Transcript Highlights:

• I noticed that you included debt service on construction project.
• did back in March or April, it's got a table that shows you all the components of the on-behalf and debt
• <00:37:22.880> that<00:37:23.119> you<00:37:23.359> included<00:37:23.839> debt
• <00:37:24.240> service noticed that you included debt service noticed that you included debt
• services in there and whole lot and debt services in there and whole lot of<00:37:46.880> other

Keywords: 958, all

Summary: The Budget Review Subcommittee on Education met without a quorum, so the minutes were not approved. The main presentation was from retired economics professors John Garren and Dr. Kums, who discussed their Bluegrass Institute research on teacher compensation in Kentucky since the Kentucky Education Reform Act era. They said teacher base salaries, adjusted for inflation, have declined over the last decade, while state-paid “on-behalf” benefits such as pension and health insurance contributions have risen sharply; they argued total teacher compensation has increased modestly overall, but less than per-pupil funding. They also presented broader context on staffing growth, declining average daily attendance, Kentucky’s low share of teachers among total school staff, and flat or weak NAEP and ACT performance trends, including widening white-Black score gaps on NAEP. Members questioned the methodology and interpretation of the compensation figures. Representative Bojanowski argued the on-behalf calculations may overstate teacher compensation because they include insurance and pension costs that also benefit classified employees and retirees, and he asked for clarification on the denominator used to derive the per-teacher amount. Representative Truit said the presentation could be misleading if it implies teachers earn $94,000 in salary, and he objected to framing pension stabilization payments as teacher pay. The presenters responded that they were using total compensation, not salary alone, said they had divided total personnel-related on-behalf payments by the relevant staff count, and promised to review and send a technical explanation. Representative Truit and Chairman Typton both emphasized that compensation should be viewed as salary plus benefits, not salary alone, and noted that pension contributions are part of the cost of employing teachers. The presenters said their intent was to show the full compensation package and its relevance to labor supply and teacher shortages, not to claim that individual teachers earn the total compensation figure as salary. No votes or formal actions were taken beyond the decision to revisit the minutes at a later meeting due to the lack of quorum.

Transcript Highlights:

• note, but those revenues are important for our investments not only in infrastructure, but tied to debt
• note, but those revenues are important for our investments not only in infrastructure, but tied to debt
• note, but those revenues are important for our investments not only in infrastructure, but tied to debt
• note, but those revenues are important for our investments not only in infrastructure, but tied to debt
• I don't know in infrastructure, but tied to debt. So, in infrastructure, but tied to debt.

Bills: HB268, SB279, SB304, SB303, SB298

Keywords: lottery winnings, lottery prize, state lottery, income tax exemption, tax exemption, gambling, games of chance, prize proceeds, Alabama Department of Revenue, state income tax, tax relief, winnings, jackpot, lotto, Alabama State House, Montgomery, Legislative Council, demolition, state capitol, state capitol building

Transcript Highlights:

• some of our general fund surpluses in recent years to fund capital in lieu of the state taking out debt
• So we don't have to continue past practices of, you know, taking out 10-year debt to perhaps buy a vehicle
• It was created in 2024, so essentially what that bill did was it limited long-term debt within the bonding
• Chairman Lente and Chairman Small sponsored was a one-time distribution to the new reserves from avoided debt
• So essentially, we took the savings from avoided debt and used it to seed that fund.

Keywords: 996, all

Transcript Highlights:

• And um these young people can actually get a teaching certificate and have no student debt when they
• a teaching certificate and have no get a teaching certificate and have no student<00:21:59.679> debt
• seen a lot of kids over the years that can't participate in the American dream because of student debt
• :22:29.200> student American dream because they student American dream because they student debt
• I know kids that live in mama's debt.

Keywords: Call to Order and Roll Call - 00:55 26RS SB 22 – 04:52 26RS SB 46 – 0:34:36, 958, all

Summary: The Senate Standing Committee on Education met with a quorum and opened the session by recognizing staff and an intern before taking up SB 22, relating to the dual credit scholarship program. Senator Jimmy Higdon presented the bill with Laura Arnold of Nelson County Schools, explaining that it is a narrower version of a prior proposal that had been too broad and had drawn an unfavorable fiscal note. The bill would create a Grow Your Own teacher apprenticeship scholarship for students in registered teacher apprenticeship programs, beginning in the 2027-2028 school year, allowing up to 20 dual credit courses total and no more than eight per year. It requires a district-approved commitment form, annual completion of at least one teaching-and-learning pathway course, and maintenance of a 2.75 GPA on scholarship-funded coursework. Students who withdraw or fail to meet academic requirements would lose eligibility and could be required to repay scholarship funds, though waivers for cause are included. The sponsor said the estimated costs were relatively modest at first and could grow over time, and described the program as a way to address the teacher shortage and help students earn an associate degree in high school and then complete teacher certification with less debt. Testimony from Nelson County Schools described the Lead Nelson model as a partnership among the district, Elizabethtown Community and Technical College, and Western Kentucky University, with students beginning education coursework in high school, earning dual credit, and receiving clinical hours in classrooms earlier than in traditional preparation programs. Witnesses said the model includes key assessments, university oversight, and collaboration on curriculum and outcomes, and that it has already produced at least one teacher who returned to Nelson County. Members asked about the GPA cutoff, possible reinstatement after academic recovery, federal funding opportunities, the amount and structure of apprentice pay, and the role of postsecondary partners. Mary Taylor of the Kentucky Department of Education said there appears to be federal support for similar apprenticeship efforts and noted a possible U.S. grant opportunity, while the presenters said high school apprentices are paid hourly and adult apprentices average about $24,000 annually. No vote or final committee action was taken in the portion of the meeting provided.

Transcript Highlights:

• tuition and fees among flagship universities nationwide, many students face unsustainable levels of debt
• A shot at graduating without mountains of debt, a shot at feeling safe when we walk to class, a shot
• :45.320> of shot at graduating without mountains of shot at graduating without mountains of debt
• 30:47.000> safe<00:30:47.240> when<00:30:47.360> we<00:30:47.480> walk debt
• a shot at feeling safe when we walk debt a shot at feeling safe when we walk to<00:30:47.880> class

Keywords: 1187, senate, all

Summary: The committee heard informational testimony from student and advocacy groups focused on higher education affordability and support programs. Representatives of the Minnesota Association of Private College Students urged full funding for the Minnesota State Grant, describing it as essential for low- and moderate-income students and noting prior successes such as increased support for hunger-free campuses. Two student witnesses, including one first-generation college student and one refugee student, said the grant made college possible for them and warned that underfunding or cuts would limit students’ ability to choose the right school, especially at private colleges not covered by North Star Promise. Members asked questions about the students’ schools, majors, and why they chose their institutions. The witnesses emphasized scholarship opportunities, campus community, faith-based support, and the importance of financial aid in making college accessible. No votes or formal actions were taken during this portion of the hearing. The committee then heard from Vivian Dudley of Foster Advocates, who testified in support of the Foster Independence Grant. She described how the grant allowed her to begin college, stabilize housing and basic needs, and continue toward a social work degree, while warning that aging out of eligibility leaves foster youth facing renewed financial barriers. Members responded with supportive comments and asked about her educational path and work with youth; she said she wants to use her education to help others and to educate campuses on better supporting foster students. Finally, Shay Hornik of the University of Minnesota student government testified in support of North Star Promise, arguing that the program reduces financial burdens and signals that higher education should be accessible regardless of family income. Hornik cited student financial stress, rising living costs, and public opinion favoring greater investment in higher education, and urged expansion of North Star Promise to help middle-class families. No committee action was taken in the transcript.

Transcript Highlights:

• We'll also see a pretty significant increase on line 12: $41 million for debt service.
• So $41 million for debt service.
• So that $30 million in additional debt service would be contingent on your action on Senate Bill 2.
• That would come out of, as I mentioned before, debt service for about half of it and about half of it
• That would come out of, as I mentioned before, debt service for about half of it and about half of it

Keywords: 996, all

Transcript Highlights:

• what finances PSCOC projects, though that share can fluctuate each year depending on overall state debt
• All of this is also only true if they have no outstanding debt.
• In FY24, districts were paying an average of just over 5 mills from that 15 mill limit in annual debt
• thirds of their bonding capacity is currently expended, and they're paying five mills annually in debt
• We could also incorporate debt load, bonding capacity, or annual debt service in the formula, which could

Transcript Highlights:

• One of these is that the cost of debt is high. For this.
• One of these is that the cost of debt is high. We have high interest rates on our mortgages.
• We have high interest rates if you're a company that wants to take out debt.
• And what this graph is telling us essentially is that as debt costs go up, construction goes down.
• They don't think they're going to be able to, for example, refinance their debt in the coming years at

Summary: The meeting began with introductions from members of the Joint Transportation Committee and a presentation from the Association of Washington Cities and the public works directors of Richland, Kennewick, Pasco, and West Richland. The cities described the Quad Cities region as one of the fastest-growing in the state and outlined shared transportation priorities that align with the committee’s focus on safety, multimodal access, climate resilience, and economic development. They emphasized Vision Zero efforts, complete streets, ADA accessibility, regional trail and bike/pedestrian planning, and coordinated long-range transportation and land-use planning to manage growth. The city officials also discussed major funding and delivery challenges, including rising construction costs, project phasing, pavement preservation, right-of-way acquisition, and delays caused by state and federal permitting and review processes. They highlighted regional cooperation through the Benton-Franklin Council of Governments, Good Roads, and local funding tools such as impact fees, transportation benefit districts, REET, tax increment financing, and state and federal grants. Specific projects discussed included Richland’s SR 240/Aaron Drive complete streets project and downtown connectivity work, Kennewick’s Columbia Center Boulevard improvements and rail study, Pasco’s Court/Road 68, Sylvester Street corridor, I-182 bridge/interchange work, and a new north-south bridge study, and West Richland’s SR 224 Red Mountain corridor project, which officials said was awarded under budget and is scheduled to begin construction. Committee members asked questions about sidewalk connections to schools, state-agency right-of-way timelines, apprenticeship utilization, contractor selection, and whether complete streets requirements add burdens to pavement preservation projects. The city officials said new development is generally meeting sidewalk standards, but older infill areas remain a gap; that state right-of-way transactions can take much longer than expected; that apprenticeship requirements are common but harder for smaller contractors and local labor markets; and that low-bid contracting leaves little room to screen for performance history. They also said complete streets requirements are usually manageable on major projects but can be difficult to absorb in smaller preservation work. The committee then shifted to a JTC-funded study on transit-oriented development, presented by Urban Institute researcher Yona Freemark. The study examined TOD conditions in 33 cities in Snohomish, King, Pierce, Clark, and Spokane counties near rail and bus rapid transit stations. Freemark said Washington’s housing affordability crisis is severe, especially near transit, and found that high-cost cities have seen more development near stations but also signs of gentrification and loss of affordable housing, while lower-cost cities have had less development and worsening affordability relative to income. He identified barriers including high debt costs, land costs, infrastructure costs, zoning and parking rules, and limited subsidies for affordable housing. He recommended more neighborhood infrastructure funding near stations, stronger affordable housing investment, and better use of public land, noting that HB 1491 and related legislation are already changing some local requirements.

Transcript Highlights:

• And there's no group of people in this nation, in this state, that have paid a greater debt to building
• 40.280> greater in this state that have paid a greater in this state that have paid a greater debt
• 40.960> to<00:08:41.159> building<00:08:41.640> this<00:08:41.800> state debt
• to building this state debt to building this state to<00:08:44.000> overcoming<00:08:44.800><

Bills: HB1

Keywords: HB1, Alabama, elections, primary election, special primary, runoff, congressional districts, redistricting, reapportionment, district boundaries, federal court, injunction, judgment, Governor proclamation, nominee certification, party nominee, general election 2026, election calendar, voting rights, congressional race

Transcript Highlights:

• I also currently represent a public housing tenant in a dispute with a debt collector.
• public housing tenant in a dispute<00:10:06.920> with<00:10:07.040> a<00:10:07.080> debt
• dispute with a debt collector. dispute with a debt collector.

Keywords: 912, senate, all

Summary: The Judiciary Committee heard testimony on Governor’s Message 725, the nomination of Daniel M. Gluck to serve as associate judge of the Intermediate Court of Appeals for a 10-year term. The chair announced a two-minute testimony limit, said the committee would not vote that day, and scheduled decision-making for the next day at 10:45 a.m. in Room 016. Testimony in support came from the Governor’s Office, judges and legal professionals, the Hawaii State Bar Association, and members of the public, including a child who described Gluck’s kindness and help in Girl Scouts. The committee reported 72 supporters, zero opposition, and one comment from the West Side Bar Association. Gluck thanked the committee and outlined his background in private practice, nonprofit work, and government service, including work in the executive, legislative, and judicial branches. He emphasized access to justice, pro bono representation, and his commitment to reducing the ICA backlog. In response to questions, he said he would focus on fuller staffing, shorter and more concise opinions, possible use of AI for limited administrative tasks, and process improvements to speed appeals. He also discussed appellate timelines, briefing schedules, and the value of oral argument for transparency and clarification. Members questioned him about impartiality, especially in cases involving tension between Hawaii and federal precedent. Gluck said judges must follow controlling law, including U.S. Supreme Court precedent on federal questions and Hawaii Supreme Court precedent on state-law issues, and that the judiciary should not make policy. He also described his current work as deputy corporation counsel, including HART, firearms licensing after Bruen, appeals, and pending state cases. No vote was taken, and the hearing was adjourned after questions concluded.

Transcript Highlights:

• And they carry real risk and debt and penalty.
• <00:07:04.720> real<00:07:05.080> risk<00:07:05.520> and<00:07:05.800> debt
• <00:07:06.120> and they carry real risk and debt and they carry real risk and debt and penalty

Keywords: 1183, house

Transcript Highlights:

• For example, both my parents work a job on top of the farm, and we're $5,000 to $10,000 in debt every
• $5,000<00:10:06.959> to<00:10:07.279> $10,000<00:10:08.000> in<00:10:08.240> debt
• <00:10:08.480> every<00:10:08.800> single $5,000 to $10,000 in debt every single $5,000
• to $10,000 in debt every single month.<00:10:10.080> Um,<00:10:11.040> that's<00:10:11.279

Keywords: 1183, house

Transcript Highlights:

• money on new projects, tariffs, anti-immigration policies by the federal government, and high costs of debt
• So there's cost of debt and cost of equity in what's going on, right?
• The cost of debt has increased rapidly because of higher interest rates in general, but this has resulted
• Essentially, if you are taking out debt and the interest rate is higher, then your long-term costs are

Summary: The Senate Housing Committee heard a series of work-session presentations focused on transit-oriented development, commercial-to-residential redevelopment, building code implementation, housing market trends, and the Covenant Homeownership Program. The first presentation, from the Urban Institute, reviewed research on HB 1491 and TOD feasibility, arguing that Washington has made major progress but faces diverging conditions across transit areas. The presenter said rising construction costs, higher interest rates, and lower rents in some markets have made many projects less feasible, and recommended targeted infrastructure funding for lower-market communities, adjustments to MFTE and affordability requirements by local market conditions, more support for very low-income housing in high-market transit areas, minimum density standards near stations, expanded public land/joint development tools, and better tracking of TOD outcomes over time. Committee members asked about AMI calculations, immigration’s effect on construction labor, developer input, and whether a tracking mechanism had been removed from the bill. The Department of Commerce then outlined implementation of HB 1491 and demonstrated the new Washington Zoning Atlas, which is live and intended to help visualize zoning, overlays, and station-area conditions. Commerce said local governments will designate station areas, update zoning and MFTE policies, and handle anti-displacement measures, with Vancouver and Spokane first to implement and Puget Sound following later. Staff described a timeline for updated MFTE guidance, station-area implementation guidance, a TOD model ordinance, and later rulemaking on variances. The committee also heard from the Lieutenant Governor’s office on a report about converting commercial properties to housing, which found substantial potential for redevelopment on vacant or underused commercial land, especially near transit, but noted barriers such as ground-floor retail mandates, affordability requirements, infrastructure costs, private covenants, and slow implementation. The office urged by-right residential use on commercial land and faster rollout of new housing laws. The State Building Code Council updated the committee on its three-year code cycle and several legislatively directed actions, including minimum dwelling size, emergency shelters, and especially single-exit stairs and multiplex housing. Council staff said those code changes are nearing completion and will provide prescriptive solutions, while noting that elevator size and requirements were not changed and would require separate legislative direction if the committee wanted to revisit them. Members discussed the cost impacts of building and energy codes and the council said it is required to consider economic impacts and is increasingly looking at performance-based approaches. Later, the Washington Center for Real Estate Research presented its annual housing report, showing that higher mortgage rates have sharply reduced affordability, flattened house prices in many cities, and slowed single-family permitting and completions, while multifamily construction has recently cooled after a prior surge. Finally, the Washington State Housing Finance Commission reported strong first-year results for the Covenant Homeownership Program, which provides zero-interest down payment assistance to eligible first-time buyers with family ties to Washington before 1968; the program assisted 547 homebuyers in its first fiscal year, with more than $60 million loaned, and the agency said participation has continued to grow after income-limit changes enacted in 2025.

Transcript Highlights:

• strong that they are able to complete unplanned capital improvements without taking on additional debt
• She was able to, and that's all credit card debt, but thanks to Representative Connors's bill, we're
• actually going to be able to have real traditional debt moving forward.
• divided by the number of units in the community or in the limited equity cooperative, plus a little for debt

Summary: The committee met for work sessions on land banking/shared homeownership and on maximizing existing housing stock. Members first heard an overview from Commerce on alternative homeownership models, including community land trusts, limited equity cooperatives, condominiums, accessory dwelling units, middle housing, church land for housing, and public land transfers. The discussion focused on how these models can help households build equity while keeping housing permanently affordable. Committee members asked about statewide counts of co-ops and land trusts, and Commerce said it does not track all of those entities directly. Pierce County staff then described the Pierce County Community Development Corporation’s rapid acquisition fund and its role in acquiring, holding, and transferring public land for affordable housing. They said the county used general fund and affordable housing sales tax dollars to buy properties, preserve a manufactured home park through resident ownership, and create a pipeline of sites for future development. Members asked about the advantages of a public development authority, funding sources, the use of surplus and underutilized public property, and how the model works with housing authorities. Spokane land bank staff followed with testimony that land banks can reduce blight, preserve affordability, and help nonprofits acquire land quickly, but that holding costs and taxes can make the work harder without state support. They also described brownfield assessments, donated properties, and work on Black homeownership and public surplus properties. The committee then heard from the Northwest Cooperative Development Center on limited equity cooperatives, especially in manufactured housing communities. The witness said Washington now has about 43 limited equity co-ops and that recent subsidy funding and legislation have accelerated resident purchases of manufactured home communities. Members asked how residents benefit from capped equity, how values are affected, and whether the model improves access to lending; the witness said the model stabilizes costs, allows modest equity gains, and that a recent law allowing manufactured homes in co-ops to be titled as real property should improve access to traditional financing. The committee also discussed House Bill 1974 from the prior session and possible updates to land banking legislation. In the second work session on maximizing existing housing stock, Commerce reviewed recent housing laws and implementation timelines, including ADUs, middle housing, condo liability reform, SEPA changes, tiny homes, and co-living. Members raised concerns about the long implementation horizon, vacancy data, corporate ownership of homes, and the need for better support for small landlords and first-time ADU owners. Sightline then testified on mobile dwelling units, arguing that RVs, tiny houses on wheels, and similar units are a low-cost, quick-to-install housing option that is often blocked by zoning; the witness said many Washington residents already live in these units, often informally. Finally, AARP discussed housing options for older adults, including ADUs, missing middle, manufactured home communities, co-living, universal design, and village-style support models, emphasizing aging in place and the need for more accessible, affordable housing choices.

Transcript Highlights:

• health and human services areas, like DSHS, DCYF, as well as Health Care Authority, higher education, debt
• Health and Human Services areas like DSHS, DCYF, as well as health care authority, higher education, debt
• Debt service is another big one, and that is largely dependent on the size of the capital budget and
• That would cover topics including K-12 basic education, debt service on capital projects, some basic

Summary: The committee held a work session focused first on juvenile rehabilitation system capacity. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth, and has longer lengths of stay, especially for “post-25” youth who must remain in secure facilities and cannot go to community beds. They described overcrowding at Green Hill School, placement limits at Echo Glen and Harbor Heights, staffing turnover, mental health acuity, and the need for more medium-security and specialized mental health beds. DCYF said it is pursuing a Parkland facility proposal, a staffing model decision package, and a broader feasibility study and master plan update. No votes were taken; members were asked to follow up with questions later. The committee then heard on behavioral health system capacity from the Behavioral Health Administration and the Health Care Authority. DSHS described growth in forensic and civil bed need, expansion at Olympic Heritage, Maple Lane, and Brockman, and construction of a new 350-bed forensic hospital at Western State expected to open in 2028. HCA reported progress on long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams, saying the community-based system is being expanded to support step-down care and reduce hospital reliance. Members asked about whether capacity is right-sized, the difference between facility types, and federal match eligibility for services. A federal funding update followed, covering the effects of H.R. 1 and H.R. 5371 on SNAP, Medicaid, marketplace coverage, long-term services and supports, K-12, higher education, and hemp regulation. OFM and agency staff said H.R. 1 adds work requirements, changes non-citizen eligibility, increases state administrative and benefit costs, reduces Medicaid and marketplace subsidies for some groups, tightens redeterminations, and may significantly affect provider payments and state-directed payments. H.R. 5371 extended federal funding through January 30, 2026 and included some agency appropriations and other provisions, including changes affecting hemp producers. Members asked about SNAP error rates and special enrollment periods. Finally, budget coordinator Mary Monroe gave a 2026 supplemental budget preview. She reviewed the state’s near general fund outlook, noting revenue declines since the enacted budget, the effect of reversions, and a preliminary maintenance-level outlook showing a projected increase in NGFO spending over the four-year period. She said the supplemental will reflect updated caseload and cost forecasts and mandatory impacts from H.R. 1, but not policy proposals. No actions or votes were taken during the session.

Transcript Highlights:

• The uncollectible debt report date modification and the extension of CIP eligibility for spouses of certain
• <00:04:05.360> The<00:04:05.519> uncollectible<00:04:06.159> debt same provisions
• The uncollectible debt same provisions.
• The uncollectible debt report<00:04:06.879> date<00:04:07.200> modification<00:04:08.159

Keywords: 1183, house

Transcript Highlights:

• We all owe them a debt of gratitude for their service and sacrifice.
• National security issue one is our national debt. And our national debt.
• shy of a billion dollars, and leaving behind a hospital system that was staggered under a load of debt

Keywords: Steven Feinberg, Deputy Secretary of Defense, national security, budget cuts, military readiness, global threats, Department of Defense

Summary: The meeting primarily focused on the nomination of Steven Feinberg as Deputy Secretary of Defense. The committee emphasized the urgent need for strong leadership in response to a complex array of global threats posed by adversarial coalitions, including China, Russia, and Iran. The discussions highlighted concerns regarding budget cuts and personnel reductions within the Department of Defense, showcasing the challenges posed by the current economic context and the pressing need to maintain military readiness and capabilities. Various members expressed their apprehensions about how impending layoffs and budget reductions would impact the defense workforce and national security.

Transcript Highlights:

• But the ones that we do hire who already have that degree do come with a lot of student debt, and if
• They can focus on the program, they don't have to worry about the funding of it, they graduate debt-free
• And they have a lot of debt. So those are other problems with that.
• They have a lot of debt, like everybody else has said, and they're going to take a $20,000 to $30,000

Summary: The Appropriations Committee on Higher Education met to focus on nursing education funding, workforce supply, and Florida’s low NCLEX pass rates. The chair emphasized that Florida ranks last nationally in nursing exam pass rates and said the committee wants to use budget decisions and a forthcoming nursing bill to improve outcomes. The Florida Center for Nursing at USF presented preliminary workforce and education data showing RN supply is moving toward equilibrium with demand through 2037, while LPN shortages are projected to worsen, especially in some regions. The center also reported on enrollment, retention, faculty vacancies, and NCLEX trends, noting Florida still underperforms the national average but has shown some recent improvement, including higher RN pass rates in 2024 despite fewer test takers. The center highlighted that students who test sooner after graduation tend to pass at higher rates. A panel of nursing education leaders from public universities, state colleges, technical colleges, and private institutions described how prior state pipeline and line-item funding helped expand enrollment, simulation labs, faculty hiring, student support services, and partnerships with hospitals. UNF, Galen College, College of Central Florida, Keiser University, and Lorenzo Walker Technical College each reported strategies such as expanded simulation, mental health and social work support, test-prep and remediation, and efforts to grow faculty pipelines. Several speakers said faculty recruitment and retention remain major barriers because of salary competition with hospitals, faculty debt, and aging faculty. Technical college representatives also stressed the need to strengthen LPN pathways, English-language support, and LPN-to-RN bridge programs. Members asked for ideas to improve NCLEX outcomes and discussed possible policy options, including student loan forgiveness, critical shortage supplements for faculty, incentives for students to test soon after graduation, and possible changes to timing or regulation around NCLEX eligibility. Several witnesses supported more flexible or recurring funding, while noting that one-time line funding has been useful for simulation, scholarships, and faculty support but is harder to sustain. The committee adjourned after the discussion, with the chair saying the ideas would be considered in future funding and policy decisions.

Transcript Highlights:

• are always making sure that ongoing costs are funded and that we're able to retire any outstanding debt
• Some of the best ways to do that are to build budget resiliency with reserve deposits and paying off debts
• Some of the best ways to do that are to build budget resiliency with reserve deposits and paying off debts

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• National debt. The annual deficit for this particular FY 24 year, recall, was $1.9 trillion.
• So, spending $1.9 trillion more than bringing in revenue, issuing debt, our annual debt payments are