Transcript Highlights:

• Our final administration is a Family Well-Being Administration, which is led by Assistant Commissioner
• Our final administration is a Family Well-Being Administration, which is led by Assistant Commissioner
• Administration is a family<00:09:28.000><c> well-being</c><00:09:28.519><c> Administration</c><00:09
• Sixty-eight percent is paid for by federal funding. Federal shares do differ among the programs.
• c> shares</c> for by federal funding uh Federal shares for by federal funding uh Federal shares do<00

Committee: House Human Services Finance and Policy

Transcript Highlights:

• And now we will move on to our federal funding update.
• And now we will move on to our federal funding update.
• Historically, we've had a 50-50 share with the federal government in order to provide administration
• That's about a $13.5 million loss in federal funds.
• Then there are federal statutory requirements.

Committee: House Appropriations

Summary: The House Appropriations Committee held a work session covering juvenile rehabilitation system capacity, behavioral health capacity, federal funding changes, and a 2026 budget overview. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth and post-25 residents, and is projected to keep growing, creating crowding at Green Hill School and placement limits across the system. They described safe operating capacity concerns, staffing turnover, mental health acuity, and the need for additional medium-security and specialized mental health beds, including a proposed Parkland facility and continued development of Harbor Heights. Committee members were told to follow up separately with questions, and the presentation moved on due to time. Behavioral health officials from DSHS and HCA then reviewed forensic and civil capacity. DSHS described expanding state hospital and civil treatment capacity through Olympic Heritage, Maple Lane, Brockman Campus, and a new 350-bed forensic hospital at Western State, while noting ongoing construction, staffing, and funding issues. HCA outlined its strategy to move long-term civil commitment care into community settings through contracted long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams. Members asked about out-of-state placements, Medicaid funding, and the differences among facility types; officials said the goal is to right-size inpatient capacity while expanding community-based supports. OFM then presented an update on federal funding and the effects of H.R. 1 and H.R. 5371. Agency staff said H.R. 1 would tighten SNAP work requirements, reduce exemptions, shift some lawful immigrants to state-funded food assistance, increase state administrative and benefit costs, and affect Medicaid eligibility, redeterminations, cost sharing, and state-directed payments. HCA estimated major Medicaid caseload reductions and significant future fiscal impacts, while OFM also noted marketplace subsidy changes and higher education and K-12 downstream effects. H.R. 5371 was described as a short-term federal funding extension through January 30, 2026, with some full-year appropriations and a change affecting hemp producers. Finally, Mary Monroe gave a 2026 supplemental budget preview, citing declining NGFO revenue forecasts, reversions, vetoes, and the added uncertainty from H.R. 1, with the projected ending fund balance moving from positive amounts to a negative outlook over the four-year period.

Transcript Highlights:

• The case was appealed to a federal district court judge, Judge Browning, The case was appealed to a federal
• The Administrative Office of the Courts is located in Santa Fe.
• I'm the director of the Administrative Office of the Courts.
• They do not fall under the state court administration.
• Okay, so three amendments under this administration.

Committees: Senate Senate Judiciary , Senate House Judiciary

Transcript Highlights:

• The federal government, after I put this bill in drafting, we had a new administration, a new head of
• , Robert Kennedy's administration.
• I think waiting on the federal government can has proven to be I think waiting on the federal government
• That's why we think this should be a federal process."
• solution, and there's more energy for a federal solution.

Summary: The Committee on Agriculture met with a quorum present and took up four bills. First, CS/SB 150, “Trooper’s Law,” by Senator Gates, would make it a third-degree felony to abandon or restrain an animal during a declared weather emergency, such as a hurricane or tornado. The bill was presented as a response to a widely publicized case of a dog tied to a fence during Hurricane Milton. Several speakers supported the measure, and the committee voted unanimously to report it favorably. Next, SB 374 by Senator Trunow would refine the definition of “farm product” to include plant and plant products and bar local governments from restricting the collection, storage, and processing of farm products on bona fide agricultural land. An amendment related to food waste was withdrawn for further discussion, and public testimony came from composting, recycling, and poultry interests in support. The bill was then reported favorably. The committee also heard SB 560 by Senator Martin on chemical additives in food products, which would restrict a list of 10 chemicals in food. The sponsor argued the bill was aimed at serious health concerns and noted some chemicals had already been banned federally; industry and retail witnesses opposed the bill as creating a patchwork of state rules and potential market disruptions, while some senators supported the health goal but raised concerns about consistency. The committee voted to report SB 560 favorably, with one recorded no vote. Finally, SB 572, the Pam Rock Act by Senator Collins, would create a statewide dangerous dog registry and impose additional criminal penalties, permitting requirements, microchipping, sterilization, and insurance requirements for dangerous dogs. The sponsor and family members of attack victims described severe injuries and deaths to support the need for public notice and accountability. Some members questioned the usefulness of a registry and the burden of the information requirements, but the sponsor said the bill was intended to prevent repeat attacks and help victims. The committee voted to report SB 572 favorably. The meeting then adjourned.

Transcript Highlights:

• And looking at administrative... and a whistleblower to expose the problem.
• And looking at administrative of, um, ...in scope or delayed, and looking at administrative costs and
• The Federal Highway Administration and the Federal Transit Administration conduct reviews.
• And I do believe that we are going to be seeing some federal queries on these matters.
• federal funds.

Summary: The Joint Legislative Audit Committee met to consider new audit requests. The State Auditor reported 10 JALAC audits in progress, with several expected to be published over the coming months, and noted that litigation is delaying the Huntington Beach air show audit. The committee approved a consent calendar of four audit requests covering UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then heard Assembly Member DeMaio’s request for an audit of SANDAG’s road project management and use of transportation funds. DeMaio argued the audit was needed to restore public trust and examine whether restricted funds, voter-approved revenues, and project commitments were properly handled. SANDAG’s CEO and CFO said the agency manages many funding sources, undergoes frequent audits, and has strengthened internal controls; they said the requested review would be duplicative of existing oversight. After debate, the committee voted the request down. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, focusing on whether grantees and BSCC are accurately reporting outcomes and recidivism data and whether oversight is sufficient. BSCC said the program already has multiple oversight layers, including Controller audits, and cited reported improvements in homelessness, employment, and recidivism outcomes. The committee approved the audit. Finally, Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight was heard, with supporters citing long-standing benefit caps, provider network problems, and retirees’ out-of-pocket costs. CalHR said its network remains strong, that it recently ran an RFP adding MetLife as a second carrier starting in 2027, and that it uses performance guarantees. The committee approved that audit as well, then completed add-on votes approving the earlier consent calendar items before adjourning.

Transcript Highlights:

• At Go-Biz, we work across the administration. We also try to help.
• Everybody knows something about all the state administration.
• Federal and we collectively reach over half of the state's residents every month.
• At KVIE, those federal dollars supported more than operations.
• Federal cuts created the problem.

Summary: The hearing focused on the Governor’s Office of Business and Economic Development (Go-Biz) and several related budget proposals. Director D.D. Myers described the California Jobs First economic blueprint, regional planning efforts across 13 regions, and the state’s strategy to target sectors such as ag tech, space, life sciences, semiconductors, and emerging technologies. She also discussed the California brand campaign, export promotion, film tax credits, and the California Civic Media Fund, emphasizing job creation, regional equity, and business attraction/retention. Members raised questions about support for journalism, arts and creative industries, AI’s impact on jobs, foreign direct investment, manufacturing, tariffs, and how the Jobs First framework is being implemented across regions. Go-Biz then presented trailer bill language to extend the encumbrance deadline for remaining Jobs First administrative funds and to codify the Office of Regional Economic Development Initiatives. The department said $95 million of the $100 million Jobs First appropriation had already been deployed to grants for counties and tribes, and members asked for more information on regional outcomes, including Orange County and the North State. Public comment supported Jobs First and the Small Business Development Centers’ role in helping businesses access capital and create jobs. The committee also heard a request for ongoing CalExport funding to replace uncertain federal STEP support; the LAO noted the Legislature may want to weigh whether to backfill federal reductions, while Go-Biz argued the state program is needed because federal support appears unlikely to continue and demand exceeds available funding. The committee next heard the film and television tax credit staffing request. Go-Biz asked for funding for three permanent positions to manage the expanded program, and the LAO recommended approval given the increased workload. The Film Commission reported a sharp rise in applications after AB 1138 and the program expansion, with productions taking place both inside and outside the Los Angeles 30-mile zone and activity spread across the state. Finally, Go-Biz presented a request for one permanent position and one graduate student assistant to support innovation and emerging technologies, including quantum and fusion. Members asked about the use of the state’s quantum funding, and staff explained it would support microgrants, state capacity-building, and workforce education. No formal votes were taken in the portions provided, and the chair indicated some items would be moved and heard later in the agenda.

Transcript Highlights:

• The first is that I will provide an overview of how federal funding flows from the federal government
• Cancellation of federal state contracts or a significant reduction in federal personnel and or funding
• The federal government...
• administration.
• If the Republican administration and Congress follow through with the federal budget, the contains these

Transcript Highlights:

• It requires OSPI to provide administrative services at a level commensurate with the business needs of
• It requires OSPI to provide administrative services at a level commensurate with the business needs of
• With that, I'm happy to respond to... ...unless otherwise required by state or federal law.
• Would you say that they amplify or are somewhat related to, like, administratively...
• It's not uniform, and the federal legislation just says 60 days.

Bills: HB1662 , HB1683 , HB2534 , HB2557 , HB2594

Committee: House Education

Keywords: education agencies, administrative independence, superintendent, education reform, agency authority, education, school boards, district adjustments, administrative boundaries, educational governance, military families, child stability, transitional schooling, support services, special education, parental rights, educational access, evaluation reports, disability services, unhoused

Transcript Highlights:

• </c> to send a directive administrative to send a directive administrative letter<00:09:15.360><c> by
• </c> they're all ways that, um, the federal they're all ways that, um, the federal match<00:22:58.320
• </c> about a state share and a federal share. about a state share and a federal share.
• </c> um which we then do and then the federal um which we then do and then the federal government<01:
• </c> you know the administrative side. you know the administrative side.

Summary: The subcommittee met to begin work on HB 742, which would require catastrophic special education aid to be drawn from the education trust fund, and more broadly to study special education aid/differentiated aid and related costing issues. The chair said the group was starting early because the issue has been debated for years without resolution, local districts are being forced to absorb prorated costs, and the committee wants to send the Department of Education and HHS Medicaid a clear request for data and recommendations before retained bills return in the fall. A committee clerk was also selected, with Representative Reverend volunteering to take notes for the meeting. Members reviewed background materials on special education enrollment, high-cost students, and possible funding formulas, including data on students in high-cost brackets and prior ideas such as category-based funding and caseload-based approaches. The chair also referenced research on other states, including Arkansas, which uses a different special education funding structure and audits IEPs. The committee emphasized that it was focused on the funding mechanics and costs, not on questioning whether services should be provided. Henry Lipman of HHS explained how Medicaid-to-schools currently works in New Hampshire. He said 172 school districts participate, but utilization dropped during the pandemic and remains below historical levels, in part because districts need the capacity to bill Medicaid. Under the current system, schools receive reimbursement based on half of the Medicaid fee schedule, with the school district effectively providing the state share. He said the federal government is requiring a shift by July 1, 2026, to a true certified public expenditure model based on actual costs, which should allow schools to recover 50% of their true costs and some administrative overhead. The department has received a roughly $2.5 million grant to hire a vendor and support districts through the transition, and an RFP and stakeholder meetings are underway. Committee members asked about how costs would be determined, whether the new system would use actual district-specific costs rather than averages, and how the department would support districts that do not currently participate. Lipman said the cost model would be based on each district’s own reasonable costs, subject to audit standards, and that the department expects to provide templates and technical assistance through the vendor because its staff is limited. He also said about one in four New Hampshire children are enrolled in Medicaid, that child enrollment has been relatively stable, and that continuous coverage rules should reduce churn. No votes or formal actions on HB 742 were taken during the meeting beyond organizing the subcommittee and beginning testimony and discussion.

Transcript Highlights:

• But as a general overview, federal funds: we receive federal funds and federal revenue from several different
• funds</c><04:13:50.439><c> and</c><04:13:50.600><c> federal</c> receive federal funds and federal receive
• </c><04:40:09.160><c> Federal</c> to you know Federal Federal to you know Federal Federal dispersements
• F Federal classification road Federal F Federal classification yeah<04:41:22.000><c> um</c><04:41:23.000
• Federal loan, I assume? Say again, a federal loan? It is a federal loan.

Summary: The Division 2 Finance Committee heard an overview and budget presentation from New Hampshire Fish and Game, led by new Executive Director Stephanie Simi and Business Division Chief Kathy Leonti. The agency described its mission to conserve and manage fish, wildlife, and marine resources, and emphasized growing pressures from disease, climate impacts, habitat change, and increased public demand. Simi said the department is largely funded by hunting and fishing license revenue and federal grants, is reviewing staffing and internal processes, and faces critical needs including permanent funding for environmental review staff, infrastructure and IT modernization, and possible service reductions if additional support is not found. Members asked about specific program and policy issues, including chronic wasting disease in deer, hemorrhagic disease in rabbits and hares, moose population decline, and a proposed bait-disease bill. The department said it is actively monitoring diseases and did not see a need for the bait bill at this time. Legislators also discussed the Hike Safe program, which the department said has grown from an expected $100,000 annually to more than $300,000, and a possible boating version of that program, which the department said remains under consideration but would involve complex logistics and multiple agencies. Questions were also raised about rescue costs, out-of-state hikers, and whether boat registrations could be used as a revenue source; Fish and Game said boat registration is handled by the Department of Safety, though the department receives $5 per registered boat for the public boat access program. The budget discussion focused on revenue projections, use of unrestricted Fish and Game funds, and dependence on federal reimbursements. Leonti said the department met the governor’s general fund target but not the Fish and Game fund target without using surplus unrestricted funds, leaving only about $100,000 in the fund by the end of the biennium. She said the budget uses more than $18 million in Fish and Game funds annually against about $14 million in unrestricted revenue, and that five of 193 full-time positions remain unfunded. The department warned that if federal grants were halted, it could cost about $5 million over five months and force the Fish and Game fund to cover the gap. Committee members also requested that future presentations be sent electronically in advance, and the department agreed to do so.

Transcript Highlights:

• </c> of Wyoming law as well as federal law. of Wyoming law as well as federal law.
• </c> that federal court uh, in there also. that federal court uh, in there also.
• </c> federal authorities. federal authorities.
• </c><00:54:30.640><c> federal</c> troopers to go assist federal federal troopers to go assist federal
• often require federal cooperation and create<00:58:36.640><c> unnecessary</c><00:58:37.440><c> administrative

Bills: HB0130 , HB0095 , HB0096 , HB0097 , SF0101 , SF0106 , SF0067 , SF0123

Committee: House Appropriations

Transcript Highlights:

• </c> requirements, uh checks against federal requirements, uh checks against federal and<00:09:43.200
• </c><01:09:55.960><c> That</c> one single state administrator. That one single state administrator.
• </c> respect to AI from the administration. respect to AI from the administration.
• administration administration withholding<01:26:30.360><c> I</c><01:26:30.400><c> think</c><01:26:30.600
• </c> federal government. federal government. Representative<01:30:45.080><c> Greenman.

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• </c> 2019 early in his administration 2019 early in his administration should<00:02:45.000><c> be</c>
• </c> Apprehension and our and our federal Apprehension and our and our federal partners<00:04:53.320>
• , administrative sanctions.
• ,</c> done been dealt with administratively, done been dealt with administratively, administrative<01
• ,</c> doing administrative, doing administrative, as<01:46:59.360><c> Mr.

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• federal funds comply with the federal requirements.
• It's purely on the administration of that federal grant and those federal funds to ensure we are complying
• , federal dollars.
• So that federal money, though, being as federal, is there an accountability to the federal government
• So we have— Chairman Magrum, members of the committee, the administrative fee comes out of the federal

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• That is the story of how we were virtually shut out of the federal banking system despite being a federally
• chartered bank. federal bank ourselves.
• That's federally illegal.
• To have access to the federal banking system.
• The position of the Federal Reserve is that the Federal Reserve Bank of Kansas City has complete and

Committee: Senate Banking, Housing, and Urban Affairs Committee

Transcript Highlights:

• House Bill 2254 allows reasonable costs for the third-party administrator to calculate and administer
• HCA's other administrative costs for the program may not be included in the assessments.
• The current cost of the third-party administrator is $282,000 general fund state per fiscal year.
• Given this, federal law prohibits HCA from collecting assessments and starting the program.
• Given this, federal law prohibits HCA from collecting assessments and starting the program.

Bills: HB2251 , HB2254 , HB2385

Committee: House Appropriations

Keywords: climate change, commitment act, emission reductions, sustainability, environmental policy, HB 2254, Washington, Health Care Authority, partnership access line, psychiatric consultation line, first approach skills training, behavioral health, mental health, assessment, administrative costs, health insurance, health carriers, self-funded plans, multiple employer welfare arrangement, MEWA

Transcript Highlights:

• Under law, federal law, it's revenue losses attributable to the provision of federal tax laws, which
• are for federal debt, the bigger concern is how much that federal debt actually grows over time that
• So if we're cutting federal revenues given where federal debt is, it's a bad situation.
• We've conformed to federal standard federal itemized deductions since 1990. when there's been changes
• standard federal itemized deductions since 1990 Rory Wilson, Arizona Department of Revenue: To federal

Bills: SB1042 , SB1043 , SB1044 , SB1135 , SB1136 , SB1142 , SB1180 , SB1221 , SB1252 , SB1254 , SCR1003

Committees: Senate Finance , Senate Senate Finance Committee of Reference

Keywords: public funds, virtual currency, bitcoin, investment, Arizona Strategic Digital Asset Reserve Act, state treasurer, retirement system, state payments, cryptocurrency, Arizona law, payment methods, government transactions, property tax, tax exemption, Arizona Revised Statutes, digital currency, workers' compensation, death benefits, burial costs, spousal compensation

Transcript Highlights:

• They choose at the Federal Student Aid call center.
• And that includes state and federal aid? State and federal aid, correct. Okay.
• Data from that application is never sent to federal student aid.
• Administration of state aid programs.
• With current uncertainty at the federal level about Pell Grants, Federal Work Study, and other financial

Transcript Highlights:

• This one is 100% federal funds. It is a... ...is 100% federal funds.
• This is one of our federal grants.
• It was RFP'd; it's 100% federal funds.
• This is also 100% federal funds.
• This is going to be 50% state and 50% federal funds.

Transcript Highlights:

• I'm not a CPA, and I'm not an expert on the federal tax code.
• This is your federal adjusted gross income, which does account for expenses.
• but on the way for the federal income tax return, there's a Schedule K-1.
• to get. here says, well, we don't care how you filed at the federal level.
• And this bill says federally recognized Indian tribes. Not all tribes are federally recognized.

Committee: House Finance