Transcript Highlights:

• The Port Authority, if there were any deficits, we would pick that up. Thank you.
• deficits, we would pick that up. deficits, we would pick that up. Thank<00:33:45.920> you.
• Senator Nelson: Have the structural budget deficit.
• reduction team. reduction team.
• So we don't anticipate a reduction in the number of scientists.

Keywords: 1187, senate, all

Transcript Highlights:

• <00:09:46.320> at you'll see that the shared deficit at you'll see that the shared deficit
• Uh a reduction for our two institutions.
• Uh a reduction from<00:09:55.040> 13<00:09:55.360> million<00:09:56.320> just<00
• So I just want to say that um I would like to go to your deficit reduction numbers.
• discretionary reductions in uh discretionary uh<00:32:53.120> spending.

Keywords: 1183, house

Summary: The committee opened with quorum and decorum reminders, then approved the minutes from February 26, 2026. Members briefly set aside a planned follow-up on GO students from Minnesota State after being told the questions had been fully answered, and moved on to Bemidji State University and Northwest Technical College’s storm damage presentation. Bemidji State President John Hoffman and facilities staff described the June 21 derecho that hit Bemidji, causing widespread roof, window, tree, and infrastructure damage across both campuses and the surrounding community. Hoffman said the institutions were already recovering from pandemic-era enrollment and budget losses, but had improved new student enrollment, retention, fundraising, and deficits before the storm. He emphasized that the campuses were well insured, but that restoring the tree canopy and campus character would take far longer than repairing buildings. Facilities worker Brent Steinmets gave a personal account of the storm response and cleanup, describing days of chainsaw work, debris removal, window repairs, and stump grinding, and noting that many employees were also dealing with damage at their own homes. Members asked what kind of funding request was being made, and Hoffman said Chair Duran was preparing a bill tied to the storm damage and reforestation needs, while alumni had already raised more than $80,000 through a “Replanting Our Roots” campaign. He said the institutions had spent about $50,000 in deductible costs and another $25,000 in unreimbursable overtime, and had hired a landscape architect to plan reforestation. Members also asked about enrollment growth and staffing reductions; Hoffman said overall enrollment was up a little more than 2% since fall 2022, new student enrollment had risen 17%, NTC headcount was up 75%, and the campuses had reduced about 30% of instructional faculty and close to 30% of overall employees while reorganizing programs and administration. Discussion also focused on preserving liberal arts and applied liberal arts offerings, with Hoffman saying the institutions were emphasizing critical thinking, communication, citizenship, interdisciplinarity, and human intelligence alongside workforce training. No vote was taken on the storm-related funding proposal during the meeting.

Transcript Highlights:

• <01:08:09.119> with<01:08:09.520> affordability emissions reduction with affordability
• emissions reduction with affordability um<01:08:11.119> for<01:08:11.359> a<01:08:11.520
• So, it really does set a standardized credit or deficit for the whole marketplace to savings is is our
• <01:11:54.239> to carbon intensity and then um deficits to carbon intensity and then um deficits
• <01:12:02.480> for standardized um credit or deficit for standardized um credit or deficit

Keywords: 912, senate, all

Summary: The Committee on Transportation heard several bills, beginning with SB 2010, which would authorize impoundment of motor vehicles for certain alleged or committed traffic violations. The Department of Transportation supported the bill, while the Department of the Attorney General asked for clarification in section 4 on who could seek remedies and what remedies would be available. The Office of the Public Defender opposed the measure, citing unclear officer-initiated impound criteria, potential strain on judicial or administrative resources, and concerns about hardship for families and indigent owners; the Honolulu Prosecutor’s Office supported the bill with amendments, saying it should be limited to traffic offenses and could serve as an alternative to fines or imprisonment. The chair then recessed before moving to the next items. The committee next heard SB 2527 on commercial driver licensing, which would require state and county firefighters exempt from CDL requirements to be subject to an alcohol and substance abuse policy equivalent to or stronger than federal DOT standards. DOT, the Department of Human Resources Development, county officials, and the Hawaiʻi Firefighters Association all indicated support. SB 2697, which would prohibit driving on roadway shoulders except in limited circumstances, also drew DOT support, with the Attorney General, judiciary, and others submitting comments. SB 2812, requiring driver license applicants to be tested on the dangers larger vehicles pose to pedestrians and bicyclists, was supported by DOT but opposed by the Public Defender, who argued the excessive-speeding portion was too broad for first offenses and that the DUI-related language was unnecessary because DUI relicensing already requires re-examination. SB 291, clarifying that drivers whose licenses were revoked for certain alcohol-related offenses must undergo re-examination before relicensing, received DOT support. The committee then took up SB 3044, which would remove references to pedestrian countdown timers and the requirement that pedestrians begin crossing before the timer starts. DOT opposed the bill, but Hawaiʻi Appleseed supported it, arguing the current rule is confusing and can lead to citations even when pedestrians can safely cross. The Department of Health submitted late comments emphasizing the importance of pedestrian-friendly infrastructure and physical activity, and the chair noted the split in testimony. Finally, SB 2995 proposed a zero-emissions rideshare rebate program funded by a rideshare fee and administered by DOT. Earthjustice strongly supported the bill, describing it as a fee-and-rebate structure to help rideshare drivers transition to zero-emissions vehicles. A witness for Tom Yamachika suggested that if the state wants to tax ridesharing, it should amend existing tax law instead of creating a new chapter, but the bill’s supporters said DOT was better suited to administer the rebate program and that similar models exist in California and Washington. The committee also heard SB 3153, which would authorize DOT to designate airport special district zones at airports statewide to improve security and enforcement; DOT’s airports deputy director supported the measure, saying it would clarify jurisdiction and help address trespassing and hazards, and senators asked about boundaries, mapping, and coordination with the Attorney General. No votes were taken in the portion of the hearing provided.

Transcript Highlights:

• We've got basically a projected structural budget deficit for fiscal year 2028.
• We've got basically a projected structural budget deficit for fiscal year 28.
• Really challenging negotiations in light of our sort of ongoing structural budget deficit.
• That's largely due to the university seeing about a 50% reduction in state funding after the Great Recession
• the number of represented WMS employees remains small, the impact on freedom to make financial reductions

Summary: The Joint Committee on Employment Relations met on May 8, 2026, to review goals and objectives for the 2027–2029 master collective bargaining cycle and to hear updates on higher education and Washington Management Service bargaining. OFM’s Jenny Sheehan outlined the state workforce, noting that most employees are represented, the workforce remains heavily governed by civil service rules and CBAs, and the state is entering bargaining under a constrained hiring and budget environment. She described the bargaining timeline, the role of the June revenue forecasts in determining whether targeted compensation increases can be funded, and the state’s goals of affordability, maintaining labor relations, supporting equity, and addressing non-economic issues such as AI use, leave, immigration-related workplace concerns, and union access in a hybrid work environment. Sheehan also reviewed the 2025–2027 bargaining cycle, including the prior WPEA ratification issue and the requirement that tentative agreements be submitted by October 1 for financial feasibility review and possible legislative funding. She said the 2025–27 agreements cost about $1.2 billion in general funds and $1.7 billion total, excluding the later-funded WPEA agreements. In response to a question, she explained that paid family and medical leave is not bargained over directly because it is governed by statute and ESD rules. She then presented on Washington Management Service bargaining, explaining that only certain WMS employees are eligible to bargain, that representation remains small, and that current WMS contracts are handled through addenda to existing agreements. She also described interest arbitration for certain groups, including ferries and public safety-related employees, and said arbitration awards still must be financially feasible and submitted by October 1. The committee also heard from Western Washington University and the University of Washington on higher education bargaining. Western described its locally bargained contracts, the importance of local bargaining for workload, tenure, grievance, and safety issues, and the impact of the state fund split on budget planning. Western said it has no state funding for student compensation and has requested inclusion of student employees in the wage base. UW outlined its large workforce and the different bargaining frameworks under RCW 41.56 and 41.80, emphasizing that state funding and tuition make up only a portion of its budget and that the fund split and health care cost increases significantly affect compensation planning. UW also highlighted its request for state funding for academic student employee compensation, saying rising costs are reducing the number of positions and affecting class sizes and the academic pipeline. No votes were taken, and the meeting adjourned after members discussed the upcoming bargaining and arbitration timelines.

Transcript Highlights:

• PRIORITIZE A NEW PLANT CONSTRUCTION OF PUBLIC BUILDINGS AND COUNTIES THAT ARE PROJECTED TO HAVE A DEFICIT
• SO WE WILL LOOK AT REQUIRING FUNDING TO HELP EXPAND EXISTING SHELTERING AREAS TO OFFSET THAT SPACE DEFICIT
• THERE IS MORE WORK TO BE DONE ON THE REDUCTION OF EVACUATION SPACE AND THE DEFICIT THAT COMES WITH IT
• WE ARE LOOKING LONG TERM HOW WE WILL INCREASE THE EVACUATION SPACE AND REDUCE THE DEFICIT.
• SHELTER SPACE WHILE 28 COUNTIES ARE A DEFICIT OF SPECIAL NEEDS SHELTER SPACES.

Keywords: 999, senate, all

Transcript Highlights:

• When we looked at 2022, we were structurally in a deficit.
• goals for the state, and our shorter. meeting those reliability and greenhouse gas reduction goals for
• put that in, that if all things go wrong at the same time, we could still find ourselves in some deficit
• into, while we have surplus and an extraordinary condition where you could have 1,000 megawatts of deficit
• The four columns are: how much surplus or deficit do you have under a planning standard?

Summary: The Assembly Committee on Utilities and Energy heard SB 1259, which would require refineries to provide advance closure and remediation planning information, and SB 1425, which would authorize the High-Speed Rail Authority to create a permit process for encroachments in its right of way. The committee also held an informational hearing on California electricity reliability and the future of the Strategic Reliability Reserve. The chair opened by noting the hearing room change, testimony limits, and that the committee would proceed without a quorum at first, then later established quorum for votes. On SB 1259, Senator Blake Spear argued the bill would give communities and state agencies needed information to plan for refinery closures, cleanup, and land reuse, comparing the requirement to estate planning. Supporters, including Benicia City Councilmember Carrie Birdseye and UC Santa Barbara professor Ranjit Schmook, said the bill would help communities facing refinery closures avoid being left without information and better prepare for redevelopment and remediation. Opponents, including the Western States Petroleum Association, the State Building and Construction Trades Council, and business groups, argued the bill could send negative market signals, create conflicts with federal reporting, and potentially accelerate refinery closures. The committee passed SB 1259 on a 7-3 vote, later reopening the roll and recording additional votes before moving it out as amended to Appropriations. On SB 1425, Senator Cortese and sponsor Robert Pearsall said the bill would help the High-Speed Rail Authority manage utility, broadband, drainage, and vegetation encroachments along the project corridor and reduce delays. Labor and construction groups supported the measure as a way to add certainty and speed project delivery. Utilities and local agencies, including LADWP, Southern California Gas, Southern California Edison, PG&E, and others, opposed unless amended, saying the bill needed clearer language on emergencies, existing agreements, and potential impacts on their own rights of way and service obligations. After discussion about emergency language and utility coordination, the committee passed SB 1425 as amended to Appropriations on a 10-3 vote. In the oversight hearing, CEC, CPUC, CAISO, and DWR officials reported that California’s summer reliability outlook is better than in prior years, with substantial new procurement, storage, and demand-response resources added since 2020. They said the state is projected to meet its summer reliability standard and has not needed a flex alert for three straight years, but cautioned that extreme heat, fire, hydro conditions, and federal policy uncertainty still pose risks. Officials emphasized that the current Strategic Reliability Reserve remains important as a backstop, while longer-term planning must address rising demand from electrification and data centers and the eventual retirement of emergency resources.

Transcript Highlights:

• If the Legislature accepts this reduction, will PERB functions be deferred?
• There has been projected deficits going out.
• The reduction in positions is in...
• How do we make that work to prevent service reductions?
• So the savings amount reflects a reduction in the total contract costs.

Keywords: 987, senate, all

Summary: The committee held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department reviewed proposals for EDD Next document management system funding, updated UI loan interest costs, disability insurance and paid family leave benefit and administration adjustments, WIOA funding changes, UI administrative and benefit changes, school employee benefit adjustments, an EMT training reappropriation, and a technical correction tied to EDD Next. PERB discussed funding tied to AB 28 and AB 1, including litigation-related workload and new jurisdiction over legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language on electronic assessment payments and the DWC director salary cap. CalHR proposed additional funding for a consolidated employee assistance program contract, and CalPERS and CalSTRS presented budget adjustments tied to investment costs and state contribution changes. Members focused heavily on UI debt and interest payments, asking the administration for a plan to reduce the outstanding loan and relieve employers. Finance said no specific repayment plan was included in the May Revision, while LAO said the state’s UI tax structure is structurally insufficient and that any debt payoff should be paired with tax-system reform. Senators also questioned EDD Next costs and timelines, PERB’s caseload and staffing needs, and DIR’s emerging technologies unit, with LAO noting that the unit would appear focused on physical workplace safety rather than broader AI labor issues. CalHR said the new EAP contract would consolidate services, improve access to clinicians, and lower costs relative to the current model. CalPERS defended higher external management fees as part of a strategy to pursue higher net returns, while some members pressed for more transparency about private investments; CalSTRS said it was not prepared to address investment-strategy questions at this hearing. Public comment in Part A was dominated by advocates urging support for an immigration enforcement emergency relief fund, along with comments supporting the Jails to Jobs proposal, the Apprenticeship Innovation Fund, and additional PERB funding. The chair noted that many of the immigration-related requests might fall under other committees and said staff would follow up. In Part B, Finance and LAO outlined judicial branch and DOJ May Revision items, including funding for court interpreter services, appellate court security, lactation room implementation delays, courthouse construction reappropriations, and DOJ budget increases. LAO recommended approving the language-access proposal with a report on reducing interpreter cost growth and reducing the General Fund backfill for state court facilities by $10 million on an ongoing basis.

Transcript Highlights:

• technology expenditures have reductions technology expenditures have been<00:04:24.320> reduced
• <00:07:17.639> that $700,000 in budget cuts reductions that $700,000 in budget cuts reductions
• <00:10:44.800> in out a number of the the reductions in out a number of the the reductions
• nearly $300 million in budget deficits nearly $300 million in budget deficits including<00:26:21.120
• He said the state is facing a $6 billion deficit and hard decisions.

Bills: HF51, HF1161, HF2201, HF2786, HF1053

Keywords: HF51, Sibley County, State-Aid Highway 21, capital investment, bonding bill, general obligation bonds, transportation infrastructure, road improvements, sanitary sewer, water main, storm sewer, local infrastructure, county grant, Minnesota Department of Transportation, bond proceeds fund, public works, utility infrastructure, education finance, school district funding, tax base adjustment

Transcript Highlights:

• It's $2.5 million recommended by the executive for grants awarded under the Crime Reduction Grant Act
• This is for medical professional liability insurance premium reduction.
• They have faced a structural deficit in their facilities program for quite a while, and they're trying
• Anything to resolve prior deficits. There's a handful of deficiency appropriations.
• That is really one of our reduction in poverty initiatives that helps families.

Transcript Highlights:

• This year, we are receiving a 20% reduction in that funding.
• This reduction will limit our ability to provide much of that outreach.
• So, in terms of SNAP, you referenced the state backfilling those reductions.
• Are we looking at any reductions there next year?
• So the 39% reduction will definitely impact our program.

Transcript Highlights:

• So with that billion dollar deficit or cut to local governments, will local governments still be required
• And then where Representative Bartleman: actually putting them in deficit because if it's every 3 years
• I think there's a lot of problems with this and will ultimately have reductions in public safety and
• And 9 times out of 10, the property appraiser will propose a marginal reduction in the proposed increase
• We pinched our pennies and we figured out how to maneuver what was a huge deficit, a huge burden on all

Transcript Highlights:

• We don't know what our actual deficit in these out years will be, and yet we are setting the table with
• This is our third consecutive deficit budget.
• For those that are paid above it, it would be approximately a 3% reduction. Okay.
• And page 21 of today's agenda shows the reductions by provider payment.
• It's a reduction, so those dollars would go away as well.

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:

• of over 40% in marketing funds reduction of over 40% in marketing funds available<00:17:19.400> for
• is based on a 2027 this reduction is based on a calculation<00:17:25.000> m<00:17:25.319>
• created a deficit within that fund<00:53:40.720> we<00:53:40.839> made<00:53:41.240>
• This means you're working at an already deficit at addressing what will become a bigger issue.
• <01:14:01.480> at you're working at an already deficit at you're working at an already deficit

Keywords: 1191, senate, all

Transcript Highlights:

• As things stand now, we have a structural deficit of about $40,000 per year.
• As things stand now, we have a structural deficit of about $40,000 per year.
• As things stand now, we have a structural deficit of about $40,000 per year.
• As things stand now, we have a structural deficit of about $40,000 per year.
• As things stand now, we have a structural deficit of about $40,000 per year.

Keywords: 1187, senate, all

Summary: The Senate Health and Human Services Committee met on January 28, 2025, to review Governor’s budget proposals for several health-related licensing boards. The chair said no formal action would be taken and noted that final budget language was not yet available. The committee began with an overview from Bridget Anderson of the health-related licensing boards, who explained that the boards are fee-funded, operate as independent executive agencies, and handle licensing, complaints, rulemaking, and disciplinary matters. She also noted that the Board of Dentistry’s budget includes the Administrative Services Unit and criminal background check program, which can make the budget graphs appear larger than the dentistry board’s own operations. The Board of Dentistry requested funding for a new administrative staff position, estimating about $100,000 in salary, insurance, and fringe costs, to replace support lost when an administrative position was reclassified. Anderson said the board handled more than 300 complaints last year, with cases becoming more complex, especially involving surgical and implant procedures and imaging. Members asked about dental Medicaid access, but Anderson said that issue would be better directed to DHS’s Medicaid oral health division. The Board of Behavioral Health and Therapy requested a full-time position due to rapid growth in the number of regulated professionals, from about 4,000 in 2014 to nearly 10,000 now, and also sought authority to set a fee for out-of-state applicants under the Counseling Compact, with a cap of up to $100 though the board expects to charge much less. The Board of Podiatric Medicine asked to raise its fee ceiling, saying fees had not been increased since 1999 and that the board now faces a structural deficit of about $40,000 per year and declining reserves. Several senators expressed concern about “not-to-exceed” fee authority, calling it too open-ended and suggesting the legislature should scrutinize specific fee needs rather than approve broad ceilings. Similar concerns were raised during the Board of Chiropractic Examiners presentation, where the board sought $100,000 in additional spending authority and a fee increase after 32 years without an adjustment; members questioned the proposed ceiling approach and asked for more historical information before deciding. The Board of Dietetics and Nutrition Practice also discussed fee-setting authority, with the executive director explaining that the board had previously lowered fees without clear authority and later faced audit questions; she requested funding for a vacant administrative position, saying applications and revenues have increased sharply and no fee increase would be needed. The final presentation began with the Board of Pharmacy, which said it serves more than 26,000 licensees and oversees the Prescription Monitoring Program and opioid product registration. The board requested an extension of previously appropriated general fund dollars through fiscal year 2027 to continue paying legal costs tied to the insulin safety net lawsuit, emphasizing that this was not a new funding request but an extension of existing authority. No votes or formal actions were taken during the meeting.

Transcript Highlights:

• Is that going to handle the deficit that we know is upcoming?
• We now know that we are headed in a deficit worse than what we actually thought.
• We now know that we are headed in a deficit worse than what we actually thought.
• . deficit. deficit.
• <01:35:37.280> were 95% of those spending reductions were 95% of those spending reductions

Keywords: 1187, senate, all

Transcript Highlights:

• giving us a zero target while also working together to try to find solutions for the $239 million deficit
• to find solutions for the<00:04:11.319> $239<00:04:12.319> million<00:04:12.959> deficit
• in the state the $239 million deficit in the state grant<00:04:14.400> program.
• uh the bonding cap that the deficit uh the bonding cap that the bonding<00:26:17.039> committee
• in the use of significant reduction in the use of office<00:48:36.040> space.

Bills: HF2431, HF2438, HF2783, HF1943

Keywords: higher education, college affordability, student aid, state grants, North Star Promise, scholarships, financial aid, Minnesota State, University of Minnesota, Office of Higher Education, tuition relief, work-study, child care grants, hunger-free campus, food insecurity, student parents, pregnant students, parenting students, sexual misconduct, Title IX

Transcript Highlights:

• Reserve reduced rates a quarter percent in October after doing the same in September, so two rate reductions
• so we've been trying to stay on top of them, including tariffs on lumber and heavy-duty vehicles, reduction
• It's ended in deficit status for the last four biennia.
• The trajectory is a continued deficit, so it's not a bright picture for us. Excuse me.
• Climate change models project significant reductions in streamflows, especially in summer and fall, in

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• This is the first time in a number of years that we have that impending deficit as we've talked about
• and I've got chair tools here with me too, along with Leader Johnson, but as we are looking at that deficit
• And a lot of that was one-time spending, but it's also some program reduction.
• Uh and we believe program reduction.
• reductions in usage and overdose death. reductions in usage and overdose death.

Keywords: 1187, senate, all

Transcript Highlights:

• So incorporating both the federal reimbursement and the net reduction to the appropriation, this would
• to the appropriation, this reduction to the appropriation, this would<00:15:20.360> save<00:15
• of 1.7 million from one-time reduction of 1.7 million from an<00:15:34.200> MMB<00:15:34.720>
• going into a $6 billion deficit going into a $6 billion deficit caused<00:18:21.320> here
• ,<00:19:02.560> and going into a $6 billion deficit, and going into a $6 billion deficit,

Bills: HF2783, HF2603, HF2846, HF2354, HF1836, HF2713, HF1198, HF1389

Keywords: state government finance, biennial budget, appropriations, Minnesota Management and Budget, Healthy Aging Subcabinet, Office of Healthy Aging, older adults, aging policy, long-term care, caregivers, public health, Medicaid fraud, medical assistance fraud, attorney general subpoena power, fraud enforcement, business filing fraud, Secretary of State, deceptive mailings, consumer protection, certified public accountant

Transcript Highlights:

• The witness said the reduction shown was the freeze and then the additional reduction, and that the overall
• The witness said the reduction shown was the freeze and then the additional reduction, and that the overall
• The witness said the reduction shown was the freeze plus the additional reduction, and that the overall
• know what we see is a structural deficit know what we see is a structural deficit in<05:00:54.080
• about the uh you know structural deficit about the uh you know structural deficit in<05:04:28.040

Keywords: 928, house, all

Summary: The Division 2 Finance Committee heard an overview and budget presentation from New Hampshire Fish and Game, led by new Executive Director Stephanie Simi and Business Division Chief Kathy Leonti. The agency described its mission to conserve and manage fish, wildlife, and marine resources, and emphasized growing pressures from disease, climate impacts, habitat change, and increased public demand. Simi said the department is largely funded by hunting and fishing license revenue and federal grants, is reviewing staffing and internal processes, and faces critical needs including permanent funding for environmental review staff, infrastructure and IT modernization, and possible service reductions if additional support is not found. Members asked about specific program and policy issues, including chronic wasting disease in deer, hemorrhagic disease in rabbits and hares, moose population decline, and a proposed bait-disease bill. The department said it is actively monitoring diseases and did not see a need for the bait bill at this time. Legislators also discussed the Hike Safe program, which the department said has grown from an expected $100,000 annually to more than $300,000, and a possible boating version of that program, which the department said remains under consideration but would involve complex logistics and multiple agencies. Questions were also raised about rescue costs, out-of-state hikers, and whether boat registrations could be used as a revenue source; Fish and Game said boat registration is handled by the Department of Safety, though the department receives $5 per registered boat for the public boat access program. The budget discussion focused on revenue projections, use of unrestricted Fish and Game funds, and dependence on federal reimbursements. Leonti said the department met the governor’s general fund target but not the Fish and Game fund target without using surplus unrestricted funds, leaving only about $100,000 in the fund by the end of the biennium. She said the budget uses more than $18 million in Fish and Game funds annually against about $14 million in unrestricted revenue, and that five of 193 full-time positions remain unfunded. The department warned that if federal grants were halted, it could cost about $5 million over five months and force the Fish and Game fund to cover the gap. Committee members also requested that future presentations be sent electronically in advance, and the department agreed to do so.