Transcript Highlights:

• And we'll be using million in surplus.
• The first bucket is those surplus those.
• However, we do have still a small but it's there general fund surplus against projected revenues and
• <00:10:12.560> against it's there general fund surplus against it's there general fund surplus
• doing is it's changing the distribution doing is it's changing the distribution methodology<00:25

Keywords: 1191, senate, all

Transcript Highlights:

• I don't know if that has been distributed. Okay, we might have to circle back to the A19 amendment.
• I don't know has that been um distributed.<00:07:58.720> Okay. distributed.
• Okay. distributed. Okay.
• So in the case of a surplus, OE could recognize below that new floor.
• So in the case of a surplus uh now350.

Keywords: 1183, house

Transcript Highlights:

• The next three pages of this packet are, we'll call them surplus statements of the Education Trust Fund
• Uh, well, I actually have an example of the Fish and Game surplus statement here in a couple pages.
• Uh, well, I actually have an example of the Fish and Game surplus statement here in a couple pages.
• <00:28:23.240> to<00:28:23.360> the paper drafted distributed to the paper drafted
• distributed to the committee<00:28:23.720> and<00:28:23.840> I<00:28:23.960> would

Keywords: 928, house, all

Summary: The meeting was an introductory House Finance Division Two session focused on committee procedures, staffing, and the upcoming budget process. Mickey Landrian, the division analyst, introduced himself and explained that the subcommittee operates more informally than the full committee, does not hold executive sessions or public hearings itself, and makes recommendations back to House Finance. Members were told that public hearings on legislation occur in the full committee, while Division Two will hold work sessions and vote on recommendations such as ought to pass, retain, or ITL. The chair also welcomed new members and a new clerk, and noted that meetings will be recorded and streamed, with microphones required for audio capture. A substantial portion of the meeting covered the division’s workload and schedule. Landrian outlined the agencies assigned to Division Two, including Safety, Fish and Game, Transportation, Education, the Lottery Commission, Police Standards and Training, the University System, and the Community College System. He explained the different fund types the division will handle, especially Education Trust Fund, Highway Fund, and Fish and Game Fund, and reviewed reference materials distributed to members, including agency budget requests, prior recommendation tracking sheets, and surplus statements. He emphasized that the agency budget requests and related handouts are available online and useful for members to review before budget work begins. Members discussed the compressed timeline for the session, with a target date of March 26 for completing Division Two recommendations. Landrian said only a few bills had been referred to Finance so far, none yet to Division Two, but that more bills and amendments were expected, including many amendments to House Bill 2. He noted that the committee would need to move efficiently and frontload meetings. Representative Papich added that Fish and Game may require closer scrutiny than in prior years because of its push for direct general fund appropriations, and members also discussed the importance of getting preliminary budget documents before the governor’s budget is finalized. No votes were taken and no formal actions were reported beyond the procedural overview and distribution of materials.

Transcript Highlights:

• This is really surplus or excess funds that were accumulated in the 22, 23 biennium.
• Surplus accumulated back in 2223 when we had a historically high inflation.
• Right, but I guess your, your statement is that we don't have a structural surplus.
• We have a surplus as a result of not spending in the last two fiscal years, and I'm trying to figure
• Um, but, but your surplus is really based on what happened in, in.

Transcript Highlights:

• Right, but I guess your statement is that we don't have a structural surplus, we have a surplus as a.
• I often hear, you know, the surplus is because we're over collecting property taxes, but.
• But is it accurate to say that surplus is mainly driven by sales tax, severance tax?
• But your surplus is really based on what happened in. in and coming out of the pandemic.
• Um, because compression is distributed equally across all value on the tax roll, so.

Keywords: 1184, house, all

Transcript Highlights:

• This is called Schedule Two of the surplus statement.
• But if I go up one distribution cap.
• Fund meals and rooms distribution cap.
• Uh again uh most of the changes surplus.
• You can see the senate distribution.

Keywords: 1191, senate, all

Summary: The Legislative Budget Assistant staff presented an overview of the Senate changes to the House-passed budget, focusing on revenue estimates, appropriations, and ending balances across the general fund and education trust fund. The presentation emphasized that the Senate’s budget reflected higher revenue assumptions than the House, driven in part by updated April revenue figures, changes to business, tobacco, and real estate transfer tax splits, and different assumptions about video lottery terminal revenue. The Senate also adjusted lapse estimates upward, especially for HHS, after receiving updated information that lapses could be much larger than originally assumed. The presenter walked through the major differences in the surplus statements for fiscal years 2025 through 2027. Compared with the House, the Senate budget generally showed higher revenues, lower or different appropriations in some areas, and larger balances carried forward, including a larger education trust fund balance and a different rainy day fund transfer. The Senate’s approach also changed several policy assumptions, such as maintaining liquor revenue dedication, removing the House’s meals-and-rooms distribution cap, changing the treatment of unique revenue, and altering the process for meeting a targeted revenue amount by giving the governor more flexibility. On the appropriations side, the Senate removed or modified several House reductions and added funding or adjustments in areas including the judicial branch, corrections, HHS, the Human Rights Commission, and certain settlement costs. The presenter also highlighted Senate changes in House Bill 2 and related budget provisions, including a new arts tax credit, a nursing home bed fee, changes to Medicaid premium assumptions, and differences in how motor vehicle inspection repeal and BLT-related revenue are handled. No votes were taken in the portion shown; the discussion was informational and comparative, aimed at explaining the Senate budget changes before conference committee negotiations.

Transcript Highlights:

• So that there's a surplus appropriation.
• cap in the event that there's a surplus cap in the event that there's a surplus which<00:11:00.720
• <00:12:39.839> and adjustment come first in a surplus and adjustment come first in a surplus
• <00:13:40.959> and intentions if o if there's a surplus and intentions if o if there's a surplus
• look at the surplus? look at the surplus?

Keywords: 1187, senate, all

Transcript Highlights:

• So we could centrally centralize the town fees associated with this and then distribute them back out
• And if there was surplus to that, then we were going to recommend that surplus money, if we're collecting
• them back out to the towns distribute them back out to the towns through<00:11:34.720> the<00
• And if there was surplus to in funds.
• And if there was surplus to that,<00:12:11.920> then<00:12:12.160> we<00:12:12.320>

Keywords: 1191, senate, all

Transcript Highlights:

• We had the opportunity in the tax committee to give the surplus back. It's not our money.
• wealth to our pet projects, distributing wealth to our pet projects that we see fit.
• It didn't make the cut. surplus and they raised taxes between 10 surplus and they raised taxes between
• with distributing that money to<00:24:31.360> state<00:24:31.840> to<00:24:32.080>
• , burned through an $18 billion surplus, burned through an $18 billion surplus, raised<00:38:24.960

Keywords: 1183, house

Transcript Highlights:

• So this bill today invests those surplus fair share monies.
• So we, it's overwhelmingly the use of surplus fair share. Thank you, Mr. President.
• Any surplus will be deposited into this fund and we will have this exercise again next year.
• But with regard to that, this will zero out a surplus that was collected.
• But with regard to that, this will zero out a surplus that was collected.

Keywords: 995, all

Summary: The Senate took up Senate House No. 4010, a fiscal year 2025 supplemental appropriations bill funded largely by surplus Fair Share revenues. The Ways and Means chair described the bill as a $1.28 billion package, with major investments in education and transportation, including special education circuit breaker aid, higher education deferred maintenance, career technical education capital grants, school construction relief, high-dosage tutoring, English language learning grants, MBTA reserve replenishment and safety training, commuter rail maintenance, Chapter 90 local road aid, regional transit authority support, ferry and micro-transit funding, and a small World Cup transportation appropriation. Members from both parties generally praised the bill’s one-time, regionally balanced approach while emphasizing fiscal discipline and the limited, surplus-based funding source. The minority leader and others questioned the fund balances and the use of the education and transportation innovation and capital fund, the Student Opportunity Act trust fund, and the transitional escrow account; the chair said the bill would zero out the innovation and capital fund, leave about $430 million in the SOA trust, and about $200 million in the escrow account. Several members highlighted specific priorities. Senator Cronin and Senator Feeney strongly supported the $100 million career technical education investment, arguing it would expand vocational opportunities in comprehensive high schools and help meet workforce needs. Senator Feeney also emphasized MBTA funding, special education, local road repairs, English language learning tied to workforce needs, and World Cup preparations in Foxborough. Senator Comerford praised the bill’s regional equity, higher education maintenance funding, special education support, and transportation investments, while also noting the need for broader future work on Chapter 70 and school finance. Senator Tarr supported the bill but repeatedly stressed that the spending was a unique one-time opportunity and that the Commonwealth should preserve fiscal reserves and continue to address school funding inequities and MBTA finances more broadly. The chamber then considered numerous amendments. Amendment 1 on tariff pricing transparency was withdrawn after brief remarks, and Amendment 14, proposing a DESE study on educational outcomes for young men and boys, was rejected. Amendment 182, funding Worcester Regional Transit Authority capital expenses, was adopted. Amendment 228, adding $500,000 for Free Period to expand access to menstrual products in schools, was adopted. Amendment 257, funding Springfield Public Schools communication and safety systems, was also adopted. Other amendments, including Tarr amendments on supplemental district aid, MBTA reporting, and the Foundation Budget Review Commission, were rejected. Amendment 308 concerning MBTA Communities and Milton was withdrawn, after which Senator Driscoll began a presentation arguing Milton was being misclassified under the MBTA Communities Act and should be treated fairly under the law.

Transcript Highlights:

• Our TANF grant is $56.5 million a year, which is distributed quarterly to the state.
• It is driven by a block grant, and it is distributed.
• Some of our grants line is distributed to public schools. They bill us for services.
• Those are sanctions that the courts impose and then they are distributed to us.
• We are in the process of working through the closure of federal surplus property.

Keywords: 1204, all

Transcript Highlights:

• IN GRANT AND DONATION TRUST FUND AND 309,209,144 IN THE MEDICAL CARE TRUST FUND TO SUPPORT THE DISTRIBUTION
• USUALLY A SURPLUS IS THERE BUT IN THIS CASE IT SEEMS LIKE THE ENROLLMENT NUMBERS ARE LOWER THAN THE PROJECTIONS
• THE AGENCY IS REQUESTING THE REALIGNMENT OF THE GENERAL REVENUE AND TRUST FUND BUDGET TO PROJECT SURPLUS
• DEFICIT BASED ON THE CONFERENCE FROM MEDICAID SERVICES AND EXPENDITURES OF THE REALIGNMENT PROJECTS AS SURPLUS
• AND FOR THE DPP PROGRAM AND REGION NUMBER FIVE BASED ON THE DISTRIBUTION MODEL THE DISTRIBUTION APPROVED

Keywords: 999, senate, all

Transcript Highlights:

• So we have a healthy surplus, a very healthy surplus heading into next year, and we have a very, very
• Gavorkian and where we had no surplus.
• Gavorkian and where we had no surplus.
• Thank God we have a $6 billion surplus going forward.
• Establish this program in DEP to collect an overseas distribution of funds.

Keywords: 1146, all

Transcript Highlights:

• It's not a surplus if you haven't paid your bills yet.
• But this surplus is here now. We're here now.
• And so we've been working for months on returning the surplus to the taxpayers.
• We've known about the surplus since at least January. to the taxpayers.
• We've known about the surplus since at least January.

Keywords: 970, all

Transcript Highlights:

• And so that difference, that remainder, is something of a surplus.
• Yeah, the more you distribute today would give you more flexibility. Okay, thank you very much.
• We'll distribute for the members the budget guidelines voted on by the LFC members.
• There's no local distribution of.
• How do we push that out and spread this surplus out over time?

Transcript Highlights:

• They are distributed based on enrollment funding.
• So, if we had a $24 billion budget surplus this session, why couldn't we provide a pay raise for every
• Are you aware that we currently have a budget surplus of more than $20 billion, and last session, we
• had a surplus of more than $30 billion?
• minor change in directions as far as the composition of the committee, but the overall numbers or distribution

Bills: HB5560, HB2, HB24, HB3233, HB1397, HB2067, HB3133, HB5696, HB5680, HB2885, HB3966, HB3556, HB3595, HB144, HB26, HB2038, HB521, HB4, HB 1178, HB42, HB 1211, HB783, HB3963, HB2240, HB1690, HB 1234, HB3372, HB27, HB4211, HB2243, HB2853, HB4638, HJR7, HB 100, HB 126, HB3783, HB5138, HB2512, HB5616, HB4751, SB17, SB1637, SB1833, SB2155, SB21, SB2778, SB260, SB8, SB12, SB37, SB379, SB441, SB1566, SB2878, HB4112, HB3866, HB4749, HB2844, HB150

Keywords: groundwater, civil penalties, water conservation, drought contingency, environmental protection, public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, zoning, public notice, local government, residential development

Bills: HB5560, HB2, HB24, HB3233, HB1397, HB2067, HB3133, HB5696, HB5680, HB2885, HB3966, HB3556, HB3595, HB144, HB26, HB2038, HB521, HB4, HB 1178, HB42, HB 1211, HB783, HB3963, HB2240, HB1690, HB 1234, HB3372, HB27, HB4211, HB2243, HB2853, HB4638, HJR7, HB 100, HB 126, HB3783, HB5138, HB2512, HB5616, HB4751, SB17, SB1637, SB1833, SB2155, SB21, SB2778, SB260, SB8, SB12, SB37, SB379, SB441, SB1566, SB2878, HB4112, HB3866, HB4749, HB2844, HB150

Keywords: groundwater, civil penalties, water conservation, drought contingency, environmental protection, public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, zoning, public notice, local government, residential development

Transcript Highlights:

• December of 2022, five months after the Legislature had passed a budget with a $100 billion historic surplus
• As an example, just a few years ago, we went from a $97.5 billion surplus to a $45 billion shortfall.
• But the $98 billion surplus, we didn't pay off $20 billion. And Same question again.
• But the $98 billion surplus, we didn't pay off $20 billion.
• And 2022, when we had that big $97.5 billion surplus, was an example of that.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight heard ACA 20, the Safe for California Futures Act, a constitutional amendment to strengthen the state’s Budget Stabilization Account (rainy day fund). The authors, Assembly Members Gabriel and Valencia, said the measure would raise the reserve cap from 10% to 20% of General Fund revenues, change how reserve deposits are treated under the Gann limit so deposits would not count against the spending cap until withdrawn, and update eligible debt repayments to include items such as budget loans, Proposition 98 settle-up obligations, and unemployment insurance debt. They emphasized that the proposal was intended to protect schools and core public services and to help California better withstand revenue volatility and future downturns. Committee discussion focused heavily on the technical effects of the measure, especially its interaction with Proposition 98 and the Gann limit. LAO and Department of Finance staff explained that Prop. 98 funding would not be changed directly, that the reserve deposits would be treated as exclusions from the appropriations limit, and that withdrawals would count when spent. Members asked about current reserve levels, mandatory deposits, and whether the measure would create more room for discretionary spending; supporters argued it would simply allow the state to save more in good years, while one member expressed concern that it could function as a slush fund and expand spending opportunities. Several members cited recent budget volatility, record revenues, and the need for stronger reserves, while others stressed that the measure should be understood as a future-oriented savings reform rather than a response to this year’s budget choices. Public testimony was uniformly supportive. California Forward, Elevate California, and the California Chamber of Commerce all backed the proposal, with the Chamber noting support for the policy and highlighting the importance of addressing unemployment insurance debt for small businesses. The chair concluded by thanking the authors, staff, and witnesses, and said ACA 20 was expected to move to the Assembly floor the next day.

Transcript Highlights:

• This supplemental appropriates $11,645,266 from the unappropriated balance of general revenue surplus
• appropriation, and $5,002,392 to a new special services surplus appropriation.
• , $5,2,392 to a new special services surplus appropriation.
• This supplemental appropriates $425,000 from the unappropriated balance of general revenue surplus to
• The bill then appropriates this amount to a new capital outlay and maintenance surplus appropriation

Keywords: 994, senate, all

Summary: The Senate considered and passed a series of House bills and one constitutional resolution, with several measures receiving title amendments and some taking effect immediately or on a specified date. Early action included moving House Bill 5438, concerning the foundation allowance for instructional programs, to the foot of third-reading bills. House Bill 5441, reforming the state personnel system, was amended with a Judiciary strike-and-insert technical fix, then passed 28-6 and was set to take effect July 1, 2026. House Bill 5462 on mine subsidence insurance passed unanimously, with a title amendment adopted. House Bill 5484, creating felony offenses related to denying medical treatment to sexual offense victims, also passed unanimously with a title amendment. House Bill 5515 modernizing workers’ compensation statutes passed unanimously with a title amendment, and House Bill 5527 establishing licensure and regulation for wellness reimbursement programs passed unanimously. House Bill 5528, protecting personal residential information of certain public officials, passed unanimously with a title amendment. The most extended debate centered on House Bill 5537, an education-related bill that was amended to add a child-protection provision later referred to as “Rayleigh’s law.” The amendment would bar approval of home instruction requests in certain child abuse or neglect cases until the Department of Human Services confirms the investigation is unfounded, closed, or not substantiated, or until 10 days pass without a response. Senators argued the measure was intended to protect children and not target homeschooling. After a point of order, the chair initially ruled the amended language not germane; that ruling was challenged and ultimately overruled by a 24-7 vote, allowing the amendment to remain. The bill then passed 24-7, and a title amendment was adopted. Other measures passed with little or no opposition. House Bill 5582 removed the sunset on the TANF applicant drug-screening program and passed 28-3 after a technical committee amendment. House Bill 5687 reduced the metallurgical coal severance tax over time and adjusted oil and gas tax allocations, passing 31-3. Several supplemental appropriations also passed and were made effective from passage, including funds for Homeland Security/corrections, the Adjutant General, Health, the State Road Fund, and Tourism/Culture and History. The Senate also adopted House Joint Resolution 42, which would place on the ballot a constitutional amendment increasing the homestead exemption from $20,000 to $40,000 and allowing future changes by general law. In second reading, the Senate advanced bills on workforce training reimbursements, aerospace and advanced manufacturing incentives, portable benefit accounts, literacy and science-of-reading training, school aid formula changes, and wedding venue regulation, with amendments adopted on several of them before advancement to third reading.

Transcript Highlights:

• These non-admitted companies are also known as surplus line companies.
• Non-admitted companies are also just known as surplus line companies.
• As regulators, we view the surplus line industry really as a safety net.
• We do license surplus line brokers, and all Washington consumers must go through a licensed surplus lines
• Smaller in number, but wider in distribution all the way around Washington state.

Summary: The committee heard a work session on earthquake insurance, beginning with background from the Office of the Insurance Commissioner. OIC staff explained that earthquake and earth movement are generally excluded from standard property policies, that earthquake coverage is usually purchased through endorsements or standalone policies with high deductibles and relatively high premiums, and that surplus lines are a limited backstop market not covered by the state guarantee fund. They also described parametric insurance and captive insurance as more specialized products generally suited to commercial or governmental buyers rather than ordinary consumers. A second panel of insurance and banking experts focused on commercial earthquake exposure, especially for older buildings, collateralized loans, and potential knock-on effects to banks and consumers if a major quake caused widespread damage. Members asked about consumer impacts, mitigation incentives, inventories of vulnerable buildings, and whether legislation such as prior work on unreinforced masonry could help reduce risk. The Washington Bankers Association said earthquake insurance is expensive and that affordability is a major concern, while also noting banks participate in disaster-recovery planning and would be affected by major regional losses. No votes or formal actions were taken. The committee then received a presentation from the Washington State Institute for Public Policy on its cannabis and Initiative 502 research. WSIPP staff described the agency as a nonpartisan research institute that conducts legislative-directed studies and explained that its long-term I-502 assignment includes periodic reports leading to a final benefit-cost evaluation in 2032. Staff summarized findings from a 2023 report showing that cannabis possession convictions fell sharply after legalization, though some racial disproportionalities persisted, and that closer retail access was associated with higher reported adult cannabis use, more fatal traffic crashes involving drivers from nearby areas, and higher rates of cannabis use disorder diagnoses among Medicaid enrollees. A 2023 youth-focused report found that students attending schools near retailers were more likely to report cannabis use, had more unexcused absences, and were less likely to graduate on time. In the newest 2025 Medicaid study, staff said retail access was associated with higher probabilities of cannabis use disorder diagnoses, related hospitalizations, inpatient treatment, and co-occurring mental health diagnoses, with event-study analysis suggesting the increases appeared after retailers opened rather than before. Members asked about racial disproportionality, the meaning of cannabis use disorder diagnoses, THC and impairment, whether the findings reflected medical versus recreational use, and how the results should be interpreted in light of broader trends and data limitations. No formal committee action was taken.