Transcript Highlights:

• the information from that project into our systems to maintain and operate our infrastructure and assets
• It helps us collect that information, or use that information into the future as we maintain that asset
• It also, when we don't do that, uh, the best these days for asset management, so this will help us improve
• our asset management capabilities and reduce our overall life cycle cost of our assets.
• The third thing that these systems provide for us is an overall lower life cycle cost of our assets

Keywords: 928, house, all

Summary: The Fiscal Committee met on February 21 and first approved the January 30 minutes and the consent calendar, with item 2540 removed by the Department of Education and item 25057 set aside for discussion. The committee then took up FIS 25057, a Department of Transportation request tied to a federal grant for building information modeling and related data standardization across DOT systems. Transportation officials explained that the $2.405 million consultant-heavy request would connect surveying, design, construction, and asset management systems, improve efficiency and long-term asset tracking, and help the department catch up with other states. Several senators questioned the lack of immediate, quantifiable budget savings and the reliance on consultants, but the item was ultimately adopted. The committee next approved FIS 25054 for the Department of Health and Human Services after questioning a $16 million shortfall in the Children’s Health Insurance Program. DHHS explained the variance as a budgeting and accounting issue tied to separating CHIP from Medicaid managed care, pandemic-era continuous enrollment, and the new federal requirement for 12 months of continuous coverage for children. Members also approved a Cannon Mountain fee item, where park officials described a proposed price freeze for early-bird passes, a new in-season tier, and modest increases in off-season pricing, while noting operating cost pressures, strong snow conditions, and favorable customer value ratings. That item was adopted unanimously. The committee also approved the Department of Corrections item after discussion of staffing, retirement eligibility, overtime, and recidivism. Commissioner Helen Hanks said retirement-eligible staff had declined slightly, recruitment was improving, overtime hours were down, one housing floor had been closed because of lower population, and the department had reduced reincarceration by 8% over seven years, which she said produced substantial savings. The item was adopted. During informational items, the committee heard a Legislative Budget Assistant performance audit of the New Hampshire Commission for Human Rights. The audit found the commission inefficient and ineffective in processing complaints, with average case closure taking 840 days, significant backlogs dating back decades, expired administrative rules, weak management controls, disorganized and outdated procedures, unreliable data, and unresolved prior audit findings. The audit included 25 recommendations, two of which may require legislative action. Commission staff said they appreciated the recommendations and expected the additional resources from the prior budget cycle to help address the backlog and improve transparency and efficiency.

Transcript Highlights:

• And then the last piece is the additional electric generation assets.
• Renewable assets don't perform at nameplate capacity in cold weather, correct?
• Page seven. renewable assets<00:41:30.960> don't<00:41:31.280> perform<00:41:31.599>
• at<00:41:31.839> name<00:41:32.160> plate assets don't perform at name plate assets
• electric demand, and that is different than whether or not you would double or more the actual renewable assets

Bills: HF4770

Keywords: biomass, anaerobic digester, renewable energy, sustainability, energy generation

Summary: The committee approved the March 26 minutes and then took up House File 4770, as amended by an A1 technical amendment. The bill was presented as a proposal to help Liberty Diversified International and Liberty Paper in Becker plan for replacement steam and energy supply as the Shuro facility closure approaches in 2030. Testimony described Liberty Paper’s current closed-loop steam arrangement with Shuro, the need to study future fuel and technology options, and the potential use of anaerobic digestion, biomass, construction and demolition waste, and food waste to produce steam and possibly power. Members asked about feedstock availability, the need for a feasibility study, possible backup natural gas use, and whether waste heat or wastewater heat could be useful. The bill was laid over as amended. The committee then heard a presentation from CenterPoint Energy on Minnesota heating demand and electrification. CenterPoint staff said affordability and reliability are central concerns and outlined how the utility manages customer costs through energy efficiency, contracting, storage, peak shaving, and conservation. Dr. Joel Lynch presented research on peak heating with natural gas and the “missing piece” in Minnesota’s electrification puzzle, explaining that Minnesota’s cold climate makes winter heating demand especially challenging and that replacing natural gas would require substantial new electric capacity and renewable resources. He compared his work with prior national and state studies and said the analysis used Minnesota-specific gas throughput, COP assumptions across several electrification scenarios, and January renewable capacity data. Lynch summarized preliminary findings that Minnesota’s peak gas heating throughput could be up to 40 gigawatts, with electric resistance heating implying roughly 36 gigawatts of new demand, and lower but still substantial demand under heat-pump scenarios. The presentation was informational only; no vote was taken on the CenterPoint presentation. The meeting ended with House File 4770 laid over and the energy demand presentation continuing.

Transcript Highlights:

• 19.599> less getting the advantage of having the less getting the advantage of having the less assets
• <00:34:22.560> and<00:34:23.839> we assets but get all the money. and we assets but
• Uh, the assets would already be in the counties, like, um, uh, Calbert County has certain assets.
• No, their assets would remain with them in that county. Okay. Senator, thank you.

Bills: SB298, SB91

Keywords: Florence, Lauderdale County, municipal boundaries, corporate limits, land annexation, military installations, tall structures, local government, construction approval, wind energy facilities, aeronautics, Department of Defense, 923, senate, all

Transcript Highlights:

• and into the pockets of investors by saddling the medical entity with upwards of 50 to 70% of its asset
• and into the pockets of investors by saddling the medical entity with upwards of 50 to 70% of its asset
• The Journal of the American Medical Association also showed that private equity may hold assets in a
• 00:35:02.480> hold showed that private equity may hold showed that private equity may hold assets
• in a corporate subsidiary, as assets in a corporate subsidiary, as described<00:35:05.599> again<

Keywords: 1187, senate, all

Transcript Highlights:

• schedule or exempt them from registering, or just these small groups that maybe don't even have any assets
• schedule or exempt them from registering, or just these small groups that maybe don't even have any assets
• schedule or exempt them from registering, or just these small groups that maybe don't even have any assets
• schedule or exempt them from registering, or just these small groups that maybe don't even have any assets
• schedule or exempt them from registering, or just these small groups that maybe don't even have any assets

Keywords: 1187, senate, all

Transcript Highlights:

• Hawaii as a state to allow for these types of products and Indigenous reflection within our state assets
• Hawaii as a state to allow for these types of products and Indigenous reflection within our state assets
• Hawaii as a state to allow for these types of products and Indigenous reflection within our state assets
• <00:40:09.119> thank reflection within our state assets thank reflection within our state
• assets thank you<00:40:09.440> madam<00:40:09.760> speaker<00:40:10.079> for<00:

Keywords: 910, house, all

Transcript Highlights:

• They are designed and specifically built to house New Mexico's cultural assets.
• , I think what I was wanting to know is, and Madam Secretary, you have about a billion dollars in assets
• You know, when you have a billion dollars in assets and you're struggling to just maintain regular things
• I think that is our greatest asset in terms of retaining employees.
• There are so many careers related to cultural assets, including accountants, right?

Transcript Highlights:

• bridge is the most used bike and pedestrian infrastructure in the entire state, and it's a regional asset
• bridge is the most used bike and pedestrian infrastructure in the entire state, and it's a regional asset
• c><00:21:45.360> it's<00:21:45.520> a<00:21:45.760> regional<00:21:46.159> asset
• <00:21:46.480> that state and it's a regional asset that state and it's a regional asset that

Bills: HF2438

Keywords: transportation finance, transportation policy, MnDOT, Minnesota Department of Transportation, Department of Public Safety, Metropolitan Council, highway funding, trunk highway fund, county state-aid highway fund, municipal state-aid street fund, state aid roads, local roads, bridge funding, road construction, transit funding, passenger rail, freight rail, aviation, airport development, safe routes to school

Transcript Highlights:

• MWIC has owned and operated nuclear assets for almost 40 years and can share firsthand experience on
• Through careful financial management, all bonds associated with these generating assets were paid off
• and it’s believed that these are the only public utility power companies in the U.S. to own nuclear assets
• representation, municipal utilities can share lessons learned from decades of owning and operating nuclear assets

Keywords: 995, all

Summary: The committee heard testimony on a wide range of energy bills, with much of the discussion focused on offshore wind, battery storage, solar, nuclear study proposals, and a bill to redefine clean energy. Several Barnstable-area legislators and witnesses raised concerns about offshore wind transmission infrastructure near neighborhoods, beaches, and drinking water supplies, and supported bills to create a special commission and increase local input and oversight. In contrast, environmental, consumer, labor, and clean energy groups strongly backed offshore wind expansion bills, arguing that offshore wind lowers long-term costs, improves winter reliability, reduces fossil fuel dependence, supports jobs and local supply chains, and should include wildlife protections, labor standards, and community benefits. Some witnesses and committee members noted that parts of the offshore wind legislation overlap with the Governor’s energy affordability bill, and asked for clarification on which provisions were new versus duplicative. The committee also heard testimony on battery storage and solar legislation. Two student witnesses and several industry representatives supported a bill to study grid battery storage, saying storage can reduce outages, lower peak prices, and improve grid resilience during extreme weather. Witnesses from solar and storage companies supported a broader clean energy transition bill that would expand storage procurement, create a retail-style storage program for distributed batteries, set a 10-gigawatt solar target by 2035, and streamline siting and interconnection. Committee members pressed witnesses on whether these provisions were already included in the Governor’s affordability bill and asked for a section-by-section breakdown of what was new. One witness also urged allowing developers to bond interconnection payments to reduce financing costs. Another major topic was a bill defining clean energy, especially whether existing pumped-storage hydropower should qualify for subsidies or be excluded. Supporters of the bill argued that existing pumped storage should not receive additional ratepayer subsidies because it is already built, can have environmental impacts on rivers and ecosystems, and could cost ratepayers hundreds of millions of dollars. Opponents said pumped storage is an important reliability resource and should remain eligible. The committee also heard testimony on nuclear-energy study bills: some witnesses supported creating a commission to examine nuclear power as a reliable, carbon-free option, while others opposed nuclear study bills and argued that nuclear is costly, unsafe, and inconsistent with the state’s clean energy goals. No votes were taken during the hearing.

Transcript Highlights:

• Chair Muhammad Noor was a tremendous asset in this work.
• 22.160> tremendous Chair Muhammad Noor was a tremendous Chair Muhammad Noor was a tremendous asset
• 24:23.720> He<00:24:23.840> stepped<00:24:24.280> in<00:24:24.520> with asset
• He stepped in with asset in this work.

Keywords: 919, house, all

Summary: The House took up Senate File 334, a bill to modernize Minnesota’s county-administered human services technology systems, including those used for Medicaid, SNAP, and related programs. The author described the current systems as outdated “green screen” platforms from the late 1980s and early 1990s that are cumbersome for county workers, slow service delivery, and make it harder to retain staff. The bill would create an integration layer over legacy systems, establish a long-term technology modernization fund with about $90 million in spending over time and a $50 million cap, and place MNIT in charge of holding and disbursing funds. It also creates governance structures, including an interagency group with county representation and a legislative working group, and includes a $15 million fund for the Office of the Inspector General’s technology needs. Several members spoke in strong support, emphasizing that modernization would improve efficiency, help counties serve residents better, and strengthen fraud detection and data sharing. Representatives from Winona, Washington, Olmsted, Stearns, Hennepin, and others cited local experiences with hacked county systems, obsolete software, and the difficulty of recruiting workers to outdated systems. One member urged that the effort be made enterprise-wide and suggested adding the Office of Legislative Auditor to oversight. Another noted the bill’s potential to improve identity verification tools and support broader agency collaboration. No amendments were offered. After third reading and debate, the clerk called the roll and the House passed the bill with 134 ayes and 0 nays; the title was agreed to.

Transcript Highlights:

• Um, higher ed certainly needed, asset preservation, we call it, deferred maintenance, whatever you want
• :04:38.000> ed<00:04:38.560> certainly<00:04:39.600> needed,<00:04:40.080> asset
• higher ed certainly needed, asset higher ed certainly needed, asset preservation,<00:04:41.199><

Keywords: 1187, senate, all

Transcript Highlights:

• whether it is loan forgiveness, scholarships, recruitment, technology, what are all the different assets
• technology, uh what what are all the technology, uh what what are all the different<00:04:05.200> assets
• <00:04:06.880> What<00:04:07.200> are different assets we could use?
• What are different assets we could use?

Keywords: 958, all

Summary: The Senate Standing Committee on Health Services met with a quorum and first took up Senate Joint Resolution 116, sponsored by President Stivers. The resolution directs the University of Kentucky, the University of Louisville, and Eastern Kentucky University to work over the next year on a statewide framework to improve health care access, especially in underserved and unserved areas. Members discussed physician shortages, maldistribution of doctors, recruitment and retention, loan forgiveness, scholarships, technology, and the connection between health care access and economic development in rural Kentucky. The resolution was reported favorably on a unanimous roll call vote. The committee then considered Senate Bill 116, relating to physician assistants and a shift from a supervisory to a collaborative practice model. The sponsor and PA witnesses explained that the bill was heavily revised through a committee substitute after discussions with the Kentucky Medical Association, physicians, and hospitals. They said the substitute keeps physician supervision in place while allowing health care teams to function more efficiently, and they emphasized that the bill is intended to improve access to care, particularly in rural areas with few doctors. Some members supported the compromise and the collaboration, while others raised concerns that expanding PA practice could worsen long-term physician shortages or reduce incentives for doctors to practice in rural Kentucky. The bill passed the committee 7-2 with favorable expression.

Transcript Highlights:

• These are not just installations; they're strategic assets for the nation and economic engines for our
• state, giving or taking about $17.5 billion a year in federal assets that we have in the state alone
• These are not just installations, they're strategic assets for the nation and their economic engines
• for our state, give or take, about $17.5 billion a year ago in the federal assets that we have in the

Bills: SB1047, SB1365, SB1474, SB1618, SB1620

Keywords: National Guard, active duty, combat, Arizona, declaration of war, state law, military service, property tax, exemptions, veterans, disabilities, widows and widowers, Arizona Revised Statutes, immigration enforcement, local law enforcement, federal cooperation, law enforcement training, public safety, military affairs, funding

Transcript Highlights:

• large energy users to prevent cost shifts to other ratepayers, and to also try to avoid stranded assets
• They should not be forced to pay for stranded assets of wealthy, well-performing companies.
• They should not be forced to pay for stranded assets of wealthy, well-performing companies.
• The first is the risk of stranded assets.

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on utility rates, wildfire safety, carbon capture, methane reduction, large energy users, low-income energy programs, and clean energy supply chains. Early items included SB 613, which would direct state agencies to prioritize reducing methane emissions from imported fossil fuels, and SB 614, which would allow California to move forward with carbon dioxide pipeline safety rules and potentially lift the state’s moratorium on new CO2 pipelines. Both bills drew support from advocates and industry-related witnesses, with no opposition registered at the time they were presented, and the committee indicated it would vote once quorum was established. After quorum was called, the committee took up SB 57, which would require the Public Utilities Commission to establish tariffs for large energy users such as data centers to prevent cost shifts to other ratepayers and address stranded infrastructure costs. Supporters argued the bill would protect affordability and encourage clean energy use, while opponents, including utilities and business groups, warned it could create uncertainty and interfere with existing regulatory processes. The committee also heard SB 256 on wildfire mitigation and emergency response, including undergrounding, PSPS communication, and removal of abandoned lines; supporters emphasized the need for stronger action after recent fires, while utilities raised concerns about duplicative requirements and public disclosure of sensitive infrastructure information. Both SB 57 and SB 256 were approved on roll calls. The committee then heard SB 647, which would expand and standardize oversight of low-income energy savings programs and performance metrics, with strong support from community advocates and some neutral or “tweener” positions from utilities that sought further work on data collection and implementation. SB 787 followed, proposing a state strategy to coordinate supply chains and workforce development for clean energy industries including EVs, building decarbonization, and offshore wind; it received broad support and no opposition. The committee also considered SB 332, a study bill on utility ownership models and affordability reforms, which drew strong support from consumer and climate advocates but opposition from utilities and business groups concerned about bias, investor signals, and executive compensation provisions. The consent calendar was later approved, and several bills were reported out with votes or held open for absent members to add on.

Transcript Highlights:

• Because I think that's one of our biggest assets, sometimes asking for that kind of support.
• one<00:26:32.559> of<00:26:32.799> our<00:26:33.120> biggest<00:26:33.440> assets
• <00:26:34.559> uh<00:26:34.720> sometimes one of our biggest assets uh sometimes one
• of our biggest assets uh sometimes asking<00:26:36.000> for<00:26:36.320> that<00:26:36.559

Keywords: 912, senate, all

Summary: The committees met on a 3:00 p.m. agenda that included House Concurrent Resolution 94 and several gubernatorial nominations. HCR 94, which asks the governor to proclaim Hawaii a Purple Heart State on August 7, 2025, drew support from the Hawaii Veterans of Foreign Wars and no opposing testimony. The chair recommended passage as is, and the committees adopted the recommendation without objection. The bulk of the meeting focused on nominations to the King Kamehameha Celebration Commission and the State Foundation on Culture and the Arts, along with one nomination to the Medical Advisory Board. Nominees and supporters emphasized experience, continuity, and service: Dana Alla Lopez, Beverly Lee, and others described prior commission work; Janet Sato and Marcia Deutsch highlighted long involvement in arts education, grants review, and public art; and Randall Francisco stressed arts advocacy and accessibility. Testimony in support also came from commission staff, the Association for Hawaiian Civic Clubs, the County of Kauai Office of Economic Development, the mayor of Kauai, and others. One nominee, Judy Kvel Kovville, had support from the Department of Transportation. Several committee members raised broader questions about sustaining arts funding amid possible federal cuts and changes in state project financing that could reduce revenue under the 1% for art law. The nominees for the arts-related posts said they were open to exploring new funding sources, including private philanthropy, community support, and learning from other states. After discussion, the committee voted to advise and consent on all listed nominations—GM506, GM507, GM508, GM556, GM654, GM740, GM742, and GM743—with no votes or reservations, and the meeting adjourned.

Transcript Highlights:

• the power of feeling safe in her own home or influence over the body regulating her family's largest asset
• the body regulating her<00:04:32.880> family's<00:04:33.360> largest<00:04:34.000> asset
• <00:04:34.840> their<00:04:35.440> home<00:04:36.440> uh her family's largest asset
• their home uh her family's largest asset their home uh determined<00:04:37.160> that<00:04:37.280

Keywords: 919, house, all

Summary: Legislators unveiled the Master Common Interest Community and Homeowner Association Policy Reform Bill, describing it as a comprehensive package built from a 14-meeting interim work group and public listening sessions. Speakers said the bill is intended to update Minnesota law with clearer standards for governance, open meetings, governing documents, dispute resolution, fines and fees, foreclosure procedures, conflicts of interest, and the roles of municipalities and civil rights protections. They framed the measure as a bipartisan effort aimed at consumer protections, transparency, fairness, and clearer expectations for both homeowners and volunteer board members. Much of the discussion focused on complaints from constituents about excessive fines, unexplained fees, lack of access to financial documents, weak dispute processes, and conflicts of interest involving property managers and contractors. Examples included a small trash-can violation escalating to foreclosure and a roof-repair contract steered to a subsidiary of the property management company. Senators and representatives said the bill would require associations to adopt written fine policies, provide notice and time to cure violations, and create internal dispute-resolution procedures so homeowners are not forced immediately into costly legal fights. A key policy question was Article 3, which would bar cities and municipalities from conditioning approval of new developments on amenities or features that require an HOA, while still allowing voluntary HOAs. Sponsors said this would reduce the number of homeowners pushed into associations and prevent local governments from shifting costs onto residents. They also said the bill is part of a broader package that includes separate measures on registration requirements, attorney general enforcement, an ombudsman office, and a task force to study insurance costs. No formal votes were taken in the transcript. The speakers said the Senate bill was expected to have a housing committee hearing the following week, with additional committee stops likely in state and local government and judiciary, and that House-side negotiations were ongoing. They also said the bill could still be refined as testimony continues and stakeholders raise concerns.

Transcript Highlights:

• projects, and pursuant to House Bill 1 and House Bill 6, Eastern Kentucky University reported various asset
• Eastern Kentucky University<00:03:11.319> reported<00:03:11.840> various<00:03:12.280> asset
• University reported various asset University reported various asset preservation<00:03:13.440>

Keywords: 958, all

Summary: The committee first approved the January minutes and then received several informational reports on school district tax levies, revenue bonds, lease advertisements, and previously rejected lease transactions. Members were told that one rejected lease for the Cabinet for Health and Family Services in Hardin County would be canceled and rebid, while a Perry County lease modification for the Energy and Environment Cabinet would proceed. The Kentucky Communications Network Authority also submitted its quarterly capital projects report, and Eastern Kentucky University reported revisions to asset preservation projects. Janice Thomas, Deputy State Budget Director, presented four capital project action items. These included a Kentucky State University Betty White Building renovation funded by USDA grant money, a Department of Education state schools dormitory and cottage renovation appropriation increase because bids exceeded estimates, a restricted-funds scope increase for the Elizabethtown CTC science building expansion, and a pool project report for the Department of Corrections’ KCIW kitchen drain line repair and replacement. Representative Petrie asked about how often the statutory authority for midstream project increases is used and whether bids are typically competitive; Thomas said the increases are used often when bids come in above estimates and that bids are generally competitive, though construction costs have been difficult to gauge. The committee unanimously approved the first three action items, and the KCIW project was reported with no action required. H. Sandy Williams of the Kentucky Infrastructure Authority then presented six loans and one emergency grant. The items included loans for Frankfort’s East Frankfort Interceptor wet weather facility project, Sturgis wastewater improvements, Scottsville inflow and infiltration work, Morganfield wastewater treatment plant planning and design, Western Pulaski County Water District transmission improvements, and Springfield water system planning and replacement work, plus an emergency Kentucky Waters grant for Eddyville following a sewer treatment plant failure and local emergency declarations. After no questions, the committee unanimously approved the seven KIA transactions. Chelsea Couch then presented a Kentucky Housing Corporation conduit issuance for $38.4 million to finance a multifamily rental project in Jefferson County; members asked how the committee participates and were told it was a conduit issuance rather than state debt. The committee approved that item. Finally, the committee heard an informational Turnpike Authority refunding issuance of about $53 million for present value savings, then approved four SFCC debt issues for Henderson, Pulaski, Scott, and Trimble counties to finance school renovations and construction. The meeting ended with notice of the next meeting date and location.

Transcript Highlights:

• So we'll take a couple questions, but I wanted you to expand a little bit more on your energy assets
• Questions, but I wanted you to expand a little bit more on your energy assets there.
• So just kind of maybe talk about your energy assets there at Tampa.
• You must have data support, but then it's more of the assets required by the private sector.

Summary: The Economic Infrastructure Subcommittee held a panel discussion focused on Florida seaports and their role in the state economy. Florida Ports Council CEO Mike Rubin opened with statewide figures from a 2023 economic impact study, saying Florida seaports support about 1.2 million jobs, generate roughly $195 billion in economic value, and produce about $7.4 billion in state and local taxes. He emphasized that ports are critical for fuel, food, medical supplies, construction materials, and hurricane response, and argued that continued state and federal investment is needed to expand capacity and move projects forward faster. PortMiami Director Heidi Webb described Miami’s cruise and cargo operations, noting the port generated about $61 billion in economic impact and 334,000 jobs. She highlighted record cruise activity, major private investment by cruise lines, the launch of shore power at cruise terminals to reduce emissions, and ongoing capital projects including a new Royal Caribbean terminal, berth reconstruction, and an inland port concept to reduce congestion. Members asked about security, hurricane procedures, AI use, infrastructure planning, collaboration among ports, and smuggling prevention; Webb said the port uses layered security with local law enforcement, CBP, Coast Guard, and radiation monitors, and that hurricane planning is coordinated in advance with county and federal partners. Port Tampa Bay’s Raul Alfonso said Tampa is the state’s largest port by land area and a major energy hub for Central Florida, with an estimated $34.5 billion economic impact. He discussed diversification into containers, food distribution, fertilizer, and construction materials, along with major needs such as a deep-dredge project and more warehouse space. He also addressed resilience and fuel distribution during hurricanes, and said the port is preparing for future LNG and alternative-fuel demand through partnerships, land planning, and education. Jaxport’s Nick Primrose then described Jacksonville’s container, auto, breakbulk, aggregate, military, and LNG businesses, including 1.3 million TEUs last year, major state-funded crane purchases, harbor deepening, auto-processing expansion, and its role as a strategic military port. He said Jaxport is a leader in marine LNG and has trained all employees on human trafficking awareness. The discussion ended with Port Panama City being introduced as a smaller but important Panhandle economic engine, with Rubin noting its cargo, manufacturing, and infrastructure projects and its continued need for state and federal support.

Transcript Highlights:

• student assistance teams in every school who focus on the whole child to capitalize on their individual assets
• . and the assets of their community.
• Canvas courses to Include more relevant scenarios with a focus on our New Mexico students and their assets

Transcript Highlights:

• The one-time funds are an asset for addressing long-term stability, investing in long-term standing and
• ongoing. an asset for addressing long-term stability, investing in long-term standing and ongoing priorities
• this: every Sub 3 hearing will focus on this issue, how and when to spend our one-time resources and assets

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.