Transcript Highlights:

• She gets a $35,000 payment from the other company.
• Yeah, these are payments from the defendant or the at-fault insurance party.
• The very first part you started with was on voluntary payments.
• I just want to follow up on when people actually do voluntary payments.”
• “So, yeah, with respect to voluntary payments that are made. Right.

Committee: House Insurance and Banking

Summary: The Insurance Committee first established a quorum and then went into executive session, where it voted House Bill 1615 and House Bill 2071 “do pass” with 11 ayes and no opposition on each bill, with one member present on the roll call. After returning to public session, the committee opened a hearing on House Bill 1647, sponsored by Representative Overcast, which was described as a fairness measure intended to prevent double recovery when insurance payments have already satisfied part of a claim. The sponsor and supporters said the bill was aimed at property damage claims and intercompany arbitration between insurers, though several members questioned whether the bill’s language was actually limited to property damage or instead reached broader collateral source issues and evidence rules. Committee members, especially Representatives Butts, Zimmerman, and Castile, pressed the sponsor on how the bill would work in practice, whether it would reduce a plaintiff’s recovery or instead affect insurer subrogation rights, and why arbitration was being addressed in an evidentiary statute. Supporters from the Missouri Insurance Coalition and other industry groups said the bill would clarify offset rules, preserve voluntary insurer-to-insurer arbitration, and prevent inconsistent court treatment of prior payments. Opponents, including attorney Blake Heath, argued the bill was drafted too broadly, did not stay confined to property damage, and was placed in the wrong statutory section because these issues are usually handled through insurer subrogation rather than in a lawsuit by the injured party. Additional support came from the Missouri State Medical Association, Associated Industries of Missouri, and the National Association of Mutual Insurance Companies, though some supporters also acknowledged the bill might need narrowing if the intent was property damage only. No vote was taken on House Bill 1647 during the hearing, and the committee adjourned after testimony concluded.

Transcript Highlights:

• approved payment plan.
• I have also made the payment for... So if you took over in 25, why were payments still late?
• I have also made the payment for June already, and going forward, we should have those payments made.
• So we haven't actually—and both of those payments were a property tax relief payment that was deposited
• The board has authorized the director to issue any payments less than $1,000, and any payments over $1,000

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior minutes and then received a series of audit and compliance updates. Staff reported on delinquent private water and sewer reports, delinquent 2013-2023 water reports, and several municipal accounting code noncompliance cases. Denning and Gum Springs were recommended to be removed from the 60-day clock after staff visits showed improved records, while Fargo, Lead Hill, Almy, Jericho, Haynes, Biggers, Gilmore, and Holly Grove were discussed for repeat findings involving missing audits, poor bookkeeping, unpaid or misapplied street funds, deficit balances, and other accounting deficiencies. Several of these entities were given additional time or had reports filed without objection, while others were deferred for later review. Fargo’s mayor said the town had been understaffed and was working to improve its accounting systems; the committee voted to defer the matter to the August meeting. Lead Hill’s mayor described efforts to complete overdue water audits and improve office procedures, and the committee also postponed action for 60 days. Almy’s mayor and recorder-treasurer were present, and the committee placed the town on the 60-day clock for repeat accounting issues. Biggers and Gilmore both acknowledged long-running audit problems and said they were working with auditors and the IRS; their reports were filed. Holly Grove’s treasurer said she had only recently taken the position, and that report was filed as well. The committee spent considerable time on the street-fund misuse cases for Jericho and Haynes. Jericho was found to have exceeded the statutory threshold tied to fines and costs, with staff noting the town had since become current on its repayment plan; the committee deferred the report to September. Haynes was also behind on its repayment plan for street funds, with staff saying the town had recently made up the shortfall and was current as of the meeting, but the committee still deferred the report to September. Members and staff also discussed how the speed-trap law is applied, whether certain fines and costs count toward the threshold, and the role of the prosecuting attorney in deciding whether to take further action. The committee then reviewed a special report on the Pulaski County Regional Solid Waste Management District, which had six findings involving board approval of payroll and contracts, credit card documentation, vehicle and cell phone use, competitive bidding, electronic funds controls, and unusually high advertising spending. District Director Craig Douglas said the board had delegated some authority, that receipts were missing during a temporary staffing gap, and that advertising was needed to educate the public; he also defended the sale of trailers and other equipment as a way to exit the trailer business. Several members questioned the explanations and the low resale value of equipment, but the committee ultimately deferred the report to September. The meeting also included a recognition of accounting students interning with audit staff and a final set of actions on deferred water and sewer reports: 11 were filed, seven were deferred for lack of proper responses, and a private report on Shannon Hills Water, Sewer, and Fire Department was noted as involving misappropriation by an office manager and inadequate internal controls.

Transcript Highlights:

• approved payment plan.
• with the payment plan.
• making your payments.
• making your payments.
• I have also made the payment for June already, and going forward, we should have those payments made.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• and public hospital payment programs.
• These programs provide fee-for-service supplemental payments and directed payments for physicians...
• These programs provide fee-for-service supplemental payments and directed payments for physicians and
• This program provides fee-for-service supplemental payments and directed payment program for physicians
• This program provides fee-for-service supplemental payments and directed payments for physicians and

Transcript Highlights:

• And then we kind of parcel this out to meet your payments.
• And then we kind of parcel this out to meet your payments.
• And from your uh payment plan, tranches.
• So, my understanding is that payments.
• Let me off in four installment payments.

Committee: Senate Energy and Intergovernmental Affairs

Summary: The joint committees heard House Bill 344 HD1, which would require new buildings to include electric vehicle charger-ready parking stalls. Testimony was overwhelmingly in support from the State Energy Office, Department of Accounting and General Services, the Disabilities and Communication Access Board, and others. Members asked about cost and infrastructure impacts; the State Energy Office said the added cost would likely be modest if planned from the start, but that electrical capacity remains a key challenge for expanding EV charging. The chairs proposed two amendments: extending the bill to cover on-grade parking lots and adding language for Level 1 or Level 3 charging when appropriate. After discussion, both committees voted to pass HB 344 HD1 with amendments. In the Energy and Intergovernmental Affairs committee, the chair voted aye, one member voted with reservation, and excused members were noted; the Government Operations committee also passed the measure, with one aye vote and one vote with reservations. The committees also heard House Bill 10001 HD1 SD1, relating to the Maui wildfire settlement trust fund. The Governor’s Office, Attorney General’s Office, Maui County, and the Tax Foundation testified in support. Members questioned Hawaii Electric Industries’ ability to fund its share of the settlement and whether the state should pay first or in tranches. The chair proposed amendments requiring all defendant parties to submit payment plans and proof of ability to pay, and requiring non-state defendants to fund their shares into escrow before the state releases its share. The committee adopted the amendments and passed the bill unanimously by the members present. Later, the committee deferred action on House Bill 229 HD1 until March 20 for clarification on amendments, then passed House Bill 860 HD1 with amendments addressing liability for limited resurfacing of disputed roads, and passed House Bill 1161 HD2 with amendments concerning highway fund use, formula calculations, and EV-related county fees.

Transcript Highlights:

• </c> buyers come up with a down payment. buyers come up with a down payment.
• </c> down payment can be very difficult. down payment can be very difficult. 20<00:39:57.480><c> is</
• And we wanted to get a payment in lieu And we wanted to get a payment in lieu of taxes.
• I think around the pilot payments.
• And that split was the pilot payment. payment. payment.

Transcript Highlights:

• of this quarterly payment schedule.
• Quarterly payment schedule.
• 1.8 million individual tuition payments to these schools, with an average payment period of 8.2 days
• What outstanding payments are yet to be processed.
• Ability to approve or reject that payment.

Summary: The Pre-K through 12 Budget Subcommittee met to continue reviewing how Family Empowerment Scholarship students are funded through the FEFP and the role of scholarship funding organizations. Staff gave a statutory overview of parent, SFO, and Department of Education responsibilities, including application deadlines, eligibility verification, quarterly payment timing, cross-checks to prevent duplicate funding, and the 99% district FEFP limitation for certain awards. The committee then heard demonstrations from Step Up for Students and AAA Scholarship Foundation showing their parent portals, application workflows, reimbursement systems, school enrollment/invoice processes, and marketplace tools for tuition, tutoring, and approved goods and services. Step Up reported major growth since HB 1, saying its scholarship population expanded from about 260,000 to more than 440,000 students, with application processing averaging about 10 days. It also highlighted faster tuition, provider, and reimbursement payments, multilingual support in English and Spanish, and resources such as videos and a call center. Members asked about support for Creole speakers, optional Florida ID numbers, student identifiers, marketplace pricing, tutor qualifications, background screening, and how awards differ from funded status. Step Up said it does not currently support Creole, does not do background screenings for tutors, sets no marketplace prices itself, and uses a unique internal student ID separate from the state ID. AAA demonstrated its revised software for the 2025-26 school year, including an eligibility screener, household and student application steps, messaging with staff, reimbursement requests, and administrative review and payment batching. AAA said the new system is custom-built, more transparent about award value versus available balance, and designed to better handle quarterly funding for UA students. Members questioned AAA and Step Up about student ID numbers, public-school cross-checks, fraud controls, school fee schedules, whether schools must participate, and reimbursement timing. Both organizations said they report quarterly to DOE, receive public-school cross-checks, and recover funds when students return to public school; AAA said its average reimbursement turnaround is about 14 business days, while Step Up said its reimbursement approvals have improved significantly. The committee also requested follow-up information, including one-pagers, data on income levels and demographics, and additional details on forecasting and system costs.

Transcript Highlights:

• The HESA payments are payments made at the request on or behalf of an official for a legislative, governmental
• report within 30 days of the payment being received for payments of $5,000 or more from a single source
• donor after the initial behested payment report has been submitted.
• This would also codify certain information currently on the behested payment form.
• payments, who's directing these payments, and who's benefiting from these payments, right?

Summary: The Assembly Elections Committee met on March 26, 2025, adopted its 2025-26 committee rules, and approved a five-bill consent calendar. The committee then heard several election-related measures focused on transparency, accessibility, and election administration. AB 775 (Fong) would modernize behested payment reporting by extending filing deadlines, requiring direct filing with the FPPC in most cases, and improving online public access; the FPPC chair testified in strong support, and the bill drew no opposition. AB 287 (Lackey) would require vote centers and polling places to provide accessible parking and curbside voting accommodations for voters with disabilities; Los Angeles County election officials and Disability Rights California supported the bill, while LAUSD raised concerns about parking shortages and storage costs and requested amendments. AB 331 (Pellerin) would clarify that certification of election results is a ministerial duty, address misleading ballot return envelopes, and ensure voter information guides reach incarcerated voters in a usable format; the Attorney General’s office sponsored the bill, while the Secretary of State expressed concerns about the feasibility of a state takeover of county canvassing and said it was working on a solution with the author. The committee members generally supported the bills, emphasizing transparency, voter access, and election integrity. AB 775 and AB 287 both received favorable votes after brief discussion, with members noting the importance of transparency in campaign-related reporting and accessibility for voters with disabilities. AB 331 also passed, though the Secretary of State’s office flagged implementation concerns about the proposed certification backstop and the lack of state equipment and staff to canvass ballots. The chair indicated she would continue working with the Secretary of State and other stakeholders on amendments or a workable remedy. All items ultimately passed out of committee. AB 775 was approved 5-0 and re-referred to Appropriations, AB 287 passed 6-0, and AB 331 passed 6-0 and was re-referred to Public Safety. The committee also later confirmed the votes of absent members and adjourned after all agenda items were disposed of.

Transcript Highlights:

• First, delayed payments.
• We had to stop operating this contract as the payments had been delayed.
• payment as an option.
• So it's really about finding a way to stop delaying payments to our agencies.
• One is the timeliness of payments, both advance and just timely payment as per agreement.

Summary: The joint Senate and Assembly select committee hearing focused on the challenges facing California nonprofits in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance, the impact of federal funding disruptions and tax policy changes, and the need for stronger public-private partnerships, especially in disaster response and recovery. Witnesses from community foundations, food banks, Cal OES, long-term recovery groups, CalNonprofits, and nonprofit finance organizations described funding uncertainty, delayed reimbursements, reduced indirect cost coverage, staffing strain, and the effects of climate disasters and immigration-related fear on service delivery. Testimony highlighted several policy ideas, including advance payments for state grants and contracts, prompt payment standards, sustainable indirect cost rates, contract flexibility in emergencies, streamlined registration and reporting, and a possible new Office of Nonprofit Empowerment to serve as a central point of contact and coordination within state government. Speakers also described how nonprofits and VOAD networks support wildfire response and long-term recovery, but noted that recovery groups often lack stable operating funding even when they are recognized as best practice. A food bank leader described federal food aid cuts and disruptions to deliveries, while other witnesses stressed that nonprofits are increasingly forced to use reserves, loans, or service reductions to manage cash flow gaps. Committee members generally expressed support for the sector and asked how the state could better partner with nonprofits during both disasters and budget crises. Several members raised the possibility of incremental steps if full legislative changes are not immediately feasible, and witnesses suggested pilots, better sharing of best practices, and stronger state leadership on payment timelines. Public commenters echoed the need for better contracting practices, support for community-based organizations, and attention to nonprofit worker compensation and protections. No formal votes or committee actions were taken in the hearing, which concluded with adjournment.

Transcript Highlights:

• Upfront capital through advance payments for state grants and contracts, prompt payments for nonprofits
• First, delayed payments.
• We had to stop operating this contract as the payments had been delayed.
• advance payment as an option.
• So one is the timeliness of payments, both advance and just timely payment as per agreement.

Summary: The joint Senate and Assembly Select Committee hearing focused on the nonprofit sector’s mounting challenges in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance in California, the impact of federal funding disruptions and new federal tax policy, and the need for stronger public-private coordination, especially during disasters. Witnesses and members repeatedly pointed to nonprofits as essential providers of food, housing, health, education, environmental, and emergency services, while warning that sudden funding losses are forcing layoffs, service cuts, and operational instability. Testimony from community foundations and food bank leaders described how federal cuts, delayed reimbursements, and disaster-related demand are straining nonprofits. Monica White of Food Share Ventura County said H.R. 1 and USDA food cancellations are worsening hunger needs, while immigration enforcement fears are keeping some families from seeking help. Abby Browning of Cal OES outlined how the state coordinates with nonprofits, philanthropy, and businesses through VOADs and long-term recovery groups in wildfire response. Bruce Yerman of the Camp Fire Collaborative said recovery groups are effective but lack dedicated funding, and urged flexible spending, sustainable support, and streamlined partnerships. The second half of the hearing focused on institutional reforms, including a proposed Office of Nonprofit Empowerment, advance payments, prompt payment, and higher indirect cost coverage. Jeff Green of CalNonprofits argued for a central state office to coordinate policy, technical assistance, and interagency alignment. Annie Chang of Nonprofit Finance Fund cited survey data showing widespread late payments, low cash reserves, and indirect cost rates below federal guidance. Alfredo Cruz Jr. of Community Resource Project described how reimbursement-only contracts, delayed payments, and underfunded overhead create cash-flow crises and staffing problems. Members discussed possible interim steps, including expanding advance pay, improving payment timeliness, modeling best practices, and using state leadership to spotlight nonprofit needs. The hearing ended with public comment from nonprofit, labor, and advocacy representatives, and no votes or formal actions were taken.

Transcript Highlights:

• The federal government reported an estimated $162 billion in payment errors or improper payments during
• The first is Medicaid improper payments.
• You get risk-adjusted capitated payment or a population-based payment with the risk adjustment from diagnosis
• While all fraud is an improper payment, not all improper payments are fraudulent.
• systems—who are not making improper payments...

Committee: Joint Joint Economic Committee

Keywords: artificial intelligence, waste reduction, fraud prevention, government efficiency, improper payments, data reliability, oversight

Summary: The meeting was chaired by Chairman Schweikert and involved a comprehensive discussion on how to utilize artificial intelligence (AI) for reducing waste, fraud, and improper payments within federal programs. Key witnesses, including Mr. Andrew Canarsa from the Council of the Inspectors General, provided insights on the potential of AI in enhancing government efficiency. The committee emphasized the importance of reliable data and thorough examination of AI application to avoid unintended consequences while addressing the estimated $162 billion in improper payments reported by the federal government. Concerns were raised regarding the recent firing of inspectors general and the impacts that could have on oversight and accountability processes.

Transcript Highlights:

• First, it sets clear payment timelines on private construction projects.
• What can we do because payment is a problem in the industry?
• I would disagree that payment is a widespread issue.
• for 15-day payment downstream.
• So those agreements frequently include extended payment cycles.

Committee: House Joint Committee on Rural Economic Development

Summary: The committee first met in executive session and voted several bills do pass. House Bill 2409 was approved 14-0, House Bill 2654 was approved 15-0, and House Bill 2747 was approved after adoption of a House committee amendment and substitute, also by a 14-0 vote. The committee then moved into public hearing on House Bill 1915, which would regulate payment practices in private construction contracts. Representative David Castile, the sponsor, said the bill was intended to ensure timely payment to contractors, subcontractors, and suppliers, limit abusive contract clauses, and require written notice before withholding payment. He emphasized that it was aimed at larger private projects and not owner-occupied residential work. Testimony on HB 1915 was mixed. Supporters, including electrical, mechanical, and subcontractor associations, said delayed payment is common, especially for smaller firms, and argued the bill would improve cash flow and reduce the need for liens. Opponents, including general contractors and home builders, said the bill as filed was too restrictive, especially the seven-day downstream payment deadline and the limits on withholding and termination rights, and warned it could increase costs and burden small builders. Several witnesses said they were working with the sponsor on a committee substitute to more closely mirror Missouri’s public prompt pay law and to clarify the residential exemption. The committee then heard House Bill 2151, which would raise income eligibility limits for the Fast Track Workforce Incentive Grant from $40,000 to $50,000 for single filers and from $80,000 to $100,000 for joint filers. Representative Travis Wilson said the change was meant to reflect inflation and expand access for adults changing careers, apprentices, and other eligible students. Supporters from community colleges, chambers of commerce, and workforce groups said the program is working well, is budgeted, and helps fill workforce needs; one witness cited strong completion and retention rates among recipients. No opposition was presented, and the hearing concluded with adjournment of the committee.

Transcript Highlights:

• </c><00:42:17.040><c> uh</c> have uh eliminated payment uh have uh eliminated payment uh backlogs<00:
• <c> can</c> backlogs duplicate payments requests can backlogs duplicate payments requests can now<00:
• for timely payments.
• </c><00:45:59.559><c> for</c> fal one form to request payment for fal one form to request payment for
• </c><00:47:23.640><c> process</c> payments so that's the payment process payments so that's the payment

Summary: The subcommittee met to discuss the guardian ad litem system, including appointment qualifications, training, payment, and whether any changes are needed. Roll was called, the February 25, 2025 minutes were approved, and the chair emphasized that the meeting was informational only and no vote would be taken. Representatives from the Court of Justice, including Chief Justice Deborah Henry Lambert and several family and district judges, testified about how the system has evolved since concerns raised in 2019 about overappointment and fees. Court witnesses said the judiciary responded to earlier concerns by requiring open appointment lists of trained and qualified attorneys, improving training, and increasing oversight of fee orders. They reported that statewide GAL fees have fallen from a little over $14 million in 2019 to about $12 million, even as caseloads have grown, and said the average payment works out to about $650 per case, with the statutory cap for trial-level GAL fees still set at $500 since 1986. They argued that the current local appointment model works well, especially in rural areas, and warned that moving to a DPA-style regional model would create serious scheduling and conflict problems because of overlapping dockets and related criminal cases. Judges from rural districts described shortages of available attorneys, high burnout, travel burdens, and the difficulty of finding enough counsel in smaller counties. They also said the Court of Justice cannot seek certain federal Title IV-E reimbursements, but urged the legislature to encourage the Finance and Administration Cabinet and the Cabinet for Health and Family Services to pursue that funding through an MOU. One judge noted that some appointed attorneys are effectively underpaid relative to private rates and that better compensation would help attract and retain lawyers. The discussion also covered training standards adopted after the 2019 audit. Witnesses said Rule 37 now requires initial training and four hours of multidisciplinary continuing training every two years, with topics including child development, trauma-informed care, substance use, child welfare, forensics, ethics, and communication with clients. They said the Court of Justice has offered in-person regional trainings and remote options, and that the goal is to keep qualified attorneys on the appointment lists while improving representation for children and parents in dependency, neglect, abuse, and termination-of-parental-rights cases.

Transcript Highlights:

• upper payment limit, which is the supplemental payment in the fee-for-service realm, to the supplemental
• payment in the managed... ...supplemental payment in the fee-for-service realm to the supplemental payment
• in the managed care realm, which is called a state-directed payment.
• We had a value-based payment arrangement. We had primary care case management.
• We had a value-based payment arrangement. We had primary care case management.

Committee: Senate Health and Welfare

Transcript Highlights:

• First, it sets clear payment timelines on private construction projects.
• “I would disagree that payment is a widespread issue.
• Payment continues down the chain, but there’s a disconnect currently.
• It does ask for a 30-day payment window up front from owner to G.C. and then allow for 15-day payment
• The prompt payment plan has 30 and 15? 30 and 15, yes. 30 and 15. Yes, sir.

Committees: House Economic Development , House Joint Committee on Rural Economic Development

Transcript Highlights:

• I'm going to talk a little bit about our payment error rates in a minute.
• I'm going to talk just briefly about our payment error rate.
• Those are the kinds of things that go into the payment error rate.
• We also have agency-caused payment Error rate.
• It looks at... how many improper payments were there?

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• Those are some of the five payments.
• , provider taxes, and state payments, provider taxes, and state directed<00:16:10.480><c> payments,</
• </c> have limits on state directed payments. have limits on state directed payments.
• 27:52.960><c> to</c> additional payments that states make to additional payments that states make to
• in state directed payments.

Summary: The committee met and approved the minutes from its August 27 meeting. It then received a presentation from Katherine Castanza of the National Conference of State Legislators on the Medicaid provisions in the 2025 budget reconciliation bill, referred to as HR1. She explained that the bill is estimated by CBO to save the federal government $911 billion over 10 years, with more than 20 Medicaid-specific provisions, most of the savings concentrated in five policies and largely backloaded into 2030-2034. She emphasized that the bill’s effects will vary by state, but that expansion states and hospitals are expected to be most affected, in part because of changes to eligibility, provider taxes, and state-directed payments. Castanza highlighted several new funding and flexibility provisions, including a $50 billion Rural Health Transformation Fund for 2026-2030 and a new home- and community-based services waiver option effective July 1, 2028, with $100 million in grants in fiscal year 2027. She also outlined major eligibility changes for Medicaid expansion adults: work or community engagement requirements effective January 1, 2027; twice-yearly redeterminations for the expansion population effective the same date; and new cost sharing for certain expansion adults effective October 1, 2028. She noted that Kentucky, as an expansion state, would be subject to these changes and that state agencies would face significant implementation demands, especially because federal guidance and timelines are tight. A substantial portion of the presentation focused on financing changes. Castanza described new limits on provider taxes, including a 0% safe harbor for new taxes and a phased reduction for existing taxes in expansion states beginning in 2028, while nursing facilities and intermediate care facilities are exempt from the reduction if already taxed. She also explained that state-directed payments will be capped and phased down over time, with existing arrangements grandfathered only briefly; she said Kentucky has 11 approved state-directed payments and could see significant fiscal effects. She added that the bill also bars Medicaid payments to Planned Parenthood or similarly situated providers for one year, changes immigrant eligibility rules effective October 1, 2026, lowers the federal match for certain emergency services, and expands the scope of the federal erroneous payment recoupment provision effective October 1, 2029. Throughout, she stressed that federal savings may translate into state cost shifts and that implementation timing will be critical.

Transcript Highlights:

• </c> directed payment directed payment programs<01:09:49.159><c> directed</c><01:09:49.679><c> payment
• payment gaps.
• </c> implementing the directed pay payment implementing the directed pay payment program<01:13:26.120
• </c> with their own directed payment with their own directed payment programs<01:13:44.639><c> we</c>
• </c> of the new directed payments of the new directed payments program<01:15:18.159><c> paragraph</c>

Committee: House Health Finance and Policy

Transcript Highlights:

• 6%, and the payment error rate is calculated based on the result of that quality control review.
• The payment error rate.
• Federal payment error rate, when calculating the payment error rate, does the federal take into account
• So, client error, intentional or not, is counted against us in the payment error rate.
• We intend to use our 2026 payment error rate. We are moving in the right direction.

Transcript Highlights:

• </c><00:14:56.000><c> for</c><00:14:56.959><c> uh</c> payments on behalf payments and for uh payments
• on behalf payments amount of uh payment on behalf payments for<00:15:10.800><c> uh</c><00:15:11.120>
• So on-behalf payments are payments that are reflected on a district's books but are not payments that
• So on-behalf payments are payments that are reflected on a district's books but are not payments that
• About the on-behalf payments.

Summary: The committee met with a quorum, approved the minutes from the September 17 meeting, and heard a presentation from Kentucky Department of Education staff on SEEK school funding and KDE on-behalf payments. KDE explained recent SEEK changes, including the guaranteed base per-pupil amount, attendance-based calculations, second-month and January growth, the 2022 change funding kindergarten at 100% instead of 50%, and the existing add-ons for at-risk students, exceptional children, limited English learners, home/hospital instruction, and transportation. Staff also reviewed tier one funding, noting the 2024 increase from 15% to 17.5% and explaining that eligibility depends on local tax effort and property wealth. They also described Senate Bill 6 from the 2025 session as a reporting proposal to include on-behalf costs in education spending totals. KDE staff then outlined on-behalf payments made for districts, including roughly $458 million for Teachers Retirement System contributions, $942 million for health insurance, about $12 million for technology costs, and additional SFCC debt service outside KDE’s appropriation, for a total of about $1.5 billion. Members asked how a future Senate Bill 6 would affect local contributions and whether folding on-behalf payments into SEEK would shift costs among districts. KDE and Senator Gibbons clarified that the bill was intended only as a reporting mechanism and would not change local contribution or district payments; it would simply present a broader total of state education investment. The discussion also noted that Kentucky’s reported SEEK amount alone does not capture all state education spending. Members raised questions about home and hospital instruction data, saying local concerns suggest growth in some communities even if statewide numbers appear stable. KDE said the statewide figure has been relatively consistent but offered to provide district-level trend data. Co-Chair Petrie also asked about the accuracy of SEEK projections and on-behalf calculations, referencing prior concerns from the Office of Education Accountability. KDE responded that it works with the state budget director’s office in a consensus forecasting process and has been reviewing demographic and property-assessment data, including exceptional child counts, to improve forecast accuracy.