Transcript Highlights:

• There was an increase for the hospital assessment fund, which, without going too far into the weeds,
• the hospital assessment fund is where the hospital net patient revenue portion is collected and deposited
• The federal match that comes in for the UPL payment is to be deposited in the hospital assessment fund
• The hospital assessment fund is a dedicated account, so even though the source of those dollars is not
• So, and they do, hospitals do pay into the assessment based off of the number of fee-for-service bed

Keywords: 989, all

Summary: The committee heard a budget presentation on the Division of Medicaid within the Department of Health and Welfare, including an overview of the division’s five programs, staffing, spending trends, and the large share of the budget that goes to trust and benefit payments. Ms. Williamson explained the difference between ongoing and one-time enhancements, the role of population forecast adjustments, and why the fiscal year 2026 and 2027 numbers change significantly. Members asked about the growth in the budget, the FMAP match rate, the impact of provider rate changes, and the shift of some positions into Medicaid from other divisions after last year’s reorganization. A major topic was House Bill 345 and related budget changes, including the hospital assessment fund alignment, the 4% provider rate reduction, and the effect on Medicaid expansion and other populations. The committee discussed the decline in expansion enrollment, rising costs in traditional Medicaid populations, and the governor’s recommendation to offset part of the 2027 increase with additional reductions. Members raised concerns about access to care, especially for dental, behavioral health, developmental disability, and home- and community-based services, while the deputy director said the department is trying to contain costs through prior authorization, fraud and abuse work, and policy changes. The committee also focused on the MMIS replacement project, which is in year four of a five-year procurement and is funded through dedicated and federal dollars tied to milestones. Another significant item was estate recovery, where the department requested funding to replace an outdated case management system and add contractor support to address a backlog of roughly 20,000 cases; members questioned the return on investment and asked for more detail on the software and staffing split. The deputy director also explained the federally qualified health center reconciliation issue, saying the state had not been properly paying change-in-scope amounts and is now using a new process with interim payments and later reconciliation. In addition, lawmakers asked about program integrity staffing, the use of AI, and whether the department could better target fraud, waste, and abuse investigations. The deputy director said the department is reviewing AI use cautiously and sees opportunities for it in claims review and anomaly detection, but emphasized that the current request is for dedicated receipt authority rather than general funds. No formal votes were taken in the excerpt, but the committee received the presentation, asked extensive questions, and was told that some follow-up information would be provided later.

Transcript Highlights:

• polling</c> Are you also aware that the polling places are supposed to have what they call privacy screens
• Would you also believe that somebody slit the screen on one of my garage doors, unlocked the door, went
• Would you also believe that somebody slit the screen on one of my garage doors, unlocked the door, went
• So in looking at that, I tried to assess what are the reasons for that and what are possible benefits
• </c> So in looking at that I tried to assess So in looking at that I tried to assess what<01:04:16.000

Keywords: 1191, senate, all

Transcript Highlights:

• The Senate requires that the approval of owners is required for any lines of credit, loans, or assessments
• The assessments are requiring them too soon. They're too much.
• We don't have a background screening requirement in the Senate bill because we have an attestation by
• Additionally, it establishes a Sunshine Genetics Pilot Program, an innovative opt-in newborn screening
• Specifically, it changes the due date for semi-annual assessments to allow financial institutions two

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several recognitions, including interns, Denim Day awareness, and a resolution honoring Vietnam veterans exposed to Agent Orange. Senators also paid tribute to former Senator Karen Johnson Gendron with a moment of silence. The chamber then moved to special-order bills after routine announcements that no committee reports, governor’s messages, or House messages were on the desk. The first major bill, SB 138/HB 687 on transportation offenses involving death, increased penalties for repeat DUI/BUI manslaughter and vehicular homicide offenses and added warnings and misdemeanor penalties for refusing lawful breath or urine tests. After a brief amendment and questions about attorney rights and prior impairing-substance language, the bill passed 37-0. SB 306 on Medicaid providers followed, requiring broader provider access, including after-hours availability and more primary care access for Medicaid enrollees; it also passed 37-0. The chamber then took up the major condominium reform bill, SB 1742/HB 913, addressing post-Surfside safety, reserve funding, milestone inspections, budgeting, reserve flexibility, manager regulation, conflicts of interest, and condo sale rescission periods. Senators from both parties praised the sponsors for extensive stakeholder work and the bill passed 37-0 after multiple amendments. The final major item was SB 7016/HB 1205 on constitutional amendments and petition-gathering rules, with sponsors arguing the bill was needed to combat fraud in the 2024 petition process and opponents warning it would burden citizen initiatives. The Senate adopted the House bill and then considered numerous amendments on petition circulator rules, submission deadlines, invalid-signature thresholds, voter notification, and related enforcement provisions; several amendments were adopted, and the substitute was later withdrawn, leaving the chamber to continue on the underlying bill and remaining amendments.

Transcript Highlights:

• So just a little bit about the assessment on our producers.
• And then just a few highlights over on the other side of the screen.

Summary: The Senate Agricultural Committee approved minutes from February 26 and March 3, 2026, then heard three House bills. House Bill 630 would move existing administrative-rule language on airborne control permits for predatory animals into statute without changing policy; the sponsor said the permits are free, limited to private property, and used for livestock, wildlife, or domestic animal protection rather than sport hunting. House Bill 631 would similarly codify current rule language on certificates of free sale for Idaho products, with the fee capped at $100 per certificate. Both bills drew no opposing testimony and were sent to the floor with due pass recommendations. The committee also heard House Bill 826 on the Idaho Honey Commission. The sponsor said the bill shifts regulatory authority from the commission to the Idaho State Department of Agriculture, cleans up code, and reflects current practice under an existing memorandum of understanding. Testimony from the Idaho Honey Industry Association supported the bill, emphasizing the importance of the honey sector and noting that hobbyist beekeepers are not affected. Members asked about hobbyist thresholds, pesticide-related bee registration, and penalties; the sponsor and department explained that hobbyists remain exempt from commission funding, bee site registration is handled elsewhere in department rules, and the $10,000 penalty already exists while the misdemeanor provision is being removed. The committee passed the bill to the floor with a due pass recommendation. After the bills, Dairy West gave a presentation on its regional checkoff program covering Idaho, Washington, Oregon, and Utah. Speakers described producer-funded promotion, research, school nutrition, sports sponsorships, retail promotion, farmer relations, sustainability outreach, and export development. They said Idaho remains the largest dairy-producing state in the region, with major exports to Mexico, Southeast Asia, Japan, Korea, and emerging markets elsewhere. In response to questions, they said the industry relies heavily on immigrant labor and that the organization is not a lobbying group. The committee took no action on the presentation and adjourned after the briefing.

Transcript Highlights:

• So it was really difficult to assess the impact that the compact would have on the Respiratory Therapy
• The bill removes the current sunset provision from the Department of Human Services drug screening program

Keywords: 994, senate, all

Transcript Highlights:

• Or is it just my screen? She's on the board? No? Come on. No, we're good. She got a button.
• Inru. 8.28.25, fines, fees, assessments, institution, non-payment. June elections.

Keywords: 1182, all

Transcript Highlights:

• missed that, and I think that we better hold these in the committee long enough to look at that and assess
• So for example, if agencies were using Workday for hiring, right, or to screen applicants, there's a

Keywords: 989, all

Summary: The House Environment, Energy, and Technology Committee approved the minutes from February 10 and February 16, then took up a pending rule docket from the Drinking Water and Wastewater Professionals Board. The board explained changes to licensure tables, endorsement requirements, exam score validity, experience and continuing education rules, and fee increases intended to rebuild the board’s cash balance. After questions about the fee increase and the board’s finances, the committee approved the docket with Section 400, the fee section, struck, matching the Senate’s action. The committee then heard House Bill 593, a code cleanup bill from Representative Heather Scott that would repeal obsolete provisions related to the State Hazardous Waste Management Planning Committee and the Big Payette Lake Water Quality Act. During discussion, members raised concerns about overlap with another bill on the calendar. After testimony from a lobbyist and further clarification, the committee decided to hold House Bill 593 in committee to the call of the chair rather than advance it. House Bill 714 was also held in committee without hearing. Finally, the committee heard House Bill 687, sponsored by Representative Schurz, which would restrict state agencies from procuring, deploying, or using large language models unless they are developed and implemented in accordance with specified anti-DEI and ideological neutrality principles. The sponsor cited concerns about a state vendor, Recidiviz, and said the bill would require contract safeguards, agency procedures, and vendor responsibility for any decoupling costs. Members questioned how agencies could verify compliance and whether the bill would affect existing uses of AI; the sponsor said it was aimed at direct agency use of AI models. The committee voted to send House Bill 687 to the House with a due pass recommendation.

Transcript Highlights:

• You know, I hear all the time about housing providers often screening out voucher holders and ceasing
• We're talking about a simple background check, assessing what you've done or what you were incarcerated

Keywords: 1212, all

Transcript Highlights:

• On the screen, so we can officially call a quorum. Is Kevin West in the room?
• up happening is that all groups will then have a fee regardless of if there's a legitimate risk assessment

Bills: HB3700, HB3315, HB3242, HB3379, HB3129, HB3132, HB2950

Keywords: education policy, grading system, student assessment, academic integrity, state funding, opinion conduct, higher education, bachelor's degree, feasibility study, Oklahoma State Regents, accreditation, credit hours, emergency declaration, gender, privacy, public schools, sleeping quarters, restrooms, criminal history, admissions process

Summary: The House Postsecondary Education Committee met and considered several higher education bills. HB 3700, by Rep. Chad Caldwell, would require public college grades to be based only on academic criteria, including attendance, and not on students’ opinions, beliefs, or conduct outside the classroom. Supporters said it formalizes an existing expectation and protects free speech; opponents raised concerns about local control and whether it was a response to a specific incident. The bill passed 6-2. The committee also passed HB 3379, a “ban-the-box” style bill by Rep. Ranson that would bar colleges from asking about felony history before admission, with exceptions for sex-related felonies and post-admission follow-up on housing, payment, and degree planning. Members questioned campus safety and whether violent offenses should be excluded, but the bill advanced 6-2. Rep. West’s HB 3129, prohibiting public institutions from charging security fees to student groups based on the content of their expression, passed 7-1 after discussion about whether schools could still assess security costs based on event size or risk. His HB 3132, which would limit the use of DEI-related practices in accreditation and require annual reporting on accreditors, also passed 6-3. Rep. Eves’ HB 3315, directing a feasibility study on three-year bachelor’s degrees, passed unanimously 9-0. Rep. Woolley’s HB 2950, as amended, would prevent extra admissions requirements for students from unaccredited backgrounds, address Oklahoma’s Promise requirements for homeschoolers, and allow OLAP applications up to age 18; it passed 7-2. Finally, Vice Chair Wolfley’s HB 3242, aimed at protecting women’s privacy in restrooms, locker rooms, showers, shelters, and correctional facilities, passed 6-2 after extensive questioning about how it would apply to transgender individuals and safety concerns for both women and trans people.

Transcript Highlights:

• The next table that I've got highlighted on the screen shows kind of those roll-up numbers, so it's everything
• red line, or the crimson line on top and in bold, those are all our economic outlook and revenue assessment

Keywords: 989, all

Summary: The committee received a courtesy presentation from Senator Scott Groh and JFAC staff on the state budget process, with a focus on the fiscal year 2026 and 2027 outlook and how policy decisions affect appropriations. Groh and budget analysts explained that the governor’s budget, revised revenue forecasts, and pending tax conformity legislation have sharply reduced the projected ending balance, prompting JFAC to ask agencies for additional 1% to 2% reduction plans on top of the governor’s proposed cuts. They emphasized concern about relying on one-time money to balance the budget and the need for better coordination between policy committees and the budget committee. Alex Williamson then reviewed the Division of Medicaid’s fiscal year 2027 forecast, describing a projected ongoing increase of about $235 million and identifying major cost drivers by plan and fund source. He outlined the governor’s recommended reductions, including possible additional hospital rate cuts, residential habilitation rate changes, transportation administrative cost reviews, managed care administrative reviews, and removal of some services in Idaho Code. Members questioned whether reserve funds could be used instead of further Medicaid cuts, and Williamson said the specific savings from the Medicaid options would be about $22 million in general fund reductions, with the broader budget picture to be addressed by Keith Bybee. Bybee presented the statewide general fund outlook, saying the state’s structural balance has weakened because of lower-than-expected revenue collections, tax policy changes, and uncertainty around conformity. He noted the legislature’s projected ending balance for 2026 had fallen to about $29.8 million under the governor’s plan, and explained that using reserve funds or making additional cuts would change that balance further. He also reviewed long-term budget growth, saying Medicaid and other state spending have risen largely because of policy decisions, while per-capita, inflation-adjusted general fund spending has grown only modestly over two decades. No votes were taken; the meeting ended with committee members discussing the difficulty of further cuts, the possible use of the budget stabilization fund, and the chair asking members for feedback ahead of future JFAC discussions.

Transcript Highlights:

• Filers have 30 days after they've been assessed a fine to appeal it.
• And when you go to these offices and you see the amount of glass, the amount of TV screens, the amount

Summary: The Senate Committee on Ethics and Elections met with a quorum present and heard a presentation from the Florida Commission on Ethics on several proposed legislative changes. The commission asked for changes to the Whistleblower Act to better cover ethics complaints, a public records exemption for commissioners’ and staff members’ sensitive personal information, an expanded gift-disclosure family definition to include foster relationships, and a first-time waiver of fines for late financial disclosure filers. Staff also requested technical fixes, including treating a timely postmarked appeal as filed on time, clarifying Form 6 filing requirements for appointees to elected seats, extending ethics-training requirements to municipal appointees filling unexpired terms, and clarifying where Form 10 gift disclosures are filed. Commission staff reported high electronic filing compliance rates, the rollout of automated fines, and an average of 92 days for completed preliminary investigations in 2025. They also updated the committee on two federal court challenges involving the in-office lobbying ban and the Form 6 requirement for elected municipal officers. The committee then heard from Secretary of State Cord Byrd, who outlined preparations for the 2026 election cycle and several policy proposals. He discussed work with new supervisors of elections, ongoing election-crimes enforcement, cooperation with federal agencies on citizenship verification, and data-sharing agreements with other states. Byrd also proposed a statewide pre-certification audit system with grants for smaller counties, a more streamlined process for checking voter citizenship status after registration, and a modernization fix for voter records affected by randomized driver’s license numbers. Members asked about special elections, election-crimes investigations, returning-citizen voting determinations, chain-of-custody procedures, and interstate data-sharing agreements. Byrd said special election timing is controlled by the governor, the elections-crimes office investigates but does not arrest, returning-citizen applications are resolved within 90 days, and he is confident in current chain-of-custody practices. The committee also considered gubernatorial nominations. By unanimous vote, members approved a block of nominees, then separately took up Joshua Kellum’s nomination to the Fish and Wildlife Conservation Commission. The committee heard sworn public testimony from Robin Blevins, who urged rejection of Kellum’s appointment and criticized his background and past involvement in FWC-related advocacy. After brief discussion, the committee voted unanimously to approve Kellum’s nomination as well.

Transcript Highlights:

• the Coordinating Board to conduct a study in partnership with the higher education institutions to assess
• Senate bill 2744 by Paxton relating to the modernization of cardiovascular screening and prevention under

Bills: SB66, SB317, SB393, SB397, SB456, SB614, SB628, SB629, SB636, SB715, SB731, SB801, SB872, SB905, SB986, SB1012, SB1013, SB1015, SB1032, SB1113, SB1181, SB1212, SB1241, SB1250, SB1278, SB1285, SB1376, SB1444, SB1449, SB1524, SB1525, SB1528, SB1556, SB1588, SB1660, SB1704, SB1708, SB1802, SB1833, SB1844, SB1854, SB1863, SB1957, SB1959, SB1965, SB1999, SB2035, SB2056, SB2082, SB2119, SB2138, SB2165, SB2199, SB2201, SB2203, SB2245, SB2284, SB2419, SB2422, SB2452, SB2487, SB2523, SB2529, SB2533, SB2541, SB2586, SB2595, SB2605, SB2615, SB2675, SB2690, SB2717, SB2753, SB2778, SB2835, SB2841, SB2891, SB2929, SB2933, SB3016, SB3039, SB3044, HB912, HB2525, SJR3, SB5, SB29, SB326, SB494, SB530, SB769, SB783, SB963, SB1238, SB1271, SB1786, SB1967, SB2312, SB72, SB616, SB1143, SB1172, SB1267, SB1273, SB1506, SB1759, SB2361, SB1, SB260, SB1637, SJR36, SJR50, SJR63, SJR59, SCR12, SCR39, SCR48, SCR19, SB2023, SB1524, SB2422, SB2119, SB2753, SB1863, SB62, SB666, SB847, SB284, SB854, SB1073, SB810, SB1505, SB583, SB507, SB1434, SB1376, SB1772, SB2016, SB1163, SB1122, SB731, SB397, SB508, SB1436, SB287, SB261, SB1882, SB393, SB1791, SB209, SB2429, SB1999, SB511, SB2309, SB510, SB1085, SB1975, SB2717, SB1262, SB636, SB2056, SB884, SB517, SB1200, SB1845, SB2681, SB2199, SB2458, SB801, SB2533, SB3014, SB3013, SB758, SB1013, SB2797, SB2076, SB2876, SB2284, SB2929, SB2595, SB715, SB1640, SB1241, SB2538, SB1449, SB2529, SB986, SB1181, SB1359, SB2245, SB410, SB1234, SB456, SB1012, SB2926, SB2138, SB2615, SB2972, SB2841, SB3016, SB1856, SB2035, SB1528, SB1373, SB672, SB2891, SB1854, SB317, SB2539, SB2532, SB1250, SB2082, SB2203, SB1285, SB1959, SB1454, SB2520, SB2541, SB1708, SB1237, SB1844, SB1586, SB3039, SB2819, SB66, SB629, SB1015, SB2342, SB2903, SB2933, SB1965, SB2477, SB3029, SB2605, SB2419, SB1957, SB375, SB250, SB777, SB628, SB2523, SB2367, SB2703, SB2608, SB2778, SB3044, SB2965, SB2521, SB865, SB1032, SB2165, SB2501, SB2675, SB2452, SB2835, SB872, SB1212, SB1278, SB1588, SB1602, SB1704, SB1723, SB1833, SB1858, SB1946, SB2009, SB2177, SB2460, SB2785, SB2373, SB1660, SB614, SB867, SB1608, SB1525, SB905, SB640, SB2487, SB1698, SB383, SB705, SB748, SB1113, SB1117, SB1802, SB2340, SB2586, SB2680, SB2690, SB2994, SB2747, SB1950, SB913, SB1071, SB1086, SB1087, SB1483, SB1444, SB1553, SB1556, SB1703, SB2133, SB2297, SB2298, SB2622, SB2955, SB3059, SB2782, SB2781, SB2637, SB2633, SB2337, SB2334, SB1861, SB2043, SB1367, SB946, SB945, SB2857, SB128, SB571, SB1263, SB3058, SB612, SB2221, SB2587, SB2044, SB2363, SB2713, HB1109, HB1392, HB22, HB2525, HB3093, HB517, HB912, HB1130, HB142, HB1689, HB2018, SB2311, SB1986, SB2565, SB2943, SB1888, SB2417, SB3048, SB3052, SB3053, SB3036, SB3057, SB3056, SB3043, SB3037, SB3050, SB3063, SB3047, SB3035, HJR98, HJR99, HB136, HB2884, HB1393, HB2730, HB1399, HB1244, HB467, HB331, HB2559

Keywords: disability, supported decision-making, legal assistance, confidentiality, access to justice, autonomy, civil rights, advocacy, monuments, memorials, public property, historical significance, civil penalties, local governance, SB 393, Sparks, Middleton, local government, political subdivision, public securities

Transcript Highlights:

• parents, and the child's attorney. 4885 would add managed assigned counsel programs to this list to screen
• During that time, they can assess the child's needs, contact parents and relatives to refer them for

Transcript Highlights:

• People don't go looking for medical debt; it's not like buying a flat-screen television or any sort of
• Following the lead of other states, we propose instituting an assessment to ensure that there's stable

Bills: HF1646, HF2443

Keywords: medical debt, debt relief, healthcare financing, consumer protection, financial hardship, commerce, cannabis, insurance, housing, ombudsperson, affordability, property, task force, financial institutions

Transcript Highlights:

• These records contain anything from screening and assessment outcomes, applications for benefits, denial

Transcript Highlights:

• I also established and ran the special projects department for the Screen Actors Guild, which was the
• Senator Block. know, and this person will be an integration focal point to assess our current status?

Transcript Highlights:

• Is it actually being assessed or is it not assessed in some places?
• In the assessed value.
• Are they assessed by the state tax commission or do you as a county assessor assess them?
• Is it locally assessed? It's locally assessed.
• We can be centrally assessed. We don't need to be locally assessed.

Keywords: 959, house, all

Transcript Highlights:

• That's our goal, is just simply getting a referral in place, not a screening or an assessment.
• But she brought up just how essential these quick appointments are for that assessment.
• they receive in the foster home compared to kids where that assessment is delayed even up to the 30-
• It's like a need-based assessment, though. Right.
• We have to do annual community needs assessments.

Summary: The committee first met in executive session and adopted a House committee substitute combining House Bills 1850 and 1975, which was then voted do pass by a 16-0 roll call. The substitute was described as incorporating federal PBM-related transparency and audit provisions, including requirements intended to ensure fair audits, greater transparency for employers and patients, and protections for pharmacies so they are not reimbursed below drug cost and receive a fair fee. Members said the package was a compromise and a needed step because pharmacies are closing. The committee then heard House Bills 2318 and 2368, related to artificial intelligence and mental health. The sponsors said the bills are aimed at truth in advertising, barring AI platforms from marketing themselves as mental health professionals or therapy providers, while not banning AI use in health care generally. Testimony from supporters emphasized concerns about minors and adults relying on chatbots for mental health guidance and the need to protect consumers from misleading claims. The committee adopted an amendment adding social workers to the bill string, rolled it into a substitute, and voted the combined House committee substitute do pass 14-0. Next, House Bill 3313, described as an AOT bill from the prior week, was voted do pass 14-0 without discussion. House Bill 2745 was then amended and passed 14-0; the sponsor explained the changes would require a prompt physical exam for children entering foster care, allow a physician or nurse practitioner to perform it, try to continue existing developmental, behavioral, or emotional care when possible, and require biological parental consent before updating vaccines at the initial visit. House Bill 2463 also received a substitute to close a loophole involving referral payments when a prospective resident or legal representative cancels a contract, and the committee voted the substitute do pass 14-0. The committee also heard House Concurrent Resolution 28, which would designate the last full week of April as Infertility Awareness Week in Missouri. The sponsor linked the resolution to broader efforts to expand fertility access, and supporters, including a patient sharing her infertility experience, spoke about the emotional and physical toll of infertility and the value of awareness. Finally, House Bill 2979, the Rural Missouri Rural Doctors Act, drew extensive testimony. The sponsor and supporters argued it would limit physician non-compete agreements to one year and five miles for nonprofit employers to improve rural access and physician mobility, while opponents from hospitals and health systems said the bill would weaken recruitment, hurt financially stressed rural hospitals, and create uneven treatment between nonprofit and for-profit employers. No vote was taken on HB 2979 in the portion provided.

Transcript Highlights:

• And so this kind of small fee assessed by the director of the Department of Water Resources would help
• And as you can see on the chart that's currently on the screen, the governor's proposal is fully balanced
• It also reduces the cap on the provider assessment.
• The extraordinary care assessment tool. Thank you very much.
• The extraordinary care assessment tool required a rulemaking process, and we partnered with the Attorney

Keywords: 1182, all

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.

Transcript Highlights:

• And so this kind of small fee assessed by the director of the Department of Water Resources would help
• And as you can see on the chart that's currently on the screen, the governor's proposal is fully balanced
• It also reduces the cap on the provider assessment.
• The extraordinary care assessment tool. Thank you very much.
• The extraordinary care assessment tool required a rulemaking process, and we partnered with the Attorney

Summary: The joint House-Senate appropriations committee met to review the governor’s fiscal 2027 budget presentation from Ben Henderson, director of the Office of Strategic Planning and Budgeting. Early discussion focused on the state economy and revenue outlook, with Henderson describing strong GDP growth and low unemployment but also fragility for working families. Members questioned the executive’s revenue assumptions, which were said to be about $100 million per year higher than the JLBC baseline, and the committee chair asked for a written comparison of the revenue differences. Henderson also said the governor’s budget is structurally balanced and includes both ongoing spending and proposed revenue changes. A major portion of the hearing centered on data centers, AI investment, and water policy. Henderson argued Arizona’s data center tax incentive should be eliminated because it had already succeeded in attracting investment, while lawmakers questioned whether repealing the incentive and imposing a new water-related fee would discourage future growth. The executive said the water proposal would create a Colorado River Protection Fund and give the Department of Water Resources fee-setting authority, with the aim of encouraging more modern air-cooled facilities. Members also raised concerns about whether the data center changes would require a supermajority vote and whether the fee was effectively a new tax. The committee then reviewed major “critical spending” items, including correctional officer pay, prison health care compliance, probation funding, body-worn cameras, law enforcement staffing, fentanyl enforcement, cyber readiness, and border-related costs. Henderson said the budget includes $24.4 million ongoing for correctional officer pay and $118.3 million one-time for prison health care staffing, plus other public safety and homeland security items. He also defended the governor’s assumption of $759.7 million in federal reimbursement for border expenses, saying the governor had met with federal officials and that the state would seek the full amount. Members expressed skepticism about relying on that reimbursement and asked what would be cut if it does not materialize. Education and health and human services were also discussed. The governor’s budget includes K-12 funding, Prop. 123-related school facility bonding, and a proposal to shift some school facilities funding to bond financing, which several members criticized as inappropriate for short-term maintenance needs. The committee also reviewed AHCCCS/Medicaid costs, Division of Developmental Disabilities funding, and the expected impacts of federal HR1 changes on eligibility, provider funding, and rural hospitals. No votes were taken during the hearing, and the chair repeatedly limited debate and directed members to keep questions brief while the presentation continued.