Transcript Highlights:

• It seems like we've gone from a very flexible asset test to a very, very stringent back to the 2022 asset
• It seems like we've gone from a very flexible asset test to a very, very stringent back to the 2022 asset
• the asset tax again, or test?
• to METAL and reinstate the assets If you make cuts to medical and reinstate the asset tests, it will
• But it's more of a capitated—is it more capitated? Is it fee-for-service?

Summary: The Assembly Budget Subcommittee on Health held the first of several hearings on the Governor’s May Revision for health care, with opening remarks focused on the state’s projected $12 billion deficit, looming federal Medicaid changes, and the potential impact on Medi-Cal, public health, reproductive health, and safety-net providers. Several members criticized the proposal as balancing the budget on vulnerable Californians, while others defended the need for cost containment and questioned the administration’s assumptions. The chair set ground rules for respectful, focused questioning and outlined three topics: the Medi-Cal proposals, Proposition 35, and Proposition 56. DHCS Director Michelle Baas presented the May Revision’s Medi-Cal package, saying the department’s budget totals $200.6 billion overall, including $45.2 billion General Fund, and that the proposals are intended to address rising caseloads, pharmacy costs, and managed care spending. She described proposed changes for adults with unsatisfactory immigration status, including a freeze on new full-scope enrollment for those 19 and older, $100 monthly premiums beginning in 2027, elimination of adult dental and long-term care coverage, removal of PPS/RAP payments to FQHCs and rural health clinics for that population, and a pharmacy rebate aggregator. Other proposals included eliminating certain OTC drug classes, removing GLP-1 coverage for weight loss, prior authorization and step therapy changes, reinstating the Medi-Cal asset test, eliminating acupuncture as an optional benefit, allowing utilization management for hospice, raising the managed care minimum medical loss ratio to 90%, reducing PACE capitation rates toward the midpoint of the actuarial range, eliminating the skilled nursing facility workforce and quality incentive program, and suspending the SNF backup power requirement. The LAO said the revised Medi-Cal spending estimate is about $2.5 billion higher than the Governor’s Budget in the budget year, and that the increase appears driven more by higher per-enrollee costs than by caseload alone. The LAO said the budget solutions are concentrated in a few areas, are largely ongoing, and should be considered in light of federal uncertainty, but suggested the Legislature could explore alternatives such as more targeted income thresholds for the undocumented expansion and simpler asset-test rules. Department of Finance officials said the proposals are difficult but necessary to address a third consecutive deficit and rising Medi-Cal costs. Members then pressed the administration on the methodology and impacts of the proposals, especially the enrollment freeze, premiums, asset test, hospice controls, PACE reductions, and the elimination of benefits and provider payments. No votes or formal actions were taken at this hearing.

Transcript Highlights:

• It seems like we've gone from a very flexible asset test To a very, very stringent back to the 2022 asset
• to implement the asset test?
• We are opposed to the Medi-Cal asset limit test.
• But is it more capitated, or does it be fee-for-service?
• So every time they submitted an encounter, whether they are capitated—some providers receive a capitation

Transcript Highlights:

• </c> misuse of these particular state assets. misuse of these particular state assets.
• </c> community assets. community assets.
• capital assets to ensure their expensive capital assets to ensure that<00:16:16.720><c> communities</
• </c> So many counties do have asset So many counties do have asset preservation<00:19:37.720><c> and<
• </c> it sent it to capital investment. it sent it to capital investment.

Committee: Senate State and Local Government

Transcript Highlights:

• c><00:35:30.640><c> remain</c> reason, asset preservation must remain reason, asset preservation must
• </c> the precursor to building our capital the precursor to building our capital request<00:45:59.280
• All capital assets are comprised of a number of components that create the whole asset: major mechanical
• All capital assets are buildings.
• All capital assets are comprised<00:52:36.400><c> of</c><00:52:36.559><c> a</c><00:52:36.880><c> number

Committee: House Capital Investment

Transcript Highlights:

• The Senate version takes $375 million. ...of money from the capital budget.
• And that's why I think you're seeing a lot of capital flight recently. Okay.
• assets.
• assets.
• These are very high asset value structures in communities that otherwise don't have a bunch of high assets

Summary: Senate and House Republican leaders held a media availability in Olympia as the 2026 session entered its final full week, focusing heavily on affordability, taxes, and the state operating budget. Senators Braun and Gildon, along with House Republicans Connors and Abbarno, criticized the House and Senate budget proposals as spending billions more than forecast revenue, relying on one-time money, the rainy day fund, and what they called unrealistic assumptions. They argued the budgets would worsen a future deficit and said Democrats were prioritizing special interests over fiscal restraint. A major topic was the proposed income tax on high earners, which Republicans said would likely expand over time and drive businesses and wealthy residents out of Washington. They also discussed other tax proposals they said would hurt affordability, including changes affecting data centers, nicotine products, prescription drug warehousing, retail bags, and bottles. House Republicans said they were working with some Democrats to oppose the income tax and urged the governor to veto it if it reaches his desk. They also said the budget process has excluded Republican input and relied on closed-door negotiations. Republicans also raised several policy issues they said were stalled or killed this session, including juvenile rehabilitation reform, child endangerment and fatality reporting, tort reform, and housing and energy policy. They criticized the House for not advancing measures they said would help with child safety, juvenile justice, housing supply, and energy diversity, and they opposed a data center tax/clawback bill they said could discourage investment and jobs, especially in rural communities. In response to questions, Braun said he planned to raise the income tax, the budget, juvenile rehabilitation, child endangerment, and tort reform in an upcoming meeting with the governor. No votes were taken during the availability.

Transcript Highlights:

• Levels versus the assets that we're managing.
• So, that light blue line is our assets under management.
• So, those are just how, by asset type, each fund is invested.
• how we're going to invest in each asset class.
• We've made some changes to our asset allocation.

Committee: House House Appropriations & Finance

Transcript Highlights:

• So the cost of capital is divided between capital raised through debt, usually by selling bonds, and
• So the cost of capital is divided between capital raised through debt, usually by selling bonds, and
• It includes costs like operations and maintenance and long-lived capital assets that are recovered over
• Utilities operate in capital markets. They compete for investment capital just like other firms.
• We have a cost of capital adjustment mechanism that can move the cost of capital over time.

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• It's really asset planning.
• It's really asset planning.
• And so it's these small assets here, the small, relatively inexpensive asset that we struggle to stay
• There's a, every asset degrades over time.
• And it's just like these other assets.

Summary: The Senate Transportation Committee devoted its meeting to a presentation from Troy Suing of the Department of Transportation on state highway preservation needs. Suing said DOT is a leader in asset planning, but that current funding is not enough to keep up with the condition of highways, bridges, and other assets. He distinguished operations and maintenance from preservation, and described the preservation program’s main parts: pavements, bridges, and other highway facilities such as slopes, rest areas, signal systems, retaining walls, and culverts. Suing reported that about 40% of state roads are already overdue for preservation and that, with current funding, as much as 85% could need preservation within 10 years. He said there are more than 7,900 lane miles currently due, and that delaying work past the “lowest life cycle zone” increases risk and can cost three to five times more later. For bridges, he said the state has about 3,400 bridges, an average age of 52 years, and roughly 10% are over 80 years old; the share of bridges in poor condition is about 9.9%, near the federal threshold that could trigger more federal oversight. He also highlighted culvert failures, including one on SR-510, and the closed Carbon River Bridge on SR-165 as examples of how deferred preservation can lead to closures and community disruption. Committee members questioned the comparison to national asset management leadership, liability risk as roads deteriorate, the cost and regulatory burden of bridge projects, and whether DOT is relying more on its own crews for bridge work because of cost and urgency. Suing said the department is underfunded to fully implement its asset plans and is forced to focus on risk, emergent needs, and the most critical bridge work first. He said DOT’s 2026 supplemental budget identified preservation as one of five unfunded critical priorities and estimated a 10-year preservation need of $8 billion to address the backlog and become proactive again. Members discussed whether targeted funding in the next biennium could help move the state back toward the “green zone,” and the chair closed by emphasizing the real-world impacts of bridge and road failures and the need for legislative action.

Transcript Highlights:

• </c> overinvest in their utility assets. overinvest in their utility assets.
• </c> a bill coming up to deal with asset a bill coming up to deal with asset condition<01:15:07.920><
• </c> on any plant equipment or capital on any plant equipment or capital improvement<02:11:37.760><c>
• </c> assets. These are regulated by the fk. assets. These are regulated by the fk.
• </c><02:47:15.680><c> This</c> other capital expenditures. This other capital expenditures.

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• on Maui and Kawai and as HDC has assets on Maui and Kawai and as we<00:17:58.559><c> work</c><00:17:
• be coming from and whether or Capital be coming from and whether or not<00:29:54.200><c> this</c><00
• AG did the capital we just celebrated last week; that was started in 2007 under the leadership of Mr.
• AG did the capital we just celebrated last week; that was started in 2007 under the leadership of Mr.
• AG did the capital we just celebrated last week; that was started in 2007 under the leadership of Mr.

Committee: Senate Economic Development and Tourism

Summary: The Senate Committee on Economic Development and Tourism heard confirmations for two Hawaii Technology Development Corporation board nominees, Jaclyn Ka and Gregory Oara. Testimony for both was overwhelmingly in support. Supporters for Ka emphasized her Kauaʻi roots, work in workforce development and digital equity, and ability to connect schools, industry, and community needs. In her own remarks, Ka said she wants to bring resources to Kauaʻi and the neighbor islands, strengthen local workforce pathways, and use the HTDC board to help local residents access technology jobs and training. Members questioned Ka about how to reduce reliance on mainland hires for jobs at PMRF and other technology employers, how to better align training with local needs, and how to connect Kauaʻi schools, community college programs, and creative media/digital technology efforts. Ka described KDB’s role in building islandwide digital media and drone clubs, professional development for teachers, and partnerships intended to create a pipeline from school to workforce. She also said the legislature can help mainly by listening and staying informed about local needs. For Oara, supporters highlighted his engineering and semiconductor background, his experience in academia, industry, and startups, and his potential to help HTDC with technology commercialization, IP, and exportable services. Oara said he wants HTDC to better support early-stage companies, improve coordination among universities, government, and the private sector, and create a directory of technical skill sets to connect startups with needed expertise. He also discussed AI, saying Hawaii can contribute by developing smaller, locally relevant models rather than only relying on large-scale data-center infrastructure. The hearing focused on these nominations and testimony; no vote or final committee action was stated in the transcript.

Transcript Highlights:

• Board, the target asset allocation, the target asset allocation of the CTF, the commingled trust fund
• market assumptions and the target asset allocation.
• So since our last study two years ago, the capital So since our last study two years ago, the capital
• We saw increases in the capital market assumptions.
• value of assets, like you mentioned.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on October 8 with introductions from council members and then heard a presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems were 100% funded as of June 30, 2024, with open plans above 95% funded, and explained that strong investment returns and prior funding policy decisions contributed to that position. The actuaries recommended increasing the inflation assumption from 2.75% to 3%, increasing general salary growth by 0.25%, keeping the Plan 1 membership growth assumption at 1%, and raising the assumed investment return to 7.25% for all plans. They also reviewed estimated budget impacts and explained that investment gains are smoothed over up to eight years, while other assumption changes flow directly into future valuations. The council also heard comments from the Economic and Revenue Forecast Council and the State Investment Board, both of which said their inflation and return outlooks were broadly consistent with the actuary’s recommendations. ERFC discussed inflation trends, the Federal Reserve’s 2% target, and why Seattle-area inflation tends to run above the national average, while SIB said its 15-year inflation assumption is 2.5% and that 7.25% is a reasonable long-term return assumption. Public testimony included support for maintaining Plan 1 funding efforts and caution from the Association of Washington Cities about the budget impact of higher assumptions and the risk of overfunding pensions. The council then considered and adopted a motion to maintain the current prescribed long-term economic assumptions, with a roll call vote of 4-2. It next considered the long-term services and supports trust program and, after hearing an overview from DSHS and OSA, adopted the recommended WA Cares premium rate of 0.58% by a unanimous 6-0 vote. OSA said the WA Cares program is still in its learning phase, with no benefits yet paid, and recommended no premium change at this time regardless of the outcome of the related ballot measure. The council also elected Katie Chapman as chair and then adjourned.

Transcript Highlights:

• You build these assets with the goal of satisfying a demand.
• Who would control the asset, the generation asset? Who would own it in your model?
• Without a natural gas asset on site, a nuclear developer can really Now, without a natural gas asset
• It's an asset that we understand.
• And likewise with the nuclear asset in later years.

Committee: House Utilities

Summary: The Committee on Utilities heard testimony first on House Bill 2807, which would lower Missouri’s renewable energy standard from 15% to 7.5% and add nuclear generation as an eligible source, with the sponsor saying the goal is to give utilities more flexibility and support dispatchable power. The sponsor and several witnesses discussed a Senate companion and committee substitute that would clarify the bill to apply only to new nuclear and, in the Senate version, add battery storage credits. Support came from Renew Missouri, Ameren Missouri, Missouri Farm Bureau, and Associated Industries of Missouri, who emphasized grid reliability, dispatchable generation, and the need to adapt to growing energy demand. Opposition from the Consumers Council of Missouri focused on ratepayer impacts, warning that the bill could increase the RESRAM surcharge and urging explicit language to prevent nuclear costs from being passed through to consumers. The committee then heard House Bill 2598, a more complex proposal to create a Missouri Advanced Nuclear Office and a grant program to help finance a “power campus” pairing a natural gas plant with a small modular nuclear reactor. The sponsor and supporters described the bill as a way to attract large data centers, provide near-term power, and use gas plant profits to help fund future nuclear development, while also positioning Missouri to compete with other states and federal nuclear incentives. Witnesses from Bridge to Nuclear and the Missouri Chamber of Commerce supported the concept as innovative and pro-reliability, though committee members repeatedly questioned why the state should put general revenue at risk, how profits and grants would be structured, and whether private markets could do the work without state involvement. Opposition to HB 2598 came from a consumer advocate and an environmental/community witness, who criticized the bill’s potential effects on electric rates, transparency, water use, and local communities affected by data centers. They objected to confidential grant applications and argued that the proposal would further favor large corporations over residents. No votes were taken on either bill during the hearing. Before adjournment, the chair announced that a committee substitute for Representative Banderman’s solar bill would be heard at a later, committee-only session, with the public allowed to attend but not testify.

Transcript Highlights:

• , even though DOT is a national leader on asset management.
• These are all risk-based asset plans that we do.
• It's really asset planning.
• And so it's these small assets here, the small, relatively inexpensive asset that we struggle to stay
• And it's just like these other assets.

Committee: Senate Transportation

Summary: The Senate Transportation Committee devoted the meeting to state highway preservation needs, with testimony from Troy Suing of the Department of Transportation’s Capital Program Development and Management program. Suing said the department is a national leader in asset planning, but current funding is not enough to keep up with preservation needs. He distinguished preservation from operations and maintenance, and outlined the main highway preservation categories: pavements, bridges, and other highway facilities such as slopes, rest areas, signal systems, retaining walls, and culverts. Suing presented data showing that many assets are already past the optimal “lowest life cycle” point for repair. He said about 40% of roads are overdue for preservation now, and roughly 85% could need some form of preservation within 10 years under current funding. For bridges, he said Washington has about 3,400 bridges, with an average age of 52 years, and about 9.9% are currently in poor condition, putting the state near the federal 10% threshold that could trigger more federal oversight. He also described culvert failures and bridge closures, including the Carbon River Bridge, as examples of how deferred maintenance can quickly disrupt communities. Committee members asked about liability risk, bridge project costs and regulatory burden, traffic data, and whether DOT is using more in-house crews for bridge work. Suing said deterioration increases tort and closure risks, bridge projects can involve significant design, environmental, permitting, and outreach costs, and DOT is relying more on maintenance forces in part because of the volume and urgency of repairs. He said the department’s 2026 supplemental budget identified preservation as one of five underfunded critical priorities and estimated a 10-year preservation need of $8 billion to address the backlog and become more proactive. No votes were taken; the meeting was informational and ended with committee appreciation for DOT staff and a brief birthday announcement from Senator Alvarado.

Transcript Highlights:

• Would you call that a regional asset? An asset? No. And not from a financial perspective.
• A regional asset from a business revenue generation perspective? No. Is that a cultural asset?
• as much as just a regional asset.
• spent in capital improvements or operations, the decision as to which capital improvements and what
• support the regional asset.

Committee: House Government Efficiency

Transcript Highlights:

• gains from asset excludes capital gains from asset appreciation.<00:14:14.880><c> So</c><00:14:15.040
• And again, we manage around $160 billion of assets across many pools of capital.
• And again, we manage around $160 billion of assets across many pools of capital.
• And again, we manage around $160 billion of assets across many pools of capital.
• And again, we manage around $160 billion of assets across many pools of capital.

Committee: Senate Education Finance

Transcript Highlights:

• You build these assets with the goal of satisfying a demand.
• Who would control the asset, the generation asset? Who would own it in your model?
• It's an asset that we understand.
• And likewise with the nuclear asset in later years.
• The redundancy of the gas asset is a really good question.

Committee: House Utilities

Transcript Highlights:

• Thus, Morgan Stanley's net zero targets will help determine "how the firm allocates capital."
• Another study by the American Council for Capital Formation found that 175 asset managers controlling
• Again, if we were to talk about their net zero asset management commitments to push all assets toward
• managers and proxy advisors promoting stakeholder capitalism.
• which collectively manage approximately $24.5 trillion in assets as of the end of 2024.

Bills: SB312 , SB945 , SB946 , SB1367 , SB1861 , SB2044 , SB2337 , SB2403 , SB2819 , SJR54

Committee: Senate State Affairs

Transcript Highlights:

• The real danger comes from how the estate tax applies to non-liquid assets.
• In the course between 2018 and 2022, the tax treatment for these formerly depreciable capital assets
• Capital purchases like equipment or new technology are foundational to long-term growth. Mr.
• At the same time, with no support, no capital and no road map moving forward.
• So you have this tax that's imposed on assets beyond a certain level.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: joint hearing, small business, Tax Cuts and Jobs Act, economic recovery, tax relief, job creation

Summary: In this joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, the primary focus was on the importance of making the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. The chair emphasized that small businesses are crucial for the nation's economic recovery, especially in the wake of current federal policies perceived as detrimental. Witnesses shared their experiences and highlighted how the tax cuts facilitated job creation and business expansion, stressing the need for continued support through ongoing tax relief measures. The meeting included discussions about the economic implications of the TCJA's potential expiration, with members voicing their concerns regarding how this could impact small businesses and the broader economy.

Transcript Highlights:

• </c> that's called Arca Capital Management. that's called Arca Capital Management.
• </c> digital assets on a public blockchain. digital assets on a public blockchain.
• </c> cross-border capital. cross-border capital.
• </c> digital assets. digital assets.
• </c> We right now um only offer one asset. We right now um only offer one asset.

Summary: The meeting opened with roll call, confirmation of a quorum, and approval of the April 6 and May 4 minutes, with minor corrections noted to the May minutes. The main presentation came from JD of Link Network, introduced by Dan Cohen, who described Link’s work with crypto.com and other market participants on tokenized money market funds and real-time settlement for institutional clients. JD gave a detailed history of his earlier work developing the Arca U.S. Treasury Fund and ArCoin, emphasizing that the project was built within existing SEC and 1940 Act frameworks and was intended to use blockchain technology for a traditional asset rather than create a crypto product. He said the effort involved years of discussions with the SEC, multiple custodians, and partners such as U.S. Bank, T-Zero Securities, and Tassat, and that the model eventually led to Link’s settlement system. He highlighted concerns that shaped the design, including regulatory compliance, privacy for institutional users, and the need to bridge traditional banking hours with 24/7 digital asset markets. The presentation also described Link’s features, including segregated and bankruptcy-remote fund structures, tokenized deposit and treasury fund settlement, and “yield in transit,” which allows interest to accrue and be distributed daily down to a two-second block. JD said the platform is being expanded for use cases such as exchange liquidity, cross-border capital movement, off-exchange collateral, stablecoin bridging, treasury management, and peer-to-peer settlement. He closed by posing policy questions for the commission about the use cases for stablecoins versus tokenized money market funds in New Hampshire and whether the state could issue or administer a security-based program with appropriate compliance controls.

Transcript Highlights:

• projects fund for major capital purposes including... ...format prescribed by OSPI and in conformity
• account or some other funding mechanism to replace that asset that I've just sold.
• Is there some mechanism in this bill that enables an outlook relative to those assets?
• And that's... ...that asset management?
• and that's that enables an outlook relative to those assets and that asset management is there some

Summary: The House Education Committee heard public testimony on three bills focused on school district finances and education ombuds confidentiality. House Bill 2593, an OSPI request, would require school districts to maintain minimum general fund balances beginning in the 2031 school year, with OSPI calculating district-specific amounts and adopting rules. It would also require monthly financial reporting starting in 2028-29 and allow OSPI to withhold apportionment for late reporting or require repayment plans if districts fall below the minimum. Supporters, including OSPI and the prime sponsor, said the bill is intended to prevent districts from reaching binding financial conditions and to provide earlier intervention; opponents from WASDA, rural districts, and school boards argued it would reduce local control, create cash-flow problems, and impose rigid limits that do not fit different district circumstances. Several witnesses also raised concerns about the proposed maximum fund balance and the impact on districts with enrollment volatility, federal impact aid, or special project savings needs. The committee also heard House Bill 2551, which would let school districts with estimated ending fund balances at or below 3% of revenues seek OSPI approval to sell real property before entering binding financial conditions, with proceeds used to restore solvency rather than being deposited into capital or debt service funds. The prime sponsor and Tacoma School District testified that the bill would give districts flexibility to avoid deeper fiscal distress, while OSPI said it supported the concept but suggested a higher threshold and broader minimum fund balance policy. Testimony in opposition or concern focused on the risk of selling appreciating assets, the possibility of one-time sales being used to solve ongoing budget problems, and the need for stronger state funding rather than asset liquidation. The committee also heard House Bill 2440, which would make identifying information in Office of Education Ombuds complaint records confidential, allow limited disclosure by consent or under legislative or gubernatorial subpoena, and require release of a complainant’s own records with redactions; the bill was supported by the ombuds office and its sponsor as a way to protect complainants and encourage reporting. No votes or executive actions were taken. The committee closed the public hearings after hearing testimony and recorded sign-ins, and the chair noted that the bills could be eligible for executive action beginning the following Monday.