Transcript Highlights:

• First, the increase in the Proposition 98 funding requirement.
• . that additional increase in two years.
• Year, but in two years will give you a 4% increase.
• Utility increases are up over 200% over the last decade.
• So districts got used to those fixed-cost increases being covered.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• After 30 years, we had to increase fees.
• By substantially increasing the number of engineers while only increasing the necessary fire captains
• It includes a proportionate increase in contract county funding and increases in administrative staff
• You have taken steps to make some substantive increases that are well underway.
• competitive bidding, that is also being increased with this provision.

Transcript Highlights:

• </c> follow the model code and increase follow the model code and increase steadily<00:19:02.640><c>
• ><c> to</c> steadily increase what we're trying to steadily increase what we're trying to do<00:19:04.240
• So that is a one-time increase.
• Thank you. ...would increase between $351 and $556. So that is a one-time increase.
• </c><00:35:35.920><c> on</c> about the not seeing an increase on about the not seeing an increase on

Transcript Highlights:

• </c><00:15:40.639><c> of</c> year road fund appropriation increase of year road fund appropriation increase
• inflationary increase.
• </c><00:19:10.960><c> for</c> about our request for an increase for about our request for an increase
• </c><00:42:27.119><c> and</c> because of these natural increases. and because of these natural increases
• </c> addressing that uh that cost increase addressing that uh that cost increase that<00:42:33.280><c

Committee: Senate Transportation

Transcript Highlights:

• Some examples of cost increases in out-of-home care are as a result of per diem increases that occurred
• </c> result of per diem increases that result of per diem increases that occurred<00:12:36.720><c> in
• increased our budget increased our budget while<00:27:34.320><c> we</c><00:27:34.480><c> close</c><00
• So, that increase, long-winded way to get to that increase, yes, will apply to those programs.
• That increase, long-winded way to get to that increase, yes, will apply to those programs. >> Okay. >

Transcript Highlights:

• This increase of hearings will result in an increase of the fiscal note. So it can't be zero.
• If this is going to increase hearings, If this is going to increase hearings, it increases the cost to
• , and that increases the cost.
• So there is no increase in case loads.
• So there is no increase in case loads.

Committee: Senate Education

Transcript Highlights:

• So our rates have increased; my cost increased from $8 a month to $75 a month even with the solar system
• So our rates have increased, my cost increased from $8 a month to $75 a month even with the solar system
• Achieving these goals requires an enormous increase in transmission capacity, a 350% increase in transmission
• The TAC has increased over three and a half times since 2009, and we anticipate that it could increase
• The tack has increased over three and a half times since 2009, and we anticipate that it could increase

Summary: The committee first heard AB 13, which would restructure the CPUC to increase legislative oversight, add legislative liaisons, require more detailed and timely reporting on rate-setting decisions, and add a public advocate member. The author and supporters argued the bill would improve transparency, accountability, and geographic diversity in CPUC decision-making amid rising utility rates. Witnesses from TURN, San Joaquin County, SDG&E, and former CPUC Commissioner Loretta Lynch offered support or support-in-principle, while no opposition testimony was presented. Members generally praised the bill’s transparency goals, and AB 13 passed 10-0 to Appropriations, with the roll left open for absent members. The committee then adopted the 2025-2026 committee rules and approved three consent items: AB 61, AB 365, and AB 406. The next bill, AB 99, would cap investor-owned utility rate increases above inflation except for specified costs such as safety, modernization, and fuel/commodity costs. The author and supporters, including a representative of the California Senior Legislature, said the bill was needed to protect ratepayers, especially seniors and low-income customers, from repeated rate hikes. Opposition came from utility labor, utilities, the Chamber of Commerce, and others, who argued the bill was too simplistic, could suppress labor costs, and did not account for major cost drivers such as wildfire mitigation, mandates, and net metering. Several members supported moving the bill forward as a starting point on affordability, while others criticized it as overly blunt. AB 99 passed 11-0 to Appropriations, with the roll left open. The hearing then shifted to an informational panel on strategies to reduce California transmission costs. A Public Advocates Office staffer described a growing backlog of approved-but-unbuilt transmission projects, rising transmission access charges, and long project timelines driven largely by utility pre-application and construction periods. Panelists from Net Zero California and consulting firms presented research suggesting that public financing or public-private partnership lease models could reduce transmission costs by lowering financing, tax, and capital costs, with estimated savings of up to 57% and as much as $123 billion over 40 years. PG&E’s representative said the utility is already pursuing federal loan guarantees, grants, and a public-private partnership with Citizens Energy, but warned that state ownership could create tax, wildfire-liability, and governance risks. Members asked about the CPUC’s role, the causes of delays, and whether public financing could complement existing competitive solicitation processes.

Transcript Highlights:

• That is an increase in just this year alone.
• That is an increase in just this year alone.
• And a lot of them have cost increases to them.
• An $18 million increase.
• Now we're increasing it on top of that.

Summary: The committee first received a briefing on the updated “green sheet” budget materials and how to read the FY 2027 columns, along with a review of several bills with fiscal impacts, including HB 503, HB 556, HB 559, and HB 578. Staff explained where the documents could be found online and answered questions about the timing and size of the bills’ fiscal effects, including the tax conformity bill and county jail reimbursement changes. The main business was the 2026 Idaho Budget Rescissions Act. Members debated whether to adopt the governor’s 3% rescission, add an additional 1% reduction, or add an additional 2% reduction. Supporters of deeper cuts argued the state needed structural balance, a larger ending balance, and a response to revenue uncertainty and the pending tax conformity bill. Opponents said across-the-board cuts were too blunt, could harm Medicaid, education, public safety, and other programs, and should be handled agency by agency. The committee first rejected the 1% and 2% substitute motions, then approved the governor’s 3% rescission motion on a due-pass recommendation. The committee then approved a transfer of $22,366,500 from the Public School Income Fund to the General Fund, with the motion passing after a roll call vote. It next took up statewide decisions, starting with ongoing base reductions for selected state agencies. After debate over whether the reductions should be 3%, 4%, or 5%, the committee rejected the higher-cut substitutes and approved the governor’s 3% base reduction recommendation. Members emphasized that the work groups would still have flexibility to adjust individual agency budgets later. Finally, the committee considered personnel benefit cost increases for FY 2027. Staff explained the proposed health insurance and other variable-rate adjustments, and members debated whether to use the governor’s recommendation or a DOGE Working Group recommendation that slightly changed the funding mix and total. The governor’s recommendation was defended as more consistent with prior employee-benefit review practice, while supporters of the DOGE proposal said it would tighten legislative control over funding. The governor’s recommendation was ultimately rejected, and the committee moved on after the roll call votes on the competing motions.

Transcript Highlights:

• So most states since 2013 have increased their gas tax.
• So most states since 2013 have increased their gas tax.
• They’re not being asked to increase it.
• I am testifying in support of this fee increase.
• I am testifying in support of this fee increase.

Bills: HB2109 , HB2139 , HB2192

Committee: House Transportation

Keywords: vehicle loads, public highways, transportation, road safety, infrastructure, HB2139, snowmobile registration, snowmobile fee, vehicle license fee, registration fee, Department of Licensing, RCW, vehicle registration, winter recreation, off-road vehicle, moped, motorcycle, trailer, recreational vehicle, vintage snowmobile

Transcript Highlights:

• So this is becoming an increasing part of how you fund education as you can see, K-12, higher education
• you with increased revenue stability over time.
• And it was really comforting to see that they had increased our bond rate. Great.
• NPSIA passed on a 16% premium increase in FY26. We did project a 16% increase for FY27.
• So, the contribution increases that were passed in Senate way to help that, reducing the cold.

Committee: House House Appropriations & Finance

Transcript Highlights:

• It is scheduled to increase to 4 mils in two years.
• in increasing the minimum allowable thickness of reusable the increasing the minimum allowable thickness
• It is scheduled to increase to 4 mils in 2 years.
• We do have concerns with the proposed fee increase on paper bags.
• We expect that it would do so by simply the increase of the cost of the wrapping.

Bills: HB1420 , HB2233 , HB2271 , HB2212 , HB2284

Committee: House Environment & Energy

Keywords: textile responsibility, recycling, sustainability, environmental impact, consumer protection, waste reduction, environment, retail, bags, pollution, consumer products, plastic, environmental policy, postconsumer waste, microplastics, environmental protection, washing machines, water quality, litter reduction, public health

Transcript Highlights:

• As far as the increase over time?
• also sales tax increases.
• also sales tax increases.
• So as we balance caring for our communities and increasing and dealing with our increasing costs of providing
• You can all recall in 2023 that was an increase.

Committee: House Health Care & Wellness

Summary: The committee heard a JLARC audit presentation on the Department of Health’s oversight of hospital inspections, complaints, and hospital data reporting. JLARC said DOH was late on 72% of acute care hospital inspections as of December 2024, had not verified that third-party accrediting standards were substantially equivalent to state requirements, did not consistently collect proof of those inspections, and was not reviewing adverse health event corrective action plans as required. JLARC also said DOH’s complaint system may have language-access barriers and that hospital data posted online is difficult for the public to use. JLARC made five recommendations to DOH and one to the Legislature; DOH concurred with the recommendations. DOH then outlined a response plan and said it had already begun work on several items. Officials said they would develop staffing and performance plans for inspections, verify accrediting body standards and require proof of third-party inspections, expand complaint forms into additional languages, seek funding and legal updates for adverse event review, and improve public access to hospital data, including a possible dashboard. They said annual progress updates would be provided to the Legislature and noted some improvement in inspection timeliness, while also emphasizing staffing, funding, and pandemic-related backlogs as constraints. The committee also received a DOH presentation on certificate of need modernization. DOH described the current program as a tool to assess community need, financial feasibility, quality, and cost containment for certain facility expansions and new services, and recommended a phased modernization focused on clarifying statutory purpose, creating a planning entity, adding flexibility, reducing legal costs, modernizing access standards, expanding oversight to freestanding emergency departments and urgent care, addressing equity, improving cost control coordination, securing ongoing funding, and using new state data systems. Members asked about streamlining overlapping inspections and whether triggers could be used to target inspections more efficiently. A final panel discussed artificial intelligence in health care, with a Coalition for Health AI representative describing industry efforts to create standards for responsible AI, including principles of usefulness, fairness, safety, transparency, security, and privacy, plus tools such as model cards and quality-assurance frameworks. The committee then heard testimony on federal and state health care funding changes from the Washington State Hospital Association and Providence Swedish, which warned that state cuts, taxes, and federal HR1 changes would worsen already thin margins, lead to service reductions, layoffs, and delayed capital investments, and increase charity care and uncompensated care. The Washington Health Benefit Exchange also began a presentation on expiring federal ACA premium tax credits and the state’s Cascade Care Savings program, warning that coverage affordability for exchange customers could be affected if federal enhancements are not extended.

Transcript Highlights:

• This increases the heavy commercial vehicle weight distance tax by 35%, increases vehicle registration
• We are increasing the tax for the citizens.
• Increases in vehicle weight, gross vehicle weight versus their tax rate.
• That is a tax increase, is it not? Mr.
• It's a tax increase.

Bills: SB2 , SB2

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Keywords: SB 2, State Highway Project Bonds, highway funding, transportation bonds, state road fund, motor vehicle fees, vehicle registration fees, electric vehicle fee, EV surcharge, plug-in hybrid fee, weight distance tax, road construction, infrastructure financing, Department of Transportation, State Transportation Commission, bonding authority, county road funds, municipal road funds, transportation improvement program, state highways

Transcript Highlights:

• </c> that there are costs that are increasing that there are costs that are increasing at<00:35:15.920
• </c> but we do not see the rate of increase but we do not see the rate of increase that<00:39:47.200>
• energy sales to increase revenue.
• energy sales to increase revenue.
• energy sales to projects to increase energy sales to increase<02:23:29.280><c> revenue.

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• </c> rating increase. rating increase. &gt;&gt; Right.<00:42:52.720><c> Yeah.
• c> increase.
• Uh you have inflationary increase.
• </c> the inflation increases. the inflation increases.
• The numbers will be increasing, and the partnerships are increasing.

Summary: The committee heard SB 2694 SD2, which would authorize the Public Utilities Commission to create automatic adjustment mechanisms for water carriers, including a water carrier inflationary cost index, and to waive certain requirements under the Hawaii Water Carrier Act. Testimony was sharply divided. The Department of Transportation, Young Brothers, and several shipping, harbor, labor, and business-related supporters argued the bill would modernize regulation, reduce the need for large catch-up rate cases, and help keep rates aligned with rising costs. Young Brothers said its current rate-setting process is expensive and delayed, and that annual adjustments with guardrails such as a 5% cap and periodic full reviews would support sustainable operations and the state’s supply chain. Some supporters also said the company’s less-than-container-load service and required inter-island routes create costs that are not fully covered by current rates. Opponents, including the Consumer Advocate, the Maui Chamber of Commerce, Hawaii Food Industry Association, restaurant and chamber groups, and other businesses, argued the bill would lead to higher costs for consumers and businesses and should not move forward. Several testified that shipping costs already significantly affect pricing and that automatic increases would worsen the cost of living. The Consumer Advocate said Young Brothers should focus on cost control and implementing its business plan rather than automatic rate increases. The Maui Chamber and others pointed to a recent PUC decision that imposed a two-year stay on rate increases and said the bill would undermine that protection. Some opponents urged the committee to defer to the PUC’s regulatory authority. The PUC explained that it regulates water carriers as public utilities under existing statute and said it had recently approved a temporary rate increase while imposing a two-year stayout period on further increases, with emergency relief still possible. PUC members said they were still examining whether they have authority to adopt the proposed WICI mechanism by rule and wanted legislative clarity. In response to questions, the PUC said it prefers the current two-year stayout as reflected in its order. Young Brothers also clarified that it serves less-than-container-load cargo, that some routes and services are cross-subsidized because they are not profitable, and that an independent observer is being put in place to monitor implementation of its updated business plan. The transcript ended with the committee still taking questions; no final vote or disposition on the bill was shown.

Transcript Highlights:

• </c> increased due to what you're asking. increased due to what you're asking.
• It was also paid for by the pharmaceutical manufacturers. increase health care costs by requiring increase
• </c> entire plan will likely increase entire plan will likely increase premiums<01:05:10.000><c> for<
• </c><01:09:58.320><c> in</c> what's probably a very small increase in what's probably a very small increase
• ><c> quality</c><01:36:16.960><c> interpretive</c> increase access to quality interpretive increase access

Committee: House Health Finance and Policy

Transcript Highlights:

• An increase of $62.21 in total funds per student, bringing the average amount to $9,049.88, and an increase
• Well, this year Well, this year's budget increases not only the BSA statewide, but increases the funds
• amount is increasing.
• You know, a couple years ago... ...where the FEFP is increasing, and the per-student amount is increasing
• The increases proposed are not sufficient to address mandatory expenditures, including an increase in

Summary: The House convened with prayer, the Pledge of Allegiance, and a quorum present, then adopted the special order report and moved into a series of budget-related bills. The chamber first took up HB 5011/SB 2506 on environmental resource management and natural resources funding, where Democrats argued the bill would reduce recurring support for the Resilient Florida program, the Florida Wildlife Corridor, invasive species removal, and other conservation efforts. Supporters said the change would shift money from recurring to nonrecurring funding so the Legislature could reassess priorities each year and rely more on private-sector stewardship. After a strike-all amendment and conference posture change, SB 2506 passed 97-12. HB 5013, reducing state-funded property reinsurance reserves, passed 108-0, and HB 5501, redirecting documentary stamp tax distributions from housing and transportation trust funds into general revenue, passed 82-26 after extended debate over its impact on affordable housing and transportation funding. The House also passed HB 5015 on state group insurance, which requires DMS to develop a formulary management system and was described as producing significant savings; members raised concerns about prescription access and implementation, but the bill passed 109-0. HB 5201 on state financial accounting and HB 5203 on the Capitol Center both passed unanimously, as did HB 5009, which creates a Florida Accountability Office and reorganizes audit functions. The chamber then passed HB 7031, a major sales tax reduction bill lowering the state sales tax rate and several related rates; supporters framed it as permanent relief for all Floridians, while opponents said property tax relief would be more meaningful and that the sales tax cut would also benefit tourists and out-of-state visitors. HB 7031 passed 112-0. The House then began consideration of HB 501, the proposed fiscal year 2025-26 budget, totaling $112.9 billion and emphasizing reduced recurring spending and large reserves. Subcommittee chairs outlined their budget silos: K-12 education at $20.6 billion with teacher raises, school hardening, literacy, transportation stipends, and security funding for Jewish day schools; health care at $47 billion with full Medicaid and KidCare funding, opioid settlement spending, mental health beds, and senior services; transportation/economic development at $18.5 billion; agriculture and natural resources at $5.8 billion with reduced Everglades spending but continued water, resiliency, and land management funding; higher education at $8.7 billion; state administration at $2.9 billion; justice at $7.3 billion; and IT at $529 million for Florida PALM, FX, and other systems. Members then began questioning the K-12 budget, focusing on FEFP funding, proration, voucher growth, stabilization dollars, mental health and school safety funding, and whether districts would be held harmless under the proposed allocations.

Transcript Highlights:

• to that COLA; the board is supportive of doing that. increase that formula the 1% fix to what increase
• That is a 0.75 increase on the employer side and a 0.25 increase on the employee side.
• we have scheduled increases positive 51 we have scheduled increases in<00:57:19.119><c> our</c><00:57
• </c> employer side and a 0.25 increase on the employer side and a 0.25 increase on the employee<00:57
• at the lowest annual increase currently at the lowest annual increase of<01:14:03.520><c> any</c><01:

Transcript Highlights:

• It's a longevity stipend increase by 50%.
• It's a 68,000% increase. Right.
• That's the one thing that we did increase.
• Why is it that in order to increase funding... ...or increase teacher pay?
• , not a more than 100% increase.

Bills: SB1177 , HB3705 , SB1942 , SB2026 , SB1533 , SB1327 , SB2065 , SB2155 , SB2159

Summary: The House convened, completed the roll call, received an invocation focused on grief and remembrance, and heard several special presentations recognizing a brave child, visiting groups, and multiple student-athlete teams and school groups in the galleries. The chamber also introduced the Doctor of the Day and Nurse of the Day. The main business was consideration of the Joint Committee report on Senate Bill 1177, the general appropriations bill, presented by Chairman Caldwell-Trey. Most of the floor time was spent on extended questions about the budget’s major features. Caldwell-Trey explained the bill as a largely flat or modestly increased budget that includes a $200 million transfer to a new sovereign wealth fund, $225 million in set-asides, a $12.5 million “dream accounts” program for newborns, and funding tied to teacher pay, education, workforce, public safety, agriculture, and health agencies. Members questioned the use of one-time funds for recurring expenses, the reduction in state contributions to the OPRS pension system, Medicaid assumptions, emergency management funding, veterans’ services, child care, school counselors, and the lack of funding for some requested items such as National Board Certified Teacher stipends and veterans’ facility maintenance. Caldwell-Trey defended the budget as transparent, early, and designed to preserve cash reserves while supporting core services. No final vote on the appropriations report is reflected in the transcript excerpt. The House also heard explanations that the limits bills would be run later in committee, and that the budget negotiations were still ongoing with the Senate and governor on some related items. The session ended with the queue closed after the budget questioning, and the transcript cuts off during additional remarks from Representative Timmons.

Transcript Highlights:

• We are seeing an increase in students going to community colleges.
• We are seeing an increase in students going to community colleges.
• We are seeing an increase in students going to community colleges.
• We are seeing an increase in students going to community colleges.
• This would increase that by 16.

Summary: The Emergency Board met on June 17, 2026, and approved a series of subcommittee recommendations, mostly on consent, related to federal grant applications, agency funding adjustments, and position authority. Early actions included approval of four federal grant applications from natural resources agencies, three public safety grant applications, a one-time increase for Judicial Department court security, retroactive approval for an AmeriCorps volunteer-generation grant, and a $7.5 million allocation to Southern Oregon University from a special appropriation for short-term financial stability. Members supporting the SOU item emphasized the university’s structural deficits, declining enrollment, and the need for a long-term higher education plan; several members voted no or raised concerns about sustainability, but the motion passed. The board also approved a federal apprenticeship expansion grant for the Higher Education Coordinating Commission, a school nutrition equipment grant for the Department of Education, and an Oregon Health Authority request tied to Medicaid community engagement requirements under H.R. 1. Public safety items included funding for Oregon Military Department readiness facilities, a report on the stalled juvenile justice information system modernization project with a follow-up viability report due in 2026, and a statewide evacuation planning tool for emergency management. The evacuation tool drew strong support as a wildfire preparedness measure, with members noting it could significantly reduce alert times and save lives. A major point of debate was the Department of Justice request to add 16 permanent positions and increase other funds limitation for antitrust enforcement. Supporters argued the federal government has pulled back and Oregon needs capacity to pursue active cases and protect consumers; opponents objected to the process, the size of the expansion, and the incentive structure tied to settlements and awards. Despite those concerns, the motion passed. The board also approved Water Resources Department requests for the Water Well Abandonment, Repair and Replacement program, an assistant water master position in Washington County, and federal funding for Lower Umatilla Basin groundwater data collection. The water master item prompted questions about county cost shifts, but staff said the position would remain externally funded and would not be filled without those resources.