Transcript Highlights:

• So this graphic goes all the way back to the early 1950s until today.
• I have always believed that the best way to limit spending is the simple way.
• We're in a situation where we have played the shell game way too long.
• It cannot remain the way it is because... We have to revisit Prop 13.
• In practice, it doesn't work at all that way.

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• You learn every step of the way.
• In many ways, we invented them in California.
• We can show the way, and that's the way people, a lot of people, articulate that, which we try to do.
• And again, in a very positive, not a regulatory, top-down way, but a really positive incentive way.
• rather than a sequential way.

Transcript Highlights:

• It's just the way it works, the way of the world.
• So, I don't know if there's a way to chart that.
• It is simply the way the lease has been structured.
• But in a way, we're kind of stuck.
• If you're not, they're going to go the other way."

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• Today, we come together, clean your way and on your way, family and friends, and look for your love and
• However, the... ...in ways that previously were not possible.
• And Barona is the same way.
• And I know it doesn't feel that way to a lot of people.
• Insurance coverage any other way.

Summary: The Select Committee on Native American Affairs met on Barona tribal land to examine rising homeowners insurance costs affecting tribal communities, with opening remarks from tribal leaders and Assembly members emphasizing tribal sovereignty, the history of forced settlement in high-risk areas, and the need for the state to recognize mitigation work already being done on tribal lands. The committee heard that wildfire, drought, and other climate-driven disasters have sharply increased insurance premiums and reduced coverage options, especially for tribes located in rural or mountainous areas that were not chosen by the tribes themselves. Cal Fire Deputy Director Frank Bigelow described the state’s wildfire response and tribal engagement efforts, including tribal liaisons on incident management teams, a Southern Region Tribal Affairs Deputy Chief, cultural burning agreements, and more than $30 million in tribal wildfire resilience grants over the last three years. Members questioned why tribal communities receive only a small share of grants, whether Cal Fire should do more outreach and budget proposals for tribes, and whether mitigation work is being recognized by insurers. Bigelow said Cal Fire is working with insurers and the Insurance Institute for Business and Home Safety on mitigation standards, but acknowledged that more tribal outreach and participation are needed. Tribal chairpersons and fire chiefs testified that their communities are already investing heavily in fire protection through dedicated fire departments, fuel reduction, defensible space, prescribed burns, firebreaks, and home-hardening efforts, yet premiums remain high or coverage is denied. Barona leaders said premiums can range from $6,000 to $18,000 and urged insurers to assess properties individually rather than by broad high-risk zones. Soboba, Hamu, and Pechanga representatives described similar efforts and said grant rules, environmental review, and insurer practices can make it difficult to translate mitigation into lower rates. Several members suggested short-term state assistance or a tribal insurance mitigation fund, and the committee discussed the possibility of requiring insurers to better account for tribal mitigation and sovereignty in risk assessments.

Transcript Highlights:

• Certain schools, because of the way we do core funding, and it's just the way it's always been, then
• I mean, it's not, in a way, it's just the way of the world. Well, and I understand that.
• Would we do funding the way we do right now?
• One-way conversation anyway. I don't know.
• One-way conversation anyway. I don't know.

Committee: House Budget

Summary: The committee heard extended discussion of the chair’s House budget substitute, especially House Bill 2 for elementary and secondary education and House Bill 3 for higher education. The chair said the operating budget leaves roughly $300 million in reserve, explained several cuts and restorations, and described proposed changes to child care, including cutting enhancement payments and keeping attendance-based rather than enrollment-based subsidy payments. Representative Fogle objected to the child care cuts and the proposed language limiting the department’s move to prospective payment and enrollment-based reimbursement; State Budget Director Dan Hogg testified that the governor’s office still intended to move to payment on enrollment in May if the budget language did not block it, while prospective payment remained under review because of federal funding concerns. The chair also explained a restriction on Parents as Teachers services for children already in public pre-K, and members debated whether that would reduce duplication or improperly limit services. The chair further proposed a new competitive Title I innovation grant program funded by a reallocation of some Title I dollars, with questions raised about what services would be reduced to offset it. The bulk of the meeting focused on a major higher education funding overhaul in House Bill 3. The chair and vice chair proposed replacing the current base-plus model with an FTE-based formula that would distribute the same overall state funding according to student credit hours, with community colleges funded on a 12-hour FTE, four-year undergraduate students on a 15-hour FTE, and graduate enrollment discussed as a separate issue. They said the goal was to make funding follow students rather than institutions and to reduce long-standing disparities between schools. Several members supported the idea as overdue and more transparent, while others warned it was being done too quickly and could harm institutions with high-cost programs, research missions, or smaller enrollments. Concerns were raised about possible closures, accreditation problems, and unintended effects on workforce programs such as nursing, engineering, and technical training. The chair and vice chair said there was no intent to force consolidation, but acknowledged that some institutions would gain and others would lose under the new model. Members also questioned how the formula would treat research and doctoral funding, especially at the University of Missouri, and whether graduate programs were properly counted. The chair said some special-purpose lines were retained, but a large portion of MU’s research and doctoral funding was folded into the broader pool and redistributed through the FTE model. Several members asked for clarification on whether graduate hours were counted at nine credits, and the chair said he was not certain and would seek follow-up from staff or the department. Community college representatives were discussed as having unanimously opposed the recommendation, and the chair noted that the institutions were briefed only shortly before the hearing. No votes were taken during the exchange, and the committee appeared to be gathering testimony and concerns ahead of markup and future action on the budget bills.

Transcript Highlights:

• Go out of our way for these non-Indian people just to represent, that way they can check their boxes
• She's Tule River, by the way, too.
• Our way of... Our way of Protect what we know needs to be protected: our way of life.
• my people's way of life.
• Shall goes a long way in Ed Code.

Summary: The Select Committee on Native American Affairs held a historic hearing at Table Mountain Rancheria focused on tribal education, culture, resilience, leadership, and trust. Members and tribal leaders opened with a tribal welcome and prayer, then heard testimony from a first panel on Native students in the education system and a second panel on solutions and actions for Native students. The discussion centered on discrimination against Native students, the need for culturally grounded education, and the importance of tribal voices in state policymaking. Bella Garcia described a two-year fight with Clovis Unified over being allowed to wear tribal regalia at graduation, saying she faced racism, isolation, and repeated denials before ultimately graduating in full regalia with support from family, tribal leaders, advocates, and state officials. Morningstar Ghali spoke about her own experiences with school exclusion and her son’s mistreatment, arguing that Native students are pushed out by systems rooted in assimilation and calling for restorative justice, Native educators, culturally responsive curriculum, and stronger support services. Janet K. Bill described how tribal Head Start and later education helped her reach Stanford, law school, tribal council, and the Attorney General’s office, and emphasized that education, justice, and sovereignty are connected. Committee members asked about practical solutions, including how to build Native representation in schools and higher education, strengthen Title VI outreach, expand Native studies and restorative justice, and improve data collection. Tribal leaders urged more accountability for school districts, including consequences for educators who violate Native students’ rights, and called for stronger partnerships with tribes, better implementation of existing laws, and more Native people in decision-making roles. Several members highlighted the need to fill existing state positions, such as the Native seat on the San Joaquin River Conservancy board, and to create pipelines into teaching, leadership, and public service. No formal votes were taken; the hearing concluded with continued calls for collaboration, enforcement of existing protections, and future legislative action.

Transcript Highlights:

• They're not directly impacted by the way they themselves.
• So I would say that's the biggest way.
• So the way that the areas are structured and the way the federal government kind of does the formula,
• So the way that the areas are structured and the way the federal government kind of does the formula,
• By law, the way the areas are structured and the way the federal government does the formula, those same

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The meeting focused on Arkansas’s workforce development reorganization and a set of federal waiver requests intended to consolidate and streamline the state’s WIOA system. Commerce officials said the department has already centralized shared services, split the old workforce agency into reemployment and Arkansas Workforce Connections, and submitted a combined WIOA/Perkins state plan. They described nine waiver requests, including replacing local workforce boards with a single statewide board, creating one planning and accountability structure, allowing more flexible movement of funds across regions, easing the “last-dollar” requirement for training and supportive services, reducing required youth program elements, and allowing affiliate sites instead of mandatory comprehensive centers. Officials said the goal is to reduce administrative costs and redirect more money to training, supportive services, and employer-driven programs. Legislators raised concerns about rural representation, local employer relationships, and whether local offices would close. Commerce officials said local offices would remain open, some current staff could be rehired, and regional business councils would preserve local employer input. They said the current system is fragmented and expensive, with roughly $14 million in federal workforce funds flowing through local boards but only about $1.9 million spent on training and supportive services last year; they argued the reorganization could raise training spending to about $6 million to $7 million annually. Questions also addressed board composition, performance accountability, and how funds could be shifted between regions when needs change. The State Board of Workforce Development had approved the waiver package 11-3 before it was submitted to the U.S. Department of Labor. Members also discussed workforce access for people with disabilities, child care and transportation supports, and the role of Arkansas Launch, apprenticeships, and career and technical education. Officials said vocational rehabilitation now has better access to the state job board and that referrals and data-sharing with DHS and other partners still need improvement. Several legislators emphasized the need for training to align more closely with employer demand, especially in manufacturing, technology, health care, and rural areas. The committee also heard a brief overview of Workforce Pell, with staff explaining that the new federal short-term Pell option has narrow eligibility rules and may not fit many existing programs, including some CDL and CNA programs.

Transcript Highlights:

• I think you wrote it the way we talked.
• Is this the best way to do the money?
• And that would be that way.
• And each one of them have different ways where their mission can approach it in a different way.
• And I don't know what the good way is to define that, but the SIP is not a good way to define CTE.

Committee: Joint Higher Education Funding Review Committee

Transcript Highlights:

• another way to save money.
• And, you know, plenty could be criticized about the way the legislature does business or about the way
• way to do this.
• This bill, in a way, this amendment, in a way, if the voters pass it, will basically force changes.
• But it's the way we do it, and it's fair.

Transcript Highlights:

• So, by way of clarification, the reason why the reason why By way of clarification, the reason why this
• That is the way it was, that's the way it is in MOSERS right now, and I will say that I serve on the
• And this was not something where there was only one way to do things, but we found many ways.
• And that's the way we're going to get that money working the way it was intended.
• its way through the state system all the way to the federal government so they could just turn right

Transcript Highlights:

• and that the way that they will rule will undermine the entire... ...and that the way that they will
• They claimed that they drew it in a race-neutral way and that race was not considered in any way.
• I want to clarify what you just said by way of an answer.
• I have no way to improve upon his answer. I'm not a map drawer.
• And we should all feel some kind of way.

Transcript Highlights:

• to get out of the way?
• to get out of the way?
• So I read it the opposite way.
• It's not the way to do this.
• That’s one way of doing it.

Summary: The House convened with prayer and the Pledge of Allegiance, then approved the House Journal by roll call vote, 115-6. Members then used points of personal privilege to honor Redd Foxx for Black History Month and to remember former Mayor Frank Klipsch, followed by the introduction of a first-grade special guest page for the day. The chamber also received first readings of three bills on mental health efforts in public schools, public labor organizations, and state contracts with certain telecommunications companies, along with committee reports recommending passage of several bills. The House then debated and passed several measures. A large vehicle-inspection bill, House Committee Substitute for House Bills 1838, 1692, 1695, 1983, 2036, 2662, and 2743, drew extended debate over whether inspections improve safety or impose unnecessary costs; it passed 104-43. House Bill 1917, a Jefferson County water district bill aimed at removing a local obstacle to a long-planned development, passed 148-2. House Bill 261, as amended, was approved 109-21 to require Missouri schools and universities to adopt nondiscriminatory policies protecting Jewish students from antisemitic harassment, using the IHRA definition as a guide while stating it would not limit First Amendment rights. Members also passed House Committee Substitute for House Bill 2384, 92-61, which would limit local energy-code mandates and reduce housing construction costs, despite objections that it would preempt local control and roll back newer codes. The chamber then moved into perfection and took up House Committee Substitute for House Bill 2989, a major gaming-regulation bill intended to legalize and regulate video lottery terminals and crack down on illegal machines. Multiple amendments were adopted, including a $250-per-terminal fee dedicated to developmental disability services, local opt-out and operating-hour provisions, a shorter grace period for existing machines, property-tax language, a 21-and-over restricted area requirement, a larger warning label, and a historical funding provision for the steamboat Arabia. Debate continued on the bill and its amendments, with supporters emphasizing regulation, local control, and new revenue, and opponents warning about gambling expansion, enforcement problems, and social harms.

Transcript Highlights:

• So yes, this font is way too... small.
• It's just way too broad.
• Again, this is way too broad.
• I think that would make sense, but the way this bill is written right now is way too broad and very much
• I want you to get this, but not this way. And I think there are ways. So I appreciate.

Bills: HB304 , HB401 , HB556 , HB1475 , HB1489 , HB2259 , HB2424 , HB2773 , HB2811 , HB3323 , HB304

Committee: House Elections

Keywords: voter ID, citizenship proof, provisional ballot, election security, Texas, voting rights, deep fakes, misleading videos, election integrity, criminal offense, digital misinformation, deep fake, political manipulation, misinformation, artificial media, political influence, artificially generated media, election influence, Texas Election Code, healthcare reform

Transcript Highlights:

• You look good up there, by the way.
• you can do things the right way.
• and not the right way.
• and not the right way.
• I imagine in some ways it even feels really good, but it's the easy way, not the right way, and it's

Summary: The House convened with prayer, the Pledge of Allegiance, approval of the journal, and adoption of the special order calendar for the day. The chamber then took up House Bill 1B on immigration, along with discussion of anticipated Senate changes. The sponsor described the bill as creating a chief immigration officer housed in the Department of Agriculture, establishing an Office of State Immigration Enforcement, expanding cooperation with federal immigration authorities, increasing criminal penalties for certain offenses by unauthorized aliens, ending undocumented-student fee waivers, and providing substantial appropriations for enforcement and related programs. Members also questioned the Senate version’s proposed mandatory death penalty provision for certain capital offenses involving unauthorized aliens, as well as pretrial detention, 287(g) participation, DMV reporting requirements, and the bill’s effects on schools, teachers, social workers, and local agencies. The sponsor and supporting members repeatedly said the bill required broad cooperation with federal immigration enforcement and that existing federal law would control where conflicts arose. A major portion of the debate focused on whether the bill would allow or require immigration enforcement in schools and other sensitive settings, and whether teachers, school resource officers, and social workers could be placed in conflict with federal privacy or professional obligations. Members also raised concerns about detention based on suspected status, the standard of proof for immigration-status determinations, prison and jail impacts, workforce shortages, and the fiscal effects on counties and state agencies. The sponsor said the bill did not provide DMV funding, that the state would need to study some implementation questions, and that the appropriations included $25 million for a local law enforcement participation incentive program and up to $350 million for broader implementation and coordination. Several amendments were offered and failed. Representative Chambliss proposed protecting schools, churches, and places of worship from enforcement activity; Representative Escamani offered amendments to preserve in-state tuition for Dreamers and to grandfather currently eligible students; Representative Woodson offered a similar Dreamer-related amendment; and Representative Bartleman proposed barring local law enforcement from entering schools during school hours to detain children solely for immigration status. Supporters of these amendments argued they would protect children, preserve educational access, and prevent trauma in schools and houses of worship. The House rejected each amendment by voice vote, and the transcript ends during debate on the Bartleman school-safety amendment before final disposition is shown.

Transcript Highlights:

• The only way that...
• You’re saying this is something like the way that we have an AED, the way we’re teaching people to respond
• , the other didn’t know you can get it this way.
• It was way too out of the gate, way too much.
• In many ways, my family was fortunate.

Committee: Joint Joint Committee on Mental Health, Substance Use and Recovery

Summary: The Joint Committee on Mental Health, Substance Use and Recovery opened its first public hearing of the 2025–26 session with remarks from the Senate and House chairs outlining the committee’s priorities. They noted recent work on addiction and recovery legislation, the ongoing youth behavioral health crisis, and that members might need to leave periodically for floor votes. The chairs explained hearing procedures, including three-minute testimony limits, written testimony deadlines, and reporting deadlines for Senate and House bills. The hearing then focused on several bills related to youth mental health, overdose prevention, and psychedelic treatment research. A major portion of the hearing centered on bills to improve youth crisis response and overdose prevention. Testimony strongly supported bills to print the 988 Suicide and Crisis Lifeline on student ID cards, with speakers from mental health organizations, crisis centers, and individuals sharing personal stories of depression, suicide attempts, and the importance of making 988 as familiar as 911. Another set of bills would require schools to stock naloxone and provide overdose prevention education. Physicians, harm reduction advocates, students, and grieving family members testified that school-based Narcan access and education could save lives, reduce stigma, and help students recognize overdoses and understand Good Samaritan protections. Senator O’Connor and Tamika Perry also testified for a bill to strengthen substance use prevention education and reduce overdose abandonment, emphasizing the need to teach students about overdose risks and the legal protections for calling 911. The committee also heard testimony on a bill to authorize a pilot program for psychedelic treatment in licensed facilities. Senator Friedman and several medical and behavioral health professionals argued the proposal was a narrow, research-based approach distinct from the broader ballot question rejected in 2024. They said the bill would allow only a small number of supervised clinics to use psychedelics for conditions such as depression, PTSD, anxiety, and substance use disorders, with data reporting and Department of Public Health oversight. Supporters described it as a cautious way to study promising treatments while avoiding unsupervised or commercialized use. Finally, the committee heard support for a bill to create a special commission and five-year strategic plan for children’s behavioral health services, with testimony that the current system is fragmented, difficult for families to navigate, and strained by workforce and funding challenges. No votes or final actions were taken during the hearing; the committee primarily received testimony and questions on the bills.

Transcript Highlights:

• Funding is used by departments in a number of ways.
• Special funds collect their revenues in a lot of different ways, and so the way that the reductions can
• Special funds collect their revenues in a lot of different ways and so the way that the reductions can
• ...collect their revenues in a lot of different ways, and so the way that the reductions can impact
• So the way that AB 524 is drafted right now, it's drafted in a way that it sort of sets up an ongoing

Transcript Highlights:

• It's the only way that this process can go forward.
• So I think campus feedback by way of their president, their chief academic officer, by way of their president
• So I think campus feedback by way of their president, their chief academic officer, by way of their president
• over or way below that average FTE amount?
• Or way below that average FTE amount.

Committee: Joint Higher Education Funding Review Committee

Summary: The Higher Ed Funding Committee met to review a proposed process for identifying and addressing low-producing academic programs, then moved into discussion of draft funding formulas for the university system. Lisa Johnson of the ND University System described how other states and systems define low-producing programs, emphasizing multi-year enrollment and completion thresholds, cost and workforce review, and the role of governing boards. She reported that North Dakota institutions already review programs in varying cycles, often use shared resources and stackable credentials to keep low-enrollment programs viable, and cited recent system actions over five years: 100 programs placed on inactivation, 75 terminated, and 384 new programs created. Committee members raised concerns about workforce-critical programs, duplication, exemptions, and whether the legislature or the State Board of Higher Education should drive the process. The chair said he wanted the board to bring a detailed proposal to the June meeting and suggested the legislature may use funding leverage, including a possible holdback, to encourage the review process. The committee then heard a Legislative Council presentation on a draft funding formula for UND and NDSU. The proposal used fall census FTE enrollment, with a placeholder rate of $7,000 per undergraduate FTE and $10,500 per graduate/professional FTE, plus incentives for completions in high-demand fields and research productivity. Alex from Legislative Council explained that the formula also included separate treatment for research funding, external grants, and capital building tiers, and that the MD program at UND would remain fixed funding outside the formula. Members questioned the use of the placeholder rates, the in-demand program list, the treatment of external grants, and how the proposal compared with current appropriations. The chair noted that the formula numbers were illustrative and not final budget amounts. A second draft formula for the other nine institutions was also reviewed. It used fall census FTE with no weighted economic factor, a higher undergraduate rate of $8,750 per FTE, and completion incentives for in-demand credentials and all other credentials. Members noted that the proposal would benefit some institutions, such as Bismarck State College, while reducing funding for others, such as Mayville State, and questioned whether the same structure should apply across institutions with very different missions and sizes. Committee discussion focused on fairness, hold-harmless concerns, and whether the nine institutions should be grouped differently. The committee did not take formal action, but the chair indicated the formulas would continue to be discussed later in the meeting and in future work.

Transcript Highlights:

• </c> understand correctly, if I read, the way understand correctly, if I read, the way I<00:16:10.959
• </c> impact working with um with with ways impact working with um with with ways and<00:37:35.520><c>
• Um and way to fund our public schools.
• </c><00:51:28.880><c> of</c> Maguire that that is another way of Maguire that that is another way of
• </c><01:03:10.079><c> that</c> discrimination in in whatever way that discrimination in in whatever way

Summary: The Education Funding Committee met to consider eight bills, beginning with HB 443 on the terms of appointment for members of the Higher Education Commission. Department of Education Director Steve Applebee explained that the commission supported a language change to address a holdover issue, but members raised concerns that the bill did not solve the problem of inactive members and might not address the broader question of whether the commission should continue to exist. The committee agreed to retain HB 443 for further work and voted 18-0 to do so. The committee then voted on HB 137, which would allocate excess statewide education property tax funds for local school and municipal purposes. Supporters of ITL argued that using the statewide property tax to reduce the state’s school funding obligation could create a slippery slope and shift more burden to property taxpayers. The committee voted 15-3 to ITL the bill, with a minority report to be written. HB 237, which would prohibit the use of special education and differentiated aid funds on students not receiving special education services, was also ITL’d after members said federal law already governs how IDEA-related funds may be used and that the bill was unnecessary. That motion passed 16-0, with some members not voting because they were out for medical reasons. The committee next advanced HB 354, creating alternative certification pathways for career and technical education instructors. Members said the bill could help recruit qualified tradespeople and retirees to teach in CTE programs, and it was approved 18-0 and placed on the consent calendar. HB 491, establishing a committee to study alternative public education funding methods and reduce reliance on local property taxes, was retained for further study after members said the committee or a subcommittee could continue the work over the year; it passed 18-0. HB 656, concerning local school districts’ authority to accept federal grants, was also retained after discussion focused on transparency, grant conditions, and the need to avoid delays in services; it passed 18-0. The committee then moved on to HB 729, an appropriation for an attorney to recodify education laws, but the transcript cuts off before that bill was acted on.

Transcript Highlights:

• Our first responders... classrooms by the way of cell phones um classrooms by the way of cell phones
• </c><00:23:09.880><c> thank</c> it the New Hampshire way thank it the New Hampshire way thank you<00:
• </c> units affordable housing but the way units affordable housing but the way we're<00:28:42.799><c>
• </c> decrease in their budget but the way decrease in their budget but the way that<00:43:20.559><c>
• </c><00:47:17.400><c> to</c> I think there are uh certainly ways to I think there are uh certainly ways

Summary: The Finance Committee heard a briefing from the governor on her recommended fiscal years 2026-2027 budget. She described it as a “recalibration” that reduces general fund spending by about $150 million from the prior budget, avoids tax increases, and aims to protect vulnerable residents while supporting the economy. She said the proposal addresses a projected current-biennium deficit, cites lower-than-expected revenues and off-budget spending, and includes a hiring freeze and other spending reductions. The governor also said the budget is built on current revenue estimates developed with the Department of Revenue Administration and the state’s chief economist. Major policy areas discussed included education, public safety, health and human services, housing, and workforce development. The governor said the budget increases spending on public education and special education, expands Education Freedom Accounts to public school students, funds a cell-phone-free classroom grant program, continues the community college tuition freeze, and supports workforce training. She also highlighted investments in the Group II retirement system for first responders, Northern Border Alliance and drug interdiction efforts, child advocacy and victim services, mental health services, developmental disability services with no wait list, and a streamlined housing permitting process with a 60-day review target. Committee members raised questions about the fiscal assumptions, the impact of possible federal funding changes, the Education Freedom Account expansion, dam infrastructure funding, and workforce issues such as state employee pay and vacant positions. The governor said the budget continues funding for federal programs currently assumed, and that she would advocate for block grants and other federal flexibility. On dams, administration officials said the budget includes about $13 million in capital funding, with possible fee increases under consideration. On staffing, the governor said the budget funds the previously bargained 12% state employee increase, includes eight position reductions tied to program changes, and would allow those employees to be rehired if openings arise. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• So 3 is the only way to do it.
• Because, again, looking at the fiscal note, and I've got to go through a little more, it's way, way low
• Whole Foods was the easiest way to start.
• Let's look at this a few different ways.
• But there's lots of different ways.

Committee: House Health and Mental Health