Transcript Highlights:

• Aloha, everyone, for the House Committee on Finance.
• haven't completed the programming. haven't completed the programming.
• And no state in this country would allow you to release any MA from another state in their state to do
• financing to build them? financing to build them?
• In this state however that's the state. In this state however that's not<00:50:23.440> happening.

Keywords: 910, house, all

Transcript Highlights:

• rent supplement program special fund, and repeals the existing separate state rent supplement program
• rent supplement program special fund, and repeals the existing separate state rent supplement program
• <00:04:56.639> special state rent supplement program special state rent supplement program
• state rent supplement program into the state rent supplement program special<00:05:09.840> fund
• state rent supplement program separate state rent supplement program for for for um<00:05:16.479>

Keywords: 912, senate, all

Summary: The joint hearing covered several housing-related measures. On SB 2068, which would create an affordable housing land inventory task force within the Office of Planning and Sustainable Development to study how to maximize housing on transit-oriented development and other state and county lands, testimony was mostly supportive from agencies and housing groups, with one opposition witness. In response to questions, OPSD said it was already working on a list of potential parcels but could not yet identify unit counts or a timeline, and estimated about $250,000 would be needed for staffing and contractual support. The committees also heard SB 2227 on rental assistance, which would require HPHA to make monthly rent supplement payments, prioritize certain tenants including kupuna, allow agreements with counties and nonprofits, and create a special fund supported by a transaction fee on recordings. HPHA supported the bill, and the Department of the Attorney General said it recommended amending the measure to describe the fee as a tax. Additional testimony included support from elder and community organizations and one opposition witness. For SB 2061, relating to residential condominiums and the 99-year leasehold program, HCDA and the project developer testified in support of amendments intended to preserve owner-occupant requirements while making the project more marketable and financially feasible. Members focused heavily on parking, affordability, and financing. HCDA and the developer said the parking stalls would be unbundled from the units, that the project would be a 99-year leasehold with 60% of units reserved for buyers at or below 140% AMI and 40% market-rate, and that the state’s $15 million equity contribution would cover only part of the parking garage and commercial component. The hearing then moved on to SB 3327, relating to HCDA and complete communities, but the transcript cuts off before that measure was fully discussed.

Transcript Highlights:

• So TOPS Tech is restricted to specific programs, and so only those programs would be eligible.
• a local program to Orleans Parish.
• But for Senate Finance, you check that box when it’s $100,000 or greater for any means of finance.
• Don’t see a big state impact. The state impact is out of there. It’s local now.
• The state takes its state general fund down to somewhere between $79,000 and $100,000.

Summary: The Finance Committee met on May 27, 2026, with six members present and took up a series of House bills, most of them dealing with education funding, criminal justice staffing, transportation, health care access, and economic development. HB 325 was reported favorably after testimony that it would expand TOPS eligibility by allowing dual-enrollment credits to satisfy eligibility criteria and by making part-time students eligible for TOPS Tech, with supporters saying the program has been underused and the change would help working students. HB 719 was amended and reported favorably to increase assistant district attorney positions in various judicial districts; the Louisiana District Attorneys Association said the changes were based on workload data and local input, and members discussed the need to coordinate any expansion with public defender funding. The committee also reported HB 749 favorably, which would move Louisiana’s 529 savings accounts to a more secure online platform after a cyber incident, and HB 1028 favorably, which concerns transportation reimbursement for providers and was described as already subject to appropriation. Several bills focused on food access and local economic development. HB 1222, the Grocery Initiative Act, was reported favorably to let LED use existing grant resources to map food deserts and develop a program, with members noting it could return for funding later if needed. HB 1194 was amended and reported favorably to define food deserts and direct the LSU AgCenter and the Department of Agriculture and Forestry to identify and map them, with authors emphasizing it was a study and not a government-run grocery program. HB 755, which would create IDIQ contracting for architects and engineers on smaller state projects, was reported favorably with no fiscal impact. HB 823, a local diversion pilot for Orleans Parish, was also reported favorably after the fiscal note was revised to remove state impact and reflect only local costs. The committee spent substantial time on HB 488, a proposal from Plaquemines Parish to use severance-tax revenue to help buy out a private toll concession on the parish’s bridge. The author and local officials described severe toll burdens, economic harm to local businesses, and what they called an unfair contract, but members noted the bill was not funded and ultimately deferred it without a motion. HB 797, the Bayou Gold/Louisiana Sound Money Act, was amended to make implementation subject to appropriation and then reported favorably. The committee also took up HB 198, which would raise Medicaid reimbursement for ambulatory surgery centers for certain outpatient procedures; after extensive discussion about fiscal notes, access to care, and potential long-term savings, the bill was amended to narrow its scope and make implementation subject to appropriation, then reported favorably as amended. The meeting ended with the chair noting it would be the committee’s last meeting and asking members to spread the word.

Transcript Highlights:

• The state even has another financial aid program with a service component to it.
• Where these funds are actually in support of actual program design, such as program training for the
• You know, the actual program itself, education outreach that the program does.
• Department of Finance. Henry Ying, Department of Finance. This is a mission priority.
• Department of Finance? Alex Anaya with the Department of Finance.

Keywords: 988, house, all

Transcript Highlights:

• been stated um a housing loan guarantee<01:00:59.960> program<01:01:00.359> provides<01
• We achieve that mission through a number of programs that promote homeownership, help finance affordable
• And then, third, the program would have to do so without exposing the state and all of us as taxpayers
• that promote home ownership of programs that promote home ownership help<01:02:56.599> Finance
• <01:03:03.039> that program for the areas of the state that program for the areas of the state

Keywords: 1191, senate, all

Transcript Highlights:

• This bill defines a wellness reimbursement program.
• all federal and state laws. ...attest that the wellness reimbursement program complies with all federal
• and state laws.
• The amendment further states... ...to the mandatory requirements that are already in state code.
• They will flee the state. They will hide out.

Keywords: 994, senate, all

Summary: The Senate considered and passed a series of House bills and one constitutional resolution, with several measures receiving title amendments and some taking effect immediately or on a specified date. Early action included moving House Bill 5438, concerning the foundation allowance for instructional programs, to the foot of third-reading bills. House Bill 5441, reforming the state personnel system, was amended with a Judiciary strike-and-insert technical fix, then passed 28-6 and was set to take effect July 1, 2026. House Bill 5462 on mine subsidence insurance passed unanimously, with a title amendment adopted. House Bill 5484, creating felony offenses related to denying medical treatment to sexual offense victims, also passed unanimously with a title amendment. House Bill 5515 modernizing workers’ compensation statutes passed unanimously with a title amendment, and House Bill 5527 establishing licensure and regulation for wellness reimbursement programs passed unanimously. House Bill 5528, protecting personal residential information of certain public officials, passed unanimously with a title amendment. The most extended debate centered on House Bill 5537, an education-related bill that was amended to add a child-protection provision later referred to as “Rayleigh’s law.” The amendment would bar approval of home instruction requests in certain child abuse or neglect cases until the Department of Human Services confirms the investigation is unfounded, closed, or not substantiated, or until 10 days pass without a response. Senators argued the measure was intended to protect children and not target homeschooling. After a point of order, the chair initially ruled the amended language not germane; that ruling was challenged and ultimately overruled by a 24-7 vote, allowing the amendment to remain. The bill then passed 24-7, and a title amendment was adopted. Other measures passed with little or no opposition. House Bill 5582 removed the sunset on the TANF applicant drug-screening program and passed 28-3 after a technical committee amendment. House Bill 5687 reduced the metallurgical coal severance tax over time and adjusted oil and gas tax allocations, passing 31-3. Several supplemental appropriations also passed and were made effective from passage, including funds for Homeland Security/corrections, the Adjutant General, Health, the State Road Fund, and Tourism/Culture and History. The Senate also adopted House Joint Resolution 42, which would place on the ballot a constitutional amendment increasing the homestead exemption from $20,000 to $40,000 and allowing future changes by general law. In second reading, the Senate advanced bills on workforce training reimbursements, aerospace and advanced manufacturing incentives, portable benefit accounts, literacy and science-of-reading training, school aid formula changes, and wedding venue regulation, with amendments adopted on several of them before advancement to third reading.

Transcript Highlights:

• Instead, my colleagues are quietly acquiescing to Head Start programs in their states being closed down
• and blue states alike.
• of Texas, a beautiful state.
• But it's true in every state, including my state of Oregon and the shared state of South Carolina.
• By United States citizens.

Transcript Highlights:

• The Department of State Hospitals manages the California State Hospital system.
• We have to get approval through the Department of Finance and the State Public Works Board each fiscal
• We have to get approval through the Department of Finance and the State Public Works Board each fiscal
• If they land in a diversion program, that diversion program will be funded by the DSH program, the DSH
• in our state.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• The program in its entirety is comprised of the 9,000 state employees.
• groups with regard to other state groups with regard to other state programs.<00:25:17.919> um
• state and others to be a part of this program.
• We don't need $1.4 million to market to our state employees about a program we're offering.
• program was state employees which this program was primarily<00:50:27.359> created<00:50:28.040

Keywords: 1191, senate, all

Transcript Highlights:

• State Liquor Board: Susan Wals.
• Finance. SB 1350, outdoor-based therapy programs, grants.
• Finance. SB 1291, agricultural property classification inspection. Finance. SB 1292.
• Finance. SB 1292, PS PRS investments. Finance. SB 1293, GPLET abatement limitation. Finance.
• SB 1391, stress management pilot program, SB 1391, stress management pilot program.

Keywords: 1182, all

Transcript Highlights:

• <00:01:40.640> offer Only a handful of states offer Only a handful of states offer comprehensive
• of health and finance and as co-chair of health and finance and policy<00:06:17.919> and<00:06
• those safety net public health programs those safety net public health programs for<00:08:47.760
• a budget deal with the House finance a budget deal with the House finance because<00:09:11.440><
• status in the United States of America. status in the United States of America.

Keywords: 1187, senate, all

Transcript Highlights:

• But the program just didn't keep up.
• The Connected Solutions program is really considered a nation-leading program for leveraging home solar
• We've benefited from state grant programs that have helped us expand.
• The enhanced state tax credit provisions, The enhanced state tax credit provisions in S. 2269, H. 3520
• Under the SMART program, the kind of deal with the SMART program is that the projects receive an incentive

Keywords: 995, all

Summary: The hearing focused on ways Massachusetts can accelerate solar deployment, lower costs, and preserve reliability as electricity demand rises and federal support for solar and other renewables changes. Chair Creem opened by emphasizing solar’s role in meeting climate mandates and peak demand, citing June heat-wave data showing behind-the-meter solar reduced wholesale prices and saved ratepayers money. Commissioner Elizabeth Mahoney of DOER said Massachusetts has grown from 3 MW of solar in 2008 to 3.5 GW today, highlighted SMART 3.0 as a flexible, evergreen incentive program, and said DOER is working on updated rates, interconnection reforms, flexible interconnection, net crediting, and a petition to the DPU to speed implementation. She also said Massachusetts joined the lawsuit over canceled federal Solar for All funding. Committee members and witnesses discussed several policy changes to speed projects before federal tax credits expire, including automated permitting, remote inspections, faster interconnection, and changes to caps on municipal and regional solar development. Senator Barrett pressed Mahoney on whether the 10 MW municipal cap and regional caps should be lifted, and on whether the state should increase its solar tax credit to offset the loss of the federal residential credit. Mahoney said the municipal cap should be revisited and that interconnection cost allocation and other market issues need to be worked out before lifting broader caps. She also said DOER is open to automated permitting and is already developing a permitting portal under the 2024 climate law. Industry and advocacy witnesses largely supported streamlining measures. Sunrun’s Bronte Payne urged removal of a proposed requirement that all net-metered facilities enroll in SMART, and recommended automated permitting, remote inspections, flexible interconnection, better hosting-capacity information, consumer protections, and continued support for Connected Solutions and virtual power plants. Permit Power’s Hannah Bernbaum and Solar App’s Matthew McAllister argued that smart permitting and remote inspections can significantly reduce soft costs and delays, with McAllister saying Solar App now operates in over 320 jurisdictions and saves about three weeks on average. They said remote inspections are already common and can be done safely with photos, video, and qualified third parties. Community solar and clean energy advocates, including CCSA’s Kate Daniel and Vote Solar’s Lindsay Griffin, supported a 10 GW solar target by 2035, a higher refundable state tax credit for low-income households, interconnection reforms, flexible interconnection, and preserving the option to build outside SMART so projects can retain renewable energy certificates. No votes were taken; the hearing was informational, and members requested follow-up materials and draft language from witnesses.

Transcript Highlights:

• ' administration of these two programs, as well as reimbursing state agencies for valid claims, among
• programs as well as reimbursing state programs as well as reimbursing state agencies<00:09:42.920
• <00:09:48.560> and<00:09:48.760> evaluates<00:09:49.279> state for the programs
• and evaluates state for the programs and evaluates state agency We concluded that MDE's oversight of
• programs, which serve children across the state.

Keywords: 1183, house

Summary: The Education Policy Committee met to hear a delayed presentation from the Office of the Legislative Auditor on MDE’s oversight of Feeding Our Future, a report released in June 2024. The chair framed the hearing as an oversight review of how the Minnesota Department of Education handled the nonprofit’s participation in the Child and Adult Care Food Program and the Summer Food Service Program, emphasizing that the hearing was not about criminal charges against agency staff. Legislative Auditor Judy Randall and Director of Special Reviews Katherine Tyson explained that their review focused on state oversight, not the underlying federal fraud case, which involved an alleged $250 million scheme and ongoing criminal proceedings. The auditors concluded that MDE’s oversight was inadequate and created opportunities for fraud. They said MDE failed to act on warning signs before the pandemic, did not effectively use its authority to hold Feeding Our Future accountable, and was ill prepared to respond to problems. Examples included approving applications despite concerns about internal controls and staffing, failing to follow up on earlier review findings, not adequately investigating at least 30 complaints, and in one case referring a complaint back to Feeding Our Future for resolution rather than conducting an independent investigation. They also said MDE deferred serious deficiencies without enough evidence that problems had been fully corrected and approved meal claims despite records showing major inconsistencies. Tyson said MDE had made progress on all eight recommendations in the report, though one recommendation to the legislature had not yet been addressed because the session had not convened since the report’s release. The auditors recommended that the legislature establish clearer statutory criteria or give MDE rulemaking authority for sponsor applications, and that MDE strengthen verification of sponsor information, focus more on high-risk sponsors, improve complaint procedures, and emphasize program integrity if waivers reduce oversight in the future. In response to member questions, the auditors said MDE’s reported progress was partial in some areas and that further review would be needed to fully confirm implementation. No votes or formal committee actions were taken during the hearing.

Transcript Highlights:

• Things like being subject to a state performance audit, how do we know whether the program is performing
• I love this state, and my key in structuring programs is always to do it with due diligence and make
• and my my key in structuring this state and my my key in structuring programs programs programs always
• How do we know if our taxpayer dollars are being used to fund programs in other states?
• in other states used to fund programs in other states why<01:12:34.760> is<01:12:34.880> the

Keywords: 928, house, all

Summary: The committee opened a public hearing on HB 402, a bill dealing with whether Education Freedom Account (EFA) payments should be described in state law as not constituting taxable income. The bill sponsor argued that the current statute is misleading because New Hampshire should not imply a federal tax result, and said the bill would remove that language and could also be amended to clarify that families should consult tax advisors. He emphasized that the measure was not intended to impose a state tax on EFAs, but to avoid giving inaccurate advice about possible federal tax liability. Testimony was divided. A retired representative and a tax preparer both opposed the bill, saying EFA payments are already treated consistently with IRS rules and that the bill would create confusion, administrative burden, and possible tax consequences for low- and moderate-income families. They argued the bill is a solution in search of a problem and warned that requiring 1099s could add costs for the scholarship organization and recipients. A tax attorney supported the bill’s repeal of the state language, saying New Hampshire should not put tax advice into statute and that the current wording is inaccurate because federal law, not state law, controls taxability. He cited IRS Section 117 and Publication 970, explaining that only some scholarship-like payments are tax-free and that many EFA-eligible expenses may not qualify for federal exemption. Members asked questions about what would be misleading, whether the bill was trying to tax EFAs, and the cost of issuing 1099s. The sponsor and witnesses repeatedly said the bill was not a state tax on voucher payments, but a clarification about federal tax treatment. No vote or final committee action was taken in the portion provided.

Transcript Highlights:

• We thank all state before the board.
• Western State Hospital and Western State Western State Hospital and Western State Nursing<00:09:
• of finance at KET. of finance at KET.
• State your name again. Corey Drman, now. State your name again.
• Uh, new state capital complex.

Keywords: 958, all

Summary: The Capital Planning Advisory Board met for its first meeting of the year, confirmed a quorum, approved the prior year’s minutes, and welcomed new co-chairs and members. The board reviewed the capital planning timeline and a list of agencies that submitted plans but would not testify. Members were reminded to keep presentations brief because of a packed agenda. The Cabinet for Health and Family Services presented first, outlining priorities centered on public safety, infrastructure preservation, and preventive maintenance. Its requests included a $21 million maintenance pool, phase two funding for a new state public health laboratory, construction of an 18-bed children’s psychiatric hospital, and several projects at Western State Hospital and Western State Nursing Facility, including HVAC work, cooling tower repair or replacement, and chiller plant repiping. Additional projects covered elevator upgrades at Hazlewood and phased cottage renovations at Oakwood. Board members asked about vacant buildings, the cost per bed for the youth psychiatric facility, and the relationship between the CHFS youth facility and a separate DJJ facility; CHFS said the youth facility would serve DCBS-involved youth and be separate from the DJJ project. The Kentucky Department of Education then described its state-operated facilities, including the Kentucky School for the Deaf, the Kentucky School for the Blind, and the FFA leadership training center. Its priorities included additional funding for the FFA classroom and activity building, a rewrite of the SEEK education finance application system, renovation and repair of the FFA swimming pool, electrical upgrades, campus education enhancements, safety and security work, door and window replacements, and HVAC maintenance. Members asked about student outcomes, the size and cost of the swimming pool project, and construction cost assumptions; KDE said it tracks student outcomes through special education staff and that current estimates reflect higher post-COVID construction costs. The Education and Labor Cabinet began its presentation with 12 priority projects, including a state labor exchange system, renovation of the McDow Vocational Rehabilitation Center, and a new adult education and family literacy management information system. The cabinet said the labor exchange would connect job seekers and employers at no cost, while the McDow renovation was needed because the 30-year-old facility faces safety and code concerns. The cabinet planned to continue through the remaining priorities and answer questions at the end of its presentation.

Transcript Highlights:

• Operate exclusively in the state for the Committee on state affairs HB 1726 by Collier relating to who
• finance program for the Committee on Higher Education.
• subdivisions of the state for to the Committee on State Affairs.
• HB 2061 by Holt relating to the designation of State Highway 242 bridge intersecting State Highway 59
• of the state and local value added taxes and the related school finance reform imposing taxes in front

Transcript Highlights:

• I serve as Deputy Director of the Corrections Planning and Grant Programs Division at the Board of State
• MMIP program.
• program.
• It's a national model that has inspired about a half dozen other states to launch similar model programs
• Department of Finance. Victoria Chin, Department of Finance.

Summary: The hearing focused on the Missing and Murdered Indigenous People (MMIP) grant program under the Board of State and Community Corrections and related Department of Justice efforts. BSCC reported that it now administers 36 MMIP grants across three cohorts, with awards ranging from $436,000 to $1 million, plus five collaborative grants at $2 million each, totaling $35.4 million awarded to federally recognized tribes. Testimony from tribal leaders and grantees described how the funding supports prevention, family advocacy, domestic violence services, law enforcement coordination, youth programming, culturally grounded healing, and new tribal public safety positions such as investigators, social workers, and drone operators. Speakers repeatedly emphasized that the crisis is longstanding, tied to generational trauma, and that the grant has helped build trust and infrastructure in tribal communities. Several witnesses and committee members urged continued and preferably ongoing funding, noting that demand now exceeds available one-time money. BSCC and tribal representatives described outreach efforts that increased participation from four applicants in cohort one to 20 in cohort two and more applicants than funding in cohort three. Tribes also raised implementation concerns, especially the burden of quarterly narrative reporting, limited staff capacity, and the need for flexible administration. BSCC said it uses steering committees, separate small- and large-project categories, orientations, monitoring visits, and technical assistance to support grantees. Tribal leaders and advocates stressed that the program should remain accessible without requiring a waiver of tribal sovereignty. The second major topic was DOJ’s update on AB 3099, the Tribal Assistance Program, and the tribal police pilot under AB 134. DOJ officials said the Office of Native American Affairs and the Division of Law Enforcement have been conducting outreach, trainings, listening sessions, and coordination with tribal, local, state, and federal partners to address Public Law 280 jurisdictional issues, improve reporting and data, and support Feather Alert and MMIP-related resources. DOJ said the AB 3099 report is in internal review and that the tribal police pilot is moving forward with the Yurok Tribe as a participant, with a July 1, 2026 start date. DOJ and tribal witnesses said the pilot’s main barriers are cost and, for some tribes, the waiver of sovereign immunity. No votes were taken, and the hearing ended with broad support for expanding and sustaining MMIP-related funding and infrastructure.

Transcript Highlights:

• The Rural Finance Authority offers low-interest loan programs for a variety of farm activities, including
• And my broader point is, um, this is kind of a unique program, unique financing structure.
• ,<00:37:47.680> unique<00:37:48.079> financing of a unique program, unique financing
• of a unique program, unique financing structure.<00:37:49.119> Important,<00:37:49.599> you
• . program. program.

Keywords: 1187, senate, all

Transcript Highlights:

• The remaining findings represent nine federal programs and four state agencies.
• The single audit report, and when it was stated we have $12 billion on 469 federal programs, I think
• , federal programs that are being audited by the states.
• There's the ABC program that is tax debt, that is out of public school fund, that is state revenues.
• The CCDF block grant is 100% federal program. Now, on the state program, if you could, program.

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• I'm State Senator Pete Campos.
• Mortgage Finance Authority will be chaired by the Senate.
• You know, when you travel around the country and you talk to other states, I mean, our Legislative Finance
• programs.
• Let's move on now to our out-of-state travel.