Transcript Highlights:

• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.

Transcript Highlights:

• </c> spend any money it has no fiscal impact spend any money it has no fiscal impact and<00:48:00.520
• I'm concerned about its impact on the existing lines.
• I'm concerned about its impact on the existing lines.
• I'm concerned about its impact on the existing lines.
• </c><00:51:33.280><c> I</c> bill does not have a fiscal impact I bill does not have a fiscal impact I

Transcript Highlights:

• </c> annually for inflation. annually for inflation.
• Act that aren't adjusted by inflation.
• ><c> adjustment</c><00:37:50.800><c> to</c> 73 includes an inflation adjustment to 73 includes an inflation
• </c><00:41:21.680><c> of</c> estimate the overall fiscal impact of estimate the overall fiscal impact
• </c><00:43:00.880><c> measure</c> be one, there is an inflation measure be one, there is an inflation

Transcript Highlights:

• So, let's talk about the impact of these advisements.
• So we're seeing inflation going in the wrong direction.
• So inflation is heading in the wrong direction.
• Higher tariffs and higher inflation remain significant risks.
• And so, you know, we're still dealing with the increased inflation.

Transcript Highlights:

• The actual potential impact on them is relatively small.
• Market values have risen much more quickly than inflation.
• That would significantly impact our ability to handle that.
• The negative impact and recurring negative impact of this particular proposal is $13.3 billion.
• What impacts my neighbor also impacts me, and that is why we all contribute to the local government Representative

Transcript Highlights:

• However, we also know the impact.
• However, we also know the impact.
• Moving to the fiscal impacts, there is a fiscal note in EBB showing an estimated fiscal impact of this
• And the amendment that Kelly mentioned would not impact the fiscal impact of this bill.
• That threshold has increased for inflation since calendar year 2019, and the inflated per-pupil limit

Bills: HB2675 , HB2681 , HB2714 , HB2688 , HB2481 , HB2116 , HB1408

Committee: House Appropriations

Keywords: accounts, finance, business regulation, transparency, audits, cannabis, license fees, regulatory framework, revenue generation, legalization, HB 2714, caseload forecasting, food assistance, SNAP, Supplemental Nutrition Assistance Program, state food assistance, budget forecasting, caseload forecast council, caseload forecast supervisor, Washington State

Transcript Highlights:

• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• Now let's discuss OB3's impact on our tax revenue.
• It would be a significant revenue impact.
• I think people seem to be underestimating the impact that inflation has on collections and will continue

Committee: Joint Joint Committee on Ways and Means

Summary: The Senate and House Ways and Means chairs opened the FY 2027 consensus revenue hearing by emphasizing the need for a balanced, fiscally responsible budget amid federal funding cuts, health care cost pressures, and uncertainty around the federal tax law changes referred to as OB3. They also noted the state’s current revenue performance is slightly above benchmark and paid tribute to the late Representative Anne Margaret Ferranti. Secretary of Administration and Finance Matthew Gorkowitz echoed the call for caution, saying Massachusetts has protected core services while building reserves and that the FY27 budget process begins with a careful revenue estimate. Department of Revenue Commissioner Jeff Snyder, along with DOR staff, presented FY26 and FY27 tax forecasts and identified major drivers and risks: OB3’s negative impact on state revenue, surtax collections, labor market conditions, capital gains, and corporate/business excise taxes. DOR estimated OB3 would reduce FY26 revenue by about $664 million and FY27 by about $282 million, while surtax and capital gains were expected to remain strong in FY26 but soften in FY27. Members questioned the outlook for surtax, capital gains, and the potential fiscal effect of a ballot question reducing the income tax rate from 5% to 4%; DOR said that proposal could cost roughly $4.2 billion to $4.8 billion annually, with a smaller but still significant impact in FY27 because of phase-in timing. Treasurer Deb Goldberg testified next on the stabilization fund, lottery, PRIM, unclaimed property, and the Alcoholic Beverages Control Commission. She reported the rainy day fund at about $8.1 billion, said the lottery was on track for $1.5 billion in FY26 net profit and projected $1.25 billion in FY27, and highlighted that iLottery is expected to launch in summer 2026 with revenue beginning in FY27 and dedicated to child care initiatives. She also described strong PRIM performance and record unclaimed property returns, while members asked about the child care use of iLottery revenue, multilingual outreach, and the economic impact of expanded liquor licensing. Mass Taxpayers Foundation President Doug Howgate and Tufts’ Evan Horowitz then offered differing revenue outlooks and policy warnings. Howgate projected modest growth, cautioned against overusing reserves for ongoing obligations, and urged caution on federal tax conformity changes and health care spending pressures. Horowitz projected higher FY26 and FY27 revenues than other witnesses, warned that the surtax and capital gains make the tax system more volatile, and said a 4% income tax ballot question could reduce FY27 revenues by roughly $800 million to $1 billion. He also flagged the rent control ballot question as a potential risk to municipal finance and suggested the state consider giving a permanent home to the independent revenue model used by Alan Clayton-Matthews.

Transcript Highlights:

• The immediate impact of COVID was sort of a.
• But inflation over the same time.
• So, do we have an inflation-adjusted...
• Is total funding adjusted for inflation? So this, the bars are not adjusted for inflation.
• State funding, when you adjust for inflation, has declined.

Committee: House Public Education

Transcript Highlights:

• We can now begin to assess its full and significant impact.
• So turning to the third page, when do these impacts occur?
• I'm sorry that we don't know the impact. this fall or next fall.
• Primarily doctors and dentists, but it will impact nurses as well.
• The financial impact of this bill is devastating.

Transcript Highlights:

• What happened is or 1% inflation rate.
• </c> impact Medicare at all. impact Medicare at all. &gt;&gt; No<00:05:01.759><c> question.
• It doesn't impact any of that.
• It doesn't impact any of that.
• It doesn't impact any of that.

Bills: HF3797 , HF3780 , HF4068 , HF3935

Committee: House Human Services Finance and Policy

Transcript Highlights:

• Chair, that you mentioned tying fees to inflation.
• Not everything is tied to inflation that we have.
• Chair, that you mentioned tying fees to inflation.
• Not everything is tied to inflation that we have.
• This impacts immigrant communities, LGBTQ+ communities, and so on.

Summary: The committee first heard a DMV budget presentation on the state-to-state verification system required for Real ID compliance and the Digital Experience Platform (DXP) modernization project. DMV officials said the state-to-state system is a pointer-based exchange used when a person applies for a license in another state, with only limited identifying data shared initially and the full driver history sent only after a qualified request. Members raised concerns about privacy, possible misuse by other states or federal actors, notification to Californians, hacking, and whether California could detect or stop abusive access. DMV said it can monitor requests, see patterns of access, work with AAMVA and legal counsel, and seek to block or challenge misuse; LAO said California is in a difficult position and should consider guardrails rather than opt out. On DXP, DMV said the project is on its revised schedule and budget, occupational licensing is complete, vehicle registration is expected by the end of calendar year 2026, and the full system should be finished by fiscal year 2028-29, with phased rollout and reappropriated funding to keep costs controlled. The committee then heard from the California High-Speed Rail Office of Inspector General on a trailer bill and AB 1608. The Inspector General said current law does not clearly authorize public reports or establish a framework for retaining and disclosing work papers, and the proposed trailer bill would create that framework while also adding authority to hire needed classifications and purchase goods and services. He also said the office needs a clearer statutory definition of “proposed agreements” and notice when the High-Speed Rail Authority is reviewing them, so the office can review contracts and related agreements effectively. LAO raised no concerns with the trailer bill language, and Finance said any amendments would come in the May revision. Members debated the scope of confidentiality in the Inspector General proposal, especially whether reports could be held confidential when they identify weaknesses in fraud controls, security, or other vulnerabilities. The Inspector General said confidentiality would be temporary, tied to articulating the risk, reassessing it every 120 days, and releasing the report once the risk is no longer substantial; he also said the office had already published reports at its discretion and had found at least one procurement violation involving an amendment that added services not in the original contract. Several members pressed for stronger transparency and suggested time limits or broader disclosure, while others argued the bill would improve oversight and make the Inspector General’s authority clearer. No votes were taken during the discussion, and the item was left for further work on the trailer bill and AB 1608 language.

Transcript Highlights:

• And because the fiscal impact shows minimal impact, the bill is being considered this morning.
• The Department of Financial Institutions estimates no fiscal impacts.
• It changes the inflation adjustment from annually to biannually.
• And it specifies that DFI's inflation adjustment applies to the maximum...
• Impacts on local governments were listed as indeterminate, and there are no amendments.

Bills: SB6248 , SB5976 , SB6079 , SB6250 , SB6257 , SB6289 , SB6230 , SB6312 , SB6149 , SGA9060 , SGA9169 , SGA9265 , SGA9266

Committee: Senate Business, Trade & Economic Development

Keywords: travel insurance, travel protection plan, travel assistance services, cancellation fee waiver, travel retailer, travel administrator, limited lines producer, insurance producer license, blanket travel insurance, trip cancellation, trip interruption, travel medical coverage, emergency evacuation, repatriation, inland marine, premium tax, consumer protection, unfair trade practice, insurance commissioner, Washington RCW

Transcript Highlights:

• Operational impacts, fiscal impacts.
• Operational impacts, fiscal impacts, and, again, I cannot stress this enough, prolonged delivery times
• In Los Angeles County, we have seen these impacts firsthand.
• I'm very interested in the impacts of consolidation in terms of the pricing.
• I would assume climate change is not having as much of an impact on local.

Committee: House Emergency Management

Transcript Highlights:

• . inflation. inflation.
• We did talk a bit about the inflator, whether to use one inflator or the other.
• </c> terrorists and by inflation. terrorists and by inflation.
• </c> impact our schools. impact our schools.
• </c> they could be impacted by this cap. they could be impacted by this cap.

Transcript Highlights:

• Now, these are climate impacts, and there are other things that impact these, but this is the Earth telling
• Let's look at the impact of fossil fuels on inflation.
• Let's of concern today about inflation.
• of fossil fuels on look at the impact of fossil fuels on inflation.<00:39:56.880><c> If</c><00:39:57.200
• </c> by Moody's, every period of inflation by Moody's, every period of inflation was<00:40:07.280><c>

Transcript Highlights:

• That rate goes up and down with inflation.
• So one of the struggles, and Aaron mentioned this as well, you know, we've all seen inflation, the impacts
• of inflation.
• But when you think about inflation, Recently. It's crazy.
• “So there was a minimal impact in that respect, but there were.

Summary: The Pre-K through 12 Budget Subcommittee met with a quorum and focused on School Readiness, specifically the new provider reimbursement rates and the School Readiness Plus program. The chair gave an overview of how School Readiness is funded and administered, noting that the Legislature now sets county-based reimbursement rates using market and cost data, and that School Readiness Plus was created to help families who would otherwise fall off the subsidy “cliff” at 85% of state median income by extending assistance up to 100% of state median income. Panelists from the Children’s Forum, the Association of Early Learning Coalitions, and the Division of Early Learning described the programs as major workforce and family-support tools that help parents stay employed and help providers recruit and retain qualified staff. Testimony emphasized that higher reimbursement rates increase parental choice, help providers cover rising child care costs, and support better staffing and lower turnover. The panel also said School Readiness Plus is easing the pressure on families to turn down raises or promotions for fear of losing child care assistance, though uptake is still early because the program only began in late 2024 and is only available to current School Readiness families at redetermination. The Division of Early Learning reported about 275 children enrolled in School Readiness Plus as of March 10, with expenditures of about $161,420 through January 2025, and said participation is increasing. Members asked about the federal-state funding split, wait lists, reverted funds, coalition accountability, county-based rate differences, and whether the entrance eligibility threshold should be raised or shifted to state median income. The panel said roughly 70% of School Readiness funding is federal, about 4% has typically reverted in recent years, and the wait list is around 12,000 children, with reasons including income ineligibility, lack of available seats, and funding limits. They argued that raising the entrance threshold would expand access but would require additional funding, and they also discussed the need to reduce workforce barriers such as in-person testing and training requirements. The meeting ended with no formal action beyond the presentation and member discussion, and the subcommittee adjourned.

Transcript Highlights:

• So I want to know about the inflation issue and how the administration looks at what the level of inflation
• When accounting for inflation... ...Great Recession, not adjusting for inflation.
• In addition to funding Chapter 70 at a level that takes into account the real impact of inflation, we
• Have you seen an impact?
• Have you seen an impact?

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• They're impacting all states. They're impacting Texas. They're impacting Iowa.
• They're impacting all states. They're impacting Texas. They're impacting Iowa.
• goods, the impact of inflation is exponentially worse for our small-scale local farmers.
• </c><01:41:03.520><c> of</c><01:41:03.679><c> inflation</c><01:41:04.159><c> is</c> goods, the impact
• of inflation is goods, the impact of inflation is exponentially<01:41:05.199><c> worse</c><01:41:05.760

Transcript Highlights:

• But it would... it could have some impact, though, right? You don't know what the impact would be.
• But they're both impacted.
• Inflation, yes. Inflation, no. There's no debate on the $22.7 billion at this point.
• of inflation.
• They are dealing with the impact of inflation, and a majority of districts in the state are operating

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• There is no state revenue impact.
• There is no direct impact on state revenues.
• There is no state revenue impact.
• It doesn’t keep up with inflation.
• and its impacts.

Summary: The House Finance Committee heard briefings and public testimony on several bills related to local tax authority and exemptions. HB 2559 would let cities and counties impose an additional 4% lodging/short-term rental excise tax starting in 2027, with revenues dedicated to affordable housing programs and up to 15% for administration. Staff explained existing lodging tax limits and estimated substantial local collections, while the prime sponsor and supporters argued it would give local governments a needed tool to address housing shortages caused in part by short-term rentals. Opponents, including short-term rental owners and hosts, said the tax would hurt tourism communities, reduce supplemental income for owners, and should not single out one lodging segment. The hearing on HB 2559 was suspended and later reopened for additional testimony; no vote was taken. The committee also heard HB 2133, which would make permanent the property tax exemption for multipurpose nonprofit senior citizen centers. Staff said the exemption is currently set to expire in 2028 and that the bill would remove it from the automatic 10-year sunset. The sponsor and a veteran/senior center perspective emphasized that the exemption helps keep senior centers open and supports isolated older adults. A question was raised about whether a broader nonprofit community center with senior-focused space would qualify, and staff said they would follow up. The hearing on HB 2133 was then closed. HB 2135 would increase and extend the adaptive housing sales and use tax remittance for disabled veterans, raising the individual lifetime cap from $2,500 to $5,000, increasing the statewide annual cap, and extending the program’s expiration to 2038. Staff said the fiscal impact would be minimal because use is low, and a veterans coalition representative supported the bill as a way to ensure more federal grant dollars go toward home modifications. The hearing on HB 2135 was closed. The committee spent the most time on HB 2442, an eight-part local government tax and fund-flexibility bill. It would expand uses of existing REET revenues, allow cities to adopt an affordable-housing REET under certain conditions, authorize county public utility taxes with a low-income assistance set-aside, create a new local sales tax for children and family services, broaden housing-related sales tax uses, restructure mental health and veterans property tax levies, extend levy lid lift periods, and allow rental car tax revenues to be used for criminal justice purposes. Supporters from counties, cities, housing groups, and some local officials said the bill would provide needed fiscal flexibility and new tools to address housing, public safety, and service demands. Opponents from utilities, realtors, water and sewer districts, wireless carriers, auto dealers, and tax critics argued the bill would raise regressive costs, especially on housing and utility customers, and that some provisions lacked a sufficient nexus to the original taxes. The hearing on HB 2442 was closed after extensive testimony.