Transcript Highlights:

• We also made an initial $100 million down payment to the Behavioral Health Trust Fund and appropriated
• Chair, Senator Padilla, the one thing I would add is, think of that payment as a down payment for FY
• I know that in past years we've had those reversions that continuously surface.
• That's kind of central to the Kevin S. settlement. central to the Kevin S. settlement.

Committee: Senate Senate Finance

Transcript Highlights:

• So the Court of Appeals reversed ASV and allowed the case to move forward.
• We know the County of Los Angeles has a gigantic settlement of childhood sexual abuse cases.
• We don't predict a slowing down of either claims filed or settlement amounts.
• We don't predict a slowing down of both claims filed or settlement amounts.
• And so we really are incentivized and do, I think, a pretty thorough job of providing early settlement

Summary: The committee held a work session on tort liability and parole, with the chair explaining that the topics were linked because criminal justice reform and state liability often intersect, especially in cases involving child welfare and corrections. Staff first outlined Washington’s tort liability framework, including the state’s broad waiver of sovereign immunity, statutes governing mandatory reporting and investigation of abuse, the childhood sexual abuse statute of limitations, and the lack of caps on non-economic damages. Staff and presenters also compared Washington to other states and noted that Washington remains among the broadest states for state liability and childhood sexual abuse claims. Presenters from the Attorney General’s office, Washington State Association for Justice, DCYF, DSHS, and DOC discussed how tort exposure has grown, especially in claims involving DCYF, historical child abuse, juvenile rehabilitation, vulnerable adults, employment discrimination, medical negligence, and negligent supervision. DCYF and AG staff said claims and payouts are rising, with many claims tied to older abuse and new theories of liability, while defense counsel emphasized the human harm behind the claims and argued that tort cases have historically driven accountability and reform. Agency witnesses said they face large volumes of old claims with limited records, rising verdicts and settlements, and staffing and systems challenges, and they highlighted efforts such as early resolution programs, electronic health records, medication-assisted treatment, and improved incident review processes. The committee then shifted to parole. Sentencing experts reviewed Washington’s move from indeterminate sentencing to the current determinate sentencing system under the Sentencing Reform Act, and explained how parole could be integrated with sentencing guidelines through different models used in other states. They also summarized Criminal Sentencing Task Force recommendations related to a determinate-plus approach for three-strikes and persistent offender laws and a second-chance review process, noting there was no consensus on those ideas. Judges from the Minority and Justice Commission and the Superior Court Judges Association said a parole system could support rehabilitation and reduce disparities if it includes data collection, fairness, transparency, due process, and meaningful judicial review; they also pointed to research suggesting parole and structured reentry can reduce recidivism and costs, while warning that access and outcomes can vary by geography and other factors.

Transcript Highlights:

• Chair, that is correct in that there's no longer any reversions going into the reform fund from prior
• Without them, the state will only be able to give one-time payments.
• Without them, the state will only be able to give one-time payments.
• This would include $1 million of that $20 million to be earmarked for down payment assistance for UNM
• A response noted that this is part of the program that MFA has for down payments and related assistance

Committee: House House Appropriations & Finance

Transcript Highlights:

• The $2.3 billion over the payment that was projected at the 2025 Budget Act.
• The state wouldn't make the payment until it knows the exact amount.
• So, speaking of volatility, the current-year settlement amount is significant...
• normally get 12 payments.
• of half a month’s payment to eliminate the deferrals moving forward.

Transcript Highlights:

• So the best way to protect premiums is for the federal government to reverse course and allow our prior
• So it's important that California be prepared to impose a 100% tax on payments that would be made from
• this anti-weaponization fund and certain related settlement funds during the tax year 2026 to 2029.
• And I will rephrase the purpose to provide improvement in provider payments because we all know that
• And I will rephrase the purpose to provide improvement in provider payments because we all know that

Summary: The Senate Budget and Fiscal Review subcommittee heard four budget trailer bills: AB 110, AB 122, AB 125, and AB 177. AB 110 was described as a budget bill junior identifying budget-related legislation. AB 122 would extend sales tax to electronically delivered or remotely accessed prewritten software, extend and later limit business tax credits, reduce the annual LLC/LLP/LP tax for first-year businesses for three years, and impose a 100% tax on certain federal anti-weaponization fund settlements. AB 125 would renew the managed care organization (MCO) tax for three years beginning in 2027 to support Medi-Cal and targeted provider rate increases. AB 177 would require the Department of Finance to return by March 1, 2027 with options for assessing large employers for the Medi-Cal costs of employees enrolled in the program, including at least one employer-paid premium option for firms with 250 or more employees, and would appropriate $1,000 General Fund for implementation. Administration witnesses said AB 122 modernizes the tax system and helps create general fund revenue, while AB 125 is needed to preserve Medi-Cal financing and targeted rate increases under new federal constraints from H.R. 1 and to avoid a budget hole if the MCO tax expires. On AB 177, Finance said the bill is only a study and does not itself impose a tax, but would direct the administration to develop options for future consideration. Supportive members argued the package is part of a balanced approach to address the structural deficit, protect health care and other safety-net programs, and ensure large corporations pay more of their share. They also said AB 177 is a necessary step toward asking large employers to help cover public health care costs for workers who rely on Medi-Cal. Opponents, led by Vice Chair Niello and several other Republicans, argued the state does not have a revenue shortage but a spending problem, warning that the proposals would raise costs on consumers and businesses, discourage innovation, and expand taxes beyond their intended scope. They criticized AB 122 as potentially taxing labor-like services and limiting research and development credits, and said AB 125 would increase premiums for commercial enrollees and employers. On AB 177, they questioned the lack of definitions and specifics, saying the bill is too vague and could eventually burden employers, including hospitals and part-time workers, without clear standards. No votes were taken in the portion of the hearing provided; the committee heard testimony and questions before public comment and later action.

Transcript Highlights:

• increase of about $2.3 billion over the payment that was projected at the 2025 Budget Act.
• So, speaking of volatility, the current-year settlement amount is significant.
• So if you think about the way to think about deferrals is to think about monthly payments.
• Districts normally get 12 payments. Essentially this year, they're only going to get 11.5.
• of half a month's payment to eliminate the deferrals moving forward.

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• </c> reverse repealer in it. And, Mr. reverse repealer in it. And, Mr.
• </c> reverse repealer in it. reverse repealer in it.
• </c> and it has a reverse repealer in it. and it has a reverse repealer in it.
• </c> takes out the reverse repealer. Okay. takes out the reverse repealer. Okay.
• This is a reverse repealer.

Transcript Highlights:

• Department of Health report be admissible to a jury, but also any complaint investigative report settlement
• and discoverable isn't normal process that when parties enter into settlements and then no admission
• Some settlements are confidential, summer confidential.
• I'm asking you to act today to reverse this injustice in vote yes for Senate Bill 734, thank you.
• No settlement, no apology. Nothing can undo the pain and the suffering of the loss.

Transcript Highlights:

• It's one of the earliest settlements in North Texas and known for its welcoming community.
• a letter agreement that says we're going to pay this on this date. settlement.
• And it's not a settlement agreement, is it?
• I don't believe that this is a reversal.
• This is not a reversal. And so will this ruling be placed in the journal, Mr. President?

Bills: SJR59 , SCR30 , SCR46 , SB31 , SB127 , SB324 , SB401 , SB407 , SB467 , SB482 , SB506 , SB529 , SB584 , SB619 , SB636 , SB646 , SB647 , SB659 , SB715 , SB732 , SB735 , SB771 , SB784 , SB800 , SB801 , SB816 , SB1013 , SB1026 , SB1049 , SB1055 , SB1065 , SB1137 , SB1169 , SB1181 , SB1383 , SB1395 , SB1410 , SB1433 , SB1524 , SB1531 , SB1568 , SB1640 , SB1666 , SB1681 , SB1718 , SB1754 , SB1757 , SB1972 , SB1980 , SB2004 , SB2007 , SB2041 , SB2046 , SB2050 , SB2075 , SB2076 , SB2154 , SB2173 , SB2206 , SB2225 , SB2253 , SB2268 , SB2306 , SB2308 , SB2314 , SB2322 , SB2330 , SB2351 , SB2366 , SB2371 , SB2392 , SB2398 , SB2476 , SB2533 , SB2540 , SB2544 , SB2589 , SB2610 , SB2623 , SB2660 , SB2662 , SB2693 , SB2707 , SB2717 , SB2722 , SB2742 , SB2753 , SB2779 , SB2807 , SB2843 , SB2844 , SB2858 , SB2877 , SB2880 , SB2885 , SB2920 , SB2938 , SB2986 , HJR4 , HCR35 , SJR3 , SJR18 , SB5 , SB260 , SB1786 , SB914 , SB963 , SB1197 , SB1415 , SB1437 , SJR36 , SJR50 , SJR63 , SJR84 , SJR59 , SCR12 , SCR39 , SCR46 , SCR48 , SCR19 , SCR30 , SCR3 , SB2023 , SB1433 , SB2322 , SB2877 , SB407 , SB1718 , SB1395 , SB62 , SB666 , SB847 , SB284 , SB854 , SB1073 , SB810 , SB1505 , SB583 , SB1502 , SB507 , SB1026 , SB1434 , SB1376 , SB1585 , SB1772 , SB2016 , SB1163 , SB619 , SB1122 , SB732 , SB731 , SB397 , SB508 , SB1436 , SB287 , SB261 , SB1882 , SB393 , SB1791 , SB529 , SB209 , SB2429 , SB1999 , SB511 , SB2309 , SB510 , SB2253 , SB584 , SB1085 , SB2314 , SB2046 , SB1975 , SB2717 , SB1262 , SB1524 , SB1137 , SB636 , SB2056 , SB884 , SB517 , SB1200 , SB1410 , SB1845 , SB1863 , SB2681 , SB2200 , SB2199 , SB1757 , SB2050 , SB2458 , SB2201 , SB1055 , SB2660 , SB2662 , SB1065 , SB801 , SB2533 , SB3014 , SB3013 , SB758 , SB647 , SB1721 , SB2268 , SB2366 , SB1013 , SB2797 , SB2371 , SB2383 , SB646 , SB1169 , SB1754 , SB2779 , SB2004 , SB2119 , SB2448 , SB1777 , SB1283 , SB2392 , SB2076 , SB2786 , SB2876 , SB2284 , SB2225 , SB1540 , SB2920 , SB2929 , SB1972 , SB2540 , SB2742 , SB2595 , SB2217 , SB715 , SB2330 , SB1383 , SB500 , SB1640 , SB2001 , SB2080 , SB2722 , SB506 , SB2514 , SB2623 , SB2753 , SB2398 , SB1241 , SB2927 , SB2173 , SB2538 , SB898 , SB467 , SB1449 , SB2529 , SB1531 , SB2846 , SB2476 , SB986 , SB1181 , SB2075 , SB2154 , SB2864 , SB31 , SB2880 , SB1359 , SB2386 , SB771 , SB2844 , SB2550 , SB1351 , SB1423 , SB1931 , SB2245 , SB2589 , SB2707 , SB2807 , SB2351 , SB410 , SB659 , SB816 , SB2776 , SB2693 , SB2580 , SB1980 , SB1886 , SB1234 , SB739 , SB482 , SB456 , SB127 , SB1666 , SB2843 , SB2801 , SB800 , SB2055 , SB784 , SB2986 , SB735 , SB1012 , SB324 , SB2926 , SB2938 , SB2007 , SB2138 , SB1242 , SB2615 , SB1049 , SB2310 , SB1224 , SB2972 , SB1568 , SB2841 , SB2885 , SB3016 , SB2858 , SB2610 , SB2139 , SB1856 , SB2035 , SB2308 , SB2306 , SB2041 , SB1528 , SB1681 , SB1141 , SB2401 , SB2530 , SB2375 , SB547 , SB1266 , SB1373 , SB1467 , SB2069 , SB2269 , SB2480 , SB2544 , SB672 , SB904 , SB2695 , SB2891 , SB2422 , SB2543 , SB1854 , SB317 , SB2539 , SB2532 , SB2925 , SB1250 , SB2082 , SB2203 , SB457 , SB2357 , HJR4 , HB135 , HB 1109 , HCR35 , HCR64 , SB2721 , SB243 , SB1285 , SB2568 , SB1959 , SB1442 , SB1454 , SB2520 , SB2541 , SB1708 , SB1237 , SB1844 , SB1586

Transcript Highlights:

• For starters, Joaquin, you mentioned reverse osmosis being an old technology, actually developed by two
• One of the most interesting ones is actually no longer using membranes like we use in reverse osmosis
• Cambria built a water reuse system that involved reverse osmosis and ended up with a bunch of brine and
• I want to reiterate our support of not going with the reversion of the water recycling funding.
• The chart that was put out by Finance shows general fund and then other fund reversions.

Summary: The Assembly Budget Subcommittee on water and coastal resilience heard an overview of the governor’s Proposition 4 spending plan, with presentations from the Department of Finance, the State Water Resources Control Board, the Department of Water Resources, the Legislative Analyst’s Office, and later coastal agencies. Members discussed the water chapter’s major allocations for drinking water and wastewater, recycled water, tribal water infrastructure, groundwater recharge and SGMA implementation, dam safety, flood protection, integrated regional water management, Salton Sea projects, and water data/stream gauges. The LAO noted that many programs are established and have clear funding processes, but some newer or less-defined programs may warrant more detailed future budget requests and reporting. No votes were taken on the agenda items. Members raised concerns about groundwater subsidence, water deliveries from the Delta, the pace of water storage investments, instream flows, and whether bond dollars were being used to backfill General Fund reductions. Administration witnesses said groundwater recharge spending is being paced because prior years already funded substantial SGMA work, that Delta operations are governed by water quality, salinity, and species requirements, and that Proposition 1 storage projects have moved slowly because they are locally led and require permitting and financing. The Water Board and DWR said they use public needs assessments, annual plans, and existing grant processes to prioritize projects, and Finance said some General Fund programs were shifted to Proposition 4 to help balance the budget. Members also asked for clearer public tracking of bond spending and more concise future reporting. In the coastal resilience portion, the Ocean Protection Council and Coastal Conservancy described Proposition 4 funding for sea level rise adaptation, coastal flood management, habitat restoration, public access, and San Francisco Bay projects, with a multi-year rollout based on project readiness and recent large state investments. The Conservancy said it would use its existing rolling grant process, while OPC said its sea level rise grants would build on existing programs and new technical assistance. The Department of Fish and Wildlife explained its proposed use of bond funds for climate-ready fisheries, hatchery modernization, salmon monitoring, whale- and turtle-safe fishing gear, and a specific hatchery operations request tied to the Friant settlement. The LAO said the coastal chapter’s proposed first-year spending is relatively modest but generally reasonable given staffing and project readiness, while members emphasized oversight, transparency, and coordination across agencies and jurisdictions.

Transcript Highlights:

• </c><03:09:30.640><c> rep</c> for and what the settlement rep for and what the settlement rep settlement
• </c> act lowers the improper payment act lowers the improper payment threshold<04:53:32.160><c> of</c
• </c><05:32:20.878><c> This</c> instances of improper payments. This instances of improper payments.
• I want to emphasize sham settlement.
• The provision granting settlement.

Bills: HCR84 , HR518 , HCR86 , HB7726 , HB2860 , HB8872 , HR1333 , SB254 , HB7618

Keywords: War Powers Resolution, Lebanon, troop withdrawal, U.S. Armed Forces, military deployment, foreign policy, congressional war powers, executive authority, Middle East, troop removal, concurrent resolution, defense policy, overseas deployment, Ukraine, support, foreign affairs, military aid, international relations, War Powers, military action

Transcript Highlights:

• years, pushing those settlements across the finish line.
• Settlements. If you go to the next slide, we're almost done.
• Under the settlement, we have 10 years to complete those purchases.
• Well, we entered into a settlement.
• Purchasing is part of the settlement.

Committee: Senate Senate Finance

Transcript Highlights:

• It was brought up about the settlement, that they had a settlement.
• The settlement is because they did something illegal. They... ...that they had a settlement.
• The settlement is because they did something illegal.
• We also add reverse osmosis. We have nanofiltration.
• The settlement is unrelated.

Summary: The committee first took up CS/SB 1730, a Live Local Act bill on affordable housing. The sponsor described it as a set of technical and policy adjustments to strengthen implementation, including changes to zoning, height, parking, moratoriums, attorney fees, and related land-use rules. An amendment by Senator Claudio was adopted, adding provisions such as a 10-story height limit near single-family neighborhoods, exclusions for certain protected areas, and changes to fee and use definitions. The committee then reported the bill favorably. Members next considered CS/SB 1674 on unrated bonds for Israel bonds, with a clarifying amendment adopted to make clear the bill applied only to Israel bonds. CS/SB 140 on charter schools was also approved after debate over parent-led conversion of public schools, municipal job-engine charter schools, and surplus school property; opponents warned about local control and impacts on teachers and communities, while the sponsor said the bill preserved district authority and created new school-choice and economic-development options. The committee also passed SB 96, a claims bill for Jacob Rogers, and CS/SB 954 on recovery residences, after strike-all amendments that addressed zoning, ADA concerns, bed caps, staffing ratios, and limits on operation in certain multifamily settings. Senators expressed support for expanding treatment housing but also raised neighborhood and staffing concerns. The committee then approved CS/SB 1714 on local housing assistance plans, which would allow SHIP funds for limited lot-rental assistance for mobile-home owners and require local plans to address mobile-home park closures. SB 658 on standardized construction lien release forms was reported favorably despite testimony from contractors and lawyers warning about possible effects on lien rights and the separate House proposal. The committee also reconsidered and then approved CS/SB 482 after a late-filed amendment addressing local government art fees and a key issue over defining “extraordinary circumstances,” with counties and cities saying more work remained. Finally, the committee passed SB 24 and CS/SB 4, both local claims bills, CS/SB 712 on synthetic turf and related construction rules, SB 952 repealing the emergency firearms/ammunition restriction, CS/SB 1164 allowing email notice delivery in landlord-tenant matters with opt-in safeguards, and SB 202 on municipal water and sewer rates, which drew extensive opposition from North Miami Beach and Miami Gardens officials over utility surcharges and revenue impacts. The meeting ended with SB 202 still under heavy questioning and testimony about the fairness and financial consequences of the surcharge structure.

Transcript Highlights:

• And we will be tracking the FAIR Plan's trends as a slowing or reversal of the FAIR Plan growth.
• We are seeing now insurers are making payment decisions, enabling the department... ...and importance
• We are seeing now insurers are making payment decisions, enabling the department to evaluate adjuster
• And we can expect this to only increase as the settlements are being reached on primary rebuild of total
• For decades, any payment of compensation to these groups is made by insurance companies and ultimately

Summary: The Assembly Insurance Committee held its fifth oversight hearing on the California Department of Insurance’s Sustainable Insurance Strategy (SIS), with Commissioner Ricardo Lara providing an update on implementation. Lara said the department has finalized major reforms, including new catastrophe modeling tools, faster rate review procedures, use of forward-looking data tied to mitigation, and modernization of the FAIR Plan. He argued the strategy is intended to improve insurance availability in wildfire-prone areas, increase transparency, and stabilize the market, while also criticizing consumer intervenor groups and saying the department will tighten rules on intervener compensation and relevance. Members questioned Lara about when the SIS would begin producing visible market changes, how long rate filings would take to approve, and what the FAIR Plan modernization would mean for consumers’ costs. Lara said catastrophe model approvals should be completed by the end of the month, insurers are expected to begin submitting SIS filings in the coming weeks, and rate reviews have already been reduced from 281 days to 71 days. He also discussed a new market conduct investigation into State Farm’s handling of wildfire claims, ongoing complaints about smoke-damage claims, and a newly created smoke claims and remediation task force to develop standards. Lara said the department has helped more than 12,000 wildfire survivors, with over 38,000 claims filed and more than $17 billion paid, and that it is also working with other western states on underinsurance issues. Public commenters from the insurance industry, homebuilding, and insurance brokerage sectors largely supported the SIS and the department’s efforts, saying the reforms are needed to restore availability and stability. They emphasized the importance of timely rate approvals, FAIR Plan solvency, and greater transparency, and several noted that member companies are preparing to use the new filing process. The hearing ended without a vote or formal action, though members and the commissioner discussed ongoing legislative needs, including AB 226 and possible future FAIR Plan transparency measures.

Transcript Highlights:

• And we will be tracking the FAIR Plan... ...the FAIR Plan's trends as a slowing or reversal of the FAIR
• We are seeing now insurers are making payment decisions, enabling the department... ...and importance
• We are seeing now insurers are making payment decisions, enabling the department to evaluate adjuster
• And we can expect this to only increase as the settlements are being reached on primary rebuild of total
• For decades, any payment of compensation to these groups is made by insurance companies and ultimately

Committee: House Insurance

Summary: The Assembly Insurance Committee held an oversight hearing on the California Department of Insurance’s Sustainable Insurance Strategy (SIS), with Commissioner Ricardo Lara reporting on implementation progress and the state’s broader homeowners and commercial insurance crisis. He said the department has finalized major reforms, is reviewing catastrophe models, and expects insurers to begin submitting new rate filings in the coming weeks under the updated framework. Lara emphasized that the goal is to improve availability and stability in the admitted market, reduce reliance on the FAIR Plan, and better reward wildfire mitigation and home hardening. A major portion of the hearing focused on claims handling after the Los Angeles-area wildfires, including smoke-damage claims, underinsurance, and the FAIR Plan. Lara said the department has opened a formal market conduct examination of State Farm’s wildfire claims handling, is investigating FAIR Plan smoke-damage claims, and has helped more than 12,000 wildfire survivors while recovering more than $60 million on complaints. He also announced a new smoke claims and remediation task force to develop standards for smoke-damage cleanup and health protections, and said the department is working with other western states on underinsurance data and policy solutions. Members asked about implementation timelines, the impact on consumers, FAIR Plan costs, and the role of intervenors in rate cases. Lara said the department is tightening rules for intervener compensation and will no longer grant petitions unrelated to the actual rate application, while also clearing a backlog of compensation petitions. He said the FAIR Plan has begun publicly posting policy counts and financial information, and that further transparency measures may follow. Public commenters from the insurance, building, and broker industries generally supported SIS, saying it is needed to restore availability, improve rate timeliness, and stabilize the market. No votes were taken, and the hearing concluded without formal committee action.

Transcript Highlights:

• I can assure everybody we’re not using extraordinary measures to stretch payments.
• It's truly in reverse. I mean, for years and years, it's been bragged about in the university. Yes.
• So there's a lawsuit settlement. Thanks, trial lawyers. Put us in a bad spot again.
• We're not the only people that are dealing with this shortfall based on this settlement.
• And in order to be competitive under the House settlement, you can spend a certain percentage of your

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first adopted revised JBC rules, which staff said were updated to reflect legislation passed in the 2025 session. It then heard a presentation from DFA Secretary Jim Hudson on the governor’s proposed balanced budget for FY27, with no action taken. Hudson said the budget reflects three priorities: limiting state-government growth, continuing investments in education, and advancing income-tax cuts. He highlighted increases for education funding through EFAs, pay-plan costs for Corrections, DPS, and the Attorney General, higher education productivity funding, drug task forces, a Corrections medical contract, the governor’s 1033 initiative, SNAP error-rate reduction efforts, and an additional $100 million set aside for Medicaid sustainability. Committee members questioned the size of the tax cuts, the balance requirement, public education funding, Medicaid trust-fund levels, EFA funding, and the expected impact of new SNAP cost-sharing rules. The Division of Higher Education then presented its productivity-based funding recommendations. Officials said institutions were 2.61% more productive overall, with funding changes driven by a statutory formula that rewards degree production, underserved populations, and high-demand fields. Members asked about declines at UA Little Rock, the formula’s multipliers, the role of the Arkansas Access Act and a new return-on-investment metric, and how two-year colleges are adjusted for size. The committee also reviewed special items and approved two letters: one authorizing 17 net personnel changes across nine institutions, and another adding special language for North Arkansas College’s entry into the University of Arkansas system. The committee then adopted the Higher Education Coordinating Board’s recommendations for all institutions. A lengthy portion of the meeting focused on the University of Arkansas system, especially Fayetteville’s athletics funding and the broader impact of the House/NIL settlement. Chancellor Charles Robinson and system officials explained that the board had waived a longstanding campus transfer and directed the university to provide an additional $6 million to athletics, with some costs likely to be passed through to students but partially offset by existing budget growth. Members debated whether the university should prioritize academics or athletics, how the transfer originated, and whether the athletic changes would affect affordability. The committee also discussed the 1890 extension program at UAPB and the Division of Agriculture’s land-grant funding. UAPB officials said the state match is intended to be one-to-one, that the current recommendation aligns appropriation with actual spending, and that a $2 million set-aside remains available if needed. The Division of Agriculture later clarified that its Smith-Lever extension and Hatch research funds are part of the UA system’s separate budget and that the state matched about $6.2 million in federal extension funding last year. The committee then moved to the Department of Corrections. It approved G1, transferring 51 positions to the secretary’s office to activate a recidivism program, with an estimated cost of about $4 million. Staff then began walking through the department’s FY27 budget, noting an increase of about $8 million for administration and shared services, including a $170,000 sex-offender assessment appropriation moved under Act 723 of 2025 and roughly $6 million more for medical contracts. Questions on the Corrections budget had just begun when the transcript ended.

Transcript Highlights:

• So, in addition to receiving revenues from state agency reversions and unexpended balances from prior
• But that's not the only legal settlements that we have to worry about. So, I can have Ms.
• All the health care providers who receive payment from Medicaid are required, unless they're a non-profit
• The problem is that the MCOs do not show the GRT as a standalone item in the billing and payment, so
• such that the provisions of that payment directly or indirectly guarantee to hold taxpayers harmless

Committee: Senate Senate Finance

Transcript Highlights:

• This bill establishes a 100% tax on settlement fund payments received by taxpayers during the taxable
• But luckily, the Governor embraced my idea, just like he did no taxation on the insurance of settlements
• MCO tax, which I'll address now and not when the MCO tax comes up, the MCO tax increased benefit payments
• The best way to protect those premiums is for the federal government to reverse course and allow our

Transcript Highlights:

• ><c> invoice</c><00:30:44.640><c> for</c> reverse order so upon invoice for reverse order so upon invoice
• We made an effort at settlement prior. It was unsuccessful.
• With regard to some sort of settlement.
• We made an effort at settlement<02:08:47.199><c> prior.
• Um, it was settlement prior.

Summary: The committee first approved the May 12 minutes, then deferred item 285 on the routine personal service contract green list for Western Kentucky University to the July 2026 meeting. It also noted that several deferred university contracts had been withdrawn by the institutions, and then approved the remaining agenda items without objection, including personal service contracts, amendments, memoranda of agreement, Kentucky Entertainment incentive agreements, deferred items, and corrections, except for items pulled for further review. The main pulled item was a Kentucky Administrative Office of the Courts contract supporting Fayette District Court’s juvenile treatment court through Fayette County Public Schools. Court officials explained that the program, created under Supreme Court rules in 2022, serves court-connected juveniles with mental health and related needs, operates at the courthouse, and uses a school-employed program manager funded through a pass-through arrangement with Fayette County Public Schools and the Urban County Government. They said the program has had over 100 referrals, accepted about half, and had at least 25 successful graduates, with 11 high school graduates among participants. Members asked about who pays for drug screens, family involvement, and what counts as successful completion; the officials said the Urban County Government’s Division of Youth Services pays for drug screens and services, and that parents must participate in classes and support services. The committee then approved the contract review, with some members explaining their votes in support and one member emphasizing the committee’s role in reviewing contracts in the public interest. The committee also reviewed two Auditor of Public Accounts contracts. The auditor’s representative said contract 11, with Vantage Point Solutions, will examine the Kentucky Communications Network Authority/Kentucky Wired network for $700,000, well below the $1.5 million appropriated, and that a report is expected before the 2027 regular session. Contract 12 funds a special examination of investment managers used by Kentucky’s retirement systems, prompted by a Legislative Oversight and Investigations request to assess whether investments tied to ESG factors are consistent with fiduciary duties; the representative said the retirement systems have been cooperative and that findings are expected on a similar timeline, with some flexibility built into the deadline. After questions about the Texas litigation referenced in the explanation, the committee approved both auditor contracts without objection.

Transcript Highlights:

• SB850 by Middleton, relating to the payment of certain ad valorem tax refunds.
• With the tobacco settlement from years ago.
• The tobacco settlement permanent trust account and statutes to clarify.
• For the Texas Treasury Safekeeping Trust Company and the Tobacco Settlement Administration.
• Settlement Advisory Committee.

Bills: SB15 , SB35 , SB290 , SB1365 , SB2568 , SB18 , SB427 , SB1860 , SB1864 , SB2675 , SB596 , SB2858 , SB3058 , SB816 , SB1163 , SB1484 , SB1898 , SB1777 , SB1802 , SB2692 , SB315 , SB1585 , SB1626 , SB2058 , SB2050 , SB2105 , SB2245 , SB2764 , SB2611 , SB2497 , SB2452 , SB2243 , SB1705 , SB1244 , SB1361 , SB438 , SB578 , SB584 , SB2690 , SB2521 , SB2487 , SB2342 , SB2063 , SB125 , SB2041 , SB1962 , SB1413 , SB6 , SB2878 , SB13 , SB30 , SJR87 , SB7 , SB127 , SB293 , SB441 , SB3059 , SB57 , SB512 , SB1718 , SB140 , SB2055 , SB2075 , SB2018 , SB1534 , SB1567 , SB785 , SB1233 , SB1580 , SB1663 , SB413 , SB447 , SB519 , SB467 , SB1579 , SB1191 , SB1021 , SB1838 , SB2807 , SB2835 , SB546 , SB2121 , SB2167 , SB2024 , SB1032 , SB1049 , SB1266 , SB1400 , SB1302 , SB401 , SB1596 , SB1281 , SB1242 , SB1343 , SB1346 , SB2753 , SB2221 , SB1719 , SB2177 , SB552 , SB646 , SJR1 , SB15 , SB800 , SB790 , SB748 , SB571 , SB1957 , SB1923 , SB1896 , SB1760 , SB1335 , SB2368 , SB2477 , SB2587 , SB2972 , SB2986 , SB2965 , SB1563 , SB1467 , SB1164 , SB1137 , SB614 , SB705 , SB961 , SB918 , SB955 , SB869 , SB850 , SB863 , SB1610 , SB1055 , SB2206 , SB457 , SB2337 , SB1362 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB973 , SB974 , SB865 , SB506 , SB781 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB505 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB2480 , SB3039 , SB3047 , SB3073 , SB2920 , SB2781 , SB826 , SB766 , SB2460 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB2595 , SB857 , SB2501 , SB66 , SB268 , SB331 , SB618 , SB414 , SB1394 , SB2425 , SB898 , SB993 , SB442 , SB735 , SB784 , SB2538 , SB1919 , SB1013 , SB2215 , SB2322 , SB626 , SB570 , SB747 , SB2183 , SB673 , SB1015 , SB1447 , SB1370 , SB1784 , SB1897 , SB2873 , SB2891 , SB2933 , SB2540 , SB2681 , SB2695 , SB1965 , SB2203 , SB872 , SB875 , SB1030 , SB1277 , SB1730 , SB1681 , SB1152 , SB2969 , SB2747 , SB2705 , SB2541 , SB1708 , SB2080 , SB2721 , SB1986 , SB2392 , SB2539 , SB2857 , SB2799 , SB2785 , SB2782 , SB1531 , SB1927 , SB1263 , SB1098 , SB35 , SB290 , SB1365 , SB2568 , SB18 , SB427 , SB1860 , SB1864 , SB2675 , SB596 , SB2858 , SB3058 , SB816 , SB1163 , SB1484 , SB1898 , SB1777 , SB1802 , SB2692 , SB315 , SB1585 , SB1626 , SB2058 , SB2050 , SB2105 , SB2245 , SB2764 , SB2611 , SB2497 , SB2452 , SB2243 , SB1705 , SB1244 , SB1361 , SB438 , SB578 , SB584 , SB2690 , SB2521 , SB2487 , SB2342 , SB2063 , SB125 , SB2041 , SB1962 , SB1413 , SCR9 , SB21 , SB1198 , SB1405 , SB2601 , SB2778 , HB5560 , HB762 , HB1584 , HB 107 , HB 114 , HB138 , HB4386 , HB2495 , HB581 , HB3348 , HB5323 , HB4341 , HB6 , HB171 , HB143 , HB449 , HB3486 , HB4263 , HB5246 , HB2 , HB2011 , SB17

Keywords: SB 15, Texas Local Government Code, zoning preemption, housing affordability, small lots, lot size, lot density, single-family zoning, residential subdivision, municipal land use, local control, state preemption, parking requirements, setbacks, infill development, missing middle housing, lot width, lot depth, homebuilders, housing supply