Transcript Highlights:

• If systems not patterned and those patterns reflect system design.
• Yeah, well, I'm very systems focused, right?
• So how can we make it so that these... ...systems, these data systems, talk to each other, that potentially
• And when it became a federally qualified health center, they used the Epic system, their computer system
• They are predictable and systemic.

Keywords: 987, senate, all

Transcript Highlights:

• AI systems learn from historical data.
• AI systems, uh, but this can reflect systemic biases that's in that data set right now.
• > advanced,<00:04:50.320> lack systems, no matter how advanced, lack systems, no matter
• AI systems learn from inequalities. AI systems learn from historical<00:05:06.000> data.
• AI systems the uh but this can<00:05:14.960> reflect<00:05:15.360> systemic<00:05:15.919

Keywords: 1183, house

Transcript Highlights:

• system can't handle that. system can't handle that.
• system, right?
• At the end of the day, you know, we do think lease systems are lower-cost systems.
• system, right?
• At the end of the day, you know, we do think lease systems are lower-cost systems.

Bills: HB2241, HB2316, HB1566, HB1926, HB1673, HB1948, HB2602, HB1598, HB2334, HB2451, HB2243

Keywords: renewable energy, income tax credit, solar energy, wind energy, low-income households, energy policy, lead materials, drinking water, public health, water infrastructure, safety regulations, HB1566, energy efficiency, LED lighting, light-emitting diodes, fluorescent bulbs, fluorescent fixtures, compact fluorescent lamps, CFL ban, mercury-free lighting

Summary: The committee heard testimony on a bill to expand the solar energy tax credit for single-family residential properties by removing certain cap amounts and raising the adjusted gross income limits for taxpayers to elect a refund of excess credits. The Hawaii State Energy Office and Department of Taxation both said they were standing on written testimony, while industry and advocacy groups largely supported the measure. Members questioned whether the income thresholds were set appropriately, how many taxpayers would be affected at different income levels, and how many would qualify for refundable treatment; Taxation said it did not yet have the requested numbers but was preparing a fiscal estimate. A major issue raised was drafting and administration: witnesses said the bill appears to apply differently to owner-purchased systems versus third-party leased systems, and Taxation said it likely could not easily verify household income for leased systems or cross-reference different taxpayers. Discussion also covered whether the credit should remain refundable, whether credits should be limited to amounts actually expended, and whether the bill should instead be structured to keep the credit with the system owner or lessor, with concerns about equity, market effects, and possible incentives to lease rather than buy. The committee then moved to HB 2316, which would align state restrictions on lead materials in drinking water infrastructure with federal Safe Drinking Water Act requirements. The Department of Health and other supporters testified in favor, and there were no questions from the chair. Next, HB 1566 on energy efficiency would require state agencies to use energy-efficient lighting, with the Hawaii State Energy Office providing technical assistance and a compliance survey prioritized for first responder facilities; testimony from state agencies and advocates was in support, and again there were no questions. For HB 1926 on Red Hill, the Department of Land and Natural Resources, the Board of Water Supply, and multiple organizations and individuals supported funding for remediation studies, environmental monitoring, groundwater research, independent testing, and a public dashboard, with DLNR emphasizing that decades of work remain necessary even after defueling and that the bill supports ongoing university and community partnerships. The committee then heard HB 1673 on landfill units. The Department of Health initially said it was in support but later corrected the record and stated it strongly opposes the measure, saying the bill would undo protections enacted last session that keep landfills out of areas over aquifers; the Board of Water Supply also opposed repeal of those protections, while the City and County of Honolulu supported the HD1 version that leaves siting decisions to the counties. Sierra Club of Hawaiʻi and the Energy Justice Network opposed the bill, arguing the original protections should remain and that the amended version had confused commenters; supporters of the original version urged restoring it and considering additional language on ash.

Transcript Highlights:

• touched by the system.
• . justice system.
• Oftentimes, I get accused of being a critic of the Texas juvenile justice system. justice system.
• version of our adult system.
• These kids aren't ready for an assist- system that's failing. They're in one failing system.

Bills: HB31, HB3360

Keywords: juvenile justice, community supervision, felony offenses, treatment of children, juvenile facilities, chemical dispensing device, solitary confinement, rehabilitation, criminal proceedings, delinquency, 1184, house, all

Transcript Highlights:

• legacy systems has three components. legacy systems has three components.
• systems systems are<00:15:18.720> going<00:15:18.839> to<00:15:18.920> be<00:15
• It is a stable system, but it is a system that, due to the complexity and the number of programs and
• into the system that already exists? into the system that already exists?
• transferred into the new system. transferred into the new system.

Bills: HF4525, HF3002, HF3665, HF4420

Keywords: human services, background studies, NETStudy 2.0, licensing, license suspension, license revocation, provider enrollment, program integrity, fraud, medical assistance fraud, Medicaid, payment withholding, credible allegation of fraud, background check, disqualification, variance, set-aside, foster care, family foster setting, adult foster care

Transcript Highlights:

• This system will allow the department to connect with the new enterprise Microsoft system that our whole
• These are two distinct systems with different capabilities.
• This system provides a static look at our fleet on a monthly basis.
• This system provides a static look at our fleet on a monthly basis.
• We submit data as required to their fleet management system, FleetWave.

Summary: The Committee on Government Oversight and Accountability met with a quorum and heard several presentations on state fleet management. The Department of Agriculture and Consumer Services described its new fleet tracking rollout using AT&T/GeoTab devices, funded with $804,000, to monitor vehicle location, fuel use, idle time, driver behavior, and maintenance needs in real time. Members asked about whether the system was unique to FDACS and whether it duplicated reporting to the Department of Management Services; the agency said it was still implementing the system and would follow up on those questions. The Florida Fish and Wildlife Conservation Commission presented on its large and diverse fleet, including more than 4,000 assets, and explained that it uses both the statewide FleetWave system and the Samsara telematics platform. FWC said FleetWave is used for monthly reporting and replacement tracking, while Samsara provides real-time location and diagnostics, reducing administrative burden and improving accountability. The Florida Department of Highway Safety and Motor Vehicles and Florida Highway Patrol then outlined their fleet operations, emphasizing that most assets support law enforcement, that multiple manual systems create data inaccuracies, and that they are seeking a $750,000 increase to modernize fleet management with telematics, automated receipt processing, and a centralized database to improve safety and efficiency. The committee also considered SPB 7010, which would authorize the Department of Financial Services and local governmental entities to allow post-tax Roth contributions in deferred compensation plans, in addition to existing pre-tax contributions. After a brief explanation, there was no debate or public testimony, and the committee voted to submit the bill as a committee bill. The roll call showed the measure was favorably reported, and the meeting then adjourned.

Transcript Highlights:

• our university system.
• We're the most affordable, accessible system in the country.
• All of these are things that set our system apart compared to other systems.
• Those are what I see as the strengths of our system.
• And currently, there are only three systems—Florida, North Carolina, and the University of Texas system—which

Summary: The Appropriations Committee on Higher Education met to examine how Florida’s state universities are funded and to begin discussing a possible university funding model. The panel included the State University System chancellor and CFOs from FSU, UF, FAMU, FAU, UNF, and UCF. Members first reviewed major cost drivers, which the universities said are broadly similar across institutions: wages and benefits, equipment and supplies, financial aid, professional services, utilities, IT, and maintenance. Several institutions noted unique pressures from geography, growth, research intensity, and mission, such as UCF’s size and engineering focus, UF’s land-grant and research enterprise, FAMU’s need to recruit top talent while serving a high-Pell student population, and FSU’s large facilities and research obligations. The chancellor also summarized systemwide cost growth since 2012-13, including higher health insurance, retirement, and salary costs, while noting tuition had been held flat. The committee then discussed other revenue sources, including auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. University leaders explained that many of these funds are restricted to specific purposes, and some, like UF Health, account for a large share of operating expenses. Members also discussed the current performance-based funding process. University representatives generally praised it for transparency, accountability, and its focus on student success, but said the heavy use of one-time funds, nonrecurring appropriations, and unfunded mandates makes long-term planning difficult. FSU and others argued that rising employee costs, waivers, and facilities expenses are not fully covered, while FAMU said performance funding has improved outcomes but can disadvantage institutions serving more low-income students. In response to questions about improvements, the universities suggested more recurring and predictable funding, better coverage of mandated costs, more flexibility in fees, and continued investment in research and strategic priorities. The chancellor said the Board of Governors is considering a version 3.0 of performance funding that would benchmark institutions against peers and Carnegie classifications. The committee also explored whether universities should have more flexibility to set out-of-state tuition and professional school tuition. Most university leaders favored giving boards of trustees more authority, while the chancellor cautioned that increasing out-of-state enrollment or tuition too much could affect legislative support. No votes were taken; the meeting ended with the chair thanking the panel and adjourning the committee.

Transcript Highlights:

• First, SB 8 maintains a critical feature of our current system.
• Consistent and transparent accountability system.
• And SB 8 continues to make progress to strengthen that system.
• I'm showing my age as a systems designer. Yes, right. Age is...
• Funds a system that's been around for quite a while.

Bills: SB8, SB 8

Keywords: education, accountability, public school assessment, state law, transparency, intervention, performance ratings, sex designation, restroom access, civil penalties, private civil right of action, women's privacy, 1185, senate, all

Transcript Highlights:

• In Nevada, their system of public higher education is a single system with a single board and a central
• system.
• enter the defined benefit system.
• enter the defined benefit system.
• of that system.

Keywords: 995, all

Summary: The Joint Committee on Public Service heard testimony on a range of retirement-related bills, with several witnesses and advocates focusing on pension equity, veteran benefits, and recognition for public safety workers. Representative Dennis Gallagher and Mass Retirees supported legislation to increase the long-standing veterans’ bonus from $15 to $50 per year of service, up to $1,000 annually, and described it as a modest, overdue adjustment with minimal fiscal impact. Mass Retirees also backed bills to raise the minimum survivor allowance for public retirees and to address inequities in Option B and Option C survivor benefits for retirees whose pensions were calculated under older mortality tables. The committee also heard a personal bill from Representative Jim Arceiro and Nathan McKinnon seeking creditable service for McKinnon’s years in the Nevada higher education system, which he said should count toward his Massachusetts retirement. Another individual bill was presented by Roberta Wollins, supported by Senator Keenan, to remedy what she described as misleading retirement advice from UMass Boston that affected her ability to buy back prior service and made her retirement planning inaccurate. Senator Keenan and others framed both cases as unique fairness issues rather than broad policy changes. A large panel from police, fire, corrections, EMS, and related organizations testified in favor of a COVID-19 retirement credit proposal and a study bill, arguing that essential workers who reported in person throughout the pandemic should receive recognition and a time-based retirement credit. Witnesses described exposure risks, illness, deaths, staffing strain, and long-term effects from COVID-19, and several committee members voiced support and appreciation for their service. The hearing concluded with no votes taken on the bills and a motion to adjourn, which was approved.

Transcript Highlights:

• the retirement system.
• > is<00:26:19.559> a system the university system is a system the university system is a separate
• <00:27:50.159> recently system we um the two systems recently system we um the two systems
• college system and the university system college system and the university system to<00:28:12.760
• college system, and others.

Keywords: 928, house, all

Summary: The committee received an orientation from University System of New Hampshire Chancellor Katherine Preventure and Senior Director of Government Relations Lauren Banker on the system’s enrollment, finances, workforce role, and academic programs. They described the system as consisting of UNH, Keene State, and Plymouth State, with about 23,000 students, $928 million in FY24 operating expenses, a $3.7 billion economic impact, and UNH’s R1 research status. They emphasized the system’s role in graduating students into the New Hampshire workforce, its statewide Cooperative Extension and regional campus presence, and its alignment of degree offerings with top occupations identified by New Hampshire Employment Security. The presentation also highlighted partnerships with businesses, internships, and collaboration with the community college system, including 100 transfer pathways and a direct-admit program. A substantial portion of the discussion focused on tuition, state support, and student costs. The chancellor said the state invested $95 million in FY25, with about $81 million used to reduce resident tuition and about $14 million for statutory programs such as Cooperative Extension and the Agricultural Experiment Station. She said the state subsidy is about $7,300 per New Hampshire student, and that resident net tuition averages about $7,000, while nonresident net tuition averages about $16,600. She provided published tuition figures for UNH, Plymouth State, and Keene State, and explained that resident tuition has been held flat for five years while financial aid has increased, reducing average net tuition and fees for New Hampshire students from about $10,500 in 2020 to $9,800. Members asked for clarification on how residency and workforce-retention percentages were calculated, and the chancellor said she would follow up. Members also asked about comparisons with peer institutions, housing and meal costs, research funding, and the reasons for declining enrollment and staffing reductions. The chancellor said peer comparisons were based on flagship universities for UNH and smaller regional publics for Plymouth and Keene, and noted that out-of-state tuition has risen about 2.5% annually. She said housing for a UNH double room is $8,536 and a meal plan is $5,100, and offered to provide a consolidated cost document. On research, she said the system’s direct research spending includes federal funding and that indirect costs were about $34 million last year, with a follow-up promised on the federal/state and direct/indirect split. She attributed enrollment declines largely to demographics and said the system is responding by reducing costs, selling buildings, exiting leases, moving the system office to NHTI, and implementing Workday. She also noted that Plymouth received approval for five three-year bachelor’s degree programs and that members praised the shorter, workforce-focused pathways, especially for manufacturing and other in-demand fields.

Transcript Highlights:

• a distribution system that continuously runs.
• Most of our systems, modern systems, continually run through the distribution.
• Our system, we have a full system, a system that's been operating for 30, 60 years.
• They were doing an installation of the same system there, and they own that system.
• We've gotten the water system rating, and we've heard what it's going to take to fix this system, and

Keywords: 974, senate, all

Summary: The committee heard testimony on the troubled water system in Tallulah and whether to appoint a limited fiscal administrator for the water utility. Senator Jackson described the system’s long-running failures, the need to expand repairs beyond the treatment plant to the distribution network, and the growing project cost, which he said had risen to roughly $26 million. Legislative Auditor’s Office staff explained that the system had received failing grades from LDH for several years, had entered joint receivership in 2024, and was placed under a public health emergency in 2025; they said the city’s adoption of limited fiscal administration in April 2026 made it eligible for additional state funding. Governor’s staff said the state, GOSEP, Magnolia, and the city had worked together to restore service and that the limited fiscal administrator would help unlock an emergency subfund and other financing sources. The mayor of Tallulah supported the appointment, saying the state’s work had improved water quality and that the limited role would focus only on the water system rather than the whole city. She said the city was preparing an RFQ to move the project toward bidding. Two residents spoke in opposition. One argued that the city had recently elected a new council and should wait for new local leadership before proceeding. Another questioned the need for the appointment, criticized past management and contract arrangements, and objected to using emergency funds to pay prior project costs. State officials responded that the F grade and public health concerns justified the action, that the administrator would control water-system finances, and that the distribution system needed repairs to address leaks and water quality issues. After discussion, a committee member moved to appoint a limited fiscal administrator for the Tallulah water system. The motion was seconded and passed without opposition. The committee then moved to public comment and adjourned.

Transcript Highlights:

• Because the operational cost of geothermal systems is much lower than conventional HVAC systems, they
• HVAC system.
• Conventional fossil fuel-powered HVAC systems and DARCI systems we expect to last 50-plus years.
• versus a conventional HVAC system.
• performance of the system.

Transcript Highlights:

• is a good classification system.
• Any good system also is gender responsive and has gender responsive Any good system also is gender responsive
• I do want to mention also that our mission as a program is not just to help the systems improve the systems
• system.
• So when you look at most systems, correction systems, the people coming out of medium tend to be a little

Keywords: 995, all

Summary: The Special Commission on Correctional Consolidation and Collaboration met on January 12 to continue its review of DOC classification practices, with Senator Brownsberger and Representative Hunt co-chairing. After brief discussion of the prior hearing, members said there would likely be another opportunity for additional testimony, including possible video testimony from people inside facilities. The main presentation for the day was DOC’s classification system and a UMass Chan study of whether the system predicts institutional misconduct and whether overrides affect its accuracy or create racial/ethnic bias. DOC officials described the objective point-based classification system, its history, and the role of discretionary and non-discretionary overrides. They said the system is designed to balance public safety and reintegration, with initial classification emphasizing offense history and reclassification emphasizing institutional adjustment. DOC reported that, in the current population, about 16% are classified to maximum security, 74% to medium, and 10% to lower security. They also reviewed the non-discretionary restrictions that keep people out of minimum or medium security, and said discretionary overrides are used less often than the National Institute of Corrections’ suggested ceiling and are reviewed within six months. UMass Chan researchers said their analysis used historical DOC data from 2019 to 2022, focused mainly on about 7,600 male reclassification cases, and found that the scored custody level accurately predicted institutional misconduct. They said the tool performed well on standard statistical measures, but predictive accuracy declined after overrides were applied, with overlap appearing between minimum and medium groups. In a supplementary analysis, they said the loss of accuracy was driven primarily by non-discretionary restrictions rather than discretionary overrides. They also said the study did not find evidence of racial or ethnic bias in the tool itself, and that DOC’s current system is comparatively more lenient than many other states. Members and guests raised concerns about overclassification to medium security, the low share of people in minimum, the role of civil commitment restrictions, and whether the data captured historical bias or individual cases where overrides felt subjective. DOC and UMass Chan responded that the study was group-based, not case-specific, and that minimum-security rates are hard to compare across states because Massachusetts’ prison and county systems differ structurally. The commission did not take a vote or formal action, but asked members to send follow-up data questions by the end of the week for referral to DOC and the researchers.

Transcript Highlights:

• For example, road weather information systems, closed-circuit TV systems, and traffic sensor systems
• The system also includes variable speed limit systems and flashing four-way stop signs in rural areas
• It's a closed system in the sense that a dust storm detection system is able to have all these multiple
• Systems that are specialized.
• The dust storm detection system draws upon road weather information systems that have a multitude of

Transcript Highlights:

• and JAV system upgrades.
• and JAV system upgrades.
• and JAV system upgrades.
• Because of our judicial system.
• Because of our judicial system.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Justice and Judiciary met without a quorum and heard an update from the Administrative Office of the Courts on the judicial branch budget. AOC Director Zach Ramsey and budget director Carol Henderson outlined the branch’s current funding structure, noting that fiscal year 2026 general fund support is about 2.77% of the state general fund, below the National Center for State Courts’ typical 2% to 4% range. They emphasized Kentucky’s unusual responsibility for courthouse facilities, with the judicial branch directly involved in construction, maintenance, and operations across 229 facilities in all 120 counties. AOC said nearly 91% of its general fund is spent on personnel and other non-discretionary costs, and that the branch has long relied on agency revenue, restricted fund carryforwards, and vacancy credits to balance court operations. Members were told that Senate Bill 25 required a $34.5 million transfer into a reserve account, part of which was used to purchase the Chamberlain Avenue building in Frankfort. AOC reported that only $11.9 million remains in restricted funds, while it projects needing about $13.5 million to cover fiscal year 2026 obligations, not including roughly $9 million in flood-related remediation costs for Hardin and Franklin counties, much of which it expects to recover through insurance and FEMA. Looking ahead to the next biennium, AOC said it will seek full funding of court operations at $341 million annually, a $13.5 million increase to bring current services into the base appropriation rather than relying on reserves. It also previewed additional requests, including a 15% across-the-board pay parity plan for Kentucky Court of Justice personnel, replacement of declining master commissioner fee revenue tied to 141 deputy circuit court clerk positions, funding for technology subscription and case management system costs, JAV audiovisual system upgrades, AEDs and medical kits for courthouses, and other staffing and operational needs. Senator Funky Frommeyer asked whether the 15% salary proposal was included in the $13.5 million increase; AOC said it was not, and that it would be an additional request. No votes or formal actions were taken.

Transcript Highlights:

• The Florida College System institutions have served over 686,000. Students.
• The funded double FTE for the Florida College System institutions as well.
• On our college system, you're recognized. Thank you. Thank you, Senator.
• and the career technical education system?
• That articulation system? I know we have all of that.

Keywords: 999, senate, all

Transcript Highlights:

• ...system here in California.
• perspective. system-wide perspective.
• . the system.
• across the systems, given the uniqueness in how we fund community colleges and our two university systems
• Would that make the system whole? I'm not sure if it'll make the system whole.

Keywords: 988, house, all

Transcript Highlights:

• , electrical systems.
• , electrical systems.
• , electrical systems.
• , electrical systems.
• , electrical systems.

Keywords: 910, house, all

Summary: The Committee on Finance received an informational briefing from the Department of Law Enforcement on its priorities following the January 1 transfer of law enforcement assets into the department, including the sheriff’s division, narcotics enforcement, criminal investigations, homeland security, and the inspector general’s office. DLE said its goals are to improve public safety, accountability, communications, training, and standards. The department outlined planned initiatives such as stronger federal partnerships, narcotics and gun-violence enforcement, an agricultural crime unit, traffic and commercial vehicle enforcement, an explosive/fireworks enforcement section, gun buybacks, new police facilities in the airport area, Aahu, and the leeward side, a state training center, upgraded law-enforcement IT, and efforts to narrow salary gaps with county departments to improve recruitment. A major portion of the discussion focused on illegal fireworks enforcement after the recent explosion tragedy. DLE said its current task force is small and relies on ad hoc support from HPD, the Attorney General’s office, criminal investigations, and sheriffs, which is not sustainable. The department requested eight FTEs for the effort—one administrator, two clerical staff, and six investigators—plus funding for a laboratory, equipment, storage, disposal, vehicles, safety gear, and a criminalist. DLE said the explosive enforcement section would use an existing facility and that the initial lab startup cost is about $2 million. Members asked for follow-up materials, and DLE said it would send the explosive enforcement forms and additional details to the Finance and Judiciary chairs. Members also questioned staffing vacancies, interagency coordination, and whether new specialized units could be filled. DLE said it has about 119 vacancies and that recruitment is hindered by a roughly $28,000 starting pay gap with county police departments; academy classes are down to about 12 to 14 recruits. The department said it is streamlining hiring, using QR-code recruitment, and hopes specialized units will attract applicants. On coordination, DLE said it works closely with HPD and other agencies on operations such as fireworks enforcement and public events, and that DOCARE remains a case-by-case partner but is not currently moving into DLE. The committee also received updates on the Silver Alert program, which is nearing rollout with county MOUs and a coordinator expected later in the month, the special duty officer program, which is being moved to a web-based vendor-managed system at no cost to the department, and the SaferWatch school safety system, which is being deployed statewide with annual software costs of $3,500 per school in the first year and $2,500 thereafter. No votes or formal actions were taken.

Transcript Highlights:

• and in time we will get modern systems and in time we will get modern systems in<00:02:50.440>
• of the system of supports. of the system of supports.
• One of the systems that is being replaced in here is the MAXA system.
• One of the systems that is being replaced in here is the MAXA system.
• capabilities on an agency-based system. capabilities on an agency-based system.

Keywords: 919, house, all

Summary: The House took up Senate File 334, a bill to modernize Minnesota’s county-administered human services technology systems, including those used for Medicaid, SNAP, and related programs. The author described the current systems as outdated “green screen” platforms from the late 1980s and early 1990s that are cumbersome for county workers, slow service delivery, and make it harder to retain staff. The bill would create an integration layer over legacy systems, establish a long-term technology modernization fund with about $90 million in spending over time and a $50 million cap, and place MNIT in charge of holding and disbursing funds. It also creates governance structures, including an interagency group with county representation and a legislative working group, and includes a $15 million fund for the Office of the Inspector General’s technology needs. Several members spoke in strong support, emphasizing that modernization would improve efficiency, help counties serve residents better, and strengthen fraud detection and data sharing. Representatives from Winona, Washington, Olmsted, Stearns, Hennepin, and others cited local experiences with hacked county systems, obsolete software, and the difficulty of recruiting workers to outdated systems. One member urged that the effort be made enterprise-wide and suggested adding the Office of Legislative Auditor to oversight. Another noted the bill’s potential to improve identity verification tools and support broader agency collaboration. No amendments were offered. After third reading and debate, the clerk called the roll and the House passed the bill with 134 ayes and 0 nays; the title was agreed to.

Transcript Highlights:

• our university system.
• We're the most affordable, accessible system in the country.
• All of these are things that set our system apart compared to other systems.
• Those are what I see as the strengths of our system.
• And currently, there are only three systems—Florida, North Carolina, and the University of Texas system—which

Summary: The committee held an informational hearing on higher education funding, focusing on how Florida’s university system should be financed and whether a new funding model is needed. University system financial officers and Chancellor Ray Rodriguez discussed major cost drivers, including wages and benefits, utilities, maintenance, financial aid, research, and the effects of geography, institutional mission, and student mix. UF highlighted the cost of research and graduate programs; UCF and FAU pointed to growth, location, and cost of living; FAMU emphasized recruiting top-tier talent while relying on other revenue sources; and UNF noted the challenges of growth and long-term planning. Members also discussed the role of internal controls and audits in addressing excessive spending and questioned whether out-of-state tuition should be adjusted to help offset costs. On revenue sources beyond state appropriations and tuition, the panel described auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. Several universities noted that some revenues are restricted to specific purposes and cannot be used for general operations. FAMU explained that a large share of its capital project funding reflected active campus construction, while UF said its component-unit revenue is largely tied to UF Health. The Chancellor emphasized that the system’s low tuition and strong state support are central to Florida’s national standing, but also noted that some auxiliary revenues are pledged to debt and must be managed carefully. When discussing the current funding process, witnesses praised Florida’s performance-based funding model for aligning incentives with student success, transparency, and accountability. They also raised concerns about non-recurring appropriations, rising employee benefit costs, unfunded mandates, deferred maintenance, and the difficulty of multi-year planning. Suggestions for improvement included more recurring funding, better coverage of mandated costs, greater flexibility in fee-setting, and possible weighting for mission, geography, and institutional type. The Chancellor said the Board of Governors is considering a “version 3.0” of performance-based funding that would benchmark institutions against peers and Carnegie classifications, but any changes would require legislative action. On out-of-state tuition, most universities said they would prefer local board flexibility, while the Chancellor cautioned that increasing out-of-state enrollment or fees could affect future state support and should be balanced carefully.