Transcript Highlights:

• Within Health and Welfare themselves on, but they move contracts quite often, and we just adjust and
• board for all agencies, and they were to find out or figure out where they needed to make those adjustments
• But the current standard, I believe, is they would because it's strictly on salary.
• Just one last... ...standard, I believe, is they would because it's strictly on salary.
• business plans, you know, tell me how... ...tell me how the money's being spent, where are your salaries

Summary: The committee first heard reports from the House and Senate Health and Welfare chairs on budget issues and related policy concerns. Senator Van Orden said the department’s non-Medicaid budget had been presented and that members were focused on scrutinizing public health contracts, avoiding broad across-the-board cuts, and preserving essential services. She also said she was not in favor of moving 988 suicide crisis hotline services into the behavioral health managed care contract at this time, while Representative Tanner noted prior intent language had only required a cost-benefit analysis and that any change would need more detail. Representative Van der Woude said the House committee was committed to a bill holding back about $21 million for RESHAB, with audit and oversight provisions, and raised concerns about rural health fund oversight, provider rate reductions, and Medicaid expansion spending. Members then questioned the chairs about possible policy changes to reduce costs, including reviewing programs not in Idaho Code, restoring provider rates if revenues improve, and adding work requirements or enrollment caps to Medicaid expansion. Van der Woude said he was drafting a bill that would let Medicaid expansion expire and restart with work requirements and a cap, and he said he would support an asset-based waiver request for people with substantial assets. Several members raised concerns about the human impact of cuts, especially in adult dental and developmental services, while others emphasized the need for clearer evaluation tools and better return-on-investment data for programs. Van der Woude explained that RESHAB funding concerns stemmed from unclear assessment standards and the loss of a prior evaluation tool in litigation, and Senator Wintrow cautioned that a straight $21 million reduction could harm services and providers. The committee then heard from House Agricultural Affairs Chair Gerald Raymond, who reviewed agriculture-related budget items and emphasized the importance of dedicated funds, research, and invasive species prevention. He highlighted funding for quagga mussel prevention, Mormon cricket control, Japanese beetles, and carnal bunt response through a deficiency warrant, and said prevention at boat check stations is cheaper than treatment. He also discussed the University of Idaho dairy/cafe project, saying the facility was nearing completion and expected to have about 400 cows milking by the end of the summer. Members asked about the impact of recent cuts on check stations, and Raymond said his committee had not yet discussed that issue but would consider it, and that the Snake River Basin study had mostly been left to the resource committees. The meeting ended with notice that work groups would meet immediately after adjournment and that budget-setting would begin the next day, with the committee reconvening at 7:15 a.m. and the full committee at 8:00 a.m.

Transcript Highlights:

• , regional weighting, housing factor, and child-month adjustments.
• It needs to be a stand-alone insurance adjustment that we can actually see.
• So you can actually see its own risk adjustment.
• We eventually would like to have high acuity have its own actuarial adjustment.
• I would like to make note that the CEOs are six-figure salaries.

Committee: Senate Children, Families, and Elder Affairs

Transcript Highlights:

• The mandate for armed security officers has significant... increased personnel costs including salaries
• Judicial salaries have also been an issue that the...
• The committee substitute also increases the base salary of a district judge by 15% which also results
• in higher salaries for elected prosecutors.
• This is why I firmly believe that the judiciary should not receive any type of salary increase until

Bills: SB260 , SB263 , SB293 , SJR18

Committee: Senate Finance

Transcript Highlights:

• </c> they would need to make adjustments they would need to make adjustments within<00:25:00.360><c>
• It goes down for a volume adjustment, and that volume adjustment is the volume of sold nationwide.
• There can be reductions in the downward volume adjustment, which means the volume adjustment can then
• And then there's a potentially downward adjustment for something called the NPM adjustment.
• :22.520><c> for</c> called The npm Adjustment npm stands for called The npm Adjustment npm stands for

Summary: The Department of Safety presented an overview of highway fund and unrestricted revenue collections, focusing on the Division of Administration, the Road Toll Bureau, and the Division of Motor Vehicles. Amy Newbery explained that the main unrestricted funding sources are highway funds and general funds, with highway fund revenue of about $263 million in FY 2024 and a FY 2025 projection of $261.2 million. She said revenue growth has been modest and has not kept pace with costs, creating structural deficits that required general fund transfers of $50 million in FY 2022-23 and another $10 million in FY 2024-25 to balance the fund. Jennifer Hall described Road Toll operations, including motor fuel tax collection at the distributor level, compliance enforcement, and licensing for fuel distributors, transporters, IFTA carriers, and oil discharge/pollution control. Members asked about IFTA, dyed-fuel enforcement, the possibility of using the state forensic lab for dyed-fuel testing, and whether audit positions had been filled; the department said it recently hired a part-time fuel enforcement officer, still uses IRS testing, could explore lab testing, and had no audit vacancies. Hall also discussed factors affecting fuel-tax revenue, including gas prices, crude oil forecasts, weather, tourism, GDP, and inflation, and said FY 2024 road toll revenue was $127.5 million, above plan, with FY 2025 projected at $127.71 million. The committee then turned to DMV-related revenues. Newbery said motor vehicle registration revenue was $93.1 million in FY 2024 and is projected at $90.4 million in FY 2025, with the state share going directly to the highway fund. Members asked about the state/town fee split, the five-year registration cycle dip, the distribution of registration revenue by vehicle weight category, and the impact of electric-vehicle surcharges; the department said the five-year dip is still occurring and will fade over time, and it would follow up on the weight-category breakdown. The presentation also noted that driver-license revenues have stabilized, inspection revenues remain steady, plea-by-mail revenue was added to the highway fund in FY 2024, and general fund revenues tied to the department are relatively small and have declined as some functions moved to OPLC. No votes or formal actions were taken.

Transcript Highlights:

• We're also trying to raise salaries to stay competitive within the state so we can keep our workers.
• And so the hours were adjusted there.
• At levels one, two, and three to teachers, especially in terms of salary. And that's about it.
• Madam Chair and Representative Chavez, PED wanted that done, because the contracts, the minimum salary
• Madam Chair and Representative Chavez, PED wanted that done, because the contracts, the minimum salary

Committee: House House Health & Human Services

Transcript Highlights:

• , regional weighting, housing factor, and child-month adjustments.
• , regional weighting, housing factor, and child-month adjustments.
• It needs to be a stand-alone insurance adjustment that we can actually see.
• We eventually would like to have high acuity have its own actuarial adjustment.
• I would like to make note that the CEOs are six-figure salaries.

Bills: S0042 , S0578 , S0624 , S7018

Committee: Senate Children, Families, and Elder Affairs

Summary: The committee met with a quorum and first heard SB 624, which would codify DCF’s current practice of allowing batterers intervention programs to offer supplemental faith-based activities so long as participation is voluntary. The bill drew support from faith-based and family organizations, which argued it would restore access to effective rehabilitation options and remove discriminatory barriers. SB 624 was reported favorably after a roll call vote. The committee then heard SB 42, which would require child protective investigators and child protection teams to rely on qualified medical professionals when a child has a documented pre-existing diagnosis or when a parent requests an exam, and would require clearer notice to parents and custodians at the start of an investigation. Testimony overwhelmingly came from parents, advocates, and disability rights representatives describing cases in which medically complex children were allegedly misdiagnosed as abuse victims and families were separated unnecessarily. Members expressed sympathy and support, and SB 42 was reported favorably. Next, the committee considered CS/SB 578, creating an Alzheimer’s disease awareness initiative within the Department of Elder Affairs to promote early detection, brain health education, research updates, and clinical trial awareness, with outreach focused on older adults and at-risk populations. An amendment was adopted to place the campaign within the Alzheimer’s Disease Initiative. A caregiver testified about the need for public education and early diagnosis, and the bill was reported favorably. The committee also took up SPB 7018, a committee bill on child welfare that would extend the definition of “visitor” for foster homes to reduce repeated background checks, make the Step Into Success foster youth workforce pilot permanent and statewide, and create a program through the Florida Institute for Child Welfare to catalog best practices among community-based care lead agencies. The bill was approved as a committee bill and reported favorably. Finally, the Department of Children and Families presented its 2025-26 final funding methodology and rates report for community-based care. Members questioned the proposed tiered model, including insurance costs, risk corridors, prevention funding, performance measures, and regional funding disparities. No vote was taken on the presentation, but members discussed the possible need for follow-up legislation and additional stakeholder input.

Transcript Highlights:

• Yeah, you mentioned if there's a Then we obviously make some adjustments on those amortization periods
• Yeah, you mentioned if there's a big gain, you know, you can adjust the amortization down.
• Right now, we haven't seen the disruption with AI in terms of salaries and In terms of salaries or members
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for about two million members and the importance of pension funding to the state budget, especially amid economic uncertainty, market volatility, federal policy changes, and concerns about future fiscal pressure. Scott Tarando, CalPERS chief actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029. He explained that CalPERS’ current discount rate is 6.8%, that lower investment returns increase contribution rates and unfunded liabilities, and that the plan uses a 20-year amortization period for new unfunded liabilities. He said CAP has recommended a reasonable amortization range of 15 to 20 years and that CalPERS’ longer smoothing period helps reduce volatility in employer contributions. He also explained the timing of actuarial data: the valuation used for current contribution rates is based on the prior fiscal year’s audited data, with the next year’s rates developed later in the annual cycle. Members asked about the relationship between average employee service life and amortization, whether current market and AI-related changes could justify using more current data, whether pension benefits change when valuations are updated, and how CalPERS’ funded status has changed over time. Tarando said retiree benefits do not change based on annual valuations, that the system’s funded status has improved from roughly the mid-60% range about a decade ago to around 80% or higher more recently, and that CalPERS is monitoring possible long-term workforce effects from AI but sees no immediate need to change assumptions. Michael Cohen of CalPERS said the system complies with information requests and is independently audited annually, but there has been no formal federal review released. In public comment, a representative of county governments praised the improved funded status and PEPRA reforms. The hearing concluded with remarks reaffirming fiduciary responsibility and the importance of protecting CalPERS beneficiaries.

Transcript Highlights:

• The number one problem in our recruitment is the faculty salary.
• as a starting salary.
• So that has been a key problem we have in recruitment: the salary.
• Yes, that's mainly for faculty, for paying for the faculty salary.
• They have the committee that has been adjusting it.

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• We sometimes like to use the analogy of maintenance factor being like a deferred salary increase.
• We sometimes like to use the analogy of maintenance factor being like a deferred salary increase.
• But if it were to become a requirement, they would have very little time to adjust their schedules and
• Yeah, that would cover the broad category of expenditure, so whether it’s salaries, benefits, supplies
• We do some other things with respect averaging salaries, and there's several steps involved in that.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• </c> make those county specific adjustments. make those county specific adjustments.
• Unfortunately, when it was transferred over, there was a salary deficit in the salaries.
• These are federal funds adjustment adjustments, two of them.
• </c> These are federal funds adjustment These are federal funds adjustment adjustments,<01:53:58.520>
• No, the 402 adjustment. 402 adjustment.

Transcript Highlights:

• Like, for instance, I know that some school districts, the way their salary schedule is listed, they
• No, we have that their salaries based at $35,000 as an example, so that we're...
• the school district, but we're saying as an example they can get paid less and we're on a separate salary
• But is the separate salary column still in this form?
• So if we can't fix the problem of how we actually provide a salary for the...

Committee: House Elementary and Secondary Education

Transcript Highlights:

• This legislation would ensure that salary adjustments and other economic benefits submitted by the governor
• employee unions and the Commonwealth, workers often face long delays in receiving the agreed-upon salary
• adjustments and benefits.
• We were informed by the Retirement Board that changes to the contribution mechanism and adjustments for
• The contribution would be calculated based on current staff salaries at a rate set by the retirement

Committee: Joint Joint Committee on Public Service

Summary: The Joint Committee on Public Service heard testimony on a wide range of retirement, municipal workforce, and public employee labor bills. Early testimony focused on H. 2749, a Plymouth home rule petition to classify Plymouth harbormaster employees as Group 4 for retirement purposes. Supporters, including local officials and retirement board representatives, argued the employees perform law-enforcement and rescue duties comparable to police and fire personnel, that the change would be fair, and that it would have little or no fiscal impact on the town. A separate harbormaster-related bill, H. 2743, was also introduced later in the hearing. The committee also heard testimony on provisions of the Municipal Empowerment Act (H. 56), including a temporary critical-shortage exemption allowing retired state or municipal employees to return to work in hard-to-fill positions, and a renewed OPEB commission to study retiree health care costs. Administration and municipal officials said the measures were needed to address staffing shortages and rising benefit liabilities, while emphasizing the shortage exemption would be time-limited and require proof of recruitment efforts. Related retirement bills drew support and caution: advocates for higher COLA bases and enhanced COLA benefits urged relief for retirees, but some asked the committee to wait for recommendations from the special COLA commission before acting. A major portion of the hearing concerned labor rights at the Massachusetts Water Resources Authority and the Committee for Public Counsel Services. Union representatives and employees backed bills to extend just-cause protections, promotional rights, and collective bargaining rights to MWRA and CPCS workers, arguing they currently lack protections available to most other public employees. Testimony described unfair discipline, delayed promotions, and high turnover, and committee members indicated prior favorable action on similar MWRA bills and expressed support for addressing CPCS labor rights. The committee also heard from representatives of the Massachusetts Municipal Association and public higher education employees in support of H. 2820, which would require timely funding of ratified state employee contracts, with witnesses describing long delays in receiving negotiated raises and back pay. No votes were taken during the hearing, and the chair repeatedly invited written testimony and closed each panel after questions.

Transcript Highlights:

• Yeah, you mentioned if there's a big gain, you know, you can adjust the amortization down.
• Right now, we haven't seen the disruption with AI in terms of salaries and...
• In terms of salaries or members right now, but, you know, clearly that's something we'll be watching
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.

Transcript Highlights:

• Yeah, you mentioned if there's a big gain, you know, you can adjust the amortization down.
• Right now, we haven't seen the disruption with AI in terms of salaries and...
• In terms of salaries or members right now, but clearly that's something we'll be watching in terms of
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.
• And to the extent that it starts to impact that, we will make some adjustments in our assumptions.

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Chair McKinnor and Senator Smallwood-Cuevas opened by emphasizing CalPERS’ importance to retirement security for public employees and to the state budget. Scott Tarando, CalPERS Chief Actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029, including the use of CalPERS’ 6.8% discount rate and the need to show how changes in investment return assumptions and amortization periods affect liabilities, contribution rates, and budgets. Tarando explained that lower investment returns increase contribution rates and unfunded liabilities, while higher returns reduce them. He also described CalPERS’ 20-year amortization period for new unfunded liabilities, comparing it to a mortgage and noting that shorter periods raise near-term costs but reduce long-term interest costs. He said the CAP has recommended a 15- to 20-year range and that CalPERS’ current approach is intended to smooth volatility for a large, ongoing plan. Members asked about the meaning of average service lifetime, the timing of valuation data, whether more current data could be used, the effect of AI and workforce changes on assumptions, and whether contribution changes affect retiree benefits. Tarando said retiree benefits do not change with annual valuations, that CalPERS uses audited year-end data because it is the most reliable basis for rates, and that AI impacts are being monitored but are too early to quantify. Committee members also discussed CalPERS’ funded status, with Tarando saying it had improved from the mid-60% range about 10 years ago to around 79% at fiscal year-end and over 80% more recently, reducing pressure on employers and the state budget. Michael Cohen, CalPERS’ investment operations chief, said CalPERS had complied with federal information requests and that its annual audits are publicly available, but no formal federal review had been released. In public comment, a representative of the California State Association of Counties praised the improved funded status and the role of PEPRA reforms. The chairs closed by reaffirming CalPERS’ fiduciary duty and the goal of protecting retirement security for public workers; no votes were taken.

Transcript Highlights:

• CPCS is now hiring new attorneys at a starting salary of $79,500.
• We are, as in most entities, mostly salary costs.
• But that didn't encompass the 4.5% adjustment raises to bargaining.
• We are requesting $2,318,000, which includes salary-related adjustments and a minor adjustment for non-salary
• And as a result, that's when we raised our salaries.

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held its sixth public hearing on the Governor’s FY27 H-2 budget proposal, focused on public safety and judiciary agencies, at the Foxborough Community Center. After opening remarks and local welcomes, the committee heard testimony from the Executive Office of Public Safety and Security (EOPSS), led by Secretary Gina Kwan, who described the $1.72 billion budget as a 4% increase over FY26 and emphasized readiness, local partnerships, and support for core operations rather than expansion. She highlighted ongoing work on firearms-law implementation, State Police academy reforms, DOC’s new strategic plan, disaster response, hate-crime prevention, and planning for major 2026 events including the World Cup, Marathon, and America’s 250th anniversary. Members also raised concerns about State Police capacity, DNA backlog reporting, academy boxing/training reforms after a trooper’s death, ICE coordination, diversity in public safety leadership, the disaster relief fund, crime lab funding, reentry programming, and whether OEMS should move from DPH to EOPSS; Kwan said she would keep an open mind on some issues but was not ready to commit to an OEMS transfer. The committee then questioned EOPSS officials and the State Police colonel on several operational matters. The colonel said the academy boxing program remains suspended and likely will not return in its prior form, pending an IACP review, and that future training will likely emphasize jujitsu-style control techniques. He also said the State Police uses the civil service exam, with current advancement scores ranging from 83.72 to 98.78 for the most recent class, and acknowledged the need to improve recruitment, preparation, and diversity. On the DNA and sexual assault kit backlog, EOPSS said it supports extending the statute of limitations and is working with the courts and crime lab to identify and collect lawfully owed DNA. On disaster preparedness, officials said the new disaster relief fund is being developed with MEMA and A&F, is currently capitalized at $14 million with another $14 million expected, and should be designed to respond flexibly to different regional needs. They also said the crime lab increase is largely to cover core operations and a structural deficiency rather than expansion. Several members focused on public safety coordination and staffing. Questions from legislators from Bristol, Plymouth, Cape Cod, and elsewhere stressed the need for State Police to absorb additional forensic work if county resources shift, and to maintain strong communication with local chiefs and federal partners. Rep. Holmes pressed EOPSS on racial and gender diversity in the department and State Police; Kwan and Colonel Noble said diversity has improved but will take time to show up in senior leadership, and they pointed to internships and hiring practices as ways to broaden the pipeline. The hearing also included discussion of the World Cup security plan, with Kwan saying planning has been underway for about 18 months through 14 working groups and that current staffing and overtime resources appear sufficient for now. After EOPSS concluded, the committee recessed briefly and then began testimony from district attorneys, led by Suffolk DA Kevin Hayden, who said prosecutors are seeking a 10% budget increase to address staffing and salary pressures, especially the widening pay gap between assistant district attorneys and newly hired public defenders after recent CPCS funding increases.

Transcript Highlights:

• So in order to pay our bills and catch up on our salaries, we took that money and we just paid bills
• and salaries.
• and salaries.
• But we also caught up on our other bills and our salaries.
• And I assume that all the elected officials are also paid a salary. Is that correct?

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• all of the states that they have been provisionally selected across the country, wanting certain adjustments
• The department requests transferring $229,000 from the project development fund to cover salary and match
• Fourteen agencies request $3.8 million in pay plan appropriation for regular salaries match.
• Most cite the salary adjustments that came from implementation of the pay plan within Class and Compact
• And we know that those rates have to be adjusted for labor and delivery so that we don't lose any more

Committee: All ALC-PEER

Summary: The committee considered several appropriation and transfer requests, beginning with a $273,000 temporary appropriation for the Department of Labor and Licensing to cover administrative costs for its enterprise licensing platform, funded by license and application fees. It then reviewed two large Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation for the final quarter of the fiscal year, and $195 million for the State Broadband Office to support the Arkansas BEAD broadband grant program, including an extra help position and grants to internet service providers. The broadband item drew extensive questions about awardees, contract amendments, accountability, build-out timelines, backup plans if providers default, the definition of broadband serviceable locations, and the cost per location. The State Broadband Director said no providers had requested amendments, the program would use milestone-based disbursements and a four-year build-out period, and the first tranche would serve 51,566 homes and businesses with $126.1 million in grants. Both Section B and Section C items were approved. In Section D, the committee approved a $458,000 transfer within the Department of Correction from the female work release program to the Tucker Unit water treatment plant, a $25 million transfer within the Department of Education to cover declining enrollment, teacher incentive, school recognition, and Easter Seals funding, and a $229,000 transfer for the Department of Shared Administrative Services to support two project management office positions. The education transfer prompted questions about how declining enrollment funding is calculated, how many districts receive it, and how long districts can continue to receive it; agency staff said 152 districts were on the preliminary list and the formula is based on the prior two-year average ADM compared with the previous year. The committee also gave favorable advice on a proposed $4.7 million loan for the Office of State Technology to implement ServiceNow and related IT modernization tools; agency officials said the loan would be repaid through cost recovery rates over five years and would replace an existing loan that is ending, with expected savings from consolidating applications but no precise savings estimate yet. The committee then reviewed cash fund and federal grant requests, including $200,000 for wage and hour claimant payments, $15 million for unclaimed property claims, $8,000 for a heritage program grant, and $1.1 million for a College and Career Coaches grant to expand services in rural districts. It also reviewed pay plan and budget manual items without objection. The most extensive report discussion focused on the Medicaid trust fund, where DHS and DFA officials said the balance has been declining and that the state may need to add capital back into the fund. Senators and representatives asked about the current balance, the projected year-end level, the role of the $100 million set-aside, the impact of outstanding Medicaid rules from the prior session, and whether future federal funding could help reduce long-term Medicaid costs. Officials said they are still working through more than 10 outstanding rules with CMS and do not yet have a final price tag for those changes. The meeting ended after the reports were reviewed and the committee adjourned.

Transcript Highlights:

• If you look at the end of the sentence in the LESC column, you'll see that we set to provide a 3% salary
• And now, if the unit value is adjusted, it destroys the very things that we were trying to do.
• You're essentially wiping out your appropriation for salary.
• And we've had that discussion about the difference in salary increases to all employees versus average
• Like what you just said wipes out salaries and other things too.

Transcript Highlights:

• We set to provide a 3% salary increase to all public school personnel.
• And now, if the unit value is adjusted, it destroys the very things that we were trying to do.
• Because you're essentially wiping out your appropriation for salary.
• And we've had that discussion about the difference in salary increases to all employees versus average
• Like what you just said, it wipes out salaries and other things too.

Transcript Highlights:

• This is a Harris County specific issue, and the bill is adjusted to reflect that.
• Those salaries. Roll into my budget.
• I just have a question: Are you, is your salary paid by taxpayers?
• Last year, I asked our financial team to adjust that for inflation.
• He can adjust the rate. It's about the income.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs