Transcript Highlights:

• This supplemental appropriates $11,645,266 from the unappropriated balance of general revenue surplus
• appropriation, and $5,002,392 to a new special services surplus appropriation.
• , $5,2,392 to a new special services surplus appropriation.
• The bill then appropriates the same amount to a new tobacco education program surplus appropriation within
• The bill then appropriates this amount to a new capital outlay and maintenance surplus appropriation

Keywords: 994, senate, all

Summary: The Senate considered and passed a series of House bills and one constitutional resolution, with several measures receiving title amendments and some taking effect immediately or on a specified date. Early action included moving House Bill 5438, concerning the foundation allowance for instructional programs, to the foot of third-reading bills. House Bill 5441, reforming the state personnel system, was amended with a Judiciary strike-and-insert technical fix, then passed 28-6 and was set to take effect July 1, 2026. House Bill 5462 on mine subsidence insurance passed unanimously, with a title amendment adopted. House Bill 5484, creating felony offenses related to denying medical treatment to sexual offense victims, also passed unanimously with a title amendment. House Bill 5515 modernizing workers’ compensation statutes passed unanimously with a title amendment, and House Bill 5527 establishing licensure and regulation for wellness reimbursement programs passed unanimously. House Bill 5528, protecting personal residential information of certain public officials, passed unanimously with a title amendment. The most extended debate centered on House Bill 5537, an education-related bill that was amended to add a child-protection provision later referred to as “Rayleigh’s law.” The amendment would bar approval of home instruction requests in certain child abuse or neglect cases until the Department of Human Services confirms the investigation is unfounded, closed, or not substantiated, or until 10 days pass without a response. Senators argued the measure was intended to protect children and not target homeschooling. After a point of order, the chair initially ruled the amended language not germane; that ruling was challenged and ultimately overruled by a 24-7 vote, allowing the amendment to remain. The bill then passed 24-7, and a title amendment was adopted. Other measures passed with little or no opposition. House Bill 5582 removed the sunset on the TANF applicant drug-screening program and passed 28-3 after a technical committee amendment. House Bill 5687 reduced the metallurgical coal severance tax over time and adjusted oil and gas tax allocations, passing 31-3. Several supplemental appropriations also passed and were made effective from passage, including funds for Homeland Security/corrections, the Adjutant General, Health, the State Road Fund, and Tourism/Culture and History. The Senate also adopted House Joint Resolution 42, which would place on the ballot a constitutional amendment increasing the homestead exemption from $20,000 to $40,000 and allowing future changes by general law. In second reading, the Senate advanced bills on workforce training reimbursements, aerospace and advanced manufacturing incentives, portable benefit accounts, literacy and science-of-reading training, school aid formula changes, and wedding venue regulation, with amendments adopted on several of them before advancement to third reading.

Transcript Highlights:

• The appropriations limit is a little bit of an apples-and-oranges calculation, if I may.
• But the $98 billion surplus, we didn't pay off $20 billion. And... Same question again.
• But the $98 billion surplus, we didn't pay off $20 billion.
• And 2022, when we had that big $97.5 billion surplus, was an example of that.
• You know, where you use that surplus for every day.

Keywords: 988, house, all

Transcript Highlights:

• I'll quickly go through the Surplus I'll quickly go through the Surplus statement<00:04:48.759><
• million uh we have budget Appropriations million uh we have budget Appropriations are<00:06:35.240
• for Appropriations about $1.9 billion<00:09:49.079> budget<00:09:49.519> Appropriations
• on line N9, House Bill 1. appropriation about $ appropriation about $ 1.96<00:11:19.800> billion<
• level so total the lower appropriation level so total appropriation<00:11:57.720> is<00:11:58.120

Keywords: 928, house, all

Summary: The House Finance Committee met for final approval of HB 1 and HB 2, with legislative budget staff Michael Kain reviewing the final amendment documents and surplus statements. Kain explained that HB 1474H and HB 1484H incorporated the committee’s prior votes and the Governor’s recommended sections, and he walked through the budget math for the general fund, education trust fund, Highway Fund, and Fish and Game Fund. He said the committee’s proposal remained balanced overall, though the current-year general fund showed a projected deficit that HB 2 would address by allowing a possible rainy day fund transfer if needed. He also noted that the committee’s revenue estimates were below the Governor’s, requiring reductions and adjustments to appropriations and lapse assumptions. Members discussed the rainy day fund provisions, including a section in HB 2 that suspends existing restrictions so a transfer can be made if the deficit materializes. Kain said the committee’s approach differed from the Governor’s because the state was not below the overall revenue plan, and the fiscal committee would retain a role in determining any transfer. He also summarized that the Highway Fund would end with about a $13 million balance and Fish and Game with about $3 million, both without additional general fund support. The committee then adopted two amendments to HB 2 unanimously: Amendment 1473H, a technical cleanup to the Group 2 retirement seven-year rule, and Amendment 1482H, a technical correction to the recreational services language. Amendment 1484H, which incorporated those changes into HB 2, was adopted on a 14-1 vote after minority members objected to the bill’s broader cuts and policy changes, including reductions to state agencies, health and human services, and education-related provisions. The committee also adopted Amendment 1474H to HB 1A on a 14-1 vote after similar debate over budget reductions, vacancies, university funding, and school spending limits. Finally, the committee voted 14-1 to report HB 1A and HB 2 as amended as ought to pass, with the minority voting no and the committee planning a full House presentation the following week.

Transcript Highlights:

• I think you're referring to the change in the treatment of the state appropriations limit.
• The appropriations limit is a little bit of an apples-and-oranges calculation, if I may.
• But the $98 billion surplus, we didn't pay off $20 billion. And Same question again.
• But the $98 billion surplus, we didn't pay off $20 billion.
• And 2022, when we had that big $97.5 billion surplus, was an example of that.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight heard ACA 20, the Safe for California Futures Act, a constitutional amendment to strengthen the state’s Budget Stabilization Account (rainy day fund). The authors, Assembly Members Gabriel and Valencia, said the measure would raise the reserve cap from 10% to 20% of General Fund revenues, change how reserve deposits are treated under the Gann limit so deposits would not count against the spending cap until withdrawn, and update eligible debt repayments to include items such as budget loans, Proposition 98 settle-up obligations, and unemployment insurance debt. They emphasized that the proposal was intended to protect schools and core public services and to help California better withstand revenue volatility and future downturns. Committee discussion focused heavily on the technical effects of the measure, especially its interaction with Proposition 98 and the Gann limit. LAO and Department of Finance staff explained that Prop. 98 funding would not be changed directly, that the reserve deposits would be treated as exclusions from the appropriations limit, and that withdrawals would count when spent. Members asked about current reserve levels, mandatory deposits, and whether the measure would create more room for discretionary spending; supporters argued it would simply allow the state to save more in good years, while one member expressed concern that it could function as a slush fund and expand spending opportunities. Several members cited recent budget volatility, record revenues, and the need for stronger reserves, while others stressed that the measure should be understood as a future-oriented savings reform rather than a response to this year’s budget choices. Public testimony was uniformly supportive. California Forward, Elevate California, and the California Chamber of Commerce all backed the proposal, with the Chamber noting support for the policy and highlighting the importance of addressing unemployment insurance debt for small businesses. The chair concluded by thanking the authors, staff, and witnesses, and said ACA 20 was expected to move to the Assembly floor the next day.

Transcript Highlights:

• other activities and projects, House No. 5264, total appropriation 1.8...
• and projects, House No. 5264, total appropriation 1.8...
• Total appropriation, 1.8 billion, 4,046,06.
• A portion of the surplus goes into the reserve account for use in future rainy day funds.
• The surplus goes into the reserve account for use in future rainy day funds.

Keywords: 995, all

Summary: The House opened with the Pledge of Allegiance and received a resignation letter from Rep. Fana Howard of Lowell, effective March 17, 2026, as she transitioned to the Senate. The chamber then took up several procedural orders, including multiple unanimous or voice-vote suspensions of rules and concurrence with Senate petitions, such as referrals on housing and student transportation matters, and a suspension of Joint Rule 12 for a petition involving children served by DCF. The main substantive item was House No. 5264, a fiscal year 2026 supplemental appropriations bill totaling about $1.8 billion. Members discussed its use of Fair Share surtax surplus funds for transportation and education, including major support for the MBTA, special education circuit breaker costs, early education and child care, snow and ice costs, regional transit authorities, and other deficiencies such as GIC and sheriff costs. Members also explained the bill’s tax conformity provisions responding to recent federal tax changes, with debate over whether to delay conformity to limit state revenue exposure. The House adopted a consolidated amendment to the bill and then passed it to be engrossed by roll call vote, 150-3. The House also adopted a resolution commending the Admetek Foundation on Prostate Cancer Awareness Day. Several local bills were advanced, including a sick leave bank for a Department of Corrections employee, a bill waiving the minimum age requirement for a Boston police officer, a Nantucket charter bill, a Stoneham public safety bill, and a Malden special police officers bill, the last of which was amended before being engrossed. The chamber also considered Amendment 43 to redistribute $100 million of Fair Share revenue more evenly to municipalities for roads and education; supporters argued the current distribution favored statewide priorities over local aid, while opponents said the formula would not adequately address rural road needs. That amendment was rejected 128-25. The House then recessed several times, observed moments of silence for local public servants, welcomed visiting youth sports teams, and finally ordered adjournment to meet the next day at 11 a.m. in informal session.

Transcript Highlights:

• This is the surplus fund.
• They used surplus money for that.
• It's not a surplus, right?
• It's not a surplus, right?
• Did you bring us any surplus revenue? Yeah, surplus revenue.

Bills: SB39, SB2129, SB2141, SB2246, SB2323, SB2439, SB2722

Keywords: commercial motor vehicle, truck liability, motor carrier, trucking, civil liability, respondeat superior, negligent entrustment, negligent maintenance, negligent loading, negligent repair, bifurcated trial, exemplary damages, punitive damages, personal injury, collision, employer liability, vicarious liability, Civil Practice and Remedies Code, Texas tort reform, commercial truck accident

Summary: The Senate Transportation Committee reconvened on SB 2722, as substituted by Senator Bettencourt, which would redirect a portion of Harris County Toll Road Authority surplus revenues to the City of Houston and impose audit and tax-rate penalty provisions. Houston Police Chief Noe Diaz and Fire Chief Thomas Munoz testified in support, arguing that Houston bears a large share of toll-road public safety burdens, citing thousands of police and fire responses on toll-road property and the need for compensation for emergency services. Bill King, testifying neutrally, said the toll authority generates large excess revenues and urged stronger oversight and clearer controls on how the money is spent. Opponents, including Harris County officials, business and neighborhood representatives, and toll-road critics, argued the bill would divert transportation dollars, create a precedent for taking toll revenues for general municipal use, and could worsen project delivery and incentives; several also questioned the accuracy and interpretation of the revenue figures and the lack of comparable audit requirements for the city. The committee took extensive testimony but left SB 2722 pending without a vote. The committee then heard SB 2129, which would increase fines for motorists who disregard railroad crossing gates or flaggers, and SB 2323, which would redact railroad crew members’ personal information from public accident reports. Both bills were presented as safety measures, with railroad labor testimony in support, and both were left pending after brief public testimony. The committee also heard SB 2141, a Zaffirini bill concerning specialty license plates for judges, with the substitute aimed at reducing security risks by changing how judges are identified on plates; it too was left pending. Finally, the committee heard SB 2439, another Zaffirini bill, described as a TDLR cleanup measure related to ATV and off-highway vehicle safety certification. The bill would abolish the current training and certification program, which supporters said was burdensome and underused given the small number of approved instructors statewide. With no significant opposition on the record, the committee closed testimony and left SB 2439 pending as well.

Transcript Highlights:

• I've heard the word "surplus" used a lot.
• They ended up borrowing money when they had all that surplus.
• Surplus. And that's where I'd like to clarify the record.
• The annual revenue surplus for Hector is nowhere near 600 million.
• It said in 2019 they spent $125 million in surplus, whatever.

Bills: SB39, SB2129, SB2141, SB2246, SB2323, SB2439, SB2722, SB 39

Keywords: commercial motor vehicle, truck liability, motor carrier, trucking, civil liability, respondeat superior, negligent entrustment, negligent maintenance, negligent loading, negligent repair, bifurcated trial, exemplary damages, punitive damages, personal injury, collision, employer liability, vicarious liability, Civil Practice and Remedies Code, Texas tort reform, commercial truck accident

Transcript Highlights:

• In that case, appropriate notice will be posted.
• In that case, appropriate notice will be posted.
• sort of the same Dynamic uh Surplus sort of the same Dynamic uh Surplus lines<00:40:22.680> premiums
• are Surplus lines lines premiums are Surplus lines coverages<00:40:24.599> are<00:40:24.800>
• markets everyone knows that Surplus markets everyone knows that Surplus lines<00:41:30.079> companies

Keywords: 910, house, all

Summary: The Committee on Consumer Protection and Commerce met on March 12, 2025, and heard testimony on several bills, with most measures drawing support from state boards, agencies, and industry groups. SB 102 (restaurants) had one supportive testifier and no questions. SB 1367 SD1 (installment loans) drew support from DCCA and other boards, but the chair raised concerns about a proposed $5 debit-card convenience fee, saying it seemed high and suggesting it might be amended downward; DCCA said it would check with industry on the likely impact. SB 1373 SD2 (administrative licensure action against sex offenders) received broad support from DCCA and multiple professional licensing boards, including psychology, physical therapy, naturopathic medicine, chiropractic, dentistry, massage therapy, nursing, optometry, barbering and cosmetology, the Hawaii Medical Board, and HPD. The committee then heard SB 1142 SD1 (insurance proceeds), which was supported by DCCA, the Council for Native Hawaiian Advancement, AARP, Hawaiʻi Realtors, and the Hawaiʻi Insurers Council, while State Farm offered comments and the Hawaii Bankers Association opposed. Testimony focused on insurance access after the Lahaina wildfires and the need to address underinsured homeowners. The committee also discussed SB 144 SD2 (stabilization of property insurance), with support from the Hawaii Green Infrastructure Authority, AARP, Hawaiʻi Realtors, and the Hawaiʻi Insurers Council, and comments from the Attorney General and DCCA Insurance Division about revising the financing structure and correcting bill language. Opponents and reservationed supporters argued the bill may not help if applicants can still obtain coverage at very high prices, while supporters said it would expand market capacity and provide a safety net as climate-related losses continue. Finally, SB 253 SD2 (condominium reserves) received support from Hawaiʻi Realtors, CI, and several individual testifiers. Supporters said it would enforce existing disclosure requirements under Act 199 and improve reserve funding transparency, while one individual argued stronger enforcement and an ombudsman-style office would be more effective. The chair reminded testifiers to stay on the bill at hand. No votes or final committee actions were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• We have a little bit of a surplus that we can use. And what is the surplus on that deficiency bill?
• So the overall surplus on the active appropriation account for the employee health...
• So the overall surplus on the active appropriation account for the employee health services is about
• Um, I believe the appropriation was... Fixed for next year in the budget?
• So, taking that across, original appropriation says $69 million.

Keywords: 962, all

Summary: The Finance Advisory Committee approved the minutes from its May 14, 2026 meeting and then considered four fiscal transfers. FAC 2026-9 for the Office of the State Controller transferred $4.345 million among fringe benefit accounts in the General Fund and Special Transportation Fund. Members questioned several employee benefit accounts, including active and retiree health care, Social Security, higher education alternative retirement, and OPEB; agency staff explained the transfers were based on updated year-end projections, with some accounts showing surpluses and others needing additional funds. The item was approved, with two no votes noted. FAC 2026-10 for the Military Department transferred $150,000 from the Honor Guards account to personal services and Governor’s Guard accounts to cover operational needs, and it was approved without opposition. FAC 2026-11 for the Department of Social Services transferred $3.3 million among accounts. Most of the discussion focused on a surplus in the substance use disorder waiver/reinvestment account, lower-than-expected TANF/TFA caseloads, federal family planning backfill requirements, and staffing challenges in eligibility operations. DSS said some funds remained unused because a residential care vendor did not enter into a contract, some reserves were intended for future multi-year investments, and eligibility staff require 12 to 18 months of training; the item was approved. FAC 2026-12 for the Department of Children and Families transferred $3.05 million among accounts for year-end operational needs. Members asked about closures of day treatment and community-based prevention programs, and DCF said children were transitioned to other providers without service interruption, with closures driven by provider decisions and financial viability. DCF also explained that some prior funding had been used as gap funding and that ongoing support had been built into the budget. The committee approved the transfer and then adjourned.

Transcript Highlights:

• Moving to page six, the Senate-only provision regarding surplus appropriations for the state grant program
• The House proposes to allow AFR adjustments in the case of the surplus appropriation to recognize negative
• Moving to page six, the Senate-only provision regarding surplus appropriations for the state grant program
• The House proposes to allow AFR adjustments in the case of the surplus appropriation to recognize negative
• Moving to page six, the Senate-only provision regarding surplus appropriations for the state grant program

Keywords: 1183, house

Transcript Highlights:

• As worthy as those education programs were, the House's goal with the surplus funds was to balance the
• With the surtax again expected to run a large surplus in FY25, it will be our continued goal to achieve
• In conclusion, Madam Speaker, the uses of these one-time surplus funds are a unique opportunity for us
• fiscal year 2025 to provide for supplementing certain existing appropriations and for certain other
• An act making appropriations for fiscal year 2025 to provide for supplementing certain existing appropriations

Keywords: 995, all

Summary: The House first adopted several noncontroversial resolutions, including congratulations to the Rotary Club of Watertown for its 100 years of service and to Mystic Valley Elder Services on its 50th anniversary. It also suspended Joint Rule 12 to advance a petition establishing a sick leave bank for a Massachusetts Department of Transportation employee, James Caruso, sending that matter to the Committee on Public Service. The chamber then recessed and later confirmed a quorum after a roll call was called and withdrawn. The main substantive item was House Bill 4227, the final conference committee report on supplemental FY2025 appropriations using FY2024 fair share surtax surplus funds. Members heard that the bill would spend about $1.38 billion, with roughly $716 million for transportation and $593 million for education. Transportation funding included support for the MBTA, regional transit authorities, Chapter 98, and municipal bridges and culverts; education funding included special education circuit breaker reimbursements, higher education deferred maintenance, vocational school capital, early education supports, endowment matches, and Green School Works. The House accepted the conference report by a roll call vote of 146-3, then passed the bill to be engrossed and later enacted it by a roll call vote of 148-4. The House also advanced House No. 422, establishing a sick leave bank for Esther Adafwa of the Department of Mental Health. The bill was ordered to a third reading and then passed to be engrossed. Throughout the session, the House observed moments of recognition and silence for guests and for the deaths of Richard Serino Sr. and Minnesota Speaker Emerita Melissa Hortman, and it adopted an order to adjourn in Hortman’s memory, with the House set to meet again Monday at 11 a.m.

Transcript Highlights:

• For too long, we have seen surplus after surplus pile up in our state coffers.
• <00:01:02.519> after<00:01:02.879> surplus<00:01:03.559> pile we have seen Surplus
• after surplus pile we have seen Surplus after surplus pile up<00:01:04.159> in<00:01:04.320><
• bill it would be 105% of the Surplus bill it would be 105% of the Surplus this<00:07:11.120>
• Surplus dollars and returning it to the Surplus dollars and returning it to the people<00:35:03.599><

Keywords: 1183, house

Transcript Highlights:

• So, let's go to appropriation adjustments again on page three of the surplus statement, and we'll walk
• So, let's go to appropriation adjustments again on page three of the surplus statement, and we'll walk
• I know the surplus statement is what you can look at for the highway fund surplus statement, but you’
• had appropriated uh $10 million a year. had appropriated uh $10 million a year.
• fund there, smaller surplus statements. fund there, smaller surplus statements.

Keywords: 1191, senate, all

Transcript Highlights:

• It does not create a new state program or appropriate state funds. Therefore, the...
• The measure is not anticipated to have a physical impact on the state budget or appropriations.
• understanding is there are no dollars in the budget, and I don't believe that there have been any dollars appropriated
• disclosure of a complaint information from the Office of Juvenile System Oversight will be made to an appropriate

Bills: HB3767, HB3934, HB4199, HB4336, HB2947, HB3834, HB4302, HB4095, HB3287, HB3649, HB4430, HB4431, HB2059, HB3647

Keywords: dentistry, licensing, dental hygiene, foreign-trained dentists, temporary license, public health, emergency response, child care, workforce, pilot program, affordable care, income eligibility, interventional pain management, pain management clinic, chronic pain, acute pain, spinal injections, epidural steroid injection, peripheral nerve block, nerve ablation

Transcript Highlights:

• And I think that this bill is appropriate when you're under construction or when you're reporting or

Bills: HB 2007, HB 2462, HB 2621, HB 2921, HB 3187, HB 3331, HB 3332, HJR 144, HB 3514, HB 3528, HB 3539, HB 3563, HB 3720, HB 3726, HB 3751, HB 3859, HB 3947, HB 4148, HB 4164, HB 4337, HB 4346, HB 4368, HB 4706, HB 4916, HB 4950, HB 4967, HB 5177, HB 5603

Keywords: commercial signs, county approval, transportation code, regulations, road signage, high occupancy vehicle lane, pregnant operators, transportation, parental rights, motor vehicle regulations, live video feed, state agency, transparency, public safety, confidentiality, personal information, local government, airport data, public records, regional transportation

Transcript Highlights:

• Kind of early in the process, and I think that this bill is appropriate when you're under or when you're

Bills: HB2007, HB2462, HB2621, HB2921, HB3187, HB3331, HB3332, HJR144, HB3514, HB3528, HB3539, HB3563, HB3720, HB3726, HB3751, HB3859, HB3947, HB4148, HB4164, HB4337, HB4346, HB4368, HB4706, HB4916, HB4950, HB4967, HB5177, HB5603

Keywords: commercial signs, county approval, transportation code, regulations, road signage, high occupancy vehicle lane, pregnant operators, transportation, parental rights, motor vehicle regulations, live video feed, state agency, transparency, public safety, confidentiality, personal information, local government, airport data, public records, regional transportation

Transcript Highlights:

• <00:03:34.239> for just updates a total appropriation for just updates a total appropriation
• operations and maintenance appropriation operations and maintenance appropriation for<00:03:41.920
• onetime appropriation in FY27. onetime appropriation in FY27.
• <00:37:35.040> So billion surplus anymore. It's gone. So billion surplus anymore.
• We spent this massive surplus.

Keywords: 919, house, all

Summary: The committee took up House File 4252 and first heard a walkthrough of a DE2 amendment that largely incorporated Office of Higher Education technical and statutory cleanup items, including reporting consolidations, updates to postsecondary registration and licensing statutes, and an anti-fraud provision. New provisions in the DE2 would require public postsecondary institutions to explain developmental courses before enrollment and obtain a written acknowledgement, revise the state grant tuition cap, add a $1.5 million ongoing appropriation in FY 2027 for an identity verification system to combat enrollment fraud, and provide $5,000 one-time funding for reforestation at Bemidji State University. Fiscal staff also noted additional special revenue fund revenue and expenditures tied to licensing and registration litigation response. The main debate centered on the A8 amendment offered by Representative Rarick, which would require the governor to appoint University of Minnesota regents only from candidates recommended by the joint legislative committee if the legislature fails to elect regents. Rarick argued the amendment was needed to address what he described as conflicts of interest and pay-to-play concerns in recent gubernatorial appointments. Several members questioned whether the language was constitutional, whether it actually addressed conflicts of interest, and whether it should instead refer to ARCAC-screened or ARCAC-recommended candidates. Nonpartisan staff said the governor’s appointment power is addressed in the university charter, not directly in the constitution, but could not definitively assess constitutionality if challenged. Members were divided: some supported the goal of cleaner governance but said the amendment was not ready or did not match the problem being described; others argued the legislature had failed to complete its own regent appointments and that the amendment was a response to that failure. No vote on the A8 amendment or the bill was reached in the portion provided, though a roll call was requested on the amendment and the chair indicated the bill would continue through amendment consideration before final discussion and vote.

Transcript Highlights:

• <00:07:39.440> changes Um there are two appropriation changes Um there are two appropriation
• appropriation in FY27. appropriation in FY27.
• big surplus in comparison. big surplus in comparison.
• $19 billion surplus and we spent it all. $19 billion surplus and we spent it all.
• massive surplus. It's all gone. massive surplus. It's all gone.

Bills: HF4252

Keywords: higher education, student aid, financial aid, grant programs, scholarships, Office of Higher Education, Minnesota State, University of Minnesota, community college, technical college, postsecondary institution, college affordability, student fees, athletic facilities, competitive athletics, developmental education, remedial courses, pregnant students, parenting students, priority registration

Transcript Highlights:

• Is this appropriate? Is it okay? All right.
• Going to have over-appropriated dollars.
• But regardless, all of that money is appropriated in HB2.
• The next year, 2022 surplus, $13 million, spent none of it. $204, $8.5 million state surplus.
• The next year, 2022 surplus, $13 million, spent none of it. $204, $8.5 million state surplus.

Summary: The committee met for an informational hearing focused largely on the state capital outlay process and House Bill 2. Roger Husser and Matt Baker of the Division of Administration/Facility Planning and Control described how the office prepares and administers the capital outlay bill, said the bill has grown substantially over five years, and argued that recent changes in culture, staffing, project management, cash-flow analysis, and use of third-party support have more than doubled project expenditures and improved delivery. Members asked about the use and cost of third-party project managers, delegation of smaller projects to agencies, hiring difficulties, and whether the changes represented better interpretation of existing law versus statutory changes. Husser said some statutes were amended, some internal customs were removed, and the office would provide a list of those changes. He also explained that the office is trying to move away from overly rigid practices and toward faster project completion while still following public-bid and oversight rules. A major portion of the discussion centered on the size and structure of the capital outlay bill, especially the gap between Priority 1 cash capacity and the much larger Priority 5 backlog. Husser said the current annual Priority 1 limit is tied to construction inflation and is about $574 million, with additional surplus funds also available, but that the bill contains far more Priority 5 funding than can realistically move in a five-year plan. He and members discussed dormant projects, scope creep, legacy projects that have sat in the bill for years, and the problem of false expectations for non-state entities. Proposed solutions included limiting Priority 5 to five times Priority 1, requiring annual re-endorsement by members, setting district or project caps for non-state projects, requiring time limits and reporting for grant-like non-state projects, placing matches in escrow, requiring design readiness before submission, and consolidating the many existing reporting requirements into one clearer report. Members also discussed bundling multiple projects under one agency project, which the House had begun piloting for LSU, UL Lafayette, Southern, and DOTD, and which Husser said could improve flexibility, reduce overappropriation, and better reflect actual spending. Baker then explained cash-flow management and the commitment process, saying FPC now analyzes projects annually to estimate what can actually be spent in the next fiscal year and uses commitments to allow projects to proceed when future-year funding is expected. He said overappropriations can result from poor cash-flow estimates, delays, dormant projects, or projects coming in under budget, and that the office is already reworking cash-flow assumptions and reappropriating savings where possible. Members also raised concerns about change orders and low bids; staff said project managers review change orders closely, require concurrence on non-state projects, and sometimes reduce scope to keep projects within budget. After FPC’s presentation, the committee heard the beginning of Louisiana Economic Development’s capital outlay discussion, where LED explained that its projects generally fall into three categories, including the Economic Development Awards Program and Site Readiness Program, both used to support targeted economic development and job creation.

Transcript Highlights:

• We request a budget transfer between appropriation categories within the Operations and Maintenance Trust
• This budget amendment places an overall surplus of $32.1 million into reserve and multiple appropriation
• The main driver of the surplus is declining caseloads. Follow-up, Representative Tant. Thank you.
• Meyer was curious, what is driving or what is predominantly responsible for that $32 million in surplus
• I think that's mainly good news, but just want to make sure. 32 million in surplus.

Keywords: 999, senate, all