Transcript Highlights:

• , the city must pay the remaining balance of the capital improvements plus interest at the default rate
• There's a double-A-rated transaction.
• There is a AA-rated transaction pro forma that reflects bond insurance and a AAA-rated transaction without
• less than 90%; discount not exceeding 3%; final maturity no later than December 1, 2066; interest rate
• These bonds are anticipated to be rated and will be marketed by either a preliminary limited offering

Summary: The State Bond Commission met on May 21 with a quorum present and approved the April 16 minutes. The commission then reviewed and approved a large slate of local government and public authority financing requests, including election propositions for the November ballot, water and sewer infrastructure projects, fire protection and recreation district bonds, school board financing, and several refunding transactions. Most items were found to meet technical requirements and were approved on motions by Speaker DeVillier and seconded by Senator Talbot. Among the more notable items were the East Baton Rouge City-Parish refunding bonds for the Greater Baton Rouge Airport District, the City of Kenner’s retroactive approval request tied to a convention center agreement with GMB Basketball LLC, a Louisiana Housing Corporation financing increase for the Federal City Building 10 affordable housing project, and preliminary approval for the Northwest Louisiana Finance Authority’s Petro Tower redevelopment in Shreveport. The commission also approved financing for Southern University’s Scott’s Bluff student housing project and the Crescent City Schools/Harriet Tubman Charter School project. The Crescent City Schools item prompted questions about how MFP funds are used; staff explained that lease payments would support the bonds and that MFP funds are generally split between educational expenses and facilities-related costs. The commission received six monthly cost-of-issuance reports, which required no action, and a status update on the state debt schedule. It also approved Resolution No. 2 authorizing up to $425 million in general obligation refunding bonds to refund the Series 2016 bonds and tender other outstanding bonds for savings, with pricing tentatively set for June 16 and closing for June 30. During other business, New Orleans City Council President J.P. Morel thanked the commission for its role in helping address the city’s fiscal crisis and for approving a charter amendment election item aimed at strengthening budget oversight. The meeting adjourned after no further business.

Transcript Highlights:

• For all the services that do exist, the rates of trafficking is through the roof, and missing people
• For all the services that do exist, the rates of trafficking is through the roof and missing people as
• Native Americans are trafficked at a rate that's 40%, and yet we're only 3% of the entire population.
• rates at the same...
• And they suffer PTSD rates at the same rate as combat veterans.

Summary: Sen. Manka Dhingra held a press conference focused on Washington’s ongoing efforts to support survivors of sexual assault, domestic violence, trafficking, and other gender-based violence, while warning that state victim-services funding is at risk amid budget pressures. She highlighted past legislative actions such as extending sexual-assault statutes of limitation, keeping firearms from abusers, protecting survivors from discrimination, improving civil protection orders, and addressing female genital mutilation, and said the state must continue funding trauma-informed, victim-centered services. Several advocates and service providers testified that the system is at a breaking point without restored funding. Colleen McIngles of the Children’s Justice Center said programs statewide could close if the Legislature does not restore roughly $10 million in additional victim-services funding, while Kate Garvey of KSARC said $21.38 million is needed just to maintain current services after federal VOCA cuts and staff layoffs. They argued that losing forensic interviewers, advocates, and coordinated response teams would leave survivors without support and increase harm. Legislators also discussed several bills. Sen. T’wina Nobles described SB 5169, aimed at protecting children from having to relive trauma in court. Rep. Jamila Taylor and Rep. Roger Goodman discussed HB 1591, which would address “defendant survivors” by recognizing coercion and allowing mitigation, resentencing, and vacatur in some cases. Rep. Chris Stearns and Sen. Tina Orwall discussed a bill to make court proceedings less retraumatizing for sexual-assault survivors and to address female genital mutilation, and Dhingra noted the Senate had unanimously passed the Ebony Alert bill. Rep. Lauren Davis shared her personal experience relying on victim services and said the state must fully fund both community-based and system-based advocacy. In response to a question, Dhingra said funding discussions were ongoing but emphasized the need to secure about $21.5 million for survivors and to create a more stable statutory funding mechanism.

Transcript Highlights:

• To share that we achieved a 98% favorable rating and an outstanding 4.83% rating for recommending our
• Those are the Chapter 257 rate increases.
• It's the highest rate that we've ever paid.
• It's the highest rate that we've ever paid.
• And the reconviction rate is 26% in comparison to double the rates.

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing opened with remarks from Senate Chair Robyn Kennedy and House Chair Chynah Tyler, who emphasized that the fiscal year 2026 hearing was focused on the Health and Human Services budget, asked members to keep questions budget-related, and noted that no public testimony would be taken. They also highlighted the choice of Doherty Memorial High School as the venue to showcase Worcester’s investment in career and technical education. Committee members then introduced themselves before the first panel, the Executive Office of Veterans Services and the state veterans homes, began testimony. Secretary John Santiago said the governor’s FY26 proposal would support implementation of the HERO Act, which he said is now about 95% implemented, including higher disabled veteran annuities, expanded behavioral health benefits, and other service expansions. He described efforts to reduce veteran homelessness, including nearly $20 million in ARPA-funded housing and outreach initiatives, and said the agency has delivered more than 100,000 supportive services to nearly 8,500 veterans. Leaders from the Chelsea and Holyoke veterans homes reported on staffing, quality measures, electronic medical records, and major construction projects at both facilities, including a new Chelsea campus and the new Holyoke home. Members asked about funding transfers, geographic equity in access to the homes, outreach to women veterans and veterans of color, suicide prevention, Gold Star family support, and the impact of federal uncertainty; Santiago said the homes are now licensed and certified, that the current budget is sufficient, and that the agency is expanding engagement and data collection. The second panel, the Office of the Veteran Advocate, testified that its FY26 request is about $3.3 million, up from the current $2 million, to cover staffing, a larger office, and higher technology costs. Veteran Advocate Bob Notch said the office is a new independent oversight agency created in 2022 to examine systems, coordinate with local veteran service officers, and investigate fatalities or serious harm involving veterans in state care. He said the office’s work depends on research, data, and collaboration with other agencies, and that current funding is only enough for minimum operations. In response to questions, Notch and Deputy Commissioner David O’Callaghan discussed the difficulty of tracking veteran suicides, the need for better data across agencies, and the office’s role as an oversight body rather than a direct service provider. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• And it's well below the rate of inflation. since we took office.
• They're growing at a rate that is high, but it's important.
• Wall Street's able to purchase at a cheaper rate.
• Our utilities should be able to purchase at a cheaper rate.
• Market-rate units go like this.

Committee: Joint Joint Committee on Ways and Means

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

Transcript Highlights:

• , which thus allows cities to create preferential rates.
• , which thus allows cities to create preferential rates.
• fire protection districts from the aggregate 59.0 taxing rate limit.
• By the the population of 500,000 or less to reduce its general levy rate by the levy rate of a fire protection
• I am concerned that we are not building housing at an appropriate rate.

Summary: House Finance held a bill briefing and executive session on a large set of tax and revenue measures, with staff outlining proposed substitutes and amendments for bills affecting grocery store incentives, insurance premium/B&O tax treatment, tobacco taxes, financial institutions, lodging taxes, fire district levy rules, local tax increment financing, limited equity cooperatives, tourism assessments, and sustainable aviation fuel credits. Members also heard brief summaries of bills on nonprofit assembly hall property tax exemptions and a city levy adjustment related to fire protection districts. Two bills scheduled for public hearing were not reached and may be rescheduled after House of Origin cutoff. In executive session, the committee adopted or rejected several amendments before voting bills out. HB 2297 on grocery stores in underserved communities advanced after the committee rejected an amendment to remove the property tax exemption; the bill was reported out 9-5-1. HB 2487 on insurance tax treatment advanced after the committee rejected an amendment to remove retroactivity and clarify annuity treatment; it was reported out 8-6-1. HB 2382, which raises cigarette and other tobacco taxes and changes tobacco tax structures, adopted amendments redirecting some revenue to health accounts, excluding nicotine-free vapor products, and restoring current-law treatment for modified-risk tobacco products before passing 8-6-1. HB 2451 on tax increment financing, HB 2590 on limited equity cooperatives, HB 2325 on a tourism self-supported assessment program with a tribal opt-in amendment, HB 2278 extending a lodging tax charge, HB 2224 adjusting levy rules for fire protection districts, and HB 2322 on sustainable aviation fuel tax credits all advanced, with some by voice vote. During debate, supporters generally framed the bills as targeted incentives or clarifications to support food access, wildfire mitigation, tourism promotion, housing affordability, or clean fuel investment, while opponents raised concerns about tax shifts, affordability, retroactivity, and whether dedicated revenues should instead come from the general fund. Several members noted that some measures still needed further work before floor action, especially HB 2487 and HB 2382. The committee adjourned after reporting the listed bills out with due pass recommendations.

Transcript Highlights:

• As Senator Riccelli mentioned, we have an 89% success rate recently.
• The distribution amount equals the district timber assessed value, or TAV, times the excess levy rate
• The highest levy rate in effect in the past two years would be used to calculate the distribution.
• The highest levy rate in effect in the past two years would be used to calculate the distribution.
• I expect you will hear from the industry that this will impact insurance rates.

Summary: The Ways and Means Committee held a public hearing on nine bills. Senate Bill 5872 would create the Pre-K Promise Account to receive philanthropic donations for ECAP preschool slots; supporters, including DCYF, the governor’s office, and early learning advocates, said it would help expand access to high-quality pre-K with a 10-year Ballmer Group commitment for up to 10,000 new seats annually. Senators asked how the money would flow, and staff and witnesses explained it would be governed by an MOU and deposited annually; no vote was taken. Senate Bill 5879 would eliminate two JLARC studies, one on lodging tax reporting and one on training benefits; supporters said the reports were duplicative and burdensome, while the hospitality industry warned against losing transparency, and no action was taken. Senate Bill 6047 would permanently codify various capital budget administration rules, including minor works flexibility and early learning grant changes; testimony focused on technical cleanup and on provisions affecting co-located child care and community projects, with no vote taken. Senate Bill 5988 would authorize the Department of Health to charge fees for accrediting opioid treatment programs, with support from DOH and tribal/nontribal providers who want the state to continue providing the service; no vote was taken. Senate Bill 5923 would allow Island Hospital in Skagit County to qualify as a critical access hospital, with local hospital leaders and residents supporting the measure to improve reimbursement and sustain rural care; no vote was taken. Senate Bill 5832 would raise the Lemon Law arbitration fee from $3 to $6 to fund the Attorney General’s consumer protection work, and the AG’s office, dealers, and the sponsor said the program is effective and underfunded; no vote was taken. Senate Bill 5970 would make permanent the property tax exemption for multipurpose senior citizen centers, with AARP supporting the bill as a benefit to seniors and caregivers; no vote was taken. Senate Bill 5994 would preserve timber tax distributions for school districts that recently had qualifying levies, and forest industry witnesses supported the bill while suggesting a possible amendment for state forest transfer lands; no vote was taken. Senate Bill 5949 would narrow the B&O tax exemption for insurance-related businesses so it applies only to the entity paying the insurance premiums tax, retroactive to 2019; the Department of Revenue and bill supporters argued it restores tax equity, while insurers, health plans, and business groups opposed it as retroactive, ambiguous, and likely to raise premiums. The committee heard extensive testimony on that bill, but the transcript ends with adjournment and no recorded vote or executive action.

Transcript Highlights:

• Today's Medicaid rate covers only 85% of the actual cost of care.
• Minimum wage has nearly increased. 20 percent, and Medicaid rates are frozen.
• Please restore funding and rebalance Medicaid rates to 2024 cost reports.
• When assisted Medicaid rates are frozen at 2022 rates, it directly reduces our ability to recruit, retain
• We were averaging low- to mid-70s on-track rate.

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care

Transcript Highlights:

• Today's Medicaid rate covers only 85% of the actual cost of care.
• Minimum wage has nearly increased 20%, and Medicaid rates are frozen.
• Please restore funding and rebalance Medicaid rates to 2024 cost reports.
• When assisted Medicaid rates are frozen at 2022 rates, it directly reduces our ability to recruit, retain
• We were averaging low to mid-70s on-track rate.

Summary: The House Appropriations Committee continued its public hearing on House Bill 2289, the fiscal biennial supplemental operating budget appropriations bill. The chair and vice chair explained the hearing process, limited testimony to one minute per person, and then heard extensive public comment from a wide range of advocates, local officials, service providers, and residents. No committee vote was taken during the hearing. Much of the testimony focused on opposition to proposed budget shifts involving Climate Commitment Act revenue, especially the proposed diversion of $569 million to other uses, including the Working Families Tax Credit. Environmental, public health, and local government witnesses argued those funds should remain dedicated to climate pollution reduction, wildfire resilience, clean transportation, natural climate solutions, and affordability programs. Several speakers also urged full funding for wildfire response and forest health, including the HB 1168 commitment, and opposed transfers from the Public Works Assistance Account. Other major topics included Medicaid and long-term care rates, with nursing home and assisted living providers warning that freezing or delaying rate rebasing would worsen staffing shortages and threaten access to care. Public health and health care advocates opposed cuts to foundational public health services, Apple Health expansion, and pharmacy benefit changes, while oral health advocates asked to preserve Medicaid dental funding and support Dentist Link. Testimony also supported or opposed funding for K-12 programs such as special education, the Ninth Grade Success Initiative, and homeless student stability; early learning and child care subsidies; disability services; public defense; housing and homelessness prevention; food assistance; higher education; and immigrant legal services. The committee concluded the hearing and adjourned after public testimony ended.

Transcript Highlights:

• second metric, the total expendable net assets per FTE, has that same information on a per-student rate
• And the net investment return and investment return rate show the overall returns on those investments
• There are two different rates in that tax, or actually three different rates, but two of those help pay
• into WIA: specifically, the 1.75% rate, which applies to businesses making between $1 million and $5
• rate applies to businesses bringing in over $5 million a year.

Committee: Joint Joint Higher Education Committee

Summary: The Joint Higher Education Committee met with introductions from members and then held a work session on higher education and statewide accounting practices. OFM Deputy Director Sarah Rupp explained how state and university accounting/reporting differ, including current AFRS/SAM requirements and the transition to Workday/WAM, and described what higher education data are currently included in state reporting versus what will remain excluded, such as transaction-level detail and vendor payment information. University of Washington and Washington State University officials then described the complexity of their institutions’ financial structures, including multiple campuses, auxiliary enterprises, component units, hospitals, clinics, bonds, and other reporting obligations, and how they submit summarized data to the state while maintaining more detailed local accounting systems. The Education Research and Data Center also presented the public four-year finance dashboard created under Senate Bill 5512, emphasizing that the metrics are best used to examine trends within institutions rather than direct comparisons across schools; members asked about data availability and federal reporting delays, and ERDC said it was on track to update the dashboard with newer data and additional metrics. The committee then heard 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 purpose of supporting postsecondary attainment, high-demand fields, student aid, and workforce education. He said WIA revenue has grown substantially, especially after recent tax changes, and noted that most current appropriations go to higher education, including the Washington College Grant, community and four-year institutions, and some workforce-related programs. Members asked whether WIA supports apprenticeships and trades, and Anderson said it has in some cases, though nearly all current appropriations are now within higher education. Anderson also highlighted a major policy shift in the 2025-27 budget: WIA is now being used to supplant some general-fund higher education spending, especially a large transfer for University of Washington general operations. He said this has reduced the general fund share of higher education funding and increased the share from WIA, raising concerns about whether the account is still being used as originally intended. He also described how WIA is increasingly covering Washington College Grant caseload growth and faculty compensation costs, and said WSAC is working to improve public documentation of ongoing and carry-forward appropriations. The committee did not take any substantive votes on the presentation topics and then moved toward executive session and adjournment.

Transcript Highlights:

• The exclusion amount for a veteran with a 70% disability rating is moved up to 200,000.
• /c> 150,000 for a veteran with a 70% 150,000 for a veteran with a 70% disability<00:01:54.439><c> rating
• </c><00:01:55.439><c> the</c><00:01:55.640><c> valuation</c> disability rating the valuation disability
• rating the valuation exclusions<00:01:57.280><c> have</c><00:01:57.520><c> not</c><00:01:58.119><c>
• </c><00:02:57.360><c> is</c> veteran with a 70% disability rating is veteran with a 70% disability rating

Transcript Highlights:

• . rates. rates.
• , not the fraud rate, the error rate, so the overpayment underpayment rate.
• ,</c><00:19:39.520><c> the</c> error rate, not the fraud rate, the error rate, not the fraud rate, the
• </c> error rate, so the overpayment error rate, so the overpayment underpayment<00:19:41.800><c> rate
• So anywhere and underpayment rate.

Committee: Senate Health and Human Services

Transcript Highlights:

• ><c> can</c> can and get better rates than we can can and get better rates than we can because<00:12:
• Currently, all contributions of the pension plans are fixed in statute; it's a fixed rate.
• The average rate of return has been about 14.2%.
• The average rate of return has been about 14.2%.
• The average rate of return has been about 14.2%.

Transcript Highlights:

• </c> actual uh 15th of the month filing rate actual uh 15th of the month filing rate is,<00:27:18.400
• They they have tax tax rates, right?
• </c><02:10:40.400><c> A</c> rates uh often under $10, right? A rates uh often under $10, right?
• So, as you probably know, the tax rate.
• And then we see that to the rate cut.

Committee: House Ways and Means

Transcript Highlights:

• Another reimbursement rate increases.
• </c><00:32:32.640><c> um</c><00:32:33.840><c> these</c><00:32:34.320><c> rate</c> and u the rate increases
• um these rate and u the rate increases um these rate increases<00:32:35.200><c> represent</c><00:32:
• And um um testing and assessment rates.
• And so this rate increase would address that.

Committee: Senate Finance

Transcript Highlights:

• Since 2022, PG&E has raised electric rates by 40%.
• As a result, we now pay the second highest rates in the... ...rates by 40%.
• As a result, we now pay the second highest rates in the entire country.
• The result is the highest electricity rates in the continental U.S., with rates growing four times faster
• It's 5% of the rate base.

Summary: The committee heard several bills and took action on a number of them. SB 1234 by Senator Alvarado-Gil would require fentanyl to be included in drug tests ordered by juvenile courts for parents or guardians in dependency cases; there was no opposition, a committee member confirmed it would apply to caregivers rather than children, and the bill was supported for moving forward. SB 1257 by Senator Arreguín would require the Attorney General to publish an annual public report on immigration enforcement incidents at designated safe locations such as schools, hospitals, courthouses, and places of worship; supporters from immigrant advocacy and health groups testified about fear and chilling effects in communities, while questions focused on how data would be collected and concerns were raised about sanctuary policies. SB 1176 by Senator Choi would bar foreign adversary entities from buying California agricultural land; supporters cited national security concerns, but committee members pressed on enforcement, straw buyers, and who would be responsible for identifying prohibited purchasers, and the bill was held on a 2-4 vote after debate. The committee also heard SB 1146 by Senator Gonzalez, which would require clear disclosure when AI-generated or altered images, audio, or video are used in health-related advertisements depicting health care providers. The California Medical Association and California Dental Association supported the bill, describing deepfake health ads as deceptive and harmful; it passed the committee 7-0 to Appropriations. SB 988 by Senator Grayson would regulate auto glass insurance practices by restricting assignment of benefits, requiring claim numbers and itemized estimates, and addressing steering and billing practices; supporters said it would curb fraud and stabilize premiums, while independent glass businesses worried about steering and market concentration. After discussion of consumer choice and small-business impacts, the bill passed 7-0 to Appropriations. SB 1288, presented by Senator Grayson on behalf of Senator Laird, would require financial institutions to make a good-faith effort to notify beneficiaries of non-probate assets and would reduce barriers to claiming those assets, especially for nonprofits. Nonprofit witnesses described long delays and burdensome account-opening requirements, while SIFMA and bankers opposed the bill unless amended, citing conflicts with federal and industry obligations and concerns about retroactivity and verification. The bill passed 8-0 to call. The committee also heard SB 941 by Senator Padilla, which would cap commissary markups in private immigration detention facilities at 35% above vendor cost; the Attorney General’s office and immigrant advocates supported it as a response to exploitative pricing and poor conditions, and it passed 8-0 to call. Finally, SB 909 by Senator Smallwood-Cuevas would raise and index public works contractor fees and penalties and dedicate more penalty revenue to enforcement; labor supporters said stronger funding is needed to address wage theft and backlogs, while contractors opposed the fee and penalty structure as uncapped and costly. The bill was moved forward on a vote and remained on call after committee discussion.

Transcript Highlights:

• The process includes establishing standard rates adjusted based on economic factors.
• We usually look at. establishing standard rates adjusted based on economic factors.
• and options for traditional newspaper publication using the line rate and display rates.
• We would request to raise those rates to $50,000 per project, $100,000 annually.
• Unless you wanted a report on success rate or percentage. A report on success rate or percentages.

Committee: Joint Legislative Task Force on Government Efficiency

Transcript Highlights:

• </c> We also saw a 100% recommendation rate We also saw a 100% recommendation rate from<00:13:43.120>
• So, it's poor, fair, good, very good, excellent, and cannot rate.
• </c><00:50:52.520><c> Um</c><00:50:52.840><c> so</c> excellent, and cannot rate.
• Um so excellent, and cannot rate.
• So, Madam President, I was going to ask for the ratings on the others.

Transcript Highlights:

• 50 percent of the research rate, resulting in about a $6,500 decrease in the maximum award.
• conducting their market rate survey for informing rates for the Working Connections Child Care Program
• and instead specifies that the market rate survey must achieve a provider response rate of at least
• informing future rate increases.
• , then the survey may not need to be considered valid for informing the rate increases.

Summary: The committee heard public testimony on Substitute Senate Bill 5828, which would restore and adjust Washington College Grant and College Bound Scholarship award levels for students attending private, not-for-profit four-year institutions. Staff explained the bill would set the awards at 90 percent of the regional and state college rate rather than 50 percent of the research rate, with an estimated fiscal impact of $3.3 million in fiscal year 2027 and $18.6 million over four years. Testimony was largely in support from private college presidents, students, and school counselors, who said the bill would help low-income and first-generation students and preserve access and enrollment choices; some public college student representatives said they did not oppose the bill but argued that cuts to public-school aid should be restored first. The committee also heard Substitute Senate Bill 5911, which would prohibit DCYF from using benefits or funds of youth in extended foster care as reimbursement for their cost of care beginning in 2027, while requiring support for benefit management and payee arrangements and allowing protected accounts such as ABLE accounts. Staff estimated a net fiscal impact of $608,000 in fiscal year 2027 and $2.2 million per biennium thereafter. Testimony in support said the bill would end the practice of withholding SSI and other benefits from youth in care and better support disabled youth transitioning to adulthood. Members asked questions about fiduciary responsibility and representative payee arrangements. In executive session, the committee adopted amendments and advanced several bills. It adopted Amendment Clark 350 to House Bill 2689, raising the required provider response rate for the child care market rate survey to 65 percent, and then reported the bill out with a due pass recommendation by a vote of 18-11, with two excused. It adopted Amendment H-3743.1 to Engrossed Second Substitute Senate Bill 5395 on retrospective prior authorization denials and reported that bill out unanimously. It also adopted Amendment Pool 272 to Senate Bill 5420 and reported that bill out unanimously. For Engrossed Second Substitute Senate Bill 5496, the committee adopted several amendments clarifying scope and penalties but rejected amendments that would have delayed the bill or replaced it with a study; the bill was then reported out with a due pass recommendation. The committee also heard amendment briefings on other bills, including 5981, 6026, 6160, 6184, and 6211, but deferred action on some items heard that morning.

Transcript Highlights:

• It's just that they raise the rates.
• We t typically look raising the rates.
• President, you you heard what um rates.
• And we would have 15 different rates potentially.
• </c> mean, again, like I said, these rates mean, again, like I said, these rates are<00:50:45.440><c>

Committee: Senate Labor and Technology

Summary: The committee first heard SB 2122, which would tie public service flexible spending account contribution and carryover limits to the annual IRS cafeteria plan caps. DEER supported the bill and said it would help the state keep pace with federal limits, though it suggested deleting the words “inflation/adjusted” and “for that calendar year” as unnecessary. HGA and UPW strongly supported the measure, saying state limits lag the IRS amounts and that higher caps would help employees offset rising health care costs. In response to questions, DEER said the plan has a fund balance of about $1.6 million but noted some risk if employees leave before contributing enough to cover reimbursements. The unions agreed to DEER’s suggested wording change so long as the bill still clearly required future increases to track the IRS limits. The committee then took up SB 2116, which would create a confidential process in the Attorney General’s office for anonymous complaints against public employees, with complaints forwarded to the appropriate agency and annual reporting required. DLIR and the Attorney General opposed the bill. The AG’s office said anonymous complaints cannot truly be guaranteed to remain anonymous, that existing laws already provide confidential complaint processes in specific areas, and that the AG would effectively be only a repository without meaningful authority over how complaints are handled. HGA and UPW supported the bill, saying it would begin a conversation about protecting complainants while discouraging frivolous complaints. In questions, senators raised concerns about how anonymous complaints would be investigated and whether the AG could serve as an appeal body; the AG said the proposal would likely require broader changes to existing complaint laws. The committee also heard SB 218, which would amend the amount a disbursing officer may deduct from an employee’s wages to repay indebtedness to the state. HGA and UPW supported the bill, saying it would create a more lenient repayment process for employees who were overpaid and should not have to repay large amounts in a single pay period. UPW said the bill would eliminate a provision allowing recovery of debts of $1,000 or less in one pay period, which it described as problematic for members. The Libertarian Party of Hawaii was listed in opposition, and additional comments were submitted by the state controller and the University of Hawaii Professional Assembly. Finally, the committee heard SB 2114, which would repeal the prohibition on certain exempt employees grieving suspensions or discharges and allow bargaining-unit members to grieve disciplinary actions. DHRD and the City and County of Honolulu opposed the bill, arguing exempt employees are at-will employees who serve at the pleasure of the appointing authority and already have other legal remedies for discrimination or harassment; they also said the issue is a negotiable matter under collective bargaining agreements. HGA and UPW supported the bill, saying exempt positions have increased in number and that just-cause protections would improve recruitment and retention. Senators questioned how unions would represent exempt employees and whether the bill would change the at-will nature of those positions; no vote or final action was taken on the measures in the portion of the meeting provided.

Transcript Highlights:

• So we do provide highly subsidized rates to our utilities. states?
• So, the interest rates range Yes, sir.
• So, the interest rates range from from from 0.5% to<00:32:49.279><c> 2.25%.
• </c> So we do provide highly subsidized rates So we do provide highly subsidized rates um<00:33:01.440
• </c> rates and based on overall fish health. rates and based on overall fish health.

Summary: The Capital Planning Advisory Board met with a quorum, approved the May 21 minutes, and welcomed a new executive branch member, Secretary Keith Jackson of the Justice and Public Safety Cabinet. The board also received two informational items: agency responses to prior questions and amendments made to capital plans after the last meeting. It then heard the Commonwealth Office of Technology’s report on executive branch IT capital project scoring, which reviewed 16 IT requests totaling about $330.5 million. COOT said projects were ranked through an independent panel using standardized criteria focused on feasibility, statewide alignment, readiness, impact, and risk; the CIO recommended moving an enterprise application and artificial intelligence inventory system from rank 11 to rank 4 because of its enterprise-wide impact and connection to Senate Bill 4. The Department of Military Affairs presented its capital plan, describing 43 million in projects for the current period and 13 projects totaling $65 million for 2026–2028, with most funding coming from federal sources and restricted agency funds and no general fund request in the latter period. Its projects included maintenance pool adjustments, a statewide Army master plan, the Somerset readiness center, Shelbyville and Ashland armories, a future home for the Kentucky Army National Guard band, and other facility upgrades. Members asked about the Somerset project’s cost growth and federal delay; the department said the project remains in conceptual design, is awaiting federal MILCON action, and would require a state match of about $9.8 million against $29.6 million federal funding if it is approved. Members also asked about staffing levels, and the department said state employee and Title 32 numbers have been relatively steady, while technician positions have declined. The Department of Veterans Affairs outlined seven projects for 2026–2028, led by a Radcliff Veterans Center HVAC replacement that needs an estimated additional $16 million to finish phase two after phase one was already funded. Other requests included a maintenance pool increase, renovations and exterior upgrades at Eastern and Western Kentucky veterans facilities, a cooling tower replacement at Thompson Hood, and parking lot and lighting improvements. The department said some projects were already in the six-year plan and that the Radcliff phase two could be bid in June 2026 if funded. Members confirmed that a columbarium wall project at Grayson is federally funded. The Kentucky Infrastructure Authority presented its six-year capital plan, citing more than $3 billion in loan commitments since 1988 and over $5 billion in supported infrastructure projects. KIA requested $298.439 million in the first biennium, including $27.742 million in state match for federal clean water and drinking water revolving funds, $25 million for its state Infrastructure Revolving Fund, $185.697 million in federal capitalization grants, and $30 million in leverage bond authorization for each year of the two federally assisted loan programs. Members asked about drinking-water quality, and KIA said that function is handled by the Energy and Environment Cabinet’s Division of Water, not KIA. KIA also said its loan rates currently range from 0.5% to 2.25%, averaging just under 1%, and that its revolving loan programs have had no defaults. The Tourism, Arts, and Heritage Cabinet began its presentation at the end of the transcript, with staff identifying themselves, but no project details or board action from that presentation were included in the excerpt.