Transcript Highlights:

• Minnesota and that would impact these numbers.
• Minnesota and that would impact these numbers.
• would be, and then not adjusted for inflation is the blue line.
• would be, and then not adjusted for inflation is the blue line.
• would be, and then not adjusted for inflation is the blue line.

Committee: Senate Education Finance

Transcript Highlights:

• Nothing about inflation.
• NOTHING ABOUT INFLATION.
• Speaker, the authors of inflation, the creators of inflation on the other side of this Chamber, the people
• Let's talk about who this bill impacts.
• THOSE MOST DEEPLY IMPACTED BY VIOLENCE.

Transcript Highlights:

• We anticipated an inflation rate. The inflation rate was much higher.
• </c><00:38:34.960><c> The</c> anticipated an inflation rate. The anticipated an inflation rate.
• </c> inflation rate was much higher. inflation rate was much higher.
• </c><00:53:43.839><c> calculations</c> aspects of bill impact calculations aspects of bill impact calculations
• the impact of this measure. measure. measure.

Bills: SB2033 , SB2487 , SB2497 , SB2471 , SB2829

Committee: Senate Commerce and Consumer Protection

Summary: The committee first reconvened on SB 2471 and SB 2829, both relating to the powers of artificial persons. After discussion with the Attorney General’s office and a prior Q&A period, the chair said the committee would defer decision-making again, with the intent to return with amended versions of both bills that could gain support from the administration and its lawyers. The measures were deferred to Tuesday, February 10, 2026, in Conference Room 229 at 9:30 a.m. The committee then took up SB 2180, relating to deposits of public funds. Members noted late testimony from the prior day’s joint hearing with the Housing Committee and moved to pass the bill out with amendments, including a defective effective date. The motion carried unanimously among those voting: the chair, vice chair, Senator Lamosao, and Senator Awa voted aye; Senator McKelvey was excused. The measure was adopted. A joint hearing followed on SB 2033, relating to renewable energy and a streamlined grid-ready homes interconnection process. The PUC supported the bill’s intent but raised concerns about the time, resources, and stakeholder input needed to establish the proposed process, and asked for clarification of terms such as “grid-ready homes” and the role of HERA. Hawaiian Electric said it supported the intent but opposed the proposed process and HERA funding use. The Hawaii Solar Energy Association strongly supported the bill, arguing that faster interconnection is needed to meet rooftop solar goals and lower costs over time. Testimony totaled 27 in support, two in opposition, and four with comments. Members questioned costs, consumer protections, and whether the bill would burden low- and moderate-income households; the bill’s supporters said amendments could clarify the definition of grid-ready homes and add guardrails, while acknowledging that upfront costs and interconnection costs would still need to be addressed.

Transcript Highlights:

• With a K-12 budget of between $23 and $24 billion, you know, with the automatic inflator that has been
• Um, uncertainty, money cuts, impacts there. Some of those are teacher training programs too.
• Um, uncertainty, money cuts, impacts there. Some of those are teacher training programs too.
• Um, uncertainty, money cuts, impacts there. Some of those are teacher training programs too.
• Um, uncertainty, money cuts, impacts there. Some of those are teacher training programs too.

Transcript Highlights:

• And so that's going to impact, or expected impact, about 30,000 Washingtonians.
• So that's the biggest impact there.
• And much of that is driven by student enrollment and the impacts of inflation.
• And much of that is driven by student enrollment and the impacts of inflation. She.
• The two-year budget, and much of that is driven by student enrollment and the impacts of inflation on

Summary: The committee held a work session focused first on juvenile rehabilitation system capacity. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth, and has longer lengths of stay, especially for “post-25” youth who must remain in secure facilities and cannot go to community beds. They described overcrowding at Green Hill School, placement limits at Echo Glen and Harbor Heights, staffing turnover, mental health acuity, and the need for more medium-security and specialized mental health beds. DCYF said it is pursuing a Parkland facility proposal, a staffing model decision package, and a broader feasibility study and master plan update. No votes were taken; members were asked to follow up with questions later. The committee then heard on behavioral health system capacity from the Behavioral Health Administration and the Health Care Authority. DSHS described growth in forensic and civil bed need, expansion at Olympic Heritage, Maple Lane, and Brockman, and construction of a new 350-bed forensic hospital at Western State expected to open in 2028. HCA reported progress on long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams, saying the community-based system is being expanded to support step-down care and reduce hospital reliance. Members asked about whether capacity is right-sized, the difference between facility types, and federal match eligibility for services. A federal funding update followed, covering the effects of H.R. 1 and H.R. 5371 on SNAP, Medicaid, marketplace coverage, long-term services and supports, K-12, higher education, and hemp regulation. OFM and agency staff said H.R. 1 adds work requirements, changes non-citizen eligibility, increases state administrative and benefit costs, reduces Medicaid and marketplace subsidies for some groups, tightens redeterminations, and may significantly affect provider payments and state-directed payments. H.R. 5371 extended federal funding through January 30, 2026 and included some agency appropriations and other provisions, including changes affecting hemp producers. Members asked about SNAP error rates and special enrollment periods. Finally, budget coordinator Mary Monroe gave a 2026 supplemental budget preview. She reviewed the state’s near general fund outlook, noting revenue declines since the enacted budget, the effect of reversions, and a preliminary maintenance-level outlook showing a projected increase in NGFO spending over the four-year period. She said the supplemental will reflect updated caseload and cost forecasts and mandatory impacts from H.R. 1, but not policy proposals. No actions or votes were taken during the session.

Transcript Highlights:

• I think we all recognized that there was an impact to our budget.
• It's barely keeping up with inflation.
• And the impact of this work is real and it's immediate.
• We've held generic drug manufacturers liable for conspiring to inflate costs.
• We have the independence and the tools to do meaningful and impactful work.

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs and testimony from Governor Healey and Administration and Finance Secretary Matthew Gorzkowicz. The chairs emphasized fiscal caution amid choppy revenue growth, rising health care and education costs, and federal uncertainty, while the governor framed House 2 as a $62.8 billion budget that grows spending by about 1% without new taxes or fees and aims to protect core services while advancing affordability. The administration said the budget uses efficiencies, program integrity, and Fair Share surtax revenue to support education, transportation, housing, child care, health care, and public safety, and it also filed a supplemental Fair Share bill using surplus FY25 funds. Much of the questioning focused on the federal “OB3” tax law and the administration’s separate proposal to delay or phase in certain corporate tax changes, especially research and experimental deductions, to avoid in-year budget shocks. Members also pressed the administration on Fair Share allocations, with the governor and secretary explaining that operating-budget surtax spending is weighted more toward education while supplemental spending is more transportation-focused, and that combined spending is roughly balanced overall. The administration highlighted Chapter 70 aid, special education circuit breaker funding, rural school aid, local aid, child care, the MBTA deficit, regional transit authorities, and a new HHS transportation line item as part of the broader transportation strategy. Several members raised concerns about Chapter 70 equity, rural districts, municipal overrides, out-migration, housing affordability, public housing repairs, and the MBTA Communities Act. The governor and secretary said they are open to further discussion on school funding formulas, PILOT, and municipal aid, and stressed housing production, energy affordability, and workforce development as key responses to out-migration. On energy, the governor defended an all-of-the-above approach, including renewables, gas, and exploration of nuclear, while saying she would continue pushing utilities and regulators to reduce ratepayer costs. The governor also said fire safety grants would not be withheld for noncompliance with the MBTA Communities Act, and members discussed public safety, housing, and local grant impacts in that context. Other topics included the Bright Act and higher education capital investments, with the administration saying it is preparing to support campus infrastructure across the public higher education system and that the bill is intended to strengthen Massachusetts’ competitiveness and retain graduates. Members also questioned cuts to the PCA program and EAEDC, and the governor responded that the state’s PCA program remains strong but is under pressure from large federal health care reductions. No votes were taken; the session was a hearing on the governor’s budget proposal and related policy bills, with the administration taking questions and offering explanations of its recommendations.

Transcript Highlights:

• One of our main topics that we want to cover is the THC potency inflation issue.
• We now have a current report for April that's showing that a lot of the THC is inflated in a lot of the
• However, we want to know what OMMA's plan is to address this THC potency inflation issue.
• With THC inflation being an issue, me and Jeff bouncing off ideas for like the last seven years to try
• We're having issues in the industry, including inflated numbers and not testing the right products.

Summary: The Executive Advisory Council met without a quorum, so no votes were taken, but the meeting proceeded with public comment and agency updates. Public commenters focused on medical marijuana issues including transparency in OMMA proceedings, delays and accreditation at the OMMA quality assurance lab, THC potency inflation, recall and embargo procedures, and the need for more public data and patient safety protections. One commenter also urged consideration of allowing first responders access to cannabis off duty, while another praised OMMA staff professionalism during inspections and enforcement actions. OMMA leadership responded with updates on the QA lab, saying the agency has been building the lab since receiving authority in 2023 and funding in 2024, and that validations and accreditation are being phased in. They reported current accreditation for pesticides, flower, potency, oils and concentrates, with additional validations for terpenes, water activity, filth and foreign material expected by the end of the month, and heavy metals, mycotoxins, residual solvents, and microbial testing to follow. Officials also said a website page will be launched to provide ongoing lab transparency. Compliance and enforcement updates included 779 inspections, 83 investigations, 65 administrative actions, and the hiring of a recall coordinator. The council also discussed legislative developments. OMMA said seven bills affecting the agency remain active, including HB 4454 on clearer THC labeling and child-resistant packaging, HB 3143 and HB 3144 on extending the grow-license moratorium and capping grow licenses, and amended bills SB 640, SB 1242, SB 1501, and SB 3 addressing cleanup, training, vendor standards, and THC products outside dispensaries. Members asked about access to METRC data, recall timing, inspector training, body cameras, and whether OMMA considers itself a public health agency. OMMA said METRC data is used internally and is confidential under state law, recalls are handled through a combination of agency notice and industry action, inspectors do wear body cameras under policy, and the agency is still building out its public health and education functions. The next meeting was announced for July 17 at 9 a.m.

Transcript Highlights:

• </c> of rapidly inflating property values. of rapidly inflating property values.
• Of course, the taxing body's expenses are going up because of inflation.
• That's what's causing<00:40:42.080><c> inflation.
• Really, the values of causing inflation.
• </c> defend themselves against inflated defend themselves against inflated real<00:41:31.400><c> estate

Summary: The Joint Revenue committee met with a quorum and heard a series of interim topic proposals focused on tax policy. Representative Brown raised two ideas: reinstating an exemption reporting requirement for corporations and entities receiving tax exemptions, with loss of the exemption for the current and prior year if they fail to report, and revising property tax treatment for wind turbines and related infrastructure by shifting the taxed footprint from agricultural to industrial classification. Senator Case and others then discussed energy taxation more broadly, including a possible generation tax for electricity, how to handle large data-center electricity loads, and whether sales tax revenue from very large electrical loads should be shared statewide rather than concentrated locally. The committee referenced prior bills and studies, including House Bill 300 and Senate File 76, and discussed using a mechanism that would keep local electricity bills net neutral while redirecting revenue distribution. The committee also took up problematic gaming and program funding. Senator Case described personal experiences with gambling addiction and the lack of available resources, while the presenter said the topic had been requested in multiple committees and that the biggest concern from House Bill 171 was protecting county and municipal funding. Members discussed whether the issue belonged in Revenue, Health, Labor, or Transportation, and several suggested it should stay with the standing committee handling gaming. Ideas raised included using gaming-related revenue for prevention and treatment, fully funding the 988 lifeline, and creating a broader trust fund for addiction-related services and law enforcement. The committee appeared to agree to continue the topic for educational purposes and to examine taxation of HHR and other gambling activity. Senator Case then proposed a severance tax on wind energy, arguing that wind development creates permanent landscape impacts and that the state should be compensated similarly to coal, oil, and gas extraction. Curt Meier, the state treasurer, supported reviewing lease agreements and said Wyoming should get more from wind resources, noting the state’s unique wind potential and the loss of viewshed. Finally, the committee heard a proposal to reform property tax relief by extending it to motor vehicle registration. Former Revenue director Dan Noble argued that vehicle taxes should be treated like other property taxes, using fair market value, depreciation, the residential assessment ratio, and local mill levies, which he said could provide broad relief but would be expensive, with an estimated fiscal impact of about $120 million. Representative Chestek followed with a related reform proposal based on Pennsylvania’s base-year assessment model, arguing that Wyoming’s current statewide relief measures treat symptoms rather than the underlying problem of rapidly rising local valuations.

Transcript Highlights:

• So, Senator Dibble, does this amendment have a fiscal impact?
• Inflation, uh, increased costs, then we heaped on top of them increased mandates to make it uh even worse
• Inflation, uh, increased costs, then we heaped on top of them increased mandates to make it even worse
• And yet they're going to be losing $20 million to do so at a time where inflation is also starting to
• </c><00:59:46.880><c> us</c> great deal about and it does impact us great deal about and it does impact

Committee: Senate Taxes

Transcript Highlights:

• We have a short runway through a special session where we have an issue right now with inflation and
• will, for those reasons, as I see the cuts in Medicaid, the Affordable Care Act, SNAP, tariffs, inflation
• , and other unresolved factors, that we should at least wait to see what impact will happen in our local
• just want to allow our public officials time to come and talk to us about the potential negative impact
• Changes to stay in compliance with federal law and serve the impacted communities who understand how

Bills: SB 10 , SB 8 , SB 15 , SB 12 , SB 6 , SB 13 , SB 9 , SB 7 , SB 17 , SB 4 , SB10 , SB8 , SB15 , SB12 , SB6 , SB13 , SB9 , SB7 , SB17 , SB4

Transcript Highlights:

• above whatever inflation is. So built in above whatever inflation is.
• Um, we have a inflation year-over-year.
• </c> we do have blooms that do impact we do have blooms that do impact recreation.<01:31:44.000><c> The
• :29.760><c> across</c><02:03:30.159><c> the</c> going to impact communities across the going to impact
• </c> about how this would truly impact about how this would truly impact solving<02:21:42.720><c> the

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• Speaker, the folks I represent are still reeling from historic Biden inflation.
• INCLUDING MEDICAL INFLATION, PROVIDER CONSOLIDATION AND RISING DRUG COSTS.
• ushered in the inflation under Joe Biden that we're still trying to shake today.
• IN THE INFLATION UNDER JOE BIDEN THAT WE'RE STILL TRYING TO SHAKE TODAY.
• IMPACT FOR INDIVIDUALS IN THE HELD CARE INDUSTRY AND ECONOMY OF THE HOLE.

Transcript Highlights:

• </c> is adopting any of them that that impact is adopting any of them that that impact uh<01:04:03.119
• And Miss Ke, I believe those impacts.
• </c><02:13:35.040><c> our</c> functions that uh really impact our functions that uh really impact our
• :37.040><c> be</c> increased, the impact will be increased, the impact will be significant.<02:51:38.080
• </c><02:54:17.279><c> our</c> staffing ne negatively impacting our staffing ne negatively impacting our

Summary: The Higher Education Finance and Policy Conference Committee met publicly to compare House and Senate positions on the higher education budget, with the chairs emphasizing transparency and alternating gavel control. Nonpartisan fiscal staff walked through a spreadsheet of differences across the Office of Higher Education and Minnesota State, including major items such as state grants, childcare grants, work study, tribal college grants, emergency assistance grants, hunger-free campus grants, student parent support, direct admissions, paramedic scholarships, and several medical residency and fellowship programs. The House and Senate also differed on administrative funding, campus sexual assault reporting, and a House FY25 cancellation that would be carried forward. Members discussed several of the larger policy and funding choices. The Senate explained its increase for Minitex as support for operating costs and statewide access to information. The House explained its cuts to student parent support and other items as necessary to work within a zero target and to prioritize direct aid to students, while the Senate said it focused on direct appropriations and access-related programs. On hunger-free campus grants and emergency assistance grants, the Senate said it was changing the distribution method and direct appropriations rather than reducing the overall money, while the House noted differences in whether nonprofit institutions remained included. The committee also reviewed Senate-only additions and reductions in Minnesota State, including free course materials, Lake Superior College remediation, and changes to the Kids on Campus appropriation. A representative from Lake Superior College testified that the PAS remediation funding would help address contamination issues at an emergency training site near Lake Superior and that the money was shifted from the Kids on Campus initiative. No final conference agreement or vote was taken in the portion of the meeting provided; the committee continued discussing differences and testimony.

Transcript Highlights:

• home, and her impact will last for<00:58:33.680><c> generations.
• </c> being crushed by the worst inflation being crushed by the worst inflation spikes<02:43:29.439><c
• And inflation adjusted exports record.
• Well, that has an impact on the bottom line for our families.
• </c> saw cost rising faster than inflation saw cost rising faster than inflation just<05:42:23.520><c

Transcript Highlights:

• Homesteader exemptions are increased annually for inflation.
• The impact on the state is going to be there.
• What's the impact on my community?
• What's the impact on my county's fiscal responsibility?
• Values, escalating insurance costs, and inflation.

Transcript Highlights:

• And so what is the additional impact should those departures...
• I'm happy to answer any questions about the bill, the operational impact, or the costs.
• I'm happy to answer any questions about the bill, the operational impact, or the costs.
• The department does not have an analysis or any financial impact on that.
• This is more than double the rate of increase in population and inflation.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical Arizona tax conformity bills, HB 2153 and SB 1106, which would conform state tax law to the federal Internal Revenue Code as of Jan. 1, 2026, with some provisions applied retroactively to tax year 2025. Staff explained that the bills exclude the federal senior deduction for those 65 and older, the higher state and local tax deduction, and the new car loan interest deduction, while including a $6,000 retirement-income deduction for taxpayers 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. The JLBC fiscal note estimated a $441.3 million general fund revenue loss in FY 2026, and members discussed that this was roughly the same as full conformity because the bill’s adjustments offset some of the federal changes. Bill sponsors and supporters argued the measure should be enacted early to give taxpayers and tax preparers certainty before filing season, noting that the Department of Revenue had already issued forms assuming conformity and that delay could force amended returns. They said the bill reflects a negotiated package that preserves most of the federal tax relief while tailoring it for Arizona, especially by lowering the senior deduction age to 60 and replacing the auto loan deduction with family-focused provisions such as the higher child credit and child care deduction. The Arizona Society of CPAs and the Arizona Free Enterprise Club supported the bills, emphasizing the need for early conformity and fewer filing complications. Opponents, including Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, argued the package would reduce state revenue, worsen the structural deficit, and mainly benefit higher-income taxpayers and corporations. Some witnesses criticized the inclusion of federal school-choice-related provisions and warned about uncertainty around future federal guidance, while others said the bill should not move ahead before the budget process. Members also debated whether taxpayers would need to file amended returns if the state later diverged from the Department of Revenue forms, and whether the senior and child care provisions were targeted or equitable. The transcript ends during public testimony, with no final committee vote or action shown.

Transcript Highlights:

• Um the APS inflation um from included.
• ><c> the</c><00:12:52.399><c> inflation</c> adds an inflation ties the inflation adds an inflation ties
• </c><00:26:38.559><c> starting</c> it this includes um inflation starting it this includes um inflation
• These were um inflation.
• So pray inflation doesn't come back in any heavy way.

Transcript Highlights:

• The 60s have been high; it's been going up, but it's kind of matched the inflation we've seen in our
• Inflation has driven costs up, and we need a policy framework that accommodates that.
• Obviously, we've all experienced the inflation in that time.
• First and foremost is the inflation that has really ramped up over the past five years.
• You know, what we have seen is that there is an impact from GLP-1 drugs.

Committee: Senate Agricultural Affairs

Transcript Highlights:

• The ratepayers are paying for that have zero or minimal impact on the delivery of quality of service
• How is this going to impact our overall needs and our resources?
• My last question is: in your presentation on cost and incentive impacts of setting, and impacts of setting
• It's really been about the cost of inflation.
• So if you want to have an impact on future rates, reduce the amount of spending that's allowed.

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• I think that what we've seen is there has been medical inflation year-over-year.
• They're still inflated, and we're all facing it.
• We're all facing inflation.
• And so our low population may not really get the impact that you want.
• Directly impact the citizens of the state.

Committee: Joint Health Insurance Affordability Task Force