Transcript Highlights:

• This is a baseline forecast, a very far-looking outlook forecast.
• Additionally, this is a forecast, and forecasts do change.
• So mostly we incorporated what professional forecasters did or incorporated in their forecast.
• The rate of growth adjusted by inflation...
• That inflation is, in general, the forecast produced by professional forecasters that we are incorporating

Transcript Highlights:

• However, in the February forecast that carry forward has been adjusted slightly.
• In November, we updated the forecast to account for two interim rate adjustments that we did.
• forecast.
• </c> the forecast horizon. the forecast horizon.
• </c><00:51:30.559><c> The</c> compares forecast to forecast. The compares forecast to forecast.

Keywords: 1187, senate, all

Transcript Highlights:

• Second, forecasting is central to effective cash management.
• Second, forecasting is central to effective cash management.
• do an economic forecast.
• And then this is their oil production forecast.
• So now next we'll get into the actual revenue forecast.

Keywords: 908, all

Summary: The Leadership Division of the Budget Section approved the prior meeting minutes and then received an update from Senator Jonathan Sickler on the Cash Management Board’s interim work under House Bill 1278. He said the board has reviewed state cash, investments, and liquidity across agencies and concluded the state’s overall mix of long-term and short-term assets is appropriate, with about $35 billion in total liquid assets and investments and roughly 89% in longer-term investments. He highlighted process improvements already underway, including replacing more than 500 six-month CDs with a special-rate savings account to reduce administrative work, and said the board sees opportunities to improve forecasting, automation, and statewide coordination. Members asked about whether the CD change would increase returns, how the Legacy Fund transfer for the homestead tax relief bill affected earnings, and whether more state cash could be consolidated or better managed through BND; Sickler and BND staff said those issues are being studied and may lead to legislation for the 2027 session. Representative Nathan Toman then updated the committee on the Task Force on Government Efficiency. He said the group has focused less on cutting dollars and more on defining metrics and asking how the legislature knows whether programs are working. The task force is pushing a standard set of questions for new or expanding programs—who is affected, expected outcomes, alternatives, how success will be measured, and full funding—and OMB has agreed to require those answers in future budget requests. Members discussed possible use of dashboards, program evaluators, AI tools, and possible rule or statutory changes to require performance measurement. Toman said the task force will continue meeting with agencies such as the courts, university system, auditor, HHS, Commerce, and ITD to identify workflow bottlenecks and potential efficiencies. Phil Davis of Job Service North Dakota gave a workforce update, reporting that North Dakota’s unemployment rate is 2.5% and labor force participation is about 68.7%, both well above national performance. He described Job Service’s 15 workforce programs, including H-2A housing inspections for foreign agricultural workers, the job placement partnership program with DOCR, WOTC, and other federal and state workforce efforts. Davis said the agency served more than 11,000 individuals in 2025, operates nine workforce centers, and tracks outcomes through quarterly and annual reporting. In response to questions, he said job openings data reflect only positions in the system and may understate actual hiring needs, that child care and other assistance programs could be better tied to employment outcomes, and that the DOCR partnership has shown strong results with lower recidivism and higher earnings. He also said the H-2A inspection workload is growing quickly and additional staffing or less frequent federal inspection requirements could help. Allen Knutson then presented S&P Global’s updated revenue forecast. He said oil prices have risen sharply since the prior month’s outlook, improving the state’s near-term revenue picture, though the economy remains volatile and agriculture is facing weaker commodity prices. Based on the updated forecast, total major tax revenues for the current biennium are projected to be about $89 million above the legislative forecast, and the next biennium could be about $500 million higher, though that estimate is preliminary and may change. He also walked through an alternate oil-price scenario showing significantly higher oil and gas collections and a larger Strategic Investment Fund balance if prices remain elevated. Members asked whether another forecast should be requested once oil markets stabilize and about tribal allocation changes in the alternative scenario; Knutson said additional updates are possible through OMB and future forecast cycles.

Transcript Highlights:

• In order to get to that amount, we also adjusted the state.
• To get to that amount, we also adjusted the standard deduction.
• Is that affecting your forecast?
• Looking at the five-year forecast, he asked whether Mr.
• And that's growth over the existing revenue forecast.

Keywords: 965, house, all

Transcript Highlights:

• It's not in the forecast, but the estimated balance of the premium security plan account at the end of
• </c><00:03:53.519><c> but</c> it's not in the forecast but it's not in the forecast but the<00:03:55.120
• But why don't we forecast beyond 2025? Because the costs don't magically go away.
• <00:13:01.279><c> the</c><00:13:01.440><c> state</c> forecast the state forecast the state provides provides
• It adjusts the dates, assuming that the reinsurance program will operate in plan year 2023.

Keywords: 1187, senate, all

Summary: The committee reviewed a side-by-side comparison and fiscal analysis of Senate File 3472, a reinsurance-related bill affecting the premium security plan account, MinnesotaCare, and related health care funding. Staff explained the Senate and House versions of the bill, including how the Senate proposal extends reinsurance for five years and uses a projected $1.087 billion general fund transfer to fully fund claims and administrative costs through fiscal year 2028, while the House version conditions continuation of the program on federal approval of the state innovation waiver. The fiscal presentation also covered appropriations for MNsure, a mental health parity and substance abuse office, and House provisions for delivery reform and a public option study, along with a House transfer of $110.674 million to the health care access fund. Members debated the budget horizon and whether costs should be forecast beyond fiscal year 2025. Representative Schultz argued that the spreadsheet understated the broader fiscal impact of reinsurance and warned about future funding cliffs for MinnesotaCare and other health programs, while other members and staff noted that the state’s standard forecast ends in fiscal year 2025 and that the fiscal note only estimated reinsurance costs through the five-year extension. Supporters said reinsurance was the best available option to reduce premium increases, especially in rural areas, and some pointed to a public option as a longer-term alternative. Opponents argued reinsurance does not address underlying health care costs or deductibles and urged consideration of other reforms. House Research then walked through the policy differences. House-only provisions would change Minnesota Comprehensive Health Association board membership, require platinum plans in certain markets, expand postnatal coverage, require a prescription drug benefit in some plans, set a minimum actuarial value for MinnesotaCare, create an Office of Mental Health Parity and Substance Abuse Accountability, and direct reports on delivery reform and a public option. The shared provisions would extend the premium security program to 2027 and delay the transfer of remaining premium security plan funds to the health care access fund until 2029, with the House language again contingent on federal waiver approval. No formal vote was taken in the excerpt; the chair closed discussion after hearing no further questions and indicated members would be contacted about next steps.

Transcript Highlights:

• First, we built a flexible financial model, grounded in the legislative forecast, to forecast funding
• current policy and forecast.
• One, adjusting core share percentage and funding ceiling.
• Now, this leads to the core recommended option: adjust...
• That is on Exhibit B, the peak day forecast.

Summary: The Water Topics Overview Committee met with a quorum and received updates from the Department of Water Resources and the State Water Commission, followed by presentations from Deloitte on two legislative studies required by House Bill 1020. Director Reese Haas reviewed major project and budget updates, including the Northwest Area Water Supply and Southwest Pipeline projects, Resources Trust Fund balances, carryover spending, project prioritization, bid conditions, regional water system coverage, and department process improvements. Members also discussed how the commission prioritizes projects, maintenance expectations, and the impact of limited municipal water supply funding. No formal committee action was taken during the DWR update; the commission’s municipal funding decisions were described as pending its April 8 meeting. Deloitte then presented the cost-share policy study, which found that under current policy and forecasted revenues, North Dakota faces an estimated $1.3 billion shortfall over 14 years, with a near-term gap of about $1.8 billion through 2031. The firm outlined seven recommended options, including tighter definitions and a 25% cost share for eligible replacement projects, caps and financing strategies for the Mouse River and Red River Valley projects, aligning cost share with commission priority guidance, delaying lower-priority projects, using available lines of credit, and adjusting reimbursement timing for revolving loan funds. Committee members questioned inflation assumptions, affordability, user fees, and the use of legacy fund earnings for bonding, but no decisions were made. In the governance and finance study, Deloitte said final recommendations are still being refined, with a final report due May 29. The study examined the Southwest Pipeline, NAWS, and Red River Valley systems using governance and finance criteria such as decision authority, transparency, affordability, risk, and access to funding. For Southwest, Deloitte outlined options ranging from improved state-authority coordination to transferring ownership to the Southwest Water Authority; for NAWS, options focused on strengthening the authority’s role and potentially transitioning operations and maintenance; and for Red River, options ranged from enhanced facilitation to formal state oversight or state ownership. Members asked follow-up questions about ownership transfer, capital repayment streams, and why NAWS was not considered for transfer, and Deloitte said NAWS’s limited organizational maturity made that option less viable in the near term.

Transcript Highlights:

• their updated forecast.
• We subscribe to forecasts from Moody's as well as S&P Global, and locally we subscribe to a forecast
• Chairman, that the consensus revenue forecast forecasters... ...also projecting that we will have approximately
• To our forecast. And then finally, Mr.
• By the consensus revenue forecasters on the previous slide, we do stress testing of our forecasts.

Transcript Highlights:

• The increase is largely attributed to standard statewide adjustments.
• The decrease is primarily due to an adjustment in federal funding.
• . 8.3 million inflationary adjustment for nursing homes and hospice.
• These changes are primarily due to retirement rate adjustments and market rate adjustments.
• These changes are primarily due to the retirement rate adjustments and market rate adjustments.

Bills: HR159, HR160, HR161, HR162, HR163, HR164, HCR60, HCR61, HCR62, HCR63, HCR64, HR153, HR154, HR155, HR156, HR157, HR158, HCR57, HCR58, HCR59, SB124, SB399, SB441, SB447, SB460, HCR4, HCR47, HB59, HB74, HB159, HB175, HB330, HB364, HB414, HB458, HB525, HB568, HB628, HB786, HB909, HB1008, HB1033, HB1034, HB1041, HB1052, HB1062, HB1070, HB1079, HB1112, HB1118, HB1139, HB1151, HB1154, HB1176, HB1182, HB1196, HB1214, HB1231, HB1241, SB244, HB1, HB2, HB3, HB312, HB313, HB383, HB314, HCR3, HB983, HB1126, HR1, HR17, HCR5, HB27, HB71, HB214, HB225, HB241, HB244, HB306, HB345, HB366, HB446, HB511, HB514, HB655, HB730, HB743, HB1027, HB1037, HB1043, HB1082, HB1091, HB1096, HB1103, HB1167, HB1174, HB1175, HB1230, HB1237, HB1238, HB55, HB385, HB394, HB396, HB406, HB608, HB622, HB676, HB772, HB897, HB1030, HB1035, HB1038, HB1045, HB1049, HB1056, HB1058, HB1059, HB1092, HB1100, HB1117, HB1160, HB1161, HB1162, HB1177, HB1180, HB1189, HB1216, HB1239, HB1240, SB162, SB349, SB350, SB382, SB383, SB127, HB51, HB58, HB140, HB750, HB911, HB982, HB1010, HB151, HB180, HB192, HB193, HB310, HB635, HB690, HB961, HB1003, HB1146, HB864, HB977, HB181, HB31, HB664, HB615, HB901, HR20, HR74, HB9, HB284, HB393, HB459, HB577, HB582, HB605, HB614, HB682, HB733, HB773, HB996, HB1113, HB1234, HB1236

Keywords: occupational therapy, healthcare, medical professionals, recognition, professional day, property transfer, public records doctrine, bad faith, Louisiana State Law Institute, real estate law, Black Maternal Health Week, maternal health, racial disparities, healthcare access, culturally competent care, Louisiana, community health, motorcycle safety, awareness month, motorcyclists education

Transcript Highlights:

• For example, in the November forecast, we're seeing inflation adjustments in the disability waiver rate
• So those factors into the forecast and the cost going up.
• we're seeing inflation um forecast we're seeing inflation um adjustments<00:20:44.960><c> in</c><00:
• These are cost drivers for that we've seen in the growth in the forecast.
• </c><00:52:42.960><c> the</c> shortages by adjusting the shortages by adjusting the qualifications<00

Keywords: 1183, house

Transcript Highlights:

• ><00:32:43.440><c> we've</c><00:32:43.600><c> got</c> adjust for Medicaid enrollies, we've got adjust
• </c> forecast grab. forecast grab.
• forecast is.
• </c> what the end of session forecast is. what the end of session forecast is.
• . forecast. forecast.

Keywords: 1187, senate, all

Transcript Highlights:

• We are showing that we were a little over $5 million below forecast.
• First, we built a flexible financial model, grounded in the legislative forecast, to forecast funding
• One, adjusting core share percentage and funding ceiling. teams.
• One, adjusting core share percentage and funding ceiling.
• : adjust the reimbursement timing to protect near-term capacity.

Keywords: 908, all

Transcript Highlights:

• Trailer bills and spring finance adjustments included in the Governor's budget.
• Working capital would not decline materially throughout the forecast range.
• Inflation is a tough one for us when we're forecasting these numbers.
• That would be an adjustment.
• So is— Just because of how the federal credits work, that would be an adjustment.

Keywords: 988, house, all

Transcript Highlights:

• So the last revenue forecast was a little under $970 million for the biennium we've just closed out,
• So we had to adjust for a significant increase in the Washington College Grant caseload.
• But WIA has internally been used to accommodate any caseload forecast shifts for the college grant.
• So when we saw... ...been used to accommodate any caseload forecast shifts for the college grant.
• And then from the 2025–27 operating budget, you see an adjustment or a decrease of $500,000.

Summary: The Joint Higher Education Committee met for a work session on higher education accounting practices and financial transparency. OFM Deputy Director Sarah Rupp explained how state accounting rules and higher education reporting differ, including what data is captured in AFRS today and what will move into Workday, with universities generally reporting summary-level fund data, mandatory codes, and most balance sheet and income statement activity, but not transaction-level detail or vendor payment information. Representatives from the University of Washington and Washington State University described the complexity of their own accounting systems, the many entities and business lines they must track for audits and compliance, and the need to reconcile university-level accrual accounting with state reporting requirements. The committee also heard from the Education Research and Data Center on the public four-year finance dashboard created under Senate Bill 5512; ERDC said the dashboard is based on publicly available data, is best used to examine institutions individually rather than compare them directly, and will be updated with additional metrics in 2025 and 2026. The committee then received a presentation from the Washington Student Achievement Council on the Workforce Education Investment Account (WIA). Joel Anderson reviewed WIA’s creation under House Bill 2158, its revenue sources, and its intended uses for higher education, financial aid, and workforce development. He said recent legislation significantly increased WIA revenues and that, in the 2025–27 budget, the account is being used in new ways, including to replace general fund support for University of Washington operations and to fund a larger share of the Washington College Grant and some faculty compensation costs. Anderson said roughly 98% of current WIA appropriations go to higher education, but the share used to supplant other higher education funding has grown, and he estimated about 60% to 70% of current spending still aligns with the account’s original intent. He also described a new effort to track WIA appropriations across biennia in more detail and noted the WIA Oversight Board’s role in recommending uses of the account and monitoring outcomes. No votes were taken; the committee ended by moving into executive session for staffing issues and then adjourned.

Transcript Highlights:

• Usually we like to talk about forecasts in our presentation, but as it so happens, later this afternoon
• there is a revenue estimating conference that's going to revise the forecast, and so I left that out
• So right now it's 50 to 75, but every year that $75,000 level will get adjusted by CPI.
• So right now it's 50 to 75, but every year that 75 level will get adjusted by CPI.
• I think we have a GR forecast that's next Friday.

Summary: The Senate Committee on Finance and Tax met to hear a staff presentation on Florida property taxes. Staff Director Azar Khan gave an overview of the property tax system, including constitutional limits, January 1 assessment rules, homestead and non-homestead residential property, commercial and agricultural classifications, tangible personal property, and centrally assessed property. The presentation highlighted major exemptions and assessment caps, such as the homestead exemptions, Save Our Homes, the 10% cap for non-homestead property, and favorable treatment for agricultural/classified use land. It also reviewed long-term growth in just value and taxable value statewide, along with declining millage rates over time as taxable values have risen. Members then discussed the possibility of eliminating property taxes and the fiscal consequences of doing so. Senator Jones asked about the impact on local governments and referenced estimates that replacing property tax revenue could require roughly $43 billion; staff responded that current levied amounts are in the ballpark of more than $30 billion for non-school levies and more than $20 billion for school levies, but that the exact impact would depend on county and district budgets and collections. Senators Bernard, Passidomo, Gates, and others emphasized the need for more data on alternative revenue sources, such as sales tax increases or other combinations, and for input from counties and cities before considering broad tax changes. Chair Avila explained the presentation was intended to give members a foundation before property tax proposals are heard in committee, noting that several bills had already been filed involving homestead and tangible personal property. No bills were voted on, and no formal action was taken beyond the informational presentation. The committee then adjourned.

Transcript Highlights:

• is for 25-26, and what the new forecast is for 26-27.
• And so those forecasts for 25-26 are roughly $500 million more than the forecast we had for that fiscal
• So there's a little bit of addition to the forecast.
• And so it introduces a lot of risk to the forecast.
• And so those forecasts incorporate all of that data.

Summary: The committee took up three tax-related bills and a staff presentation on the state revenue forecast and the federal One Big Beautiful Bill Act. SB 856, by Senator DeSigley, would require online real estate listing platforms to display estimated property taxes using state-prescribed methods rather than the current owner’s taxes. Supporters from county, city, and property appraiser groups said the bill would improve transparency for homebuyers, especially first-time buyers and those facing large tax increases after a homestead cap reset. Senators discussed ensuring the estimate appears directly on listing platforms. The bill was reported favorably. The committee then considered SB 110, by Senator Arrington, which clarifies that people holding 98-year-or-longer residential leases remain eligible for the homestead exemption even if the lease ends upon death, aligning such leases with life estates for estate-planning purposes. An amendment was adopted to clarify that leases terminating at the lessee’s death are valid under current law. The Florida Bar’s Real Property, Probate, and Trust Law Section supported the bill, and Senator Gates noted its importance for long-term leaseholders on barrier islands. The amended bill was reported favorably. SB 434, by Senator Leak, would prevent property tax assessments from increasing because of improvements made to harden homes against wind damage, such as stronger roof attachments, shutters, and secondary water barriers. The sponsor said homeowners should not be penalized for resilience upgrades, and the bill was also reported favorably. Staff director Mr. Khan then reviewed the latest general revenue forecast, noting collections were running about $230 million above prior estimates through November and that the new forecast added roughly $500 million in the first budget year, with a smaller increase in the second year. He said corporate income tax was the main weakness in the forecast, due to softer collections and uncertainty around tariffs, while other sources were generally stronger. In the second half of the presentation, he explained that the federal One Big Beautiful Bill Act would significantly affect Florida’s corporate income tax base if fully conformed to, with an estimated $3.5 billion general revenue impact in fiscal year 2026-27, largely because of retroactive provisions such as bonus depreciation and research expensing. Senators and the appropriations chair discussed the budget implications, including possible ways to limit the impact through decoupling or prospective treatment. No votes were taken on the forecast presentation, and the committee adjourned after members requested to be recorded as voting in favor on SB 856 and SB 110.

Transcript Highlights:

• state match for its administrative expenses in the SNAP program, $28.8 million to LDH for the MCO adjustment
• a stronger fiscal position in fiscal year 28 because no matter what happens to the economy, RREC forecast
• These amendments make adjustments to the governor's executive budget, make means-of-finance substitutions
• Yeah, that's coming from a $30 million savings in the MFP, current MFP and in the forecast.
• Okay, so it would be adjusted at that time? Yes, ma'am. Thank you so much. Yes, ma'am.

Summary: The House Appropriations Committee met on April 13, 2026, and considered the main budget bills for fiscal year 2026-27. Members heard a broad overview of House Bill 1, the general appropriations bill, including the governor’s proposed budget, major funding items for education, workforce, corrections, health, and economic development, and a plan to use surplus funds to pay down LASERS’ unfunded liability. The committee discussed a 29-page amendment set that shifted savings from retirement and other areas into one-time expenditures, including FEMA Katrina debt, LSU, firefighter pay raises, crime victim reparations, rehabilitation services, and additional school choice support. Questions focused on the MFP per-pupil adjustment, the crime victim reparations shortfall, LSU funding, waiver slots, and whether the bill remained at a standstill overall. The committee adopted the amendments and reported HB 1 favorably as amended, making it Special Order No. 1 for April 16. The committee then took up House Bill 312, the supplemental appropriations bill, which also redirected the full $144.3 million surplus payment to LASERS and used savings from MFP, Medicaid forecast changes, and other reductions to fund statewide initiatives. Those included LED, corrections, DOTD road projects, public safety, IT modernization, school safety, firefighting equipment, community and technical college workforce programs, and DCFS shortfalls. Members raised questions about mental health funding and the retirement payment strategy; the amendments were adopted and HB 312 was reported favorably as amended and set as Special Order No. 4. House Bill 313, the funds bill, was amended to make additional deposits into the State Emergency and Response Fund, Voting Technology Fund, oil and gas regulatory funds, geological storage, reading enrichment, Imagination Library, and conservation accounts; it was reported favorably as amended and set as Special Order No. 5. House Bill 314, the revenue sharing distribution bill, received amendments inserting fiscal year 2027 distribution numbers and was reported favorably as amended and set as Special Order No. 7. The committee also advanced House Bill 383, the ancillary expenses bill, which covers self-generated, dedicated, and federal funds for agencies such as Group Benefits, Risk Management, Prison Enterprises, and Technology Services; a technical amendment updated accounting-standard references, and the bill was reported favorably as amended and set as Special Order No. 6. House Bill 983, the judiciary budget, was amended with a technical date correction and reported favorably as amended; members discussed funding for judges, staff pay, FINS, and whether pending legislation affecting Orleans Parish judges would later change the budget. House Bill 1126, the legislative branch budget, was reported favorably without amendment after brief questions about the Law Institute increase, and HCR 3, the hospital stabilization formula resolution tied to Medicaid hospital reimbursements, was reported favorably and set as Special Order No. 8. The committee also made HB 983 Special Order No. 9 and HB 1126 Special Order No. 10 for April 16, authorized technical corrections on adopted amendments, and adjourned after the chair thanked members and staff for their work.

Transcript Highlights:

• The CEC's primary responsibility with respect to reliability is load forecasting so that we're ready
• So the CEC's demand forecast is developed in collaboration.
• So picking up from Vice Chair Gunda's description of the demand forecast, I'm going to talk about how
• So the demand forecast informs both the longer-term integrated resource planning proceeding, which is
• The first is this, you know, the forecast that shows the precipitous growth... ...you know, the forecast

Summary: The committee first heard AB 1026 by Assembly Member Wilson, which would require investor-owned utilities to provide clearer front-end information and follow more consistent timelines for post-entitlement energization applications tied to housing projects. The author and supporters from the Housing Action Coalition and Mission Housing said utility delays can hold up approved housing, add costs, and create uncertainty, and they argued the bill would align utility processes with recent state efforts to streamline local permitting. PG&E and Southern California Edison opposed the bill, saying existing CPUC timelines and the ongoing energization rulemaking already address the issue, that the bill could be duplicative or premature, and that some proposed timelines were too short. The committee discussed the bill’s relationship to the CPUC’s September 2024 decision, and AB 1026 was ultimately approved on a 15-0 vote, with the consent calendar also passing. The second half of the hearing was the committee’s annual oversight hearing on electric reliability. Representatives from the CPUC, CEC, CAISO, and DWR reviewed lessons from the 2020 and 2022 heat emergencies, emphasizing that California has since added significant resources, improved planning, and created backstop programs such as the strategic reliability reserve. They said the summer 2025 outlook is cautiously optimistic, with no expected shortfalls under traditional planning conditions and a projected surplus, though wildfire and extreme heat remain risks. The agencies also described major changes in planning and operations, including more battery storage, updated resource adequacy rules, expanded transmission planning, and reforms to the interconnection queue. Members asked about data center load, Diablo Canyon’s future, the strategic reliability reserve, demand response, wildfire mitigation costs, affordability, and regional market expansion. Witnesses said data center demand is a major variable but can be managed through better forecasting, flexible service arrangements, and siting in areas with existing capacity; they also said firm clean resources remain valuable while planning continues around Diablo Canyon’s scheduled retirement. On affordability, they said the agencies try to balance reliability with least-cost procurement, and that new resources can lower market prices even as they require upfront investment. CAISO also highlighted the value of the Western Energy Imbalance Market and the planned day-ahead market, saying regional coordination improves both reliability and cost savings.

Transcript Highlights:

• forecasts, just showing that our forecast is relatively similar to the others.
• And then the aged forecast is actually forecasted to continue to decline slightly.
• This forecast is up 4%.
• And then the aged forecast is actually forecasted to continue to decline slightly.
• This forecast is up 4%. The actuals this forecast is up 4%.

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Bills: HB179, HB354, SB57, SB137, HB431, HB179, HB354, SB57, SB137, HB431

Keywords: campus chaplain, chaplain, school chaplain, volunteer chaplain, public schools, public K-12 education, public charter schools, local control, teacher support, student support services, religious volunteer, faith-based support, church-state separation, background check, sex offender registry, school volunteer, education policy, district attorney, compensation, constitutional amendment

Transcript Highlights:

• So, one, it's a scheduled predictable annual adjustment.
• </c> scheduled predictable annual adjustment. scheduled predictable annual adjustment.
• </c><00:53:55.840><c> program</c> annual freight rate adjustment program annual freight rate adjustment
• And then it's only every three years you can make these adjustments, right?
• We want to have a nice say on it, right, about this automatic rate adjustment.

Bills: HB1984, HB1593, HB2423, HB1691, HB2283, HB2386, HB1824, HB1697, HB2164, HB2165

Keywords: renewable energy, solar energy, self-certification, building permits, environmental regulations, HB1593, affordable housing, pet-inclusive housing, pet friendly housing, rental housing, affordable rental housing, HHFDC, Hawaii Housing Finance and Development Corporation, tenant pets, companion animals, dogs, cats, landlord-tenant law, security deposit, pet deposit

Summary: The committee heard testimony on HB 1984 HD2, which would require government entities issuing building permits to create a self-certification process for certain behind-the-meter rooftop solar and energy storage systems, allowing approved applicants to proceed without waiting for standard permit review. The Public Utilities Commission and DLNR offered comments, and the Hawaii Solar Energy Association, Holoholo Energy, Photon Works Engineering, Malama Solar, RevoluSun, and others testified in strong support. Supporters said the bill would reduce permitting delays, lower costs, and help meet Hawaii’s renewable energy goals while still relying on licensed engineers, electricians, and county inspections for safety. Committee members asked about risk, existing county pilot programs, and whether self-certification had been used before; witnesses said the professional liability remains with licensed signers and that current automated review systems often flag minor issues that slow projects. The committee also noted 16 additional written testimonies in support. The committee then took up HB 1593 HD1, which would require HHFDC-financed affordable rental housing projects to allow residents to own or keep common household pets. The Hawaiian Humane Society testified that the bill is a top priority because housing restrictions are a major reason pets are surrendered and because many unhoused residents with pets avoid housing that does not allow animals. In response to questions, the Humane Society said concerns about pet-related damage are overstated, suggested pet behavior screening as a safeguard, and said it would be willing to work on broader private-market pet-friendly housing policies. Members raised concerns about whether allowing pets in public housing could create problems for residents who later transition to the private market, and the witness said California has a similar law and no major negative effects had been identified. Finally, the committee heard HB 2423 HD2, which would require that by January 1, 2028, diesel fuel sold in Hawaii for on-highway vehicles contain at least 5% biodiesel by volume. The Hawaii State Energy Office offered comments, and Hawaii Transportation Association and Pacific Biodiesel Technologies testified in support. Pacific Biodiesel argued the mandate would improve energy security, stabilize fuel prices amid global supply disruptions, and support local clean-fuel production. In response to questions, the company said its nameplate capacity is 5.5 million gallons per year and it has produced over 6 million gallons annually, but much of its output is tied up in standby generator contracts that can fluctuate. Witnesses said the mandate would provide a stable market signal and could support future investment in expanded local biodiesel production, including agricultural feedstock development and a possible second refinery. No votes or final actions were taken during the portion of the meeting provided.