Transcript Highlights:

• In the Personnel Board, we increase restricted funds to increase hearing officer hourly rates.
• We increase support the Ombudsman.
• </c> In the Personnel Board, we increase In the Personnel Board, we increase restricted<00:30:04.800>
• </c> In Workforce Development, we increase In Workforce Development, we increase general<00:34:54.200
• </c> services and increased contract costs. services and increased contract costs.

Transcript Highlights:

• </c> we had in one case a 400% increase. we had in one case a 400% increase.
• . increases. increases.
• </c> were uh our last increase was in 2002. were uh our last increase was in 2002.
• Number one, we're twofold increase.
• </c><00:15:05.839><c> We</c> for a second um um increase. We for a second um um increase.

Summary: The Administrative Regulation Review Subcommittee met for its January meeting, approved the minutes from the prior meeting, and welcomed the new regulations compiler. The first item was a repealer from the Council on Postsecondary Education, 13 KAR 2:111, which was explained as necessary because Senate Bill 77 from the 2025 session removed the regulatory authority for advanced practice doctoral degree programs at comprehensive universities. No questions were raised, and the repealer moved forward without objection. The subcommittee then reviewed a large package of State Board of Elections regulations with staff-suggested amendments. The package would update definitions and election procedures, require e-poll books to be ready before polls open, change the standard and timeline for removing an election officer, add oversight by a State Board appointee on election days, recognize the Kentucky party, require voter registration records to be added to electronic voter records, require ballots to fit all races and questions on a single sheet, adjust precinct consolidation petition deadlines, and update incorporated forms and identification references. The package was approved without objection. The Office of the Attorney General’s Office of Regulatory Relief also presented multiple regulations with staff amendments, covering funeral planning declarations, cemetery companies, pre-need cemetery merchandise and funeral/burial contract sellers, and crematory contract sellers. These changes were described as adding specificity, streamlining forms and reporting, and bringing the regulations into compliance with KRS Chapter 13A; they were approved without objection. The Board of Examiners of Psychology presented several regulations, including compact rules, grace-period extensions, and significant fee increases for applications, renewals, reinstatements, exam retakes, and reciprocity. Board representatives said the increases were needed because many fees had not been raised since 2002, the board was operating at a deficit, and legal and administrative costs had risen sharply after the termination of state legal services. Members expressed concern about the size of the increases, but the chair said he would not hold the matter up and would raise the issue with the committee of jurisdiction. The subcommittee also approved staff amendments for the Energy and Environment Cabinet’s air quality regulations and the Education and Labor Cabinet’s education regulations, which updated nontraditional instruction procedures, waiver requests, instruction topics, superintendent assessment requirements, and academic standards. The meeting ended with the next meeting scheduled for February 9 at 1 p.m., and the agenda was adjourned without further objection.

Transcript Highlights:

• And it does not deal with intent or the mechanism of increase or the degree of increase.
• can see that it increased.
• It just says that the pay had to have increased. It doesn't say who increased it.
• It just says that the pay had to have increased. It doesn't say who increased it.
• Petitioner has not identified any such increase here.

Summary: The Oklahoma State Election Board held a special meeting to address several candidate contests and related procedural matters. After roll call and opening remarks, counsel explained the hearing procedures, burden of proof, and possible outcomes. Several cases were noted as resolved or withdrawn, including Timmons v. Jones, Banning v. Sutterfield, and Roberts v. Gaw. In Ranson v. Riley, the board accepted constructive service after the respondent did not appear, heard that Riley was not a registered voter in the required district for the required period, and voted 3-0 to sustain the petition and strike him from the ballot, with costs assessed to the petitioner. The board then heard Hasenbach v. Pugh, a contest challenging Senator Adam Pugh’s candidacy for Superintendent of Public Instruction under the Oklahoma Constitution’s emoluments ineligibility clause. The petitioner argued that Pugh was a sitting legislator whose office’s salary and benefits had increased during his term, relying on stipulated facts, a compensation commission order, and prior case law. The respondent argued the salary increase came from an independent commission that expressly excluded current legislators and that benefit changes were automatic under a preexisting statute, so no qualifying increase applied to Pugh. The board resolved several procedural issues first, including striking a reply brief as beyond the original petition and admitting joint stipulations into the record. After a recess and executive session, the board returned to open session and voted 3-0 to deny the petition in Hasenbach v. Pugh, retaining Pugh as a candidate on the ballot and assessing costs to the petitioner. The meeting concluded with closing remarks from the secretary and a unanimous vote to adjourn.

Transcript Highlights:

• Paul. increases in market value. And so that increases in market value.
• </c> increases there as well. increases there as well.
• uh in 2020 uh um uh increases increases uh in 2020 uh um uh increases have<01:10:52.560><c> been</c><
• </c> lot of increases in the last few years. lot of increases in the last few years.
• </c> deferred amount did increase slightly. deferred amount did increase slightly.

Committee: Senate Taxes

Transcript Highlights:

• But they have get these increases.
• You know, and so now that we want to cap that increase to where they're still getting increased, personal
• That we want to cap that increase to where they're still getting the increase.
• It will continue to increase.
• Nobody's wanted an increase.

Committee: House Special Committee on Property Tax Reform

Transcript Highlights:

• </c><00:26:15.919><c> staff</c><00:26:16.480><c> increased</c> staff increased boiler staff increased
• staff increased boiler staff increased HVAC<00:26:18.320><c> staff</c><00:26:18.799><c> increased</c
• increased building code enforcement enforcement enforcement increased increased increased tourism<00
• Increase the contractor rate increases.
• For elected and non-elected, a 2% increase in salary and another 2% increase in FY28.

Committee: House Appropriations & Revenue

Transcript Highlights:

• It does not deal with intent or the mechanism of increase or the degree of increase.
• It is an increase in pay that was voted by this commission and also an increase in health benefits, specifically
• To increase pay, it is in passive voice.
• since he's not eligible to receive the salary increase.
• They are not new legislative increases during the term.

Transcript Highlights:

• While we have seen an increase in the cost for goods and services, we have seen an increase in the cost
• Our licensee population increased by 35.5% since 2016, while our FTE count only increased by 23.5%.
• increase, along with 141.7 FTEs, which is an increase of three FTEs.
• This is a net increase of approximately 500,000 or a biennial increase of 16.8%.
• I also expect, with those increases, we'll have a projected increase in license applications.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• This is just saying, given the high cost of living, let’s put a pause on any tax increases—no increases
• Income tax collections and overall revenue have increased, and so that increase in revenue has... ...
• on income tax collections and overall revenue have increased, and so that increase in revenue has far
• a result of the increase.
• Increase in expenditures as a result of the increase in revenues, and what we're doing with this bill

Committee: House House Ways & Means Committee of Reference

Summary: The committee first heard House Bill 2780, a technical cleanup measure related to Arizona’s judicial tax lien foreclosure process. The sponsor and a witness explained that it would clarify when a foreclosure should proceed as a public sale, standardize how excess proceeds are distributed, and resolve inconsistencies left from prior reforms. Members asked about the intent to protect lienholders while ensuring former property owners can receive excess funds; the bill was then returned with a due pass recommendation on a 9-0 vote. The committee then took up House Bill 4029, as amended, which would require the Governor’s Office of Strategic Planning and Budgeting and the Joint Legislative Budget Committee to evaluate the revenue impact of federal tax conformity changes earlier in the year, and would require the Department of Revenue to issue tax forms consistent with current statute. The amendment added reporting deadlines and a trigger for the governor to assess whether a special session is needed if the revenue impact is at least $100 million. Supporters argued the bill would force earlier action on conformity and prevent tax forms from being issued based on changes not yet enacted; opponents said it added bureaucracy and could delay the long-standing practice of preparing forms based on expected conformity. The committee adopted the amendment and then approved the bill as amended on a 5-4 vote. Finally, the committee heard House Bill 4030 and the related HCR 2052, which would impose a moratorium from July 1, 2026 through June 30, 2030 on local increases in municipal and county fees, transaction privilege tax rates, and utility rates. Supporters said the measure would protect taxpayers from higher costs of living and prevent local governments from using utility rates or fees to offset other revenue needs. Opponents from cities, counties, and advocacy groups warned it could limit funding for water, wastewater, roads, public safety, and other infrastructure, especially for fast-growing or rural communities that rely on rate studies, grants, and enterprise funds. After extensive testimony and debate over municipal revenue growth, utility financing, and local control, the committee moved the bill forward; the transcript ends during the roll call and does not clearly state the final vote on HB 4030 or HCR 2052.

Transcript Highlights:

• So, we're seeing an increase in that and an increase in the valuation. >> So, you're seeing more increases
• So, we're seeing an increase in that and an increase in the valuation. >> So, you're seeing more increases
• So, we're seeing an increase in that and an increase in the valuation. >> So, you're seeing more increases
• So, we're seeing an increase in that and an increase in the valuation. >> So, you're seeing more increases
• </c> increase in the numbers. increase in the numbers.

Committee: Joint Appropriations

Transcript Highlights:

• In addition, increases in sales of general fund increase the existing maintenance factor payment in 2024
• ; and then $2.4 billion for a very large increase in special education, a 42% increase in base rates.
• increases or other K-14 programs.
• increases or other K-14 programs.
• Just to note that the last time we had a fee increase was in 2015, when it was increased from $70 to

Transcript Highlights:

• This is an increase<01:29:21.679><c> of</c> increase of increase of $478,000<01:29:23.520><c> in</c><
• This is an operating increase to meet the increased costs that we have.
• This is an operating increase to meet the increased costs that we have.
• This is an operating increase to meet the increased costs that we have.
• This is an operating increase to meet the increased costs that we have.

Committee: Senate Finance

Transcript Highlights:

• In addition, increases in state General Fund revenue increase the existing maintenance factor payment
• ; and then $2.4 billion for a very large increase in special education, with a 42% increase in base rates
• There's some pretty large increases in the number of meals served and increasing those costs more than
• increases or other K-14 programs.
• It is a big increase. We need more, and we appreciate it. Finally, all the It is a big increase.

Summary: The committee heard presentations on the Governor’s May Revision TK-12 education proposals, beginning with Proposition 98. The Department of Finance explained that the minimum guarantee rises by about $6.4 billion relative to the January budget across the three-year window, with a total of $124.9 billion in 2024-25, $125.1 billion in 2025-26, and $127.1 billion in 2026-27. Finance also described revised settle-up and reserve actions, including maintaining a $3.9 billion settle-up balance, increasing discretionary deposits into the Prop. 98 reserve, and ending with a projected reserve balance of about $10.3 billion. The Legislative Analyst’s Office said the overall estimates were reasonable but urged the state to fully fund the guarantee and use other budget actions or reserves to manage volatility rather than delay settle-up payments. Members questioned the rationale for leaving the $3.9 billion unsettled, and Finance said the amount reflects revenue uncertainty and the risk of overappropriating Prop. 98 if revenues later fall. The committee then reviewed the Department of Education portion of the May Revision. Finance said the budget adds positions and state operations funding for CDE and includes trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, and other programs. The LAO highlighted concerns and recommendations on several proposals, including the size and structure of the LCFF increase, the special education base-rate increase, additional one-time community schools funding, literacy coach and math professional development augmentations, the multilingual screener, inclusive college grants, homelessness grants, and the proposed paid pregnancy disability leave mandate. CDE supported the special education increase, paid pregnancy leave, community schools, homelessness funding, literacy and math investments, and preschool parity, while urging more support for county offices of education and clearer definitions and implementation details for some programs. Finance said the paid pregnancy leave proposal would cost an estimated $218 million annually and is intended as a recruitment and retention measure. In the Commission on Teacher Credentialing item, Finance proposed funding for legal staffing tied to SB 848 and educator misconduct cases, plus funding and fee changes to support a statewide transcript review platform for subject matter competency and additional support for the residency technical assistance center. The LAO said it had no concerns with the staffing for misconduct and SB 848, recommended the transcript review platform and related fee increase if the platform moves forward, and recommended rejecting the residency technical assistance center expansion because current funding lasts through 2029. CTC said the misconduct workload has grown over the last five to six years and that AI would be used only as a backstop to human review in the transcript system. Public commenters were split, with unions and education groups supporting special education, paid pregnancy leave, community schools, homelessness funding, and literacy investments, while opposing the $3.9 billion settle-up delay and the reduction to preschool COLA.

Transcript Highlights:

• Costs have increased. Personnel costs have increased.
• Costs have increased. Personnel costs have increased.
• Costs have increased. Personnel costs have increased.
• Costs have increased. Personnel costs have increased.
• Costs have increased. Personnel costs have increased.

Committee: House Health Finance and Policy

Transcript Highlights:

• increased caseload, increased pharmacy costs, and higher costs in managed care and fee-for-service.
• increased caseload, increased pharmacy costs, and higher costs in managed care and fee-for-service.
• Every single provider will see an increase or will see a specific level of increase, and the increases
• Every single provider will see an increase or will see a specific level of increase.
• increase.

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:

• the last increase in 2007.
• I'm not sure how the 50% increase is factored in that increase.
• I'm not sure how the 50% increase is factored in that increase.
• and a 573% increase.
• That's a 710% increase.

Summary: The committee heard public testimony on Senate Bill 5816, which would add juice grapes to Washington’s Agricultural Marketing and Fair Practices Act. Staff explained that the bill would allow juice grape producers to form an accredited association to negotiate with processors under the same timelines used for pears, and the prime sponsor said the measure was intended to help growers obtain fairer prices. A grape grower testified that Washington producers face a small number of buyers, little real negotiation, and prices far below New York’s, arguing the bill would give growers a way to bargain collectively. The public hearing closed with 47 people noted in support and one in opposition. The committee then heard Senate Bill 5971, which would create a green fertilizer incentive program for low-carbon nitrogen fertilizer production and use in Washington. Staff described the bill as directing WSDA to establish the program, adopt rules by 2028, and report to the Legislature, with costs shown in the fiscal note. The prime sponsor and several supporters, including Atlas Agro, a port representative, labor, NRDC, WSDA, the League of Women Voters, and the Washington State Potato Commission, said the bill could reduce greenhouse gas emissions, support local manufacturing and jobs, stabilize fertilizer supply and prices for farmers, and help Washington compete for federal clean hydrogen tax credits. WSDA said the program was implementable with consultation and that the Climate Commitment Act could be a funding source, though it noted rulemaking costs. The committee then held a work session on commercial shellfish fee assessments after the Department of Health adopted major fee increases for shellfish licensing and certification. Shellfish growers and association representatives said the increases—described as ranging from roughly 233% to 789% overall, with some individual licenses rising much more—would hit small and family farms hardest, could force closures, and were based on a fee structure they said is outdated and not tied well to production. DOH explained that the program has long relied on general fund support, that federal shellfish safety requirements must be maintained, and that the new fees are intended to move the program toward full cost recovery after years without increases. The department said it had used a phased approach, reopened rulemaking to look for a fairer structure, and would continue working with industry and the Legislature; no vote was taken during the work session.

Transcript Highlights:

• An increase of $100 million is adopted.
• And an increase of 39.9 million was adopted.
• Cost increases at regional offices was $940,000. 35,000 for lease increases under item number five for
• The increase of $251,000 was adopted.
• Under agency request for full-time FTE equivalent increases, increase the agency's FTE cap by 50. was

Bills: SB 1

Committee: Senate Finance

Transcript Highlights:

• rates and persistence rates have increased.
• I want to note that with stable, ongoing increases, we have been able to increase compensation in most
• compensation increased by about 17 percent.
• base increase aligned with inflation.
• increasing notably as a result of increased tuition revenue.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• It's an increase of $12.8 million.
• How much room do you have right now for increases without the $4 million increase?
• increase?
• They don't get the benefit of pay increases or funding increases to the Division of Agriculture.
• As you know, salaries have been increased over time just because benefits have increased and there's

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first filed a report on the executive protection detail and then reviewed a long list of House and Senate bills that were ready for action, with members instructed to hold any items they wanted removed. The committee then took up several agency requests to amend bills: the Auditor of State’s request for a $370 increase for special deputy expense allowance, the Administrative Office of the Courts’ requests for additional funding for court interpreters and substitute court reporters, and requests tied to local sales tax refunds, county property tax redistribution, emergency medical and law enforcement support, and Northwest Arkansas Community College tornado-related repairs. All of those amendments were adopted, and one amendment on House Bill 1034 was held over at Senator Johnson’s request. A major portion of the meeting focused on an amendment for the Department of Corrections to fund a pilot program using mobile technology to identify and disable illegal inmate cell phones at Varner and Cummins prisons. The bill sponsors and Corrections officials described the problem as a serious public safety issue, saying inmates use contraband phones for criminal activity, trafficking, scams, and outside coordination. Members asked about FCC rules, procurement, whether the system would jam or only identify phones, whether it would affect staff or nearby users, how quickly it would work, whether it would be a one-time or ongoing cost, and whether the department had existing budget authority. Officials said the proposal would require an RFP, that current funding was not available in the department’s budget, and that the technology would be a two-year pilot. The committee ultimately adopted the amendment and then gave the underlying bill a do-pass recommendation. The committee also considered an amendment for the University of Arkansas Division of Agriculture, which sought a $4 million increase in appropriation authority. Senators discussed the division’s role in county extension offices, 4-H, research, and salary competitiveness, while others questioned why the division needed more appropriation room when it already had about $10 million in headroom and had requested a different funding level through higher education. Division representatives said the increase would help with salaries and provide flexibility for future funding, and Higher Education staff clarified the original request and recommendation amounts. After extensive discussion, the committee adopted the amendment and gave it a do-pass recommendation. Finally, the committee began acting on governor’s letters, adopting amendments for a homestead property tax credit increase, insurance department conference travel, property appraisal analysis support, career and technical education professional development, regulatory and casino gaming appropriations, a new program integrity line for the Department of Inspector General, consolidation of licensing board appropriations, deletion of a completed Fort Chaffee Readiness Center appropriation, and a revised reappropriation package for prison expansion that included special language limiting use of the funds. Members asked several questions about the prison reappropriation, including whether it still related to the earlier Calico Rock project and whether special language should be considered separately; the committee moved the governor’s letters forward for drafting and further action.

Transcript Highlights:

• Okay, next one's a funded 3% increase for PA. That's the base increase, $35 million.
• Funded 3% increase for PA, that's the base increase, $35 million we talked about, increase in the IDD
• by a 3% premium increase.
• And that increased by $35 million? That base increased by $35... And that increased by $35 million?
• That base increased by $35 million. Okay. Last year it increased by $46 million.

Committee: Senate Finance