Transcript Highlights:

• So I can't talk to the operational impact overall.
• costs.
• Is the contracting, I'm sorry, is the contracting more cost effective, or is it more cost effective to
• may want to operate.
• may want to operate.

Transcript Highlights:

• The budget provides funding to support core operational costs and student retention at the California
• One relates to an Information Security Officer, and the second relates to operational costs.
• CSAC has identified a in year-over-year operational costs, and significant cost drivers are related to
• I will first start by addressing the first proposal related to operating costs.
• or staff costs and $1.6 million for operating expenses and equipment.

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:

• That's a minor cost in relationship to program failure.
• The programs currently operated at the Whitehall campus operate under a state-issued health care facility
• HHS operates and inhabits buildings that are owned and operated by the State Building Division administrator
• So combined, slightly over $1 million in savings to not operate Whitehall, but some of those operating
• You have to have the program fully operational.

Summary: The Health and Human Services Committee held an invited-testimony hearing on LR 425, which examines the Whitehall campus in Lincoln and possible long-term options for youth currently served there. Chair Brian Hardin explained that Whitehall houses two separate programs for adolescent males: a substance use program and a youth-who-sexually-harm program. Testimony from DHHS officials described Whitehall as a Joint Commission-accredited psychiatric residential treatment facility (PRTF) that provides about 40 hours of weekly programming, family involvement, school services, and community reintegration activities. Officials said the department is evaluating whether the programs should remain at Whitehall or move to another state-owned facility, with Hastings described as the department’s preferred alternative because it is more residential in design than a youth rehabilitation treatment center (YRTC).

Transcript Highlights:

• Increased cost the average cost per well has surged since you started helping as chairman Darby eight
• and the cost to rework those wells.
• We've got two operators who. that you would know, great, great sophisticated independent operators who
• The cost, as Chairwoman Craddick pointed out, the cost of plugging those wells has gone up just remarkably
• The lower cost energy and price to... provided by a PPA, enables businesses to keep their operating costs

Committee: House Energy Resources

Transcript Highlights:

• Peakers are a higher operating cost, but a lower upfront capital cost.
• That's one way you can lower electric rates, is lower operating costs.
• The PPA... ...is lower operating costs.
• It would make moving cattle more difficult, require additional fencing, increased operating costs, and
• It would make moving cattle more difficult, require additional fencing, increased operating costs, and

Summary: The Senate Business and Commerce Committee held its third interim hearing on Texas electric grid reliability and 765 kV transmission lines/private property rights. Chair Schwertner opened by noting record ERCOT summer demand of 91,089 MW and emphasized the committee’s focus on managing rapid load growth, ensuring adequate generation, and protecting homeowners, businesses, landowners, and ratepayers. The committee also adopted strict two-minute limits for public testimony and planned to hear invited witnesses first, then public testimony. PUC Chairman Thomas Gleeson, ERCOT CEO Pablo Vegas, and OPUC Chief Counsel Benjamin Barclay testified on Senate Bill 6 implementation, large-load interconnection, transmission cost allocation, and market design. Gleeson said the PUC has adopted or is finalizing rules on net metering/co-location, large load interconnection standards, and a transmission cost recovery rule that would move from 4CP to 12CP, lengthen the interval to 30 minutes, and add a minimum demand charge to better allocate costs to large loads. Vegas explained ERCOT’s new batch process for large loads, saying it provides year-by-year capacity allocations, clearer financial obligations, and a transmission plan; he reported 205 GW eligible for Batch Zero, with 65 GW classified as baseload, 25 GW in an intermediate category, and 114 GW as allocated load. Barclay supported the changes as better protection for residential and small commercial customers, while warning that the minimum demand charge may need an exit-fee concept to address stranded costs if large loads leave. Members pressed witnesses on whether additional market changes are needed to attract dispatchable thermal generation and whether DRS/DRRS Plus could become a capacity-market substitute. Gleeson and Vegas said the current market still favors solar, batteries, and other low-variable-cost resources, and that more incentives may be needed for gas and other thermal generation; Gleeson said the commission’s reliability standard assessment will begin this year and conclude next year with a 2029 outlook. They described DRS as an ancillary service for intraday reliability and DRS Plus as a proposed real-time revenue mechanism for thermal resources during scarcity, not a forward capacity market. Senators also questioned whether 12CP could still be gamed, whether curtailment authority under SB 6 should be expanded from EEA 2 to earlier stages, and whether the batch process should be bifurcated so traditional industrial loads are handled differently from data centers. Witnesses said the batch process is intended to prevent speculative projects from driving transmission costs, that most large-load projects are data centers, and that future rules may need to better distinguish among types of large loads.

Transcript Highlights:

• So on the cost, are you looking at this, that the cost of generating at that point?
• air pollution; another costs.
• So on the cost, are you looking at this, that the cost of generating at that point?
• so that those lowest-cost units run, even if that lowest-cost unit is not in my region.
• Society</c><01:34:29.360><c> of</c> marginal cost but the cost to Society of marginal cost but the cost

Bills: HF75

Committee: House Energy Finance and Policy

Transcript Highlights:

• So it may result in increased staff costs, increased premiums, pension costs, and claim costs.
• fund, and then the cost of the claim if they're self-insured, and then obviously the claim costs.
• The cost of PTSD is high. It's true.
• This bill does impose some costs on municipalities, but it shares those costs that are being borne by
• a small operation like mine.

Summary: The committee heard testimony on several bills. SB 5882 would extend workers’ compensation PTSD presumptions to local correctional facility workers after 90 days of employment, with staff explaining the bill’s scope, fiscal note, and how claims would affect employers’ experience ratings. The sponsor and labor representatives supported the measure as a response to correctional officer trauma, while cities, retailers, and self-insurers opposed it over cost, system sustainability, and the need for more study. Labor and Industries said the estimated five-year state-fund claim cost ranges from $6.7 million to $15.3 million, and the hearing closed after testimony from both sides. The committee then heard SB 6196, which would impose a 95% excise tax on kratom products starting in 2027, create licensing and labeling requirements, and direct revenue to youth harmful substance prevention. Supporters argued kratom is unregulated and increasingly available to youth, and some urged age-gating and stronger restrictions on synthetic concentrated products. Opponents, including retailers and the American Kratom Association, said the bill is too punitive, would hurt legitimate businesses, and should be revised into a consumer protection framework rather than treated like a controlled substance. No vote was taken. SB 6204, allowing adults to grow up to six cannabis plants at home with a 15-plant household cap, drew strong support from cannabis advocates and some medical users, who said home grow should have been part of legalization and would help consumers understand the plant. Opponents from law enforcement, cities, and public health warned about youth access, enforcement problems, fire and chemical risks, and possible impacts on cannabis tax revenue. The committee also heard SB 6134, requiring notice to striking workers about possible UI overpayments if they later receive retroactive wages, which the sponsor said would prevent surprise repayment obligations; testimony was overwhelmingly supportive. Finally, SB 6195, aimed at reducing cannabis oversupply by tying producer canopy size to reported sales, drew broad support from cannabis businesses and trade groups, who said it would stabilize the market and address JLARC’s findings, with some stakeholders asking for implementation fixes and clearer language.

Transcript Highlights:

• about cost?
• As a reading my mind, you know, with regards to cost, my question is going to be regarding the costs,
• guy, operational guidelines.
• operations began.
• So we can operate unless we have local acceptance because without infrastructure, we can operate like

Transcript Highlights:

• These funds go toward operating cost pressures that include things like compensation insurance costs
• costs just to operate the program, and so we are proposing an increase of that operating account to
• , and other operating costs.
• , and other operating costs.
• , and other operating costs.

Committee: Senate Commerce and Consumer Protection

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:

• 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:

• All costs will be covered by the revenue and administration costs.
• operating on those thin margins, that cost is not sustainable.
• costs.
• The cost per square foot, also known as the construction cost allocation, is the cost that the state
• The cost per square foot, also known as the construction cost allocation, which is the cost that the

Bills: SB6294 , SB6211 , SB5650 , SB6033 , SB6297 , SB6343 , SB6067 , SB6082 , SB6323 , SB6324 , SB5862 , SB5923 , SB6151

Committee: Senate Ways & Means

Keywords: local government finance, Washington state, RCW, real estate excise tax, REET, sales and use tax, property tax levy, county tax, city tax, affordable housing, housing services, behavioral health, mental health, developmental disabilities, children and families services, youth services, utility tax, low-income utility assistance, veterans assistance, homelessness

Transcript Highlights:

• And that was also, you know, in terms of our total operating cost, we would set the fee to reflect our
• total operating cost.
• We would set the fee to reflect our total operating costs and not exceed the 1%.
• So the 1% is truly a cap, and we would be setting a fee that would only cover our operating costs.
• Again, based on the operating costs of DHCS and not necessarily looking specifically at the impacts on

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• might be raising the cost of TNC service.
• Yeah, what are your general cost drivers?
• It’s in the hundreds of millions of what this costs Californians.
• We've been seeing the cost go up.
• Precise trip activity data can provide information on cost and revenue that operators may not wish to

Summary: The hearing focused on transportation network companies in California, with the chair framing it as an informational hearing on the history, regulation, safety, climate, accessibility, and data issues surrounding Uber, Lyft, and smaller or autonomous TNC services. The CPUC described its decade-long regulatory role, including safety rules, background checks, insurance requirements, reporting obligations, and two major legislative programs from 2018: the Clean Miles Standard and the Access for All program. Members asked about complaint trends, data collection and disclosure, program implementation, and how the CPUC uses annual reports for policymaking, compliance, and program oversight. Uber and Lyft said the statewide framework has supported growth while providing safety and access benefits, but both companies emphasized that insurance is a major cost driver and argued that California’s UM/UIM requirement is unusually high compared with other vehicles. They said the Clean Miles Standard is pushing electrification but faces headwinds from EV affordability and charging infrastructure, while Access for All has expanded wheelchair-accessible service but still needs continued support. They also discussed transit partnerships, wildfire response, and the potential role of autonomous vehicles, with both companies saying human drivers will remain important and that future regulation should account for new technology. The final panel, including the San Francisco County Transportation Authority and UC Berkeley researchers, presented evidence that TNCs have increased congestion and reduced transit ridership, especially in dense urban areas. They described prior research showing TNCs contributed to congestion growth in San Francisco and noted that this work helped spur local taxes on ride-hailing trips to fund safety and transit improvements. The panel also discussed the CPUC’s evolving data-disclosure decisions, arguing that public access to TNC trip data is important for understanding transportation impacts and informing local policy.

Transcript Highlights:

• and maintenance costs.
• Additionally, the governor's recommending $650,000 in recurring general revenue to adjust operating 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.
• This particular question, in terms of their ability to reduce the cost, subsidize the costs directly

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 FY 26-27 budget for the health and human services silo, which totals $48.5 billion within a $117.4 billion state budget. Agency leaders outlined major spending priorities, including AHCA’s behavioral health redesign, APD waiver enrollment and facility needs, DCF’s integrity and self-sufficiency systems, opioid response, community-based care and mental health bed expansion, DOEA’s Alzheimer’s, home care, and community care programs, DOH’s cancer research, public health, EMS blood-transfusion initiative, and lab feasibility study, and the Department of Veterans’ Affairs’ facility, cybersecurity, and medication-management investments. Members generally praised several proposals, especially increased reimbursement for private duty nursing, behavioral health funding, Alzheimer’s support, and the EMS blood program. Senator Sharief raised concerns about the AIDS Drug Assistance Program (ADAP), warning that changes could leave many Floridians without coverage for HIV medications and asking whether manufacturers could provide rebates directly to patients. Surgeon General Ladapo said the issue was driven largely by funding and federal changes, not a legal barrier, and said the department had explored alternatives but could not fill the gap with current resources. Senator Rouson asked about the Office of Minority Health and Health Equity, and DCF said its budget includes about $7 million for the substance abuse and mental health data dashboard required by prior legislation. Public testimony focused heavily on ADAP. Former program leaders and advocates said the proposed changes would reduce enrollment and remove key drugs and insurance-premium support, calling the situation a crisis and criticizing the department for lack of transparency and stakeholder engagement. They urged a pause and collaborative review of the program’s finances. The committee also discussed KidsCare implementation, with AHCA saying federal conditions and litigation have delayed the expansion. The meeting ended after the chair noted the budget would still need to be adjusted for updated Medicaid caseload estimates, and the committee adjourned without taking any formal votes or other action on the budget items.

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:

• They would be replaced with two new accounts, the CCA operating account and the CCA capital account,
• costs of each program.
• The state must cover the cost for these clients and for clients without state coverage.
• a proportional share of program costs, excluding administrative costs, from health carriers, self-funded
• HCA's other administrative costs for the program may not be included in the assessments.

Summary: The House Appropriations Committee held public hearings on three bills. House Bill 2251, sponsored by Rep. Fitzgibbon, would reorganize Climate Commitment Act revenue accounts by repealing several existing accounts and creating new operating and capital accounts, changing how auction proceeds are distributed when revenues are above or below a set threshold, broadening some tribal and overburdened-community spending language, adding electric vehicles and certain housing uses, capping Ecology administrative costs, and moving some reporting from annual to every two years. Supporters said the bill would simplify a confusing account structure and improve predictability, while opponents criticized the reduced reporting frequency and said it could weaken accountability. No vote was taken. House Bill 2254 would adjust the funding model for the Partnership Access Line and related behavioral health consultation programs by allowing the cost of the third-party administrator to be included in the carrier assessment rather than paid from general funds. Committee staff said this would produce general fund savings, and testimony from HCA, UW Medicine, Seattle Children’s, and others supported the bill as a technical fix that would stabilize the programs and potentially free up funds to restore service levels. No vote was taken. House Bill 2385 would extend deadlines and the expiration date for the Medicaid Access Program created last session, after federal HR1 restrictions prevented implementation of the original program and provider assessment. The bill would push out CMS submission deadlines, update the rate-setting reference year, and extend the act’s sunset date. The sponsor and the Washington State Medical Association supported the bill as necessary to preserve the option of pursuing the program later. The committee took no action and adjourned after the hearings.

Transcript Highlights:

• Rising costs for material supplies and operating costs, combined with sales tax on staffing services,
• costs.
• for material supplies and operating costs, combined with sales tax on staffing services, PD, and IT,
• costs.
• in the operating budget, and so we hope that you can... ...facility would come with those costs in the

Bills: HB2289

Committee: House Appropriations

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

Transcript Highlights:

• But one of the bigger challenges in addition to cost is cost uncertainty.
• profile can operate on its own.
• Their vision at that time was not to build was to operate was to operate some of their at that time was
• What technology needs to be in place to operate them?
• One is DOME, a demonstration of operational microreactor experiment.

Committee: Joint Advanced Nuclear Energy Committee

Summary: The meeting was a presentation and Q&A at Idaho National Laboratory focused on the state of nuclear energy, advanced reactors, and the lab’s role in testing, regulation, and commercialization. Speakers described INL’s broader mission beyond nuclear, including cybersecurity and critical infrastructure, but emphasized its major nuclear capabilities: the Advanced Test Reactor, TREAT, the Materials and Fuels Complex, and other test beds used to accelerate fuel and materials testing. They also highlighted the lab’s size, workforce, internship pipeline, and partnerships with DOE, DHS, DOD, and private companies. A major topic was the federal push to speed up nuclear deployment through executive orders and regulatory reform. Speakers said DOE and the NRC are reducing unnecessary bureaucracy, streamlining environmental reviews, and working toward a goal of having three new nuclear systems achieve criticality by July 4, 2026. They discussed the difference between microreactors, small modular reactors, and traditional gigawatt-scale plants, arguing that advanced reactors can be factory-built, safer, and better suited for data centers, military bases, remote communities, industrial heat, and other nontraditional uses. They also said the U.S. is rebuilding its nuclear supply chain, including enrichment and fuel fabrication, and that states willing to host parts of the fuel cycle could see major economic benefits. The speakers addressed questions about cost, safety, waste, and international competition. They said advanced reactors rely on passive safety features, TRISO fuel, and natural circulation, and that the industry’s challenge is often cost uncertainty rather than a precise fuel or materials limit. They argued used nuclear fuel should be viewed as a resource rather than waste if recycling becomes policy, and said microreactors should produce relatively small amounts of spent fuel. They also noted that China and Russia continue to build aggressively, with China on pace to surpass the U.S. in total nuclear generation, while U.S. projects such as Palisades, Crane Clean Energy Center, Duane Arnold, Oklo, Aalo, MARVEL, and Project Pele are moving forward under DOE and private-sector partnerships.