Transcript Highlights:

• The last thing that I'll kind of leave you with is there are, The last thing that I'll kind of leave
• Yeah, and so I'll leave it there for the last talk. All right. I'm going to go.
• And I'll note that both the annual fee and the RUC rate are indexed to inflation, so they increase annually
• program and still pay less than that annual fee.
• owners paying the annual fee.

Committee: House Transportation

Summary: The Assembly Transportation Committee first took up three highway memorial naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar on an 11-0 vote, with the roll not held open. The chair also recognized committee science fellow AJ Mendeola for his service before adjourning the bill-hearing portion and moving to an informational hearing. The informational hearing focused on alternatives to the gas tax and how other states are responding to declining fuel-tax revenue. A first panel of researchers and policy experts described the erosion of gas-tax receipts due to inflation, improved fuel efficiency, and growth in electric vehicles, and compared options such as EV registration fees, kilowatt-hour charging fees, delivery fees, transportation network company fees, managed lanes, and road usage charges. Witnesses generally said road usage charges best preserve the user-pays principle, but they also emphasized that implementation costs, privacy concerns, and public understanding remain major obstacles. Committee members raised concerns about fairness for commuters, low-income drivers, and EV adoption, while some members argued a mileage-based system could amount to a new tax unless the gas tax is actually repealed. The second panel featured state officials from Hawaii, Utah, Oregon, and Virginia describing their programs. Hawaii said it launched its road usage charge program on July 1, 2025, using existing safety-check and registration systems, with EV owners initially choosing between a per-mile charge and a flat annual fee before mandatory EV participation begins in 2028 and a broader transition plan is due by 2026. Utah described its voluntary EV road usage charge program, annual flat fee option, quarterly reporting, privacy protections, and recent cost reductions as enrollment grows. Oregon began outlining its structural funding challenges and constitutional cost-responsibility framework, while the hearing overall underscored that states are experimenting with different approaches but have not settled on a single replacement for the gas tax.

Transcript Highlights:

• Parents and employers may contribute an additional $5,000 annually.
• I get an annual statement from your... ...to, well, we can... I'm referring to...
• No, we will clarify that because I get an annual...
• I also am a participant and I get an annual statement, but that is on my SMART plan.
• Under the annual support and incentive grant, ...to the state 911 department under the annual support

Committee: Joint Joint Committee on State Administration and Regulatory Oversight

Summary: The committee first heard testimony on a proposed Massachusetts baby bonds program, including H. 3429, S. 2146, and the Treasurer’s related bill H. 48. Treasurer Goldberg and a broad coalition of advocates, researchers, health professionals, and people with lived experience said the program would create trust accounts for children born into low-income families or in DCF custody, with funds available at age 18 for education, homeownership, business startup, or other long-term asset-building uses. Supporters argued the program would help close the racial wealth gap, improve economic mobility, and not affect eligibility for financial aid or public benefits. Committee members asked about administration, investment returns, eligibility, and withdrawal rules; the Treasurer said the accounts would be held in trust and managed by her office with an advisory board, with funds accessible at 18 and usable through age 35 if the beneficiary remains a Massachusetts resident. No vote was taken during the testimony shown. The committee also heard testimony on legislation establishing Lobular Breast Cancer Awareness Day, including S. 2666 and H. 4625. Senator Ross, Representative Badger, physicians, survivors, and advocates described invasive lobular carcinoma as difficult to detect because it often grows in lines rather than forming a lump, can be missed on mammography, and is underfunded and underrepresented in research and clinical trials. Witnesses said the bill would codify an annual October 15 proclamation to raise awareness, improve diagnosis, and encourage more targeted research and treatment. Committee members asked why the disease is so hard to detect, and medical witnesses explained the imaging challenges and the lack of lobular-specific protocols. The witnesses urged favorable reports. The committee then took testimony on H. 4648, a bill concerning the purchase or lease of Fenn Farm in Stockbridge by the Stockbridge-Munsee community. Representative Davis, the Stockbridge Land Trust president, and the tribal president testified that the bill would remove a conservation restriction tied to a state MVP grant so the tribe could manage the land without a restriction that they said would conflict with tribal sovereignty and Indigenous stewardship practices. They said the parcel is a sacred site connected to Monument Mountain and that the restriction is unnecessary because the land is already surrounded by conserved property. The witnesses asked for favorable action on the bill. Finally, the committee heard testimony on H. 3416, a resolution urging Congress to create a national infrastructure bank. Representative Senna and several advocates argued that an off-budget infrastructure bank could finance major repairs and upgrades to roads, bridges, rail, water systems, broadband, and housing without adding to the state budget, while creating jobs and supporting economic growth. Witnesses cited historical precedents for national infrastructure banks and said Massachusetts could benefit substantially from such a program. The transcript shown does not include a committee vote or final action on the resolution.

Transcript Highlights:

• This process leaves a lot to be desired. This process leaves a lot to be desired.
• This process leaves a lot to be desired. This process leaves a lot to be desired.
• They're projected to leave operating deficits in the range of $8 billion to $10 billion annually.
• Some of that is due to annually—annually, excuse me, yes.
• Because what it leaves us with, what it eventually leaves us with, is doing bonds, you know, borrowing

Summary: The Senate Committee on Budget and Fiscal Review heard the 2026-27 budget package, including AB 111 and AB 112 plus 16 trailer bills and two policy bills. Chair Laird described the budget as balanced over two fiscal years, with about $351.7 billion in total spending, $251.5 billion General Fund, and record reserves, while emphasizing investments in child care, homelessness, housing, Medi-Cal, education, courts, and other core programs. The Department of Finance presented each bill, outlining major items such as Medi-Cal adjustments tied to federal H.R. 1, child care and early learning funding, education and higher education investments, human services, developmental services, health, skilled nursing, resources, energy, transportation, housing, labor, state government, courts, taxation, and two policy bills on education governance and ballot measure placement. The LAO said it had no additional comments but was available for questions. The committee later achieved quorum and moved to member questions and comments, with no votes taken in the portion provided. Members largely focused on the budget’s fiscal structure and policy implications. Several senators praised staff and noted the compressed timeline, while Vice Chair Niello criticized the process as overly complex and burdensome. Senator Smallwood-Cuevas supported the budget but raised concerns about Medi-Cal changes for people with unsatisfactory immigration status, asking about access to care, the number affected, and county eligibility support; Finance said about two million people would transition to fee-for-service and that $39 million was included for care coordination, along with additional county eligibility funding. Senator Durazo said the agreement delayed, but did not resolve, cuts to immigrant health coverage, dental, and clinic payments, and argued that the budget did not create a true restoration mechanism. Senator Richardson highlighted hospital funding, public hospital definitions, DMV data protections, and court construction and maintenance needs, while Senator Grove questioned the sustainability of spending, the Medi-Cal savings assumptions, distressed hospital funding, Planned Parenthood transparency, developmental services changes, high-speed rail costs, and the property tax postponement program. Other members emphasized different priorities. Senator Blake Spear praised climate and parks investments, support for HAP homelessness funding with accountability, transit stabilization, and Care Court referral funding, while expressing concern about the lack of wildlife coexistence funding and long-term transit operating support. Senator Weber Pearson raised a technical concern in the health trailer bill regarding menopause language, arguing that the bill should refer to perimenopausal symptoms and should not narrow provider participation through contracting language. Throughout the hearing, Finance repeatedly explained that many of the budget’s savings came from reduced caseloads or delayed implementation of prior proposals, while some new spending was added to mitigate impacts and support administration of the changes. No final committee action or vote was shown in the excerpt.

Transcript Highlights:

• </c> according to Genworth a por annual according to Genworth a por annual nursing<00:51:31.960><c> home
• unsustainable a budget that leaves unsustainable a budget that leaves nursing<01:41:38.320><c> homes
• But the estimated annual cost shift for Traverse County, just on an annual basis, is about $395,000 in
• Some of the most successful people leave the state.
• </c> so if we simply change that annual so if we simply change that annual review<01:59:14.280><c> to

Committees: Senate Health and Human Services , Senate Human Services

Transcript Highlights:

• Let's leave it to the analyst office. Thank you.
• So we don't believe this was leaving General Fund on the table.
• We cannot just leave illicit product on the shelf, so we seize that product.
• We cannot just leave illicit product on the shelf, so we seize that product.
• So we'd like to leave with that. So I didn't mean to pick on you.

Summary: The subcommittee first received an informational update on the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in College Corps, Youth Service Corps, and Climate Action Corps, along with outreach results from OCPSC and the Trusted Messenger Network. The Department of Finance said the programs remain a priority but noted prior budget reductions, while the LAO said it had no new recommendations. Committee members raised questions about program diversity, geographic reach, administrative costs, and whether the programs duplicate existing volunteer opportunities; one member criticized the programs as costly and duplicative, while another emphasized the value of volunteerism and asked about the men’s service challenge. The item was informational only. The committee then heard an overview of the Board of Equalization’s property tax responsibilities and its first budget proposals since the 2017 reorganization. BOE described its role in county assessment oversight, state-assessed property valuation, and related tax administration. Members asked about BOE’s interaction with counties, property tax reassessments, and local tax notices; BOE explained it mainly works with county assessors and handles technical property tax questions, while local special district charges are generally outside its scope. The committee also considered a BOE proposal to implement SB 293, which would give additional time for certain intergenerational property tax transfer claims after the 2025 wildfires. BOE requested $154,000 for guidance, public materials, and inquiry response work, saying the change is urgent for wildfire-affected families, especially in Altadena. The LAO had no concerns, and the item was held open. BOE also presented an information technology modernization proposal for its state-assessed property program, seeking $3.2 million in 2026-27 and $3.1 million in 2027-28 to replace a 30-year-old mainframe system. BOE said the current system relies heavily on manual data entry and paper processes, creating inefficiencies, cybersecurity risks, and delays, while modernization would free staff for more audits and valuation studies. The LAO supported the need but urged a high bar for new IT projects; Finance said the project met the threshold of necessity. Members generally supported the upgrade but asked about audit gains, revenue impacts, and implementation risks, and the item was held open. Finally, CDTFA gave its department overview and then discussed a proposal to require all delivery network companies, such as Uber Eats and DoorDash, to be treated as marketplace facilitators for sales tax purposes. CDTFA said the current carve-out creates confusion for restaurants and small businesses because some DNCs collect and remit tax while others do not, and the change would improve compliance and shift reporting to larger platforms. Members debated whether the proposal amounts to a tax increase for consumers, with CDTFA and Finance arguing it is a consistency and compliance measure rather than a new tax, while others said it would likely raise consumer costs. The committee also discussed broader CDTFA issues, including local sales tax districts, revenue-sharing agreements, and the growth of special taxing jurisdictions. No votes were taken, and the agenda items were informational or held open.

Transcript Highlights:

• According to the fiscal note for Senate Bill 2 by TRS, it indicates that a 1% annual decline in active
• But I will say, the estimate of how many students would leave.
• We are experiencing, on an average annual basis, an increase. the number of active employees that are
• It seems like most of the motivating factors for teachers leaving has to do with their experience.
• I mean, there was a period of time where, you know, annual inflation was trending above 6%. for sure.

Committee: House Pensions, Investments & Financial Services

Transcript Highlights:

• Our first goal is to help more people leave unsheltered homelessness.
• So leaving— is that how we measure it? That metric? We would say exit unsheltered.
• In July and annually thereafter, as you just heard.
• Yeah, we engage annually during the park maintenance inspection program annual meetings.
• And I just want to leave one thing with you: many years ago, Mr.

Transcript Highlights:

• The unchanged formula leaves colleges with a 6% funding deficit.
• In addition, limiting Parent Plus loans borrowing. annually.
• And a lot of those friends that I saw leave, they never came back, and I, you know... ...that I saw leave
• Non-tuition costs for student parents exceed $37,000 annually.
• Non-tuition costs for student parents exceed 37,000 annually.

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Transcript Highlights:

• You know, I hope that we're not leaving any of these sectors, you know, disproportionately behind.
• So I will leave it there, and we appreciate it so much, your attendance. Nice to see you and...
• Where does that leave us as a state in terms of the contribution that you're asking us to make?
• It is concerning, but I will leave it at that and thank you. I will now have public comment.
• Right now, their annual annual is to pay to the state of California is $2,800 a year.

Transcript Highlights:

• I handed in my flyer and forgot to give you my annual report, so I will leave that before.
• I leave today, so you all have that to look at.
• This is an annual application process.
• Um, I'll try and leave as much time for discussion.
• I'm sorry I'm leaving you out of discussion.

Transcript Highlights:

• That maneuver leaves about a billion dollars in the account, both in FY26 as well as FY27, and leaves
• They leave the program after about an average of five months, making almost $48,000 annually.
• They leave the program after about an average of five months, making almost $48,000 annual. program after
• about an average of five months making almost $48,000 annually.
• Please follow suit and don't leave them behind.

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care

Transcript Highlights:

• leaving their school or leaving their districts.
• leaving their school or leaving their districts.
• Okay, but 7 are leaving teaching profession. Yes, as a whole.
• that they must take for pregnancy leave.
• that they must take for pregnancy leave.

Transcript Highlights:

• this state and leave this country.
• I wonder why, instead of the superintendent's office, this specific annual report... ...the annual progress
• Their teacher goes out on leave in October.
• So, as I mentioned in our pregnancy leave... ...in our pregnancy leave bill hearing, we need to consider
• time, to pay for extended leave time.

Summary: The committee began without a quorum and first heard AB 302, which would prohibit schools from requiring students to use addictive social media feeds as a condition of participating in extracurricular activities and would require schools to offer a non-social-media way to communicate with students and families. The author and a student witness argued the bill protects minors from being forced onto addictive platforms, while senators asked how coaches and clubs would communicate; the author said email, built-in messaging, and other direct methods would still be allowed. The bill was held on call for absent members. The committee then took up AB 2504, creating a pilot program to train creative-industry workers for AI-related changes through partnerships among community colleges, employers, unions, and tech companies. Supporters from WME and the Community Colleges Chancellor’s Office said the program would help workers adapt to rapid industry change, while senators discussed the pilot’s size, geographic diversity, and sunset date. The bill passed on a due-pass motion to the Senate Privacy, Digital Technologies, and Consumer Protection Committee. AB 1534 followed, adding state guardrails for federal Workforce Pell short-term training programs, including limits on tuition, restrictions on certain financing products, and transparency rules for partnerships with unaccredited entities. Support came from TICAS, EdTrust-West, and the Campaign for College Opportunity; senators questioned the scope of state authority and why private institutions were not clearly included, and the author said the broader approval framework was being handled in trailer bill language. The bill passed on a due-pass motion to the Senate Labor, Public Employment and Retirement Committee. The committee also heard AB 1381, a gut-and-amend proposal to strengthen screening for school teachers with histories of egregious misconduct while balancing due process and privacy concerns. Supporters and opponents both emphasized student safety and the need for reliable information-sharing, and members noted the bill was similar to a previously held measure; the author said amendments were still being worked out. The bill passed to the Senate Privacy, Digital Technologies, and Consumer Protection Committee. AB 2202, which would create a Closing the Achievement Gap Commission to coordinate statewide efforts, drew broad support from school board and education groups but also concern that it could duplicate existing work and add bureaucracy; after extended debate about whether the commission would identify causes or solutions, it passed to the Senate Appropriations Committee. Finally, AB 1547, requiring a UC feasibility study for a branch medical school in Kern County, drew local support but opposition from a senator who argued the Legislature cannot direct UC’s internal operations under the state Constitution; the chair said the Legislature can make recommendations and the bill remained under discussion.

Transcript Highlights:

• I hope that we're not leaving any of these sectors disproportionately behind.
• So I will leave it there, and we appreciate so much your attendance. Nice to see you.
• We'll leave it there, and we appreciate so much your attendance. Nice to see you in a decade.
• Leave it at that, and thank you. We will now have public comment. Assembly Member, thank you.
• Right now, their annual fee to pay to the state of California is $2,800 a year.

Summary: The Assembly Budget Subcommittee 5 on State Administration heard presentations from Go-Biz and the Department of Financial Protection and Innovation on the Governor’s budget proposals. Go-Biz described California Jobs First, the state’s 10-year economic development strategy, and emphasized support for small businesses, workforce development, and targeted investment in sectors such as ag tech, life sciences, semiconductors, and advanced manufacturing. Members raised concerns about federal policy changes, tariffs, tourism, housing, child care, and whether state incentives are truly additive; Go-Biz responded that it tracks federal actions closely, works with chambers and advocates, and uses programs like California Competes to target jobs that would not otherwise come to California. The committee then reviewed the proposal to restore the California Competes grant program with $60 million. Go-Biz said the grant would help businesses that cannot use the nonrefundable tax credit, and explained the program’s five-year contracts, milestone-based awards, and recapture provisions. The Legislative Analyst’s Office said the grant could be effective but recommended stronger oversight and clearer eligibility criteria, while also noting the 30% cap in trailer bill language may be too restrictive given the smaller funding level. Public testimony supported the grant and suggested considering refundability or transferability for the tax credit to broaden access for smaller and startup businesses. Members also heard the CHIPS-related proposal for $25 million to support Natcast’s semiconductor design and collaboration facility in Sunnyvale. Go-Biz and public witnesses argued the state investment would help secure a major federal research facility, retain engineering talent, and leverage billions in broader investment, while the LAO recommended rejecting the item because of its dependence on uncertain federal funding and the state’s budget condition. The committee also considered a $17 million continuation of CA RISE, which supports employment social enterprises; Go-Biz and several grantees cited strong job placement and workforce outcomes, while the LAO recommended rejection absent a more rigorous evaluation, noting prior LA RISE evidence did not show long-term employment gains. Finally, the Department of Financial Protection and Innovation presented budget requests for IT security and rent increases, and a trailer bill to raise fees across several programs. DFPI said decades-old fee schedules, inflation, and new regulatory responsibilities have created a structural deficit and warned the department could face insolvency without adjustments. The LAO recommended approving the fee increases only on a three-year limited-term basis and asked for more detailed revenue plans for programs not covered by the proposal, so the Legislature can assess actual collections and market impacts before making the changes permanent.

Transcript Highlights:

• And then it leaves the rest of Article Three in place. >> All right.
• Annual meetings.
• </c><00:21:11.720><c> meetings</c> have annual meetings have annual meetings uh<00:21:13.240><c> at</
• </c> me that it might be a good idea to leave me that it might be a good idea to leave it<00:21:28.280
• Thank you. are going to require an annual meeting are going to require an annual meeting anyway<00:24

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• So, members, we will close public testimony and we will leave Senate. 437 pending.
• This annual training requirement is redundant in its content.
• If not, we will close public testimony and we will leave this bill pending at this time.
• Leave. Come on up and we'll let you register.
• pay around $15,000 annually. per person a year.

Bills: SB437 , SB528 , SB626 , SB636 , SB884 , SB968 , SB1044 , SB1608 , SB2336

Committee: Senate Health & Human Services

Transcript Highlights:

• cost reports annually.
• cost reports annually.
• cost reports annually.
• cost reports annually.
• </c> or um utilizing cost reports annually. or um utilizing cost reports annually.

Summary: The Medicaid Oversight and Advisory Board meeting began with a roll call and approval of the October 7 meeting minutes. The chair then reordered the agenda to hear the item on Medicaid reimbursement rates and network adequacy first because of scheduling issues. Dr. Steve Robertson of the Kentucky Dental Association was sworn in and testified at length about Kentucky’s dental Medicaid program, arguing that reimbursement rates are unsustainably low, have been largely flat for decades, and are often below the cost of providing care. He said Kentucky ranks near the bottom nationally in oral health, dental Medicaid rates are often 60% or less of commercial rates, and the program’s share of the Medicaid budget has effectively remained around 2% despite growth in enrollment and services. Dr. Robertson said the low rates are contributing to provider losses, rural access gaps, longer wait times, dental deserts, and greater use of emergency rooms for preventable dental problems. He cited examples of office costs exceeding reimbursement for basic procedures, noted that many dentists are small private businesses, and said the state is struggling to recruit and retain dentists because of low payment levels and high student debt. He also pointed to disparities with neighboring states and said recent increases in some oral surgery and cleaning codes were not enough to address the broader problem. His recommendations included completing the rebasing study, increasing dental reimbursement in the upcoming budget, tying future reviews to inflation and cost data, aligning benchmarks, and prioritizing preventive and restorative care to improve workforce stability and access. Board members asked about the size of the needed increase, the effect of private insurance on dental practice finances, and what a new dentist might expect to earn. Dr. Robertson said the association is working on an appropriations request and that private insurance pressures are part of the problem as well, since many plans are HMOs or PPOs with limited provider control over rates. He also said the association can no longer conduct reimbursement surveys because of FTC restrictions, but would try to obtain current ADA data. In response to questions about the future of the program, he warned that without significant changes it could become unsustainable and cited Ohio and Missouri as examples where higher reimbursement improved provider participation and access. The board then heard from Mr. Bowman of Baldwin Consulting, who discussed outpatient behavioral health providers, including ABA therapy and mental health/substance use disorder services. He said these providers face similar issues of rising costs, flat reimbursement, and access problems. He reviewed Kentucky’s network adequacy standards, including travel-time standards, 30-day appointment limits, and newer federal requirements that will require services within 10 business days by 2029. He said wait times for outpatient behavioral health, especially children’s services and ABA, have grown substantially, sometimes to more than a year, and emphasized that the Medicaid department must enforce these standards.

Transcript Highlights:

• What I mean by that is annual cost-of-living increases cannot...
• If you measure inflation just annual, what was the average annual inflation rate from 2005... means.
• If you measure inflation, just annual, what was the average annual inflation rate from 2005.
• If you measure inflation annually, the average annual inflation rate from 2005 to 2024 for the U.S. was
• in the program when they leave and claim benefits out of state.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on October 8 with introductions from council members and staff, then received a detailed presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems are currently 100% funded on a smoothed basis, with open plans above 95% funded, and that legacy Plan 1 systems remain on a path toward full funding under current policy. The actuaries recommended updating assumptions to 3% inflation, 3.5% general salary growth, and a 7.25% investment return, while keeping Plan 1 membership growth at 1%. They also explained asset smoothing, the role of recent strong investment returns, and the expected budget impacts of the recommended changes. Representatives from the Economic and Revenue Forecast Council and the State Investment Board offered supporting perspectives, generally describing the assumptions as reasonable and consistent with their own outlooks. The council also heard an overview of the Long-Term Services and Supports Trust Program (WACares) from DSHS and OSA. Program staff described the program’s social insurance structure, premium collection, benefit eligibility, and upcoming implementation milestones. OSA reported that the program’s first actuarial valuation showed a positive actuarial balance under the base scenario and recommended no change to the current 0.58% premium rate during the program’s early learning phase, noting that future changes would depend on experience and the program’s risk-management framework. OSA also said the recommendation would remain the same regardless of the outcome of the pending ballot measure affecting investment options. During public comment, a representative of the Washington State School Retirees Association urged continued work on Plan 1 funding and related legislation, while the Association of Washington Cities cautioned against increasing pension assumptions in a way that could raise future employer costs and reduce flexibility for current local government services. In action, the council adopted a motion to maintain the current long-term economic assumptions by a 4-2 vote, adopted the recommendation to keep the WACares premium rate at 0.58% by a 6-0 vote, and then elected Katie Chapman as council chair by unanimous vote. The meeting then adjourned.

Transcript Highlights:

• According to the latest data from the Greater Boston Food Bank in Mass General Brigham’s sixth annual
• Paid Family and Medical Leave and Unemployment Insurance for Graduate Student Workers.
• So I'm just going to read one more line, and I'll leave you to read the rest on your own.
• And so when we see this recurring, it's almost an annual event now.
• And so when we see this recurring, it's almost an annual event now.

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

Transcript Highlights:

• The preferences provide reduced B&O tax rates for beneficiaries based on annual income.
• The preferences provide reduced B&O tax rates for beneficiaries based on annual income.
• The second metric is the annual change in the number of... habitat nor a trust organization.
• The second metric is the annual change in the number of Oh.
• These dollars leave our community. These dollars leave our community and never come back.

Summary: The committee first received a JLARC work session on the 2025 tax preference performance reviews, covering nine tax preferences and recommending legislative action on eight. JLARC reviewed natural gas transportation fuel preferences, travel agent and tour operator B&O rates, a property tax exemption for nonprofit low-income housing developers, and several shorter reviews including senior center property tax relief, a disabled veteran adapted housing remittance, trade convention nexus treatment, wholesale sales of fertilizer/pesticides/seed, a hazardous substance tax exemption for pesticides stored for out-of-state shipment, and three energy-related preferences for a silicon smelter. JLARC generally recommended continuing preferences that met stated or inferred objectives, modifying some to improve reporting or performance metrics, and allowing the unused silicon smelter preferences to expire. The Citizen Commission endorsed JLARC’s recommendations, and committee members asked a few clarifying questions, including about trends in travel agent/tour operator beneficiaries and the housing exemption’s performance metric and data issues. The committee then heard a work session and public hearing on Senate Bill 5754, which would create a Washington State public bank. A presentation from California public banking advocates and the Bank of North Dakota described public banks as government-owned financial institutions intended to keep public funds working locally, support lending for housing, infrastructure, and community development, and partner with community banks and credit unions. Committee questions focused on leverage, liquidity, constitutional issues, and how the model would interact with existing state investment and debt structures. Staff summarized the bill’s structure, including activation conditions, governance, powers, and fiscal impacts, noting the fiscal note was largely indeterminate and startup costs could be significant. Public testimony on SB 5754 was divided. Supporters included statewide elected officials, county and city officials, labor, educators, community advocates, and residents, who argued the bank could lower borrowing costs, improve access to capital, keep public money in Washington, and help finance infrastructure, housing, and disaster resilience. Opponents included community bankers and county treasurers, who warned about risks to safety and liquidity of public funds, questioned the need for a new institution given existing programs, and argued the proposal lacked a proven track record in Washington. The hearing concluded with no vote taken in the transcript.