Transcript Highlights:

• And we added a Mandarin... ...Mandarin dual immersion program, and it is now a rapidly growing program
• A lot of it is because it's a half-day program.
• the rules of their after-school program.
• Is that coming from Prop. 98 programs or non-Prop. 98 programs? Yeah, yeah, thank you.
• So now they’ve started programs and they’re not able to keep up with those programs, even though we know

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• Right now, I am currently working with a program called PT Kids.
• and Human Services Program.
• Individuals that would benefit from this program.
• My CASA program serves 11 counties.
• One of those is Unbound Now's EIP program, that is Early Intervention Program.

Bills: HB 451, HB 645, HB 1041, HB 1151, HB 1155, HB 1536, HCR 12

Keywords: commercial sexual exploitation, child sex trafficking, human trafficking, child welfare, foster care, DFPS, Department of Family and Protective Services, juvenile probation, risk assessment, needs assessment, trauma screening, child abuse prevention, exploitation screening, validated screening tool, evidence-informed tool, conservatorship, juvenile justice, at-risk youth, trafficking prevention, Child Sex Trafficking Prevention Unit

Transcript Highlights:

• Program, and the Law Enforcement Recruitment Bonus Program.
• The Hallmark State Rental Program is a State Apartment Incentive Loan Program, known as SAIL, financed
• Another new program in the Live Local Act was a tax credit contribution program.
• And, of course, the last program is the SHIP program, State Housing Initiatives Partnership.
• Our largest element in our program is the recurring work program.

Summary: The committee met to review agency program funding as it prepared to build the budget, hearing brief presentations from six agencies and then taking member questions. Florida Division of Emergency Management highlighted its role in response, preparedness, recovery, and mitigation, describing a largely federal pass-through budget, major technology investments, and large disaster and preparedness grant activity. The Department of Commerce, Department of State, Florida Housing Finance Corporation, Department of Transportation, Department of Military Affairs, Florida State Guard, and Department of Highway Safety and Motor Vehicles also summarized their budgets, staffing, and major programs, including workforce and economic development, elections and arts funding, housing assistance, transportation work programs, military readiness, state guard expansion, and highway safety and motorist services. Members focused questions on several issues: arts and library grant funding and whether award criteria had changed; Commerce’s rural infrastructure and job growth grants and why funds were not being disbursed faster; Florida Housing’s use of SAIL, Live Local, Hometown Heroes, and SHIP funds and how smaller agencies learn about and access funding; and DOT’s work program gap between agency and governor proposals. The most extensive questioning was directed to Highway Safety and Motor Vehicles about long DMV lines, vacancies, overtime, staffing shortages, and the ability to shift funds between divisions. The department said staffing and pay constraints, especially in South Florida, were driving service delays and vacancy rates, and that overtime was being used because troopers were leaving for better-paying jobs. The Florida State Guard was also questioned about its spending and procurement pace, including aircraft purchases and facilities. Its director said long procurement timelines explained the low initial spending and that obligations had risen sharply as contracts matured. Members also asked about the department’s public opposition to Amendment 3 and whether agency resources were used in that effort; the director said no contracts or purchases were made to influence the vote and said the colonel’s comments were made off the clock. The meeting ended with the chair asking agencies to respond promptly to unanswered questions, and the committee adjourned without any recorded votes or formal actions beyond receiving the presentations and questions.

Transcript Highlights:

• You always have programs that are right on the edge.
• And so we offered a program for everybody, a homestead program for everybody over 65? Oh, uh...
• much of the primary residence credit program.
• but the disabled veteran program and the Homestead Program are administered at the local level.
• Of relief through the Homestead program, and then the primary residence credit program picks up the rest

Summary: The Tax Reform and Relief Advisory Committee met with a quorum, approved the March 17, 2026 minutes, and heard a lengthy update from Tax Commissioner Brian Croshys on property tax relief programs. He reviewed the Homestead Property Tax Credit, Disabled Veteran Credit, and Primary Residence Credit, noting increased relief after House Bill 1158 and House Bill 1176, but also discussing how some households “income adjust out” of eligibility over time. Members asked about indexing income thresholds, expanding eligibility by age alone, simplifying administration, county-level notices, and whether the county and state systems could be streamlined. Croshys said the programs are heavily used, largely administered at the county level, and that the department is still refining compliance and reporting; he also said there were no material findings or overarching concerns in the latest review. The committee agreed more detailed PRC information would likely come back in a September meeting, and the chair announced an afternoon recess for lunch before later reconvening. Shelly Myers then presented the statewide property tax increase report, the zero-growth report, and a statistical report on property values and tax levies by class. She explained how county auditors report levy and valuation data, how increases and decreases are counted, and identified counties and cities with the largest percentage changes in growth or decline. She also summarized recent trends: agricultural values remain relatively flat, while residential, commercial, and centrally assessed values have risen over the last five years; in 2025, residential property accounted for the largest share of statewide property tax levies, followed by commercial, agriculture, and centrally assessed property. Committee members asked about unusual zero-growth figures, the effect of annexation and land-use changes, and whether the 3% levy cap was forcing political subdivisions to use reserves or defer spending. Myers said many counties complied by using reserves, delaying capital projects, or limiting increases, and that some counties had not used their full cap. The committee then moved to the stripper oil extraction tax exemption. Commissioner Croshys reviewed the state’s oil tax structure and estimated the revenue impact of keeping stripper wells exempt from extraction tax while still paying production tax. He said the exemption saves operators hundreds of millions of dollars over a biennium, while the state still collects production tax on those wells. He also discussed projected impacts if the exemption were changed for future wells and noted that future outcomes depend on oil prices, production declines, and technology such as CO2 enhanced oil recovery. Nathan Anderson of the Department of Mineral Resources briefly explained the historical difference between the 35-barrel and 30-barrel thresholds for certain wells, citing differences in completion costs and lateral lengths. The committee then heard from EERC CEO Charles Gorecki, who presented an analysis of oil well life cycles and said most oil is produced before wells reach stripper status, but that refracturing or other reinvestment can significantly extend production and keep wells above the threshold for years.

Transcript Highlights:

• In FY26, you all appropriated $15 million for both out-of-school time programs and tutoring programs.
• Out-of-school learning programs are a pretty broad category of programming that often includes after-school
• versus a reading program versus a tutoring program we didn't think would be the appropriate place to
• And many programs very similar to this.
• Again, a program we know that works and that matters.

Keywords: 996, all

Transcript Highlights:

• <00:01:44.840> was Um the North Star Promise Program was Um the North Star Promise Program
• They are also developed the program.
• > people<00:36:34.600> like These programs have allowed people like These programs have
• North Star Promise program really is. North Star Promise program really is.
• opportunity to shape academic programs opportunity to shape academic programs with<00:51:10.640>

Keywords: 1187, senate, all

Transcript Highlights:

• <00:01:44.479> and um uh Minnesota reinsurance program and um uh Minnesota reinsurance program
• that the AC was adopted the MCH program that the AC was adopted the MCH program that<00:10:34.240
• <00:18:06.400> by to pay for the reinsurance program by to pay for the reinsurance program
• He said, as the saying goes, if you've seen one Medicaid program, you've seen one Medicaid program.
• reinsurance programs across the country reinsurance programs across the country and<00:40:11.079>

Bills: HF837

Keywords: health insurance, premium security plan, federal funding, state innovation waiver, Minnesota, 1183, house

Transcript Highlights:

• <00:52:16.160> if six and similarly with your program if six and similarly with your program
• number of minor patients on the program number of minor patients on the program um<00:55:51.160>
• program program um<00:59:21.119> page<00:59:21.319> nine<00:59:21.680> talks<00
• want to participate in the program want to participate in the program because<01:00:27.760> they
• I also believe that the development of the program over the years, as a very restricted program, limited

Keywords: 928, house, all

Summary: The Health and Human Services Oversight Committee met on February 2 and first approved the draft minutes from the prior meeting, with minor corrections to the meeting date and attendance notation. DHHS Associate Commissioner Patricia Tilly then gave a department update, describing the current uncertainty around federal priorities and funding, and provided two substantive reports: progress on the new Hampstead Youth Development Center and an update on the department’s review of an ALS registry proposal. She said the YDC project is underway with tree clearing, fencing, stormwater and site-prep work, and remains on track for completion by June 30, 2026 and operation by August 30, 2026. The center currently has 12 youth, and the new design is intended to provide flexibility for fluctuating census levels. On ALS, Tilly explained that HB 576 had prompted the department to examine whether a registry could be built, but the estimated cost of a HIPAA-compliant system was about $750,000. She said DHHS is reviewing whether existing data sources, such as hospital discharge data and CHIS claims data, could provide useful information, but noted both are incomplete for registry purposes. Committee members discussed whether the Rare Disease Advisory Council, Dartmouth, or existing cancer registry infrastructure could help reduce costs. DHHS said it is neutral and willing to continue exploring alternatives, while members emphasized the value of a registry and the need to consider shared infrastructure and funding. The committee also heard from Jenny Horan of the Alzheimer’s Association, who presented the subcommittee’s report on Alzheimer’s disease and related dementias. She said the subcommittee spent the past year gathering information on dementia care, abuse and exploitation issues, caregiver strain, and available services, and is now moving into a second phase focused on identifying gaps and developing a state plan. Members asked about geriatric psychiatric capacity and long-term care availability; Horan said the state has limited capacity and that the plan will help clarify where needs are greatest. She offered to return for follow-up questions at a later meeting. Finally, Olivia May of DHHS presented the quarterly report on the 12-month postpartum Medicaid coverage extension. She said New Hampshire implemented the extension after federal and state action, and the first claims data are still emerging because of reporting lags. In the initial cohort studied, 95% received some medical services during the extended period, 52.4% received mental health or substance use disorder treatment, 26.7% received preventive visits, and 3.2% received heart or hypertension services. Members asked about return on investment and whether higher federal matching rates are being used appropriately; DHHS said it claims the highest possible match based on eligibility group and will return with more data over time. The committee then heard the annual therapeutic cannabis program report from Michael Holt, who said the program had 1,475 registered patients as of June 30, 2024 and that growth has slowed, with New Hampshire having the lowest per-capita medical cannabis enrollment nationally.

Transcript Highlights:

• to implement the program.
• The program says that the program served 150,000 unduplicated clients.
• When we start, we change the program from an outpatient program to an inpatient program.
• There�s 20�you know, training one program, 20 programs, stay housed.
• Program. for non-Medicare Part D.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• More broadly, for grant programs and financing programs that maybe are not explicitly tied to these target
• But a lot of our work, a lot of the grant programs, finance programs, incentive programs that we provide
• and robotics programs.
• programs.
• You know I just love that program.

Transcript Highlights:

• So I think this is a very innovative program.
• It is my understanding that this program, just like all your programs, the funding is highlighted in
• the program.
• I sent mine to UNM for a program that I do every summer. It's a really great program.
• . an effective mentoring program.

Transcript Highlights:

• Some are doing it by program, and looking at, for example, if you're going to the nursing program and
• Some are doing it by program, and looking at, for example, if you're going to the nursing program and
• <01:14:31.920> by<01:14:32.320> program doing it by program doing it by program and
• CTE program, maybe second block. So, you CTE program, maybe second block.
• Uh how's that work in the program.

Keywords: 928, house, all

Summary: The committee began with housekeeping announcements about clearing office file cabinets by May 22, arranging lockers in another building, and the building’s cold temperature. The chair also reviewed the calendar, noting the May 29 reporting deadline, the May 26 Memorial Day closure, and possible dates for subcommittee or committee-of-the-whole meetings. Representative Damon then apologized for his word choice in a prior vote, and the chair accepted the apology. The committee recessed briefly for caucus before returning to the docket. The first bill taken up was SB 98, extending donations to regional career and technical education center programs. Representative Peoples moved OTP, the motion was seconded, and members noted the bill would allow continued private donations to support the program. The committee voted unanimously to pass the bill and then agreed to place it on consent, with discussion noting a fiscal note but no objection to consent. The committee then considered SB 294, concerning lab fees for career and technical education courses. Representative Peoples moved ITL, but members debated whether the bill would create an unfunded mandate or instead simply require that lab fees be addressed in regional agreements. Supporters argued it would make costs transparent and prevent students from being surprised by fees, while opponents said it would shift costs onto sending districts and add to an already underfunded CTE tuition and transportation line. After discussion, the committee voted 10-8 to pass the bill, with Representative Peoples assigned the majority report and Representative Bricky the minority report. Finally, the committee turned to SB 195, which revises the composition and duties of the New Hampshire Advisory Council on Career and Technical Education. The chair initially asked questions about how CTE funding works for part-time students, then corrected that he was on the wrong bill before returning to SB 195. Representative Lad offered amendment 1938H and explained that it largely tracked current law while making changes to council membership, including the appointment process for business and trade representatives. Discussion focused on how the amendment and bill would alter council appointments and whether the current structure should remain, but the transcript cuts off before any final action on SB 195 is shown.

Transcript Highlights:

• state of Minnesota through our programs state of Minnesota through our programs um<00:03:50.480>
• It's been a really great program.
• or will participate in our that program or will participate in our current<00:14:44.680> program<
• We have a couple of new programs.
• space we have a couple of new programs space we have a couple of new programs so<00:23:24.799>

Keywords: 1187, senate, all

Summary: Explore Minnesota Executive Director Lauren Bennett McGinty gave the committee an agency overview focused on the state’s tourism, livability, business attraction, film, and outdoor recreation promotion work. She highlighted record 2023 tourism results, including 80.2 million visitors, $4.1 billion in economic impact, more than 180,000 hospitality jobs, and $2.3 billion in state and local taxes, and said tourism sales, hotel occupancy, and other metrics continued to improve. She also described the agency’s marketing strategy, including a new campaign centered on authentic Minnesota stories, expanded domestic and international advertising, and a strong emphasis on winter, diverse markets, and accessibility. McGinty reviewed several one-time-funded programs launched or expanded in the last year, including Explore Minnesota for Business, the tourism recovery grant program, the first Tribal Nations Grant program, and the outdoor recreation industry partnership with IRRR, DEED, and DNR. She said the recovery grants had distributed $1.15 million to 110 grantees, the tribal grant program had spent $1.4 million with eight tribal nations, and outdoor recreation was estimated at $13.5 billion annually with 10.5% growth. She also noted strong media and social media results, including a viral Timberwolves-related campaign, high video completion rates, and increased website traffic. In response to committee questions, McGinty said the workforce and business attraction campaign is aimed at showing why people choose to live and work in Minnesota, using stories from newer residents and businesses, and that it is performing well in markets such as Silicon Valley, Boston, and Seattle. She said the agency is investing more in winter advertising to promote Minnesota as a winter destination and is working with partners to highlight activities beyond outdoor cold-weather recreation. Members also discussed the agency’s new film program, resident retention efforts, and a planned music-themed tourism ad tied to Prince and Bob Dylan. No votes or formal actions were taken.

Transcript Highlights:

• infants and the babies we have a program infants and the babies we have a program called<00:03:40.159
• choir and then we have another program choir and then we have another program called<00:04:53.919
• <00:42:02.440> and um associated with our programs and um associated with our programs and
• And this program sounds great.
• This program sounds great.

Keywords: 1187, senate, all

Transcript Highlights:

• A program called RIF, Reading Is Fundamental.
• But the EPR programs in New York, especially the modern EPR programs that have been passed since 2010
• We haven't talked about other elements, but this program—I have conceded the other four states have programs
• WE HAVEN'T TALKED ABOUT OTHER ELEMENTS BUT THIS PROGRAM, I HAVE CONCEDE THE OTHER FOUR STATES HAVE PROGRAMS
• I understand that there may be another program bill that's coming, but that program bill simply says

Keywords: 993, senate, all

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several guest introductions, including students from Brooklyn and St. John’s University, followed by adoption of the resolution calendar with exceptions for two items. The chamber then took up a series of previously adopted resolutions recognizing Black Maternal Health Week, Workplace Violence Prevention Month, the one-year anniversary of the Jet Set nightclub tragedy in the Dominican Republic, New York Constitution Day, and the Month of the Military Child. Senators speaking on the maternal health resolution emphasized racial disparities in maternal mortality and the need for culturally competent care; the workplace violence resolution highlighted hospital safety programs; the Jet Set resolution was adopted in memory of the victims; and the Constitution Day speech reviewed New York’s delayed but eventual support for independence in 1776. The military child resolution stressed the sacrifices of military families and support for children of service members. All of these resolutions were adopted, and the resolutions were opened to co-sponsorship. The Senate then moved through the third reading calendar, passing several bills and laying others aside. Measures passed included bills on public health, environmental conservation, executive law, public authorities, and consumer protection. One notable debate involved a bill to require transparency from private arbitration organizations handling consumer cases; supporters argued it would provide basic public data and guard against conflicts of interest, while opponents said it would burden a useful dispute-resolution process and intrude on privacy. The bill passed after debate. Another debated bill would phase out number 4 heating oil statewide; supporters said cleaner alternatives exist and the fuel is harmful to public health, while opponents raised cost and transition concerns, especially for colder regions. That bill also passed. The chamber also considered a bill to create a rebate program for battery-powered landscaping equipment, funded through utility-related mechanisms administered by NYSERDA. Supporters said it would reduce air and noise pollution and help companies transition, while opponents argued ratepayers should not subsidize landscaping equipment. The bill passed after being restored to the non-controversial calendar. Finally, the Senate began discussion of a housing-related bill aimed at preserving manufactured home parks by enabling nonprofits or municipalities to acquire development rights and keep the land dedicated to that use, with the sponsor explaining that the goal is to protect affordable housing and help residents remain in their homes.

Transcript Highlights:

• So, the tax amnesty program is a program that the state usually offers every several years.
• The Senate advantage uh program.
• um previously federally funded program um previously federally funded program uh<00:48:42.720>
• program.
• caregiver grant program. caregiver grant program.

Keywords: LBA Briefing on Budget, 928, house, all

Summary: The presentation was an LBA overview of Senate changes to the House-passed state budget, with Michael Kane explaining how Senate Finance updated revenue and spending estimates after April revenue figures and agency discussions. He said the Senate’s revenue outlook was higher than the House’s in some areas, but lower in others, especially video lottery terminal revenue, and that the biggest differences also came from changes to revenue splits between the general fund and education trust fund, lapse estimates, and several policy changes in House Bill 1 and House Bill 2. Kane highlighted several major revenue and policy differences: the Senate changed the business tax, tobacco tax, and real estate transfer tax splits; adjusted liquor revenue dedication; removed the House’s meals-and-rooms distribution cap; delayed the Lakes Region facility proceeds plan; altered the PECARD fund treatment; added a granite patron of the arts tax credit; and changed the treatment of unique funds and video lottery terminal revenue. On spending, he noted Senate changes to judicial, corrections, HHS, human rights commission, and other budgets, including additional settlement costs, higher lapse assumptions, and a different approach to Medicaid premium revenue and retirement savings. He also described Senate additions such as a nursing home bed fee, Hampstead Hospital transition funding, and changes to the YDC claims settlement fund. The presentation focused on comparing House and Senate surplus statements across fiscal years 2025 through 2027, including projected ending balances and rainy day fund transfers. Kane repeatedly emphasized that the numbers were still dependent on final revenues and lapse amounts, and that some balances would be carried forward and trued up later in the biennium. No committee vote or final action was described in the excerpt; it was an informational budget briefing and comparison of the two chambers’ proposals.

Transcript Highlights:

• So we have an offset program.
• It is an IRS program.
• And so these outreach programs, training programs, canceled right, left, and center.
• Those programs are continuing to be... Oh. Those programs are continuing to be provided.
• base program funding.

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• We added a Mandarin dual immersion program, and it is now a rapidly growing program coming out of that
• Out programs.
• the rules of their after-school program.
• Is that coming from Prop 98 programs or non-Prop 98 programs? Yeah, thank you.
• So now they've started programs, and they're not able to keep up with those programs, even though we

Keywords: 988, house, all

Transcript Highlights:

• row is the standard full-time program row is the standard full-time program and<00:31:35.520>
• In the standard full-time program and for the critical shortage program, there was a cap of 1%, and it
• program and for the critical shortage<00:36:57.200> program,<00:36:57.680> there<00:36
• critical storage program. critical storage program.
• in the part-time program or the full-time<00:49:14.319> program.

Keywords: Meeting Start: 00:00:09 Attendance Roll Call: 00:01:42 Approval of Minutes: 00:03:23 Overview of Actuarial Audit Process: 00:03:47 Overview of Reemployment After Retirement Provisions: 00:25:26 Teachers’ Retirement System: 00:25:26 Kentucky Public Pensions Authority: 00:50:32 Adjournment: 01:02:55, 958, all

Summary: The meeting began with quorum, approval of the prior minutes, and an announcement that the June meeting had been canceled and replaced by this combined May/June meeting; the next official PPOB meeting was announced for July 21 at 2:30. Staff then gave an overview of the Public Pension Oversight Board’s required actuarial audit process, explaining that House Bill 238 requires a review every five years of the retirement systems’ actuarial assumptions and methods, funded by the systems themselves. The presentation distinguished this audit from a financial or forensic audit, described the three possible audit levels (full replication, limited/spot review, or basic review), and noted that the last audit in 2021 was a level one performed by Milleman Consulting at a cost of about $190,000. Members discussed timing for the next audit cycle, with a request to LRC likely needed in July or August to target the June 30, 2026 valuation, and several members expressed interest in another level one review. Questions also addressed whether prior audits found major issues; staff said the 2021 review was generally clean but recommended more consistency in reporting and assumptions across systems. The committee then welcomed new staff and interns, including Odet Guanzi of KPPPA and Team Kentucky intern Amamira Bowman. Bo Barnes of the Teachers Retirement System presented an overview of the statutory framework for reemployment after retirement under KRS 161.605. He explained that the law is intended to let retirees return to help with staffing needs, do so in an actuarially sound way through required contributions, and keep TRS compliant with federal tax rules for a qualified plan under section 401(a). Barnes described the required breaks in service and earnings limits for retirees returning part-time or full-time, including the three-month or 12-month break depending on the employer, the 6,900-day limit, and the daily wage threshold based on years of service. He also noted a lightly used critical shortage program that allows school districts to hire retirees without a wage cap, while still observing the break-in-service rules. Members asked questions about who decides the scope and level of the actuarial audit, how the audit would treat leave balances and other benefit-related items, and whether the prior level one audit identified substantial problems. Staff said the committee would request the audit, but LRC would handle contracting, and that the audit scope could include items like sick leave and annual leave costs if requested. On the reemployment topic, Barnes emphasized that the rules are designed to avoid pre-arranged retire-and-return arrangements that could jeopardize TRS’s tax-qualified status. No formal votes were taken beyond approving the minutes, and the meeting concluded with the presentations and discussion of these pension oversight issues.

Transcript Highlights:

• This is a newly authorized program.
• programs— If I heard that correctly, if there's 469 federal programs with $12 billion and we have 16
• So this program doesn't. There's two different programs.
• The CCDF block grant is 100% federal program.
• So this program doesn't. There's two different programs.

Keywords: 1204, all