Transcript Highlights:

• It was also made possible with tax credits and would not have been done without tax credits.
• A million-dollar allocation of tax credits is a million dollars of state tax credits per year for a 10
• At the core, LIHTC creates a secondary market to monetize tax credits. Credits are...
• credits are At the core, LITECH creates a secondary market to monetize tax credits.
• How do you account for non-educated related expenses versus educated?

Committee: House House Appropriations Committee of Reference

Summary: The committee first heard HB 2584, which would prohibit public monies from being used for genetic sequencing procedures involving devices made by companies owned or substantially controlled by entities domiciled in a foreign adversary. The sponsor said the bill is intended to protect genetic data from being sold or used against the United States. There was no public testimony, and the committee approved the bill on a 13-5 vote for a do pass recommendation. The committee then took up HB 2804, which creates a rural development and housing tax credit capped at $2 million per year and tied to federal low-income housing tax credit projects in counties under 800,000 population. Supporters, including the sponsor, the Flagstaff mayor, and housing investors/developers, argued it would leverage private capital to address rural affordable housing shortages, especially for seniors, veterans, and low-income residents. Opponents, including the Arizona Free Enterprise Club, argued state LIHTC programs are inefficient, costly, hard to oversee, and can add complexity and higher per-unit costs. The bill passed 13-4 with one not voting. HB 2388, as amended, appropriates $100,000 for the Arizona Commerce Authority to study the economic benefits of small modular reactors and data centers, with a report due June 30, 2027. Supporters said the study would help Arizona plan for energy demand and data center growth, while opponents argued the agency should use existing funds instead of a new appropriation. The committee adopted the amendment and then approved the bill 10-7 with one not voting. The committee also received a presentation from the Auditor General on county treasurer procedural reviews, including the response to the Santa Cruz County treasurer embezzlement case and the office’s ramp-up plan for reviews and staffing. Later, the committee approved HB 2352, which appropriates $2,385,900 in FY2029 to make the Auditor General’s county treasurer review funding ongoing. Members supporting the bill said the office needs certainty to plan audits and retain staff, while opponents objected to funding it so far in advance during budget uncertainty. The bill passed 11-7. The committee also approved HB 2418, as amended, which directs $600,000 to be evenly distributed among five county sheriff task forces in Cochise, Coconino, Navajo, Pinal, and Yuma counties; supporters said it codifies the long-standing distribution practice, and it passed 17-1. Finally, the committee heard HB 2499, which would provide $2.6 million and 12 FTEs to the Department of Education for ESA administration; supporters argued the program’s rapid growth requires more staff for enrollment, reviews, and accountability, while members questioned the lack of standardized testing data and how to measure student outcomes. The transcript ends during that discussion, before a final vote on HB 2499.

Transcript Highlights:

• and institutions working to expand the state earned income tax credit and child and family tax credit
• We don't give 100% of the credit. We get 40% of the credit. Maybe we should give a little more.
• We don't give 100% of the credit. We get 40% of the credit. Maybe we should give a little more.
• This is 50% of PA education.
• credits could be created.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a public hearing focused largely on tax-credit proposals tied to children, families, caregivers, child care, health care workforce development, and public health. A major portion of the hearing concerned bills to expand the state earned income tax credit and child and family tax credit, including H. 3073/S. 1957 and S. 1975. Testimony from advocacy groups, legal services, tax assistance organizations, and health providers supported increasing the EITC match from 40% to 50% of the federal credit, expanding eligibility to immigrant and mixed-status ITIN filers, larger families, younger and older workers, and SSI recipients, and raising the child and family tax credit to $600 per child with inflation adjustments and possible advance payments. Witnesses said these changes would reduce poverty, improve health and educational outcomes, and help families meet basic expenses; committee members asked questions about ITIN filers and expressed support for the policy goals. The committee also heard extensive testimony on S. 1938/H. 3159, An Act Supporting Family Caregivers. Speakers described the scale of unpaid caregiving in Massachusetts and supported a package that would create a refundable tax credit, respite vouchers, workplace and housing protections, unemployment insurance access for those who leave work to care for relatives, a permanent advisory council, and a provision allowing spouses to be paid caregivers under MassHealth. Several witnesses shared personal caregiving experiences, and committee members responded favorably, noting the emotional and financial strain on caregivers and the importance of supporting them as Medicaid and long-term care systems face pressure. Additional bills discussed included H. 3174 on a child and dependent care tax credit, which was presented as a way to offset the high cost of child care; H. 3197/S. 2019 to improve the financial security of family child care providers through a tax credit; H. 3218/S. 1960 to create tax credits for health care preceptors to address workforce shortages; S. 2064 to establish a living organ donor tax credit; S. 2034 to promote healthy alternatives to sugary drinks through a tiered tax; H. 3015 to create a tax-return checkoff for the YMCA Youth and Government Program; and several public testimony ideas including vaccination, literacy, and grade-improvement tax credits. No votes or formal committee actions were taken during the hearing, which ended after all testimony was heard.

Transcript Highlights:

• We offer one-on-one credit building and budgeting to get mortgage-ready homebuyer education, offered
• We offer one-on-one credit building and budgeting to get mortgage-ready homebuyer education, offered
• We offer one-on-one credit building and budgeting to get mortgage-ready homebuyer education, offered
• We offer one-on-one credit building and budgeting to get mortgage-ready homebuyer education, offered
• We offer one-on-one credit building and budgeting to get mortgage-ready homebuyer education, offered

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• It's for the dual credits.
• I mean, higher education.
• Could you educate?
• Needed to persist in higher education dual credit programs require a formal agreement between the college
• Technical education, course enrollment for dual credit has doubled because of their ability to take the

Committee: House Higher Education

Transcript Highlights:

• </c> alongside us for all the dual credit alongside us for all the dual credit education<00:20:18.080
• </c><00:20:26.080><c> work</c> education dual credit work course work education dual credit work course
• per</c> education dual credit courses per education dual credit courses per academic<00:26:40.559><c>
• </c> academic year and two general education academic year and two general education credit<00:26:42.960
• c> through</c> education dual credit coursework through education dual credit coursework through that

Committee: Senate Education

Transcript Highlights:

• provide education.
• So, with credit for prior learning, credit for prior learning gives students a jumpstart.
• By bridging the divide between industry skills and college credit, credit for prior learning directly
• To better advise our students as to the educational programming and educational pathways, we also know
• Dawn Kapke on behalf of the California Council for Adult Education and California Adult Education Administrators

Transcript Highlights:

• This is a one-year credit.
• This increases the amount of the municipal credit to 2,600 and the municipal credit to 2,600 and the
• education property tax credit to $6,000, helping those property owners that are struggling to pay their
• Their estimated FY27 education spending, Their estimated FY27 education spending—some of these budgets
• hole in the education fund by moving some of the meals and rooms tax into the education fund.

Transcript Highlights:

• They apply for that credit. If they get that credit, those dollars go to the school.
• They apply for that credit. If they get that credit, those dollars go to the school.
• There are refundable tax credits and non-refundable tax credits. This is a refundable tax credit.
• This is a refundable tax credit.
• done refundable tax credits work.

Bills: HB1675 , HB3242 , HB1739 , HB3320 , HB3047 , HB4434 , HJR1089 , HB4432 , HB3718 , HB3705

Committee: Senate Rules

Summary: The Rules Committee met to consider a long slate of executive nominations and several bills. All of the nominations received broad support and were advanced to the floor, including Lori Burns to the Redlands Community College Board of Regents, Lisa Daly to the Oklahoma State Credit Union, Juana Ellison to the Forensic Review Board, Haley Frick to the Regional University System of Oklahoma, Michael Hillary to the Wildlife Conservation Commission, Dustin Hillary to the University of Oklahoma Board of Regents, John Holt to the Used Motor Vehicle Dismantler and Manufactured Housing Commission, Brian Sweeney to the Capital Medical Center Improvement and Zoning Commission, and Cale Walker to the USAO Board of Regents. Most nominations passed unanimously; Brian Sweeney’s nomination passed 15-2. The committee then heard and passed several policy bills. HB 1675 created a severe-weather preparedness framework for youth camps and passed 16-1. HB 3242, the Women’s Safety and Protection Act covering shelters, schools, and higher education, passed 15-2 after questions about enforcement and legal remedies. HB 1739 increased state police pension benefits and employer contributions to help retain officers, passing 16-1. HB 3320 overhauled the sunset review process for boards and commissions and passed 15-2. HB 3047 designated LOFT as the central recipient for legislative reports and passed unanimously, and HB 4434 required the governor or acting governor to notify the next successor before leaving the state, also passing unanimously. The committee also advanced HB 4432, which would restore the ability to deduct gambling losses against gambling winnings for state income tax purposes; supporters said it would help ordinary taxpayers, while opponents raised fiscal concerns, and it passed 16-1. HB 3705 raised the parental choice tax credit cap from $250 million to $275 million and passed 13-3 after extended debate over school choice, public funding, and reporting. HB 3718 set timelines for school districts to process evaluations tied to the Lindsay Nicole Henry Scholarship program and passed 12-2, with critics arguing it could create a separate track and strain school psychology resources. HJR 1089, which would have sent voters a constitutional convention referendum, was laid over and not voted on. The meeting ended with adjournment after the final vote.

Transcript Highlights:

• a half credits of physical education are included in the 24 credits required to graduate.
• count as that credit.
• Physical education is the core part of a student's basic education.
• It takes the education out of physical education.
• and 32 credits.

Bills: SB5952 , SB5961 , SB5969 , SB5841 , SB5943

Committee: Senate Early Learning & K-12 Education

Keywords: physical education, school districts, student requirements, education policy, high school, early literacy, childhood literacy, book distribution, Imagination Library, Dolly Parton Imagination Library, preschool, pre-K, reading readiness, school readiness, birth to age five, young children, nonprofit contract, OSPI, Office of Superintendent of Public Instruction, DCYF

Transcript Highlights:

• We have things like the child credit. We do have my favorite, the Earned Income Tax Credit.
• What this bill addresses is a tax credit that directly impacts the funding of education, which are children
• What this bill addresses is a tax credit that directly impacts the funding of education, which are children
• dollars going to education.
• This bill, this tax credit, cost-of-living tax credit, was modeled after the middle-class tax credit

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue-related bills. SB 1277, by Senator Grove, proposed a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide direct relief to low- and middle-income Californians facing high housing, fuel, and utility costs. Supporters argued it would help families struggling with affordability, while opponents, including the California Tax Reform Association and CTA members, said California’s tax system already provides relief and that the bill would reduce General Fund revenue and harm schools. After extended debate, the bill was put on call and later failed on a 1-4 vote, though reconsideration was granted. SB 1287, by Senator Retado, would create a performance-based tax credit for short-line rail investments; supporters said it would improve freight efficiency, safety, emissions, and rural access, while opponents preferred direct grants. The bill was placed on call and later passed 5-0 to Transportation. SB 1407, by Senator Archuleta, would exempt military retirement pay and survivor benefits from state taxes; the author, State Treasurer Fiona Ma, and veterans’ groups said it would help retain veterans and their economic contributions in California, while CTA and CTRA opposed on General Fund grounds. The bill passed 5-0 to Military and Veterans Affairs. SB 1349, by Senator Gonzalez, would direct the LAO to review major tax expenditures for effectiveness and impacts on schools and the budget; CTA and CTRA supported it as a way to increase accountability, and it passed 4-1 to Governmental Organization. SB 1120, by Senator McNerney, would extend the California Competes Tax Credit through 2035 and make credits refundable for certain strategic industries; business and industry witnesses said this would help startups and manufacturers monetize credits and attract investment, and it passed 5-0 to Appropriations. SB 1275, also by Senator McNerney, proposed converting the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden; the LAO provided technical testimony, and the bill passed 4-0 to Transportation. The committee also heard SB 1078, by Senator Laird, to let Santa Cruz County voters consider a temporary local tax increase for health and safety-net services, but it was put on call. Later, the committee returned to SB 1314, by Senator Min, addressing youth tobacco and illicit smoke shop sales, but the transcript cuts off before final action on that bill.

Transcript Highlights:

• We have things like the child credit. We do have my favorite, the Earned Income Tax Credit.
• I'm an educator myself, and I will tell you right now, educators are the most underpaid, undervalued,
• What this bill addresses is a tax credit that directly impacts the funding of education, which are children
• This bill was this tax credit, cost-of-living tax credit, was modeled after the middle-class tax credit
• These credits are not refundable.

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

Transcript Highlights:

• She's been very active in education for a long time.
• I've been CEO of my credit union for six years.
• wish to see changes in public education.
• The line of questioning: there are refundable tax credits and nonrefundable tax credits.
• earned income tax credit.

Bills: HB1675 , HB3242 , HB1739 , HB3320 , HB3047 , HB4434 , HJR1089 , HB4432 , HB3718 , HB3705

Committee: Senate Rules

Keywords: emergency management, severe weather, youth camp, summer camp, overnight camp, day camp, outdoor education, adventure camp, wilderness program, campground safety, tornado preparedness, flooding, flash flood, high winds, hail, lightning, extreme heat, extreme cold, wildfire smoke, evacuation plan

Transcript Highlights:

• So that would be $41.67 per credit hour compared to now being $65 per credit hour with A to A.
• Workforce is all education.
• credit courses to get to those 12 hours, their pathway was then the concurrent credit pathway.
• And then the school would get credit. The student would get credit. Everybody's good to go.
• education.

Summary: The committee approved the November 3 minutes and then received an extensive presentation from Arkansas education and workforce officials on how the LEARNS and ACCESS Acts are affecting career and technical education, concurrent enrollment, and postsecondary readiness. Officials said the state’s goal is for students to leave high school employed, enrolled, or enlisted, and reported increases in K-12 CTE enrollment from about 161,000 to 171,000 students and concurrent CTE enrollment from about 12,000 to 16,000. They also described the new success-ready pathways, merit and distinction designations, and how those measures tie into school accountability and graduation outcomes. The discussion then turned to scholarships and grants. Officials explained that ACCESS expanded concurrent credit support, increased funding per credit hour, and broadened eligibility for the Arkansas Academic Challenge and Governor’s Scholar programs by adding diploma-of-merit and diploma-of-distinction pathways. They said the Governor’s Distinguished Scholarship itself did not change, but the non-distinguished Governor’s Scholar award now includes diploma of distinction as an additional eligibility route. Members raised concerns about how these requirements apply to private school and homeschool students, and officials said the intent is to ensure those students can qualify if they meet the same standards, though some implementation details are still being worked out. Questions also focused on whether students who explore multiple pathways could be penalized in school letter grades; officials said the system allows multiple ways to earn credit, including AP, IB, concurrent credit, technical certificates, and apprenticeships. Officials also reviewed workforce scholarships and short-term training funding. They said the state is developing policy for the Workforce Challenge and related professional skills training to set an 80-hour minimum and tiered funding, and they discussed the new federal Workforce Pell rules, which they said are very narrow and will likely apply to only a small number of Arkansas programs unless providers repackage training into stackable, credit-bearing pathways. Members asked for lists of eliminated programs, apprenticeships, and data on scholarship recipients, and staff said they could provide those. The committee also heard from Cody Waites on a $35.8 million U.S. Department of Labor cooperative agreement for the American Manufacturing Apprenticeship Incentive Fund, which Arkansas will administer nationally. He said the grant will support advanced manufacturing apprenticeships, use a pay-for-performance model, and be distributed to sponsors after apprentices are employed for 90 days, with applications opening January 28 and the state expecting to keep administrative costs under 8-9%.

Transcript Highlights:

• So about 4,000 more students are earning concurrent credit for career and technical education courses
• Workforce is all education.
• Workforce is all education.
• , and we said most of the concurrent credit courses— More post-secondary credits.
• education.

Summary: The committee first approved the November 3 minutes, then received an extensive update from Arkansas Division of Higher Education and Division of Career and Technical Education officials on LEARNS and ACCESS implementation. Witnesses said the state’s goal is for students to graduate employed, enrolled, or enlisted, and described expanded career pathways, student success plans, merit and distinction diplomas, and school accountability measures tied to pathway completion and tangible credentials. They reported increases in K-12 CTE enrollment and concurrent enrollment, and explained that some secondary career center programs were reduced or eliminated because they no longer aligned with state workforce demand. Members asked detailed questions about how merit/distinction affects school letter grades, how AP, concurrent credit, CTE completers, apprenticeships, and work-based learning fit into the system, and whether homeschool and private school students can access the same opportunities. Officials said multiple pathways can satisfy the requirements, including AP Scholar, concurrent credit, technical certificates, and apprenticeships, and that counselors are being trained to advise students. They also discussed scholarship changes: ACCESS broadened eligibility for the Arkansas Academic Challenge and Governor’s Scholar awards, with diploma of merit or distinction now qualifying students for additional aid, while the Governor’s Distinguished Scholarship itself remained unchanged. Questions were raised about whether homeschool and private school students can meet the new diploma-of-distinction criteria; officials said the intent is to make them eligible if they meet the same standards, and that guidance is being finalized. The discussion also covered workforce scholarships and grants. Officials said the Workforce Challenge was expanded to include vocational-technical schools and increased funding, and that the Division is reworking policy around “professional skills training” to support shorter-term, stackable programs. They reviewed the new federal Workforce Pell Grant, noting its narrow hour and duration limits and the need for programs to meet completion, placement, and earnings thresholds. Members also asked about the state lottery scholarship fund balance and whether more aid should be directed to students; officials said the fund remains healthy and that ACCESS has already increased awards and expanded eligibility, with more implementation data still to come. The final presentation came from the Director of Workforce Connections on a $35.8 million U.S. Department of Labor cooperative agreement for the American Manufacturing Apprenticeship Incentive Fund. Arkansas will administer the national fund, which is aimed at expanding advanced manufacturing registered apprenticeships across the country through a pay-for-performance model. Officials said the program will support occupations in aerospace, automotive, biotech, maritime, nuclear, semiconductors, supply chain, and automation, and that applications will open soon. Members asked who can apply and how the money will be distributed; the answer was that registered apprenticeship sponsors—sometimes companies, sometimes colleges, sometimes intermediaries—will apply, with Arkansas setting eligibility criteria, vendor requirements, and outreach efforts.

Transcript Highlights:

• </c> that to transfer we'll take your credits that to transfer we'll take your credits uh<00:08:04.840
• </c> that the rigor at say a dual credit that the rigor at say a dual credit course<00:09:01.480><c>
• to make sure that those dual credit course offerings are in those core general education programs, obviously
• make sure that those dual credit course offerings are in those core general education programs, obviously
• make sure that those dual credit course offerings are in those core general education programs, obviously

Summary: The committee first heard House Bill 305, which would clarify and expand a healthcare workforce bill to explicitly include physician assistants and dietitians in efforts to address shortages, especially in rural areas. Rep. Fleming said the change was intended to help with Medicaid-related needs such as diabetes care and noted a decline in dietitian internship applications. Rep. Roarx supported the bill, emphasizing the value of dietitians in helping patients make practical nutrition changes. The bill received a unanimous favorable expression, 14-0, and was reported to the House floor. The committee then considered House Bill 427, which would create statewide 60-credit-hour transfer pathways for high-demand bachelor’s degree programs under the Council on Postsecondary Education. Rep. Grossl explained the bill is meant to prevent students from losing major credit when transferring between KCTCS and four-year institutions, using nursing as an example. Questions focused on rigor, dual credit, how high-demand programs would be selected, and the July 1, 2026 implementation date; the sponsor said CPE and faculty would map curricula and align standards. The Kentucky Student Rights Coalition testified in support, saying the bill would help students complete degrees faster and make credits count toward majors. HB 427 also passed unanimously, 14-0, with favorable expression. The committee then took up House Bill 424, as amended by a committee substitute. Rep. Tipton said the substitute removed language allowing up to six-year contracts and instead set up a process for four-year contracts and periodic performance reviews for faculty, including presidents, at public postsecondary institutions. He said the bill is intended to give universities clearer authority to remove underperforming employees and be more efficient with taxpayer dollars. Several faculty witnesses opposed the bill, arguing it would erode tenure protections, create arbitrary performance standards, and harm recruitment, retention, and academic freedom. The committee adopted the substitute and heard testimony, but no final vote on HB 424 is shown in the transcript excerpt.

Transcript Highlights:

• an education...
• And they'll also take credits of their education four-year degree here with us, and they'll also take
• Credits earned—look at that number. 2,300 credits to well, almost 9,000 credits last year were earned
• Credits earned—look at that number. 2,300 credits to well, almost 9,000 credits last year were earned
• But no, for education reduced credit, it's only to drop it to 111.

Summary: The committee first reviewed the 2024-25 tuition waiver report for the North Dakota University System. Staff explained that waivers were reported for degree-seeking students and broken out by residency, institution, and waiver type. Members asked about partial versus full waivers, institutional discretion, athletic waivers, and whether campuses have published guardrails or transparency requirements. Staff said most waivers are set by institutions, with some statutory and board-required categories, and that athletic waivers are a small share of total waiver dollars. The report showed total gross tuition of $354.5 million, tuition waived of $38.9 million, and 11,193 of 42,040 students receiving some waiver. Members also discussed how waivers affect net tuition revenue, housing and food collections, and whether campuses are using waivers strategically compared with scholarships and other funding sources. The committee then heard a presentation on tuition rates by campus and State Board policy. Staff explained the board’s tuition factors for resident, Minnesota reciprocity, contiguous-state/U.S. nonresident, and international students, and noted that campuses often seek exceptions based on program-specific competition and enrollment goals. Members asked whether rates are based on cost or competition, and staff said campuses typically bring forward estimates and market comparisons when requesting special rates. The presentation also reviewed general fund appropriations versus net tuition revenue by campus, and members discussed how local tuition decisions and waivers do not directly affect the state funding formula, though they do affect institutional revenue and reserves. Questions were also raised about the Higher Learning Commission’s financial composite indicator and how it differs from the more intuitive reserve and revenue figures. The committee next received a broad overview of non-higher-education entities affiliated with the State Board of Higher Education, beginning with NDSU agriculture-related units. Dr. Greg Lardy described the State Board of Agricultural Research and Education, the NDSU Extension Service, the Agricultural Experiment Station, and the branch research centers, emphasizing their statewide role in crop and livestock research, extension education, and county-based outreach. He outlined funding mixes for extension, the experiment station, and branch stations, noting that grants and contracts support both research and education, while the agronomy seed farm is self-funded through seed sales. Members asked about the new and vacant FTE pool, R1 research status, matching requirements for grants, and whether state appropriations count toward research expenditures. Dr. Lardy also highlighted major research impacts, including crop varieties, virtual fencing, AI-assisted weed control, and NDAWN weather data. The Northern Crops Institute and the Upper Great Plains Transportation Institute also presented. NCI described its role in market development, technical services, and education for regional agriculture, its governance through the Northern Crops Council, and its funding from state appropriations, other states, and earned revenue. Members asked about the source of out-of-state funding, intellectual property, and the institute’s international reach. UGPTI then outlined its transportation research, federal and state funding structure, and work on road and bridge condition assessments, travel demand modeling, and workforce training. No votes were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• We have things like the child credit. We do have my favorite, the Earned Income Tax Credit.
• What this bill addresses is a tax credit that directly impacts the funding of education, which are children
• This bill was this tax credit, cost of living tax credit, was modeled after the middle-class tax credit
• their awarded credit.
• These credits are not refundable.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue measures. SB 1277, by Senator Grove, proposed a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide direct relief to low- and middle-income Californians facing high housing, gas, energy, and general living costs. Supporters said it would help working families, farmworkers, teachers, and others; opponents, including the California Tax Reform Association and the California Teachers Association, argued California already has a progressive tax system, that refundable credits are costly and can be difficult to administer, and that the bill would reduce General Fund revenues and Proposition 98 funding. The bill was held on call after extensive debate and no motion was made at that time. The committee then heard SB 1287, which would create a targeted tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the credit would support safety, bridge and track upgrades, emissions reductions, freight efficiency, and rural and agricultural supply chains, while opponents argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call after a motion to move it forward. SB 1407 would exempt military retirement pay and surviving spouse benefits from state income tax, with the author, State Treasurer Fiona Ma, and veterans’ groups arguing it would help retain veterans in California, support second careers, and keep federal retirement dollars in the state. The California Teachers Association and California Tax Reform Association opposed it as another tax expenditure that would reduce General Fund revenue. The committee approved the bill on a due pass as amended vote to the Senate Committee on Military and Veterans Affairs, with several members voting aye and others not voting, and the bill was placed on call. The committee also heard SB 1349, which directs the Legislative Analyst’s Office to review major tax expenditures and evaluate their costs, beneficiaries, and effectiveness. Supporters, including CTA, AFSCME, cities, counties, and many teachers, said the state needs more accountability for roughly $94 billion in annual tax expenditures and their impact on schools and the budget. The bill was moved with committee amendments and placed on call. Additional measures discussed included SB 1078, authorizing Santa Cruz County to seek voter approval for a temporary local sales tax increase to fund health care and safety-net services; SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries; and SB 1275, which would convert the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden. SB 1120 and SB 1275 both received support from business and industry witnesses, with no opposition testimony noted, and were moved on call or with a due pass as amended vote as the committee continued through the file.

Transcript Highlights:

• She had accumulated 59 credits of developmental education classes and did not understand why she was
• education.
• </c> credit diploma. credit diploma.
• </c> level credit. level credit.
• higher education are actually going<00:21:19.039><c> toward</c><00:21:19.280><c> credits</c><00:21:19.600

Committee: Senate Higher Education

Transcript Highlights:

• Committee on Education to order.
• So was our work ready dual credit and our career and technical education, um, and moved that over into
• . education. education.
• Uh, with the dual credit, that is if it's the pipeline and you're trying to get a student through education
• </c> portion of their education. portion of their education.

Summary: The committee met to review KHEAA’s student aid programs ahead of the upcoming biennial budget. KHEAA officials outlined the agency’s role administering state grants and scholarships, emphasizing that net lottery proceeds are statutorily dedicated to student financial aid after a literacy appropriation. They focused on the College Access Program (CAP), Kentucky Tuition Grant (KTG), and KEES, and explained that the FAFSA simplification changes significantly expanded eligibility for Pell and CAP recipients. KHEAA said the General Assembly’s additional funding this biennium allowed CAP to be fully funded, and that FY25 spending for CAP reached about $232 million for roughly 72,000 students, up from about 55,000 recipients the prior year. Officials said they are watching current-year application trends closely and expect a clearer funding picture by late fall as awards are actually disbursed and enrollment data comes in. Members asked about how CAP eligibility works, the difference between applicants and recipients, and whether KTG is tied to Pell eligibility. KHEAA explained that CAP is essentially aligned with Pell eligibility, while KTG uses a different need formula and is limited to private colleges in Kentucky. They also noted that schools verify final eligibility after KHEAA’s initial review of application data. Questions about the FAFSA simplification act and federal changes led KHEAA to say they do not expect major effects on state grant and scholarship programs, though federal student loan changes may affect students, especially at the graduate level. The committee also discussed KEES, which KHEAA said has been fully funded since its creation, and dual credit/work-ready scholarships. KHEAA reported that dual credit participation continues to grow and that FY25 spending for dual credit and Work Ready Kentucky totaled about $26.4 million, compared with a $13.1 million appropriation, with transfers from Work Ready used to keep dual credit fully funded. Officials said they will seek growth funding for dual credit in the next budget because the program has expanded and now includes the work-ready component under one statute. Members asked about transferability of dual credit courses and whether students actually use the credits toward degrees; KHEAA said it does not have hard data on every credit’s transfer, but it is seeing positive trends in bachelor’s completion and more high school graduates earning associate degrees. No votes or formal actions were taken beyond approving the July 15, 2025 meeting minutes.

Transcript Highlights:

• We have things like the child credit. We do have my favorite, the Earned Income Tax Credit.
• Now, I'm an educator myself, and I will tell you right now, I'm an educator myself, and I will tell you
• What this bill addresses is a tax credit that directly impacts the funding of education, which are children
• This bill was this tax credit, cost-of-living tax credit, was modeled after the middle-class tax credit
• These credits are not refundable.

Committee: Senate Revenue and Taxation