Transcript Highlights:

• bases a property type is subject to, exclusions, and credits can all affect those effective tax rates
• c> property<01:11:23.159> type rates um which tax bases a property type rates um which tax
• Changes in aid reductions or rates are compounded for smaller tax bases.
• Changes in aid reductions or rates are compounded for smaller tax bases.
• Changes in aid reductions or rates are compounded for smaller tax bases.

Keywords: 1187, senate, all

Transcript Highlights:

• The rate was 12%.
• a lower rate and higher income individuals at a higher rate.
• We have a formula-based tax rate, so it's really hard to pin down exactly what. What the rate is?
• Rate is preferred to a narrow tax base with a high rate.
• The chart there showed that the broad base and lower rate was effective.

Transcript Highlights:

• and many people on that base.
• Differently based on payer source.
• No rate has been established, we can't bill, we don't know what the rate is going to be, if it's even
• So, who sets the rates?
• So we base the 1% of the total per member per month cap rate on looking at other precedents.

Keywords: 988, house, all

Transcript Highlights:

• Item number one, community based care.
• Contracts so those rates may vary but for IPSP and the rate is around it's between eight hundred and
• are evidence-based services.
• You can draw them, it's at the same match rate as the Medicaid match rate.
• So there's about a 23% exemption rate, 22%. 23% exemption rate, their coverage rate is about 77%.

Keywords: 1184, house, all

Transcript Highlights:

• the implementation. of the Alternative Methodology-Based Rate System.
• Rates table, as a percentage increase for each rate beginning January 1st of the budget year.
• Second, provide an in-depth interim rate reform adjustment to the SRR, or Standard Reimbursement Rate
• We also see that we must implement the alternative rate methodology now, replacing the outdated market-based
• I concur with our colleagues; the reimbursement rate should be based on the MIT living wage, not the

Keywords: 988, house, all

Transcript Highlights:

• had rates around 75.7%.
• That rate is 14.7%, which is the rate that is.
• And what we are doing now in New Mexico is we are basing that reimbursement rate on... a cost model of
• Now folks can get that high, predictable rate based on the actual cost of providing high-quality care
• We will not reimburse providers based on their price; we reimburse a set rate, and those rates are in

Transcript Highlights:

• Medicare adjusted base rate is what the reference-based pricing price is.
• Medicare adjusted base rate or only up?
• base rate?
• But this, to me... this language looks like that Medicare adjusted base rate can be increased based on
• that base rate to meet that.

Keywords: 927, senate, all

Transcript Highlights:

• You all budget based on actuals.
• and many people on that base.
• So I just wanted to. ...to not only the base and many people on that base.
• So we base the 1% of the total per member per month cap rate really on looking at other precedents, essentially
• Based on an analysis that everybody agreed to, there was $175 million in savings by upping the rate for

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

Transcript Highlights:

• It constantly resets every time a utility comes in for a base rate change.
• <00:13:51.440> rate time a utility comes in for a base rate time a utility comes in for a
• have<00:14:33.839> a each of its base rate case, it'll have a each of its base rate case,
• utilities have to come in for a base utilities have to come in for a base rate<00:15:40.320>
• agreed to not come in for a new base agreed to not come in for a new base rate<00:15:53.120>

Keywords: Meeting Start 00:00 Attendance Roll Call 00:02 HB 398 Discussion 01:01 HB 398 Roll Call Vote 16:09 Chair Comments 18:05, 958, all

Summary: The committee heard House Bill 398, sponsored by Rep. Wade Williams, with testimony from David Samford of East Kentucky Power Cooperative. The bill would amend KRS 278.264, the Senate Bill 4 statute, to clarify that it governs retirement of fossil fuel plants and not the recovery of associated decommissioning costs. Supporters said the measure would restore the Public Service Commission’s discretion to spread decommissioning costs over the life of a plant, consistent with traditional ratemaking, and avoid large rate spikes when plants are retired. Testimony focused on ratemaking principles such as cost causation and matching, with the witnesses arguing that customers should pay costs as they are incurred rather than face a large “sticker shock” charge at the end of a plant’s life. Members asked about possible double charges, environmental surcharges, fuel adjustment clauses, and what happens if a planned retirement is delayed or canceled. The witnesses said the bill is intended to prevent double exposure and that rates would be revisited in future base rate cases as assumptions change. During roll call, most members voted yes, while Rep. Fugate passed and explained concern about high electric bills and prior lump-sum charges in his area, and Rep. Watkins voted no, saying he needed more information on long-term affordability. The committee reported the bill out favorably, with the chair stating it should pass on the floor.

Transcript Highlights:

• This is the proposed solution. based-managed care rate growth.
• Most of the provider rate increases have been supplemental fixed-dollar amounts above the base rate to
• And the state has focused on supplemental rates rather than base rate increases because they provide
• And the state has focused on supplemental rates rather than base rate increases because they provide
• Funds to help cover base rate increases to physicians.

Summary: The Assembly Budget Subcommittee on Health held the first of several hearings on the Governor’s May Revision for health care, with opening remarks focused on the state’s projected $12 billion deficit, looming federal Medicaid changes, and the potential impact on Medi-Cal, public health, reproductive health, and safety-net providers. Several members criticized the proposal as balancing the budget on vulnerable Californians, while others defended the need for cost containment and questioned the administration’s assumptions. The chair set ground rules for respectful, focused questioning and outlined three topics: the Medi-Cal proposals, Proposition 35, and Proposition 56. DHCS Director Michelle Baas presented the May Revision’s Medi-Cal package, saying the department’s budget totals $200.6 billion overall, including $45.2 billion General Fund, and that the proposals are intended to address rising caseloads, pharmacy costs, and managed care spending. She described proposed changes for adults with unsatisfactory immigration status, including a freeze on new full-scope enrollment for those 19 and older, $100 monthly premiums beginning in 2027, elimination of adult dental and long-term care coverage, removal of PPS/RAP payments to FQHCs and rural health clinics for that population, and a pharmacy rebate aggregator. Other proposals included eliminating certain OTC drug classes, removing GLP-1 coverage for weight loss, prior authorization and step therapy changes, reinstating the Medi-Cal asset test, eliminating acupuncture as an optional benefit, allowing utilization management for hospice, raising the managed care minimum medical loss ratio to 90%, reducing PACE capitation rates toward the midpoint of the actuarial range, eliminating the skilled nursing facility workforce and quality incentive program, and suspending the SNF backup power requirement. The LAO said the revised Medi-Cal spending estimate is about $2.5 billion higher than the Governor’s Budget in the budget year, and that the increase appears driven more by higher per-enrollee costs than by caseload alone. The LAO said the budget solutions are concentrated in a few areas, are largely ongoing, and should be considered in light of federal uncertainty, but suggested the Legislature could explore alternatives such as more targeted income thresholds for the undocumented expansion and simpler asset-test rules. Department of Finance officials said the proposals are difficult but necessary to address a third consecutive deficit and rising Medi-Cal costs. Members then pressed the administration on the methodology and impacts of the proposals, especially the enrollment freeze, premiums, asset test, hospice controls, PACE reductions, and the elimination of benefits and provider payments. No votes or formal actions were taken at this hearing.

Transcript Highlights:

• lives, to be able to shift and modify that formula to 75% based on the zip code, and then 25% based
• lives, to be able to shift and modify that formula to 75% based on the zip code, and then 25% based
• Under our new clerk, it was sent to this committee, and basically insurance rates are based on, you know
• So it wouldn't necessarily, in my mind, affect the rate because the rate is...
• based on a driving record.

Keywords: 995, all

Summary: The Joint Committee on Financial Services held a public hearing on a wide range of auto insurance and vehicle-related bills. Testimony focused heavily on autonomous vehicle regulation, auto insurance rating by ZIP code, rental car liability coverage, and surcharge thresholds for minor accidents. Representative Polito supported a bill to regulate autonomous vehicle testing and deployment, arguing for school-zone restrictions, slower speeds, a remote kill switch, and minimum insurance requirements to protect the public. Representative Mendez and Senator Payano testified for legislation to reduce racial and socioeconomic inequities in auto insurance pricing by limiting the weight insurers may place on territorial loss costs, while the Mass Insurance Federation and Consumer Federation of America offered opposing and supporting views, respectively, on the fairness and actuarial impact of geographic rating. The committee also heard support for a bill to remove inspection-sticker violations from license-point calculations, and for a bill to raise the damage threshold for insurance surcharges and minor/major accident classifications. A substantial portion of the hearing addressed House Bill 1301 on rental car liability. Enterprise Mobility, the American Car Rental Association, and a small Massachusetts rental company supported the bill, saying personal auto insurers should be primary when their insureds drive rental cars, that Massachusetts is an outlier compared with most other states, and that the change would reduce costs and simplify claims handling. The Mass Insurance Federation opposed the bill, arguing that current Massachusetts law already clearly makes the vehicle owner’s policy primary and that shifting liability would raise costs for private-passenger policyholders. Committee members asked detailed questions about how rental coverage works, whether premiums or rental rates would change, and how other states handle the issue. The committee also heard testimony on a bill to adjust surcharge rules for at-fault accidents, with sponsors arguing that repair costs and vehicle values have risen sharply and that the current thresholds are outdated. Members discussed how the point system affects drivers, whether the proposal should apply cumulatively or per incident, and how Carfax and out-of-pocket repairs factor into consumer costs. At the end of the hearing, the chair noted written testimony could still be submitted and, during a brief personal privilege, recorded support for two underinsurance bills, H. 1109 and S. 748. The committee then moved and seconded a motion to adjourn, and the hearing ended without any votes on the bills themselves.

Transcript Highlights:

• A few years ago, we did do a rate study based on Home and Community-Based waivers, those 1915(c) Home
• A few years ago, we did do a rate study based on Home and Community-Based waivers, those 1915(c) Home
• We reimburse providers at the 100% rate. We, based on the budget, recommended a 70% increase.
• One of the reasons to do that rate study is we have six Home and Community-Based waivers, and there was
• We reimburse providers at the 100% rate. We, based on the budget, recommended a 70% increase.

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services held its first meeting and received an overview from the Department for Medicaid Services on Medicaid’s behavioral health and substance use disorder services. Commissioner Lisa Lee and CFO Steve Beal said Kentucky Medicaid serves about 1.4 million members, including over half of Kentucky children, with 485,000 expansion members, more than 69,000 enrolled providers, and total fiscal year 2024 expenditures of $18.5 billion. They said Kentucky covers a broad range of behavioral health services, and behavioral health provider enrollment has grown from a little over 4,500 in 2019 to nearly 8,000 in 2024. They also described how Medicaid spending and utilization are tracked through claims and encounter data, with most members served through managed care organizations. Members focused on sharp increases in certain behavioral health billing codes, especially peer-to-peer services, and asked about reimbursement, utilization review, and whether the growth reflected increased need or expanded coverage. DMS said the rise was partly tied to combining facility and nonfacility behavioral health fee schedules in 2023, choosing the higher reimbursement rate to avoid cuts, and that the department has seen an uptick in peer-to-peer services. In response to concerns about overutilization, DMS said it mailed a letter to behavioral health providers, is considering limits and prior authorizations for some services, and plans to create a standardized monthly behavioral health report to monitor trends consistently and identify when controls may be needed. Lawmakers also asked whether the provider network is sufficient and whether access is adequate, especially for children. DMS said provider enrollment has expanded because behavioral health services were added to Medicaid in 2014 and because demand increased after COVID, but acknowledged studies showing children have less access than adults and said that would be an area of focus. The department said managed care organizations are required to ensure access to needed services and that current trends indicate access is available, though one member disagreed and said workforce shortages remain a major concern. Another member asked about non-emergency medical transportation spending, and DMS explained that it is handled through a capitated arrangement administered by the Transportation Cabinet rather than directly by the managed care organizations.

Transcript Highlights:

• So these are based on the base case numbers.
• The rate in New Mexico would need to charge the rates listed there.
• fee-based taxes.
• Even registration fee-based taxes.
• gallon rate, kilowatt-hour rate on electric vehicles charging, or the per gram rate on thorium in a nuclear-powered

Transcript Highlights:

• <00:21:55.440> rate the crux of performance based rate the crux of performance based rate
• c><01:18:00.239> like it will be based on a rate case like it will be based on a rate case like
• base rate going forward, what is the new base rate going forward, right,<02:28:05.120> that<02
• rate is going to be that the base rate is going to be different<02:32:35.680> from<02:32:35.920
• performance-based rate making at large performance-based rate making at large was<02:41:28.960><

Keywords: 912, senate, all

Summary: The Senate Commerce and Consumer Protection Committee held an informational briefing on the Public Utilities Commission’s performance-based regulation (PBR) framework and the Department of Commerce and Consumer Affairs’ whistleblower complaint process. Chair Jared Kohole opened the meeting, noted it was informational only with no public testimony, and explained that members would hear presentations and then have an opportunity for questions. The committee heard first from Ulupono Initiative, which provided background on why utilities are regulated, how Hawaii’s cost-of-service model and rate cases work, and why PBR was adopted to shift utility incentives away from a capital-investment bias and toward performance, efficiency, cost control, and policy goals such as renewable energy and reliability. Ulupono described Hawaii’s PBR structure as a five-year multi-year rate plan with annual revenue adjustments, a customer dividend, a Z factor for extraordinary exogenous events, and an exceptional project recovery mechanism for large projects. It also outlined performance incentive mechanisms tied to renewable portfolio standard progress, interconnection speed, reliability, and shared savings. The presentation said the current docket is evaluating a possible hybrid approach that would combine forward-looking forecasting with historical results, and Ulupono advocated for stronger incentives, arguing the current rewards are too small relative to utility revenues and should be more meaningful to better align utility behavior with legislative intent. The PUC then presented its own overview, emphasizing that the PBR docket is open and active and that the briefing was limited to the record to avoid ex parte concerns. The commission described the development of PBR in Hawaii through multiple phases beginning in 2018: an initial collaborative phase to set goals, a formal contested-case phase that produced the initial framework, later phases adding scorecards, reported metrics, and additional performance incentive mechanisms, and subsequent refinements including sunset of some mechanisms and adjustments after the August 2023 Maui wildfires. The PUC said the framework is intended to be customer-centric, administratively efficient, and protective of utility financial integrity, and that current work includes evaluating how to balance forward-looking and historical test-year approaches within the rebasing process. No votes or formal actions were taken at the briefing.

Transcript Highlights:

• So market rate survey...
• Can you tell us what the current rate, the current market rate is?
• So we set our school readiness assistance rates at 75% of the market rate survey. Right.
• of care versus market rates?
• What is the rate of pay?

Summary: The Early Childhood Committee met to receive an update from the Office of Early Childhood on Arkansas child care and early learning programs. Committee members discussed the state’s child care crisis, including reported economic losses from lack of access, the need to track access, affordability, workforce shortages, rural and infant/toddler care gaps, and the role of local leads in identifying needs across the state. The committee also approved the February 17 minutes. Office of Early Childhood staff explained their responsibilities under the LEARNS Act, including kindergarten readiness, provider quality, and access to affordable seats. They reviewed licensing, quality efforts, and the two main funding streams: School Readiness Assistance (SRA), a federally funded voucher program serving about 14,600 children with a wait list of more than 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 23,000 children, with approval to increase to 24,000 slots. Members asked about the difference between market rate surveys and cost analyses, and staff said the office is procuring both, with results expected by the end of the year. Several members raised concerns about funding levels, especially that ABC reimbursement has not kept pace with K-12 funding increases and that child care reimbursement remains below the true cost of care. Staff said ABC requires certified teachers and lower ratios than SRA, but pays less, and that some federal pre-K slots were moved into ABC to preserve continuity of care. They also explained that SRA eligibility changes, including a higher work requirement and ending a child care worker eligibility category, were made to reduce spending and serve families on the wait list. The committee discussed communication with providers and parents, technical assistance for centers, and possible future legislative action to stabilize providers and expand access, but no votes or formal actions were taken beyond approving the minutes and adjournment.

Transcript Highlights:

• And we have increased rates.
• The state's law requires us to do a rate study every two years for the DD program and the providers based
• So in 25, we increased the rates based on the prior rate study that was done by the Department of Health
• So there was a rate study. We did increase the rates in FY25.
• based on the results of the rate study.

Keywords: 996, all

Transcript Highlights:

• And again, based on data through April for 25 and then the growth rates for 26 and 27.
• And again, based on data through April for 25 and then the growth rates for 26 and 27.
• And again, based on data through April for 25 and then the growth rates for 26 and 27.
• are so high they're being priced out based on the interest rate, not on the value of the house.
• <00:55:07.119> not<00:55:07.280> on out based on the interest rate not on out based

Keywords: 1191, senate, all

Transcript Highlights:

• We request an additional increase of a base rate of Medicaid reimbursement for this base rate this time
• We're requesting an additional increase of a base rate of Medicaid reimbursement for the base rate this
• We already pay a base rate of $13.50, which is higher than the proposed $12, but we still struggle to
• In this session, we request an additional increase of the base rate of Medicaid reimbursement.
• We already pay a base rate of $1,350 higher than the post-12, but we still struggle to fill them.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• were put into the base rate rather than in the cost-of-care-plus rate, which is paid outside of contract
• The federal government requires states to assess how rates are adequately based on either the regional
• elements by defining age rate categories and details around the enhanced inclusion rates.
• that the original rate model for center-based services was made with the assumptions of more of a one-to-one
• that the original rate model for center-based services was made with the assumptions of more of a one-to-one

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• Can you tell us what the current rate, the current market rate is?
• So we said, We set our school readiness assistance rates at 75% of the market rate survey. Right.
• of care versus market rates?
• What is the rate of pay?
• ... ...was the center-based, the school-based, center-based folks that are taking three-, four-, five

Summary: The Early Childhood Committee met for an update from the Office of Early Childhood within the Department of Education. Members heard that the office’s goals under the LEARNS Act are to improve kindergarten readiness, support families, ensure quality providers, and expand affordable, accessible child care. Staff reviewed the local lead system, licensing, quality efforts such as CLASS and QRIS, and the two main funding streams: School Readiness Assistance (SRA), a federal CCDF-funded voucher program serving about 14,600 children with a wait list of a little over 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 21,000 children with authority recently increased to 24,000 slots. A major topic was the difference between market rate surveys and cost analysis studies. Officials said the department is procuring both through an RFP, hoping to begin by August and have results by late in the year. Members pressed for current reimbursement levels, the gap between ABC and SRA funding, and whether ABC funding should be increased to better match costs. Staff explained that SRA rates are set at 75% of the market rate, while ABC per-child funding is much lower, and that ABC slots are limited by the overall allocation. They also explained that some ABC slots were increased by moving children from a discontinued federal pre-K arrangement into ABC to preserve continuity of care. Committee members raised concerns about rural access, infant and toddler shortages, provider stability, workforce pay, and communication with families and providers. Officials said local leads are now helping identify underserved areas, that no county with absolutely no care is known, and that the department is trying to get a truer statewide count of children and providers. They also described efforts to improve communication through monthly provider calls, website postings, and direct case contacts with families. Members discussed possible funding increases, including ideas to reduce the SRA wait list and raise ABC funding, but no formal vote or action was taken beyond approving prior meeting minutes and receiving the update.