Transcript Highlights:

• You’re looking at, you know, I’ve wondered with the tariffs how that’s playing into corporate income,
• and will it have a positive impact, considering that there’s refunds on the tariffs right now?
• cautious on this because, again, there is a big uncertainty on the economy, the Iran war, and the tariff

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• In June, we filed a rate case before the Corporation Commission to modify that data center tariff from
• And then lastly, we proposed a couple of things in our data center rate tariff.
• And then lastly, we proposed a couple of things in our data center rate tariff.

Bills: HB2133 , HB2592

Committees: House Artificial Intelligence & Innovation , House House Artificial Intelligence & Innovation Committee of Reference

Keywords: sexual material, consent, synthetic depiction, privacy, internet regulation, rights protection, artificial intelligence, government regulation, innovation, procurement, administrative burdens

Transcript Highlights:

• We also knew tariffs were coming. We didn't know how that would affect the economy.
• thing, because now the revenue estimates are down based upon the big, beautiful bill and what the tariffs
• It could have been tariffs. It could have been a lot of other things that were going on.

Committee: Senate State Affairs

Transcript Highlights:

• Estes, for five minutes. tariff policy, likely because they know tariff policy, likely because they know
• <c> expected</c><04:28:14.080><c> to</c> Trump's tariffs are also expected to Trump's tariffs are also
• </c><04:52:17.120><c> this</c> tariffs.
• They can end the tariffs this tariffs.
• ,</c> President Trump's reckless tariffs, President Trump's reckless tariffs, which<05:50:04.480><c>

Bills: HJR89 , HJR87 , HJR88

Keywords: EPA, pollution control, California emissions standards, NOX regulation, congressional disapproval, HJR87, H.J.Res. 87, Congressional Review Act, CRA, EPA waiver, California waiver, preemption, vehicle emissions, heavy-duty trucks, engine emissions, Advanced Clean Trucks, zero-emission vehicles, ZEV, zero-emission airport shuttle, powertrain certification

Transcript Highlights:

• emphasize again what Chair Robinson said when we opened up: the implications of HR1, as well as the tariffs
• There's a reason why we played in the conversations legally about the tariffs.

Summary: Senate budget writers, led by Chair June Robinson with Senators Noel Frame and Derek Stanford, rolled out the Senate operating budget and described it as a difficult supplemental budget shaped by flat revenue growth, rising maintenance costs, and uncertainty from federal actions, including H.R. 1 and tariffs. They said the proposal aims to preserve core services such as K-12 education, health care, food assistance, housing stability, and long-term care while making targeted reductions and avoiding broad-based tax increases like sales, property, or B&O tax hikes. A major focus of the discussion was how to pay for the Working Families Tax Credit and how to handle cuts in the Working Connections child care program. Robinson said the Senate budget uses policy changes, especially an attendance-based payment adjustment, rather than the governor’s proposed enrollment cap and waitlist, because lawmakers wanted to avoid destabilizing the child care workforce and reduce harm to families. She also said the Senate is open to negotiating with the House on the Climate Commitment Act use of funds for the tax credit, noting that the statute allows it, though some advocates oppose that approach. The senators defended using $750 million from the rainy day fund, saying it was preferable to deeper cuts and still leaves reserves above $1 billion in the near term. They also argued that Washington’s revenue system is too dependent on property and sales taxes and that a future “millionaires tax” could help stabilize funding, especially for education and other core services. In response to criticism from educators and Republicans, they said the state has made progress on school funding and that rising program costs reflect increased need and utilization rather than waste. No votes were taken in the transcript, and the event was a budget rollout and press Q&A rather than a formal committee action.

Transcript Highlights:

• SB 1220, SD 2, HD 1, relating to renewable gas tariff.
• SB 1220 Senate draft two house draft one relating to renewable gas tariff on behalf of the Senate, myself

Transcript Highlights:

• plan and we're looking at possibly 3.5 more years of, uh, of interesting times, um, the impact of tariffs
• plan and we're looking at possibly 3.5 more years of, uh, of interesting times, um, the impact of tariffs
• plan and we're looking at possibly 3.5 more years of, uh, of interesting times, um, the impact of tariffs
• plan and we're looking at possibly 3.5 more years of, uh, of interesting times, um, the impact of tariffs
• on uh, New Hampshire's energy tariffs on uh, New Hampshire's energy future.<00:46:06.000><c> Um,</c>

Committee: House Science, Technology and Energy

Transcript Highlights:

• I think with the uncertainty of the economy, consumer demand, tariffs, things like that, and the relatively
• , consumer uncertainty of the economy, consumer demand,<00:08:39.839><c> um,</c><00:08:40.080><c> tariffs
• </c><00:08:40.560><c> things</c><00:08:40.719><c> like</c><00:08:40.880><c> that,</c> demand, um, tariffs
• , things like that, demand, um, tariffs, things like that, and<00:08:41.279><c> relatively</c><00:08:
• that's going on, that'll the tariffs that's going on, that'll settle<01:12:15.920><c> out</c><01:12:

Committee: Senate Ways and Means

Transcript Highlights:

• I would think that if the tariffs were to go into effect, as have been mentioned—for example, something
• Some of the tariffs will have to be passed on to consumers in the form of higher prices.
• I I would think that if the tariffs were I I would think that if the tariffs were to<01:08:10.440><c>
• Some of the tariffs will have to be passed on to consumers in the form of higher prices.
• I would expect that some of the tariffs will have to be passed on to consumers in the form of higher

Summary: The meeting was a Ways and Means briefing opened by the vice chair, who introduced Jason Wong of the Federal Home Loan Bank of Boston to discuss the national and regional economy. Wong focused on inflation, asking why it had fallen from about 9% in 2022 to the 2%–3% range, and what that meant for monetary policy and the risk of an economic downturn. He said the Fed’s target is 2%, noted that recent PCE inflation was about 2.4% and core PCE about 2.7%, and described the ongoing debate over whether interest rates should stay tight or be lowered further to protect the labor market. Wong explained that the improvement in inflation has been driven largely by goods prices, especially durable goods such as cars, appliances, and furniture, as well as non-durable goods like food. He said supply-chain disruptions during the pandemic caused major price spikes in 2022, but those pressures have eased and many goods prices are now at or below the Fed’s target. He also referenced the New York Fed’s Global Supply Chain Pressure Index, saying it showed extreme pandemic-era disruptions that have since receded. The main remaining inflation problem, he said, is in services, especially housing. Wong broke services into rent of shelter and all other services, explaining that shelter is a large share of household budgets and that housing inflation has a lag because rent measures often reflect older lease terms rather than current market rents. He said monthly Zillow data suggest market rents have cooled and may eventually feed through to official inflation measures. Members asked several questions about the chart’s time scale, the treatment of real estate, property taxes, and utilities, and Wong clarified that housing costs are counted in services and that the slides would be shared digitally. No votes or formal actions were taken.

Transcript Highlights:

• That's something that could impact the economy, same with any potential tariffs or sanctions.
• That's something that could impact the economy, same with any potential tariffs or sanctions.
• In the long term, tariffs at that level are significantly detrimental to the economy.
• </c> area and and in the long term uh tariffs area and and in the long term uh tariffs at<03:17:11.840
• </c><03:17:54.239><c> so</c> potentially uh impacted by a tariff so potentially uh impacted by a tariff

Summary: The committee meeting began with an overview from the Legislative Budget Assistant Office on how Ways and Means will work with agencies and leadership during the budget and revenue-estimating process. Staff explained that the governor’s budget is still being developed, agencies are cautious about going on record early, and the committee will use worksheets and updated fiscal reports to track estimates. The presentation emphasized that the fiscal year 2025 budget status is a point-in-time snapshot and remains fluid because the annual comprehensive financial report has been delayed, which could change the beginning balances for both the general fund and education trust fund. The budget update highlighted that the general fund is currently stronger than originally assumed, while the education trust fund is weaker. The speaker said the general fund began FY25 with a much larger balance than expected, while the education trust fund came in lower due to higher-than-budgeted adequacy spending and weaker business tax performance. Revenue trends showed the general fund slightly ahead year to date, but the education trust fund down significantly. The committee also discussed unbudgeted appropriations, including attorney general litigation, legal settlements, abandoned property claims, adequacy true-ups, and education freedom accounts, as well as the role of lapses and off-budget items in the final balance. Members asked about the delayed liquor commission audit and whether it could affect revenue forecasts. Staff said the delay was mainly caused by the commission’s switch in point-of-sale systems and staffing losses, but did not expect major ongoing reporting issues. They also noted that liquor fund variances are more likely tied to Medicaid expansion costs than to commission operations. The governor’s office was said to be working on possible budget reductions, but no January request to the fiscal committee was expected. Commissioner Lindsay Stepp of the Department of Revenue Administration then presented an overview of state revenue sources, focusing first on the meals and rentals tax. She explained that DRA administers 14 taxes that account for most state revenue, and that meals and rentals tax growth has slowed after strong post-pandemic gains. She described factors affecting the tax, including employment, inflation, fuel and food prices, wages, and weather, and noted that online platforms like Airbnb have improved compliance by collecting and remitting tax on behalf of hosts. Members asked about short-term rental compliance and how DRA identifies unlicensed rentals; Stepp said referrals, anonymous tips, and platform data help enforcement.

Transcript Highlights:

• </c><00:22:03.200><c> and</c><00:22:03.520><c> but</c><00:22:03.840><c> tariffs</c><00:22:04.320><c>
• were</c><00:22:04.559><c> also</c> surge u began. and but tariffs were also surge u began. and but tariffs
• Uh we could do rebates<00:52:42.400><c> for</c><00:52:42.559><c> the</c><00:52:42.720><c> tariff</c><
• 00:52:43.119><c> damage</c><00:52:43.440><c> that</c><00:52:43.680><c> have</c> rebates for the tariff
• damage that have rebates for the tariff damage that have impacted<00:52:44.240><c> families</c><00:52

Bills: HF3611 , HF3659 , HF3909

Committee: Senate Taxes

Keywords: taxation, income tax, damage awards, sexual harassment, abuse claims, immigration enforcement, taxpayers, file income tax return, Minnesota-source income, tax regulations, detention facilities, gross revenues, private prisons, Minnesota law

Transcript Highlights:

• I didn't even talk about the tariffs that he slaps on our allies at a whim.
• I didn't even talk about the tariffs that he slaps on our allies at a whim.
• </c> that are caused by erratic Trump tariff that are caused by erratic Trump tariff taxes<02:13:42.320
• 26:20.800><c> the</c> Trump tariffs actively hurting the Trump tariffs actively hurting the American<
• </c><02:40:45.120><c> Instead,</c> tariffs and an illegal war. Instead, tariffs and an illegal war.

Bills: HCR89 , HB1722 , HB7283 , HB8205 , HB7008 , HB8800

Keywords: Iran, war powers, War Powers Resolution, hostilities, military force, Congressional authorization, declaration of war, AUMF, foreign policy, national security, self-defense, U.S. Armed Forces, Middle East, executive war powers, troop withdrawal, intelligence sharing, counterintelligence, diplomatic facilities, regional security, anti-war resolution

Transcript Highlights:

• </c><00:43:00.359><c> that</c><00:43:00.480><c> are</c> to say it do the new tariffs that are to say
• </c><00:43:19.880><c> uh</c><00:43:20.040><c> coming</c><00:43:20.359><c> in</c> anticipating tariffs
• uh coming in anticipating tariffs uh coming in although<00:43:21.559><c> I</c><00:43:21.760><c> I</c
• with and we we're experiencing tariffs with and we don't<00:43:45.800><c> have</c><00:43:45.920><c>
• </c><00:44:15.520><c> protection</c><00:44:15.920><c> too</c><00:44:16.359><c> but</c> there's tariff

Summary: The Department of Administrative Services presented its capital budget process and priorities, explaining that it maintains and operates 96 state buildings and uses annual facility walkthroughs, condition assessments, and rough cost estimates to rank projects for the governor’s capital budget. Officials described how requests are triaged, how the governor’s office and Public Works refine estimates, and how the resulting capital budget book serves as legislative intent for approved projects. They also noted that this year the governor’s office asked for estimates on all selected projects, which increased workload but reduced detail. The department highlighted several requested projects, including $1.5 million for the ERP system sustainability fund, which officials said is critical because the state is upgrading its core financial, HR, and budget system to the cloud. Other priorities included courthouse HVAC and boiler work, brick repointing at the State House annex/main building, window replacement at the Spalding building, and elevator replacement on the hospital campus. Officials also said the governor’s proposed capital budget included fewer DAS projects than in past years and asked the committee to consider funding closer to historic levels. The committee then reviewed lapse and reallocation items. DAS said most older projects are still in design, bid, or construction because projects now take four to six years rather than two to three, in part due to ARPA-related workload and post-COVID construction backlogs. Members discussed lapsing $81,000 from the completed Spalding roof project and redirecting small remaining balances from several 2019 projects toward the Hillsboro County South cell block project through the Capital Project Overview Committee. Officials also confirmed ARPA-funded projects are expected to be completed before the December 2026 deadline and explained that the ERP system is the main state IT exception outside DOIT’s usual centralized control, though it still requires DOIT consultation and approval.

Transcript Highlights:

• That's arguably a federal jurisdictional activity and would fall under the tariffs that FERC oversees
• Because you're talking tariffs on steel and on much of the products that you use to build transmission
• And tariffs play into that.
• And tariffs play into that.
• Here are some of the best practices that we're seeing in terms of tariffs and what state commissions

Committee: Joint Artificial Intelligence and Data Center Committee

Transcript Highlights:

• </c><00:27:06.800><c> and</c><00:27:06.960><c> rising</c> cost increases due to tariffs and rising cost
• increases due to tariffs and rising fuel<00:27:07.480><c> costs,</c><00:27:08.000><c> often</c><00:27
• It's not because of tariffs that are driving up the cost of everything.
• Don't look at the tariffs. Don't look at the war.
• Don't look at the tariffs. leaders. Don't look at the tariffs.

Committee: House Ways and Means

Transcript Highlights:

• First, the bill requires electric utilities to develop ELUF tariffs or policies, which set the rates,
• All tariffs and policies must... ...for providing electricity service to an ELUF.
• All tariffs and policies must be designed to avoid risks of increased cost to utility customers as a
• The bill creates an electricity tariff for data centers only.
• The bill creates an electricity tariff for data centers only.

Bills: HB2104 , HB1903 , HB1909 , HB1982 , HB2034 , HB2105 , HB2210 , HB2215 , HB2271 , HB2345 , HB2355 , HB2384 , HB2389 , HB2397 , HB2418 , HB2429 , HB2442 , HB2479 , HB2481 , HB2681 , HB2688 , HB2714

Committee: House Appropriations

Keywords: aviation, wildland fires, funding, disaster relief, emergency response, energy assistance, low-income, utility costs, state program, energy affordability, court unification, task force, Washington courts, judicial administration, court reform, access to justice, local court rules, uniformity, centralization, rural courts

Transcript Highlights:

• approved by the Public Utilities Commission for public utilities, or the safety standards, tariffs,
• approved by the Public Utilities Commission for public utilities, or the safety standards, tariffs,
• /c><01:03:55.119><c> or</c> not affect the safety standards or not affect the safety standards or tariffs
• approved by the public utilities tariffs approved by the public utilities commission<01:03:57.920><c
• rates and fees safety standards tariffs rates and fees of<01:04:06.160><c> the</c><01:04:06.640><c>

Bills: HB1719 , HB1742 , HB1737 , HB2049 , HB1725 , HB1726 , HB1738 , HB1799 , HB1700

Committee: House Housing

Summary: The joint public hearing covered several housing-related bills and one building-code measure. HB 1719 would make manufactured homes a permitted use by right on residentially zoned lots in the urban district, HB 1742 would authorize self-contained relocatable housing units with restrictions, and HB 1737 would clarify that a farm dwelling in an agricultural district may include an accessory employee housing structure. Testimony on these bills was overwhelmingly supportive from groups including Hawaii Realtors, Grassroot Institute of Hawaii, Housing Hawaii’s Future, the Modular Building Institute, the Hawaii Farmers Union, and others, with a few agencies offering comments. No one testified in opposition on HB 1719 or HB 1742, while HB 1737 drew one opposition and one comment in addition to broad support. No votes were taken during the hearing segment provided. A major portion of the hearing focused on HB 2049, which restructures the conveyance tax into a marginal-rate system and changes how the revenue is allocated, including funding for the Department of Hawaiian Home Lands and the rental housing revolving fund, while also affecting the legacy land conservation fund. Supporters, including DHHL, Hawaii Appleseed, Aahu Youth Action Board, Hawaii YIMBY, and others, argued the bill would help Native Hawaiian housing and, for most transactions, function as a tax cut. Opponents, including NAP Hawaii, Hawaii Realtors, Hawaii Land Trust, Mhai Land Trust, and the Tax Foundation of Hawaii, objected to using conveyance tax as a revenue-generating tool and raised concerns about higher upfront costs and reduced funding for other housing uses. Committee members and staff discussed the bill’s revenue estimates, the reduced percentage but higher cap for the land conservation fund, the effect on rental housing funding, and the bill’s cost-of-living adjustment language; staff said a line-by-line comparison of the current and proposed tax structure would be provided before decision-making. The hearing also took up HB 1725, which would extend the state building code adoption cycle from two years to six years, apply the IRC to triplexes and fourplexes, allow counties to adopt more or less stringent amendments, and appropriate funds for code adoption work. Most testimony supported the bill, with advocates saying the current process is unmanageable, too resource-intensive, and creates confusion because state and county codes can diverge; supporters said a longer cycle would improve clarity and allow more focused review. The International Code Council and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers opposed the measure, warning that delaying adoption could have negative consequences and urging the committee to let an existing statewide code-adoption strategy proceed first. Members asked about sequencing, county implementation, and whether the longer cycle would create catch-up problems, but no action was taken in the excerpt provided.

Transcript Highlights:

• doing, it brings the tariff from 100 MW to 25 MW.
• The tariff in here is something we did last year.
• a new tariff for specific solar<03:25:38.480><c> market</c><03:25:38.880><c> segments.
• School buses is because of the tariffs and the supply constraints, uh, on what's happening.
• I'm not sure if the suggested tariffs were in place at that time.

Transcript Highlights:

• , which I didn't talk grants, tariffs, which I didn't talk about,<00:36:45.599><c> but</c><00:36:45.920
• </c><01:23:36.159><c> Woff</c> tariffs, [clears throat] as uh Dr.
• Woff tariffs, [clears throat] as uh Dr.
• We have a docket ongoing for Xcel Energy to define this very large customer class and the tariffs that
• that goes along and the and the tariffs that goes along with<01:24:27.440><c> it.

Committee: House Energy Finance and Policy

Transcript Highlights:

• We've got the problem with the tariffs on Canadian lumber and so on.
• We've got the problem with the tariffs on Canadian lumber and so on.

Committee: Joint Joint Committee on Community Development and Small Businesses

Summary: The Joint Committee on Community Development and Small Businesses held a brief hearing on several housing and planning bills. Testimony focused on Senate Bill 176 and House Bill 313, which would update Chapter 40R smart growth zoning incentives and double municipal payments for adopting qualifying zoning districts, and Senate Bill 177, a technical correction to Chapter 40S so starter-home districts created under Chapter 40Y would also qualify for school cost reimbursement. Benjamin Fierro, representing the Home Builders and Remodelers Association of Massachusetts, strongly supported the bills, arguing that the current incentives are too modest, that starter homes are needed for young and first-time buyers, and that the school reimbursement fix is necessary to align the statutes. Nally Soto of the Massachusetts Housing Coalition also supported the bills, saying the higher incentives would help municipalities approve more housing and address the housing shortage. Representative Kassner testified on House Bill 303, a remote community development planning bill modeled on Executive Order 418. She said it would restore and expand statewide comprehensive planning for land use, transportation, housing, open space, infrastructure, and climate resilience, with regional planning agencies playing a key role. Committee members asked about how Chapter 40S reimbursement is calculated and how the planning bill would interact with existing regional planning commissions. One member also spoke in support of the housing bills and described local challenges with affordability, land costs, and compliance with the MBTA Communities law. No votes were taken during the hearing. The chair closed testimony after a final call for additional witnesses and announced that the committee would continue working on the bills and hold one more hearing in September on additional measures and late-filed bills. The committee then adjourned by motion and second.