Transcript Highlights:

• They said the next payment we'll send you will deduct $5 million.
• , whatever it happens to be, you can be making a payment for a travel voucher, you can be making a payment
• Now, we have to make a payment by date certain.
• Now we have to make a payment by date certain.
• eligibility prior to each payment.

Committee: Senate Appropriations Committee on Pre-K - 12 Education

Summary: The Senate Appropriations Committee on Pre-K-12 Education met for its first meeting of the 2025 session to hear the Auditor General’s operational audit on 2024-25 school funding accountability challenges, focused largely on the Family Empowerment Scholarship and its interaction with the FEFP. Deputy Auditor General Matthew Tracy described rapid growth in scholarship enrollment, timing mismatches between scholarship payments and public-school funding calculations, delayed membership survey processing, weak cross-check and recoupment procedures, inconsistent handling of parent survey responses, and limited documentation for withholding and returning funds. The audit said these issues contributed to funding inequities, duplicate-payment risks, and an unexpected draw on state education funds, and it recommended separating scholarship funding from the FEFP, aligning application windows with budget timing, strengthening controls and staffing, and creating clearer, documented recoupment and balance-limit processes. Committee members questioned whether current law gives the department and scholarship funding organizations enough authority and whether the system is effectively a pay-and-chase model. Several senators expressed concern about the lack of timely reconciliation, the size of the funds involved, and the absence of clear records showing how money was recovered or withheld. Adam Emerson, executive director of the Office of School Choice, said the department is working more closely with school districts and scholarship funding organizations, including pausing payments when districts identify students still enrolled in public schools, and said the office wants to improve the process. President Gates then previewed legislation he said would address the audit’s findings by funding Family Empowerment Scholarships as a separate FEFP categorical, expanding the Education Stabilization Fund, setting clearer application and acceptance deadlines, moving to monthly payments with eligibility verification before each payment, assigning student IDs for scholarship assistance, lowering SFO management fees, requiring annual audits, and requiring prompt return of audit-related funds. Public comment included a private-school attorney describing losses from unpaid scholarship amounts. Members generally supported the need for reform, with several senators saying the program should be preserved but better structured and more accountable. The committee adjourned after the discussion, with no vote taken on the legislation.

Transcript Highlights:

• </c> school would get actually get reimbursed school would get actually get reimbursed $237<03:45:08.600
• Thank you. reimbursement only for um the free meal reimbursement only for um the free meal and<03:45:
• </c><05:02:07.200><c> that</c> department uh for reimbursements that department uh for reimbursements
• </c><05:13:23.080><c> for</c> they're asking for reimbursement for they're asking for reimbursement for
• </c> it in the IEP and then can we reimburse it in the IEP and then can we reimburse for<05:15:14.160

Summary: The committee first discussed HB 443, which would change terms and vacancy language for members of a higher education commission. Members raised concerns that the bill was too narrow to address broader issues with commission membership, including expired appointments, attendance expectations, and whether the Department of Education could replace the commission’s role. Several members suggested the bill was not ready for action and favored holding it for further work, possibly through a subcommittee or work session. One member suggested that if attendance standards were added, no more than two unexcused absences should trigger removal, given the commission’s meeting schedule. The chair said he would defer action and form a small subcommittee to report back before the committee deadline. The committee then moved to HB 484, dealing with repurposing Career and Technical Education classroom space after 20 years of exclusive use. The chair explained that the bill was aimed at the Milford CTE project, where shared use of space could allow a school to repurpose part of a CTE facility while still using it for CTE-related instruction. Members discussed other possible situations around the state, including Claremont, North Conway, and Jaffrey/Rindge, and whether the bill should be limited to Milford or broadened to allow local districts more flexibility. Some members favored passing the bill now to help CTE projects move forward, while others argued for an amendment removing the requirement that the space be vacated specifically to expand the CTE program occupying it. Testimony and discussion emphasized that the Milford project had state approval but reduced funding, requiring a smaller scope and repurposing of existing space. Supporters said the bill could help preserve CTE programs while also benefiting general education space needs, and that local districts should have flexibility after 20 years. Opponents or cautious members noted that the language might not fit every district situation and asked for feedback from Director Beard and Steve Rothenberg before final action. The committee did not take a final vote in the portion provided, and instead discussed waiting for an amendment and additional input before acting.

Transcript Highlights:

• </c><00:52:54.000><c> is</c> his level of need if reimbursement is his level of need if reimbursement
• ><c> suspension,</c> These events include payment suspension, These events include payment suspension
• We need the payments to be resumed. Um, because of the uncertainty around housing is overwhelming.
• need the payments to be resumed.<01:20:29.679><c> Um</c> resumed.
• The payments are not resumed.

Bills: HF3174 , HF3800

Committee: House Human Services Finance and Policy

Transcript Highlights:

• And this limits the reduction in bus depreciation payments for the grants and rebates to the 2025-26
• the reduction, and normal payments would resume thereafter.
• This requires adjustments to districts' depreciation reimbursement payments for federal grants and rebates
• and may not reduce a depreciation payment for a school year below zero.
• it's property tax or whether they pay payments in lieu of taxes to the county.

Summary: The House Appropriations Committee met in executive session on three bills. For Second Substitute Senate Bill 6182, staff explained it would create an abortion savings program funded by a new assessment on health carriers to support grants for abortion clinical care access. Representative Marshall offered amendments to limit grants to Washington residents, expand eligibility to IVF and fertility providers, prioritize medically underserved areas, and add a 2031 sunset; all were rejected or withdrawn. The committee then voted 18-10 to report the bill out with a do pass recommendation. For Engrossed Substitute Senate Bill 6260, staff briefed a striking amendment that would reduce savings in K-12 spending by changing local effort assistance and Running Start limits, prioritizing some transition-to-kindergarten funding, and eliminating inflation increases for National Board bonuses. Members debated a series of amendments on bus depreciation, charter school LEA payments, transition-to-kindergarten funding, and Running Start. Some amendments were adopted, including a bus depreciation change and a Running Start adjustment, while others were rejected. The committee then adopted the striker as amended and reported the bill out 17-12 with a due pass recommendation. For Substitute Senate Bill 6355, which would establish the Washington Electric Transmission Authority and related board and advisory structures, members considered amendments on rural land-use expertise, eastern Washington board representation, corridor review standards, tribal workgroup removal, and payments in lieu of taxes for transmission facilities. One amendment was withdrawn and the others were rejected except for a landowner/rural expertise amendment that passed. The committee then reported the bill out 18-11 with a due pass recommendation. At the end of the meeting, members exchanged closing remarks thanking staff and colleagues, and the committee adjourned.

Transcript Highlights:

• </c><00:08:50.040><c> partial</c><00:08:50.440><c> payments</c><00:08:50.760><c> on</c> so partial payments
• partial payments on so partial payments partial payments on invoices<00:08:52.800><c> we</c><00:08:53.279
• </c><00:09:10.360><c> so</c> able to pay those partial payments so able to pay those partial payments
• </c> existing statute around late payments existing statute around late payments and<00:10:19.880><c>
• ><c> the</c><00:10:22.040><c> um</c> and prompt payments and then the um and prompt payments and then

Summary: The committee first reconsidered House Joint Resolution 53, which concerns releasing previously appropriated funds for Kentucky State University. Kentucky State University President Kofi Aapo testified in support, describing significant enrollment growth, a balanced budget, and a $5 million fund balance since his arrival, and asking for continued support. Members praised his leadership while noting the institution still has work to do. The motion to reconsider passed, and the resolution then received favorable expression by a 9-2 vote. The committee next took up House Bill 622, a compromise bill involving the Kentucky Nonprofit Network and the Finance and Administration Cabinet. Testimony explained that the bill is intended to improve prompt payment practices for grants and contracts, including partial payments on undisputed invoice items within 30 days and a process for disputed items. The bill also included several appropriation-related corrections and adjustments, including a fix to an allocation for Elizabethtown water and sewer projects, a change in an economic development recipient, revisions to school resource officer language, and additional contingency authority for the Capitol renovation. The committee adopted a title amendment and passed the bill with favorable expression by a 10-1 vote. House Bill 775 was then discussed as a broad tax and economic development measure. The bill covers TIF districts, electronic filing for craft brewers, pipeline property tax treatment, bourbon barrel tax cleanup, staged income tax reductions, extension of the Metropolitan College incentive, tourism and lodging incentives, reauthorization of an expired TIF, taxation and licensing of cannabis-infused beverages, alternative fuels and jet fuel tax credit review, entertainment event incentives, the selling farmer tax credit, IRC conformity, data center incentives, the first audit of the Kentucky Horse Racing and Gaming Corporation, and limits on additional electronic charity gaming locations until regulations are adopted. Members raised questions about the beverage tax structure, TIF impacts, and the income tax reduction provisions; some expressed concern about making future tax cuts easier, while others supported the bill’s TIF and agriculture provisions. The bill passed with favorable expression by a 7-2 vote with two pass votes, and the committee then adjourned.

Transcript Highlights:

• Department of Veterans Affairs, and they reimburse the department. reimbursement then for that work I
• we are currently request reimbursement we are currently requesting<00:16:05.440><c> reimbursement</c
• </c><00:16:11.880><c> from</c> well so we request reimbursement from well so we request reimbursement
• reimbursement reimbursement because<00:16:50.440><c> um</c><00:16:51.240><c> you</c><00:16:51.360><c
• In other words, it just goes to the general fund. reimbursement is through the state um reimbursement

Committee: Senate Capital Investment

Transcript Highlights:

• So, it does not apply to tuition payments.
• So, it does not apply to tuition payments.
• Um, if there apply to tuition payments.
• their cost for state will reimburse their cost for until<03:29:57.840><c> they</c><03:29:58.080><c>
• </c><03:42:56.319><c> for</c> the the state is making that payment for the the state is making that payment

Committee: House Education Funding

Transcript Highlights:

• Lower reimbursement rates make it difficult to retain qualified staff.
• Lower reimbursement rates make it difficult to retain qualified staff.
• They're not being reimbursed for mileage or the gas that they put in their car.
• I skipped a car payment. I skip a light payment every month, kick the payment down the road.
• We have some reimbursement for the services that we provide.

Committee: House Budget

Transcript Highlights:

• Lower reimbursement rates make it difficult to retain qualified staff.
• They’re not being reimbursed for mileage or the gas that they put in their car.
• I skipped a car payment. I skipped a car payment.
• I skip a light payment every month, kick payment down the road.
• We have some reimbursement for the services that we provide.

Committee: House Budget

Summary: The committee first heard the State Auditor’s fiscal year 2027 budget request. Auditor Scott Fitzpatrick described rebuilding the office after staffing had fallen to a historic low, explaining that the office has grown from 92.5 to 119 FTE but still needs several years to reach full staffing, especially at the manager level. He said most of the budget is payroll, noted the office’s use of lapsing general revenue while staffing is rebuilt, and outlined requests including core operating funds, a small sports betting audit NDI, and a $290,000 increase to the CPA stipend to address recruitment and retention problems. Members also discussed the auditor’s authority to audit state agencies and subrecipients, the office’s role in performance audits, and the meaning of “E” appropriations and the auditor’s recent general revenue conditions report. The committee then moved to public testimony on House Bill 10, focusing on Department of Health and Senior Services and Department of Mental Health issues. One witness from the American Heart Association supported continued funding for cardiac emergency response planning in schools, citing AEDs, CPR training, and about 480 schools served. Another witness from the Alzheimer’s Association urged rejection of a proposed $1 million reduction to the Missouri caregiver program, arguing it supports families caring for people with dementia and helps avoid more expensive institutional care. Most of the testimony concerned proposed cuts to developmental disability services, especially day habilitation and self-directed supports (SDS). Providers, family members, and workers said the proposed reductions would force service cuts, reduce wages, and threaten community-based care that keeps people at home and out of more costly facilities. They argued the cuts would shift costs to emergency, residential, or institutional settings and asked the committee to preserve current funding levels. Several members asked questions about provider rates, the share of services delivered by private providers, and the cost difference between SDS and institutional care. The hearing ended with the chair apologizing for earlier tension, explaining the schedule, and recessing the committee to return later because of House floor obligations.

Transcript Highlights:

• For the claim payments, the same phenomenon would occur, but it would take a lot longer to materialize
• So that's the claim payments.
• Now hitting more than your mortgage payments.
• Okay, they passed their audit; they're now eligible for federal reimbursement.
• Either they got to fix their claim problem to keep their insurance rates within the payment request,

Transcript Highlights:

• They would get reimbursed for $80,000.
• Since then, FEMA got involved, and we're actually looking at receiving a reimbursement for those funds
• Well, Santa Rosa, for example, that solar array, their payback, or annual payment on that solar array
• They've also asked for smaller payments upfront and then increasing their payments.
• How does the payment work? Who's regulating the electrons? And if it fails, whose fault is it?

Committee: House Economic & Rural Development & Policy Committee

Transcript Highlights:

• <00:03:25.360><c> for</c><00:03:25.680><c> providing</c><00:03:26.159><c> clinical</c> reimbursed for
• providing clinical reimbursed for providing clinical services<00:03:27.040><c> they</c><00:03:27.280
• are reimbursed for these clinical<00:04:57.440><c> services.
• The inadequacy of health care providers comes back to reimbursement rates.
• </c> comes back to reimbursement rates. comes back to reimbursement rates. people<00:48:04.880><c> don't

Summary: The meeting opened with roll call, approval of the September 17 minutes, and an introduction of Sarah Rome to the committee. The chair also noted that the committee would stay on schedule and then moved to presentations. Representative Amy Neighbors and Taylor Williams of the Kentucky Pharmacists Association presented a refiled “pharmacy parity” proposal, formerly House Bill 3, to require Medicaid reimbursement for pharmacist clinical services already authorized under current scope of practice. They said the bill would not expand Medicaid or pharmacist scope, but would align Medicaid with commercial insurance, improve access and outcomes, and likely save money; they cited a Cabinet report under Senate Joint Resolution 26, which found similar laws in other states were producing savings or trending toward savings and would require only modest administrative updates. No member questions were raised after that presentation. The committee then heard an update on the Kentucky Colon Cancer Screening Program from Senator Stephen Meredith, Dr. Whitney Jones, Melissa Carrier, and Representative Neighbors. They described the program’s goals of increasing screening, reducing deaths through earlier detection, and preventing cancers by finding polyps, saying it has produced substantial savings and improved outcomes. Speakers emphasized Kentucky’s high colorectal cancer burden, especially in younger adults, and said the program helps uninsured and underinsured Kentuckians access stool-based screening and follow-up colonoscopies through a network of partners including the Department for Public Health, Kentucky Cancer Link, and university cancer programs. They requested an increase in funding from $500,000 to $1.25 million annually, or $2.5 million over the biennium, to expand services, fill geographic gaps, and support education and navigation. Members asked whether the colon cancer screening was already covered by Medicaid, and the presenters replied that Medicaid does cover it, but the program serves people who are not on Medicaid or who fall into a separate eligibility category based on income and insurance status. A member also clarified the requested funding increase. The committee then moved on to the next agenda item, an update from the Children’s Home of Northern Kentucky, where board member Sal Santoro and CHNK Behavioral Health leaders began a presentation describing the organization’s broader behavioral health work and its request, but the transcript cuts off before that presentation concludes or any action is taken.

Transcript Highlights:

• </c> the per people allocation is the payment the per people allocation is the payment for<05:39:22.320
• </c> call our FICA Medicare reimbursements call our FICA Medicare reimbursements from<05:43:10.798><c
• , your fringe, right, and ask for that reimbursement.
• /c><05:45:12.478><c> takes</c> for that reimbursement and then it takes for that reimbursement and then
• </c><05:45:32.718><c> for</c> quarter payment for quarter payment for 2324<05:45:36.240><c> that</c><

Summary: The House Finance Committee held an informational briefing with the University of Hawaiʻi, led by new President Wendy Hensel and Vice President for Budget and Finance Calbert Young. Hensel outlined the university system’s scope, student demographics, research activity, and campus missions, emphasizing four strategic priorities: serving Native Hawaiians and Hawaiʻi, student success, workforce development, and economic diversification through innovation and research. She highlighted the system’s enrollment, research funding, and the roles of Mānoa, Hilo, West Oʻahu, the community colleges, and specialized institutions such as JABSOM and the Cancer Center. Young then reviewed the budget request, focusing largely on making prior one-time appropriations permanent and supporting recurring needs. Items included funding for Mānoa athletics, the Hawaiʻi Institute for Marine Biology, K-12 teacher education, Pamantasan Council support, Hilo programs, Windward’s mental health technician certificate, Maui’s practical nursing bridge program, and student support positions such as financial aid and admissions counselors. He also described workforce-related requests tied to nursing expansion at Mānoa and West Oʻahu, as well as facilities support at West Oʻahu. A major portion of the testimony addressed the university’s two Kakaʻako medical facilities. Young explained that declining tobacco settlement and cigarette tax revenues are no longer sufficient to cover debt service for JABSOM and the Cancer Center, so the governor’s budget includes general fund support to supplement those obligations. He also described a regents-approved request not included in the governor’s proposal: expanding the Hawaiʻi Promise financial aid program to the four-year campuses, estimated at about $11–12 million. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• This ensures that they are reimbursed for those expenses.
• The bill also includes a provision to reimburse municipalities for the cost of administering special
• The bill also includes a provision to reimburse municipalities for the cost of administering special
• Speaker, members, this is a payment transparency bill.
• has seven days to share the general contractor's pay application and when that payment was made, at

Transcript Highlights:

• Medi-Cal reimbursement for the most complex and acute patient visit is a shocking $108.
• The Maddy EMS Fund reimburses even less for patients with no insurance. This cannot be sustained.
• Since 1987, the Maddy EMS Fund has been the only source of reimbursement for emergency physicians when
• California law authorizes counties to establish a Maddy Fund to reimburse physicians, surgeons, and hospitals
• question is not whether people will get care, but whether providers and hospitals will receive reimbursement

Summary: The committee heard AB 2575 on health care AI guardrails, with the author and supporters from the California Nurses Association and labor groups arguing that AI should support, not replace, clinical judgment. They said the bill would require basic disclosures about AI tools, protect workers from retaliation for overriding AI in good faith, and prevent developers or employers from shifting liability to frontline clinicians. Opponents including the California Medical Association, CalChamber, hospitals, and other health care organizations argued the bill would add costs, create uncertainty, and discourage useful AI applications. Committee members discussed bias in health care and accepted amendments narrowing the disclosure provisions; the bill was moved with a 7-1 vote and re-referred to Labor, Public Employment, and Retirement. AB 634 would ban the manufacture, sale, and distribution of products containing tianeptine, described by supporters as “gas station heroin.” The author and law enforcement supporters said the substance is dangerous, easily accessible, and can cause opioid-like addiction, while no opposition came forward. The committee also heard AB 1607 to extend the Maddy EMS Fund, which reimburses emergency providers for uncompensated care. Supporters said the fund is essential to keeping emergency departments staffed, especially amid expected coverage losses; an ACLU representative opposed the funding source because it relies on criminal and traffic fines. Members supported the need for the fund but raised concerns about the fairness and long-term stability of the revenue source, and the bill advanced on a 8-0 vote. AB 1906 would require coverage of at-home cervical cancer screening tests without cost sharing, and the author said the bill would improve early detection and reduce disparities, especially for rural and working Californians. Support came from Planned Parenthood, Health Access, and several health and labor organizations; insurers said they appreciated the amendments and were reviewing their position. The committee adopted amendments aligning the bill with clinical guidelines and passed it 6-0 to Appropriations. The committee also took up AB 2247, the Thrive Act, to create a pilot program for trauma and mental health services for youth affected by gun violence in four counties. Supporters described barriers survivors face in accessing counseling, while members questioned the narrow focus on gun violence, the choice of counties, documentation requirements, and whether the program should instead be housed in victim compensation. The bill passed 8-0 to Judiciary. Later, AB 2531 would expand California’s uncompensated care program so veterans denied abortion care through the federal VA system could receive coverage in California, and would add an abortion resources link for veterans. Supporters framed it as filling a gap created by federal restrictions; opponents argued state funds should not support abortion. Members noted the VA already provides many reproductive services but not this one, and the bill passed 7-0 to Military and Veterans Affairs. The committee also heard AB 1915, which would modernize restaurant facility rules and create a self-certification pathway for some equipment installations. Restaurant and business groups supported the bill as a way to reduce costly delays, while the Contractor State License Board opposed the self-certification provision over safety and inspection concerns. Members generally supported streamlining but echoed public safety concerns and indicated further work was needed.

Transcript Highlights:

• I don't think the fiscal impact for that's tremendous because, again, the reimbursement compared to the
• Is there opportunity with that small population to define something like sedation dentistry and reimburse
• It provides additional language related to the reimbursement rate.
• , you know, we were told after that time, keep seeing Medicaid patients, and we'll make sure your payment
• So what at one time, what 18 years ago, appeared to be a very favorable reimbursement rate for dental

Committee: All ALC-ADMINISTRATIVE RULES

Summary: The Administrative Rules Subcommittee of the Arkansas Legislative Council reviewed several agency rules and requests. It approved without objection an Insurance Department amendment implementing Act 261’s holding company system requirements, two State Board of Election Commissioners rules on poll watchers/provisional voting and certified election monitors, and a Treasurer of State rule removing DEI-related membership requirements to comply with Act 938. The committee also held over for a month a Department of Education request related to excluding a rule from reporting requirements so it could be discussed further with the Department of Commerce. A major portion of the meeting focused on the Department of Human Services’ request to be excluded from rulemaking for Acts 567, 568, 967, and 1025. DHS said federal CMS guidance created comparability and other issues for the Medicaid-related dental and diagnostic lab provisions, making it difficult to implement the acts as written by their effective dates. DHS outlined possible paths, including broader adult dental coverage, waivers, or splitting the dental rate increase from the special-needs cap increase. The Arkansas State Dental Association disputed DHS’s approach, arguing Act 1025 is workable, that the pediatric rate increase should move forward separately, and that DHS should continue pursuing the law rather than stop rulemaking. Committee members questioned both sides extensively about CMS correspondence, waiver timelines, fiscal impact, and whether the acts could be severed. After testimony from DHS, the Dental Association, and a public commenter, the committee adopted a motion not to exclude DHS from reporting requirements for Acts 567, 568, 967, and 1025, meaning DHS must continue the normal rulemaking/reporting process. The committee then accepted the Division of Higher Education’s report, which recommended repealing three of its 32 rules and keeping the remaining 29 in effect. It also received routine written updates on older and newer rulemaking items and filed the monthly updates without further action.

Transcript Highlights:

• Enrollment communication and education, eligibility determinations, and enforcement of non-payment—all
• ><00:05:11.919><c> of</c> determinations and enforcement of determinations and enforcement of non-payment
• All for a policy we already non-payment.
• Reimbursement<01:03:55.680><c> rates</c><01:03:55.920><c> for</c><01:03:56.160><c> Medicaid</c> Reimbursement
• </c><05:02:58.400><c> is</c> the study because of the way payment is the study because of the way payment

Committee: House Health, Human Services and Elderly Affairs

Transcript Highlights:

• So that means most of our seniors, about two-thirds of them, are making those lump sum payments.
• , they don't have a mortgage payment, but their insurance and their property taxes.
• The ones who are paying their lump sum payments, are they taking advantage of an early payment discount
• I don't know that we could do age, but we could get you some data on the timing of payment.
• You had made mention there about authorized payments from state forest timber sales.

Summary: The Select Committee on Property Taxes met for an educational session focused on how Florida funds public schools and how property taxes are assessed and levied. Dr. Jim Zengali of the Department of Revenue explained the FEFP school funding formula, noting that it is built on weighted student counts, a base student allocation, and programmatic add-ons such as transportation, exceptional student education, school safety, and mental health. He said school funding is roughly split between state general revenue and local property taxes through required local effort, with additional discretionary and capital outlay millages contributing to total school funding. He also described the Department of Revenue’s role in certifying property rolls at fair market value and reviewing them for substantial compliance, including the so-called “nuclear option” if a roll is not approved. Members asked about trends in millage rates, county-by-county funding differences, the effect of growth and enrollment changes, and how property appraisals are reviewed. Zengali said aggregate millage for school funding has declined over the last decade while revenues have still increased, and he agreed to provide additional data on county trends, parcel strata, student growth, and enrollment impacts. He also clarified that school funding is equalized so students receive similar resources regardless of county wealth, and that federal funding plays only a small role in the FEFP. Amy Baker of the Joint Legislative Office of Economic and Demographic Research then discussed existing homestead benefits. She said about half of Florida’s parcels are homestead properties, most fall in the $250,000 to $500,000 value range, and many seniors without mortgages pay property taxes in lump sums rather than through escrow. Baker explained that Florida’s homestead tax burden is middle-of-the-pack nationally and that the main benefits are Save Our Homes and portability on the differential side, plus the $25,000 homestead exemption and related exemptions on the exemption side. She said these benefits reduce taxable value substantially, with homestead properties receiving a large share of the reductions, and noted that the committee requested follow-up data on exemption usage, portability timing, senior exemptions, and county-level patterns. The final presentation, by Lizette Kelly of the Department of Revenue, covered millage rates and the TRIM process. She reviewed the history of truth-in-millage notices, required taxpayer mailings, public hearing notices, and later changes that tied local millage resets to rollback and majority-vote rates. Kelly explained the difference between proposed and adopted millage, the rollback rate, and the majority-vote rate, and described how taxing authorities include counties, cities, special districts, and MSTUs. She also outlined how county taxable value is calculated from just value through assessment differentials and exemptions, and how certain exemptions, such as the additional senior exemption, apply only to the taxing authority that adopted them. No votes were taken during the meeting, but members requested several follow-up data reports for later discussion.

Transcript Highlights:

• On page six, line 272, the governor's recommendation for no-fee transaction reimbursement to deputies
• to deputies is carried at reimbursement to deputies is carried at the<00:21:05.520><c> same</c><00:21
• reimbursement reimbursement um<00:48:18.400><c> uh</c><00:48:18.880><c> language</c><00:48:19.839><c
• </c><00:48:25.359><c> on</c><00:48:25.680><c> some</c> Safety to provide reimbursements on some Safety
• to provide reimbursements on some types<00:48:26.160><c> of</c><00:48:26.680><c> transactions</c><00

Transcript Highlights:

• meals so that we can claim for reimbursement.
• meals so that we can claim for reimbursement.
• meals so that we can claim for reimbursement.
• meals so that we can claim for reimbursement.
• They no longer have to collect meal payments.

Summary: The committee first took up House Bill 707 on the College Savings Program. Members discussed a suggested amendment from the Hawaii State Council on Developmental Disabilities to include the Hawaii ABLE Savings Program. The chair said the Department of the Attorney General advised there was no title problem, so the bill could be broadened to cover both the College Savings Program and the ABLE program. The committee also noted technical, non-substantive changes and a defective date of July 1, 3000 for further discussion. HB 707 HD1 was then voted on and the recommendation to pass with amendments was adopted unanimously by the members present, with two members excused. The committee then heard House Bill 424, which would provide free breakfast and lunch beginning the next school year to students who currently qualify for free and reduced-price meals. The Department of Education supported the measure, and testimony in favor came from teachers, public health and food security advocates, and several organizations. Supporters described students being denied meals because of unpaid balances, said school meals should not depend on family debt, and argued that the bill would reduce stigma and help hungry students learn. Committee questions focused on meal pricing, the impact of raising prices on families who pay full price, and whether portion sizes could be increased; DOE said breakfast costs less than lunch, full-price students would bear any increase, and portion sizes must follow USDA rules. Hawaiʻi Public Health Institute and Hawaiʻi Children’s Action Network said many families above the free/reduced thresholds still cannot afford meals, citing estimates that the DOE collects about $20 million a year in meal payments and that federal reimbursement totals are much larger. The committee then heard House Bill 757, the universal free school breakfast and lunch bill. DOE and the Department of Health supported it, and testimony was overwhelmingly in favor from county officials, teachers, students, food banks, advocacy groups, and community organizations. Witnesses argued that universal meals would eliminate stigma, reduce paperwork and debt collection, and ensure students do not fall through the cracks because of income cutoffs, language barriers, or administrative hurdles. Several students from Castle High School described classmates asking for food and families struggling to keep meal accounts funded, while teachers said they regularly see negative meal balance notices and hungry students. Advocates also said the bill is the better equity vehicle because it avoids means testing and reaches students who are not currently receiving meals despite needing them. The hearing on HB 757 was still ongoing at the end of the transcript, and no final vote on that bill was shown.