Transcript Highlights:

• Change from origination-based taxation for grocery seats versus destination-based.
• Based on Rystad Energy's U-Cube data.
• Reduction, we might have a loss in revenues.
• So we're creating a base minimum wage in this industry.
• Based on actual results that we're seeing.

Transcript Highlights:

• And then those low-wage employers don't provide health care at all.
• Again, based on health care income of California families. ...a spending target at 3%, again, based on
• Underlying costs, I think of them as like the base ingredients.
• Starting in 1965, I believe all providers were a cost-based model.
• It has to be based upon our whole team.

Transcript Highlights:

• The minimum wage.
• to minimum wage or above.
• We've ended sub-minimum wage. No one's paid sub-minimum wage in California.
• The new sector set minimum wages in.
• It's a pretty straightforward, simplistic answer, and equity is not just Based on race, it can be based

Transcript Highlights:

• This is about a 10% reduction in technical assistance and about a 70% reduction in funding for a recent
• Last sort of in the reductions category, there are some kind of global reductions that you will see.
• There's a 2% reduction to near-general-fund-funded WMS and EMS staff, as well as a 5% reduction to administrative
• If reductions and partial COLA funding hold, colleges face program eliminations, further staffing reductions
• The governor's budget proposes an additional $29 million reduction on top of the $24 million reduction

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care

Transcript Highlights:

• the Washington Industrial Safety and Health Act, the Wage Payment Act, the Minimum Wage Act, and the
• What is a wage complaint?
• constitutes a wage complaint?
• Yeah, so a wage complaint is under the Wage Payment Act and the Minimum Wage Act.
• There is this reduction in... There is this reduction in the use of the preference.

Summary: The committee met on July 15, 2026, but initially lacked a quorum, so it could not adopt prior minutes. Chair Jerry Pollett welcomed new member Senator Victoria Hunt and new JLARC staff, and noted national recognition for recent JLARC reports. The meeting then moved into a series of preliminary audit presentations and an agency strategic management update, with committee members asking questions after each item. JLARC presented a preliminary audit of DCYF’s Juvenile Rehabilitation programs. Staff concluded that crowding, staffing shortages, weak risk assessments, and inconsistent programming combine to create unsafe conditions. The report found that most youth are housed in two large secure facilities operating near or above capacity, incidents rise as population rises, 47% of frontline staff leave within a year, current assessment tools are not valid for the population, and program access depends more on facility than individual need. JLARC made one recommendation to the legislature to address crowding and seven to DCYF, including improving retention, training, incident response procedures, validated assessments, program alignment, and data quality. DCYF Secretary Ross Hunter said the agency agreed overcrowding is a serious problem, described ongoing efforts to improve staffing and safety, and said a detailed response would be provided later. Committee members raised concerns about education access, retaliation against staff or youth who participated in the audit, and whether JR-25 has helped or worsened conditions. JLARC then presented a preliminary audit of Labor and Industries’ enforcement of farm worker labor laws. The audit found that L&I generally meets inspection timelines for health and safety complaints, but not for wage and hour or retaliation complaints, where delays are driven largely by time before assignment to an investigator. Staff said complaint volume exceeds capacity, though the agency has added staff, created screening processes, and reorganized workloads, and 2026 legislation now allows prioritization of complaints and broader investigations. JLARC recommended that L&I report back in December 2026 and December 2027 on backlog reduction and implementation of the new law. An L&I representative said the agency is hiring additional staff and will provide a formal response later. The committee also received a JLARC overview and Department of Health strategic management plan update on hospital data reporting, inspections, complaints, and adverse event reporting. DOH reported measurable progress on inspection compliance, new staffing and licensing systems, translated complaint forms, and plans for future work on language access, adverse event reporting, and financial data dashboards. After lunch, JLARC began its 2026 tax preference performance reviews. The first review covered the Main Street tax credit, which JLARC said has helped increase the number of Main Street communities and businesses, with positive growth near designated districts; JLARC recommended continuing the preference and improving business-count data. The second review covered the equitable access to credit program, which JLARC said appears to support underserved communities by funding loans through CDFIs; JLARC recommended continuing the preference beyond its 2027 expiration. The committee began questions on the program mechanics and the role of the Community Reinvestment Act, and the presentation was still underway when the transcript ended.

Transcript Highlights:

• Representative Bray then asked whether there was any thought on minimum wage.
• </c><00:07:24.080><c> so</c> at kciw earn a prevailing rate wage so at kciw earn a prevailing rate wage
• The witness said it would be similar to a wage withholding order.
• </c> rate um certainly evidence-based rate um certainly evidence-based programming<00:13:23.720><c> and
• </c> they set that up or or is it like a wage they set that up or or is it like a wage withholding<00

Summary: The Budget Review Subcommittee on Justice, Public Safety, and Judiciary heard an update from the Department of Corrections on Kentucky Correctional Industries (KCI), sentence-credit payments for program completion, and the expansion of the Little Sandy Correctional Complex. Department officials said KCI, the department’s long-running re-entry program, operates 15 industries in 11 institutions, employs more than 400 inmates and 37 staff, and had $5.8 million in expenditures against $6.8 million in revenues through January 31. Members asked about inmate pay, the role of the Prison Industries Enhancement Certification (PIE) program, and whether KCI generates profit; the department said it aims to break even while supporting state government, with PIE participants earning prevailing wages and some programs offering certificates tied to post-release employment opportunities. The subcommittee also reviewed the budget-authorized sentence-credit program for county jails. Officials reported 37,300 program completions in fiscal year 2024 and, through January, $6.128 million paid for 90-day sentence credits and $1.6548 million for 60-day credits, with total county jail expenditures of $8.1 million and 67 jails participating. They said additional participation would require more funding and that they do not expect many more jails to join, though attendance and population levels can affect costs. Members asked how jails opt in, whether there are added costs, how inmate earnings are handled, and whether deductions are made for child support or victim compensation; the department said jails apply through an approved program matrix, inmate earnings are tracked in individual accounts, and required deductions are made when ordered. Questions from members focused on re-entry outcomes and program structure. Officials said evidence-based programming and employment opportunities are major contributors to lowering recidivism, and they cited a recent recidivism rate of 30.8 percent, down about 1 percentage point, while noting they would provide additional trend and savings data later. The department also clarified that adult education and GED programming are separate from KCI and are handled by a different education division. For the Little Sandy expansion, officials said the project remains on schedule for completion on June 25, 2025, with inmate transfers expected to begin at about 50 per week and roughly 200 additional staff eventually needed; they said hiring is being phased in as inmate population increases. The committee asked for the total construction cost of the expansion, which the witnesses said they did not have at the meeting and would report back. The meeting adjourned with the next meeting set for February 18.

Transcript Highlights:

• It would be based upon our growth as a state. It would be based upon our growth as a state.
• If we were to expand the base, like we're talking about, right?
• Yeah, so first of all, it's not a reduction of $8.5 billion. It's a reduction of 4.7%.
• So we could increase the sales tax based on your language.
• of 100th of 1% up to a maximum reduction. ...of one-hundredth of one percent up to a maximum reduction

Transcript Highlights:

• We know that workers lose about $2 billion in wages to wage theft every year.
• assess any exemptions based on operational needs.
• What was this based on? What was it based on to go from two to four days?
• So that's a 90% reduction in the...
• not be cut at all and only our wages.

Transcript Highlights:

• As a result, both of those municipal facilities see about 20 to 25% less in wages and benefits.
• A worker who loses their job as part of a larger employer-initiated layoff or reduction in force plan
• in force plan while not losing their eligibility based on quitting their job.
• ETS announced a company-wide restructuring and planned reduction in force.
• Reductions in force are common at companies with large concentrations of workers in Washington.

Summary: The Labor and Workplace Standards Committee held its first meeting of the session and heard four bills. HB 2107 would make permanent and slightly narrow a temporary L&I requirement that, after an on-site safety inspection at a building construction site, the agency make a good-faith effort to notify the owner or employer within 10 working days if an immediately identified hazard could injure a worker. Construction industry groups and L&I supported the bill and said the pilot had worked well, with L&I reporting it had been able to notify owners almost 96% of the time during about 1,400 inspections. HB 2137 would remove the population threshold for binding interest arbitration for correctional employees in city and county jails. Teamsters representatives said the change would give corrections officers in smaller jurisdictions the same bargaining rights as other uniformed personnel and help address safety, staffing, and wage inequities. County representatives opposed the bill, saying it would increase bargaining and compensation costs for many counties, and asked for amendments requiring arbitrators to consider county finances and making awards nonbinding on county legislative authorities. HB 2264 would clarify unemployment insurance eligibility for workers who opt into an employer-initiated layoff or reduction-in-force plan, even if they can rescind their decision, so long as the termination results from the employer’s plan. Supporters said current court rulings create confusing and unfair denials of benefits for workers who leave in good faith during layoffs; NFIB raised questions about severance, retirement, and UI solvency. HB 2243 would allow physical therapists and occupational therapists to serve as attending providers in the workers’ compensation system. Physical therapy and occupational therapy advocates said this would speed care and return workers to work sooner, while retailers, food industry representatives, NFIB, the Washington State Medical Association, and L&I raised concerns about diagnosis, scope of practice, added costs, and the possibility that all PTs and OTs would have to join the provider network. No votes were taken; the committee heard testimony and then adjourned.

Transcript Highlights:

• is another $44 million reduction.
• wage jobs.
• So, is that a livable wage? Anymore, so what happens when you got a $21 wage?
• Do you see any reductions?
• based on that bill from last year.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• We are concerned with Running Start reductions.
• Participants experienced a reduction in arrest recidivism and a reduction in emergency room recidivism
• not the House budget reduction of $2.5 million.
• and other DDCS administrative reduction cuts.
• Providers have already implemented 2026 wage increases, many through collective bargaining based on funding

Bills: SB5998

Committee: Senate Ways & Means

Keywords: fiscal appropriations, budget, state funding, financial management, operating expenses

Transcript Highlights:

• Together, these two changes would result in a 10% rate reduction since September 2025.
• Medicaid reimbursements do not automatically adjust for wage growth or inflation.
• This bill appears to be based on a false premise.
• Medicaid supports and community-based care remain stable, independent, and housed.
• that have rates developed based off of cost surveys today.

Committee: Senate Health and Welfare

Transcript Highlights:

• the hourly minimum wage.
• We first and foremost have to be talking about wages.
• Right now, wages for IHSS vary across the county.
• The average wage being $18.20, which is far below the estimated necessary living wage of $28.72, according
• Explore the impact of differential wages.

Summary: The Assembly Budget Subcommittees held a joint hearing on older adults and long-term care supports and services, with members and witnesses focusing on the growing “forgotten/overlooked middle” of Californians who are too wealthy for Medi-Cal but unable to afford long-term services and supports (LTSS). Administration witnesses from DHCS and the Department of Aging described Medicare’s limited long-term care coverage, Medi-Cal’s role for low-income residents, and ongoing state work on LTSS financing, including a 2024 financing initiative and a final report due in 2026. Testimony emphasized rising costs, caregiver shortages, homelessness among older adults, and the need to preserve home- and community-based services to avoid more expensive institutional care. Several advocates urged immediate action, especially Medi-Cal share-of-cost reform, housing supports, and protection of HCBS funding. Members asked for the most urgent budget priorities and were told to focus on share-of-cost reform and assisted-living rate protections, along with broader system navigation and caregiver support. The committee also heard testimony on the Community-Based Adult Services (CBAS) program. CDA reported that CBAS serves about 42,000 participants through 304 centers, with demand generally stable but geographic gaps in some regions and staffing challenges after the pandemic. DHCS explained a rate-setting issue: a 10% CBAS rate increase had been mistakenly posted on the Medi-Cal fee schedule in 2024, and while Proposition 35 later made the targeted SB 159 rate increase inoperative, DHCS said any repayment by managed care plans would depend on contract terms and the department would not require clawbacks. CBAS providers and advocates warned that the program is in a financial crisis, with six center closures since June 2024, and requested $74.8 million ongoing General Fund to close about half the gap between current reimbursement and costs. Members expressed concern that clawbacks could accelerate closures and noted the program’s role in preventing institutionalization and supporting family caregivers. In the final panel, CDSS presented on In-Home Supportive Services (IHSS) provider recruitment and retention and on the AB 102 statewide bargaining report. CDSS said the IHSS Career Pathways program has concluded successfully, with more than 59,000 providers completing training, and that the AB 102 report—based on workgroup meetings and consultant analysis—will be sent to the Legislature shortly. The department said the workgroup viewed statewide bargaining as more viable than regional bargaining, but identified major issues around consumer participation, county fiscal impacts, administrative responsibilities, and the need to define bargaining scope in statute. CDSS estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Provider unions supported statewide bargaining, arguing it would improve wages, benefits, and workforce stability, while county representatives said any statewide model should preserve consumer focus, protect county finances and realignment funds, and keep core administrative functions with local public authorities. The hearing concluded without votes, with members requesting additional follow-up information and urging continued engagement ahead of the May revise.

Transcript Highlights:

• We are concerned with Running Start reductions.
• Participants experienced a reduction in arrest recidivism and reduction in emergency room recidivism.
• Go with the state, the Senate budget reduction of $2 million and not the House budget reduction of $2.5
• and other DDCS administrative reduction cuts.
• Providers have already implemented 2026 wage increases, many through collective bargaining based on funding

Summary: The committee held a public hearing on the Senate operating budget proposal, beginning with a staff briefing from James Kettle. He described the budget as built on relatively flat revenue after multiple forecast updates, with substantial mandatory cost growth, especially in Health Care Authority, DSHS, and DCYF. He highlighted major policy-level additions and savings, including large tort liability costs, continued support for long-term services, reductions tied to child care and K-12 items, several assumed revenue bills, and major transfers from reserves and other accounts. Kettle also noted the four-year outlook remained positive overall, with about $1 billion ending fund balance in the final year and roughly $3 billion in total reserves. A committee member asked about a diagram showing the loss of federal funds, and staff said they would follow up. Public testimony then focused first on K-12 education, where school leaders, teachers, OSPI, PTA, and rural district representatives largely opposed the proposed cuts to local effort assistance, transition to kindergarten, bus depreciation, and related school funding items. Many argued the reductions would disproportionately harm rural and property-poor districts and weaken early learning access, while several students and educators spoke in favor of career and technical education and IT Academy funding. The committee also heard support for wildfire prevention funding from the Commissioner of Public Lands, who thanked the Senate for restoring those dollars but raised concerns about recreation program reductions. Higher education testimony was mixed but generally supportive of the Senate proposal compared with the governor’s budget. Community and technical college leaders warned that the budget still shifts compensation costs to tuition and reduces Running Start funding, while university representatives from Western, Eastern, Central, WSU, and UW thanked the committee for avoiding deeper cuts. Private vocational college students and administrators urged extension of Washington College Grant eligibility for students already enrolled, and others asked to preserve IT Academy and related certification funding. In early learning, child care and advocacy groups praised the decision not to cap Working Connections Child Care but warned that child care and transition to kindergarten still bear a disproportionate share of cuts; they also requested continued support for Dolly Parton Imagination Library and Pierce County early childhood programs, including Family Connects. The hearing continued with testimony on employee compensation, mental health, and human services. State employee and retiree groups supported the budget’s COLA and wildfire funding but objected to cuts in retiree health benefits. Behavioral health and public safety advocates supported mentoring, Trueblood-related funding, crisis stabilization, and the Recovery Navigator Program, while others opposed reductions to those programs and to community-based recovery services. In human services, witnesses thanked the committee for funding victim services, child welfare supports, health homes, adult day care, community health centers, energy assistance, and disability services, while urging the committee to avoid further reductions to skilled nursing, case management, and recovery navigation. No votes were taken during the hearing.

Transcript Highlights:

• So that's why we do jail-based restoration.
• It's not county-based. It's not jail-based. And so it's not in the jail.
• So, based on our most recent staff stability survey, 2024 data, the direct support professional wage
• We did a refresh focused on wages because getting to that $15 wage was very, very important.
• The reductions included in this item, there are offsets with the fund-swap new decision item and a reduction

Summary: The Budget Committee heard the Department of Mental Health’s FY 2027 budget presentation, with Director Valerie Hoon outlining a $4.4 billion department budget, including $1.7 billion in general revenue, and describing the department’s roles in substance use, behavioral health, and developmental disabilities services. Early questioning focused on marijuana-related mental health impacts, but the main discussion centered on the department’s new decision items, funding sources, and expected wait lists. The director explained several increases tied to Medicaid growth, mental health youth services, outpatient competency restoration, crisis residential services, developmental disability waivers, and provider tax adjustments, along with offsets such as reduced wraparound funding at the Kansas City Assessment and Triage Center and cuts to some youth and self-directed DD services. A major portion of the hearing focused on competency restoration for people found unfit to stand trial and currently held in county jails. Members pressed the department on the cost, effectiveness, and legal implications of keeping people in jail while awaiting services, noting a reported wait list of roughly 524 to 538 individuals and average holds of about 14 months. The department said it currently has eight outpatient competency restoration beds in the community, is seeking funding for 50 additional outpatient slots, and also operates jail-based restoration for about 40 people at a time. Members repeatedly asked for breakdowns of violent versus nonviolent cases, success rates, cost per person, and the split between state and federal funding, while the department explained that Medicaid can cover only the treatment portion, not residential housing or other non-billable costs. The committee also discussed broader capacity constraints in state hospitals and developmental disability services. Hoon said Fulton, Center for Behavioral Medicine, and FTC North are full, with 183 vacancies across the department, and that the department is working on a new Kansas City hospital that would add 150 beds, though completion is now expected closer to 2029 or 2030. In the developmental disabilities section, the department warned that the governor’s recommendation would create wait lists for in-home waiver services and crisis residential services, and members questioned proposed reductions to self-directed services rates and other provider payments. No votes were taken, and the committee recessed before finishing the presentation.

Transcript Highlights:

• Line five includes a reduction<00:11:54.000><c> for</c><00:11:54.399><c> for</c> reduction for for reduction
• ><c> 40</c> million in 2627 and a reduction of 40 million in 2627 and a reduction of 40 million<00:13
• On line 231, there is a reduction from base for the Pathways to Prosperity Program of $2,858,000 in 2026
• </c> workforce development fund base funding. workforce development fund base funding.
• </c> extended employment services reduction extended employment services reduction of<00:25:40.000><c

Transcript Highlights:

• It's been growing more than two times the rate of the median wage wages that workers are earned. the
• rate of the median wage wages that workers are earning.
• It's based on different factors, but it's not their full wage.
• Zero-based budgeting.
• The reductions we see, and there are reductions. I want to be candid about that.

Bills: SB6061 , SB6234 , SB6170 , SB6176 , SB6182 , SB6335 , SB5647 , SB6047 , HB2367 , HB2606 , SB5998 , SB6005 , SB6003 , SB6129 , SB6225 , SB6228 , SB6231

Summary: The Senate met on February 23, 2026, opened with the usual roll call, pledge, prayer, and approval of the previous journal. Members then adopted Senate Resolution 8698 recognizing piano teachers, with several senators sharing personal remarks about their own teachers and the role of music education in families and communities. Guests from the Washington State Music Teachers Association and the National Guild of Piano Teachers were recognized in the gallery. The chamber then moved into budget debate, considering a series of amendments to the operating budget. Several proposals focused on housing costs, local planning, utility rates, and state spending restraint. Amendment 0772, which would have created a housing-related task force and increased funding, was rejected after debate over housing affordability and regulatory costs. Amendment 0785, restoring growth management planning funding for local governments, was also rejected. Amendment 0791, directing the Department of Commerce to study the effects of climate and clean energy laws on utility costs, and Amendment 0769, related to grid capacity and clean energy investments, were both adopted. Other amendments drew sharper partisan debate. Amendment 0798, which would have reduced the Supreme Court from nine justices to five and redirected savings to public defense, failed. Amendments 0794 and 0795, seeking funding for ballot measure costs tied to initiatives, also failed. Amendment 0799, intended to redirect Pacific Tower lease savings to developmental disability services, was rejected after discussion of the building’s current public uses. Amendment 0773, capping state spending growth and tying it to median wage growth, failed on a roll call vote, while Amendment 0777, addressing concurrent use of paid family and medical leave and sick leave by state employees, also failed after extended debate. Later, Amendment 0776 on tort liability reporting was adopted, as were Amendment 0758 creating a DSHS work group on community-based services for people with intellectual and developmental disabilities, and Amendment 0786 was introduced to reduce cash and food assistance work-related funding, with debate beginning before the transcript ends.

Transcript Highlights:

• And wages do in fact continue to rise.
• Higher wages and more people in sources.
• And wages do in fact income taxes.
• </c> driven by higher forecasts for non-wage driven by higher forecasts for non-wage income<00:15:03.839
• </c> wages, and possibly higher employment. wages, and possibly higher employment.

Transcript Highlights:

• This adjustment will further erode their wages.
• This adjustment will further erode their wages.
• reimbursement model which has based reimbursement model which has increased<01:02:57.599><c> wages</
• We couldn't find staff because the wages were so low and everyone recruited had better options.
• Thank you. wage and benefit increases for the wage and benefit increases for the critical<01:31:02.199

Committee: House Human Services Finance and Policy

Transcript Highlights:

• , temporary reductions related to Executive Order 2025-02.
• Wage growth is moderating. I'll show you that in just a minute.
• You see that wage growth continues to look very robust.
• But total income has moved faster than wages and salaries.
• So a lot of that is based on the population numbers.

Summary: The committee was convened to review Idaho’s economic outlook and general fund revenue projections for fiscal years 2025-2028, with members instructed to submit “homework” revenue estimates by noon the next day so staff could compile committee averages and medians for deliberations and a final recommendation to JFAC. Opening remarks emphasized the committee’s constitutional charge, the use of the binder materials and online packet, and that the committee would meet again the next day to discuss and vote on the revenue projection recommendation. Staff and agency presentations focused on the state’s budget and revenue picture. Legislative Services Office staff described structural imbalance concerns, noting that statutory spending changes and earmarked sales tax distributions have crowded out flexibility, while cash reserves remain substantial. The Division of Financial Management’s economist explained the official revenue forecast, including revised treatment of sales tax and tax relief fund accruals, and said the forecast largely held steady overall even as corporate and individual income tax categories shifted. She also discussed the impact of the federal One Big Beautiful Bill Act on SALT deductions and said recent corporate collections had rebounded sharply, suggesting timing and behavior changes rather than a broad economic downturn. Outside economists and labor experts painted a generally stable to positive economic picture. Zions Bank’s economist said the Federal Reserve is likely near the end of major rate cuts, long-term rates and mortgage rates remain elevated, tariffs have risen sharply, but inflation has not yet shown broad tariff-driven acceleration; he described the national labor market as slowing but not contracting and said 2026 could be a rebuilding year. The Idaho Department of Labor reported that Idaho’s unemployment remains historically low, job growth is steady, wage growth is moderating from overheated pandemic-era levels, and the state’s labor market remains healthier and more balanced than the national picture. The committee also heard from Idaho Power’s economist, who began a presentation on broader economic conditions and utility-related demand trends before the transcript ended.