Transcript Highlights:

• Less, and our analysis estimates around 25% to 30%.
• It's as far along as we can get it until we get the additional analysis.
• It's as far along as we can get it until we get the additional analysis.
• I think the most recent analysis would be included in Senate Bill 5085 in the actuarial fiscal note that
• I think it's contained within the actuarial fiscal note for Senate Bill 5085. OK.

Summary: The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states. The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans. Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting. Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.

Transcript Highlights:

• Finally, we respectfully request dedicated state implementation funding and a formal fiscal analysis
• Your committee's own analysis recognizes this bill as a reimbursable state-mandated local program and
• The analysis also recognizes that these costs could ultimately become part of the state General Fund.
• We respectfully request a comprehensive fiscal analysis, dedicated state implementation funding, and
• We respectfully request a comprehensive fiscal analysis, dedicated state implementation, funding, and

Summary: The Assembly Appropriations Committee met on July 1, 2026, and first heard SB 1055 by Senator Laird, which would authorize additional construction procurement methods for the Pajaro River levee/flood control project to speed delivery, improve quality control, and reduce costs after prior flooding and evacuations. The Nature Conservancy testified in support, and there was no opposition or committee questioning. The bill was later moved out of committee, with Republicans not voting and Assemblymembers Dixon and Tangipa voting no. The committee also heard SB 1000 by Senator Becker, a follow-up to California’s AI Transparency Act. The bill would update content provenance and disclosure rules for AI-generated and non-synthetic content, remove a user threshold for covered systems, add privacy protections, and create guardrails for third-party licenses, with the goal of aligning California’s rules with international standards. Adobe and Google supported the measure, and it was sent out on a roll call with Mr. Ta not voting. SB 1229, presented on behalf of Senator Allen, would limit an existing Coastal Act disaster-rebuild exemption to prevent speculative development from using the exemption to reduce public access to the coast. The Nature Conservancy supported the bill, there was no opposition, and it was moved out of committee. The committee also approved several bills on the consent and suspense calendars, and public comment included Imperial County concerns about SB 675, including board representation, implementation timing, county administrative control, and funding for mandated changes.

Transcript Highlights:

• The fiscal impacts were a little lower than expected because of taxpayer activity.
• But we're also still doing that analysis, and the Tax and Rev.
• Department is still doing that analysis.
• In fiscal year 2026, early childhood funding amounted to $918 million.
• Despite this, LFC staff conducted analysis which confirmed previous analysis showing that those enrolled

Transcript Highlights:

• is, because most people don't know what fiscal is.
• migrated to Fiscal.
• No cost analysis has been done.
• No cost analysis has been done.
• I'm a fiscal analyst there.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• According to fiscal note, this would be a revenue reduction.
• So, Levi, yesterday there were some questions about the fiscal note, and I was wondering if a new fiscal
• of the fiscal note.
• So if you did want to match the fiscal note to the current analysis from their consultant, the amounts
• So that is the amendment to the fiscal impact on B.

Keywords: 908, all

Summary: The committee met to consider four policy bills and discussed a possible later return to handle DOCR amendments and budget work. They first took up HB 1327, funding for the Agricultural Diversification and Development Fund, and adopted an amendment striking language that would have capped up to $10 million for agricultural infrastructure grants to political subdivisions. The bill was then passed as amended on a 22-0 vote, with Rep. Belts assigned as carrier. Next, the committee considered SB 2256, the Research Technology Park grant. Rep. Stemen offered an amendment reducing the appropriation amounts from the original figures to $10 million and $5 million levels, citing available funding; the amendment passed 19-3. The bill then passed as amended 22-0, and Rep. Stemen agreed to carry it. The committee then debated SB 2093, which combined a retired peace officers/surviving spouses benefit with an added income tax reduction. Rep. Munson moved to remove the income tax portion, and the committee agreed 17-4. The remaining peace officer benefit portion was then passed as amended 21-0, with Rep. Kempenich carrying it. Finally, the committee considered HB 2160, changing the state health plan from grandfathered to non-grandfathered status. Members discussed cost shifting, employee retention, out-of-pocket exposure, and the updated fiscal note; the committee adopted an amendment updating the appropriation figures to match the current PERS/Deloitte analysis, then passed the bill as amended 15-7-1, with Rep. Worry originally the carrier.

Transcript Highlights:

• We are a nonpartisan research and analysis nonprofit.
• For the rest of the calendar year or just the fiscal year? For the coming fiscal year.
• Coming fiscal year.
• You got a summary of that analysis.
• You got a summary of that analysis.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• Ultimately, this analysis leads us to two final points.
• Investments ultimately this analysis Investments ultimately this analysis leads<00:14:06.920>
• <00:14:32.279> not the value of a state run analysis not the value of a state run analysis
• The proposal we have in the governor's budget is $5 million in fiscal year 2026 and $2 million in fiscal
• year 26 and 2 million million in fiscal year 26 and 2 million in<01:18:53.560> fiscal<01:18:53.840

Keywords: 1183, house

Transcript Highlights:

• year 2025-26, and $102.2 million one-time in fiscal year 2026-27.
• This proposal requests project funding for two fiscal years in the amount of $2.42 million in fiscal
• This is really meant for the upcoming fiscal year.
• And as it was noted in our analysis, we found this was quite successful.
• And so that's sort of the fiscal implication there.

Keywords: 988, house, all

Summary: The Assembly Budget Subcommittee on Health heard presentations on several May Revision proposals, beginning with an overview from the Legislative Analyst’s Office and the Department of Finance on the state’s budget condition and the administration’s efforts to reduce out-year deficits through a mix of revenue measures, fund shifts, and program reductions. The chair expressed support for some administration proposals, such as added health IT funding, county administration support, a delay in Medi-Cal cuts for some immigrants, and additional Covered California subsidy backfill, but also criticized proposed Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other cuts affecting counties, workforce, and rural access. The LAO said the budget still relies heavily on reserves and borrowing and urged more reserves and caution on new commitments. The Department of State Hospitals presented several proposals, including reduced county bed billing authority, limited contract exemption authority for online clinical subscriptions, reversion of unspent prior-year funds, additional lease revenue authority for the Metro Central Utility Plant replacement, funding for electronic health record implementation, and a shift of workforce development costs to Behavioral Health Services Act funds. The department also described savings and realignments in its IST and CONREP programs, including making the Independent Placement Panel permanent and adjusting funding for jail-based competency treatment and conditional release services. Members questioned the BHSA workforce funding swap, and the administration said it was part of a broader General Fund offset strategy. The Emergency Medical Services Authority requested funding for statewide behavioral health crisis response guidance and for continued operation of its enterprise systems, and the Department of Managed Health Care sought funds to modernize its complaint system and claims settlement data systems. The largest debate centered on the administration’s proposed use of Behavioral Health Services Act revenues to offset General Fund spending and fund state-directed behavioral health programs. The Department of Finance said the proposal would support population-based prevention, workforce programs, mobile crisis services, and other state-directed uses, while the LAO said it was still reviewing whether the uses comply with Proposition 1 and whether the non-supplement and eligible-use requirements are met. The Commission for Behavioral Health strongly opposed proposed cuts to its Innovation Partnership Fund and community advocacy grants, arguing that both programs are central to community voice, culturally responsive services, and statewide innovation. Commissioners and many public commenters said the cuts would reduce grants to community-based organizations, tribal groups, veterans, LGBTQ communities, youth, and other underserved populations, and that the advocacy program helps communities participate in local planning and access services. The Department of Finance defended the reductions as a way to prioritize direct services and said the programs fit within Proposition 1, but members criticized the proposal as a midstream shift that would weaken community engagement and redirect funds away from prevention and advocacy.

Transcript Highlights:

• When we finished out fiscal year 24-25, we had about 2.9% growth.
• So that is the single biggest change to the outlook coming for this year, fiscal year 2025-26.
• So that is the single biggest change to the outlook coming for this year, fiscal year 25, 26.
• And so I won't spend a lot of time talking about the fiscal strategies that...
• So we incorporated that as well into the analysis.

Summary: The committee met to hear Amy Baker’s presentation on Florida’s constitutionally required long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast reflects slower but still positive economic growth, continued above-average personal income growth, rising wages, and population growth that is increasingly driven by in-migration as Florida’s senior population expands. She highlighted weakening housing-related revenue, especially documentary stamp taxes, softer consumer sentiment, and the expectation that Florida will pass 25 million residents by 2030, with nearly a quarter of the population age 65 or older. Baker said the outlook largely retained the March 2025 general revenue forecast, but the Legislature’s 2025 session actions significantly improved near-term funds available by redirecting or freeing up money, including contingency appropriations and reversions. She noted total state reserves are just under $15 billion, or about 30% of general revenue, and that the budget stabilization fund is at its constitutional maximum. The main spending pressures in the outlook were critical needs, led by a new emergency preparedness and response fund transfer and Medicaid growth driven mainly by medical inflation and behavioral analysis costs in managed care, not by caseload growth. Other high-priority needs were also identified, and Baker said the first year shows a projected surplus, but years two and three show shortfalls, meaning fiscal strategies will still be needed. Members questioned Baker about the accuracy of the forecast, Medicaid managed care costs, the emergency preparedness fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook is a good representation of the total picture, though the Legislature will likely adjust it as conditions change, and that more information on federal changes would come in later estimating conferences. Senator Trumbull asked about the governor’s veto of $750 million, and Baker said it simply returned to unallocated general revenue rather than being spent or added to the budget stabilization fund. The chair closed by warning members to expect a difficult budgeting process and noting that the committee would adjourn without further action.

Transcript Highlights:

• When we finished out fiscal year 24-25, we had about 2.9% growth.
• So that is the single biggest change to the outlook coming for this year, fiscal year 2025-26.
• So that is the single biggest change to the outlook coming for this year, fiscal year 25, 26.
• And so I won't spend a lot of time talking about the fiscal strategies that...
• So we incorporated that as well into the analysis.

Summary: The committee met to receive Amy Baker’s presentation on Florida’s long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast assumes continued but moderating economic growth, with Florida GDP slowing from recent highs, personal income remaining above average, wages continuing to rise faster than job growth, and population growth eventually slowing as the state approaches 2030 and the baby-boomer cohort fully ages into retirement. She also highlighted weakening housing and real-estate-related revenue, especially documentary stamp collections, along with low consumer sentiment as signs of caution in the outlook. Baker explained that the state’s near-term general revenue picture improved largely because of legislative actions taken in the prior session, including contingency releases, reversions, and other budget adjustments, rather than from major new revenue growth. She said reserves remain strong at nearly $15 billion, or just under 30% of general revenue, with the budget stabilization fund at its constitutional maximum. The main spending pressures identified were critical needs and other high-priority needs, led by a new recurring transfer to the emergency preparedness and response fund and by Medicaid, where rising service costs and medical inflation—especially behavioral analysis costs in managed care—are driving higher expenditures despite lower caseloads and a slightly better federal match. Members questioned the accuracy of the forecast, the Medicaid cost drivers, the treatment of the governor’s emergency fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook assumes current federal funding paths continue, that the new federal tax/revenue law had not yet been fully incorporated because agencies were still reviewing it, and that the emergency fund line was calculated from recent appropriations without distinguishing specific uses. She also said the vetoed $750 million did not affect the budget stabilization fund because it reverted to unallocated general revenue. No bills were heard, no votes were taken, and the committee adjourned after the presentation and discussion.

Transcript Highlights:

• Fiscal analyst Christa Boyd says the fiscal review is as simple as that.
• The award-winning document published by the nonpartisan Senate Council Research and Fiscal Analysis Office
• Council Research and Fiscal Analysis Council Research and Fiscal Analysis Office<00:18:31.919> plays
• It's on the Senate Council Research and Fiscal Analysis page under publications.
• Fiscal Analysis page under publications.

Keywords: 918, senate, all

Summary: The program opened the 2026 Senate session with tributes to Speaker Emerita Melissa Hortman, her husband Mark, and others lost or injured during the interim, including Senator John Hoffman, who returned to the floor after surviving an attack. Senators repeatedly framed the session around courage, grief, civil discourse, and a commitment to govern despite heightened fear and political violence. The Capitol itself has changed in response, with locked doors, new security systems, more law enforcement presence, and new visitor guidelines. A major segment focused on Capitol security. Senator Bonnie Westlin said the Axtell report, commissioned by the Department of Public Safety, was the basis for new screening measures and identified weapon screening as the top priority. She said the goal is to create a safer perimeter for members, staff, and the thousands of annual visitors, while keeping access workable through single entry points and Evolv screening machines. She also discussed Senate restrictions on guns in the gallery, possible future legislation to ban guns on the Capitol complex, encrypted badges, internal access controls, and behavioral threat assessments. She noted some recommendations will require funding, with the Department of Administration seeking about $41 million. The program also highlighted the Senate fiscal review, described as a nonpartisan summary of the enacted budget that is being moved toward a more interactive web format. Another segment featured Senator Eric Lucero on affordable housing and home ownership. He said the Minnesota Housing workforce and affordable home ownership program is intended to increase owner-occupied housing supply, but argued that 123 homes built statewide is not enough to address the shortage. Lucero blamed regulation and permitting delays for higher costs, said Minnesota homes can cost $50,000 to $150,000 more than comparable homes in neighboring states, and said he will continue pushing for regulatory rollbacks to make home ownership more attainable.

Transcript Highlights:

• This is not only sound public health policy, but also fiscally prudent.
• This is not only sound public health policy, but also fiscally prudent.
• I understand this is the fiscal meeting, so I focus on a fiscal effect.
• We are very glad to see the recent committee analysis of the fiscal effect of this legislation described
• We are very glad to see the recent committee analysis of the fiscal effect of this legislation described

Summary: The Assembly Appropriations Committee met on April 23, 2025, with a large regular-order agenda and first approved a consent calendar covering many bills. Several measures were then heard individually, with most receiving support from sponsors and stakeholder groups and no formal opposition in the room, though some bills drew respectful opposition or no votes. The committee also read and deemed approved a lengthy suspense calendar before taking up additional bills and public comment. Among the bills discussed, AB 263 would extend temporary flow regulations on the Smith and Shasta Rivers for five years or until permanent rules are completed; AB 309 would remove the sunset on pharmacists’ ability to provide sterile syringes without a prescription to support HIV and hepatitis prevention; AB 631 would require animal shelters to post intake and outcome data online; AB 792 would allow consolidation of bargaining for court interpreters; AB 867 would ban cat declawing except when medically necessary; AB 1206 would require pre-approved housing plans for small residential projects; AB 787 would require health plans to better help patients find in-network providers; AB 596 would protect workers’ right to wear face coverings unless unsafe; AB 282 would allow housing providers to prefer voucher holders without violating source-of-income discrimination law; AB 738 would create a limited rebuilding exemption for disaster survivors from newer solar requirements; AB 566 would require browsers and mobile operating systems to make global privacy opt-outs easier; and AB 622 would clarify CDCR’s authority to award credits to people serving indeterminate sentences who complete rehabilitation programming. Most of these bills were reported out on roll calls, often with bipartisan or limited dissent. AB 309, AB 631, AB 792, AB 867, AB 1206, AB 787, AB 596, AB 282, AB 738, AB 566, and AB 622 all advanced, while AB 263 also moved forward despite opposition from the Siskiyou Board of Supervisors and the California Farm Bureau. AB 622 generated the most extensive debate, with supporters emphasizing rehabilitation, parole-board review, and cost savings, and opponents warning about public safety and the impact on serious violent offenders. The meeting ended after brief public comment on several other bills on the suspense file and then adjournment.

Transcript Highlights:

• We have dedicated section on our website for Behavior Analysis with technical guidance.
• of the financial position of the managing entities for the past 2 fiscal years.
• He's 2 fiscal years.
• So in fiscal 23, 24 the life and served more than 120,000 individuals the fiscal year. 24 25 that number
• And then last fiscal year, 17 million, an increase over 1700 were served.

Transcript Highlights:

• Andrew Lee from House Fiscal Staff.
• until I believe uh fiscal year until I believe uh fiscal year 29.<00:18:42.960> It<00:18:
• recommendation through fiscal year 2029. recommendation through fiscal year 2029.
• That was supposed to start in fiscal year 28 and is now delayed until fiscal year 2030.
• high subsidy transit service analysis. high subsidy transit service analysis.

Keywords: 1187, senate, all

Transcript Highlights:

• It looks like otherwise pretty anemic for the current fiscal year.
• If we're in the middle of a fiscal crisis, it's harder to think strategically to do good analysis and
• Compare that with our expectation for 58 a barrel for this fiscal year.
• the proposed checklist and order of events. for when a fiscal downturn comes.
• And then during a fiscal downturn, that bar may be lowered zero.

Transcript Highlights:

• in fiscal year 2029. in fiscal year 2029.
• We saw the fiscal note, you know, fiscal notes are fiscal notes, you know how we feel about those, but
• We saw the fiscal note, you know, fiscal notes are fiscal notes, you know how we feel about those, but
• We saw the fiscal note, you know, fiscal notes are fiscal notes, you know how we feel about those, but
• We saw the fiscal note, you know, fiscal notes are fiscal notes, you know how we feel about those, but

Keywords: 1187, senate, all

Transcript Highlights:

• I believe there is a fiscal note. Okay, it's not an error.
• There is projected to be a fiscal note for this.
• The analysis demonstrates, and you have the analysis in your packet, so I'm reading from this. has an
• The analysis demonstrates, and you have the analysis in your packet, so I'm reading from this.
• You have the analysis in your packet, so I'm reading from this packet.

Summary: The House Revenue and Finance Committee met to consider two tax-related measures sponsored by Representative Holofsky. The first was House Substitute 1 for House Bill 386, the Tipped Worker Tax Relief Act of 2026, which would allow a temporary Delaware income tax deduction of up to $15,000 for qualified tips for tax years 2027 through 2029, with phaseouts at higher incomes and a refundable credit for lower-income workers. Committee discussion focused on whether the bill applied to residents and non-residents, whether credit-card tips were included, the need for an updated substitute, and the expected fiscal impact. The Office of the Comptroller General said the bill would likely reduce general revenue and that the fiscal note had not yet been fully reviewed, while Deputy Secretary Goldsmith said the Department of Finance could administer it and that implementation costs would be modest. After public comment, the committee voted on a motion to release the bill, but it did not receive enough votes, so the chair said she would walk it for additional signatures. The committee then heard Senate Bill 219, which would phase in an increase in the military pension income exemption from $12,500 to $25,000 by tax year 2029. Representative Holofsky argued the measure would help attract and retain military retirees, support the economy, and provide a strong return on investment through spending, taxes, and community participation. Members raised concerns about whether the benefit should be income-based, with one member arguing that higher-income retirees may not need the tax break, while supporters emphasized the multiplier effect and the value of veterans to the state. Public testimony from Veterans of Foreign Wars representatives strongly supported the bill and described how the exemption could influence retirement decisions and local economic activity. A motion to release the bill also failed to get enough votes, and the chair said she would walk it for signatures before adjourning the meeting.

Transcript Highlights:

• We understand the tough fiscal<00:08:21.520> choices<00:08:22.319> that<00:08:22.639>
• and for fiscal year 27, $121.7 million.
• So, we'll ask our economic analysis division to pull together that. Okay. Thank you.
• division to pull our economic analysis division to pull together<00:12:15.360> that.
• And we also passed out DBEDT's analysis as to why we should fund an increase in tourism.

Keywords: 912, senate, all

Summary: The committee heard testimony and then took up House Bill 1369, which would repeal several tax credits and exemptions, including the renewable fuels production tax credit. Testimony was overwhelmingly opposed: Hawaii Gas, the Hawaii Renewable Fuels Coalition, and the Tax Foundation all raised concerns, with opponents arguing the renewable fuels credit has supported major local investment, cleaner fuel production, and energy resilience, while Hawaii Gas warned repeal would raise costs for customers. The Department of Taxation said it did not take a position but provided revenue estimates, saying the bill would increase revenues by about $33.8 million in FY 2026 and $121.7 million in FY 2027; DBEDT said it would follow up on broader economic impacts. The chair proposed a series of amendments that removed some repeals, added five-year sunsets to certain exemptions, narrowed or conditioned others, and tied the renewable fuels exemption to a dollar-for-dollar match for renewable fuel production certified by the state energy officer. The committee recommended passage with amendments, and the motion was adopted with multiple members voting with reservations. The committee then moved through a series of other measures. HB 159, HB 244, HB 280, HB 316, HB 716, HB 1298, and HB 1295 were recommended for passage, with HB 1295 amended to change a date to 2050. HB 455 was amended to remove the Hawaii Startup Business Loan Program language and instead fund DBEDT contracting for startup financing and support, excluding businesses already eligible for the community-based economic development loan program. HB 504 was amended to add non-recurring appropriations for the Hawaii Tourism Authority, conditioned on formal commitments to purchase local products under the HRS 27-8 timeline; members discussed the cruise passenger tax and where the revenue would go, and the bill was passed with amendments. HB 606 was amended to recognize DHHL authority over mercantile projects licenses, remove some reporting requirements, and replace the appropriation with $25 million for mercantile projects and $25 million for repair and maintenance. HB 1378 was amended to allow the foundation to enter public-private partnerships, adjust appropriation language, and cap a proposed limit at $15 million, with the committee noting the changes addressed concerns raised in testimony from BNF and the attorney general. HB 974 was deferred indefinitely because the House had already passed SB 1501. Finally, HB 1007 was amended to rename the transit-oriented development infrastructure district program as the transit-oriented community improvement program, consolidate the boards into one, expand board membership, add conflict-of-interest provisions, and allow legislative designation of areas; after discussion about HCDA’s role and the stadium district, the measure was adopted with one reservation.

Transcript Highlights:

• <00:26:44.919> i I disagree with their expert analysis i I disagree with their expert analysis
• so 10 million in 25 12.1 each in fiscal so 10 million in 25 12.1 each in fiscal 26<00:34:35.000>
• officials to uphold their duty to fiscal officials to uphold their duty to fiscal responsibility
• He said the analysis looked at two things: the governor's budget and the analysis of the House's HB 115
• <01:31:33.080> of with just like Statewide analysis of with just like Statewide analysis of

Keywords: 928, house, all

Summary: The committee first heard Representative Sweeney present and defend the budget amendment legalizing video lottery terminals (VLTs) and setting a 30% tax rate, with 65% of the tax going to the state and 35% to charities. He argued the lower rate was needed to encourage operators of historic horse racing (HHR) machines to convert to VLTs, saying the higher 45% rate would discourage adoption. He walked through revenue projections for fiscal years 2026 and 2027, estimating significant increases in state and charity revenue as machines transition over time, and said the amendment was designed to expand charitable gaming revenue overall. Several members questioned the assumptions behind his projections and the basis for his analysis, including why his independent research differed from the governor’s and Lottery Commission’s estimates. Sweeney said his figures were based on research into other states and conversations over many years, and he maintained that a 45% tax would likely result in no VLT adoption. Members also debated whether the transition costs for operators would be quickly recouped and whether the state’s share should be larger. One member emphasized that the committee was effectively choosing between a lower operator share and a higher state share, while Sweeney argued the 30% structure would produce revenue for everyone. The committee then moved to other revenue items on the tracking sheet. It voted 7-0 to accept the Lottery Commission’s revised base revenue estimates. Members also discussed an amendment to repeal the local option requirement for Kino games, which would expand Kino availability and was estimated to generate additional lottery profit in fiscal years 2026 and 2027. That amendment drew opposition from members who said local control was an important part of the original Kino policy and that removing it would override municipal decisions. The committee also noted that the VLT/HHR revenue item had already been adopted and was being revisited only to confirm the associated revenue estimates.

Transcript Highlights:

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Keywords: 1187, senate, all