Transcript Highlights:

• Savings and efficiencies are the same items that we reported on last year.
• Many of our state funds go to match those federal grants.
• this merger, we are saving five FTEs because we knew OIDA.
• And we believe that's going to save five FTEs at the end of the day.
• We know that's going to be a significant operational savings as those lights operate.

Committee: House A&B Transportation Subcommittee

Transcript Highlights:

• </c> some money for this the savings Mr. some money for this the savings Mr.
• I'm trying to save it. Thank defund it. I'm trying to save it. Thank you.
• And that saves system money. pharmacist. And that saves system money.
• </c> there really any potential for savings? there really any potential for savings?
• So, 26 should reflect a $6 million savings, and 27 should reflect a $6.2 million savings. Yes.

Summary: The committee met in Division 3 work session on HB 2 and began by noting a delayed start to allow the Legislative Budget Assistant to finish a large packet of updated amendments and revisions. The chair said the goal for the day was to move as many items as possible, with any cleanup deferred to a Friday follow-up. Members also discussed the process for handling public and department testimony on selected items before votes. Several early amendments were taken up and voted on. The committee unanimously recommended items dealing with repealing the liquor transfer to the alcohol fund and redirecting liquor-related revenue to the general fund, and it also approved an amendment revising Granite Advantage funding so there would be no automatic transfer from the liquor fund, instead using a general fund appropriation. Members then approved repealing the foster grandparent program by a 5-4 vote, and later approved an amendment requiring DHS contractors to comply with the patients’ bill of rights by a 9-0 vote. The committee also approved incorporating House Bill 94 on Medicaid coverage of circumcision by a 5-4 vote, while deferring the Wick Farmers Market Nutrition Program repeal for more discussion. The committee spent substantial time on the youth risk behavior survey amendment. Supporters said the change was intended to clarify opt-out procedures and ensure parents, guardians, and students are clearly notified that they may opt out without negative consequences. Some members raised privacy concerns and said the language could add administrative burden, but the amendment was ultimately recommended to Finance by a recorded vote of 8-1. Another amendment on civil rights and contractor standards for DHHS was discussed but not voted on after concerns were raised about vague enforcement language and possible penalties. The committee also struck amendment 1026 as redundant, with members noting related work in existing law and Senate Bill 134, and then moved on to other items, including a revised equity/access-related amendment that was postponed for later discussion.

Transcript Highlights:

• The focus on efficiency has reaped benefits in terms of dollars saved and time saved for our riders.
• And we're committed to moving 20,000 passengers in and out of Foxborough per match, seven matches in
• I'll save my question for Administrator Schlesinger.
• And our Mass Save met its 2025 goals a year early.
• And our mass saved met its 2025 goals a year early.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• He concluded his collegiate matches.
• Save what's necessary to get the government reopen until the Save America Act is passed."
• </c> until the Save America Act is passed." until the Save America Act is passed."
• </c><00:45:17.200><c> The</c> Save America Act finally begin. The Save America Act finally begin.
• </c> boxing matches boxing matches and<03:34:14.000><c> now</c><03:34:14.239><c> being</c><03:34:14.880

Transcript Highlights:

• <00:04:11.320><c> that</c><00:04:11.760><c> extend</c> huge savings for projects that extend huge savings
• :33.520><c> energy</c> save on workman's comp, energy save on workman's comp, energy efficiency<01:09
• ,</c> energy savings, energy savings, reducing<01:16:43.000><c> our</c><01:16:43.160><c> staff</c><01
• the</c><01:25:22.120><c> student</c> about financial savings, the student about financial savings, the
• It saves impactful for our students.

Committee: Senate Capital Investment

Transcript Highlights:

• </c> mentioned earlier super fund State match mentioned earlier super fund State match so<00:51:34.440
• </c><01:04:33.520><c> upfront</c> required to provide our match upfront required to provide our match
• </c><03:05:23.399><c> for</c> $390 for the FTA uh Transit match for $390 for the FTA uh Transit match
• You have the different state match for the FAA projects, and you got a transit match.
• </c><03:43:03.399><c> by</c><03:43:03.560><c> saving</c> important because by save by saving important

Summary: The committee heard a Department of Corrections capital budget presentation on HB 25, focused largely on urgent maintenance and security needs at the New Hampshire State Prison for Men and other DOC facilities. DOC officials described the governor’s proposed priorities: boiler surge and radiator tank replacements, electronic controls and camera upgrades, and replacement of HVAC units using R22 refrigerant. They also outlined additional requested projects totaling $15.4 million, including a body alarm/man-down system at Northern New Hampshire Correctional Facility, steam line and trap repairs, fire alarm replacements, and removal of an underground diesel tank in favor of above-ground storage. DOC testified that many systems are well beyond their expected service life, including 40-year-old boilers, outdated analog cameras, and HVAC equipment using discontinued R22 refrigerant. They said the men’s prison is relying on a leased temporary boiler, has significant steam leaks causing major water loss and reduced boiler efficiency, and is dealing with frequent fire alarm faults and deteriorating wiring. On the body alarm system, they said the vendor no longer supports the equipment and replacement parts are no longer available. On the diesel tank, members questioned whether it could be abandoned in place or whether fuel could be reused; DOC said it had not explored all alternatives and would follow up, while noting the tank is underground and tied into the warehouse system. Members also asked whether some current investments could be reused in the planned new men’s prison. DOC said some items, such as air handlers, might potentially be moved, but most projects are needed to keep the current facility operational and would not be practical to transfer. Questions were also raised about the leased boiler arrangement, the use of the man-down system by staff and visitors, and whether the kitchen project could be converted to a modular unit. DOC said the modular kitchen approach is necessary because the existing kitchen cannot remain fully operational during repairs. The committee then moved to lapse extensions, and DOC identified several projects no longer needing extensions, including items numbered 64, 65, and 66 in HB 25, with the chair noting those balances would be deleted and that the lapse amount was $550,500.

Transcript Highlights:

• I still felt awful, but then we found some incredible donors who matched me exactly.
• Gamboa saved us.
• They found out I have harder blood to match than my sister.
• One time they gave me bad blood that didn't match exactly.
• In this case, directed donation is needed because we do not have blood to match this patient.

Committee: House Public Health

Transcript Highlights:

• The response was that this is matching, or attempting to match, what is happening at the federal level
• the benefit of the person who thinks they want to go into one career over another and who might be saved
• Oh, and also to point out that Lincoln University's land-grant funding has not been matched 100% but
• There's often this misnomer about what the land-grant match can be used for.
• I cannot use the land-grant match to repair a lab in which credit-bearing classes are offered.

Committee: House Higher Education and Workforce Development

Summary: The Committee on Higher Education and Workforce Development heard two bills. House Bill 3221, sponsored by Rep. Castile, would bar state funds from supporting higher education degree programs that the federal government designates as low-earning, with the Coordinating Board for Higher Education reviewing the federal list and reporting impacts. The sponsor framed it as taxpayer accountability and return on investment, while many committee members and witnesses argued it was premature, lacked data, and could harm essential but lower-paid fields such as education, social work, early childhood education, counseling, and the arts. Supporters said the bill would mirror federal policy and affect only a small number of programs; opponents warned it could discourage universities from offering needed programs and would not account for long-term career outcomes or transferable skills. No vote was taken, and the sponsor said the bill was still a work in progress. Testimony in support of HB 3221 came from a lobbyist for FGA Action and others who said federal law is already moving in this direction and cited a small number of affected programs. Opposition came from representatives of independent colleges, community colleges, and other witnesses who said the federal rules are still being developed, the earnings test is based on a limited snapshot, and some low-wage programs serve important workforce needs or lead to later advancement. Several members asked for more information on the federal list, the number and demographics of affected students, and possible unintended consequences for rural schools and workforce development. The committee then heard House Bill 3416, sponsored by Rep. Bosley, which would create the Strengthening HBCUs Fund and direct a portion of gaming and classroom trust revenues to Lincoln University and Harris-Stowe State University for capital improvements and related support. The sponsor said the bill is intended to address historic underfunding of HBCUs and align Missouri with similar efforts in other states and at the federal level. Lincoln University President John Mosley testified in support, describing recent growth, major campus projects, and the need for additional infrastructure funding without increasing debt. Committee members asked about the funding amounts, whether Lincoln receives any special state support, and how the money would be distributed. No opposition testimony was heard, and the committee adjourned after the HB 3416 hearing without taking a vote.

Transcript Highlights:

• But it's also a benefit for young, working individuals saving for retirement.
• of Americans will receive only $110 a year in savings.
• savings out of my paycheck.
• We have room in this budget to adopt this tax savings.
• We have room in this budget to adopt the tax savings that are... ...to adopt this tax savings.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical conformity bills, HB 2153 and SB 1106, which would align Arizona tax law with the federal Internal Revenue Code as of Jan. 1, 2026, including some retroactive provisions for tax year 2025. Staff explained that the bills would exclude three federal provisions: the higher federal SALT deduction, the new senior deduction as written in H.R. 1, and the deduction for interest on new car loans. They would instead include a $6,000 retirement-income deduction for taxpayers age 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. JLBC estimated the package would reduce general fund income tax revenue by about $441.3 million in FY 2026. Members also discussed that the Department of Revenue’s forms had been issued assuming full conformity, and staff and supporters argued the bills were needed quickly to avoid confusion and amended returns during filing season. Committee members and sponsors largely framed the bills as tax relief and a way to provide certainty for taxpayers and preparers. Supporters said the package would help families, seniors, and workers, and noted that the Arizona version was negotiated to keep the overall tax relief roughly comparable to full conformity while shifting benefits away from the SALT deduction and toward child credits, retirement income, and child care. The sponsors also criticized the governor’s executive action and urged prompt passage so taxpayers would know how to file. Opponents argued the bills would reduce state revenue, worsen the budget outlook, and disproportionately benefit higher-income taxpayers and corporations. Several witnesses and members also raised concerns about the child care deduction, the retirement-income deduction, and the business expensing provisions, while supporters responded that the bill was designed to help working families and encourage saving and investment. Public testimony was mixed. The Arizona Society of Certified Public Accountants and the Arizona Free Enterprise Club supported the bills, emphasizing early conformity, filing certainty, and reduced confusion for taxpayers and software providers. Opponents included Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, who argued the package would deepen budget problems and favor the wealthy. One witness objected to a federal school-choice-related provision she said was being tied to the bill, though committee members said the measure before them was a tax conformity bill and not a school finance bill. The hearing included extended debate over the fiscal impact, the governor’s prior requests for some of the same tax changes, and whether taxpayers would need to file amended returns if the legislature later changed course. The transcript ends during testimony from NFIB, with no final committee vote or action shown in the excerpt.

Transcript Highlights:

• helped to offset some of those savings helped to offset some of the<00:25:46.279><c> cost</c><00:25:
• an enhanced match and services for adults without children would result in a $2.4 billion hit to the
• sets a Target but these savings merely sets a Target but these reductions<00:31:03.039><c> would</c>
• </c><00:31:19.039><c> on</c> eliminating an enhanced Federal match on eliminating an enhanced Federal
• , um, and that we don’t anticipate our federal match given the new, uh, administration.

Transcript Highlights:

• The department would bill the Division of Medicaid for a 50% federal match for these positions, with
• the state's match coming... ...for a 50% federal match for these positions, with the state's match coming
• This would provide $890,100 as the state's match for the cost to design a National Guard Readiness Center
• the Division of Public Works the authority to reallocate project savings from one approved project to
• The authority to reallocate project savings from one approved project to any other with the approval

Summary: The committee took up a series of JFAC budget items, beginning with health education programs. Members approved an FY 2027 increase of $900,000 and 2.5 FTP for psychiatry, family medicine, OB fellowship, child psychiatry, and veterinary education slots. They then adopted language to shift funding for the family medicine OB fellowship to the rural health transformation program if those funds become available before July 1, 2026, with the general fund then redirected to undergraduate medical education seats under H 368. The language drew debate about whether rural health money should be reserved for rural facilities and whether the provision would preempt a future committee’s role, but it ultimately passed. The committee next approved the Office of the State Board of Education budget, including Canvas LMS renewal, transfer of risk managers to institutions, and a federal post-secondary improvement grant, with a net increase of $4,487,900 and a reduction of four FTP. For colleges and universities, a substitute motion to add general fund support for an additional rescission restoration and other items failed, and the original motion passed instead, providing a smaller increase. Community colleges received a one-time general fund increase of $1,123,200 after the committee rejected a substitute that would have only reduced Canvas costs. Career Technical Education was addressed twice: first, the committee approved $957,600 one-time from the Career Ready Students Fund to restore a prior rescission in secondary programs; later, it approved $1,877,300 one-time from the same fund for secondary CTE programs after rejecting a substitute that would have used ongoing general fund support. The Department of Administration budget included utilities, Medicaid procurement staffing, training, document services, IT hardware, and a rescission correction. The committee rejected the main motion after concerns were raised about staffing for a large Medicaid managed care contract, but then approved the Permanent Building Fund budget, including $890,100 for design of a National Guard Readiness Center in Bonneville County and $71.6 million for replacement items and maintenance projects. Standard language and reporting language for that fund were adopted by unanimous consent. Finally, the State Lottery received approval for $25,800 in dedicated funds for replacement computers used in scratch-game design. The committee adjourned after announcing future work group meetings and upcoming budget agenda items.

Transcript Highlights:

• of Americans will receive only $110 a year in savings.
• savings out of my paycheck.
• to how the tax savings is being applied to seniors.
• We have room in this budget to adopt this tax savings.
• We have room in this budget to adopt the tax savings that are... To adopt this tax savings.

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:

• We have to match those funds, and depending on what you're getting it for, capital is an 80-20 match,
• It's either that or the cities come up with the local match to match those funds.
• Our local match money comes from property tax.
• I understand that there's matching funds and it takes local funds now to match that.
• the local match to increase our bus fleet.

Committee: Joint Government Finance Committee

Summary: The committee first received a general fund and revenue update from the Office of Management and Budget. Staff reported that the state started the biennium about $176 million above prior estimates, but year-to-date revenues were now running below legislative forecast, mainly due to lower individual income tax and sales tax collections. The budget stabilization fund was above its cap, the legacy fund continued to grow, and oil revenues were slightly above forecast overall. Members also asked about federal funding uncertainty and mineral leasing variability, and OMB said agencies would be asked to address potential federal reductions case by case during budget preparation. The committee then reviewed compliance reports and trust fund analysis materials, followed by a bill draft for a fixed-route city transportation grant program. Testimony from transit officials in Fargo and Minot supported the proposal, saying state aid would help match federal transit funds and support operations, but members raised questions about the funding source, fare structures, and whether the program should be limited to the current four fixed-route cities or allow future eligible cities. Several members asked for more time to study the formula and possible funding options before moving the bill forward. Next, the committee approved a bill draft repealing obsolete language related to a proposed North Dakota-South Dakota bi-state authority. Staff explained the provision had been unused for about 30 years and that existing law likely already allowed joint powers agreements without the specific language. The committee voted to adopt the repeal bill draft. The Department of Commerce and the Northern Plains UAS Test Site then provided an update on uncrewed aircraft system initiatives, including the Vantis radar data enclave, the drone replacement program, and future revenue models. Officials said North Dakota had received FAA approval to operate the radar data pathfinder, had begun replacing non-compliant drones from restricted foreign sources, and was working on phased procurement and cost-recovery plans. Members asked about deadlines, funding, supply-chain issues, and how the system would be used; staff said the federal restrictions were already in effect and that Vantis was being positioned as infrastructure for future beyond-visual-line-of-sight operations. Finally, the Department of Corrections and Rehabilitation presented on the design of a new minimum-security prison and on a reentry housing task force. The new facility is planned for the penitentiary grounds, with a reduced estimated cost of about $263 million, 600 beds initially, possible expansion to 732 beds, and completion projected around 2031 if funded in 2027. The reentry housing task force described a data-driven effort to identify housing needs for people leaving incarceration, with the goal of reducing homelessness and recidivism through targeted housing support and possible subsidies. Members asked about staffing, site selection, housing duration, and whether employment and transportation needs would be included in the assessment.

Transcript Highlights:

• And it includes out-year savings from health care carrier reimbursements.
• And then on the saving side with DCYF, there are delays in the income expansion.
• There are some adds and some savings.
• Some of the savings were things like fire engine staffing and aerial support.
• And then on the savings side, savings related to fishing and hunting licenses for the Discover Pass.

Summary: The conference committee met on Engrossed Substitute Senate Bill 5167, the state operating budget, and received a detailed staff briefing on the proposed conference report. Staff explained how to read the comparison documents, the four-year balanced-budget outlook, and the main resource assumptions, including use of the March 2025 revenue forecast, exclusion of the statutory 4.5% growth assumption, revenue legislation totaling about $8.7 billion, numerous fund transfers, and reversion assumptions. They also noted the proposal does not include a temporary salary reduction or furloughs. The briefing highlighted major policy areas and their net five-year impacts, including increases for state and higher education employee compensation, K-12 education, long-term care and developmental disabilities, corrections, information technology, and other policy items. It also described net reductions in behavioral health, children/youth/families, higher education, natural resources, other human services, and health care/public health, with many of the changes tied to delayed programs, rate adjustments, fund shifts, and savings options from Governor Ferguson. The committee then heard member comments, with supporters emphasizing K-12 funding and fiscal responsibility, and Senator Gildon opposing the process and the closed-door nature of the budget development. A motion was made and seconded to recommend adoption of the conference report and pass the bill. The roll call showed one member voting do not recommend, one member excused, and the remaining members recommending adoption. By vote of the committee, the conference report was adopted, and the committee adjourned.

Transcript Highlights:

• We've saved taxpayers money. $1 billion in state and in federal savings and revenue gains since 1985,
• Would they save a lot of money? I think they would save a lot of money. Correct. Thank you, ma'am.
• Savings, cost savings, and this is a question that our chairman knows that I have.
• The goal is to get access to stuff so we can save taxpayers, we can save time, we can be effective, and
• To save 35 million people, taxpayers, we're here to save them money and resources. regardless of whether

Committee: House Delivery of Government Efficiency

Transcript Highlights:

• funds um that was a lot federal matching funds um that was a lot of<01:13:43.960><c> numbers</c><01:
• Having three years of ECT and living in residential housing without question has saved my life.
• Is this one of the match programs for the 50% federal match for Medicaid reimbursement rates?
• Don't the 50% federal match for the Medicaid reimbursement rates?
• Oh, so that would be Medicaid, and it would be standard Medicaid matching. We have 50%. Okay.

Committee: Senate Finance

Transcript Highlights:

• , which tends to be what the issue is for the state: finding that 25% match to utilize these funds.
• First, are you saying that we could use federal dollars as a match for federal dollars? No, no, no.
• The match has to be non-federal money. Yep.
• This bill has no effect if the state does not have adequate match.
• So we stand ready to provide match in the future if that becomes necessary.

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• There was a stop of using the periodic data matching.
• There was a stop of using the periodic data matching.
• There was a stop of using the periodic data matching.
• Periodic data matching. In amendment. Periodic data matching.
• </c><00:21:19.600><c> Speaker,</c> data matching. Thank you, Mr. Speaker, data matching.

Transcript Highlights:

• In other words, are they producing at a scale that would match a wholesale market?
• And we have currently set a limit of $15,000 of NMDA match per intern.
• match it.
• Matching funds offered by the proposers. Voluntary matching funds. I should point out $173 million.
• It will save lives. and save livelihoods, and so I wholeheartedly support it.

Committee: House Water & Natural Resources Committee

Transcript Highlights:

• </c> Landiggon is saying I think we can save Landiggon is saying I think we can save the<00:51:17.599
• <02:03:19.119><c> $30</c> save $30 save $30 million<02:03:21.119><c> by</c><02:03:22.000><c> using</c
• And was there match money state.
• One is labeled for match and one is non-match. This is the portion that's non-match.
• </c> labeled for match and one is non-match. labeled for match and one is non-match.

Summary: The committee met with Lottery Director Charlie McIntyre and Charitable Gaming Chief Compliance Officer Kulie Aoyo to review proposed changes in HB 2 and related amendments affecting video lottery terminals, historic horse racing, charitable gaming, and scratch tickets. McIntyre said the late-arriving amendment made revenue estimates difficult, especially because the bill would allow operators to decide when to convert from HHR to VLTs and would change the floor-space rules. He explained that the existing 70/30 floor-space split between machines and table games was negotiated to protect charity revenue, and warned that moving to a 90/10 split could reduce charity revenue, potentially by as much as $17 million, while also changing the character of the facilities. Committee members discussed whether to keep the 70/30 split, and McIntyre said he could provide updated estimates later that day, including net impacts after any offsetting gains or losses under current law. Members also asked about the governor’s proposed operator share versus the Sweeney amendment’s higher operator share. McIntyre said the governor’s 45% figure was based on his own estimate and on comparable rates in other states, and he supported it as a way to maximize revenue for the state and charities. He also described a change to high-stakes tournaments: after speaking with Rep. Sweeney, he said the amendment was clarified to apply only to those tournaments and would lower the house take from 10% to 5% to encourage participation in rare, high-buy-in events. The committee also discussed a separate proposal to raise the maximum scratch ticket price from $30 to $50; McIntyre said the change would take time to implement, would likely increase net state revenue by about $1 million in year two, and was consistent with pricing in neighboring states such as Massachusetts and Connecticut. Additional questions covered sports betting and a separate Kino-related estimate. McIntyre said March Madness is the busiest period for sports betting and that the state’s sports betting revenue has exceeded initial expectations. He also said he had estimated that removing a municipal-vote restriction for Kino could cost about $12 million total, with $2 million in the first year and $10 million thereafter. No formal votes were taken during the discussion; the chair indicated the committee would revisit the VLT amendment and other sections later, and McIntyre agreed to send updated revenue estimates to committee members.