Transcript Highlights:

• I don't want to just educate anymore and have them leave.
• Some of them are going to leave the country completely.
• , not leaving, competing when they leave.
• And so they're leaving in droves.
• We don't have an annual conference on downtowns.

Committee: Joint Joint Committee on Economic Development and Emerging Technologies

Summary: The committee held a hearing on Governor Healey’s economic development proposal, H.5386, the Mass Winds Act, with the governor and administration officials describing it as a follow-on to the 2024 Mass Leads Act. They said the bill is intended to help Massachusetts compete globally for capital, talent, and companies by creating a Global Mass initiative, including a proposed $50 million innovation access fund and $20 million for site development to help international firms locate or expand here. The administration also highlighted about $305 million in new bond authorizations, plus operating proposals such as lowering the LLC filing fee, expanding the small business energy tax exemption, funding internship incentives, and supporting downtown revitalization and the creative economy. Committee members and witnesses focused on several policy areas within the bill. On talent, Northeastern University supported the internship tax credit, and the Latino Empowerment Advisory Council backed a provision waiving redundant English testing for internationally trained nurses who have already demonstrated proficiency in practice. On labor mobility, the governor defended changes to the non-compete law as closing a loophole, while attorney Russell Beck opposed the revisions, arguing they would upset the 2018 compromise and could reduce employer-provided compensation. Municipal and housing witnesses supported codifying site plan review and broader zoning reforms, while others urged attention to affordable housing, tiny homes, and commercial-to-residential conversions. Local officials and municipal groups generally supported the bill’s downtown, arts, and planning provisions but asked for more detail on implementation and infrastructure, especially around energy, water, and data centers. The Massachusetts Municipal Association said the bill’s standardized site plan review and downtown investments could help communities, but stressed the need for close state-municipal partnership. The AFL-CIO asked for trigger language to preserve labor rights if federal protections weaken. The Secretary of the Commonwealth’s office opposed the LLC fee reduction, warning of significant revenue loss and possible fraud concerns. No votes were taken; the hearing was informational, with the committee accepting written testimony afterward.

Transcript Highlights:

• So, there's an annual corrections bill, just like the revisor's bill.
• So there's an annual bill to correct kind of the last thing, the last ship that leaves, just to make
• So,<00:03:44.159><c> there's</c><00:03:44.400><c> an</c><00:03:44.720><c> annual</c><00:03:45.200><c>
• corrections</c><00:03:45.840><c> bill</c> So, there's an annual corrections bill So, there's an annual
• So there's an annual a corrections bill.

Bills: HF3321

Committee: House Rules and Legislative Administration

Transcript Highlights:

• The bill also provides for an annual adjustment for inflation ongoing, as measured by Annual adjustment
• share and a family leave share.
• share and a family leave share.
• share and 48% for the family leave share.
• for the family leave share would be based on a formula that is actually tied to the medical leave share

Bills: HB2675 , HB2681 , HB2714 , HB2688 , HB2481 , HB2116 , HB1408

Committee: House Appropriations

Keywords: accounts, finance, business regulation, transparency, audits, cannabis, license fees, regulatory framework, revenue generation, legalization, HB 2714, caseload forecasting, food assistance, SNAP, Supplemental Nutrition Assistance Program, state food assistance, budget forecasting, caseload forecast council, caseload forecast supervisor, Washington State

Transcript Highlights:

• And the next training was—the next recommendation was annual training.
• Next, moving to annual... Without objection, the recommendation will be adopted.
• Next, moving to annual training for faculty and staff, Dr. Smith.
• this work or leaving us.
• this work or leaving us.

Summary: The task force met with a quorum to review and adopt final recommendations responding to the death of Caleb Wilson and broader hazing prevention concerns in Louisiana higher education. Members and the Wilson family discussed the need for clearer legal definitions and stronger accountability, including whether Southern University’s expulsion of the Omega Psi Phi chapter was permanent; leaders said the current law leaves ambiguity and a legislative fix is needed to define suspension and expulsion. The committee also approved the November 3 minutes and received updates on hazing sanctions and hearing panel processes across the public postsecondary systems. A major portion of the meeting focused on recommendations for annual hazing-prevention training for students, advisors, faculty, and staff, plus training for conduct panel members. Witnesses from LSU and other systems described current practices, including online modules and in-person training, while members raised concerns about scope, mandatory reporter obligations, and whether all employees should be covered. Several recommendations were adopted, including annual student training, annual advisor training, annual faculty and staff training with an amendment to apply to “appropriate” personnel, and a sustainable funding mechanism to support training and reporting. The task force also adopted an amnesty policy recommendation to encourage reporting and help-seeking, clarified that it would be left to legislation whether organizational amnesty is included, and supported reverting the evidentiary standard in institutional hazing proceedings from clear and convincing evidence back to preponderance of the evidence. The committee further approved recommendations to add hazing incidents, prevention efforts, and compliance data to the annual power-based violence report, to impose clear penalties for noncompliance tied to bond commission consequences, and to align hazing reporting penalties with existing power-based violence reporting rules. For K-12 schools, the task force discussed expanding bullying and hazing materials to nonpublic schools, updating educational materials, and improving data collection. Closing remarks from student members, university leaders, and the Wilson family emphasized that hazing is a culture problem requiring education, accountability, and sustained leadership, and several system presidents and LSU representatives pledged to implement the recommendations and continue working with the legislature.

Transcript Highlights:

• I don't want to just educate anymore and have them leave.
• Some of them are going to leave the country completely.
• , not leaving, competing when they leave.
• And so they're leaving in droves.
• We don't have an annual conference on downtowns.

Committee: Joint Joint Committee on Economic Development and Emerging Technologies

Summary: The committee held a hearing on Governor Healey’s economic development proposal, H. 5386, also referred to as the Mass Winds Act, focused on global investment, talent, innovation, housing, and business competitiveness. Governor Healey, Secretary of Economic Development Eric Paley, and Secretary of Administration and Finance Matt Gorzkowicz described the bill as a response to federal uncertainty and global competition, building on the 2024 Mass Leads Act. They highlighted proposed investments in a Global Mass initiative, including a $50 million innovation access fund and $20 million for sites to help international companies locate or expand in Massachusetts, along with support for AI, quantum, robotics, defense innovation, climate tech, downtown revitalization, and creative/cultural economy projects. They also emphasized measures to lower business costs, including reducing the LLC filing fee, expanding the small business energy tax exemption, and streamlining housing and development rules. Committee members questioned the administration about non-compete reform, AI and data-center infrastructure, housing affordability, and whether the bill would help retain workers and companies in Massachusetts. The governor and secretaries argued that the non-compete changes would restore the original compromise by requiring any alternative to garden leave to be negotiated at separation, and they said the bill’s housing and workforce provisions are intended to help young workers stay in the state. They also said Massachusetts is already investing in AI training, an AI hub, and energy-related planning, while acknowledging that data-center growth will require careful attention to water, electricity, and ratepayer impacts. Several witnesses testified on specific sections. Northeastern University supported the internship tax credit, saying experiential learning helps students gain jobs and remain in Massachusetts. The Latino Empowerment Advisory Council supported the waiver of redundant English testing for internationally trained nurses, saying it would speed entry into the workforce without lowering clinical standards. Russell Beck opposed the non-compete changes, arguing they would undermine the 2018 compromise and could reduce other forms of employee compensation. The Secretary of the Commonwealth’s office opposed the LLC fee reduction, citing revenue loss and fraud concerns. Municipal and regional groups, including the MMA and the Metro Mayors Coalition, supported site plan review codification and downtown/arts investments, while urging continued municipal input. The AFL-CIO asked for trigger language to preserve labor protections if federal law changes, and business and industry witnesses generally supported the bill’s competitiveness and global investment provisions. No votes were taken; the hearing was informational, with written testimony invited after the meeting.

Transcript Highlights:

• I don’t want to just educate anymore and have them leave.
• Some of them are going to leave the country completely.”
• , not leaving, competing when they leave.
• And so they're leaving in droves.
• We don't have an annual conference on downtowns.

Bills: H5386

Committee: Joint Joint Committee on Economic Development and Emerging Technologies

Keywords: economic development, innovation, investment, housing, small business, global trade, infrastructure

Transcript Highlights:

• I presume that the annual inspection.
• they</c> receive the annual leave for which they receive the annual leave for which they um<01:41:24.159
• There were a few annual bonuses.
• Um, I think annual increase.
• </c> to ask that question and really um leave to ask that question and really um leave you<02:00:21.599

Committee: House Health, Human Services & Elderly Affairs

Transcript Highlights:

• In Contra Costa County alone, our annual benefit is $21 million.
• So I really do hope But we can't leave poor people out in the cold like that again.
• CalWORKs serves roughly 360,000 families and 700,000 children annually.
• ongoing annual funding and $190 million in one-time augmentations.
• Leaving kids to navigate the system alone is not a plan.

Summary: The Assembly Budget Subcommittee on Human Services opened its first hearing of the year with a discussion centered on CalFresh, the Department of Social Services, and related anti-poverty and immigrant services programs. Chair Jackson framed the hearing as a response to the “historic and enormous challenges” created by H.R. 1, emphasizing that the committee’s goal was to minimize harm to vulnerable Californians. No votes were taken in the hearing. The first major topic was the impact of H.R. 1 on CalFresh eligibility and administration. CDSS estimated major federal funding reductions, with hundreds of thousands of Californians potentially losing benefits under new time limits and work requirements for able-bodied adults without dependents, and additional losses among certain non-citizen groups. County welfare directors, eligibility workers, SEIU, and other advocates argued that counties are underfunded and understaffed to implement the new rules, and urged release of the previously authorized $20 million General Fund, a county match waiver, and an additional ongoing workforce investment. LAO and the Department of Finance said they were reviewing the administration’s proposals and emphasized the need to use existing data, automation, and statutory direction to reduce administrative burden and improve implementation. A second panel addressed county administrative backfill and the broader fiscal effects of H.R. 1. CDSS explained that the law shifts more administrative costs to the state and counties beginning in federal fiscal year 2027 and could also create future state benefit costs tied to payment error rates. County and food bank representatives warned that many counties will struggle to absorb the higher match and that penalties tied to payment error rates could worsen budget pressure. Members pressed Finance and CDSS for clearer timelines, written responses, and more detailed workload assumptions, while Finance said it was still analyzing the federal guidance and county resource needs. The final major topic was the California Food Assistance Program (CFAP) and possible state responses for people losing federal CalFresh eligibility. CDSS said CFAP remains limited by statute and by the federal structure it currently uses, but that the planned expansion to Californians age 55 and older regardless of immigration status remains on track for October 1, 2027, subject to funding. Immigrant advocates urged the state to fold newly excluded humanitarian immigrants into CFAP and to invest in outreach and administration, while Western Center on Law and Poverty proposed a broader state-funded anti-hunger response for people cut off by H.R. 1. LAO noted that the CFAP expansion is difficult to estimate and that further policy and technical work would be needed to assess costs and implementation options.

Transcript Highlights:

• would affect things like leave balances, payouts, and sick leave conversions to service credit.
• would affect things like leave balances, payouts, and interact with sick leave conversions to service
• We are estimating total annual costs of $218 million.
• Teachers have parental leave currently.
• They have 12 weeks of parental leave, but they are required to exhaust all of their sick leave, and then

Summary: The committee heard presentations on the Governor’s May Revision TK-12 education proposals, beginning with Proposition 98. The Department of Finance explained that the minimum guarantee rises by about $6.4 billion relative to the January budget across the three-year window, with a total of $124.9 billion in 2024-25, $125.1 billion in 2025-26, and $127.1 billion in 2026-27. Finance also described revised settle-up and reserve actions, including maintaining a $3.9 billion settle-up balance, increasing discretionary deposits into the Prop. 98 reserve, and ending with a projected reserve balance of about $10.3 billion. The Legislative Analyst’s Office said the overall estimates were reasonable but urged the state to fully fund the guarantee and use other budget actions or reserves to manage volatility rather than delay settle-up payments. Members questioned the rationale for leaving the $3.9 billion unsettled, and Finance said the amount reflects revenue uncertainty and the risk of overappropriating Prop. 98 if revenues later fall. The committee then reviewed the Department of Education portion of the May Revision. Finance said the budget adds positions and state operations funding for CDE and includes trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, and other programs. The LAO highlighted concerns and recommendations on several proposals, including the size and structure of the LCFF increase, the special education base-rate increase, additional one-time community schools funding, literacy coach and math professional development augmentations, the multilingual screener, inclusive college grants, homelessness grants, and the proposed paid pregnancy disability leave mandate. CDE supported the special education increase, paid pregnancy leave, community schools, homelessness funding, literacy and math investments, and preschool parity, while urging more support for county offices of education and clearer definitions and implementation details for some programs. Finance said the paid pregnancy leave proposal would cost an estimated $218 million annually and is intended as a recruitment and retention measure. In the Commission on Teacher Credentialing item, Finance proposed funding for legal staffing tied to SB 848 and educator misconduct cases, plus funding and fee changes to support a statewide transcript review platform for subject matter competency and additional support for the residency technical assistance center. The LAO said it had no concerns with the staffing for misconduct and SB 848, recommended the transcript review platform and related fee increase if the platform moves forward, and recommended rejecting the residency technical assistance center expansion because current funding lasts through 2029. CTC said the misconduct workload has grown over the last five to six years and that AI would be used only as a backstop to human review in the transcript system. Public commenters were split, with unions and education groups supporting special education, paid pregnancy leave, community schools, homelessness funding, and literacy investments, while opposing the $3.9 billion settle-up delay and the reduction to preschool COLA.

Transcript Highlights:

• This 10 percent, is that annual or is that monthly?
• Can you pay $2,300 out of your general fund to the street fund annually?
• This 10 percent, is that annual or is that monthly?
• Excuse me, it's 10% of the annual, annual unrestricted general fund revenues or 10% of the monthly general
• So it would be annually.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• And House Bill 5399, establishing a sick leave bank for Carla Johnson, an employee of the Department
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• for the sale of all of all. for the sale of all alcoholic beverages to be drunk off premises to an annual
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• truly prepared, and now before the House for final passage: House 5245, an act establishing a sick leave

Summary: The House opened with the Pledge of Allegiance and then adopted several resolutions, including commendations for Praxia Awareness Day and congratulations to an Eagle Scout. It also suspended Joint Rule 12 to allow a Barnstable petition concerning regulation of vessel transportation in Marston Mills and Osterville to go to the Committee on Transportation. The House then took up a Steering, Policy and Scheduling report and advanced three bills: a Westford local option liquor license bill, a Westfield liquor license conversion bill, and a sick leave bank bill for Carla Johnson of the Department of Unemployment Assistance. All were ordered to a third reading. The House later considered and passed several measures, including a sick leave bank for Courtney Cochran of the Department of Children and Families, a Senate bill allowing Taunton to establish a separate water billing rate for manufactured housing, and a Hope Dale bill creating the office of town administrator. It also engrossed a Chelmsford bridge naming bill and a Sudbury senior property tax exemption bill. On Senate 2544, concerning the number of registered voters needed to petition for a special town meeting in Andover, the House adopted an amendment adding an immediate effective date before passing it to be engrossed as amended. The chamber observed a moment of silence in memory of Phyllis Simon of South Boston, described as a longtime educator and public servant. At the end of the session, the House adopted an order to adjourn and then adjourned to meet the following Monday at 11 a.m. in informal session.

Transcript Highlights:

• of all alcoholic beverages to be drunk off the premises; and House Bill 5399, establishing a sick leave
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• for the sale of all of all. for the sale of all alcoholic beverages to be drunk off premises to an annual
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• Off-premises to an annual license for the sale of all alcoholic beverages to be drunk off-premises.

Summary: The House opened with the Pledge of Allegiance and then adopted two resolutions: one commending individuals and families across the Commonwealth and designating May 14, 2026 as Praxia Awareness Day, and another congratulating Galvin Trautman on earning the rank of Eagle Scout. The House also suspended Joint Rule 12 to allow a petition by Kip A. Diggs concerning regulation of vessel transportation in Marston Mills and Osterville in Barnstable to go to the Committee on Transportation. The House then advanced several local and personnel bills. It scheduled and gave second reading to bills authorizing Westford to grant one additional off-premises alcohol license, allowing Westfield to convert a seasonal off-premises alcohol license to an annual one, and establishing a sick leave bank for Carla Johnson of the Department of Unemployment Assistance. These bills were ordered to a third reading. The House also took up and passed to be enacted Senate 2652, authorizing Taunton to establish a separate billing rate for water supply to a manufactured housing community, and House 4784, providing for a town administrator in Hope Dale. On third reading, the House passed to engrossment House 4723, designating a bridge in Chelmsford as the Ferreira Brothers Bridge, House 4755, amending the means-tested senior citizen property tax exemption in Sudbury, and Senate 2544, regulating the number of registered voters who may petition for a special town meeting in Andover, as amended by adding an immediate effective date. The House also adopted the emergency preamble and later passed to enact House 5245, establishing a sick leave bank for Courtney Cochran of the Department of Children and Families. The session included a moment of silence for Phyllis Simon of South Boston before adjournment to meet again Monday at 11 a.m. in informal session.

Transcript Highlights:

• of all alcoholic beverages to be drunk off the premises; and House Bill 5399, establishing a sick leave
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• for the sale of all of all. for the sale of all alcoholic beverages to be drunk off premises to an annual
• convert a seasonal license for the sale of all alcoholic beverages to be drunk off premises to an annual
• Off-premises to an annual license for the sale of all alcoholic beverages to be drunk off-premises.

Transcript Highlights:

• We'll go ahead and leave this one open, right? We're leaving this item open.
• We're leaving this item open. and we're leaving this item open and we'll move on to item number five
• So it would leave that void in your communities.
• So it would leave that void in your communities.
• You can never leave the gay. You just ruin the whole meeting. Oh, yeah.

Summary: The subcommittee heard budget proposals for Exposition Park, the California Science Center, the Department of Financial Protection and Innovation (DFPI), the Debt Collection Licensing Act program, and the Board of Registered Nursing. For Exposition Park, the administration requested $96.5 million for utility replacement, site improvements, code compliance, accessibility, and safety upgrades, plus $1.698 million for operational sustainability funded from the park’s improvement fund. The LAO said the proposals had merit but noted the first item could be downscaled if needed because of the state’s budget condition. Members emphasized the park’s deferred maintenance, major upcoming events, and the need to protect a statewide asset; both Exposition Park items were held open. The Science Center requested funding to open and operate the new Air and Space Center, including staffing for the facility that will display the Space Shuttle Endeavour and expand exhibit space. The LAO supported the proposal but suggested the Legislature consider alternative funding sources such as admission fees, parking fees, or private funds. Members discussed the Science Center’s public-private funding model, the importance of keeping access affordable for disadvantaged communities, and the tradeoff between free admission and long-term operating support. The item was also held open. DFPI sought continuation of expenditure authority for the California Consumer Financial Protection Law, debt collection licensing, and broker-dealer/investment adviser workloads, and the LAO recommended limited-term funding with more cumulative reporting before permanent funding is considered. Members pressed the department on whether its workload and spending are tied to measurable outcomes rather than just activity counts, and DFPI cited complaint resolution, enforcement actions, and restitution recovered as examples of impact. The Debt Collection Licensing Act item drew similar LAO comments, but members raised stronger concerns about the financing model, the gap between projected and actual licensee counts, and whether spending levels are justified; that item was held open. The Board of Registered Nursing requested $1.4 million for eight special investigators to address rising complaints, and the board said most complaints are resolved through investigation, referral, probation, or rehabilitation rather than discipline. Members asked about complaint backlogs, viral and potentially automated complaints, bias in care, and the lack of broader inspection authority; the item was also held open.

Transcript Highlights:

• Americans work annually 125 more hours yearly than workers in Canada, 204 hours more annually than workers
• in Japan, 279 more annually than workers in the UK, and 470 hours more annually than people in Germany
• Americans work annually 125 more hours yearly than workers in Canada, 204 hours more annually than workers
• in Japan, 279 more annually than workers in the UK. in Japan, 279 more annually than workers in the
• We're going to see people leaving less.

Summary: The Labor and Workplace Standards Committee held public hearings on three bills. HB 2524 would create a State Security Guards Industry Standards Board within L&I to set minimum standards for security guard pay, leave, benefits, and training, funded in part by a $25 transfer from security licensing fees. The bill’s sponsor and labor supporters said it would professionalize the industry, improve safety, and address high turnover and inadequate training. Security workers described unsafe conditions, retaliation, and being expected to handle crises without enough support. Opponents from business and security companies argued the bill duplicates existing licensing and training rules, would raise costs, and gives too much authority to an unelected board; L&I said it had administrative concerns about timing and fee handling. The hearing on HB 2524 was then closed. HB 2513 would change plumbing license suspension rules by keeping the current three-infractions-in-three-years standard for residential work, while creating a five-infractions-in-five-years standard for non-residential plumbing violations. The sponsor and supporters from mechanical contractors and labor said repeat violators undermine safety and fair competition, and that the bill gives L&I a stronger enforcement tool against bad actors in commercial work. Several plumbing contractor groups opposed the bill as written, focusing on a new subsection they said was vague and could create an undefined corrective process or overly broad discretion for L&I; they asked that the subsection be removed or the bill be delayed for more stakeholder work. L&I requested an effective date of January 1, 2027 to allow time for rulemaking. HB 2611 would reduce the standard workweek from 40 hours to 32 hours starting January 1, 2028, and would also change paid sick leave accrual from one hour per 40 hours worked to one hour per 32 hours worked. The sponsor and labor supporters said a shorter workweek would improve work-life balance, reduce burnout and turnover, and could increase productivity, citing examples from San Juan County and other places. Business, hospitality, grocery, construction, agriculture, and janitorial representatives opposed the bill, saying it would raise labor costs, reduce hours and flexibility, complicate scheduling, and hurt industries with thin margins or seasonal demands. The committee heard no votes or final action on HB 2611 before closing the hearing and ending business for the day.

Transcript Highlights:

• It doesn't leave the newspapers out of the conversation, which is very important to them because our
• It doesn't leave the newspapers out of the conversation, which is very important to them because our
• them behind as we're working can't leave them behind as we're working on<00:07:40.560><c> these</c><
• The length of this annual incentive payment shall not exceed seven years for new construction and 15
• </c><00:13:53.519><c> incentive</c> The length of this annual incentive The length of this annual incentive

Committee: Senate State & Local Government

Transcript Highlights:

• </c><00:13:26.680><c> updates</c> colleague and I did the annual updates colleague and I did the annual
• Without an appropriation, dollars can't leave the state treasury just with transfer language.
• </c><00:20:13.960><c> the</c> appropriation dollars can't leave the appropriation dollars can't leave
• </c><00:35:59.200><c> the</c> siiz fits-all approach and leaves the siiz fits-all approach and leaves
• ><c> agencies</c><00:36:01.040><c> to</c> leaves it flexible for agencies to leaves it flexible for agencies

Committee: Senate Finance

Transcript Highlights:

• What I mean by that is annual cost of living increases cannot What I mean by that is annual cost of living
• This assumption models annual salary increases due to economic forces.
• You can see there: if you measure inflation just annually, the average annual inflation rate from 2005
• in the program when they leave and claim benefits out of state.
• In contrast to paid leave, premium rate in statute is 0.58% of wages.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on October 8 with introductions from council members and then heard a presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems were 100% funded as of June 30, 2024, with open plans above 95% funded, and explained that strong investment returns and prior funding policy decisions contributed to that position. The actuaries recommended increasing the inflation assumption from 2.75% to 3%, increasing general salary growth by 0.25%, keeping the Plan 1 membership growth assumption at 1%, and raising the assumed investment return to 7.25% for all plans. They also reviewed estimated budget impacts and explained that investment gains are smoothed over up to eight years, while other assumption changes flow directly into future valuations. The council also heard comments from the Economic and Revenue Forecast Council and the State Investment Board, both of which said their inflation and return outlooks were broadly consistent with the actuary’s recommendations. ERFC discussed inflation trends, the Federal Reserve’s 2% target, and why Seattle-area inflation tends to run above the national average, while SIB said its 15-year inflation assumption is 2.5% and that 7.25% is a reasonable long-term return assumption. Public testimony included support for maintaining Plan 1 funding efforts and caution from the Association of Washington Cities about the budget impact of higher assumptions and the risk of overfunding pensions. The council then considered and adopted a motion to maintain the current prescribed long-term economic assumptions, with a roll call vote of 4-2. It next considered the long-term services and supports trust program and, after hearing an overview from DSHS and OSA, adopted the recommended WA Cares premium rate of 0.58% by a unanimous 6-0 vote. OSA said the WA Cares program is still in its learning phase, with no benefits yet paid, and recommended no premium change at this time regardless of the outcome of the related ballot measure. The council also elected Katie Chapman as chair and then adjourned.

Transcript Highlights:

• The annual investment plan, I'm sure you're familiar with.
• we produce it annually.
• And the baby boomers have come into the workforce and when they're leaving.
• As I said, they do it annually.
• So Representative Lujan had to leave.

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• So do we anticipate providers leaving?
• So I kind of want to, so do we anticipate providers leaving?
• Has there been a history that shows that yes, providers will leave?
• increase of $2.8 billion annually.
• in 2024 to $1 billion annually in 2025 and ongoing, representing an increase of $500 million annually

Summary: The subcommittee heard an overview of the Department of Health Care Services’ proposed budget, including a $229.1 billion total-funds budget and projected Medi-Cal enrollment decline as redeterminations continue. Members focused heavily on the fiscal and programmatic effects of prior budget solutions and federal changes, especially the elimination of General Fund-supported Prop. 56 dental supplemental payments beginning July 1, 2026, the hospice utilization-management change, and the impact of reduced caseloads alongside rising health care costs. DHCS said it is still completing required access and rate-reduction analyses for the dental cuts and has been engaging stakeholders, but could not yet quantify the real-world effect on utilization or provider participation. The committee also reviewed the November 2025 Medi-Cal local assistance estimate, which shows higher General Fund spending despite lower enrollment, driven by managed care rate growth, Medicare cost growth, state-only claiming, and federal policy changes. The hearing then turned to provider taxes and federal H.R. 1 constraints, with extensive discussion of the MCO tax, the hospital quality assurance fee, and other health care-related taxes. DHCS explained that H.R. 1 phases down allowable tax levels and tightens “generally redistributive” rules, making the current MCO tax structure and the proposed higher hospital fee levels difficult or impossible to renew as originally designed. Staff and the LAO described the tradeoff between preserving Medi-Cal funding and avoiding higher costs on private providers and consumers. Members asked about options for preserving revenue, including possible amendments to Prop. 35 or returning to voters, and were told the department is still evaluating approaches while federal guidance remains in flux. The committee also reviewed hospital payment increases already implemented through state-directed payments, with DHCS noting that H.R. 1 will force those payments down to Medicare levels over time. Several budget change proposals were discussed and left open, including requests tied to the managed care final rule, managed care operations, hospital value strategy, long-term care payment transparency, and interoperability requirements. The committee also heard about a one-year trailer bill extension for skilled nursing facility financing, including continuation of the SNF workforce standards program, the SNF quality assurance fee, and annual rate growth, while the department develops a longer-term financing redesign for 2027-28. Members expressed skepticism about repeated rate reform efforts and questioned whether a one-year extension of the eliminated workforce quality incentive program should be restored during the transition. Finally, Covered California presented its budget and enrollment update, reporting that the expiration of the federal enhanced premium tax credit is expected to reduce affordability significantly, with average premiums roughly doubling for many enrollees and as many as 400,000 Californians potentially losing marketplace coverage over time. The exchange said California’s $190 million subsidy program is helping lower-income enrollees, but not enough to offset the federal loss, and it is also implementing a new gender-affirming care benefit and awaiting federal action on benchmark plan changes.