Transcript Highlights:

• So I will highlight how much is in those accounts for our different systems.
• We now have a balance of just over $11.5 million in the account.
• Then the funding deposit account... At 83.27 percent.
• It was paid off years ago from the funding deposit account early.
• They have a relatively new funding deposit account.

Summary: The Public Retirement System Actuarial Committee met on February 23, 2026, approved the December 18, 2025 minutes, and heard no public comment. The committee then reviewed actuarial valuation reports and, for most systems, accompanying experience studies. The actuaries reported generally favorable investment and demographic experience across the systems, with funded ratios improving and employer contribution rates declining in several plans. They also explained the role of funding deposit accounts, frozen unfunded liabilities in some plans, and how recent legislative changes, especially the move to five-year DROP periods in some systems, affected assumptions and costs. For the Louisiana Clerk of Court Retirement Relief Fund, the committee adopted the valuation and experience study, recognizing a fiscal 2027 minimum recommended employer rate of 14.75%. For the District Attorney’s Retirement System, it adopted the valuation and experience study and recognized a fiscal 2027 minimum rate of 3.00%. For the Firefighters’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 25.5%, and noted that DROP balances left on deposit will earn the market rate of return of 11.7%. The committee also adopted the Municipal Employees’ Retirement System valuation for both Plan A and Plan B, recognizing fiscal 2027 minimum rates of 20.75% and 8.75%, respectively. It adopted the Municipal Police Employees’ Retirement System valuation and experience study, recognizing a fiscal 2027 minimum rate of 26.5%, a DROP crediting rate of 7.4%, and a policy range up to 29.35% for future contributions. For the Registrars of Voters Employees’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 0%, and noted a $207,683 allocation to the Member Supplemental Savings Fund for fiscal 2026. Finally, it adopted the Sheriff’s Pension and Relief Fund valuation and experience study, recognizing a fiscal 2027 minimum rate of 7.75%. All motions passed without objection, and the meeting adjourned.

Transcript Highlights:

• </c> HR6 is about restoring accountability. HR6 is about restoring accountability.
• </c> accountability of the governor. accountability of the governor.
• And they want accountability. accountability. accountability.
• Where is the accountability for did. Where is the accountability for that?
• . accountable. accountable.

Transcript Highlights:

• This legislative account, the annual transfer into the account is $8.511 million.
• Bybee, just real quickly, in those legislative accounts, I know that's the House and the Senate account
• out of the legislative account.
• Inactive accounts or sub-accounts from the school district building account.
• sub-accounts.

Summary: The joint House Appropriations and Senate Finance committee met with a quorum and began by recognizing two pages, who each described their plans after serving and what they learned about the legislative process. The committee then turned to year-end cash transfer proposals presented by Keith Bybee, who explained that the packet contained 14 motions tied to balancing the current and upcoming budgets and managing fund balances. The proposals included transferring remaining legislative remodel funds back into the legislative account and reducing legislative transfers in fiscal years 2026 and 2027; moving unobligated money from the Idaho Broadband Fund and inactive school district building accounts to the general fund; and creating flexibility to use the 27th payroll fund only in an emergency. Other items would redirect interest earnings from several funds, including the budget stabilization fund, public education stabilization fund, water pollution control fund, permanent building fund, ARPA-related funds, and Strategic Initiatives funds, with some proceeds going to the general fund, fire suppression deficiency account, or transportation-related purposes. Members asked about balances, obligations, and the meaning of terms like “unobligated” versus “unawarded,” and Bybee said he would verify some figures before the noon meeting. Several members discussed the broader budget strategy, including the rationale for aiming for a $150 million ending balance and whether the committee should rely on reserve transfers versus other budget adjustments. Some members emphasized preserving legislative control over future supplemental spending and providing a roadmap for new committee members, while others noted that the state’s fiscal situation was partly the result of revenue decisions made by the legislature itself. The committee did not vote on the motions during this session and adjourned until noon, when it planned to take action after members had time to review the updated green sheet and follow up on questions.

Transcript Highlights:

• ><c> will</c><00:46:25.600><c> handle</c> fewer accountants that will handle fewer accountants that will
• The Director said most accounting programs do not spend much time on government audit or government accounting
• Computerized accounting doesn't—it’s a leap of faith.
• We heard earlier that the GAAP-based accounting was a challenge GAAP-based accounting was a challenge
• Johnson County has a $38 million cash reserve account. Excuse me, cash reserve account.

Committee: Joint Management Audit Committee

Transcript Highlights:

• the revenue going into the accounts.
• And if we reduce spending this biennium to keep the account solvent, that's all it does: get the account
• the revenue going into the accounts.
• And if we reduce spending this biennium to keep the account solvent, that's all it does, get the account
• A new account that we will be managing, smaller, but a new account that provides, again, some bridge

Committee: House Environment & Energy

Summary: The committee first heard an update on the Model Toxics Control Act (MOTCA) and related cleanup programs. Department of Ecology staff described how MOTCA and the hazardous substance tax fund cleanup, prevention, stormwater, and other environmental work across state agencies, but warned that forecasted revenues have fallen while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require spending reductions to stay solvent this biennium, and that further cuts may be needed if forecasts worsen. Ecology also reviewed the state cleanup process and the scale of the problem, noting more sites are being discovered each year than are being cleaned up. The Pollution Liability Insurance Agency said its dedicated petroleum-tax-funded accounts remain stable, and highlighted its newer financial assurance and heating oil loan/grant programs, while noting concerns about equity for small property owners facing large cleanup liens. Practitioners and stakeholders then offered differing views on how MOTCA should work. One cleanup attorney argued the program has become too slow, expensive, and process-heavy, and urged a more risk-based, collaborative approach with less reliance on conservative assumptions. Environmental and community advocates countered that MOTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, especially in communities of color and low-income neighborhoods that bear disproportionate toxic burdens; they urged stronger funding, tighter scrutiny of tax exemptions and budget diversions, and more accountability for stormwater spending. Port and city representatives emphasized that MOTCA grants are critical for large brownfield and waterfront cleanup projects that support redevelopment, but said long timelines, permitting delays, and funding uncertainty can stall projects and jeopardize existing commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation on wildfire mitigation plans, captive insurance, securitization, and the wildfire response and resilience account. Chelan PUD described extensive mitigation work including vegetation management, grid hardening, undergrounding, AI cameras, weather stations, and partnerships on forest-health projects, and asked the Legislature to restore funding to the wildfire response and resilience account. Puget Sound Energy described similar investments across its service territory, including undergrounding, tree wire, sensors, cameras, weather stations, drones, and public safety power shutoffs, and said wildfire is its top risk. The Office of the Insurance Commissioner summarized a 2022 utility liability market study and a 2025 wildfire mitigation work group, recommending restored community resilience funding, clearer wildfire risk information for property owners, and a grant program based on recognized home-hardening standards. Committee members asked about insurance cancellations, neighborhood-level risk, and whether utilities’ or insurers’ maps are used; the commissioner’s office said insurers generally use their own data and that Washington’s FAIR Plan remains small compared with other states.

Transcript Highlights:

• revolving account.
• year to set up this revolving account for the sitcom piece. ...set up this revolving account for the
• We're just moving it from the Filmed in Oklahoma account over to the sitcom revolving account.
• to pull money from those accounts?
• House Bill 4072 is an accounting bill moving from one state statutory account to another.

Summary: The House considered and advanced a large package of bills, many on joint committee reports, with most measures passing by wide margins and several emergency clauses approved. Early debate centered on HB 4036, which moved $5 million from an existing filmed-in-Oklahoma account to a new revolving fund for the “Bringing Sitcoms Home from Hollywood” pilot program. Supporters said the money was surplus, still controlled by the film office, and intended to create jobs and a strong return on investment; opponents questioned whether the funds should instead go to other state needs and whether the program had enough workforce and infrastructure. The bill passed 53-42, but its emergency failed. The House also passed HB 471, which creates state support for federal “Trump accounts” for children under 18, after debate over federal control, investment risk, and whether the $12.5 million could be better spent on child care, schools, or other services; it passed 61-30 and the emergency failed 62-27. Several education, transportation, and public safety measures then moved through with little or no opposition. HB 4030, described as the education limits bill, passed 93-1 with its emergency. HB 4065 and HB 467 each appropriated $93,000 for security at the Oklahoma School of Science and Mathematics and the Schools for the Blind and Deaf, respectively, and both passed unanimously or near-unanimously with emergencies. HB 4038 directed $5 billion for the eight-year transportation plan and $266,000 for safer school zones; HB 4048 transferred PREP funds to three road projects; and HB 4031 moved up to $41 million into the long-term aerospace and aeronautic stability fund. HB 4047, which used PREP funds for a rural economic development project, fairgrounds upgrades, and university energy improvements, drew the most discussion over whether the spending was truly rural-focused, but passed 81-11 with the emergency approved. The House also approved a series of capital, justice, health, and workforce-related bills. These included HB 452 to buy the Service Oklahoma building it currently occupies; HB 4041 for a two-year trafficking victim pilot program and public safety technology; HB 4056 and HB 4057 for OSBI and narcotics headquarters/warehouse facilities; HB 4044 for current National Board Certified Teachers; HB 4032 on mining fees and agreement language; HB 4034 to raise court reporter compensation; HB 4050 reducing employer contributions while keeping retirement funds growing; HB 4053 and HB 4054 for flagship university capital projects; HB 4072, a public finance/accounting measure involving the Invest in Oklahoma Board and Revenue Stabilization Fund mechanics; HB 4045 and HB 4046 creating military-related funds to support bases and BRAC-proof installations; HB 4040 establishing oversight and a revolving fund for rural health transformation federal money; and HB 4051 clarifying legislative control over the FMAP rate preservation fund. Most of these passed with strong bipartisan support and emergency clauses, and the chamber ended with announcements of committee meetings before adjourning until April 15, 2026.

Transcript Highlights:

• </c><00:48:26.160><c> transparent</c> should be held accountable transparent should be held accountable
• </c><01:13:41.639><c> and</c> standards of accountability and standards of accountability and transparency
• hold charters accountable.
• </c> how they hold authorizers accountable how they hold authorizers accountable and<01:17:51.639><c>
• </c><01:20:54.440><c> is</c> 1994 um and so um the accountability is 1994 um and so um the accountability

Committee: Senate Education Policy

Transcript Highlights:

• accounts.
• The repealed accounts are the climate investment account, the climate commitment account, and the natural
• climate solutions account.
• of the new accounts.
• into the capital account.

Summary: The committee first heard a briefing on the proposed Senate capital budget, Substitute Senate Bill 6003, which would spend about $723 million total using debt-limit bonds, Climate Commitment Act funds, and other cash resources. Staff described major investments in housing and homelessness, human services, local infrastructure, flood response, water conservation and clean energy, K-12 school modernization and seismic work, and higher education projects. Members then took public testimony from a wide range of advocates and project sponsors, most of whom urged the Senate to preserve or increase funding for specific projects in the final budget, including affordable housing, permanent supportive housing, child care facilities, food banks, behavioral health and substance use treatment centers, tribal courthouse relocation, school modernization, community colleges, university projects, floodplain restoration, community forests, and local civic or cultural facilities. Several witnesses also asked the Senate to match or approach House funding levels on items such as the Housing Trust Fund, permanent supportive housing, the Community Forest Program, Floodplains by Design, and CCA-supported clean energy and water projects. The chair noted that amendments to the capital budget were due the next day at noon. The committee then received a briefing on Engrossed Second Substitute House Bill 2251, which would restructure Climate Commitment Act accounts by repealing three existing accounts and replacing them with two new accounts: a CCA operating account and a CCA capital account. Staff explained that the bill would preserve most existing uses while changing revenue distribution formulas, capping Ecology administrative costs, expanding allowable uses for EV-related costs, housing, and carbon capture/sequestration, and changing reporting and tribal consultation provisions. The bill also shifts some reporting from annual to biannual and modifies the thresholds for tribal-supported and overburdened-community investments. The fiscal note was described as relatively small, with the main impact being the revised revenue allocation structure. Public testimony on the CCA bill was mixed. Supporters, including the League of Women Voters, said the restructuring better aligns spending with the intent of the CCA and could improve investments for tribes and overburdened communities. Critics, including the Washington Policy Center, argued the bill still lacks strong requirements to ensure CCA spending is effective and objected to reducing the frequency of the state’s climate-spending report. No votes were taken during the portion of the meeting provided.

Transcript Highlights:

• Welcome to the Assembly Budget Subcommittee on Accountability and Oversight.
• We can't have an honest conversation about accountability if state agencies are not... are held accountable
• Accountability website has, which is just people served.
• Do you feel that you've gotten a full accounting?
• dollars for people who are not accountable and and when I say accountable I don't mean just give us some

Transcript Highlights:

• </c> access some of their dedicated accounts access some of their dedicated accounts to<00:14:56.440>
• The game management account is also a dedicated account in 206:34-b, and the way that account works,
• I do not know what account they're in in our department. They're not in any account.
• I do not know what account they're in in our department. They're not in any account.
• I do not know what account they're in in our department. They're not in any account.

Summary: The Finance Division II work session focused on Fish and Game’s budget-revenue proposals and several statutory changes the department said it needs to support its operations. The department recommended raising the fisheries habitat fee and wildlife habitat fee to $5 each, estimating additional annual revenue of about $640,000 and $144,000 respectively. Members clarified that these are habitat fees added on top of licenses, not reduced by senior or youth license categories, and discussed the need for RSA changes to allow the revenue to be transferred into the Fish and Game Fund. The department also said it would work internally on any broader license fee increases through the commission process. The committee then reviewed proposals to cap several dedicated accounts and transfer excess balances to the unrestricted Fish and Game Fund. Those accounts included the fisheries and wildlife habitat funds and the game management account, with the department proposing a $750,000 cap on each and transfer of amounts above that threshold. The department said the cap was based on several years of expenditures and the fact that dedicated funds are often used as match for federal funds. Members asked for reports on fund activity and questioned whether the cap and mandatory transfer language should be “shall” or “may,” with the department indicating it would prefer “may” for flexibility. The committee also discussed a Pheasant Management Program account, where the department said current law limits use of the money to buying and propagating pheasants and it wants authority to use it for broader program management. A substantial portion of the meeting addressed Fish and Game’s environmental review unit and the transfer of ARPA-funded positions to DEES under the governor’s initiative. The department said four positions are currently ARPA-funded, that DEES supports keeping them in place through the end of the year, and that the transition will require time because environmental review work is intertwined across the agency. The department explained that before the ARPA positions, biologists handled the work and that current staffing has helped eliminate a backlog and meet deadlines. Members also discussed a proposal to expand environmental review fees beyond private developers to state, federal, municipal, and local governments, with the department saying it would need rulemaking and stakeholder input. Additional requests included authority to conduct raffles to raise funds, creation of a revolving account for donations and raffle proceeds, and repeal of the obsolete fish food sales statute because the vending machines are no longer functional and the account generates no revenue.

Transcript Highlights:

• While it appears on the financial statements as revenue, this account is not a fee-driven account.
• account.
• in this umbrella account.
• has an account within this umbrella<00:25:13.120><c> account.
• That's the RIMS account.

Summary: The Joint Committee on Dedicated Funds met to review the House budget provision that would impose a 5% administrative charge on a broad list of dedicated funds, with some exemptions. Members discussed the House approach versus the Senate’s more general approach of leaving the governor discretion over which funds could be charged. The chair explained the committee was hearing from agencies about any legal, contractual, or practical reasons their funds should be exempt, and the agenda was expanded to include several departments and written submissions from others. The Department of Education testified first, identifying several funds it said should be exempt: a printing revolving fund that is funded by transfers rather than fees; teacher certification, which is self-funded by educator licensing fees and would require an immediate fee increase if charged; a vending stand set-aside tied to the federal Randolph-Sheppard program and subject to federal approval and vendor committee procedures; and a public school infrastructure/safety account, where most revenue is transferred from the education trust fund or general fund rather than generated by fees. Members questioned the department about the effect on school safety projects and whether the fee would simply reduce the number of projects completed each year. The Veterans Home asked for exemptions for three funds: a donation benefit account used for recreational activities and quality-of-life expenses for residents, a small memorial trust fund whose interest supports veteran activities, and a resident member account that holds veterans’ personal income such as Social Security and pensions. The department argued the charge would reduce donations, cut services, and effectively function like an income tax on vulnerable veterans. The Banking Department also requested exemption for its consumer credit administration license fund, saying it is used to keep exam fees low and is expressly intended by statute to reduce costs on regulated businesses; it said the 5% charge would undermine that framework and could eventually force higher fees. The Department of Justice began testimony on its dedicated funds, starting with the medical legal investigative fund, which pays for death investigations and related services under statute and without general fund support. No votes or final actions were taken in the portion of the meeting provided; the committee mainly heard testimony and asked questions about the practical and legal effects of applying the administrative charge.

Transcript Highlights:

• More than one account can be designated as an independence account that can be funded with employment
• when the money is withdrawn, but independence accounts are different than an ABLE account.
• Can you elaborate what is an independent account or this account that we're talking about?
• ,' or 'I want these two accounts of mine to be my independence accounts.'
• And then DHS would approve those accounts and document those accounts.

Summary: The committee reviewed a series of Arkansas Department of Human Services and Department of Health rules, with most items receiving no objection. DHS Medical Services presented a rule to restore continuous glucose monitors to Medicaid durable medical equipment and pharmacy benefits after addressing provider concerns, and another rule to allow hospitals to bill at a rehabilitation level of care when patients are receiving only rehab services in an acute-care setting, while also moving Medicaid utilization management review from day 4 to day 7 for most hospitals and day 10 for rehab hospitals. Members questioned whether the rehab rule could lead to children being sent out of state, but DHS said the intent was to keep patients in-state and reimburse appropriately; the rule was reviewed without objection. DHS also presented PACE program updates to align with federal requirements and Act 144, and a separate personal care manual rewrite that would replace the Arkansas Independent Assessment with a claims-based medical eligibility review by Optum, clarify hourly service flexibility, and comply with Acts 625 and 853; both were reviewed without objection. The committee then heard a Medicaid eligibility rule from DHS County Operations that excludes foster care/adoption subsidy income for certain eligibility groups, clarifies treatment of 529 accounts, tax refund interest, and independence accounts for workers with disabilities, and carries an estimated fiscal impact of $485,000 in year one and $586,000 in year two. Members asked about account limits and how the independence accounts work; DHS explained they must be established while the person is in the workers-with-disabilities category and can continue to be excluded in other Medicaid categories, with no cap on deposits. The committee also reviewed a permanent DHS mental health rule allowing general or medical-surgical hospitals to operate adolescent substance abuse units and bill Medicaid, following an emergency rule approved in June. DHS said the first such unit had opened at Unity in Searcy, with no other hospitals currently in the pipeline, and members discussed follow-up care, grant support, and the use of existing hospital infrastructure. Finally, the Department of Health presented an annual update to the controlled substances list, adding substances tied to Act 934 of 2025 on intoxicating hemp and other DEA/Arkansas concerns, with no public comments received. Health also proposed repealing the separate synthetic marijuana products rule because those substances are already covered by the controlled substances list. Both Health items were reviewed without objection, and the committee adjourned after completing its agenda.

Transcript Highlights:

• :04.400><c> accountability.
• </c> went to local accountability and action. went to local accountability and action.
• </c> assessment of an accountability model. assessment of an accountability model.
• </c> accountability model for those folks. accountability model for those folks.
• </c> big part of our accountability model. big part of our accountability model.

Summary: The Interim Joint Committee on Education met for its first interim meeting and established a quorum before taking up its first topic, Kentucky’s new assessment and accountability model. Commissioner Robbie Fletcher, joined by KDE staff and superintendents, described a multi-year effort involving the Kentucky “Now We Learn” Council, more than 50 educators and stakeholders, at least 18 pilot districts, surveys, focus groups, town halls, and four prototype frameworks. He emphasized three priorities for the new model: vibrant learning experiences, innovation in assessment, and collaboration with communities. Fletcher said the state accountability portion would continue to meet federal requirements and identify CSI/TSI/ATSI schools, while shifting toward more emphasis on individual student growth, grade-level equivalency in reading and math, career and technical education, graduation rate, and English language proficiency. He also said science would remain a required assessment but be reported separately rather than counted in the CSI/TSI calculation. He stressed that the model should focus on growth, local flexibility, and meaningful measures that reflect community expectations, while still preserving a statewide framework. The committee also heard from Bullitt County superintendent Jesse Bacon, who described his district’s local accountability work. He said Bullitt County formed a community coalition with broad representation from across the district, business leaders, and community members, met six times during the school year, and worked toward a public-facing dashboard that would show community expectations, evidence of accountability, and areas for improvement. Bacon said the district identified six community-defined pillars, beginning with student learning and foundational academic knowledge, as part of a system intended to communicate strengths and improvement areas to the public.

Transcript Highlights:

• This bill also improves the accountability system by modifying the accountability refresh process so
• A data and accountability nerd.
• First, on accountability.
• To review assessment items and accountability indicators, and we strongly urge that the accountability
• Educators are not afraid of accountability.

Bills: HB8

Committee: House Public Education

Transcript Highlights:

• We do use an outside accountant.
• It goes into the bank accounts. It's accounted for.
• Accounting is cost basis.
• After receiving allegations of missing funds, the district court bank account and accounting records
• The district court bank account and accounting records were not maintained in accordance with Arkansas

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• accounting law, Arkansas Code 14-59-101 through 119.
• Bank accounts were not reconciled monthly.
• Bank accounts were not reconciled monthly.
• In our general fund, we have two CDs, we have a savings account, and we have a checking account.
• In our general fund, we have two CDs, a savings account, and a checking account.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• You can own and control your account. You get to decide how your funds are used.
• You can own and control your account. You get to decide how your funds are used.
• And with a MoABLE account, that does not apply.
• You keep it on hand and now you’re eligible for a MoABLE account.
• What are they like the fiduciary holders of the accounts?

Committee: House Veterans and Armed Forces

Transcript Highlights:

• . accounts. accounts.
• </c> accountability issue. accountability issue. &gt;&gt; Accountability. &gt;&gt; Accountability.
• So how we going to hold them accountable? accountable? accountable?
• </c> held accountable to. held accountable to.
• accountable? accountable?

Transcript Highlights:

• The first accounting unit actually is the public specialty account, and that is the account that we use
• Account 2120 is the main account in public affairs. It houses most of the people in the account.
• We have the game management account, which also is a dedicated account.
• So this account has been around for many, many, many years, and it’s a dedicated account.
• So this account has been around for many, many years, and it’s a dedicated account.

Summary: The committee heard a presentation from the University System of New Hampshire chancellor on the system’s budget, enrollment, finances, workforce role, and response to federal policy changes. The chancellor said the governor’s recommended budget would reduce university system funding by about $16.5 million over the biennium, or roughly 8.3%, and asked that state funding be held at the governor’s level. She described planned cost reductions already underway, including lower headcount, reduced benefits and retirement contributions, property sales, and lease reductions, and said the system expects to remove about $20 million from its cost structure in fiscal year 2026. A large portion of the discussion focused on enrollment and finances. The chancellor said fall 2024 enrollment was about 23,000, with New Hampshire enrollment increasing for the first time since 2013, and noted that the system remains a major workforce pipeline, with about 3,000 graduates entering the state workforce each year. She explained that net tuition has fallen over time because of declining enrollment and increased financial aid, while research grants and contracts have grown significantly. She also walked through endowment funding, explaining that payouts are based on a 12-quarter rolling average and are intentionally smoothed to reduce volatility; members asked for follow-up information on payout comparisons, administrative salaries, headcounts, and compensation per student. Members questioned the university about the relationship between state support, tuition, endowments, and research spending. The chancellor said the system has used state capital support to leverage major investments, including the UNH Life Sciences building, Plymouth’s Hyde Hall, and the Olson Advanced Manufacturing Center, and described partnerships with businesses such as Lonza and regional manufacturers. She also explained a long-running New Hampshire 529-related revenue stream that has built endowment support for scholarships, and said the system’s endowment now totals about $988 million. In response to questions about possible cuts, she said the system is considering academic program sharing, consolidation of specialties, online delivery, AI-assisted administrative efficiencies, and footprint reductions, but declined to name specific programs. The committee also discussed DEI-related issues and federal grants. The chancellor said the system is reviewing executive orders and a U.S. Department of Education Dear Colleague letter, and that general counsel is working through websites, programs, and more than 1,200 federal grants to ensure compliance. She said the system spends about $3 million on what it calls DEI-related offices and services, but emphasized that these services include disability support, veteran support, Title IX, ADA, and employment-law compliance, and that the system does not have race-based programs, separate housing, or separate graduation ceremonies. She reported that the system had received stop-work orders on four federal grants totaling about $700,000 and warned that reductions in federal direct or indirect costs could affect research, jobs, and innovation.

Transcript Highlights:

• Because you want that accountability.
• So this bill is about accountability. It's about accountability to the people of Minnesota.
• It's about accountability.
• ><00:03:31.360><c> of</c> accountability to the people of accountability to the people of Minnesota.<
• ><c> think</c><00:14:30.240><c> is</c> accountability, which I think is accountability, which I think

Summary: The committee took up House File 2037, which would replace the current executive board model for Direct Care and Treatment with a commissioner-led structure. Representative Frederick moved the DE1 amendment, which was adopted, to conform the bill with Senate language and place the CEO under the commissioner. Frederick said the change was intended to preserve some continuity while increasing accountability and insulating direct health care services from politics. Frederick argued that the existing executive board, which meets only a few times a year and hires the CEO, would leave the legislature and governor with limited ability to respond quickly to serious problems in a billion-dollar agency. He said the bill is about accountability to Minnesota taxpayers and creating a structure more like other state agencies. Public testimony was closed without any outside witnesses. Members discussed the tradeoffs between board governance and a commissioner model. Chair Schumacher noted Frederick would become chief author of the bill, and several members said they appreciated the effort to balance accountability, continuity of care, and operational expertise. Questions focused on the role of the advisory council; Frederick said it would remain in place so stakeholders could advise the commissioner and CEO, and that legislators are included among its members. The committee then laid over House File 2037, as amended, for possible inclusion in a later bill.