Transcript Highlights:

• It is to pay workers' compensation benefits to injured state employees.
• The Division of Children and Family Services requests a transfer in of $215,000 to pay overtime for social
• This is to pay commissary invoices and maintenance repairs.
• This is pay plan appropriation and performance fund transfer requests.
• Twelve agencies are requesting $442,000 in pay plan appropriation to pay salaries and match.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee heard a series of appropriation requests and contract reviews across multiple sections. In Section B, members approved temporary appropriations for the Court of Appeals, Commerce/Aeronautics, and Insurance-related payments and refunds. Section C ARPA requests from DHS were approved to return unused federal funds. Section D infrastructure-related appropriations, including wildfire preparedness, broadband BEAD funding, forestry support, recycling, and oil and gas sample preservation, were approved after questions about broadband audit controls and performance safeguards. Section E DHS reallocations were approved, including large transfers within Medical Services from hospital medical to private and public nursing home lines, along with smaller transfers for children and family services, developmental disabilities, and youth services; members asked about the source and purpose of the medical services transfer. Sections F and G were reviewed, covering cash fund requests, federal grants, and miscellaneous grants, including community college storm repairs, corrections commissary and maintenance, 911 enhancements, maternal health, disability determinations, state police equipment, digital newspaper archiving, and CDL data improvements. In Section H, the committee reviewed pay plan appropriations and performance fund transfers tied to the new Class and Comp pay plan. Section I reviewed three methods of finance for UA Little Rock, UAMS, and the University of Arkansas system. In Section J, the committee reviewed discretionary grants, including a $1.4 million HIV services grant and nine tobacco prevention subgrants through UAPB. Members questioned the effectiveness, metrics, and addresses of some tobacco-cessation arts-based grantees, especially Arts Absolutely Inc.; after discussion, Representative Kavanaugh moved to expunge the vote on J2 and refer it back for review at a later ALC meeting, and that motion passed. J3, a Department of Energy and Environment grant for propane safety training and e-waste recycling services, was then reviewed. The committee also reviewed contracts in Section K. K-1 ratified emergency management nuclear planning work performed during a transition between agencies. K-2 construction contracts included architectural and engineering services for corrections, National Park College signage, a Razorback Road parking facility, and UAMS cyclotron installation. K-3 intergovernmental contracts covered health, education, autism waiver, stroke, newborn screening, Medicaid evidence review, and radiation testing services. K-4 out-of-state contracts included staffing, IT, tobacco prevention, audit, marketing, planetarium, recruitment, and janitorial services; Senator Irvin noted one contract appeared to belong in the out-of-state list rather than intergovernmental. K-5 in-state contracts covered staffing, cleaning, re-entry and treatment services, foster care and disability services, hearing officers, asbestos abatement, campus IT support, and janitorial work. The meeting ended after a brief personal update from Senator Irvin about tornado damage in Stone County and thanks to members for their concern, followed by adjournment.

Transcript Highlights:

• </c> the pay of these forensic um examiners. the pay of these forensic um examiners.
• of Human Services pays them considerably more<00:09:01.120><c> than</c><00:09:01.360><c> what</c><00
• So, we upped the pay for them, courts.
• So, we upped the pay for them, not<00:09:05.360><c> to</c><00:09:05.519><c> the</c><00:09:05.839><c>
• but certainly hold them bump in pay but certainly hold them harmless<00:10:57.200><c> for</c><00:10:

Transcript Highlights:

• It comes at a lower cost to pay people's standard rates.
• Now it's $80, I believe, and the Commonwealth pays it.
• [Paul Harrow] The inmates are paying for it.
• has fully funded both our 1510, which pays the private attorneys, and our 1520, which pays all of the
• to raise the rates that we pay. ...witnesses, and we've been able to raise the rates that we pay expert

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• For example, a $400 bill, which isn't unusual these days, consumers are paying $9.54 for clean energy
• Ratepayers, with some effort, can see how much they're paying for the policies this body has passed.
• It relates to overtime for certain employees, domestic workers, and live-in domestic workers.
• Now before you, that relates to overtime for certain employees, domestic workers and live in domestic
• They will allow them to pay off that debt.

Transcript Highlights:

• surplus can be spent on the six items by the Constitution: 25% to the Budget Stabilization Fund, 25% to pay
• surplus can be spent on the six items by the Constitution, 25% to the budget stabilization, 25% to pay
• An exceptional amount of money for overtime, their inability to hire folks to work a lot of the nighttime
• And of course, we have funded their overtime since my early days in the legislature.
• So, from a Louisiana taxpayer perspective, when it comes to the Louisiana taxes you pay, that is state

Summary: The committee met to review budget and fiscal items, beginning with a roll call and a reminder about severe weather and the need to keep the meeting brief. Members first received the January fiscal status statement and certified the prior-year surplus at $577,073,871, with no changes from the prior month. The fiscal status statement was approved without objection. Staff then reviewed the five-year baseline budget and continuation/standstill budgets, noting projected imbalances in later years driven by revenue declines, including the redirection of motor vehicle sales tax, and by rising costs such as inflation and Medicaid adjustments. Representative Amadee asked about Medicaid growth and SNAP administrative costs, and staff explained that the SNAP federal match change is separate from Medicaid. The governor’s executive budget presentation focused on a third year of standstill budgeting, efficiency savings, and the impact of one-time reductions and agency reorganizations. Officials said the budget avoids recurring spending from nonrecurring revenue and incorporates savings from prior efficiency efforts. Major items discussed included funding for LA Gator vouchers, the high-impact jobs program at Louisiana Economic Development, DCFS modernization, corrections overtime and offender costs, Angola population growth, nursing home and MCO adjustments at LDH, and additional support for the MJ Foster Scholarship and Board of Regents systems. Members also discussed the distinction between state general fund and federal funds, the effect of inflation on specific purchases, and the use of surplus dollars, including deposits to the Budget Stabilization Fund and UAL paydown. No formal action was taken on the budget presentation. Later items included the FY27 expenditure limit calculation of $20.1 billion, up $953 million from FY26, and the annual comprehensive financial report, which received an unmodified audit opinion. The committee approved a BA-7 increasing federal funds for the governor’s office by $2 million for U.S. DOT-related infrastructure and rural transit work. It also approved Facility Planning and Control requests to add five higher education deferred maintenance projects and to combine two Baton Rouge Community College projects. CPRA received approval to extend contracts with Coastal Estuary Services and Access Sciences for monitoring and records-management services. The committee also approved a legislative intent clarification for a $500,000 appropriation to the New Orleans Recreational Development Foundation. The final major discussion was a presentation on a weighted caseload study for appellate and district courts. Judicial officials explained that the study updates an outdated formula used to assess judgeship needs, incorporates specialty courts and commissioners, and is intended as one tool in a broader collaborative process with the legislature. Members raised concerns about the number of judges, court funding, and how Louisiana compares with other states. No vote was taken on the study, but the discussion emphasized future collaboration on judicial resource allocation and possible structural changes.

Transcript Highlights:

• And we don't bargain anything having to do with what people pay into the fund or how they get paid out
• These students do not pay tuition largely because they are under state-authorized tuition waivers, so
• Carve-outs would also include the classification, discipline, the grievance procedures, and overtime,
• The grievance procedures and overtime, because those provisions are different for our managers, as well
• Staff, anything that I'm not paying attention to? I don't think so, Senator Robinson.

Committee: Joint Joint Committee on Employment Relations

Summary: The Joint Committee on Employment Relations met on May 8, 2026, to review goals and objectives for the 2027–2029 master collective bargaining cycle and to hear updates on higher education and Washington Management Service bargaining. OFM’s Jenny Sheehan outlined the state workforce, noting that most employees are represented, the workforce remains heavily governed by civil service rules and CBAs, and the state is entering bargaining under a constrained hiring and budget environment. She described the bargaining timeline, the role of the June revenue forecasts in determining whether targeted compensation increases can be funded, and the state’s goals of affordability, maintaining labor relations, supporting equity, and addressing non-economic issues such as AI use, leave, immigration-related workplace concerns, and union access in a hybrid work environment. Sheehan also reviewed the 2025–2027 bargaining cycle, including the prior WPEA ratification issue and the requirement that tentative agreements be submitted by October 1 for financial feasibility review and possible legislative funding. She said the 2025–27 agreements cost about $1.2 billion in general funds and $1.7 billion total, excluding the later-funded WPEA agreements. In response to a question, she explained that paid family and medical leave is not bargained over directly because it is governed by statute and ESD rules. She then presented on Washington Management Service bargaining, explaining that only certain WMS employees are eligible to bargain, that representation remains small, and that current WMS contracts are handled through addenda to existing agreements. She also described interest arbitration for certain groups, including ferries and public safety-related employees, and said arbitration awards still must be financially feasible and submitted by October 1. The committee also heard from Western Washington University and the University of Washington on higher education bargaining. Western described its locally bargained contracts, the importance of local bargaining for workload, tenure, grievance, and safety issues, and the impact of the state fund split on budget planning. Western said it has no state funding for student compensation and has requested inclusion of student employees in the wage base. UW outlined its large workforce and the different bargaining frameworks under RCW 41.56 and 41.80, emphasizing that state funding and tuition make up only a portion of its budget and that the fund split and health care cost increases significantly affect compensation planning. UW also highlighted its request for state funding for academic student employee compensation, saying rising costs are reducing the number of positions and affecting class sizes and the academic pipeline. No votes were taken, and the meeting adjourned after members discussed the upcoming bargaining and arbitration timelines.

Transcript Highlights:

• perhaps hundreds of thousands of federal employees, it's not just a crisis for those families who have to pay
• </c><00:04:32.880><c> mortgage</c><00:04:33.280><c> and</c><00:04:33.520><c> everything</c> have to pay
• the mortgage and everything have to pay the mortgage and everything else.<00:04:34.400><c> It's</c><
• Last two years ago was the first budget year where we didn't go into overtime in the last couple decades
• Last two years ago was the first budget year where we didn't go into overtime in the last couple decades

Transcript Highlights:

• a co-pay, my insurance has to pay for an office visit, and I have to take up the valuable time of a neurologist
• to pay at co-pay<00:09:06.959><c> my</c><00:09:07.079><c> insurance</c><00:09:07.560><c> has</c><00:09
• :07.680><c> to</c><00:09:07.839><c> pay</c><00:09:08.000><c> for</c><00:09:08.160><c> an</c> co-pay my
• insurance has to pay for an co-pay my insurance has to pay for an office<00:09:08.760><c> visit</c><
• </c><00:46:45.720><c> today</c> we're making your work overtime today we're making your work overtime

Bills: HF2382 , HF639 , SF1075 , HF1243 , HF1087 , SF1360 , HF739 , HF2337 , HF1220 , HF712 , HF1219

Committee: House Transportation Finance and Policy

Keywords: accident reporting, law enforcement, data privacy, contracted service providers, public safety, HF639, Minnesota driver license, Department of Public Safety, driver medical review, loss of consciousness, voluntary control, seizure, nonepileptic seizure, epilepsy, antiseizure medication, physician statement, medical certification, commercial driver, CDL, medical examiner's certificate

Transcript Highlights:

• In the best way we can, we have teams working overtime to process these.
• To pay because those situations are different for different individuals.
• So it's just, I think it creates suspicion among the people that pay it.
• So it's just, I think it creates suspicion among the people that pay it.
• My co-pay for my health prescriptions just went up.

Transcript Highlights:

• </c><00:02:47.319><c> into</c> obligations um obligations to pay into obligations um obligations to pay
• Those workers lost an estimated $2.9 to $6.2 billion in compensation, such as pay, leave, overtime pay
• </c><00:13:00.240><c> leave</c><00:13:00.600><c> overtime</c> compensation such as pay leave overtime
• compensation such as pay leave overtime pay<00:13:01.360><c> health</c><00:13:01.639><c> insurance</
• c><00:13:02.000><c> and</c><00:13:02.199><c> retirement</c> pay health insurance and retirement pay health

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• So the first line item expense of $18,700 was for overtime.
• Currently, patients are facing steep emergency room co-pays for non-insured.
• They also provide good-paying jobs, union jobs, nurses, for example.
• for a standalone ER would be three times more than what we pay for urgent care.
• But those states are paying them value-based pay. for their communities.

Bills: AB568 , SB90 , SB133 , SB147 , SB229 , SB233 , SB240 , SB245 , SB280 , SB378 , SB393 , SB417 , SB434 , SB494 , SB495

Committee: Assembly Ways and Means

Transcript Highlights:

• You pay co-pays if you're in traditional Medicare. And the rest comes out of the general fund.
• YOU PAYING CO-PAYS IF YOU'RE IN TRADITIONAL MEDICARE. AND THE REST COMES OUT OF THE GENERAL FUND.
• WE PAY -- TREASURY PAYS THE INTEREST BACK TO THE SOCIAL SECURITY TRUST FUND TWICE A YEAR.
• Maybe if we actually talk about what we pay and what we get for what we pay.
• They can't stay employed if we don't pay them.

Bills: HB1670 , HR493 , HR492 , HR491 , HB5140 , HB4922 , HR713 , HR721 , HB2721 , HR707

Keywords: fertility, health benefits, family planning, assisted reproductive technology, employees, fertility treatment, ART, in vitro fertilization, IVF, infertility, family building, reproductive health, oocyte preservation, sperm preservation, embryo preservation, artificial insemination, gamete donation, embryo genetic testing, federal employee health benefits, FEHB

Transcript Highlights:

• </c> requires electric cooperatives to pay requires electric cooperatives to pay retail retail retail
• Number two, our customers that are member-owners and paying solar fees pay the utility approximately
• Our customers are paying more in fees than what the utility pays in excess energy, and now they want
• us to pay even less.
• fees and paying some uh and paying fees and paying infrastructure<01:37:28.360><c> costs</c><01:37:28.639

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• I think the rate of pay increases and the schedule of pay increases will be questions we have based on
• And what is the current pay? Thank you, Mr. Chairman. What is the current pay for VSOs? $99.
• up to SPO rates, and are we paying overtime? Are we getting everybody's paid correctly?
• Have we got everybody to pay level, and have we got overtime handled?
• else in to work overtime.

Transcript Highlights:

• So, in that example, we're still paying families to be able to provide for that care the same amount.
• </c> children um so we've got our overtime children um so we've got our overtime line<00:51:47.240><c
• </c> pay raises were not included those pay pay raises were not included those pay raises<01:17:18.960
• </c> cover an overtime shift that we pay cover an overtime shift that we pay portal<01:34:05.199><c>
• bargaining agreement called for pay for their travel, um, and, of course, their overtime was significant

Summary: The Division 3 House Finance Committee opened a work session and announced scheduling updates, including a second Medicaid work session on March 5 at 9:00 a.m. and a reminder that recommendations or budget amendments must be moved to the full finance committee by the end of March. Members were told no motions, roll calls, or votes would be taken, and the chair also reviewed upcoming meeting dates and weather-related cancellation procedures. The day’s presentation was a budget work session on the Division for Children, Youth and Families (DCYF), with officials Marie Nunan and Nathan White introducing the agency’s budget materials and mission. DCYF’s presentation focused on its core mandates and recent operational changes. Officials described child protective services, juvenile justice services, and the Sununu Youth Services Center, then highlighted workforce improvements, including reduced vacancy rates for assessment caseworkers, juvenile justice officers, and youth counselors. They attributed the staffing gains to legislative pay raises, mass recruitment posting changes, a more stable and trauma-informed model at SYC, and broader flexibility after prior budget cuts and hiring freezes. Members asked about full-time versus part-time staffing, and DCYF said most positions discussed were full-time, with some harder-to-fill part-time youth counselor roles at SYC. The committee also discussed DCYF’s emphasis on serving families earlier through its Community Navigator hotline referrals and community-based voluntary services, which are intended to connect families to supports before abuse or neglect escalates. Officials said the Community Navigator program had received 807 referrals since August 2023. On juvenile justice, DCYF described its assessment and diversion process and said it had reduced juvenile probation involvement by 30% from 2019 to 2023; members were directed to slide 17 for 2024 data, and officials said the trend continued toward fewer in-home juvenile justice cases. The agency also reported progress in kinship care, saying initial out-of-home placements with kin now occur 74% of the time and that kinship placements are associated with more reunification. Officials said kinship caregivers are being licensed and paid similarly to foster parents, and that the legislature’s kinship law has helped. Finally, DCYF outlined transition-age youth supports, including the HOPE program, Youth Villages LifeSet, and housing vouchers. No votes or formal actions were taken.

Transcript Highlights:

• In the best way we can, we have teams working overtime to process these complaints.
• So if we did not have teams working overtime, That triaging.
• To pay because those situations are different for different individuals.
• So it's just, I think it creates suspicion among the people that pay it.
• My co-pay for my health prescriptions just went up.

Summary: The subcommittee opened with remarks on the Senate’s budget plan for affordable housing and homelessness, including a proposed $2 billion housing investment and full funding for HHAP rounds 7 and 8. The first major item was the administration’s housing reorganization and trailer bill package, which would codify the new Housing Development and Finance Committee (HDFC), consolidate multifamily housing finance programs into a one-stop application and award process, and shift some authority over bonds, tax credits, and the Affordable Housing and Sustainable Communities program. Administration officials said the goal was to reduce duplication, speed projects from award to construction, and improve accountability by aligning financing decisions. The LAO generally supported the streamlining concept but recommended changes to the proposed bond set-aside and earlier reallocation of unused bond authority, and suggested preserving flexibility for integrated applications and reporting back on the proposed 70/30 split for housing versus sustainable communities funding. Committee members, especially Senator Cabaldon, raised concerns that the new committee structure could add process and delay, and questioned whether the proposal was effectively repurposing the climate-oriented ASIC program into a housing finance tool without enough direct investment in core housing programs. Administration witnesses responded that the structure was meant to create transparency, public accountability, and simultaneous financing awards, and said the proposal was only a first step in a broader consolidation effort. Members also asked about specific programs such as the Joe Serna Farm Worker Housing Grant Program and the Sustainable Agricultural Lands Conservation Program, and staff said those would remain within the broader streamlined framework or the flexible sustainable communities allocation. The committee then heard from CDLAC and TCAC on federal tax credit changes and state housing finance. Staff explained that H.R. 1 increased the federal 9% LIHTC allocation and, more importantly, lowered the bond-financing threshold for 4% credits from 50% to 25%, allowing California to finance many more projects. They reported emergency regulations were adopted quickly to implement the change, resulting in 195 projects and more than 25,000 units in the 4% program, while the 9% program funded 58 projects and nearly 3,000 units. Members asked about the value of the state low-income housing tax credit program and rehabilitation projects; staff said state credits remain important for filling financing gaps and that a portion of bond and credit resources is now set aside for acquisition and rehabilitation. Finally, the Civil Rights Department reported on the effects of federal civil rights rollbacks and on three limited-term or expiring programs: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal closures and funding cuts have increased demand on the department, which now has more than 12,000 open matters, up from 8,700 a year earlier, and a six-month wait for intake interviews despite overtime triage and early case screening. Members urged continued funding for the programs, arguing they are essential as federal protections weaken; department staff said California vs. Hate connects callers quickly to support services, the conflict resolution unit fills a gap left by the shuttered federal counterpart, and the limited-term investigators have helped reduce wait times even as filings continue to rise.

Transcript Highlights:

• </c> example um deductions for tips overtime example um deductions for tips overtime income<00:03:21.200
• </c><00:08:21.919><c> for</c> 529 accounts was allowed to pay for 529 accounts was allowed to pay for
• </c> reported for purposes of uh paying reported for purposes of uh paying income<00:36:33.280><c> tax
• </c><00:43:27.359><c> the</c> um they can elect to file and pay the um they can elect to file and pay
• </c><01:14:34.560><c> for</c> to uh continue to sustain and pay for to uh continue to sustain and pay

Bills: HR1 , HF387

Committee: House Taxes

Keywords: January 6 insurrection, pardon, law enforcement, violent crimes, public safety, justice system, political accountability, Blaine, local sales tax, special tax, restaurant tax, lodging tax, admissions tax, amusement tax, hotel tax, redevelopment, capital improvements, municipal finance, bonding authority, tourism tax

Transcript Highlights:

• As far as the overtime that was mentioned, this came up during our work committee or the committee days
• And so I'm trying to understand how this is not a farce that we're creating a necessary overtime when
• both... ...folks outside of their staffing that could address the request for additional money for overtime
• Let's alleviate overtime and get these youth connected to community that doesn't involve this agency,
• All right, everybody pay attention, class. I believe the chair's committee guidelines call for...

Bills: HB1544 , HB2219 , HB2253

Committee: House Early Learning & Human Services

Keywords: child welfare, risk assessment, investigation, child abuse, neglect, HB 2219, child care licensing, early learning, DCYF, Department of Children Youth and Families, Washington child care, preschool licensing, family child care, child care centers, nature-based child care, outdoor preschool, mixed-age ratios, staff-to-child ratio, group size, zero tolerance

Transcript Highlights:

• I just don't know the significance there as far as the overtime that was mentioned.
• direct, and so I'm trying to understand how this is not a farce that we're creating a necessary overtime
• work with folks outside of their staffing that could address the request for additional money for overtime
• Like, let's alleviate overtime and get these youth connected to community that doesn't involve this agency
• All right, everybody pay attention.

Summary: The committee first took up House Bill 1544, which would require DCYF to study and improve the risk assessment tool used in child abuse and neglect investigations, including better identifying family strengths and needs, substance use-related risk, and service needs, and to certify the tool every three years. Staff explained the bill and noted it had passed the committee unanimously in substitute form last year. The prime sponsor, Representative Rule, said the tool would help reduce bias and support better decisions about child safety. Members raised questions about whether the bill would require new data systems or create a fiscal impact, and DCYF testified that the recertification process would focus on evidence-based literature and fidelity to the tool, though the agency acknowledged limitations in its data system. Support testimony from Partners for Our Children and DCYF emphasized that the current tool is not evidence-based and that the department is piloting the North Carolina Family Assessment Scale. The hearing on HB 1544 was then closed. The committee then received a lengthy work session from DCYF on juvenile rehabilitation. Juvenile Rehabilitation Assistant Secretary Jennifer Redman and security classification administrator Jeff Endermark described a growing JR population that is older, serving more adult-sentence youth, and projected to rise to about 481 by 2031. They said Green Hill School remains crowded, Harbor Heights is being brought online as a short-term option, and Echo Glen is near safe operational capacity. They explained JR’s classification system, behavior management process, and the role of multidisciplinary teams in placement decisions, as well as the expansion of community transition services (CTS), which uses electronic home monitoring for eligible youth. Staff described CTS eligibility, supervision expectations, and examples of successful placements, but also said the program needs more after-hours staffing and community supports. Members questioned the validity and equity of the risk tools, the availability of community resources, the impact of behavior policies and escapes, the use of single bunking, and broader concerns about lawsuits and sexual abuse in the system. JR reported an escape rate increase from 1.78 per 100 youth in 2001 to 3.92 in 2025 and said additional capacity and staffing are still needed. The committee then heard House Bill 2219, which would allow child care centers more flexibility in mixed-age grouping during parts of the day and waive repeated DCYF pre-service orientation for people who have already completed it. The prime sponsor, Representative Ortiz-Self, said the bill is meant to ease burdens on small providers. Testifiers from SEIU 925, a family child care provider, the Washington Child Care Centers Association, a child care center director, and the Children’s Campaign Fund supported the bill as a practical way to improve staffing flexibility and reduce duplicative licensing requirements, though one association asked that the bill’s daily time caps on mixed-age grouping be revised or removed. The committee then heard House Bill 2253, an agency-request technical corrections bill for DCYF licensing. Staff said it would allow child-specific licenses for certain relatives under interstate placements, exempt kinship caregivers from blood-borne pathogen training, remove licensing exemptions for physicians and lawyers, allow termination of inactive licenses, revise crisis residential center staffing ratios, and eliminate state monitoring requirements for the Washington School for the Deaf residential program. Members asked about how inactivity would be defined and whether the School for the Deaf inspections had historically produced savings. DCYF said the bill would help right-size licensing workloads after budget cuts and would let the agency work with stakeholders to define inactivity in rule. Testimony from DCYF, Community Youth Services, and Partners for Our Children supported the bill, especially the staffing ratio fix for crisis residential centers and the child-specific licensing changes for relatives.

Transcript Highlights:

• It's getting more money in just from employer contributions than it's paying out.
• It's getting more money in just from employer contributions than it's paying out.
• But all along I wasn't paying in at that rate. And now those best three years were determined.
• But those perhaps years were accelerated with overtime, uh vacation pay that is now paid at one-third
• </c> years were accelerated with overtime years were accelerated with overtime accelerated<00:31:38.080

Summary: The committee met with a quorum, approved the prior meeting minutes, welcomed new staff member Sean Parks, and announced that it would not meet in November. The next meeting was scheduled for December 8 at 10:00 a.m., with the chair noting that pension bills would be heard then and emphasizing that all pension bills must go through the full process and include actuarial analysis. Brad Gross of the Public Pension Oversight Board presented a detailed review of Kentucky retirement systems’ investments and funding. He said fiscal year 2025 ended with about $50.5 billion in pension assets and $12.52 billion in retiree health assets, both up from the prior year. He reported strong investment performance across the systems, with all Kentucky public pension funds exceeding their policy benchmarks and the median peer return of 10.4%. He also discussed long-term return trends, asset allocation differences among the systems, fee levels, and cash flow, noting that cash flow remains a key monitoring issue and that supplemental appropriations have improved the cash position of some funds, especially the Kentucky State Police and TRS systems. Gross also explained that assumed rates of return have generally fallen over time, which increases unfunded liabilities and required contributions, and said the systems’ current assumptions range from 5.25% to 7.1%. He noted that the committee’s materials included peer comparisons and historical charts, and that all asset classes were within target ranges. In response to a question from Senator Funky From, Gross was asked about pension spiking and whether supplemental general fund contributions could create a false sense of security in cash flow analysis; the question was raised but not resolved in the portion of the transcript provided.