of absolutely amazing.
• </c><00:42:55.280><c> shortfalls</c> we identified major budgetary shortfalls we identified major budgetary
• </c><00:43:05.760><c> planning</c> first uh lack of budgetary planning first uh lack of budgetary planning
• </c> approved at that level approved at that level &gt;&gt; inspect<00:49:04.960><c> and</c><00:49:05.280

Summary: The Budget Review Subcommittee on Health and Family Services met in person, approved the October 15 minutes, and began with a moment of silence following a Louisville UPS plane explosion that was described as a local tragedy affecting many families and first responders. The main presentation was an overview of Kentucky’s Medicaid non-emergency medical transportation (NMT) program from the Department for Medicaid Services and the Transportation Cabinet. Witnesses explained that NMT is a federally required Medicaid benefit, administered by the Transportation Cabinet under a risk-based capitated model, with eligibility limited to Medicaid members traveling to medically necessary, Medicaid-covered services and who lack access to other transportation. They also described exclusions, including certain KCHIP, QMB, and PACE members, and outlined the brokered regional structure, call center operations, scheduling rules, vehicle and driver oversight, complaint handling, and rider surveys. The presenters reported that NMT handled more than 3.1 million trips in state fiscal year 2024, with over 1.38 million trips already recorded in October, and said customer satisfaction surveys were high. They said the FY 2025-26 contract total is about $360.6 million, with monthly per-member capitation rates set by region through an actuarial process and approved by CMS. They emphasized that payments are tied to monthly Medicaid enrollment and that the state draws down federal funds for the exact amount paid, with no leftover balance. They also said most NMT use comes from adult day centers and rehabilitative care such as dialysis. Members questioned the witnesses about how quality metrics and contract standards are set, whether the state had explored alternatives such as Uber Health or other integrated models, and how utilization was calculated. The witnesses said contract requirements are developed collaboratively by Medicaid Services, the Transportation Cabinet, and other agencies, and that studies of other models generally found higher costs and lower approval ratings, with additional research on a hybrid model expected by the end of the year. They clarified that one figure reflected the share of Medicaid members with registered vehicles, while another reflected actual NMT users, and they defended the capitated structure as shifting financial risk to brokers rather than the state. Representative Fleming also raised concerns about oversight, reporting, and the apparent gap between budgeted and contracted amounts, asking whether any unused funds would return to general funds; the discussion ended before a final answer was given.

Transcript Highlights:

• Right now, the budget has a budgetary balance, you know, money that is on the good side of the ledger
• budget</c><00:01:05.439><c> has</c><00:01:05.600><c> a</c><00:01:05.920><c> a</c><00:01:06.080><c> budgetary
• </c> right now the budget has a a budgetary right now the budget has a a budgetary balance<00:01:07.400
• Broadening out to a wider view, there are concerns about what's happening on a federal level, what impacts

Transcript Highlights:

• done and passed off this chamber so we can make sure that this is done along with the rest of our budgetary
• the<00:05:38.960><c> rest</c><00:05:39.039><c> of</c><00:05:39.199><c> our</c><00:05:39.360><c> budgetary
• </c><00:05:39.840><c> duties</c><00:05:40.240><c> down</c> the rest of our budgetary duties down the
• rest of our budgetary duties down here<00:05:40.720><c> at</c><00:05:41.039><c> the</c><00:05:41.199>
• with everyone on a personal level on this issue.

Transcript Highlights:

• limit set by the federal budgetary limit set by the federal programs<00:39:48.920><c> thank</c> programs
• Okay, but the contribution levels from the employer side at the very least, and therefore employee as
• what we're understanding from our business members, particularly those that operate on a national level
• so</c><00:46:47.720><c> um</c><00:46:47.960><c> Distributors</c><00:46:48.680><c> and</c> national level
• so um Distributors and national level so um Distributors and companies<00:46:49.440><c> that</c><00:

Committee: House Labor

Transcript Highlights:

• It could also create a level of community and camaraderie throughout the state.
• We still have to go through the budgetary process.
• We're not asking to change anything of the budgetary process.
• If we approve a budget and we make a transfer, we're going to have to go through our budgetary process
• We would like to see that MOU finalized and done at the local level without interference.

Committee: House Crime and Public Safety

Transcript Highlights:

• Tourism marketing is more than a budgetary line item.
• Tourism marketing is more than a budgetary line item.
• In 2019, I started with the Arizona Office of Tourism, served in many different levels within the agency
• intelligence is excelling, and I say this as someone who is using it with multiple clients for deep-level
• analysis, you know, McKinsey-level analysis on various actual geographic locations and the tourists

Committee: Senate Director Nominations

Transcript Highlights:

• Additionally, instead of using the Seattle CPI, they used a national-level CPI that grows at a much slower
• President, and I do have immense respect for the myriad of budgetary decisions that are done.
• The myriad of budgetary decisions that are done.

Bills: SCR8410

Summary: The Senate considered engrossed substitute Senate Bill 6346, a major tax package creating a new income tax on high earners, providing tax reductions and credits, and funding various spending priorities. A point of order was raised that House amendments exceeded the bill’s scope under Senate Rule 66, focusing on new provisions affecting sales and use taxes and business and occupation taxes. The President ruled the amendments were within scope, finding they were tax reductions similar to those already in the Senate-passed bill, and the Senate then took up the motion to concur in the House amendments. Members debated the House changes at length. Supporters said the amendments improved the bill by expanding the Working Families Tax Credit, adding exemptions for diapers and over-the-counter medicines, bringing forward some tax relief, preserving business loss carryforwards, and adding funding or intent language for items such as Fair Start for Kids, K-12 investments, local government replacement funding, and universal school meals. Opponents argued the bill remained unconstitutional or unfair, criticized the income tax structure and inflation indexing changes, objected to the gambling-loss deduction and limits on charitable deductions, and said the bill’s promises on public defense, education, and other priorities were not secured in the body of the measure. On a roll call vote, the Senate concurred in the House amendments by a vote of 27-21, with one excused. The Senate then passed Engrossed Substitute Senate Bill 6346 as amended by the House by the same 27-21 vote, and the President signed the bill in open session. The chamber also received several messages from the House announcing signed bills, and then adjourned until the next scheduled meeting.

Transcript Highlights:

• This enables more irresponsible borrowing for any new budgetary debts.
• It's like we're, again, we don't have a solid number, $34 billion in budgetary borrowing, $223 billion
• borrowing, so we have a $34 billion budgetary borrowing.
• compounded, and I do agree that it's going to take much more than this housing bond to address the levels
• I rise in support of SCR 113 as the chair of the Military and Veterans Committee, on a personal level

Transcript Highlights:

• ,</c><00:08:10.400><c> we</c> reappraise at the town-by-town level, we reappraise at the town-by-town
• level, we don't<00:08:10.880><c> have</c><00:08:11.040><c> the</c><00:08:11.160><c> mathematical</c>
• Um, it would be a budgetary expense.
• Um it would be a budgetary<00:26:51.520><c> expense.
• We do not we expect budgetary expense.

Transcript Highlights:

• It was a budgetary year mark. We had some internal numbers.
• It was a budgetary year mark. We for it. It was a budgetary year mark.
• </c><01:04:08.799><c> It's</c> is a whole a whole another level.
• It's is a whole a whole another level. It's high<01:04:09.280><c> cut.
• It's a whole another level of high cut.

Summary: The meeting began with routine business, including welcoming new committee member Senator Reginald Thomas, approving the minutes, and receiving a correspondence report on several information items. Those items included University of Kentucky research equipment funding, UK capital project funding using federal/private funds, debt issues from McGoffin County and Owen County school districts, lease modifications by the Division of Real Properties, asset preservation project revisions at Eastern Kentucky University and Northern Kentucky University, and Kentucky Communications Network Authority (KCNA) information on Kentucky Wired critical infrastructure. The main discussion focused on a dispute over the Kentucky Wired communication shelters, or “huts,” and related payments under KCNA’s agreement with Asellicom/Excel. Brad Kilby of Asellicom testified that KCNA had not paid for the huts, that Asellicom had not received the alleged $8 million or any later payment, and that Asellicom remained the legal owner. Committee members pressed him on whether payment had been received, whether anyone else might have received it, and whether the lawsuit or dispute resolution process clarified the issue. Kilby said no payment had been received and that the matter was part of ongoing litigation. KCNA Executive Director Doug Hendricks and General Counsel Adam Atkins then testified. They said a certified check for $8.5 million was mailed in July, based on the Finance and Administration Cabinet secretary’s determination that $8.5 million was due under the model procurement code, even though KCNA had initially requested about $12 million to cover a worst-case estimate. They said the contract allowed payment in full or in tranches, that the huts were completed and operational, and that KCNA had not received documentation supporting Asellicom’s higher $10.1 million claim. Members expressed frustration over the missing check and the broader implications for Kentucky Wired, and one member requested that the committee obtain all agency requests related to KCNA/Kentucky Wired since inception; the co-chairs said they would look into making that information available. No formal vote was taken on the dispute during the portion provided.

Transcript Highlights:

• </c> levels have decreased over time. levels have decreased over time.
• </c><00:47:44.600><c> pressures</c> pressures of budgetary pressures pressures of budgetary pressures
• I think, as I mentioned before, pre-pandemic levels, the state had lower cash levels, and there was a
• Is that kind of the level dollars?
• Levels, levels, um, um, um, you know, in a way that we can survive inflation.

Committee: House Ways and Means