Transcript Highlights:

• </c> bring the energy cost down. bring the energy cost down.
• costs, or not?
• Um, anytime that there's a utility that operates in more than one state, there'll be cost allocations
• </c> transmission costs, or not? transmission costs, or not?
• Jen Carver is of operation operations.

Bills: SB8

Committee: Joint Natural Resources & Energy

Transcript Highlights:

• But there's a cost with that.
• We also have financing the SOS for our convocation arena, convocation operations, stadium operations
• like plant operation and maintenance.
• The costs around 1.1 million dollars.
• The been a Quest scholarship program cost the university around $354,000 and the homeless waiver costs

Transcript Highlights:

• No cost to GR.
• Item 9, the recommendations exclude funding for techs.share of the operating costs of the Amtrak Heartland
• of the operating costs of the Amtrak Heartland Flyer Next biennium.
• Rising operational cost. loss of pre-K enrollment to the ISD, right rate constraints, among others.
• And so, as our operational cost go up as my liability insurance premiums went from $30,000 to $90,000

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Transcript Highlights:

• </c> cost concerns. cost concerns.
• </c> costs continue to grow. costs continue to grow.
• Now, when the new driver's license system is complete, we will have some operating cost with it.
• Now, when the new driver's license system is complete, we will have some operating cost with it.
• And uh that that operating cost with it.

Summary: The House Budget Review Subcommittee on Transportation met without a quorum at first, then later approved the minutes once quorum was established. The committee heard presentations from Transportation Cabinet officials Mike Hancock, Jeremy Slinker, and Sean McCarnieran on maintenance, vehicle regulation, general administration, highways, and related capital projects. Hancock emphasized that maintenance is the cabinet’s most visible public service, especially for snow and ice removal and routine roadway upkeep, and said rising costs have outpaced funding. He cited a 61% increase in highway construction costs since 2020 and said maintenance spending was $488 million in FY 2024 and $511 million in FY 2025, while the FY 2026 baseline request was $483.3 million. The cabinet’s additional maintenance request would add $23.6 million in FY 2027 and $38.6 million in FY 2028, with expected impacts on litter pickup, mowing, vegetation management, and pothole repair if not funded. The cabinet also outlined five maintenance-related capital projects: additional funding for Ballard County maintenance/salt storage, Hopkins County maintenance/salt storage, Whitley County maintenance/salt structure, and the District 2 office and materials lab, plus reauthorization of the Breckinridge County maintenance and salt facility. Hancock also asked for budget language allowing the cabinet to use unexpected restricted and federal funds more quickly, similar to existing authority for federal earmarks. McCarnieran described the governor’s inclusion of funding for the ASHTOWare system, employee health exams, priority IT projects, and a District 7 office renovation request, noting that some items were not funded because they ranked low among competing projects. He also said the governor’s budget included a $7.5 million annual maintenance pool for the cabinet’s 1,200 facilities and requested additional restricted fund authority for Trimark and the Cumberland Gap Tunnel. Slinker focused on the Department of Vehicle Regulation, saying recent investments in staffing and equipment had reduced wait times and improved customer service in driver licensing offices. He requested $535,600 to keep temporary contract workers in place for the rest of the year, warning that without it regional office operations would have to be reduced. He said the surge in demand was driven by new 15-year-old licensing requirements, vision testing, and Real ID implementation, but believed the volume was beginning to level out. He also outlined FY 2027 and FY 2028 plans totaling $20.38 million and $19.85 million, including six new regional offices and a shift away from temporary workers toward state positions. Additional requests included $106,000 for debt service on the new driver’s license modernization system and operating costs of $5 million in FY 2027 and $2.5 million in FY 2028 to support the transition from the old system. Members asked about the cabinet’s funding sources, and officials said the road fund is the primary source, supported by motor fuels tax, usage tax, driver-related receipts, and some restricted funds; they stressed that the requests were not for additional general fund dollars. Questions also covered employee health exam reimbursements, the annual Trimark/Cumberland Gap contract, and the District 7 renovation request. No votes were taken on the budget items during the meeting, beyond approval of the minutes.

Transcript Highlights:

• might be raising the cost of TNC.
• Is the cost of insurance.
• Just, yeah, what are your general cost drivers?
• TNC operations. Next slide.
• Precise trip activity data can provide information on cost and revenue that operators may not wish to

Committee: House Communications and Conveyance

Transcript Highlights:

• accounts in the operating budget.
• and staff in order to pay for basic operating costs.
• and staff in order to pay for basic operating costs.
• and staff in order to pay for basic operating costs.
• cost.

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:

• and maintenance costs. ...analysis and development and basic operations and maintenance costs.
• It is actually sound, cost-based, scaled for the cost of living, and designed to promote efficient operations
• for core services and the cost of administration.
• cost of living, and designed to promote efficient operations for the purposes of providing funding in
• The cost of directly with patients.

Committee: Senate Appropriations Committee on Health and Human Services

Summary: The Appropriations Committee on Health and Human Services heard presentations on the governor’s proposed fiscal year 2026-2027 budget for the health and human services agencies. Kendall Kelly outlined the overall HHS budget at $48.5 billion, with AHCA accounting for the largest share, and agency heads then highlighted major proposals for Medicaid behavioral health redesign, APD waiver enrollment and facility needs, DCF child welfare, opioid, and mental health investments, DOEA funding for Alzheimer’s, home care, and community services, DOH funding for cancer research, public health initiatives, and lab capacity, and VA funding for facility improvements, cybersecurity, and medication management. Several members praised specific proposals, including increased reimbursement for private duty nursing, Alzheimer’s supports, and the Florida FIRST blood-in-ambulance initiative. Senators also questioned the proposed changes to the AIDS Drug Assistance Program (ADAP), with the Surgeon General explaining that the department expects a reduction in covered patients from about 30,000 to about 20,000 because of funding pressures tied to rebates, federal changes, and premium tax credit issues. Public testimony strongly criticized the ADAP changes, citing lack of transparency and warning that many patients could lose access to medications. Other questions focused on the Office of Minority Health and Health Equity, DCF’s substance abuse and mental health data dashboard, Kids Care/CHIP expansion implementation, APD bed and facility planning, and the FX Medicaid technology project. DCF said about $7 million is set aside for the dashboard system, and AHCA said the governor’s budget includes $124.4 million for FX maintenance and continued module development, with $13.5 million to begin claims processing work. The committee did not take a substantive vote on the budget presentations and adjourned after questions and public testimony.

Transcript Highlights:

• But one of the bigger challenges in addition to cost is cost uncertainty.
• profile can operate on its own.
• With BWXT, to start operating in 2028.
• What technology needs to be in place to operate them?
• It became operational.

Summary: The meeting was an extended briefing from Idaho National Laboratory officials on the lab’s mission, its role in nuclear energy research, and the federal push to accelerate advanced reactor deployment. Speakers described INL’s size and capabilities, including test reactors, fuel and materials facilities, cybersecurity and critical infrastructure work, and partnerships with DOE, the NRC, the Department of Defense, and private companies. They emphasized that the lab is supporting both commercial nuclear development and national security work, while also training a large intern workforce. A major theme was the current federal effort to streamline nuclear regulation and speed up licensing and demonstration. The speakers said recent executive orders and DOE/NRC coordination are reducing redundant requirements, shortening environmental review timelines, and aiming for three new nuclear systems to reach criticality by July 4, 2026. They argued that regulatory uncertainty has been a major driver of nuclear cost and that the administration’s actions, along with DOE’s pilot and demonstration programs, are intended to rebuild the domestic supply chain and industrial base. The discussion also focused on advanced reactor types, including small modular reactors, microreactors, molten salt concepts, and liquid-metal designs. Officials said these technologies are being developed for data centers, military bases, remote communities, industrial heat, hydrogen production, and other nontraditional uses. They highlighted several projects and companies, including Oklo, Aalo, Radiant, X-energy, TerraPower, Kairos, and DOE’s MARVEL and Project Pele efforts, and said some reactors are expected to reach criticality or operation in the next few years. Questions from attendees covered safety, public health impacts, materials and heat management, waste or used fuel handling, costs, and whether nuclear could remain competitive against other energy sources; the speakers responded that advanced reactors are designed with passive safety features, that used fuel should be viewed as a resource, and that cost remains highly design- and supply-chain-dependent.

Transcript Highlights:

• for increased trial court operational costs, $11 million for increased pay rates for Supreme Court and
• So the other 15% were startup costs.
• Redesigns affect real costs and risks.
• We're cost recovery facilitators.
• The costs associated with those rescrapes are typically absorbed into the operation, but But again, I

Transcript Highlights:

• We operate our own transportation and supply costs, technology inflationary costs, curriculum costs,
• We operate our own transportation and supply costs, technology inflationary costs, curriculum costs,
• We operate our own transportation and supply costs, technology inflationary costs, curriculum costs,
• We operate our own transportation and supply costs, technology inflationary costs, curriculum costs,
• We operate our own transportation and supply costs, technology inflationary costs, curriculum costs,

Bills: HF957 , HF877

Committee: House Education Finance

Transcript Highlights:

• That would be one-time cost of $320,000 in fiscal year '27 that would be paid out of the DVS operating
• </c> those staff costs. those staff costs.
• </c> cost is. cost is.
• </c> vehicle operations. vehicle operations.
• </c><01:40:15.160><c> in</c> costs of of that business operating in costs of of that business operating

Committee: Senate Transportation

Transcript Highlights:

• at 50% cost recovery for biotoxin fees.
• And our operational costs, including staffing and equipment, have increased significantly since then.
• If your fee cost, if your license costs $100, you have a 200% increase this year.
• So personally, what is this going to affect your operation license cost over the next few years?
• So our company costs are over $50,000 a year just to be able to operate and sell our shellfish within

Summary: The committee heard public testimony on Senate Bill 5816, which would add juice grapes to Washington’s Agricultural Marketing and Fair Practices Act. Staff explained that the bill would allow juice grape producers to form an accredited association to negotiate with processors under the same timelines used for pears, and the prime sponsor said the measure was intended to help growers obtain fairer prices. A grape grower testified that Washington producers face a small number of buyers, little real negotiation, and prices far below New York’s, arguing the bill would give growers a way to bargain collectively. The public hearing closed with 47 people noted in support and one in opposition. The committee then heard Senate Bill 5971, which would create a green fertilizer incentive program for low-carbon nitrogen fertilizer production and use in Washington. Staff described the bill as directing WSDA to establish the program, adopt rules by 2028, and report to the Legislature, with costs shown in the fiscal note. The prime sponsor and several supporters, including Atlas Agro, a port representative, labor, NRDC, WSDA, the League of Women Voters, and the Washington State Potato Commission, said the bill could reduce greenhouse gas emissions, support local manufacturing and jobs, stabilize fertilizer supply and prices for farmers, and help Washington compete for federal clean hydrogen tax credits. WSDA said the program was implementable with consultation and that the Climate Commitment Act could be a funding source, though it noted rulemaking costs. The committee then held a work session on commercial shellfish fee assessments after the Department of Health adopted major fee increases for shellfish licensing and certification. Shellfish growers and association representatives said the increases—described as ranging from roughly 233% to 789% overall, with some individual licenses rising much more—would hit small and family farms hardest, could force closures, and were based on a fee structure they said is outdated and not tied well to production. DOH explained that the program has long relied on general fund support, that federal shellfish safety requirements must be maintained, and that the new fees are intended to move the program toward full cost recovery after years without increases. The department said it had used a phased approach, reopened rulemaking to look for a fairer structure, and would continue working with industry and the Legislature; no vote was taken during the work session.

Transcript Highlights:

• He and his wife Joanna own and operate a diversified farming operation that, in addition to soybeans
• 10 to 15 percent below the cost of a domestic growers on-farm price, let alone the cost of dehydration
• We need controls on the cost of our labor.
• , the administrative cost, the housing cost, and maybe, what's the word, prorate that in consideration
• It was an important part of our operation.

Committee: Senate Agriculture, Nutrition, and Forestry Committee

Keywords: agriculture, avian flu, bipartisan farm bill, economic challenges, poultry, dairy, specialty crops

Summary: The committee meeting focused on crucial discussions surrounding the challenges faced by the agriculture sector, particularly concerning avian flu and its impact on poultry and dairy producers. Members provided insights into the economic struggles within the industry, emphasizing the need for a new bipartisan farm bill that addresses the diverse needs of specialty crop and livestock producers. Witnesses from various agricultural sectors spoke about their experiences, illustrating the high costs, regulatory burdens, and emerging diseases that threaten their operations. The meeting underscored a commitment to exploring solutions that will help maintain market stability and ensure food security.

Transcript Highlights:

• The Governor's budget maintains the 2025 Budget Act Agreement to support Cal Fire operation costs with
• Another piece is that they are clarifying how state operations costs are treated under this framework
• But on Tier 1, on state operations, it includes a wide range of departments far beyond the cost of...
• It's a state operations cost required by legislation, and it fits and aligns with GGRF enabling statute
• It's a state operations cost required by legislation, and it fits and aligns with GGRF enabling statute

Transcript Highlights:

• before they are able to operate. operate.
• In that process, we want to ensure that these operators are set up to operate in compliance with the
• have tremendous costs related to operating physical kiosks, cash handling, armored car services, as
• What states don't you all operate in? New York is the only state where we're not operating.
• Yes, you all operate there. We do operate there. I don't know how much we pulled.

Bills: SB383 , SB1012 , SB1181 , SB1705 , SB2075 , SB2221 , SB2586 , SB2864 , SB2994

Committee: Senate Business & Commerce

Transcript Highlights:

• What we call the revenue requirement, as you've heard this morning, is the authorized cost of operating
• It includes costs like operations and maintenance and long-lived capital assets that are recovered over
• Utilities earn their return only if they manage costs within approved budgets, operate prudently, and
• Utilities earn their return only if they manage costs within approved budgets, operate prudently, and
• What we are seeing is that a lot of those costs have been operational.

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, reliability, and wildfire-related costs. The chair framed the discussion around the challenge of transitioning to a cleaner grid while keeping bills affordable and the system reliable, and noted the hearing also served as the annual update from the CPUC and Public Advocates Office. Professor Severin Borenstein gave a primer on utility regulation, explaining the split between deregulated generation and regulated transmission/distribution, the basics of cost-of-service regulation, and the role of return on equity. He argued that high allowed returns can encourage capital-intensive spending and that many public policy costs now embedded in rates would be better funded through the state budget, while warning that price caps or performance-based regulation are not silver bullets. CPUC President-designate Alice Reynolds described the commission’s role as economic regulator of investor-owned utilities and said affordability is being addressed through rate case scrutiny, reasonableness reviews, and legislative direction. She said wildfire mitigation and insurance costs have been major drivers of rate increases, but some wildfire-related costs are time-limited and will roll off rates over time. She also highlighted progress on clean energy procurement, battery storage growth, and integrated resource planning to meet climate goals while maintaining reliability. Reynolds said the CPUC is reviewing utility spending, disallowing imprudent costs where appropriate, and litigating at FERC to challenge transmission costs. Members pressed both witnesses on several issues, including whether rates are being inflated by legislative mandates and balancing accounts, whether utility returns are too high, and whether the state should shift more public-policy costs off electric bills and into the General Fund. Senators also raised concerns about load growth from data centers and ports, gas-system stranded assets as electrification advances, and whether the CPUC is over-regulating or discouraging innovation. Reynolds said the CPUC is working with the Energy Commission, CAISO, and the Air Resources Board on a holistic planning process, and pointed to tools such as interconnection reforms and demand flexibility. No votes were taken; the hearing was informational, with several follow-up requests for reports and data.

Transcript Highlights:

• And the maintenance and operation for that would be maintaining the system, but then the operations would
• “Moving to strictly maintenance and operation.
• waiver what the cost would be.
• Because we didn't have a clear plan on what the cost was and how we would fund it.
• Representative Garner, is this for county operations? You are recognized.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee reviewed three DHS out-of-state service contracts: a $690,000-plus sole-source contract for DCFS with Evident Change for maintenance and operation of the Child Welfare Structured Decision-Making practice hub; a $1.2 million sole-source contract for County Operations with Sifter Solutions to support a SNAP waiver compliance solution; and a $156,000 contract for Developmental Disabilities with Samaritan Integrative Services for psychiatric services at the Southeast Arkansas Human Development Center. The chair and staff explained the contracts and noted that the Evident Change and Sifter contracts were sole-source due to the proprietary nature of the systems or services involved. Most of the discussion focused on the Evident Change contract. Members questioned DCFS about long-term dependence on the vendor, the lack of a competitive bid, the absence of a clear off-ramp, and whether the state was paying more overall as the work was split into multiple contracts. DCFS said the contract before the committee was only for maintenance and operations of a web-based platform used daily for safety assessments and case planning, while a separate Evident Change contract covers case reviews, CQI work, and data management. The vendor said it was continuing to reduce its role and had begun off-ramp discussions, but members remained concerned that the state was too reliant on the vendor. Staff said the contract had to be approved by May 31 or the system could be turned off. The committee also discussed the Sifter Solutions contract, which supports Arkansas’s SNAP waiver pilot by providing a dynamic list of excluded products and a consumer app that scans barcodes and provides nutrition information. DHS said the waiver is intended to improve the nutritional value of SNAP benefits, that the contract is funded with remaining federal SNAP Nutrition Education dollars that would otherwise be returned, and that the University of Pennsylvania will conduct the evaluation at no cost. Members asked about the benefit to Arkansas, whether the app would include nutrition and budgeting information, and whether the state would own the application or need future renewals. DHS said the two-year term was intentionally aligned with the waiver period and that future procurement options could change. After discussion, the committee noted the items as reviewed and adjourned without objections or votes recorded in the transcript.

Transcript Highlights:

• We're operating in several states.
• Operation flow.
• of interest or a prior operator.
• So we would read: 'Operator of Interest means the most recent solvent prior operator of record or any
• , successors, the costs.

Committee: House Natural Resources & Environment

Transcript Highlights:

• It's the most cost effective.
• It's going to cost a little bit more.
• It's going to cost a little bit more.
• they transferred their operations.
• they transferred their operations.

Committee: Joint Economic & Rural Development & Policy Committee

Transcript Highlights:

• project, but title company costs, closing costs, and legal fees we cover from the program fees.
• They retired last year, leading to increased costs at a small agency like Clare, where those costs can't
• Operating budget.
• into the other cost category.
• the FY25 operating expenses.