Transcript Highlights:

• So I'm curious as to whether this is incorporated into the governor's budget.
• ><c> governor's</c> um is incorporated into the governor's um is incorporated into the governor's budget
• so we just passed the house budget so we just passed the house budget<00:21:37.679><c> over</c><00:21
• over to the Senate yesterday and budget over to the Senate yesterday and I<00:21:41.279><c> didn't</
• </c><00:29:04.480><c> um</c><00:29:04.760><c> and</c> the governor's budget um and the governor's budget

Keywords: 910, house, all

Transcript Highlights:

• How do those expected things, how does that work into facility budgeting?
• We point things out, but that's not part of our budgeting process.
• for budget, let's say that.
• and under compensated for budget let's say that and so it's just a trickle down that squeaky for budget
• So wouldn't that come out of the budget of the Lincoln Regional Center?

Summary: The Health and Human Services Committee held an invited-testimony hearing on LR 425, which examines the Whitehall campus in Lincoln and possible long-term options for youth currently served there. Chair Brian Hardin explained that Whitehall houses two separate programs for adolescent males: a substance use program and a youth-who-sexually-harm program. Testimony from DHHS officials described Whitehall as a Joint Commission-accredited psychiatric residential treatment facility (PRTF) that provides about 40 hours of weekly programming, family involvement, school services, and community reintegration activities. Officials said the department is evaluating whether the programs should remain at Whitehall or move to another state-owned facility, with Hastings described as the department’s preferred alternative because it is more residential in design than a youth rehabilitation treatment center (YRTC).

Transcript Highlights:

• Good afternoon, and welcome to Budget Subcommittee No. 5 on State Administration.
• subcommittee, which we want to welcome our new member to this budget subcommittee, which we want to
• welcome our new member to this budget subcommittee, which we...
• Just wanted to thank you for your leadership and thank you again to the staff on your budgets for all
• That includes the proposed budget year allocation.

Summary: The Budget Subcommittee on State Administration held an informational hearing on whether the Employment Development Department is ready for the next recession, with a focus on EDD Next, the department’s long-running technology modernization effort. The Legislative Analyst’s Office reviewed EDD’s major benefit programs, the history of prior modernization attempts, the current Integrated Claims Management System work, and the department’s remaining risks, including continued reliance on a COBOL-era mainframe and the challenge of adapting quickly to future federal or state policy changes during a downturn. The LAO also explained that most pandemic-era fraud was tied to temporary federal unemployment programs rather than California’s core UI system, and that the state’s UI loan repayment is not largely attributable to fraud. Members raised concerns about the cost of repeated modernization efforts, paper versus online claims, appeal overturn rates, WARN notices, and legislative oversight of the project. EDD’s panel said the department has made substantial customer-service and processing improvements, including online self-service tools, improved call center features, identity verification, fraud controls, language access upgrades, and a new document management system. Officials reported that as of early 2026, about 83% to 85% of claims across programs were being processed timely within two weeks, and said paid family leave delays in 2024 were tied to the transition into the disability insurance online platform and seasonal workload patterns. They also said EDD is working with the Department of Technology on EDD Next and that the project will proceed in phases, with paid family leave and disability insurance first and unemployment insurance later. Members pressed EDD on persistent paid family leave backlogs, the share of paper applications, response times for constituents, and whether the department tracks long-running cases and WARN notice trends. EDD said its service standard is generally immediate response through phone, chat, or callback tools, while more complex cases can take longer because the department may be waiting on claimants or medical providers. The department also said it tracks call outcomes and outstanding cases, and that it can provide additional data on WARN notices. No votes were taken, and the hearing ended with plans to continue discussing EDD Next and paid family leave at a later March 10 budget hearing.

Transcript Highlights:

• Those are really the only increases reflected in the budget.
• I do want to add here my gratitude in these challenging budget times.
• </c> gratitude in these challenging budget gratitude in these challenging budget times.<00:13:49.600>
• of 220 hours in non-budget years. this of 220 hours in non-budget years. this year.<00:15:48.560><c>
• year and the non-budget year.

Keywords: 1187, senate, all

Transcript Highlights:

• Members of the Assembly, House Bill 1001 is the governor's budget.
• I know this is one of the first budgets, or at least big budgets with FTEs, that we've seen.
• Number two, as far as doubling and tripling the budget, take a look since 2010.
• As far as doubling and tripling the budget, take a look since 2010.
• It’s hardly increased as far as the general fund budget dollars.

Keywords: 908, all

Summary: The North Dakota House convened with prayer, the Pledge of Allegiance, and a quorum present, then received a gubernatorial veto message on Senate Bill 2261. The governor vetoed the bill creating a prison industries workforce development tax credit, citing dormant Commerce Clause concerns and arguing the tax credit would create an unfair market advantage and not meaningfully help Rough Rider Industries. The House agreed to place SB 2261 on the next day’s calendar for a possible veto override. The chamber also re-referred Senate Bill 2159 to the Energy and Natural Resources Committee and appointed a conference committee for Senate Bill 2133 after the Senate refused to concur with House amendments. The House then took up a series of Senate amendments and final passage votes on several bills. It concurred in amendments and passed House Bill 1140 naming the Specialist John P. Fettig, Iraq Bridge; House Bill 1241 allowing funeral home vehicles to display flashing purple lights and clarifying emergency vehicle lamp rules; House Bill 1316 imposing additional penalties for repeated violations of temporary restricted licenses; House Bill 1127 expanding Department of Financial Institutions authority and data security provisions; House Bill 1564 on Indian child welfare; House Bill 1167 requiring AI disclosure statements in political communications; House Bill 1170 on state employee annual leave; House Bill 1447 regulating virtual currency kiosks; House Bill 1278 creating a cash management board for state treasury funds; House Bill 1024, the deficiency appropriation bill; House Bill 1205 on newborn safety devices; House Bill 1204 expanding false-information rules for political ads to text messages and telephone calls; House Bill 1001, the governor’s budget; House Bill 1206 increasing penalties for DUI offenses involving a minor; House Bill 1088 on insurance penalties and restitution; and House Bill 1515 on motor vehicle warranty work compensation. Most passed with strong margins, though HB 1170 and HB 1024 drew notable opposition, and HB 1447 and HB 1204 also had several nays. The most extended debate came on Senate Concurrent Resolution 4008, which proposed a constitutional amendment to change legislative term limits from the current structure to four four-year terms and repeal a constitutional restriction on proposing such changes. Supporters argued the measure would preserve institutional knowledge, allow voters to reconsider the 2022 term-limit decision, and let the public decide on the ballot. Opponents said the people had already spoken, the measure was confusing or unnecessary, and it could distract from other ballot issues. After reconsideration was granted, the House passed SCR 4008 by a vote of 53 yeas to 39 nays. The session ended with announcements, committee meeting notices, and adjournment until April 3, 2025.

Transcript Highlights:

• Are we exceeding what was already budgeted for these free phone calls? Mr.
• Chair, it would now be slightly less than the budgeted amount.
• You want to talk about budget issues. If we do that, we will absolutely have budget issues.
• You saw the budget forecast of a $6 billion deficit in the next couple of years.
• We're doing the criminal, the public safety omnibus budget right now. Right now.

Transcript Highlights:

• So much of our budget does go to education.
• We know every—we have five budget committees here in the Senate.
• We have five budget committees in the Assembly. We go through every line of the budget.
• And these budgets, these numbers are very static.
• The California state budget is in a crisis.

Summary: The committee heard Senate Bill 1277, which would create a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide refundable relief to low- and middle-income Californians facing high housing, fuel, energy, and general living costs. Senator Grove and supporters, including the California Policy Center and some local government representatives, argued the bill would put direct relief into the hands of working families. Opposition came from the California Tax Reform Association and the California Teachers Association, which said California already has progressive tax credits and that the proposal would be costly to the General Fund and reduce money for schools and other services. After extended debate, the bill was not advanced; a roll call vote on a motion to pass it to Appropriations failed 1-4, and the bill was held/fails on the floor with a request for reconsideration noted. The committee then heard SB 1287, which would create a capped tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the measure would improve safety, reliability, emissions, and freight movement, especially for rural communities and agriculture, and that it was a public-private partnership rather than a handout. Opposition from CTA and the California Tax Reform Association argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call without a final vote in the transcript. Members also considered SB 1407, which would fully exempt military retirement pay and surviving spouse benefits from state income tax, increasing the prior partial exemption. The author, State Treasurer Fiona Ma, and veterans’ groups said the change would help retain veterans in California, support local economies, and align California with most other states. CTA and CTRA opposed on General Fund grounds. The committee approved the bill on a due-pass-as-amended motion to the Committee on Military and Veterans Affairs, with the roll call showing support and the bill placed on call. Later, the committee heard SB 1349, directing the Legislative Analyst’s Office to review major tax expenditures and evaluate their goals, beneficiaries, and effects on revenues and Proposition 98 funding. CTA, CTRA, and several local government and labor supporters backed the bill as a way to improve accountability for roughly $94 billion in annual tax expenditures. The bill was accepted with committee amendments and placed on call. The committee also heard SB 1078, authorizing Santa Cruz County to ask voters for a temporary half-cent sales tax to help fund health care and safety-net services amid federal cuts; it was placed on call. SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries, received strong support from business and manufacturing groups and was passed on a due-pass-as-amended motion to Appropriations. Finally, SB 1275, which would replace the state sales tax on vehicle purchases with a vehicle license fee structure intended to increase federal deductibility for Californians, was passed 4-0 as amended to the Committee on Transportation.

Transcript Highlights:

• So much of our budget does go to education.
• We know every— we have five budget committees here in the Senate.
• We have five budget committees in the Assembly. We go through every line of the budget.
• And these budgets, these numbers are very static.
• The California state budget is in a crisis.

Keywords: 987, senate, all

Transcript Highlights:

• We can't raise their pay because of recapture and our deficit budget.
• We've already cut the budget by $800,000, and we've passed a balanced budget.
• For everybody on our staff, it'll put us back into a deficit budget.
• budget, as far as I can tell from what I know of this bill.
• Budgets were slashed.

Bills: HB2

Keywords: public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, 1185, senate, all

Transcript Highlights:

• because of the budget we're in.
• Tomorrow, we will get a budget draw.
• And then on the federal budget, we are cautiously watching that.
• And then on the federal budget, we are cautiously watching that.
• And then on the federal budget, we are cautiously watching that.

Summary: The joint hearing focused on the Governor’s 2025 reorganization plan to split the Business, Consumer Services and Housing Agency into two new agencies: a Business and Consumer Services Agency and a California Housing and Homelessness Agency. Administration officials said the change would give each side more focused leadership, improve consumer protection and regulatory oversight, and better align housing and homelessness policy with the state’s broader housing goals. Leaders from the Department of Consumer Affairs, Cannabis Control, Alcoholic Beverage Control, and Financial Protection and Innovation all voiced support for the business-side reorganization, while housing officials emphasized that the new housing agency would help streamline funding, compliance, and coordination across programs. Members raised concerns about timing, budget impacts, office space, and whether the split would actually reduce bureaucracy. The administration said the plan would be included in the May Revision, was intended to be cost-neutral, and would not require fee increases for licensees or additional office space. On the housing side, officials said the new Housing Development and Finance Committee would work toward a single application and more coordinated award process for affordable housing funding, while preserving CalHFA’s statutory and financial independence. They also said the reorganization would improve compliance monitoring, data collection, and coordination with local governments, including Los Angeles homelessness programs. Public testimony was largely supportive. Industry groups representing beverage distributors, craft brewers, wine, mortgage lenders, and housing organizations backed the business-side split, and housing advocates such as Housing California, the California Housing Partnership, and the California Housing Consortium supported the housing agency concept and the proposed one-stop-shop approach. Several witnesses urged that tax credits, bonds, and other funding sources be better coordinated, and some said the plan should be paired with additional state investment and implementation resources. No formal vote was taken; the hearing was informational.

Transcript Highlights:

• The State Administration Budget Subcommittee will come to order. Missy, please call the roll.
• And finally, we will finish our budget workshop from last week.
• And finally, we will finish our budget workshop from last week.
• And to that point, I've been working diligently on my recommended budget that will be sent to the budget
• And to that point, I've been working diligently on my recommended budget that will be sent to the budget

Summary: The subcommittee heard presentations from the Department of Financial Services and the Department of Business and Professional Regulation, then returned to its ongoing budget workshop with the Department of Management Services. DFS’s Division of Risk Management described its role as the state self-insurance fund, covering about 200,000 employees and 27,000 vehicles, paying roughly $150 million in claims last year, and managing a pilot ETS treatment program for veterans and first responders that had 49 patients and 804 treatments as of the latest report. The Division of State Fire Marshal outlined its fire prevention, training, emergency response, and grant programs, including hurricane deployments, the Florida State Fire College, and several capital and grant requests for roof, courtyard, memorial, and equipment needs. The Division of Rehabilitation and Liquidation explained how it handles insolvent insurers under Chapter 631, currently administering 14 estates with $1.2 billion in assets and $3.7 billion in liabilities, and said no new receiverships had been opened since February 2023. Members asked about grant backlogs, fire truck procurement delays, memorial repairs, and whether affiliate transfers were occurring in insurer liquidations. Secretary Griffin then updated the committee on DBPR’s implementation of House Bill 1021 on community associations. He said the department had used the new authority to expand education, complaint handling, and ombudsman services, including 10 free standardized courses, a new condo website, and a four-hour board certification course that had already drawn more than 12,000 attendees. He reported that outreach to condominium communities had increased by more than 60%, that complaint filings were up 39% while jurisdictional dismissals dropped to 11%, and that about 81% to 82% of the 65 new positions had been filled. Members pressed him on whether the department had enough authority and funding, how condominium counts are determined, how self-reported structural integrity reserve study data is verified, and whether more public-facing complaint tracking and better reporting from local governments or developers would improve the system. The committee then resumed questioning Secretary Allende of DMS about outstanding budget and operations issues. Members focused on the delayed People First contract extension required by statute, with the secretary saying the delay involved technical and contractual complexity in moving a legacy hard-coded system to the cloud. They also revisited the state data team and data catalog project, asking why a statutory 2022 deadline had not been met, how the four-person team and broader data staff were organized, how many applicants were considered for key positions, and what each role was doing. The secretary said the catalog work was being simplified into six metadata fields and supported by a broader community of practice, but no firm completion date was given during the exchange.

Transcript Highlights:

• >> At the time when we put together the budget request, the NIST funding was still stable.
• </c><00:14:20.000><c> in</c><00:14:20.240><c> your</c><00:14:20.399><c> budget?
• </c> included in the budget in your budget? included in the budget in your budget?
• In the days of, you know, 10, 15 years ago, the budget was $90 million. It is now $60 million.
• </c><00:29:58.000><c> haven't</c> um our marketing budgets haven't um our marketing budgets haven't increased

Keywords: 912, senate, all

Summary: The committee heard testimony on a series of economic development, tourism, and tax measures. SB 2411 drew broad support from the Department of Business, Economic Development and Tourism, the University of Hawaiʻi, the Chamber of Commerce, and Retail Merchants, with one technical amendment suggested to change a partnership term from six to seven years. Members asked about implementation and annual costs, and the department said it would follow up with cost information. HB 2583 HD1, relating to economic development and a loan loss program, also received support, but DBED noted the state already has the CBED loan program and suggested the proposal could be placed under that existing framework rather than creating a new program. HB 1612, based on business revitalization task force recommendations, was supported by DBED and several business and advocacy groups, including the Small Business Regulatory Review Board and Grassroot Institute. Testimony emphasized improving Hawaii’s business climate and using a ranking/reporting tool to measure progress, while one senator questioned whether the bill would simply fund another study instead of direct improvements. HB 1613, relating to HTDC, was supported by HTDC, the Chamber of Commerce, and startup and industry representatives who said a permanent marketing/branding specialist would help attract tech talent, founders, and investors; a member asked why the position was not in the budget, and HTDC said federal NIST funding uncertainty affected the request. HB 1614, also on economic development, was supported by HTDC and business groups, and members discussed whether the state was missing federal funds due to lack of matching dollars; HTDC said it was difficult to know, but matching funds could help leverage more federal grants. The committee then took up HB 2590 on taxation for creative industries. The Motion Picture Association and Hawaii Film Alliance strongly supported the bill, saying it would correct GET treatment for payroll service companies, restore motion picture and TV production as manufacturing, and repeal a 2022 provision affecting qualified expenses; the Department of Taxation said it would provide revenue-impact information later. Finally, HB 1950 HD1 on the transient accommodations tax drew strong support from DBED, HTA, the Hawaii Visitors and Convention Bureau, hotel and resort groups, and others, who argued for a dedicated tourism marketing fund and said the state needs more stable, long-term marketing investment. The Tax Foundation opposed the special fund approach, arguing it would reduce legislative flexibility. Members pressed witnesses on the appropriate percentage for the fund, with HTA suggesting 10% to 12% of TAT collections, and the discussion focused on how marketing spending relates to visitor spending, tax revenue, and long-term tourism competitiveness.

Transcript Highlights:

• Roaso with Cornerstone, who worked on our budget.
• But anyway, I'm going to let y'all go on with your budget. This is a relatively small budget.
• We were prepared for a 30% federal cut in our budget.
• all that shakes out once we get down to actually doing a budget.
• And hopefully the shutdown won't budget.

Keywords: Appropriations - Room 409, 28 January, 2026; 10:30 A.M., 925, all

Transcript Highlights:

• I want to provide you some executive budget comparisons now.
• The executive is proposing an $18.7 billion budget.
• , because they would need to put together a complete budget proposal.
• The Department has an annual budget of over $1.5 billion.
• It's a very small amount of their budget.

Summary: The committee first received a lengthy presentation from JLBC staff comparing the JLBC baseline budget with the executive proposal. Staff said the baseline shows about $577 million in available cash above statutory formulas, but that major items not included—especially tax conformity, ongoing health and school repair costs, and new federal Medicaid/SNAP administrative requirements—would significantly change the picture. The executive budget was described as about $1.1 billion larger than the JLBC baseline, driven by revenue and spending proposals including border security funding, tax conformity, higher sports betting taxes, elimination of a data center equipment exemption, short-term rental and water surcharges, SNAP administrative and error-rate costs, and several one-time items that staff argued appear ongoing. Members also discussed rising caseloads and supplementals in developmental disabilities, Medicaid/Access, and education, including concerns about declining enrollment, possible fraud in Access, and the SNAP error rate. The committee then heard and passed SB 1032, which appropriates $1.5 million from the General Fund in FY 2027 to fund the Independent Correctional Oversight Office. Testimony from the sponsor and advocates emphasized the need for independent oversight of the Department of Corrections, transparency, whistleblower reporting, and avoiding federal receivership. The bill was given a due pass recommendation on a 10-0 vote. Next, the committee considered several transportation appropriations. SB 1064, as amended, would appropriate $3 million to ADOT for improvements along West Route 66 in Flagstaff; the mayor and local planning officials testified that the corridor is congested and dangerous, with significant growth and crash history. The bill passed 7-3. SB 1059 would appropriate $9.2 million for an additional right-turn lane at SR 87 and SR 260 in Payson; supporters cited severe backups and safety concerns, and it passed 7-3. SB 1062 would appropriate $1 million for an additional left-turn lane at US 60 and Superstition Mountain Drive in Gold Canyon; supporters said the intersection is a major bottleneck and safety issue, and it passed 6-4. Finally, the committee began hearing SCR 1004, which would place on the ballot a prohibition on photo enforcement systems used by local authorities or state agencies for speeding and red-light violations. The sponsor and public testimony argued that automated enforcement is unpopular, unconstitutional, and prone to abuse, citing allegations of campaign money tied to ticket revenue and forged judicial signatures on citations. The transcript cuts off during public testimony, before any committee vote on SCR 1004 or the remaining bills.

Transcript Highlights:

• So currently, how much do we have budgeted for thermal dam repairs annually in your current budget?
• In our current budget, so there's kind of a difference in the high hazard dams.
• So currently, how much do we have budgeted for thermal dam repairs annually in your current budget?
• for therial dam repairs annually in your current budget in our current budget so there's there's kind
• Budgets are tracked very differently.

Summary: The meeting began with a budget presentation from the Oklahoma Department of Agriculture, Food and Forestry. Secretary Blaine Arthur and Deputy Commissioner Jan Lee described the agency’s divisions and recent efforts to improve efficiency, including expanded online licensing, electronic veterinary inspection certificates, and a new laboratory information system. They highlighted youth and workforce programs, local food initiatives for schools, market development efforts, and ongoing animal health concerns such as avian influenza, equine herpesvirus, and the threat of New World screwworm. They also discussed staffing, turnover, and uncertainty around federal cooperative agreement funding, while noting they were not requesting new or additional appropriations for the upcoming fiscal year. Members asked about meat inspection staffing, the use of one-time forestry firefighting funds, biosecurity and national security coordination, and agency staffing levels. The department said meat inspection was currently in good shape but dependent on federal funding stability, and explained that prior firefighting dollars had been used for equipment purchases. They also said they work with state and federal partners, including DHS and FBI, on threat preparedness and have reduced turnover by adjusting salaries and maintaining staffing at or below prior levels. The Oklahoma Conservation Commission then presented its budget and program overview. Staff described the agency’s long history and current work in water quality, flood control, soil health, unpaved roads, wetlands, and woody species control, especially eastern red cedar removal. They emphasized data-driven, voluntary conservation practices, citing stream cleanups, flood-control dam benefits, pond cleanouts during drought, and the Cherry-Peach watershed project as examples of programs that improve water resources and reduce wildfire risk. The agency said its workload has grown significantly and requested funding for critical dam repairs, local conservation district staffing, continued unpaved roads work, and expansion of woody species control statewide. Members asked about county matching for road and dam projects, who to contact about flooding roads, sediment removal from pond cleanouts, and the effectiveness of county training programs. Commission staff explained that county in-kind work can count as match, local conservation districts are the first point of contact, and the road training has produced measurable savings and better maintenance practices. They also clarified that “high hazard” dams are those where failure could threaten people or infrastructure downstream, not necessarily dams that are structurally failing.

Transcript Highlights:

• clarifies that the appropriations to Minnesota Housing are from the general fund, and conforms with budget
• </c><00:12:04.920><c> realities,</c><00:12:05.920><c> but</c> the moment of our budget realities, but
• </c><00:13:35.839><c> So,</c> of you meets those budget targets.
• So, of you meets those budget targets.
• Uh so it that also into the base budget.

Keywords: 1187, senate, all

Transcript Highlights:

• Governor Newsom's January budget via the trailer bill includes several proposals.
• Oh, so we don’t have those details of the Governor’s budget proposal.
• You all know this is a proposal that was put forward in a budget.
• Bills pass, the Governor signs the bills, you send a budget, it sends it over.
• This is the first year that school districts have a fully funded budget to implement TK.

Summary: The Assembly Education Committee first heard two bills. AB 1665 by Assemblymember Pacheco would require school sports coaches to complete approved mental health training. Supporters said coaches are trusted adults who are often first to notice student-athlete distress, and a witness described personal experience with body image and disordered eating pressures in athletics. There was no opposition, and the bill was moved out of committee on a due pass as amended motion to Appropriations, ultimately passing 9-0 after add-on votes. AB 2316 by Assemblymember Hoover would allow charter schools to apply for the same financial hardship relief in the state school facilities program that traditional districts can seek. Supporters argued this would improve parity and help smaller and low-income charter schools access permanent facilities; some initially opposed agencies said their concerns were addressed by amendments. The bill also passed unanimously, 9-0, to Appropriations. The committee then took up a consent calendar containing 12 additional measures, including bills on education funding, facilities, and other school-related matters, plus a resolution. Those items were approved on a 7-0 vote, with the roll left open for add-on votes. After the bill hearing portion was recessed and later reconvened, additional members added votes to AB 1665, AB 2316, and the consent calendar, bringing each to 9-0. The committee then held an informational hearing on state-level education governance, centered on Governor Newsom’s proposal to restructure the California Department of Education and the role of the elected Superintendent of Public Instruction, with AB 2117 serving as a policy vehicle carrying the same language and no action to be taken. Testimony came from the Legislative Analyst’s Office, the Education Commission of the States, and former CDE chief deputy Richard Zager. Witnesses reviewed the history of California’s governance structure, compared it with other states, and discussed accountability, legislative oversight, and the role of the superintendent under the proposal. Committee members raised concerns about preserving checks and balances, the fiscal implementation plan, county-office relationships, and whether the superintendent’s role would be reduced too far; no vote was taken at the informational hearing.

Transcript Highlights:

• </c> communities and actually with our budget communities and actually with our budget request<00:53:
• </c> come under budget by 200,000 for that. come under budget by 200,000 for that.
• :25.760><c> fund</c> your budget reserve trust fund your budget reserve trust fund recommendation. recommendation
• </c><01:10:39.360><c> reserve</c> prioritize maintaining budget reserve prioritize maintaining budget
• So um or the budget reserve trust fund.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:11 Approval of Minutes 00:02:00 Information Items 00:02:25 CPE Special Report 00:03:26 Review of Executive Branch Agency Plans 00:31:48 A. Attorney General 00:32:10 B. Court of Justice 00:36:41 C. Cabinet for Economic Development 00:50:44 D. Kentucky Public Pensions Authority 00:56:06 E. Board Discussion of Planning Issues 01:05:12, 958, all

Summary: The Capital Planning Advisory Board opened its fourth meeting, confirmed a quorum, approved the prior meeting’s minutes by unanimous voice vote, and then heard information items and agency presentations. The main substantive presentation came from the Council on Postsecondary Education, which outlined its capital planning recommendations for the 2026–28 biennium. CPE staff described the role of Kentucky’s research and education network (Kron), including connectivity to cloud services, Internet2, identity services, and new local AI/inferencing capacity, and argued that the network is now essential to higher education, health care, and extension services. They said the network’s recent upgrades were driven by privacy, security, redundancy, and the need to support modern research and AI workloads at lower cost than commercial providers. CPE also presented its broader higher-education capital request: $700 million for asset preservation and $1.73 billion for new construction, for a total recommendation of about $2.4 billion. Staff said they do not plan to recommend IT projects or equipment in this cycle, despite reviewing 48 IT submissions totaling nearly $1.4 billion and equipment requests totaling $322.6 million. For asset preservation, they said the recommended allocation method would remain based on each institution’s share of Category 1 and 2 square footage, and they noted that the state’s prior facility assessment is now 12 years old, with deferred maintenance still estimated in the $7–9 billion range. For new construction, they said the requests are heavily focused on STEM and health-related facilities that are difficult to retrofit into older buildings. Board members asked about how asset-preservation amounts were determined, including why Northern Kentucky University’s request was much larger than its prior allocation. CPE staff responded that campus size, building age, and institutional prioritization affect the requests, and that schools are asked to submit more projects than are likely to be funded. The board then moved on to an Attorney General capital plan overview, where senior counsel Will Schroeder began describing the office’s technology needs and the office’s prior reliance on a 2020 appropriation to replace legacy systems and improve security.

Transcript Highlights:

• So, I am looking at the budget pages, and it looks like during the budget sessions and what passed in
• </c> passed in um last spring for the budget passed in um last spring for the budget for<00:14:13.440
• the budget proc during the budget during the budget proc during the budget hearings<00:14:51.920><c>
• </c> with a revised budget. with a revised budget.
• We actually built into the budget<00:52:59.280><c> process</c> budget process budget process our<00:53

Keywords: 1189, house, all

Summary: The Fiscal Committee met on January 23, 2026, approved the December 19, 2025 minutes, and adopted the remaining items on the consent calendar after noting several withdrawals. The committee then took up Department of Safety item FIS 26007, which involved Homeland Security/FEMA grant funding for equipment and UAS-related activities. Senators asked whether any of the funding would support federal civil immigration enforcement or shared operations with federal agencies, and about privacy protections for drone data. The department said the grant is governed by federal parameters, that the state uses the remaining 20 percent after federally directed uses, and that privacy law in this area is evolving. The item was adopted on an 8-2 vote. The committee next considered Department of Environmental Services item 26003, which had been withdrawn by the Senate. A senator said concerns about using the funds for a different project had been resolved after speaking with the commissioner, and the item was adopted without further debate. The committee then moved to Department of Health and Human Services item 260005, a request for about $700,000 in remaining ARPA-related funds for the Hampstead children’s facility project. Commissioners explained that the project had been funded in stages because the original appropriation was based on estimates and bid assumptions, and that the remaining money would cover alternates and finish the project without using general funds. Senators raised concerns about repeated requests for additional money, the adequacy of security, site-selection costs, and why the project had not been fully funded at the outset. The department said the project had been intentionally structured to proceed in phases and that required security would be provided.

Transcript Highlights:

• If you spoke to the folks at the Minnesota Office of Management and Budget, I'm sure they would give
• but it is structurally imbalanced budget but it is concerning<00:22:17.960><c> and</c><00:22:18.080>
• uh and the state budget offices uh and independent<00:24:55.000><c> parties</c><00:24:55.279><c> to<
• </c><00:46:03.400><c> uh</c> from the capital investment budget uh from the capital investment budget
• They know how to deal with MMB management and budget.

Keywords: 1187, senate, all