Transcript Highlights:

• projects, and provided new cost estimates for those projects, ...included 17 different projects and
• got a backlog of 80 projects.
• , 21 projects on that list.
• on a project-by-project basis, just to ensure that we have that oversight per project, rather than a
• the list of the 80 projects.

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation held a hearing focused first on courthouse facility funding and then on the Governor’s proposed court facilities budget. Legislative Analyst’s Office staff outlined the state’s court-facilities funding structure, including the 2002 shift of trial court facility responsibility from counties to the state, the main funding accounts, the insolvency of the construction fund, the move to General Fund support, the backlog of deferred maintenance, and the large estimated cost of needed new construction and repairs. Judicial Council representatives and judges from Los Angeles and Mendocino described severe seismic, safety, ADA, security, and maintenance problems, with examples of floods, elevator failures, asbestos-related closures, and long-delayed or underfunded projects. They argued that chronic underinvestment is making facilities less safe and more expensive to maintain, and that courthouse conditions directly affect access to justice and public confidence. Committee members pressed witnesses on how projects are prioritized, whether population and filing volume are adequately reflected, why reassessments have not been updated since 2019, how long acquisitions and construction take, and what level of funding would actually close the gap. Members also questioned the fixed county contribution, the use of General Fund backfills, and whether the state should set a clearer long-term funding target for the judicial branch. LAO staff emphasized that any new General Fund commitment would require tradeoffs with other budget priorities and said the Legislature must decide its appetite for funding. Judicial Council staff said the current prioritization was based on the 2019 reassessment and trailer bill language, that a new reassessment would cost about $14 million, and that acquisition delays are often driven by willing-seller issues and CEQA requirements. The chair asked for written testimony and indicated the committee would consider a future field hearing. In the second panel, Judicial Council and Department of Finance representatives reviewed the Governor’s budget proposals for court facilities. They said the proposal includes continued backfill for the State Court Facilities Construction Fund, several new construction and reappropriation items, relocation of Los Angeles courtrooms from the Spring Federal Building, and completion of a fire/life-safety project in Orange County. A court executive from Ventura testified that courthouse conditions affect public trust, employee morale, and the quality of service, citing roof leaks, elevator breakdowns, and HVAC failures as examples of why sustained facilities funding is needed.

Transcript Highlights:

• The State Water Project System and the Federal Central Valley Project.
• They were not state projects; they were all local projects.
• Entitlements to both the CITES project and the Delta Conveyance project.
• That's at the project level.
• So we also have exciting projects including in Palmdale, California. projects.

Transcript Highlights:

• project scope on January 31, 2025.
• of 4.2% in the amount of 294,000, funded... capital projects and pursuant to House capital projects
• </c> Betty White building renovation project Betty White building renovation project in<00:04:52.199>
• Bids for this project came in higher than the estimate, and that's because the project was originally
• project will one project the project will rehabilitate<00:15:56.680><c> rehabilitate</c><00:15:57.440

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

Transcript Highlights:

• projects, and provided new cost estimates for those projects, ...included 17 different projects and
• , 21 projects on that list.
• on a project-by-project basis, just to ensure that we have that oversight per project, rather than a
• tied to specific projects so that it isn't just X amount for judicial projects.
• the list of the 80 projects.

Transcript Highlights:

• eligible water project.
• projects.
• Your wastewater projects, it's harder to phase wastewater projects.
• Following it because if you look at 46 projects, 74 projects, and then 90 projects, but then the trend
• projects.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• Um so the derigation district rehabilitation phase 2 project um was a project, there's a 2022 project
• </c> particular project. particular project.
• The bill is not trying to say that it's a worthy project, a bad project, a good project.
• </c> project, a bad project, a good project. project, a bad project, a good project.
• The projects are valid projects.

Committee: Joint Select Water Committee

Transcript Highlights:

• </c> replacement project. replacement project.
• </c> project.
• All projects were recommended project.
• </c><01:08:47.120><c> are</c><01:08:47.279><c> on</c> projections of the project which are on projections
• </c> financing of each project. financing of each project.

Summary: The committee first handled routine business, including roll call, approval of the July minutes, and several informational reports. Those reports included a University of Kentucky restricted-fund medical equipment purchase for Chandler Hospital, debt issues for five school districts, Eastern Kentucky University’s planned model laboratory school using construction management risk delivery, a Division of Real Properties lease advertisement, Kentucky Communications Network Authority quarterly project reports, and EKU asset preservation revisions. Members then heard and approved a new UK St. Clair Urgent Care Clinic lease in Morehead and an amendment expanding space for the UK Family and Community Medicine Clinic at Turflin Clinic. Testimony explained that both properties are privately owned, the Morehead lease predated the UK/St. Clair arrangement, and the Turflin Clinic is tight on space. The committee also approved three new projects and an appropriation increase: two Department of Military Affairs projects, a Window Ford Training Center underground electric project and a Williamsburg Readiness Center interior repair project, a Fish and Wildlife property acquisition adjoining Veterans Memorial Wildlife Management Area, and an $8.113 million increase for the Department of Revenue integrated tax system (DORIS). The DORIS increase was described as needed for change orders tied to legislation and to complete the unified tax system. The committee next reviewed no-action items, including a $3 million emergency flood-damage repair project for the Bush Building and Vest-Lindsay House in Frankfort, and three pool projects over $1 million: a Kentucky Correctional Institute for Women window replacement phase 2 project, a Department of Criminal Justice Training interior refurbishment at Thompson Hall, and the Muddy Gut Branch stream mitigation project in Johnson County. The flood project was confirmed to be fully reimbursed by insurance proceeds. Finally, the Kentucky Infrastructure Authority presented six loans and nine grants. Action items included water and sewer financing for Cumberland County, Lebanon, Northern Kentucky Water District, Lewisport, and Providence, plus a major Taylor Mill treatment plant project and several cleaner water grants and reallocations. Members asked about loan rates, local rate increases needed to repay debt, and the Providence emergency water interconnect; staff explained that Lewisport had begun a rate increase process, and that the Providence project would connect Webster County Water District and the city of Providence to stabilize pressure after a systemwide failure. All action items were approved.

Transcript Highlights:

• Projects are insured.
• uh local projects for over 120 projects uh local projects whether<00:46:07.400><c> that</c><00:46:07.559
• </c> project completion and that the project project completion and that the project cannot<00:51:55.680
• So once there's an appropriation and we have a project named, we assign a project manager to that project
• was a great bonding project project uh was a great bonding project project uh several<01:10:56.679><c

Bills: HF201 , HF217 , HF314 , HF315 , HF406 , HF408 , HF425 , HF426 , HF730 , HF731 , HF652 , HF761 , HF1079 , HF928 , HF1017 , HF1056 , HF1081

Committee: Senate Capital Investment

Keywords: HF201, Minnesota income tax, tax subtraction, tax deduction, volunteer firefighter, volunteer fire and rescue, emergency responder, ambulance service personnel, EMR, EMS, search and rescue, canine search and rescue, underwater search and rescue, paid-on-call, part-time volunteer, tax relief, state tax law, section 290.0132, drivers license, identification card

Transcript Highlights:

• </c><00:03:59.439><c> each</c> Capital and construction projects each Capital and construction projects
• State Parks. project we also submit a quarterly project we also submit a quarterly project<00:30:48.159
• We currently have nine projects in design, three projects out for bid, and one project under construction
• </c><00:46:28.079><c> out</c> projects in design three projects out projects in design three projects
• and the expense of that project.

Summary: The committee met for its second Budget Review on Economic Development, Public Protection, Tourism, and Energy and first approved the minutes from the prior meeting. Members then heard a presentation from the Tourism, Arts, and Heritage Cabinet and the Kentucky Department of Tourism on the 1% tourism marketing fund. Witnesses explained that the fund supports statewide tourism promotion, advertising, research, regional marketing, and matching grants to local tourism commissions, and that it cannot be used for capital construction. They reported that the General Assembly and governor increased appropriations in the 2024 session, adding $3 million in FY25 and $7 million in FY26, and set aside funding for the Kentucky Mountain Regional Recreation Authority, the National Quilt Museum, and the Southern Kentucky Tourism Initiative. Tourism officials emphasized that Kentucky tourism is a major economic driver, citing 2023 figures of $13.8 billion in economic impact, 79.3 million visitors, $9.7 billion in direct spending, more than 95,000 jobs supported, and nearly $1 billion in state and local tax revenue. They said the department now uses targeted digital and over-the-top advertising in selected domestic and international markets, with 62% of media placements digital and 80% of the budget spent out of state. Members asked about market selection, how the department measures return on investment, and what attracts visitors from places such as Dallas, Orlando, Toronto, and Washington, D.C.; officials said research shows a mix of family visits, outdoor recreation, and varied Kentucky offerings, and that 81% of overnight visitors are repeat visitors. They also discussed the potential impact of tariffs and trade tensions on bourbon-related tourism and international visitation, especially from Canada, and officials said they were monitoring the situation with U.S. Travel Association and Brand USA. The committee then heard from Kentucky State Parks officials on capital projects funded through HJR 76, HJR 56, and House Bill 6. They said they are providing quarterly project reports and have been meeting regularly with the Finance Cabinet’s engineering and contract staff. The presentation focused on campground utilities, broadband, and structural upgrades, including $40 million for campground improvements across the park system, with completed bathhouse renovations at Barren River and Nolin Lake and additional projects underway or in planning. Officials said the work is based on camper survey feedback, such as requests for better Wi-Fi, sewer and electric upgrades, frost-free spigots, and improved site layouts, and noted that the My Old Kentucky Home campground project is under construction and expected to be completed by spring 2026.

Transcript Highlights:

• And back then, a lot of projects... Projects were done, several of them.
• Project Fund.
• to not get that project done.
• It supplements another project of ours, but it's supplemental to a project.
• It's a local lead project.

Transcript Highlights:

• </c> related project. related project.
• project.
• After project.
• After project.
• So that project was a combined project with St.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• ADCAP is not just a housing project.
• Funding for this project is critical because it will Carbonization project on our Seattle campus.
• In fact, there was one project that.
• , their list of prioritized projects.
• , their list of prioritized projects.

Summary: The Ways and Means Committee held its first meeting of the 2026 session to hear Governor Ferguson’s proposed supplemental capital budget from OFM. Budget staff said the proposal uses nearly all of the roughly $400 million in available bond capacity, leaving about $5.4 million unused, and includes additional funding from the Common School Construction account, the Climate Commitment Account, and federal funds. OFM described housing as the largest priority, with $237 million total, including $225 million for the Housing Trust Fund for affordable rental housing, homeownership, preservation, and manufactured home community acquisition; it also highlighted urgent state facility needs, climate and clean energy investments, natural resource projects, and education funding for school seismic safety, small district and tribal compact school modernization, lead pipe remediation, and higher education preservation projects. Committee members asked about the timing of housing production, and OFM said the proposed supplemental projects would not be completed within the biennium. Public testimony in the housing section strongly supported the governor’s housing investments, especially the Housing Trust Fund, manufactured housing preservation, and homeownership programs, while several speakers asked for larger appropriations for workforce housing, community land trusts, right-to-counsel, and specific local projects such as Thrive Center Tacoma, Alliance Place, Casa Mia, and Native and immigrant community facilities. One testifier criticized overall state tax policy, but the chair clarified that the capital budget is bonded and does not directly raise taxes. Testimony on K-12 education generally supported the proposed funding for small school modernization, seismic safety, and Healthy Kids, Healthy Schools lead remediation, with rural districts emphasizing the importance of planning and construction grants for aging facilities. Higher education witnesses supported preservation and deferred maintenance funding but asked for additional support for projects at Cascadia College, WSU Spokane, UW’s decarbonization work, and other campus infrastructure needs. Natural resources testimony backed Salmon Recovery Funding Board and community forest investments, while asking for more funding for ranked RCO projects. In the final section, local governments and utilities opposed a proposed $75 million transfer from the Public Works Assistance account to the operating budget, warning it would reduce infrastructure lending capacity; other speakers supported the Washington State Green Bank, public works financing, and several local economic development and utility projects. No votes or formal committee action were taken at the meeting.

Transcript Highlights:

• </c> Highway expansion projects Highway expansion projects um<00:20:59.320><c> so</c><00:20:59.679><c
• </c> have already programmed those projects have already programmed those projects and<00:21:29.000><
• One is, if a project can be mitigated by another project, right?
• One is, if a project can be mitigated by another project, right?
• > we</c><01:14:58.679><c> always</c> projects versus local projects we always projects versus local projects

Committee: House Transportation Finance and Policy

Transcript Highlights:

• This is a much needed project.
• These are unfunded projects.
• their project.
• For the laws of 2023, all projects are completed except for the last project, which is a local lead project
• On page number 12, this is an overview of our transportation project fund projects.

Summary: The committee first heard HB 299, a bill to support the Highway 180 project between Deming and Silver City. The sponsors described it as a three-phase road expansion that is already partly complete, but they emphasized rising construction costs, frequent accidents, heavy mining traffic, and the importance of the route to the local economy, tourism, and access to Silver City. A DOT engineer confirmed the project’s phases and cost increases, and the bill drew support from a former DOT official and others. The committee voted do pass, 6-0. The committee then heard HB 325, which would create a railroad crossing safety fund to help improve crossings statewide with lights, gates, overpasses, and other safety measures. Sponsors said the fund would be seeded with a modest amount and could leverage local, federal, and possibly public-private funding, with DOT setting rules and priorities. Railroad lobbyists from Union Pacific and BNSF supported the bill, saying it would help address a major public safety issue, especially for smaller communities. The committee voted do pass. Next, SB 73 was presented to require driver education schools to include at least three hours of instruction on vulnerable road users, such as pedestrians, cyclists, and motorcyclists. Supporters said the bill would improve awareness and safety at low cost, and public testimony included a bicyclist and a parent who lost a daughter in a crash involving a vulnerable road user. Some members asked how the requirement would apply to first-time or older drivers, and sponsors said it would be part of driver education curriculum developed by MVD and DOT. The committee voted do pass, with one member explaining a vote to note the bill should be read as applying to any first-time driver, not just young drivers. The committee also heard SB 111, which would align the Motor Vehicle Division’s confidentiality rules with last session’s SB 36 by protecting personal information such as sex, gender identity, immigration status, and national origin from public disclosure. The Taxation and Revenue Department said the change was meant to close a gap in the law and prevent release of sensitive data in response to public records requests, while still allowing disclosure for law enforcement and other legally required purposes. The bill passed on a 6-1 vote, with one member voting no and saying he was frustrated by last-minute efforts to fix problems he did not see as existing. The meeting concluded with lengthy DOT district presentations from District 1 and District 6, covering budgets, completed and ongoing projects, local road and bridge work, equipment needs, and unfunded priorities. Members asked about specific projects, freight routes, cattle guards, dust and weather issues, striping contractors, and how projects are prioritized under the state’s asset management scoring system. DOT officials said many projects were complete or underway, that some major projects would be funded through Senate Bill 2 or other appropriations, and that equipment and recurring maintenance funding remain major concerns. The committee adjourned after thanking DOT staff and members for their work.

Transcript Highlights:

• about 400 higher education projects, 400 state agency projects, that there's a lot more projects with
• We also typically see with capital Projects that just on a project-by-project basis, there is more spending
• Projects in FY25.
• projects moving slower and sewer projects.
• They used 3% of the project to try to bind the project and keep the project from being reverted back.

Transcript Highlights:

• How are we paying our project managers to complete projects?
• They're a fence project, a storage shed, you know, small type projects.
• Some of these projects are probably ARPA projects as well.
• projects.
• have its own project manager.

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• Project was first awarded. Mr.
• Projects coming for future awards include teacher housing projects; 7 are standards projects.
• They may have more money in one project and are able to cover that project more fully than another project
• on this project.
• for future projects.

Committee: House Public School Capital Outlay Oversight Task Force

Transcript Highlights:

• </c> project has developed a carbon project project has developed a carbon project with<00:15:45.520>
• </c> develop these projects. develop these projects.
• </c> project under ACR 2.1. project under ACR 2.1.
• </c> a carbon project. a carbon project.
• </c> fewer projects. fewer projects.

Summary: The meeting began with introductions, approval of the March 6 minutes as amended to add an attendee list, and a brief overview of the day’s agenda. The committee heard two presentations from carbon project developers, with the first from Dylan Jenkins of Finite Carbon. He described Finite Carbon’s work in improved forest management projects, its role in developing carbon methodologies and protocols, and its experience with projects in New England, Appalachia, Alaska, and Canada. He also outlined the difference between compliance and voluntary carbon markets, the role of registries and intermediaries, and the types of buyers in the market, including large corporate buyers and long-term off-take partners. A major focus of the presentation was how forest carbon projects are structured and how credits are monetized. Jenkins distinguished between removals and reductions, explaining that removals come from new forest growth while reductions are tied more closely to baseline assumptions and standing stock. He said improved forest management projects can generate both types of credits, and that removals generally command higher prices because they are easier for buyers to understand and verify. He also emphasized that carbon project commercialization can occur before, during, or after credit issuance, and that landowners may be paid through a variety of structures, including leases, advance fees, per-unit payments, or off-take agreements. Jenkins then addressed the committee’s tax-related questions, saying House Bill 123 appeared intended to treat carbon credit sales similarly to timber sales for local tax purposes. He argued that carbon credits are a forest product and that taxing them can be reasonable in principle, but he stressed that lawmakers should distinguish between commoditization and commercialization when deciding what event to tax. He noted that credits may be created but never sold, and that in some programs landowners retain timber and carbon rights while in others the developer has deeper control over those rights. In response to questions, he said the industry uses protocols, verification, and third-party oversight to address baseline and quality concerns, but acknowledged that baseline setting remains a major point of debate in the market.

Transcript Highlights:

• This project is in this project.
• project with me.
• </c> $45 million project cost. $45 million project cost.
• </c> the project. the project.
• </c> the 169 project done. the 169 project done.

Committee: Senate Transportation

Transcript Highlights:

• This project is shovel-ready.
• Securing funding this biennium will enable a small enabling project and allow this project to begin and
• I represent Trout Unlimited as a project manager for a large restoration project along Hangman Creek,
• This project supports two main goals.
• Request to fully fund our project.

Summary: The Capital Budget Committee held a hearing on Proposed Substitute House Bill 2295, the supplemental capital budget. Staff said the proposal totals nearly $911 million, including about $400 million in bonds and $511 million from other state and federal sources, with much of the increase over the governor’s proposal coming from Climate Commitment Act (CCA) funding. Major spending areas include housing and homelessness, K-12 construction, human services facilities, and CCA-funded clean energy, decarbonization, and habitat restoration projects. The chair said the committee would not take amendments at the hearing and planned to vote out the budget on Thursday, with a technical fix striker expected. Testimony was largely supportive of the House proposal, with many witnesses asking the committee to preserve or increase specific items in final negotiations. Housing advocates urged support for the Housing Trust Fund, manufactured housing preservation, and projects such as Alliance Place, Cloverdale Cottages, Cherry Street Village, Somos, and the Thrive Center. Education and public facility witnesses backed investments in school seismic safety, small district modernization, Healthy Kids Healthy Schools, community college and university maintenance, and projects at Cascadia College, WSU, CWU, and UW. Health and human services testimony supported behavioral health, Tubman Center, HealthPoint, pregnant parenting treatment, and the Yakima Behavioral Health Hub. Natural resources, climate, and infrastructure witnesses praised funding for Flood Plains by Design, community forests, trust land transfer, salmon recovery, the Skokomish land purchase, and the Lower Columbia River dredging project. Several local governments and organizations requested additional support or Senate-level funding for specific projects, while Climate Solutions cautioned against using CCA dollars to backfill existing obligations. The committee heard no votes during the hearing, and the chair closed by saying the budget would be executed on Thursday.