Transcript Highlights:

• We are all working towards the goal of balancing our state's budget, and this issue area in this budget
• </c> budgets and trying to keep those budgets budgets and trying to keep those budgets balanced.<00:40
• Obviously, it's a huge budget.
• </c> revealing because what these budget revealing because what these budget targets targets targets
• was less than half what our budget was less than half what our current<02:46:09.160><c> budget</c><02

Keywords: 1183, house

Transcript Highlights:

• Yes, so I just have a slide here on the budget. So, this is our budget.
• </c> we talk more about budget? Sure. we talk more about budget? Sure.
• </c> budget, we have um initial budget budget, we have um initial budget allocation<01:18:35.520><c>
• &gt;&gt; On<01:23:10.680><c> the</c><01:23:10.760><c> budget?</c> &gt;&gt; On the budget?
• &gt;&gt; On the budget?

Keywords: 1183, house

Transcript Highlights:

• Um, we see instead of doing what the people of Minnesota and their family budgets and their business
• Um, we see instead of doing what the people of Minnesota and their family budgets and their business
• family budgets, and their business<00:33:16.320><c> budgets,</c><00:33:17.799><c> um,</c><00:33:18.799
• , um, have to do, and business budgets, um, have to do, and that<00:33:20.080><c> is</c><00:33:20.240
• The Democrats won't let go of $2 million of bicycle welfare in order to meet the needs of this budget

Keywords: 1187, senate, all

Transcript Highlights:

• you for having DPS here today to discuss Governor Wallace and Lieutenant Governor Flanigan's 2025 budget
• you for having DPS here today to discuss Governor Wallace and Lieutenant Governor Flanigan's 2025 budget
• first item I just want to mention briefly is our operating adjustment in the governor's proposed budget
• </c> and I know um the governor is budgeting and I know um the governor is budgeting about<00:41:57.520
• So can you talk about what the impact of those cuts is to your budget?

Keywords: 1187, senate, all

Transcript Highlights:

• Our budget request to ask for 11.4.
• Our budget request asks for a $1.9 million increase to our operating budget, which takes our FY27 general
• Budget requests ask for a $13.7 million increase to our general funds, which takes our FY27 budget to
• Budget requests ask for a $13.7 million increase to our general funds, which takes our FYI-27 budget
• Again, just taking you back to your budget guidelines, you know, the, Taking you back to your budget

Summary: The Department of Public Safety presented its FY27 budget request, emphasizing three priorities: improving community engagement through a redesigned website and outreach, expanding statewide data and intelligence integration through intelligence-led policing, and improving emergency response and officer safety through fleet replacement, a driving track, and a requested helicopter. DPS said much of its increase is driven by rising health care premiums, and it is also seeking special appropriations for fleet replacement, the website rebuild, and an Honor Guard program created after the 2022 helicopter crash that killed four public servants. Members asked about vacancies, fleet costs, cybersecurity compliance, the real-time crime center, EV fleet participation, and the Metro DPS facility. DPS said its vacancy rate is about 9%, its fleet replacement needs are driven by mileage and condition, it is compliant with federal CJIS standards even though DoIT has raised concerns, the real-time crime center would be built as a regional model to complement Albuquerque’s center, and the Metro facility is moving toward a January groundbreaking. Committee members also discussed several DPS-related capital and IT requests, including the intelligence-led policing data lake, recurring maintenance for critical systems, and a $5.6 million reauthorization for state crime lab DNA backlog work and a $900,000 reauthorization for fingerprinting equipment. DPS explained that the website request is high because the current site must be rebuilt from scratch to support missing-person alerts, memorial updates, ADA compliance, and better communication with law enforcement and the public. Members also raised concerns about speed enforcement, construction-zone cameras, and whether EVs are practical for patrol use; DPS said it is not pursuing speed cameras and is only partially participating in the state EV initiative because patrol needs make full electrification difficult. The committee then received an LFC quarterly update on non-recurring appropriations from the 2025 General Appropriation Act. LFC reported that of the $1.4 billion appropriated in Section 5, $164 million had been expended and $333 million encumbered, leaving $897.4 million unspent, which is a slower pace than the prior year. Staff highlighted a number of reauthorization requests and slow-moving projects across agencies, including AOC cybersecurity funding, DFA housing and public safety grants, DoIT cybersecurity and higher education funds, EDD economic development and energy programs, OSI mitigation and malpractice funds, EMNRD energy and geothermal grants, Health Care Authority behavioral health-related appropriations, DPS crime lab and fingerprinting funds, PED career technical education and special education initiatives, and higher education loan repayment and technology funds. Members questioned why some large appropriations had little or no spending, discussed the need to monitor reauthorizations more closely, and asked for follow-up on several specific line items and project balances.

Transcript Highlights:

• He changed them to budget committees.
• We have to budget.
• development calendar outlining how the budget process works.
• Because I do know that they do post their budget and things.
• Because I do know that they do post their budget and things.

Summary: The House met with a quorum present, heard prayers and ceremonial remarks, and then took up a series of returning messages from the Senate. The first major item was CS/CS/HB 1503 on computer science education and certification. Members explained that the House concurred in a Senate amendment that restored teacher certificate language, kept computer science and AI-related content in the bill, and delayed implementation to give the Department of Education time to develop curriculum. The House adopted the amendment and then passed the bill 105-0. The House also considered CS/CS/HB 1085 on local government cybersecurity. Members adopted a House amendment allowing local governments to buy into the cyber grant program even if they do not receive a grant, adding a five-year sunset and reporting provisions. The House then concurred in the Senate amendment shifting grant administration from a university to the Florida Digital Service, and passed the bill 104-1. Several other returning messages were rejected or sent back to the Senate. The House refused to concur in Senate amendments to CS/HB 351 on concurrent legislative jurisdiction over military installations and HB 6011 on reporting gifts or honoraria, as well as CS/HB 851 on professional learning for instructional and school administrative personnel. The most contentious debate came on CS/CS/HB 1471, which concerns systems of law and terrorist organizations; the Senate amendment defined “promote,” refined notice and timeline requirements, and retained references to Sharia law. Opponents argued the bill was overbroad, lacked due process and evidentiary standards, and threatened First Amendment rights, while supporters said it targeted conduct, not speech, and protected against terrorist support. The House adopted the amendment and passed the bill 80-25. The House then took up a related public records bill, CS/CS/HB 1473, which made a technical conforming change to align with HB 1471; debate focused on transparency and due process concerns.

Transcript Highlights:

• </c> employees and they're currently budget employees and they're currently budget at<00:12:50.839><c
• Our operating budget is very, very small.
• </c><01:07:38.799><c> you</c> that within your operating budget you that within your operating budget
• </c> efficiently so our significant budget efficiently so our significant budget requests<01:32:45.520
• </c><01:46:35.679><c> is</c> which in a 10.2 or10 billion budget is which in a 10.2 or10 billion budget

Keywords: 910, house, all

Summary: The Committee on Finance held informational briefings first with the Department of Defense on its FY 2026 budget request, then with the Hawaii School Facilities Authority. Major General Steve Logan outlined the Department of Defense request for $40.5 million in state funds, which he said would leverage about $74 million in federal matching funds and support 411 open projects that could attract up to $2.3 billion in additional federal grant money. He said the budget focuses on sustainment, safety, and reorganization in light of lessons from the Maui wildfires. Key requests included $1.3 million to sustain IT systems, $2.7 million for 32 HEMA emergency management positions, three new Hawaii Army National Guard positions plus four upgrades, and $1.9 million for the Youth Challenge Program to cover state-mandated fringe costs and staffing needs. He also reviewed capital improvement projects, including Youth Challenge facility upgrades, siren modernization, ADA improvements, building retrofits for disaster resilience, Army facility upgrades, a third state veterans home on Maui, HEMA EOC improvements, and a maintenance/fuel building at Diamond Head. Members asked about the siren modernization timeline, and HEMA said roughly 26 to 31 sirens would be modernized this year, with 15 on Maui, eight on Oahu, and eight on the Big Island. Questions also focused on Youth Challenge and Job Challenge enrollment and vacancies, with the department saying the Hilo Job Challenge Academy is growing and that combining Youth Challenge recruiting statewide into one Kilauea program has helped enrollment. Logan also answered questions about the New Year’s Eve medical transport mission, explaining the Hawaii Air National Guard’s relationship with active-duty Air Force assets and saying the flight cost is about $20,000 per flight hour, though the final bill had not yet been determined. On the Maui veterans home, staff said the University of Hawaii site was no longer viable after faculty senate opposition, so the department is now focused on a 10-acre Puna District site; the project remains tied to a certified $35 million state match and August 2025 and August 2026 federal suspense dates. Logan said the veterans home remains one of the department’s highest priorities, but it could not be moved higher in the submitted CIP ranking. The department also discussed a Governor’s add-on for a fire marshal/Office of Recovery and Resiliency proposal. Logan said the fire marshal position was reestablished last session but has not yet been filled, and that if the function is transferred to the Department of Defense, the department wants funding ready to move quickly. Staff later said the request would include about $1.1 million for seven positions and about $2.2 million for operating costs, though details were still preliminary. The committee then reconvened for the School Facilities Authority briefing, where Executive Director Ricky Fujitani described the agency as a startup created in 2020 to improve school and workforce housing development through standardized designs, prefabrication, best-value procurement, and public-private partnerships. He said Hawaii’s single school district still functions like 15 different districts because of its 264 schools across 15 complex areas, and that the authority’s goal is to create more efficient, maintainable, and cost-effective facilities.

Transcript Highlights:

• The partisan Washington budget, known as HR1, compared...
• The partisan Washington budget, known as HR1, compared to the Arizona Promise budget we passed last year
• And the budget we passed was bipartisan and balanced, while the Washington budget was partisan and skyrocketed
• While Washington's budget continues to be... And irresponsible spending.
• This year, my executive budget, This year, my executive budget will include $30 million for a new Colorado

Keywords: 1182, all

Summary: The transcript is the opening joint session of the Arizona Legislature’s 57th Second Regular Session, featuring remarks from House and Senate leaders and Governor Katie Hobbs. House and Senate leaders emphasized a conservative governing agenda focused on affordability, public safety, parental rights, accountability, school choice, election integrity, and water policy, while also highlighting plans for tax cuts and cooperation across chambers. Governor Hobbs centered her address on the “Arizona promise,” stressing affordability, security, and freedom. She highlighted prior actions on job growth, medical debt relief, housing, public safety, border security, water management, and economic development, and announced new proposals including a middle-class tax cut package, a capacity and efficiency initiative to save state funds, a new active management area for La Paz County, a Colorado River Protection Fund, elimination of the data center tax exemption, a housing acceleration fund, and an Arizona Affordability Fund funded in part by a short-term rental fee. She also called for more accountability in the ESA program and for renewing Prop. 123 to support public schools. The governor and legislative leaders also addressed political violence, honoring retiring Senator Lela Alston and recognizing public safety and firefighting personnel. No formal votes or legislative actions were taken in the session; it concluded with the joint session being dissolved after the governor’s remarks.

Transcript Highlights:

• The partisan Washington budget, known as H.R. 1, compared...
• The partisan Washington budget, known as H.R. 1, compared to the Arizona Promise budget we passed last
• And the budget we passed was bipartisan and balanced, while the Washington budget was partisan and skyrocketed
• While Washington's budget continues to be... And irresponsible spending.
• This year, my executive budget, Upper Basin for the water we deserve.

Summary: The transcript is the opening joint session of the Arizona Legislature’s 57th Second Regular Session, featuring remarks from House and Senate leaders and Governor Katie Hobbs. House and Senate leaders emphasized a Republican governing agenda focused on affordability, public safety, parental rights, tax cuts, election integrity, school choice, and holding government accountable, while also highlighting cooperation on water policy and border security reimbursement. Senate President Warren Petersen said the legislature would pursue a major tax cut, send an election integrity measure to voters, defend women’s sports and school choice, and continue negotiations on Colorado River guidelines. Governor Hobbs framed her agenda around the “Arizona Promise,” stressing affordability, public safety, water security, housing, and economic opportunity. She highlighted prior-year accomplishments including job growth, medical debt relief, lower costs for child care and housing, public safety investments, and major business recruitment. She called for an immediate middle-class tax cut, more efficient government spending, and new initiatives including a Colorado River Protection Fund, elimination of the data center tax exemption, a housing acceleration fund, and an Arizona Affordability Fund financed in part by a nightly fee on short-term rentals. Hobbs also announced a new active management area for La Paz County to address groundwater depletion, defended her administration’s water and housing policies, and urged renewed funding for public schools while criticizing the ESA program for lack of accountability. She called for bipartisan action on disaster relief after floods in Globe and Miami, and condemned political violence. No legislative votes were taken; the joint session concluded with the governor’s address and the session was dissolved.

Transcript Highlights:

• Our last investment was on the Fair Share supplemental budget last year.
• It's in this supplemental budget that is quite concerning.
• I know they put a lot of funding for our schools in this sub-budget.
• This budget includes a $3.5 million transfer to the Affirming Health Care Trust Fund.
• I look forward to having discussions in the FY27 budget. Thank you. Thank you, Mr. President.

Keywords: 995, all

Summary: The Senate considered a supplemental appropriations bill and a series of amendments focused on education, health, transportation, tax administration, and oversight. Senator Kennedy spoke in support of increasing funding for DTA caseworkers to improve SNAP access and reduce delays, but then withdrew the amendment by unanimous consent. Senator O’Connor’s amendment adding $500,000 for Free Period to provide free menstrual products in public schools was adopted, as was Senator Miranda’s $1 million METCO transportation and student support amendment. Senator Collins briefly proposed extending paid family and medical leave and unemployment insurance coverage to graduate student workers, but withdrew that amendment for later discussion. Several amendments were debated and either adopted or rejected. Senator Tarr’s proposal to create oversight of the Group Insurance Commission and fund an Inspector General review was defeated after opposition argued existing oversight was sufficient. Tarr also offered amendments on MBTA deficiency fund withdrawals and on requiring 90 days’ notice before state tax code decoupling changes; both were rejected after standing votes. Senator Driscoll’s amendment for Randolph Public Schools restroom improvements was adopted, while his veterans student loan forgiveness amendment was withdrawn. Additional amendments were adopted for Bridgewater Middle School water filtration, Uffum’s Corner Health Center, and NeighborHealth’s pharmacy technician training program for local high school students. A major discussion centered on school funding and enrollment declines. Senator DiDomenico withdrew an amendment that would have provided $100 million to address Chapter 70 funding losses tied to enrollment drops, but he and Senator Collins used the floor to argue that districts facing declining enrollment and rising costs need a broader state response. The Senate also adopted a new draft of the supplemental budget and then passed the bill to be engrossed by a roll call vote, with 35 members in the affirmative and 4 in the negative. The chamber then adjourned to meet again Monday, and did so in memory of Arthur H. Tobin, a former Quincy mayor, state legislator, and clerk magistrate.

Transcript Highlights:

• Our last investment was on the Fair Share supplemental budget last year.
• And that is the fact that we are It's in this supplemental budget that is quite concerning.
• This budget includes a $3.5 million transfer to the affirming health care trust fund.
• I look forward to having discussions in the FY27 budget. Thank you.
• I look forward to having discussions in the FY27 budget. Thank you. Thank you, Mr. President.

Keywords: 1212, all

Transcript Highlights:

• usual roundtable, where we go around and ask the panelists for their perspectives on the current budget
• However, that increased SALT deduction is not in the executive budget or Senate Bill 1106.
• However, that increased salt deduction is not in the executive budget or Senate Bill 1106.
• But just noting here, the executive has included that assumption in their budget.
• This will all be very helpful as we move forward in the budget process.

Summary: The Finance Advisory Committee met for its January session to review Arizona revenue and economic conditions ahead of the budget process. JLBC staff presented the January baseline, noting projected positive cash balances through FY 2029 and about $577 million to $578 million in discretionary capacity, but also highlighting major unfunded items not included in the baseline, including federal tax conformity costs, ongoing one-time spending for state employee health insurance and school facility repairs, and administrative costs tied to H.R. 1. Staff also reviewed revenue trends by category, saying FY26 general fund revenues were running above forecast overall, with strength in retail, restaurants and bars, and individual income tax payments, while contracting and utility-related collections were weaker or flat. They also compared JLBC and executive revenue assumptions and discussed the executive’s proposed revenue changes, including border reimbursement assumptions, sports betting tax changes, data center-related tax and fee proposals, and other non-general fund measures. A major topic was income tax conformity with recent federal tax law changes. Staff explained that current Department of Revenue forms assume “straight conformity,” but the governor’s proposal and vetoed SB 1106 do not fully match those forms, creating possible amendment and timing issues for taxpayers and the department if the legislature adopts a different policy. Members also discussed the difficulty of forecasting revenues amid volatile monthly collections and uncertainty over how much of the current revenue strength will persist in the second half of the fiscal year. Danny Court of Elliott Pollack gave a broader national and state economic outlook, arguing that the U.S. has avoided recession despite several warning indicators, largely because of AI and data center investment, while employment growth has softened and inflation remains above the Fed’s target. He said Arizona remains relatively resilient, with strong population and job pipelines, but faces housing affordability constraints, slowing employment growth, and a more concentrated population forecast in the Phoenix area. Panelists generally agreed that Arizona remains in better shape than many states, though they cautioned that job growth is slowing, population estimates may be revised, and budget and revenue forecasts should be treated carefully given uncertainty in the data. No votes or formal actions were taken.

Transcript Highlights:

• We're going to go over the budget process.
• On your budget documentation, thank you. It's very helpful.
• It's becoming the reality of our budget outlook for the next several years. Mr.
• Chairman, for maintenance, you're talking about the entire budget. Mr.
• So, in 10 years, do you anticipate a budget increase?

Transcript Highlights:

• I think this would be in the health budget.
• Are you guys focusing your attention on just that part of the budget, or what other budget bills would
• Are you guys focusing your budget.
• </c><00:14:36.160><c> bills</c><00:14:36.639><c> would</c> budget or what other budget bills would budget
• We going to hold up other budget bills?

Keywords: 1187, senate, all

Transcript Highlights:

• So we've rolled out, each of the budget silos has rolled out their budgets.
• And this proposed, and the House's proposed budget. Rep. Skidmore and questions? Thank you, Mr.
• I think we will have to tighten our belts in the budget.
• Of course, the counter that we're grappling with is a $5 billion reduction in our state budget.
• And so I do think it's very important for each one of us to be engaged in the budget process.

Summary: The Ways and Means Committee met on April 2, 2025, with a quorum present and took up four bills. The committee first heard HB 4041, which would create the Corkscrew Grove Stewardship District in Collier County to finance and maintain infrastructure such as transportation, utilities, and stormwater systems without changing county regulatory authority. The bill drew no opposition, was reported favorably, and passed 14-0. The committee then considered HB 1485, which repeals Florida’s aviation fuel tax provisions. The sponsor argued the change would simplify the tax code, attract airline investment, and support lower fares and more routes. Members raised concerns about the estimated recurring $22.8 million impact on the State Transportation Trust Fund and $2 million on general revenue, and airport representatives warned of reduced grant and development funding, especially for general aviation and municipal airports. Supporters said the change would increase competition and fuel sales in Florida. The bill was reported favorably on a 12-5 vote. Next, the committee heard HB 999, which would recognize gold and silver as legal tender, allow electronic debit access to bullion accounts, and remove tax burdens on transactions involving precious metals. The sponsor and supporters described the bill as a way to protect purchasing power and provide an alternative parallel to the dollar, while opponents and some members raised concerns about consumer protections, predatory practices, privacy, and the role of the Office of Financial Regulation in rulemaking. After extensive testimony, the bill was reported favorably 19-0. Finally, the committee considered PCB WMC 25-01, which would reduce the state sales tax rate from 6% to 5.25% and also lower several related taxes, including the business rent tax, nonresidential electricity tax, mobile home sales tax, and coin-operated amusement machine tax. The proposal was estimated to reduce revenue by about $5.5 billion annually. Members discussed impacts on the budget, education funding, and whether savings would reach consumers, while supporters emphasized relief for Floridians and business competitiveness. The bill passed unanimously 19-0 and was reported favorably. The chair then noted a prior procedural apology on the record, and the meeting adjourned.

Transcript Highlights:

• So I think we have one more budget section.
• That was not budgeted."
• As you remember, the total budget for the project was $70 million, so we are on budget.
• As you remember, the total budget for the project was $70 million, so we are on budget.
• We are moving forward. total budget for the project was $70 million. So we are on budget.

Keywords: 908, all

Summary: The committee was called to order, the roll was taken, and the March 18 minutes were approved. Members then received several project and program updates, beginning with CHI St. Alexius’s behavioral health buildouts in Bismarck, Williston, and Grand Forks. St. Alexius reported that the Bismarck project remains on track for June 2027 completion, with demolition underway and final design work nearing completion. Williston reported construction is progressing, staffing recruitment is underway for psychiatrists and other staff, and an air handler replacement is creating a roughly $750,000 unbudgeted barrier that will slightly delay the timeline. Grand Forks reported its expansion is about 30% complete, with no major barriers beyond weather, and leaders said the project should be substantially complete in the first quarter of 2027. The Department of Health and Human Services then presented a series of budget and program updates. Donna Ockland explained several recent line-item transfers as technical corrections that net to zero and do not require new spending, then reviewed salaries, wages, and FTE counts, noting the department remains within its authorized staffing levels. Pat Rainer followed with an update on the Rural Health Transformation Program, saying 12 opportunities have been posted, 422 applications received, and $8.4 million obligated so far, with a goal of obligating the full $199 million by September. He described grants for workforce retention, rural rotations and housing, community gardens, school wellness, behavioral health promotion, safety net services, equipment, technology, EMS, and other initiatives, emphasizing that the program is intended to be transformational and tied to metrics. Members asked extensive questions about how rural eligibility is defined, how grants will support both rural facilities and hub hospitals, and how future years of funding will build on current awards. The committee also heard an update on certified community behavioral health clinics from Elena Zeller, who said North Dakota has been accepted as a demonstration state, implementation is underway in Williston, North Central/Minot, Fargo, and Dickinson, and care coordination and service counts are increasing. Rebecca Askins then reviewed SNAP payment error rates, saying the 2025 rate was finalized at 9.89%, with the state aiming to get below 6% through policy updates, training, data tools, and a quality assurance team. Members pressed her on the causes of the error rate, the role of the SPACES software system, and the need for accountability and improvements. Finally, Dirk Wilkie reported the state laboratory project reached substantial completion on June 12 and is on budget at about $69.95 million, though a service elevator had to be redesigned because it was too small for equipment.

Transcript Highlights:

• So I think we have one more budget section. Agenda.
• That was not budgeted.
• We actually have to submit ...a budget to CMS in August.
• In a larger population state, it's kind of a blip in their budget.
• As you remember, the total budget for the project was $70 million, so we are on budget.

Summary: The committee met with a quorum, approved the March 18 minutes, and then received a series of updates on major health-related projects and programs. CHI St. Alexius representatives reported progress on behavioral health buildouts in Bismarck, Williston, and Grand Forks, including demolition and construction milestones, staffing plans, and timelines. The Bismarck project remains on track for completion in June 2027 with about $346,500 spent to date. Williston reported construction underway, a $750,000 unbudgeted air handler replacement, active recruitment for psychiatrists and other staff, and a projected substantial completion in early 2027. Grand Forks reported about 30% completion, weather-tight status expected in August, and continued staffing ramp-up as the facility expands from its current 24-bed operation. The Department of Health and Human Services then reviewed a set of technical line-item transfers, emphasizing that they were administrative corrections with no net change in funding. The department also walked through the Salaries and Wages Block Grant and FTE counts, noting overall staffing remained within appropriated limits and that behavioral health staffing had increased. Members asked about vacancies, consultant use, and the mix of in-state versus out-of-state expertise for the Rural Health Transformation Program. HHS said it had posted 12 funding opportunities, received 422 applications, obligated $8.4 million so far, hired 26 people, and was preparing additional grant rounds and a CMS budget submission. The department said the program is structured around workforce, prevention/healthy living, care closer to home, and technology/data, with ongoing stakeholder engagement and community forums. The committee also heard on the certified community behavioral health clinic implementation plan, SNAP payment error rates, and the state laboratory project. HHS said CCBHC certification is being implemented in four regions—Williston, Minot/North Central, Fargo/Southeast, and Dickinson/Badlands—with care coordination expanding and baseline data still being collected. On SNAP, the department reported a 2025 payment error rate of 9.89%, acknowledged cost impacts under HR1, and said it is using training, system changes, and pre-authorization quality checks to reduce errors toward a 6% target over the next 6 to 12 months. Finally, Public Health reported the state laboratory reached substantial completion on June 12, with total costs at $69.95 million of the $70 million budget, though a service elevator issue will require a new lift to be added using contingency funds.

Transcript Highlights:

• As you know, over the last couple of years, there have been pretty big budget cuts.
• Each of those buckets by itself is greater than our entire annual budget.
• Thank you for the opportunity to present on this next budget change proposal.
• I think this is the smallest budget ask that I've seen before me.
• I also have with me our budget director, Abel Escobar.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• We've already cut the budget by $800,000, and we've passed a balanced budget.
• budget, as far as I can tell from what I know of this bill.
• Budgets were slashed.
• We adopted a balanced budget this year, but we cannot continue without support.
• We've been able to maintain a balanced budget, even with the rising cost of inflation.

Bills: HB2

Keywords: disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace, medical examiner, county judge, sheriff, mayor, emergency coordinator, emergency manager license, volunteer management system, volunteer registration, criminal history check, background check, Texas Division of Emergency Management

Summary: The committee continued public testimony on House Bill 2, which would make major changes to public school funding, teacher pay, special education, early learning, school safety, and related programs. Many superintendents and education advocates supported the bill’s overall direction but urged changes, especially a larger basic allotment and more flexible funding for rural and small districts. Witnesses from Paint Creek, West Hardin, Cushing, Blooming Grove, Mildred, Buffalo, Plano, and rural school groups said the bill’s targeted raises and new requirements would not fully cover inflation, TRS/Medicare costs, transportation, insurance, or support staff salaries, and several asked the committee to restore the House version’s higher basic allotment and small-school allotment. Charter school representatives supported the facilities funding changes and said charter schools need state help because they cannot levy taxes, while also noting the funding gap with ISDs. Fine arts advocates asked the committee to restore the fine arts allotment, arguing arts improve engagement, attendance, and academic outcomes, especially in rural and at-risk communities. Early learning and special education witnesses supported parts of the bill but raised concerns about pre-K restrictions, disability-related pre-K access, and the need to preserve or clarify special education provisions and mental health oversight language. Several witnesses praised the teacher pay raise, teacher incentive allotment expansion, and teacher preparation investments, saying they would help recruit and retain educators and improve student outcomes. Others, including counselors and support staff advocates, argued the bill should also include raises for counselors, nurses, librarians, bus drivers, custodians, aides, and other non-teaching employees who keep schools running. One witness from the Texas Counseling Association opposed the substitute because it removed a counselor pay provision, warning of counselor shortages and inequities. A parent and special education advocate said the bill’s structure creates too many strings attached and asked for a larger basic allotment instead of more targeted funding. Another witness from Mental Health America urged keeping the collaborative task force on public school mental health services through 2031, and a disability rights advocate said the committee substitute appears to omit some special education items that were in the House version. The committee also briefly took up House Bill 6, a school discipline bill. After questions about automatic mandatory expulsion for vape possession and concerns about younger students, the committee adopted the substitute and voted to report HB 6 favorably to the full Senate by a 9-1 vote, with Senator Menendez voting no and Senators West and Menendez expressing reservations but supporting further discussion. After that vote, testimony on HB 2 resumed. Senators used the hearing to ask about the bill’s cost, the difference between the basic allotment and the bill’s targeted funding buckets, and whether the permanent teacher pay increase shifts pressure off districts. The bill’s supporters emphasized that it represents an historic, roughly $8 billion investment and that many of the new funding streams are intended to be permanent or to address specific district needs.

Transcript Highlights:

• </c> you can go and see that our budget you can go and see that our budget requests<00:05:17.880><c>
• So we are to include the forensic laboratory. in your budget request here or is that in your budget request
• </c><01:14:20.040><c> at</c> 44 employees are currently budgeted at 44 employees are currently budgeted
• Table and then you can tell us all your budget requests. Okay.
• Thank you very much for adding it to the budget.

Keywords: 912, senate, all

Summary: The committee heard budget testimony first from the Department of Corrections and Rehabilitation. Director Tommy Johnson outlined short-term goals to reduce overcrowding, improve living and working conditions, fill vacancies, expand mental health services, and update the correctional master plan. He said the department is still dealing with severe overcrowding at facilities such as OCCC and HCCC, with 947 people at OCCC against a design capacity of 628, and noted 938 inmates are currently housed on the mainland because of temporary repairs at Halawa. He also reported progress on staffing, saying the correctional officer vacancy rate has dropped from 34.3% to 24% through expanded recruitment. The department’s major budget request was $30 million for planning and design for a new Old Triple C project, along with other requests for re-entry services, identification documents, security systems, radios, sink-toilet modules, and trauma-informed care. Members asked about the timing and scope of the OCCC project, courtroom space in new facilities, and the department’s plan to use the funding to improve re-entry and reduce recidivism. The committee then heard from the Department of Law Enforcement on a wide range of priorities. The department described requests to expand agricultural crime enforcement, traffic enforcement, illegal fireworks enforcement, and facilities such as a police building at the DKI airport, a state training center, and new police facilities in central and Leeward Oahu. It also discussed a major IT request for a statewide law enforcement and critical infrastructure notification platform, plus funding for grants management, the Wahiawa Civic Center and court complex, the prescription monitoring program, narcotics enforcement operations, and the narcotics lab. A significant portion of the discussion focused on a proposed traffic enforcement program for commercial vehicle inspections, speeding, and DUI enforcement, which the department said would be funded with federal dollars and would operate concurrently with county police. Committee members questioned whether the effort duplicated county jurisdiction and how the program would be trained and staffed. Members also pressed the department on salary disparities for deputy sheriffs and related vacancies, and the department said the administration was working on a supplemental agreement and placeholder funding to address the issue. Additional discussion covered agricultural crime staffing, the Silver Alert program, and expansion of the forensic lab to handle explosives, firearms, and related evidence. No votes were taken in the portion provided, and the meeting moved from the corrections presentation to the law enforcement budget review with questions and answers throughout.