Transcript Highlights:

• I think there are solutions out there, a lot of crossover and things that you can help us with, and we'll

Summary: The Senate Transportation Committee met on January 13, 2026, for a work session on Governor Ferguson’s proposed 2026 supplemental transportation budget and a public hearing on Senate Bill 6005, which makes supplemental transportation appropriations for the 2025–27 biennium. Committee staff reviewed the transportation budget outlook, noting that the 2025 session had balanced the transportation budget over four years with significant new revenues, but that recent fuel-tax and Climate Commitment Act forecasts had softened the long-term outlook. Staff and the governor’s budget team said the proposal still leaves the budget in positive shape while addressing major needs such as preservation, ferry replacement, maintenance, and the state self-insurance account. The governor’s office described a $16.8 billion transportation budget proposal centered on preservation and maintenance, including $3.1 billion in bonding for eligible preservation projects, $1.1 billion for three new ferries, additional ferry preservation funding, pavement and bridge work, maintenance funding, County Road Administration Board startup money, State Patrol communications upgrades, DOL service access improvements, dredging for the Lower Columbia River, and restored regional mobility grant funding. Committee members asked about ferry capacity, DOL mobile offices, self-insurance costs, and whether additional preservation money could be used in 2026. Testifiers from cities, counties, labor, ports, construction, business, and environmental groups generally supported the emphasis on preservation, ferry reliability, local road funding, and freight projects, while some urged broader transit and rail investment and one witness criticized the budget’s spending approach. During public testimony on SB 6005, speakers from Bainbridge Island and ferry communities supported ferry investments and reliability improvements; local government and labor representatives backed preservation funding and better working conditions for transportation workers; business and construction groups endorsed maintenance, paving, bridge repair, and the Lower Columbia dredging item; and port and environmental advocates supported freight, port electrification, and rail funding. One witness raised concerns about the cost and long-term implications of hybrid-electric ferry maintenance, and another urged restraint in spending. The hearing ended after testimony, with the chair noting the sign-in tally and adjourning the committee without a vote on the bill.

Transcript Highlights:

• For those reasons, I vote aye.
• Chairman, I'm definitely voting yes, and I'm voting yes on the bill.
• My personal way I vote is I vote no on amendments. The sponsor doesn't want that.
• Ways and Means by a 7-0-1 vote and a third read vote of 53-7.
• I will vote yes today.

Summary: The House Ways and Means Committee considered several Senate bills dealing largely with cryptocurrency, county tax liens, and tax conformity. SB 1042 would allow state retirement systems to invest up to 10% in virtual currency holdings, and SB 1043 would let state agencies accept virtual currency payments through agreements with providers; both were described as permissive rather than mandatory and were returned with due pass recommendations on 5-3 votes. Members expressed caution about volatility and government involvement in digital assets, but supporters said the bills simply create options and could improve efficiency. The committee then took up SB 1067, which addresses county cleanup assessments for blighted properties in unincorporated areas. Chairman Olson offered an amendment removing the bill’s original mechanism for placing the assessment directly on the property tax bill, while preserving the lien so it survives a tax lien sale. County officials and the County Supervisors Association testified in support, saying counties currently absorb cleanup costs for hazardous properties and the amendment would help make counties whole without broadening property tax use. The amendment was adopted and the bill was returned with a due pass as amended recommendation on an 8-0 vote. SB 1180, on Department of Revenue tax conformity forms and instructions, prompted extended debate over whether DOR should presume conformity with federal tax changes and how to avoid an automatic tax increase without legislative action. Chairman Olson’s amendment would have DOR presume conformity only when federal changes reduce income or tax liability, while nonconformity would be presumed for increases; the sponsor said he wanted the bill to move but did not prefer the amendment. The amendment and the bill as amended both passed 5-3, with members noting the issue needed further work and clearer statutory language. SB 1221, requiring DOR to notify legislative tax chairs before new interpretations that adversely affect taxpayers and to testify if asked, also passed 5-3 after adoption of an intent-clause amendment. SB 1292, clarifying PSPRS’s 5% voting-stock cap applies to publicly traded corporations, passed unanimously, and SCR 1033, a nonbinding resolution encouraging retirement systems to monitor digital asset ETFs and report back before the next session, passed 5-3. SB 1503 was held at the sponsor’s request, and the committee adjourned at the end of the agenda.

Transcript Highlights:

• My hope is that we can finish testimony and potentially vote before we go.
• If we finish but don't get to the voting before we have to go to the floor.
• showing that it's petroleum. distillates or naphtha, something other than what it is, and they'll crossover

Bills: SB2199, SB2200, SB2201, SB2949, SB2332

Keywords: overweight vehicle, vehicle weight limits, hazardous materials, hazmat, cargo tank, fuel transport, trucking, commercial vehicle, Transportation Code, criminal penalty, second-degree felony, loading violation, truck weight, axle weight, gross weight, public safety, commercial carrier, Texas, commercial truck, truck route

Transcript Highlights:

• Hunter voting aye. Mr. Vasut voting aye. Have all members voted?
• Meyer voting aye, Virdell voting aye, Lauterbach voting... God. Have all members voted?
• Have all members voted? Show Mr. King voting aye. Have all voted?
• Have all members voted? Have all members voted? All voted.
• Romero voting aye. Have all members voted? Have all members voted?

Bills: HCR158, HCR159, HCR160, HCR161, HCR162, HCR163, HCR164, HR174, HR427, HR790, HR810, HR857, HR866, HR882, HR883, HR962, HR966, HR1001, HR1045, HR1085, HR1097, HR1127, HR1138, HR1141, HR1150, HR1152, HR1292, HR1296, HR1304, HR1305, HR1306, HR1308, HR1309, HR1310, HR1311, HR1312, HR1313, HR1315, HR1317, HR1318, HR1320, HR1321, HR1322, HR1323, HR1324, HR1325, HR1327, HR1328, HR1329, HR1330, HR1331, HR1332, HR1333, HR1334, HR1335, HR1338, HR1340, HR1341, HR1342, HR1343, HR1344, HR1345, HR1346, HR1347, HR1348, HR1349, HR1352, HR1353, HR1354, HR1355, HR1358, HR1359, HR1360, HR1361, HR1362, HR1363, HR1364, HR1365, HR1366, HR1368, HR1369, HR1370, HR1380, HR1383, HR1384, HR1385, HR1386, HR1387, HR1388, HR1389, HR1390, HR1392, HR1393, HR1396, HR1397, HR1398, HR1399, HR1400, HR1402, HR1403, HR1404, HR1405, HR1406, HR1407, HR1408, HR1409, HR1410, HR1411, HR1412, HR1413, HR1414, HR1415, HR1417, HR1418, HR1419, HR1420, HR1421, HR1422, HR1424, HR1425, HR1426, HR1427, HR1428, HR1429, HR1430, HR1431, HR1432, HR1433, HR1434, HR1435, HR1436, HR1437, HR1438, HR1440, HR1441, HR1442, HR1443, HR1444, HR1445, HR1447, HR1448, HR1449, HR1450, HR1452, HR1453, HR1454, HR1455, HR1456, HR1458, HR1459, HR1460, HR1461, HR1462, HR1463, HR1464, HR1465, HR1466, HR1467, HR1469, HR1470, HR1471, HR1472, HR1473, HR1475, HR1477, HCR132, HCR154, HR17, HR49, HR170, HR275, HR355, HR356, HR364, HR369, HR672, HR690, HR755, HR756, HR759, HR762, HR763, HR781, HR785, HR848, HR1240, HR1265, HR1303, HR1307, HR1314, HR1316, HR1319, HR1326, HR1336, HR1337, HR1350, HR1351, HR1367, HR1371, HR1372, HR1373, HR1374, HR1375, HR1376, HR1377, HR1378, HR1379, HR1382, HR1391, HR1395, HR1451, HR1457, HR1468, HR1474, HR1476, SB1637, SB2878, HB2885, HB2017, HB5246, SB8, SB2308, SB1405, HB 119, SB3059, SB15, SB568, SB2900, HB3642, HB3909, SB268, HB493, SB2217, HB2516, SB650, HB2963, SB1610, HB705, SB2972, SB1540, HB40, SB2753, SB1660, SB2024, HB1545, HB46

Keywords: World War II, V-J Day, Victory over Japan Day, Japan surrender, atomic bomb, Hiroshima, Nagasaki, USS Missouri, Douglas MacArthur, Harry S. Truman, Winston Churchill, Joseph Stalin, Potsdam Conference, Pacific Theater, Greatest Generation, veterans, military history, commemoration, concurrent resolution, Texas Legislature

Transcript Highlights:

• All right, so and Representative Robel Caviero will be voting today.
• Those who voted for it, those who voted against it, and we've made the best of it I just needed to voice
• Representative Hockman Vigil, yes, I'd like to explain my vote.
• Explain your vote. Thank you, Madam Chair.
• We voted in number three in number.

Transcript Highlights:

• They mostly voted for me.
• They mostly voted for me.
• </c> not to vote for the bill. Thanks. not to vote for the bill. Thanks.
• </c> the bill and to vote it. the bill and to vote it.
• . crossover. crossover.

Keywords: 1191, senate, all

Transcript Highlights:

• of voting age are in compliance with the federal voting rights when drawing the maps.
• The Voting Rights Act was passed.
• of the party, and I don't vote for a party.
• In many states, he wouldn't be able to vote.
• It appears designed to dilute the voting power.

Summary: The Senate Special Committee on Congressional Redistricting met virtually for its West Texas regional hearing, established a quorum, and explained that the hearing was part of a series of statewide information-gathering sessions before any map was filed. The chair outlined the Zoom procedures, the two-minute testimony limit, and the availability of written comments through the committee’s public portal. Senators also discussed the logistics and transparency of the process, including the expectation that any proposed map or amendment would be made public once filed and that additional hearings would follow. Senator Blanco, whose district includes West Texas and the border region, said the area’s communities of interest should be kept together and warned against repeating the loss of representation that followed the last redistricting cycle. Senators Alvarado, Hinojosa, Miles, and others debated the value of virtual hearings versus in-person hearings, the number of people who had testified, and whether the committee could subpoena witnesses after the regional hearings ended. The chair said he was awaiting legal guidance and would consider a subpoena motion at a formal meeting the next day. A lengthy exchange also occurred over the tone of public testimony and the chair’s view that some comments directed at Republicans and the president had been offensive or historically inaccurate. Invited witnesses and public commenters largely opposed mid-decade redistricting and argued that any new map should reflect population growth, especially among Latino and other minority communities, and comply with the Voting Rights Act. Nina Perales of MALDEF said the hearings were not meaningful without a draft map and testified that Texas has a long history of discriminatory redistricting; senators questioned her about litigation, DOJ’s July 7 letter, and the 2021 congressional map. Tania Chavez Camacho, Luis Figueroa, and several El Paso residents emphasized that maps should preserve communities of interest, avoid cracking and packing, and be transparent and participatory. A smaller number of witnesses supported redistricting, including one El Paso resident who said the current districting leaves the area underrepresented and another who argued that some communities want to return to a map closer to the earlier District 16 configuration. Several witnesses also criticized the DOJ letter as inconsistent with the state’s position that the 2021 maps were drawn race-blind, while others said the current process was too rushed and lacked sufficient public input.

Transcript Highlights:

• rate, you know, but one of the charts in Georgia's presentation caught my eye where you see the crossover

Keywords: 1182, all

Summary: At the April meeting of the Finance Advisory Committee, staff presented an updated state revenue forecast that was more cautious than January’s because of heightened economic uncertainty tied to the Iran conflict and broader national risks. The general fund’s available resources were revised down from $577 million in January to $378 million in the April forecast, with the lower estimate driven by reduced revenue projections while spending assumptions were unchanged. Staff said the outlook depends heavily on how long the Middle East conflict lasts and noted that a prolonged disruption could weaken the forecast further, while a quick resolution could improve conditions. George Hammond of the University of Arizona gave a broad economic overview, highlighting geopolitical risk, elevated oil and gasoline prices, sticky inflation, weak Arizona job growth, and uncertainty around federal policy, tariffs, immigration, and AI-related investment. He said Arizona’s recent job growth has been very weak and concentrated mainly in health services, while most other sectors lost jobs, and he attributed much of the slowdown to low hiring rather than layoffs. He also discussed population growth, noting that Arizona remains above the national average but is increasingly dependent on net migration as natural increase slows, and he warned that housing affordability remains strained even as Phoenix inflation has moderated. Panelists generally echoed the cautious outlook but pointed to some offsets. Liz St. Clair said Arizona’s near-term revenues could benefit from tourism tied to spring training and the Final Four, though higher fuel costs could dampen discretionary spending. Other panelists noted that the federal policy environment, tariffs, and immigration changes are likely to restrain growth, while productivity gains, especially from technology and AI, may help businesses maintain output. Several members also discussed housing, saying single-family permits have fallen while rental supply has improved affordability, and they raised concerns about labor-force growth, wage disparities, and the reliability of recent employment data revisions. No formal votes or actions were taken.

Transcript Highlights:

• rate, you know, but one of the charts in Georgia's presentation caught my eye where you see the crossover

Summary: The Finance Advisory Committee received an update on the state revenue forecast and broader economic conditions. Staff said the April forecast was more cautious than January’s, citing greater uncertainty from the Iran conflict and other macroeconomic risks. Available general fund resources for the four-year period were revised down from $577 million in January to $378 million in April, with no change to expenditure estimates. George Hammond of the University of Arizona then presented on the national, state, and local economy, emphasizing risks from geopolitical conflict, tariffs, federal policy uncertainty, labor supply constraints, and elevated housing costs. He said Arizona job growth had been weak and driven mainly by health care, while inflation in Phoenix remained moderate but shelter and consumer commodity prices were still elevated. He also noted that population growth is increasingly dependent on net migration as natural increase slows. Panelists generally echoed the cautious outlook. Liz St. Clair said Arizona’s near-term revenue outlook still had some support from tourism and a strong spring season, but rising fuel costs and the duration of the Middle East conflict could pressure discretionary spending and revenues. Jim Rounds argued the economy was likely headed for a soft landing, though he warned that federal borrowing, inflation, workforce shortages, and energy reliability remain concerns; he also criticized leaving the Rainy Day Fund unused. Danny Court said the housing market remains under pressure on the ownership side, while rental supply and industrial demand have been relatively strong, and he noted sticky inflation and immigration declines as additional risks. Doug Walls explained that large employment benchmark revisions were affecting Arizona’s job numbers, and said the latest report showed slower but more balanced growth, though labor force declines and a higher unemployment rate were concerning. Lorenzo Romero added that business activity appears resilient in the low-hire, low-fire environment, but warned about debt burdens, uneven wage growth, and ongoing uncertainty. No votes or formal actions were taken.

Transcript Highlights:

• contingency, but does not include New Mexico GRT, project development, interchange ramp extensions, crossovers

Transcript Highlights:

• As a voting member, I chair and vice chair this committee every other year.
• I want to thank everybody, our voting members, for being here. We have a quorum.
• Transportation, we monitor who buys those bonds, and we note almost every time there's very little crossover
• And then we can just take a vote on them next month.

Transcript Highlights:

• develop proper position descriptions and proper workflows with that role because it's kind of a crossover
• with that role because it's kind<00:24:55.760><c> of</c><00:24:55.840><c> a</c><00:24:56.000><c> crossover
• </c><00:24:56.480><c> role</c><00:24:56.640><c> where</c><00:24:56.880><c> they're</c> kind of a crossover
• role where they're kind of a crossover role where they're nurses<00:24:57.360><c> but</c><00:24:57.600

Keywords: 910, house, all

Transcript Highlights:

• So there's some crossover there.
• Hawaii Insurance Council so there's the Hawaii Insurance Council so there's some<01:18:12.280><c> crossover
• there</c><01:18:14.080><c> there</c><01:18:14.239><c> are</c><01:18:14.560><c> there's</c> some crossover
• there there are there's some crossover there there are there's one<01:18:15.080><c> seat</c><01:18:15.400

Keywords: 910, house, all

Transcript Highlights:

• Senator Gonzalez votes yes, Senator Lanier votes yes, Senator Padilla votes yes, Senator Steinborn votes
• yes, Senator Tobiasen votes yes, Senator Trujillo votes yes, Senator Wood's vote yes, Senator Jendo
• votes yes.
• Senator Trujillo votes yes. Senator Tobiasen votes yes. Senator Trujillo votes yes. Senator Woods?
• Senator Tobiasen votes no. Senator Trujillo votes yes. Senator Woods votes no.

Bills: HB2, SB152

Keywords: general appropriation, budget, Medicaid, education funding, public safety, telecommunications, low-income assistance, lifeline, broadband, rural broadband, universal service fund, public regulation commission, PRC, 911 surcharge, telecommunications relay service, VoIP, mobile service, internet affordability, digital equity, digital inclusion

Summary: The committee heard a series of capital, bond, environmental, economic development, juvenile justice, and health care bills. Senate Bill 240, the capital outlay package, was presented as a $1.3 billion statewide appropriation, including discretionary capital projects and agency projects; after questions about CYFD projects and House/Senate capital allocations, the committee voted do pass on the committee substitute. House Bill 248, the general obligation bond package totaling about $392.5 million for senior centers, libraries, higher education, and tribal projects, also received a do pass after questions about project vetting, bond timing, and school bus funding. House Bill 80, which increases the share of oil and gas conservation tax revenue going to the Oil and Gas Reclamation Fund to speed orphan well plugging and site cleanup, drew strong support from business, environmental, and industry groups; members discussed funding balances, procurement bottlenecks, and the distinction between abandoned and orphan wells before voting do pass. House Bill 184, making technical fixes to the Conservation Legacy Permanent Fund and related distribution rules, passed with little debate. The committee also heard Senate Bill 172, which expands the TRIGGER program allowing companies to access national laboratory expertise; supporters from the labs, the governor’s office, universities, and business groups cited job creation, follow-on investment, and commercialization gains, while one senator raised concerns about the long extension of the program. The bill passed do pass. House Bill 95, creating a judge for the First and Second Judicial Districts, was described as matching a previously heard Senate bill and passed do pass. Senate Bill 165, a major juvenile justice bill, generated the most extensive debate: the sponsor said it updates the juvenile code, raises the age for certain serious offenses, extends services for youth sentenced as adults, and expands community corrections; law enforcement supported it, while the Public Defender, youth advocates, the ACLU, and a Bernalillo County commissioner opposed it, arguing it expands adult sentencing and relies too heavily on incarceration. Despite those objections, the committee voted do pass. Finally, House Bill 4, which increases the Health Care Affordability Fund distribution to support premium assistance and related coverage programs, was amended so that a portion of the premium surtax would go to the Behavioral Health Program Fund and any unexpended balance would revert to the affordability fund. Supporters from BeWell, health advocacy groups, the insurance office, and homeless services said the bill would protect coverage gains and help offset federal changes; members asked about the amendment’s effect on the behavioral health fund and the bill’s flexibility if revenues decline. The amendment was adopted, and discussion on the bill continued.

Transcript Highlights:

• </c> vote but other states would have a vote vote but other states would have a vote also<00:30:33.880
• They vote. How do we know they're not voting in two places?
• </c><01:15:42.400><c> in</c> to vote here um as compared to vote in to vote here um as compared to vote
• </c><01:19:27.080><c> in</c> to vote absentee instead and vote in to vote absentee instead and vote in
• </c> uh and voted out of state um didn't vote uh and voted out of state um didn't vote in<01:27:58.920

Keywords: 1191, senate, all

Transcript Highlights:

• We'll leave the vote pending for the vote. Thank you. 239 Thank you. Thank you for watching!
• Voting. Thank you very much.
• Do you want to leave that pin here or go ahead and vote?
• We're going to vote this slate of bills out as you see.
• Yeah, we're not going to vote that one out. Yes. Yes, ma'am.

Bills: HB166, HB2000, HB3248, HB3513, SB155, SB1659, SB1730, SB1778, SB1790, SB1848, SB2017, SB2105, SB2794, SB2917, HB2756, HB353, HB166

Keywords: child endangerment, controlled substances, penalty group, elderly protection, disabled individual rights, child grooming, sex offender registration, criminal justice, reportable conviction, law enforcement, defense, peace officers, local government, security, juvenile board, Moore County, appointments, juvenile justice, county legislation, dangerous dogs

Transcript Highlights:

• Representative Anaya: Yes, and explain my vote. Representative Kates: Pass.
• Representative Anaya: Yes, and explain my vote. Representative Kates: Pass.
• Representative Eleanor Chávez: Yes, too, and I want to explain my vote.
• My understanding of the process itself is when you vote to table, you can also vote to take it off the
• That will not be my vote on the floor unless I see it's addressed.

Summary: The committee first took up HB 195, as amended by committee substitute, which would protect the personal assets of individual medical providers from medical malpractice judgments when they carry appropriate insurance or participate in the Patient Compensation Fund. The sponsor said the bill was intended to address providers’ fear of losing homes and other personal property, while opponents argued it could exempt a class of people from civil justice. Supporters said it was a reasonable compromise that preserved patient access to justice while helping recruit and retain providers. The committee adopted the substitute and advanced it on a do pass vote. The committee then heard HB 295, a revised version of the Accessibility Act, which would create a centralized office for accessibility reporting, technical assistance, and annual reporting on barriers in state buildings and websites. Supporters said the bill would improve coordination, data collection, and compliance with existing ADA requirements; opponents argued it duplicated existing law and would create another government office without enforcement power. Members debated whether the Governor’s Commission on Disability should handle the work instead, but the sponsors said the commission lacked capacity and the Department of Health was a better fit. The committee adopted the substitute and advanced it 8-1. Next, HB 296 proposed doubling the working families tax credit. The sponsor and supporters described it as an anti-poverty measure that would benefit more than 200,000 families and strengthen work incentives, while committee members asked about the fiscal impact, administration, and interaction with other tax credits. The bill was quickly advanced on a do pass vote. The committee then heard HB 338, which would extend the gross receipts tax deduction for health care providers through 2031 and add co-insurance payments. Health care advocates supported it, but city and municipal representatives warned it would reduce local revenue unless a full hold harmless was added. After extended discussion, the committee rejected a motion to table and instead advanced the bill 9-0 with no recommendation, with several members saying they would not support it on the floor unless local governments were made whole. Finally, the committee heard HB 259, which would create an optional actuarial review process for proposed health insurance legislation through the Legislative Finance Committee. Supporters said it would give lawmakers better data on premium, utilization, and spending impacts before voting on coverage mandates; opponents and some members raised concerns about cost, staffing, data access, and whether the process would be too limited to be useful. After discussion, the committee advanced the bill on a do pass vote. HB 279 was rolled at the sponsor’s request, and the committee adjourned after reminding members about the evening dinner.

Transcript Highlights:

• Representative Anaya: Yes, and explain my vote. Representative Kates: Pass.
• No to table, and I wish to explain my vote.
• We will take a vote to move on the motion for a do pass without recommendation.
• Then I wish to explain my vote.
• My understanding of the process itself is when you vote to table, you can also vote to take it off the

Keywords: 996, all

Transcript Highlights:

• Or is there a crossover that's going to happen within that? Yep. Mr.

Keywords: 989, all

Summary: The committee heard budget presentations for the Department of Administration and the Permanent Building Fund. For Administration, analysts reviewed the agency’s divisions, staffing, dedicated-fund structure, recent budget growth, and the governor’s and JFAC’s recommended changes. The department requested shifts of utility costs from the general fund to dedicated funds, three new positions and funding for Medicaid procurement and contract management, transfers of some positions between divisions, and one-time IT replacement funding. Members also discussed office-space utilization, vacant buildings and land at Chinden and elsewhere, and the department’s efforts to consolidate space and reduce general fund reliance. Director Bailey said the department has reduced or repurposed positions, closed duplicate printing operations, is exploring digital workflows and AI tools, and is trying to move toward a fully dedicated-fund model. He also explained the decision to remove GLP-1 weight-loss coverage from the state health plan due to rapidly rising costs, while noting diabetes coverage remains in place. Committee members questioned the need for higher-level procurement staff for Medicaid contracts, the role of Deloitte and the Department of Health and Welfare in the process, and the status of the MMIS procurement, which Bailey said is currently stayed by the courts after a legal challenge from the second-place vendor. He said the delay will affect MMIS implementation and, in turn, the timing of the broader managed care rollout. Members also asked about vacant state office space, the possible sale of older buildings, and whether agencies such as ITD and Health and Welfare could be moved into state-owned space to reduce lease costs. Bailey said the department is actively working on those facility-planning questions and that agencies at Chinden are paying rent for occupied space. The committee then reviewed the Permanent Building Fund budget, which finances state construction, repairs, and deferred maintenance through dedicated revenue sources and interest earnings. Analysts highlighted the fund’s multi-year project structure, the large deferred maintenance program funded in prior years, and a proposed one-time transfer of $33.75 million in canceled capital project balances to the general fund. They also described a possible redirection of fiscal year 2027 interest earnings to the general fund and a recommended new capital project for an Idaho National Guard readiness center. Administrator Barard reported that the Division of Public Works is managing 595 active projects, with most FY 2025 projects under construction, in design, or complete, and said the division continues to face labor shortages and rising construction costs. Members asked about canceled projects, including the North Idaho reentry center, the Carnegie Library purchase, the ISU pedestrian crossing, the Idaho State Police Lewiston facility, and other projects; staff said some are unlikely to return soon, while others may come back once land or other prerequisites are secured. The committee concluded the hearing and announced it would meet the next day for the Department of Parks and Recreation and the Office of the State Public Defender.

Transcript Highlights:

• someone on the back end at the full rate for what had already been done, or whether there would be a crossover

Summary: The Senate Finance and House Appropriations Committee heard budget presentations for the Department of Administration and the Permanent Building Fund. For the Department of Administration, analysts reviewed the agency’s dedicated-fund-heavy budget, recent staffing and utility adjustments, and FY 2027 requests including three new Medicaid procurement positions, a utilities shift from general fund to dedicated funds, and IT replacement items. Members questioned rising utility costs, office-space utilization, vacant buildings at the Chinden campus and 954 Jefferson, and whether the department was holding vacancies or reducing services. Director Steve Bailey said the department is trying to reduce general fund reliance, consolidate space, repurpose positions, and improve efficiency through digital tools; he also said the department is not intentionally holding vacancies and is actively filling needed positions. A major discussion focused on Medicaid procurement and the transition to managed care. Bailey said the requested procurement staff are needed to handle a large, complex solicitation and ongoing contract management, with legal and federal requirements and an Attorney General attorney assigned to assist. Senators asked about Deloitte’s role, other states’ procurement practices, and why the Department of Administration rather than Medicaid would run the process. Bailey explained that Medicaid provides program expertise while Purchasing runs the procurement. The committee also discussed the MMIS procurement, where Bailey said a court stay is delaying implementation after a second-place vendor challenged the process; he said that delay will also push back the broader MCO rollout. Another topic was the Office of Group Insurance’s decision to drop GLP-1 coverage for weight loss, which Bailey said was driven by rapid cost growth from an initial estimate of about $10,000 annually to roughly $15 million in 2025 and more than $30 million over three years. The committee then heard the Permanent Building Fund budget. Analysts explained the fund’s revenue sources, the multi-year nature of capital projects, and the large deferred maintenance program funded in prior years. They noted a proposed FY 2027 transfer of $33.7 million in canceled project balances to the general fund and a possible one-time redirection of interest earnings to the general fund. The Division of Public Works reported 595 active projects, with most FY 2025 projects under construction, in design, or complete, and said 91% of the $544 million deferred maintenance program is active. Members asked about specific canceled projects, including the North Idaho reentry center, the Carnegie Library purchase, the ISU/INL pedestrian crossing, and the Idaho State Police facility in Lewiston; staff said some are unlikely to return soon, while others may come back once land or a site is secured. The committee also discussed inspection practices, with Public Works saying field representatives and third-party testing serve different oversight functions. No votes were taken during the hearing, and the committee adjourned after announcing the next day’s agenda.