Transcript Highlights:

• that questions you have, I can try to answer those, or I may have to punt to Director Gary or Karen or CFO
• Karen, our CFO, can answer anything.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee heard budget presentations and took executive recommendations on several Department of Human Services divisions, including Aging, Adult and Behavioral Health Services; Children and Family Services; County Operations; Developmental Disability Services; and Medical Services, with most divisions showing little or no significant change in total appropriations. Staff and agency witnesses repeatedly explained that many large appropriations are maintained for flexibility, federal matching requirements, or contingency needs, even when actual spending is much lower than the authorized amount. Members also raised concerns about staffing vacancies, long-vacant budgeted positions, and the use of excess appropriation authority across DHS. In Aging, Adult and Behavioral Health, members questioned federal funding levels for mental health and substance abuse grants, the status of senior centers and Meals on Wheels, the Medicaid tobacco settlement program, community alcohol safety grants, and the veterans mental health grant. Agency officials said federal block grants are largely committed, that senior center funding had been delayed by shutdown timing but was now back on track, that the tobacco settlement program had been moved internally within DHS, and that the veterans mental health appropriation remains unfunded. Senators also criticized the adequacy of support for seniors and asked for more detail on how transportation, meal services, and local contributions are funded. In Children and Family Services, members asked about rising appropriation levels, foster care and adoption subsidies, professional fees, the number of children in foster care, and the Children’s Trust Fund. DHS said increases reflect added flexibility for residential treatment, adoption subsidies, and prevention services, while the foster care population has remained fairly steady at about 3,400 children. The Children’s Trust Fund was described as supporting primary prevention programs such as Baby and Me and community schools, and members asked whether it could be administratively combined with other efforts. Questions also covered TANF subgrants, with DHS explaining that it had reduced outside subgrants after discovering over-obligation and was rebuilding reserves. In County Operations, members focused on the summer EBT program, SNAP employment and training, the farmer’s market program, and the state’s TANF reserve position. DHS said summer EBT is still being funded through temporary appropriations because it is a newer program, SNAP employment and training is largely federally funded and may expand under a pending policy change, and TANF reserves were drawn down after prior over-obligation but are now being stabilized. In Developmental Disability Services, members asked about vacancies, human development center staffing, facility construction funds, and the Booneville work program, and DHS said the program has reopened and staffing recruitment continues. In Medical Services, members asked about FMAP, the Our Kids B CHIP program, school-based Medicaid reimbursements, nursing home distress funds, and several large appropriation lines that far exceed actual spending; DHS said these are maintained for claims payment, nursing home receivership contingencies, and other flexibility needs. Each division reviewed was adopted by executive recommendation after questions concluded.

Transcript Highlights:

• And that money was used in fiscal cliff types of decision-making. by those CFOs against the advice of
• workshops on how to avoid those fiscal cliffs. that the TEA offered and very, very few superintendents or CFOs

Bills: SB2 , SJR36 , SB2 , SB2 , SR29 , SB2

Transcript Highlights:

• appropriated about $10.7 million for certain leadership positions that all agencies need, things like a CFO
• rent, and other operating needs that support program administration. agencies need um things like a CFO
• um agencies need um things like a CFO um and<00:12:31.360><c> commissioner</c><00:12:31.880><c> and<

Committee: House Human Services Finance and Policy

Transcript Highlights:

• For the record, Josh Can Hubinger, CFO at MnDOT, going to cover two topics today: the bonding items in
• For the record, Josh Can Hubinger, CFO at MnDOT.
• For the record, Josh Can Hubinger, CFO at MnDOT, is going to cover two topics today: the bonding items

Committee: Senate Capital Investment

Transcript Highlights:

• I was just speaking with CFO White just prior to this meeting, talking about the ability to be able to
• So I just want to not be the stormy cloud, but unfortunately, as a CFO, that is often my role in any
• unfortunately<01:11:43.840><c> um</c><01:11:44.000><c> as</c><01:11:44.159><c> a</c><01:11:44.400><c> CFO
• <01:11:44.800><c> that</c><01:11:44.960><c> is</c><01:11:45.040><c> often</c> unfortunately um as a CFO
• that is often unfortunately um as a CFO that is often my<01:11:45.520><c> role</c><01:11:45.679><c>

Summary: House Finance Division 3 met in work session and opened with procedural remarks from the chair about the committee’s schedule, deadlines, and recommendation options, noting the meeting was advisory and no votes were expected. The first bill discussed, House Bill 1569, concerned repealing the directive to sell the Anna Philbrook Center for Children property in Concord. Testimony from DHHS and New Hampshire Hospital focused on whether the property could be subdivided, the relationship to Senate Bill 572, the status of the city of Concord’s first right of refusal, and the practical effects of a sale. Witnesses said the $5 million sale estimate was a budget assumption, that moving staff and equipment would create some relocation costs, and that the center had required significant recent maintenance and renovation spending. Members also discussed the number of transitional housing beds at the site, the temporary nature of those beds, and whether the property should remain available given hospital workforce and service needs. The committee then turned to House Bill 661, which had been recommitted for further review after new information emerged. The chair summarized federal developments, including a December 2025 ACF letter and a related executive order, as well as a federal HHS press release about states diverting foster youths’ Social Security survivor benefits. Representative Walner explained that amendment 3055H had been drafted to move the bill forward in smaller steps, with a fiscal note requested on the amendment because the original bill was viewed as too large and expensive. Members discussed whether the committee had received copies of the amendment and whether federal guidance or funding had changed the policy landscape. The discussion also included broader questions about foster youth benefits and whether federal action would support state implementation. One member cited ACF language stating that only 11 states had enacted policies to stop interception of survivor benefits and that technical assistance would be available to the remaining states. The meeting remained in work-session mode throughout, with no votes taken and no final recommendations made during the portion provided. The chair indicated the committee could return to the bills later in the month.

Transcript Highlights:

• Impact, and that has some data. ...and that has some data that we're collecting across the sort of CFOs

Committee: House House Committee on Federal Funding, Policy and Accountability

Summary: The inaugural hearing of the newly named House Committee on Federal Funding, Policy and Accountability focused on how federal policy changes could affect Massachusetts, especially in education, health care, research, infrastructure, climate, and business conditions. Chair LaNatra said the committee was created to monitor federal funding decisions and their impacts on state programs and services. Members introduced themselves, then heard testimony from Doug Howgate of the Massachusetts Taxpayers Foundation, Sarah Mills of Associated Industries of Massachusetts, and Quentin Palfrey, the governor’s Director of Federal Funds and Infrastructure. Howgate argued that the Trump administration and new Congress pose ideological, practical, and process-related risks to Massachusetts, citing proposed cuts to Medicaid, education, research, and other domestic programs. He said federal dollars make up about a quarter of the state operating budget and capital plan, warned against using one-time reserves to backfill ongoing federal cuts, and urged the state to prioritize core services while protecting areas where Massachusetts is especially strong, such as higher education and research. In response to committee questions, he said the House Medicaid proposal would still cost Massachusetts hundreds of millions and that international student and NIH-related changes could harm the state’s labor force and innovation economy. He also advised that the state communicate clearly without overreacting to daily federal developments. Mills testified that AIM members are most concerned about uncertainty, tariffs, Medicaid cuts, and NIH reductions. She said tariffs are raising costs, disrupting supply chains, and hurting small and medium-sized businesses, housing construction, and exporters, with AIM’s business confidence index falling to its lowest level since the pandemic. She said Medicaid cuts would raise employer health costs, reduce productivity, and strain the health care system, while NIH cuts would threaten Massachusetts’ life sciences and academic research ecosystem. In questions, she said AIM has increased federal outreach, is coordinating with the U.S. Chamber and the Massachusetts delegation, and is hearing concerns from employers about immigration compliance and workforce disruptions. Palfrey described the Healey-Driscoll administration’s efforts to maximize federal funding, including a biweekly interagency council, a municipal partnership effort, and a statewide roadshow. He said Massachusetts has secured nearly $9 billion from major federal laws for projects such as the Cape Cod bridges, Allston Multimodal, grid modernization, clean-energy school buses, and broadband. He also said the administration launched a public website to track federal impacts and is working with municipalities, nonprofits, and the Attorney General on grant changes, legal issues, and litigation. In response to questions, he warned that cuts to NOAA, NSF, Medicaid, SNAP, and other programs could affect services and the state budget, and said the administration is tracking changes to federal grant applications and conditions. No votes were taken; the hearing was informational only.

Transcript Highlights:

• The CFO of MassWildlife attributes 85% of their budget to the financial support of sportsmen and women

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a long hybrid hearing on a wide range of tax bills, with testimony covering cigarette and tobacco taxes, nicotine pouches, contractor rental equipment exemptions, aircraft sales tax exemptions, rolling stock, advanced sales tax payments, a gun and ammunition excise tax, a digital services tax, and a psilocybin cultivation/tax proposal. Committee chairs outlined the hearing process and noted that 39 House-filed sales and excise tax bills were being heard for required reporting by November 28. No votes were taken during the hearing. On tobacco-related bills, supporters including Senator Keenan, the American Heart Association, the American Cancer Society, and Tobacco Free Mass backed higher cigarette taxes and closing the synthetic nicotine loophole, arguing the measures would reduce youth initiation, encourage cessation, and offset health care costs. Retailers, wholesalers, and convenience-store groups opposed the increases, warning of smuggling, out-of-state purchasing, and harm to small businesses; premium cigar representatives argued cigars should be treated separately from cigarettes. The committee also heard testimony on H. 3067 and related bills concerning nicotine pouches, with public health advocates supporting taxation and industry witnesses urging a lower, more competitive rate. Several other bills drew sharply divided testimony. United Rentals supported H. 3065 to simplify contractor rental equipment exemption paperwork, while airport and aviation groups opposed bills to repeal the aircraft sales tax exemption, saying it would hurt airport competitiveness and jobs. The Transportation Association of Massachusetts backed rolling stock tax exemptions, saying the current tax discourages fleet investment and interstate commerce. Restaurant industry representatives supported repealing advanced sales tax payments and changing penalty rules, saying businesses were hit with retroactive penalties after unclear pandemic-era changes. On H. 3082, an excise tax on guns and ammunition, gun violence prevention advocates, Roca, and Giffords supported the bill as a dedicated funding source for prevention and survivor services, while sportsmen’s groups opposed it as unfair to lawful gun owners and harmful to conservation funding. The committee also heard testimony on H. 3208, a digital advertising services tax, with Representative Paulino supporting it as a way to capture revenue from online advertising and fund public needs, while the Chamber of Progress opposed it as costly and burdensome for small businesses and campaigns. Finally, multiple witnesses testified on H. 4050 regarding psilocybin cultivation and taxation: advocates from Mass Healing, Roca, the Reason Foundation, and individuals describing personal medical benefits urged a regulated, permit-based system, while the hearing ended after all signed-up speakers were heard and the chair adjourned the meeting.

Transcript Highlights:

• That might actually be a CFO question.

Summary: The Education Freedom Account Oversight Committee met on March 27 and approved the agenda, adding a request for clarification on how the Children’s Scholarship Fund separates applications for the EFA program and the education tax credit program. The committee also approved minutes from December 30, 2025, and March 27, 2026, with a request that the March minutes include a link to the live stream. Members discussed the status of pending Legislative Budget Assistant audit reports on EFA and special education, noting the reports were still not released and would likely come later in the summer after review by the Department of Education and the Children’s Scholarship Fund. A major topic was the EFA program’s administrative fee, which statute allows up to 10% of deposits. Children’s Scholarship Fund representatives said current administrative costs were under 8%, that staffing had been reduced through the ScholarVia platform, and that any unused amount is reconciled and returned to students at year’s end. Members asked for historical administrative-cost data and a written explanation of how the withholding and reconciliation process works. The committee also reviewed the distinction between the EFA and education tax credit funding streams and was told the two programs use separate applications and separate funds, though both use the same platform. The committee spent substantial time on assessment and accountability. Department of Education staff explained that EFA students may satisfy annual assessment requirements through a portfolio, a norm-referenced test, or the statewide assessment; only about 10 EFA students took the statewide assessment, while most used portfolios or standardized tests such as the California Achievement Test and NWEA. Staff described how statewide assessment data are kept separate by student identifier and can be aggregated for EFA reporting, and members asked for breakdowns by grade, test type, and school district. The department also discussed linking assessments through Lexiles and Quantiles and said it could provide a list of commonly used formative assessments in New Hampshire districts. The committee additionally discussed a possible PSAT addition to the state contract and the costs of the statewide assessment program. Another major issue was special education eligibility and services within the EFA program. Members questioned the rule allowing a medical certification of disability from a licensed professional anywhere in the United States as an alternative to an IEP-based determination. Department staff said the current system allows either pathway, that about 1,000 EFA students are identified as special education students, and that the program does not track growth or service alignment on an individual basis. Members expressed concern that the medical-certification route may be too broad and asked for data on the disability categories used. The committee also discussed career and technical education access for EFA students, noting that Senate Bill 491 would provide guidance and that House Bill 1817 would address access and funding issues, but that current law still allows EFA funds to be used to pay CTE costs. The meeting ended with a request for future agenda items and a decision to leave the next meeting date open until fall, pending further information from the LBA audit process.

Transcript Highlights:

• So according to the state's CFO contract database, in just the last two and a half years, your law firm

Committee: Senate Ethics and Elections

Summary: The committee met to consider a large slate of appointments, with the main discussion centered on the confirmation of Chavon Harris as Secretary of the Agency for Health Care Administration (AHCA). Harris testified about her background in state service and outlined agency priorities including Medicaid financial accountability, transparency, managed care oversight, behavioral health redesign, rural health access, workforce recruitment, and use of technology and AI. Senators questioned her extensively about the Hope Florida/Medicaid settlement controversy, opioid settlement-funded advertising campaigns tied to marijuana prevention and the 2024 Amendment 3 election, public records compliance, abortion reporting and enforcement under the Heartbeat Protection Act, managed care denials, value-based purchasing, and Medicaid funding pressures. After debate, the committee voted to recommend her confirmation, with Senator Polsky voting no. The committee then considered Anna Ortega and Robert Payne for the Florida Public Service Commission. Ortega, a current PSC commissioner and former staff advisor, discussed utility regulation, data center load issues, ratepayer protections, transparency in PSC decisions, and lessons from other states. Payne, a former legislator and longtime utility co-op employee, emphasized his technical background and the need to balance utility returns with consumer affordability. Both nominees were confirmed by unanimous or near-unanimous votes and recommended favorably to the full Senate. Next, the committee heard from Jeffrey Aaron for reappointment to the Public Employees Relations Commission. Aaron described PERC’s role in public-sector labor disputes and said his work had been upheld in appellate courts without reversal. Senators questioned him about his law firm’s state contracts, his role as chairman of Attorney General James Uthmeier’s PAC, and his connection to the Hope Florida Foundation matter; he declined to discuss the pending investigation. Public testimony included opposition from Florida Voice for the Unborn. The committee nevertheless recommended his confirmation, with several no votes. Finally, the committee approved the remaining appointees on tabs 5 through 46 in a single vote, postponing Dr. John Littell and DCF Secretary Hatch, and then adjourned.

Transcript Highlights:

• The piece that my CFO and the commissioners and I have been talking about is the extreme popularity of

Committee: Senate House Rules & Order Of Business

Summary: The committee first heard HB 124, which would codify the Office of New Americans within the Workforce Solutions Department. The sponsor and Workforce Solutions officials said the office has already been operating on a grant and has become a key resource for businesses and immigrant workers, especially for workforce development, credential recognition, language access, and referrals. Supporters from immigrant advocacy, child care, conservation, and civic groups argued the office would help address labor shortages, improve integration, and strengthen economic growth. Several members questioned whether the office would serve people without legal status, what services would be provided, and whether it would create taxpayer costs; sponsors said eligibility would depend on specific programs, the office would mainly provide referrals and workforce support, and it is currently philanthropic grant-funded. The bill was ultimately passed on a 6-4 due pass vote. The committee then considered SJR 6, a proposed constitutional amendment to change New Mexico’s pretrial detention standards. The sponsor argued the 2016 bail reform language has contributed to a “revolving door” for repeat offenders and that the current standard is too restrictive and inconsistently applied across judicial districts. Supporters from State Police said the resolution would give clearer direction and let voters revisit the issue. Opponents from the ACLU and the Criminal Defense Lawyers Association warned it would expand pretrial detention, weaken the requirement that the state prove no release conditions are adequate, and disproportionately affect poor people and people of color. After extended debate over public safety, judicial discretion, and whether the proposal should include a clearer standard, the committee approved the resolution on a 6-4 due pass vote. The committee also passed SJR 7, a land swap between the state and the City of Santa Fe involving the DPS site and part of the Midtown campus. The sponsor, the Department of Public Safety, and the Santa Fe mayor said the exchange had been discussed for years, would allow the state to own the land under its DPS facilities, and would help the city advance its Midtown redevelopment plan, including housing and public amenities. Members asked about the parcels involved, whether both sides agreed, and whether any member had a financial interest; the sponsor said the swap was non-monetary and fully agreed to by both parties. The resolution passed without opposition. Finally, the committee heard SM 31, which creates a workgroup with LFC, DFA, and PERA to study the loss of COLAs for PERA retirees and recommend solutions. Retiree advocates said the reduced COLA has significantly eroded pension value and that retirees relied on the statutory promise of a 2% COLA. Other speakers emphasized the need to protect long-term fund solvency while addressing retiree losses. The memorial passed unanimously by roll call. The meeting then recessed, with the chair noting the next day’s agenda would be posted later.

Transcript Highlights:

• I wanted to read out a Florida Politics article headline that just recently came out: “CFO pushes for

Summary: The committee heard and advanced a wide range of bills, with several focused on water safety, utilities, and local government transparency. CS/SB 848 on stormwater treatment was explained as clarifying water quality credits and water quality enhancement areas, and it was reported favorably after one support appearance. SB 28, a claim bill for Reginald Jackson against the City of Lakeland arising from injuries caused by a police shooting, was also reported favorably. CS/CS/SB 658 on water safety requirements for rental properties drew extensive testimony in support from child advocacy and drowning prevention advocates, who cited Florida’s high child drowning rates and the disproportionate impact on children with autism; the bill was amended to require front-end certification and remove local add-on authority, then passed favorably. CS/SB 18, a claim bill involving the estate of a deceased minor and the Broward County Sheriff’s Office, was reported favorably after questions about the verdict, settlement posture, and who would receive the funds. SB 934 on areas of critical state concern was amended to remove a provision viewed as conflicting with the Live Local Act and then passed favorably. SB 1622, which creates a one-time waiver for certain late-filed financial disclosure fines, also passed favorably with support from an appearance form. SB 1264 on private schools and zoning was reported favorably after members noted ongoing concerns and planned further discussion. CS/CS/SB 260 on electric vehicle storage in towing yards was amended to narrow the bill to storage issues and cap the fee period until inspection; it drew both support and opposition from insurers, fire officials, and vehicle industry representatives, and was reported favorably. CS/CS/SB 1014, dealing with municipal utility service to properties outside city limits, was amended to limit it to residential development and clarify capacity standards, then passed favorably. CS/SB 1102 expanded the local infrastructure surtax to include body camera programs and was reported favorably after an amendment requiring voter approval. Finally, CS/SB 1724 and SB 1566, both on local government utility and budget transparency, were amended and reported favorably despite concerns from cities and counties about implementation costs and burdens.

Transcript Highlights:

• I wanted to read out a Florida Politics article headline that just recently came out: 'CFO pushes for

Bills: S0018 , S0028 , S0260 , S0848 , S0934 , S1014 , S1102 , S1264 , S1566 , S1622 , S1724

Committee: Senate Community Affairs

Summary: The committee heard and advanced a wide range of bills focused on water safety, utilities, housing, transparency, and claims relief. CS/SB 848 on stormwater treatment was presented as a follow-up to prior water-quality legislation and reported favorably with one support waiver. SB 28, a claims bill for Reginald Jackson against the City of Lakeland, was also reported favorably. CS/SB 658, a bipartisan child-drowning prevention bill for rental properties, drew extensive testimony from child advocacy and drowning-prevention groups in strong support; amendments required rental license applicants to certify compliance and removed local-government add-on authority, and the bill was reported favorably. CS/SB 18, a claims bill involving the estate of a deceased minor and the Broward County Sheriff’s Office, prompted questions about settlement and responsibility but was ultimately reported favorably despite opposition from a waiver form. Several utility and infrastructure measures were considered. CS/SB 1724 would regulate municipal utility service outside city limits, limit revenue transfers, require public meetings, and cap rate differences; an amendment added gas utilities, and the bill was reported favorably after testimony from municipal utility representatives and small-county advocates. CS/SB 1014 would require municipal utilities to extend water and wastewater service to certain nearby residential properties without conditioning service on annexation; an amendment narrowed the bill to residential uses and clarified capacity and grandfathering provisions, and it passed favorably. CS/SB 1102 would allow local infrastructure surtax revenue to fund body camera programs, with an amendment making the surtax authorization prospective and requiring a new referendum; it was reported favorably. CS/SB 260 on electric-vehicle storage in towing yards was amended to focus on storage only and to tie the higher fee to the period before fire-risk inspection, then reported favorably after testimony from insurers, fire officials, and EV industry representatives. The committee also advanced education, housing, and ethics-related bills. SB 1264 would ease zoning and code barriers for small private schools and micro-schools, with supporters arguing it would expand school choice and opponents raising implementation concerns; it was reported favorably. SB 934 on Florida Keys areas of critical state concern was amended to remove a tax-exemption section that conflicted with the Live Local Act, then reported favorably. SB 1622 would provide a one-time waiver of late financial-disclosure fines under specified conditions and was reported favorably. Finally, CS/SB 1566 on local government spending and transparency required online posting of budgets and related materials, and an amendment added utility revenue reinvestment and other changes while removing DEI spending restrictions; the bill drew support for transparency but concern from small cities and counties about cost and workload, and it was reported favorably. The meeting ended with adjournment after senators recorded votes on selected bills.

Transcript Highlights:

• telephone number, email address, driver's license or passport number, and date of birth for our CEO, our CFO

Summary: The committee held public hearings on several bills. On House Bill 2354, relating to common interest communities under WUCIOA, staff explained that the proposed substitute would exempt small middle-housing communities from most WUCIOA provisions, exempt certain middle-housing communities from reserve studies if wastewater-related reserve components are not needed, raise the audit threshold from $50,000 to $100,000 in annual assessments, and prevent governing documents from shifting maintenance costs for EV chargers and heat pumps away from the unit owner. Representative Reed and a Community Associations Institute witness supported the bill as a set of cleanup changes tailored to smaller communities, and there were no questions or opposition noted. The committee then heard House Bill 2412, which would add a ninth Superior Court judge in Yakima County. Representative Mendoza and Yakima County officials and judges testified that the county has had eight judges since 1998 despite major population growth, rising filings, and a backlog of more than 2,800 cases older than two years. They said the county can accommodate the new judge physically and has budgeted its share of the cost. The bill was supported as a way to reduce delays, protect speedy-trial rights, and improve access to justice, and the hearing was closed without opposition testimony. House Bill 2500, concerning transfers of beneficiary-designated property to charities, would require holders such as financial institutions or insurers to notify charitable beneficiaries within 10 days of the owner’s death, allow charities to submit an affidavit to claim the property, require transfer within 30 days, and bar holders from demanding personal information or requiring charities to open accounts or wait on other beneficiaries. Charitable organizations strongly supported the bill, describing long delays and invasive paperwork, while credit unions and bankers raised concerns about identity verification, fraud risk, and the 30-day deadline. The committee then heard House Bill 2595, which would extend the time limit for collateral attacks on criminal judgments from one year to three years and allow the Office of Public Defense to provide direct representation in those matters. Supporters, including incarcerated individuals, defense-related advocates, and the League of Women Voters, argued the current deadline is too short for pro se prisoners and juvenile offenders to discover and litigate claims; prosecutors and victim advocates opposed it, citing finality, workload, and harm to victims. Finally, House Bill 2597 would create a state civil cause of action for violations of federal constitutional rights during civil immigration enforcement, with damages, fees, and a three-year limitation period. The sponsor and supporters framed it as an accountability measure for constitutional violations, while law enforcement and other opponents warned about unclear definitions, immunity issues, and unintended consequences. The hearing on HB 2597 was concluded, and the committee noted an executive session on the bill would occur later.

Transcript Highlights:

• Jamie Fisher, Parks, Heritage and Tourism, CFO. Okay, thank you.

Committee: All ALC-PEER

Summary: The committee met to consider a series of temporary appropriation requests, reserve fund transfers, federal grant appropriations, and review items. Early items included a $32 million appropriation and matching reserve transfer for the Department of Education’s educational freedom account program, a $476,000 request for the State Crime Lab, and a $90,000 assessment coordination request from DFA. Members asked questions about the assessment contract costs, and the item was approved. The committee also approved a $1 ARPA return to the CDC and a Department of Human Services reallocation package that moved general revenue and positions among divisions to meet client needs. The most extensive discussion centered on a $32 million restricted reserve transfer for the educational freedom account program. Members questioned the growing number of participating students, the program’s long-term funding needs, and safeguards against improper purchases. Agency representatives said about 44,000 students were being funded, that reimbursements and marketplace purchases are reviewed, and that reporting and audit controls are in place, though not every instance of fraud can be prevented. The committee approved the transfer after discussion. Members also approved smaller cash and federal grant items, including funding for a teacher shortage data dashboard, All Kids Bike grants, crime lab outsourcing, veterans cemetery operations, and a podiatric medicine licensing investigation fund. The most contentious item was a $7 million federal Forest Legacy grant request for Central Arkansas Water and the Department of Agriculture to acquire land in the Maumelle watershed, including acreage in Perry County and Pulaski County. Members debated water quality, development pressure, property tax impacts, local support, and whether Perry County had been adequately consulted. Agency and company representatives argued the acquisition would protect drinking water, preserve forested watershed land, and support recreation, while some legislators emphasized the county’s tax and development concerns. Senator Davis moved to defer the item to the full Legislative Council and to request removal of the Perry County portion; that motion passed. The committee then reviewed the remaining items, including a Veterans Affairs pay plan request, and adjourned.

Transcript Highlights:

• So it is a big fiscal impact, and that's why we had the C-suite, the CEO, the CFO, telling us, hey, you

Committee: House Finance

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The committee then received a Department of Revenue update on the Antio-related legislation. DOR explained the Washington Supreme Court’s Antio decision on the B&O deduction for investment income, the department’s post-decision guidance, and the 2025 legislative changes in HB 2081 and SB 5167, including an expanded voluntary disclosure agreement for entities with unreported investment income. DOR said the expanded program offers broader penalty and interest relief and applies to both registered and unregistered businesses, but participation has been minimal so far because additional implementation questions remain unresolved. The committee next heard the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through the first 10 months and a major increase in applications after TurboTax integrated the credit. Officials said the program reached more than 409,000 children this year, but demographic response rates fell because TurboTax did not present optional demographic questions. DOR also discussed outreach efforts, the end of funding for community outreach partners after 2025, and challenges including fraud involving third-party preparers, turnover in eligible households, immigration-related reluctance among ITIN holders, data-sharing barriers, and difficulty verifying self-employment income. Members asked about fraud remedies, and DOR said it can pursue recipients for fraudulent refunds and may work with law enforcement, but the statute does not provide direct penalties against preparers. The final DOR presentation covered implementation of Engrossed Substitute Senate Bill 5814, which expanded retail sales tax to certain services effective October 1. DOR described its outreach and guidance process, including 16 listening sessions, an online survey, a centralized guidance page, special notices, and about 95,000 direct taxpayer contacts. Officials said ruling requests surged sharply around the effective date, especially for live presentations, advertising, and software/IT services, and formal rulemaking is expected after the 2026 session. Committee members questioned whether the fiscal note anticipated impacts on schools and nonprofits and whether the department’s estimates should be revisited. The committee then heard stakeholder testimony from Expedia, T-Mobile, and the Construction Industry Training Council, followed by Clover Park School District and Seattle Theatre Group/Inspire Washington. Witnesses argued that SB 5814 creates complexity, uncertainty, and competitive disadvantages for Washington businesses and nonprofits, especially for digital advertising, IT, training, and live presentation services. School and nonprofit representatives said the tax raises costs for education, apprenticeship, arts, and cultural programming, with Clover Park warning of a roughly $1.2 million annual hit to special education-related contracted services. No votes were taken; the meeting ended with the chair saying the committee would continue working on SB 5814 issues in the next legislative session.

Transcript Highlights:

• So it is a big fiscal impact, and that's why we had the C-suite, the CEO, the CFO, telling us, hey, you

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.

Transcript Highlights:

• I'm going to confirm with our CFO so I don't give you an incorrect amount. Thank you, Madam Chair.

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• cities that are raising their impact fees by this thing because there's this guy named Blaze, who's a CFO

Summary: The Intergovernmental Affairs Subcommittee met for its first meeting of the 2026 session and took up impact fees, with an opening overview from Eric Poole of the Florida Association of Counties. Poole explained that impact fees are one-time charges on new development used only for new infrastructure capacity, not existing deficiencies or maintenance, and must satisfy the dual rational nexus test. He traced their history in Florida and described how comprehensive plans, concurrency, and later mobility fees relate to local infrastructure funding. He argued that impact fees are restricted, tied to capital improvements, and are one tool for paying for growth. Panelists representing counties, cities, builders, and community developers largely agreed that growth creates real infrastructure costs but differed on how those costs should be allocated. County and city representatives said impact fees are a necessary, targeted way to fund roads, water, sewer, fire, schools, and parks without spreading costs across all taxpayers. They pointed to long periods without fee updates, rising construction costs, and examples of large increases justified by studies. Builder and developer representatives argued that fees are often unpredictable, can be doubled or tripled, and contribute to housing affordability problems; they also said the system can be inconsistent across jurisdictions and may encourage sprawl. Several witnesses emphasized that fees must be transparent, proportional, and tied to actual benefits, and some suggested a statewide framework or mobility-fee model with more consistency and peer review. Members asked about how long local governments can hold fee revenue, whether fees can generate profit, what they can be spent on, and whether they can pay for police stations, fire stations, or other public safety facilities. Witnesses said the funds must be used for capital projects and cannot be used for salaries or unrelated purchases, and that refunds may be required if money is not spent within the local ordinance’s timeframe. The discussion also covered examples of local fee increases, the use of impact fees versus direct construction or “pipelining” of infrastructure, and concerns about level-of-service changes and extraordinary-circumstance increases. No votes were taken; the meeting ended after the panel discussion and member questions, with the chair noting the conversation would continue.

Transcript Highlights:

• So could we maybe see just that, you know, don't want to add any work, but maybe your CFO could put together

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• Clayton Gibson, CFO, University of North Texas, and I'm neutral. Thank you. Mr.

Bills: HB42 , HB 125 , HB 1233 , HB2853 , HB3148 , HB3326 , HB3701 , HB4066 , HB4361 , HB4762 , HB4909 , HB4912 , HB42 , HB125

Committee: House Higher Education

Keywords: higher education, funding, financial allocation, state budget, Texas A&M University, University of Houston, education funding, medical education, osteopathic medicine, healthcare workforce, Tarleton State University, industry-recognized credentials, workforce development, career opportunities, feasibility study, student fees, university funding, student union, education, UT El Paso