Transcript Highlights:

• Kevin, the<00:10:44.959> cost<00:10:45.279> of the cost of the cost of $350,000<00:10:47.360
• Uh, when you provide the cost, certainly I want the total cost and the cost per square foot on those
• So, similar cost.
• So, sim similar cost. here. So, sim similar cost.
• There's an equipment cost. renovation. There's an equipment cost.

Keywords: 1191, senate, all

Transcript Highlights:

• cost value and replace all the siding on the structure so that it conforms to a reasonably uniform appearance
• My recollection is that that had to do with creating a cause of action where replacing or partial replacement
• cost.
• And obviously, replacement cost, they're going to pay whatever it costs to get it fixed and not hit you
• Then it should be replaced, at least the As it was before, then it should be replaced, at least the entire

Summary: The Insurance Committee first heard House Bill 2250, sponsored by Representative Zimmerman, which would require insurers to cover replacement of all siding on a home when storm damage affects only part of the siding and matching materials are not reasonably available. Zimmerman said the bill is intended to codify Missouri case law and address homeowner complaints after hailstorms, where insurers allegedly paid only for the damaged side and left owners to pay for the rest if matching siding could not be found. Committee members generally expressed sympathy for affected homeowners and discussed possible refinements, including limiting the requirement to street-facing elevations and adding clearer consumer disclosures about coverage. Opposition testimony came from the Missouri Insurance Coalition, which argued the bill could increase premiums and reduce affordability, especially for homeowners choosing lower-cost policies. Coalition witnesses said insurers should repair direct physical damage but raised concerns about extending coverage to cosmetic mismatch issues and noted that consumers can sometimes buy more robust coverage through riders or different policy options. They also said better disclosure and consumer education would help. Representative Castile raised additional ideas about certified payroll and contractor accountability, though those were not part of the bill under discussion. After the HB 2250 hearing closed, the committee established a quorum and moved into executive session on House Bill 3328. The committee adopted a House Committee Substitute that, according to Representative Castile, removed the IBHS certification requirement in favor of a non-biased third-party testing lab and deleted an adjuster cap, while keeping the bill’s broader “stronger home” program intact. The committee then voted the substitute do pass by a 9-0 vote and adjourned.

Transcript Highlights:

• And it's at this time, I talked about that lowest lifecycle cost, and it's that lowest lifecycle cost
• So normally it takes a little bit... that lowest lifecycle cost, and it's that lowest lifecycle cost,
• It has some costs there, the replacement values. You can see on there, $143 billion.
• And if we were to look at those and look at just the cost—not to replace them, because some of these
• Not only its costs, it takes time.

Summary: The Senate Transportation Committee devoted its meeting to a presentation from Troy Suing of the Department of Transportation on state highway preservation needs. Suing said DOT is a leader in asset planning, but that current funding is not enough to keep up with the condition of highways, bridges, and other assets. He distinguished operations and maintenance from preservation, and described the preservation program’s main parts: pavements, bridges, and other highway facilities such as slopes, rest areas, signal systems, retaining walls, and culverts. Suing reported that about 40% of state roads are already overdue for preservation and that, with current funding, as much as 85% could need preservation within 10 years. He said there are more than 7,900 lane miles currently due, and that delaying work past the “lowest life cycle zone” increases risk and can cost three to five times more later. For bridges, he said the state has about 3,400 bridges, an average age of 52 years, and roughly 10% are over 80 years old; the share of bridges in poor condition is about 9.9%, near the federal threshold that could trigger more federal oversight. He also highlighted culvert failures, including one on SR-510, and the closed Carbon River Bridge on SR-165 as examples of how deferred preservation can lead to closures and community disruption. Committee members questioned the comparison to national asset management leadership, liability risk as roads deteriorate, the cost and regulatory burden of bridge projects, and whether DOT is relying more on its own crews for bridge work because of cost and urgency. Suing said the department is underfunded to fully implement its asset plans and is forced to focus on risk, emergent needs, and the most critical bridge work first. He said DOT’s 2026 supplemental budget identified preservation as one of five unfunded critical priorities and estimated a 10-year preservation need of $8 billion to address the backlog and become proactive again. Members discussed whether targeted funding in the next biennium could help move the state back toward the “green zone,” and the chair closed by emphasizing the real-world impacts of bridge and road failures and the need for legislative action.

Transcript Highlights:

• and need replace and need replace the<00:05:30.680> remodel<00:05:31.000> of<00:05
• The total cost to replace those is over $300 million, but that's not what MnDOT is seeking here.
• is cycle total cost to replace those is cycle total cost to replace those is over<00:10:44.240><
• extending that commuter rail would cost extending that commuter rail would cost a<00:37:02.839><
• to replace this to uh repair and replace to replace this to uh repair and replace this<00:53:49.960><

Keywords: 1183, house

Transcript Highlights:

• <00:24:10.320> just to renovate, repair or replace just to renovate, repair or replace just
• There is no cost to participate.
• It is critical to continue receiving funding for the cost of equipment replacement and ongoing maintenance
• cost of equipment replacement for the cost of equipment replacement and<00:37:46.079> ongoing<
• > fire<00:48:07.040> equipment replacement of unsafe fire equipment replacement of unsafe

Keywords: 958, all

Summary: The Capital Planning Advisory Board met for its first meeting of the year, confirmed a quorum, approved the prior year’s minutes, and welcomed new co-chairs and members. The board reviewed the capital planning timeline and a list of agencies that submitted plans but would not testify. Members were reminded to keep presentations brief because of a packed agenda. The Cabinet for Health and Family Services presented first, outlining priorities centered on public safety, infrastructure preservation, and preventive maintenance. Its requests included a $21 million maintenance pool, phase two funding for a new state public health laboratory, construction of an 18-bed children’s psychiatric hospital, and several projects at Western State Hospital and Western State Nursing Facility, including HVAC work, cooling tower repair or replacement, and chiller plant repiping. Additional projects covered elevator upgrades at Hazlewood and phased cottage renovations at Oakwood. Board members asked about vacant buildings, the cost per bed for the youth psychiatric facility, and the relationship between the CHFS youth facility and a separate DJJ facility; CHFS said the youth facility would serve DCBS-involved youth and be separate from the DJJ project. The Kentucky Department of Education then described its state-operated facilities, including the Kentucky School for the Deaf, the Kentucky School for the Blind, and the FFA leadership training center. Its priorities included additional funding for the FFA classroom and activity building, a rewrite of the SEEK education finance application system, renovation and repair of the FFA swimming pool, electrical upgrades, campus education enhancements, safety and security work, door and window replacements, and HVAC maintenance. Members asked about student outcomes, the size and cost of the swimming pool project, and construction cost assumptions; KDE said it tracks student outcomes through special education staff and that current estimates reflect higher post-COVID construction costs. The Education and Labor Cabinet began its presentation with 12 priority projects, including a state labor exchange system, renovation of the McDow Vocational Rehabilitation Center, and a new adult education and family literacy management information system. The cabinet said the labor exchange would connect job seekers and employers at no cost, while the McDow renovation was needed because the 30-year-old facility faces safety and code concerns. The cabinet planned to continue through the remaining priorities and answer questions at the end of its presentation.

Transcript Highlights:

• Uh this various roof replacements.
• repair and require full replacement. repair and require full replacement. >> Okay.
• <00:14:47.279> of includes replacement and extension of includes replacement and extension
• So, do we track their cost of going in or their costs going up or down, or do we track— >> That's no,
• <00:25:02.400> of So, so do we do we track their cost of So, so do we do we track their cost

Keywords: November 20, 2025 00:12 Call to Order and Roll Call 00:58 Information Items 06:50 Finance and Administration Cabinet 09:10 KY Infrastructure Authority 21:20 Office of Financial Management 29:14 Meeting Recessed 44:58 Reconvened 45:07 Approval of Minutes 46:35 Next Meeting Date 47:05 Adjournment, 958, all

Summary: The committee met without a quorum for much of the meeting, so several agenda items were initially heard only for information. Early updates included six informational reports, such as an Auditor of Public Accounts compliance examination with no findings, university equipment and allocation reports, school district bond issuances, Western Kentucky University’s planned public-private partnership housing redevelopment, and quarterly Kentucky Communications Network Authority reports. Members then questioned WKU officials about the P3 housing project, including the number of RFQ responses, property tax responsibility, ownership of the student life foundation, and the status of repairs to residence halls. WKU said the foundation has owned the property since 2000, one hall would be razed or demolished at the end of the academic year, and repairs to the other two were expected to be completed by fall 2027. The committee also heard a Department of Fish and Wildlife Resources acquisition project for Mount River Farms in Wayne County and a Department of Corrections roof replacement project at Luther Luckett Correctional Complex, but no votes were taken until a quorum was later established. The Kentucky Infrastructure Authority then presented six loans and four grant reallocations, including loan increases for Adair County Water District and the City of Harlan, new loans for Litchfield, Louisa, Southeastern Water Association, and Flatwoods, and grant reallocations under the Cleaner Water Program. Members asked about Harlan’s 30-year term and special condition requiring a revenue increase; KIA explained the longer term is reserved for disadvantaged communities and that the condition was meant to reinforce standard debt coverage requirements, while depreciation is reviewed but not included in cash-flow calculations. After a recess, Senator Thomas arrived and a quorum was reached. The committee approved the prior minutes and then took a consolidated vote on the action items, which passed. The final items included a Kentucky Economic Development Authority revenue bond refunding for CommonSpirit Health, several Kentucky Housing Corporation conduit and single-family bond issuances, a Western Kentucky University bond issuance, and SFCC debt issues. Members discussed the housing transactions, noting they are developer-financed and not subject to a traditional bidding process, and expressed concern about whether the process could produce more units for the same amount of money. The meeting adjourned after all information items were approved and the next meeting date was announced.

Transcript Highlights:

• The average cost for a deferred The average cost for a deferred maintenance<00:08:21.840> project<
• Peter for replacing the water, St.
• This project cost Capitol building.
• building systems need total replacement. building systems need total replacement.
• on what that might look like from a cost on what that might look like from a cost standpoint.

Keywords: 1183, house

Transcript Highlights:

• What is the cost to, the cost of labor to deliver those things.
• cost.
• and the facility capital repair and replacement costs.
• Overwhelmingly, my biggest concern is cost and cost containment.
• Overwhelmingly, my biggest concern is cost and cost containment.

Summary: The Joint Committee on Interstate 5 Bridge met remotely with Washington legislative members to receive updates on the Interstate Bridge Replacement Program, including environmental review, cost and funding, tolling, and procurement for construction. Program staff said the final supplemental environmental impact statement was published in April 2026, with a federal record of decision expected in early summer. They described the recommended design as a single-level fixed-span bridge, centered I-5 alignment, C Street ramps, one auxiliary lane in each direction, and dispersed park-and-ride parking. Members raised concerns about transparency, the closed chat function, and the decision not to include two auxiliary lanes; staff said the one-lane option was recommended through consultation with partner agencies and analysis, but the final decision would come with the record of decision. Staff also said the diversion analysis projected less than 3% traffic diversion to I-205 in 2045, though members from Oregon and Washington expressed concern about impacts to their communities and asked for more detail on mitigation and decision-making. The committee also reviewed a major cost update. Staff said the full five-mile program is now estimated at $13.5 billion to $15.2 billion, with a likely cost of $14.4 billion, up from a 2022 estimate of $5 billion to $7.5 billion, citing inflation, schedule delays, scope changes, and more detailed risk modeling. They said the first funded phase has been reduced to a $5.68 billion package focused on the Columbia River bridge replacement, connections to I-5, Hayden Island and SR-14, bridge demolition, tolling infrastructure, and advancing light rail design. Funding for that phase was described as $5.69 billion, including $2.1 billion federal funds, $1 billion from each state, and $1.5 billion in projected toll revenue. Members asked what would happen if costs rise further; staff said the estimate includes substantial contingency, the project will use progressive design-build to manage risk, and the team will continue updating the finance plan annually. A separate tolling and traffic-revenue presentation explained that four toll scenarios were analyzed using regional travel demand modeling, a toll diversion model, and a post-processing review. All scenarios assume pre-completion tolling beginning July 1, 2028, a 50% low-income discount for eligible users, and exemptions for tribal preemptions, emergency vehicles, maintenance vehicles, and organized militia. Staff said the low-income discount would affect about 4% to 6% of annual transactions and reduce annual revenues by roughly 2% to 3%. They said Scenario 2 was used for the financial analysis and is sufficient to support the $1.5 billion toll contribution in the funded phase. Members asked about toll collection costs, revenue impacts of the discount, and how the scenarios differed; staff said collection costs are expected to be in line with other WSDOT toll facilities, but exact costs are not yet set because toll rates are not final. Finally, WSDOT staff outlined procurement and delivery steps for construction. They said WSDOT will be the lead contracting agency, using progressive design-build, with a request for qualifications targeted for early July 2026, a request for proposals in October, contractor selection in April 2027, construction starting in 2028, and tolling beginning in 2028. Staff said the approach is intended to consolidate scope, reduce interface risk, and allow transparent negotiation with an independent cost estimator, while preserving an off-ramp if a fair price cannot be reached. Members asked for more detail on timing, cost allocation, and the share of the first phase funded by tolls; staff estimated tolls account for about 26% of the first phase cost.

Transcript Highlights:

• So, it's more there's no cost to that.
• It's it's more there's no cost to that.
• Uh I'm just a little bit be replaced.
• <00:16:14.480> Um, equipment needs to be replaced. Um, equipment needs to be replaced.
• Our plan is to utilize them um, in cost.

Keywords: 1191, senate, all

Transcript Highlights:

• UC expects to achieve the 2025-2026 replacement target but is reluctant on continuing the replacement
• of low-cost student housing projects a challenge. made the development of low-cost student housing projects
• Things like needing to replace or add utilities can add a great deal of cost to the project.
• The cost will vary dramatically.
• In 2022, the project's costs have increased.

Keywords: 988, house, all

Transcript Highlights:

• growth adds another $92 million in cost for a total two-year cost of over... ...graduate enrollment
• growth adds another $92 million in cost for a total two-year cost of over $1 billion.
• This means that over time, the replacement of nonresidents also represents an opportunity cost for the
• There was a cost to that.
• the tuition cost there.

Summary: The Assembly Budget Subcommittee on Education Finance, chaired by Assemblymember Alvarez, held a hearing focused on University of California budget issues. The committee reviewed UC core operations funding, enrollment trends, federal funding threats, Title IX implementation, and basic needs support. Major themes included the end of the Governor’s multi-year UC compact, the state’s fiscal outlook, UC’s enrollment growth, and the potential impacts of federal policy changes on research, health care, and student aid. On core funding, the Department of Finance described the Governor’s proposal to continue compact-related support, defer some payments, and authorize a cash-flow loan. The LAO recommended a smaller or no base increase, earmarking some funds for capital renewal, retiring deferrals when possible, avoiding new compact commitments, and funding UC annually rather than through compacts. UC argued that the compact has supported enrollment growth, student services, and operating costs, but said campuses face rising expenses, structural deficits, and limited reserves. Members questioned the effects of deferrals on students and discussed the need to prioritize less harmful reductions if cuts become necessary. The enrollment panel focused on UC’s growth in California resident enrollment and the nonresident replacement plan at Berkeley, UCLA, and UC San Diego. The LAO recommended maintaining the current enrollment target, funding enrollment separately from base increases, pausing the nonresident replacement plan, and holding enrollment flat in 2027-28. UC said it has already met compact enrollment goals, grown California undergraduate enrollment by about 18,800 students, and that further growth depends on ongoing state support. The committee also discussed the cost of enrollment growth, possible differential nonresident tuition, and a reporting request for UC to analyze the nonresident replacement approach; the motion to adopt supplemental reporting language passed. The hearing also covered federal funding risks, with the LAO and UC warning that federal changes could affect research grants, medical center reimbursement, and student financial aid. UC said research cancellations and suspensions are disrupting labs and graduate student support, while federal health policy changes could increase uncompensated care at UC hospitals. In the Title IX update, UC described its systemwide civil rights structure, annual student training, and campus support offices, and members praised the work while asking about ongoing concerns and intersegmental collaboration. The final basic-needs item began with Finance stating the Governor’s budget does not change ongoing support, but the transcript cuts off before further discussion or action.

Transcript Highlights:

• interim, I met with a contractor that installs septic tanks, and he couldn't understand why we want to replace

Bills: HB2139, HB1892, HB1893, HB1890, HB2335, HB2468, HB2091, HB2092, HB1878, HB2297, HB2127, HB1785, HB2345, HB2344, HB1780, HB1891, HB2398, HB1764, HB2564, HB1783, HB2567, HB1934, HB1778, HB1781, HB2621, HB2019, HB1803, HB2454, HB1811, HB1943, HB1589, HB1607, HB1851, HB2490, HB2546, HB2568, HB1972, HB2391, HB2575, HB1896, HB2399, HB2004, HB1894, HB2397, HB2498, HB2560, HB2310, HB2214, HB2167, HB2197, HB2116, HB1879, HB1596, HB2096, HB2298, HB2343, HB2566, HB1518, HB2044, HB2336, HB1603, HB1718, HB1740, HB1616, HB2171, HB2022, HB2347, HB1882, HB1708, HB2086, HB2154, HB2027, HB2179, HB1620, HB1913, HB2159, HB1597, HB2121, HB1864, HB2305, HB2576, HB1713, HB1729, HB1756, HB2122, HB2559, HB1743, HB1733, HB1868, HB1723, HB1711, HB1812, HB2515, HB1724, HB1604, HB2270, HB1722, HB1727, HB1920, HB1593

Keywords: invasive species, Queensland longhorn beetle, agriculture, environmental impact, University of Hawaii, Board of Education, Hawaii public schools, teacher representative, nonvoting member, bargaining unit 5, HSTA, teachers union, education governance, school board, executive session, collective bargaining, public school teacher, policy-making body, student representative, military representative

Transcript Highlights:

• <00:03:49.640> Aid recreational tax-based replacement Aid recreational tax-based replacement
• legislation comes with an initial cost legislation comes with an initial cost of<00:04:22.800>
• Equalization proposals that could cost Equalization proposals that could cost our<00:04:38.280><
• <00:29:59.000> if insufficient to cover the cost and if insufficient to cover the cost and
• costs along and current construction costs along with<00:31:49.679> the<00:31:49.840> lack<

Keywords: 1187, senate, all

Transcript Highlights:

• Those are the costs of the widgets, the cost of steel, the cost of people to do that body of work, and
• How much does it cost, you know, for us to replace and/or fix or be at danger with a bridge that is truly
• And that's why I'll be focusing on the cost, cost, cost.
• And that’s why I’ll be focusing on the cost, cost, cost.
• up costs.

Keywords: 907, all

Summary: The committee first received an informational update on the Interstate Bridge Replacement Project from Carly Francis and Travis Brower. They described the project’s purpose as improving seismic resilience, safety, freight movement, transit, and bicycle/pedestrian access across the Columbia River, and said the updated cost estimate is $13.2 billion to $14.4 billion for the full corridor. They explained the increase from the 2022 estimate as driven by construction inflation, a more conservative inflation curve, schedule delays, more detailed engineering, and risk modeling. They also outlined the funding plan, including $2.1 billion in federal funds, $1 billion each from Oregon and Washington, and $1.5 billion in projected toll revenue, and said they are working to obligate federal funds by the end of September. The panel described a first funded phase that would include the bridge, highway connections, tolling infrastructure, bridge removal, and transit design, with light rail to Vancouver still intended but dependent on additional funding. Members questioned the risk of losing federal transit funds, whether bridge design decisions were being made with legislative input, and whether the space reserved for light rail could be used for buses if transit funding does not materialize. The committee then heard testimony on maintaining Oregon’s existing roads and bridges from representatives of Knife River, the Asphalt Pavement Association of Oregon, and CRH. Witnesses said pavement and bridge preservation is severely underfunded, with ODOT needing about $400 million per year for pavement preservation but receiving roughly $100 million annually. They showed examples of deteriorating highways such as U.S. 97 and I-84 and argued that delaying maintenance leads to much higher reconstruction costs, more safety risks, and higher user costs. Knife River described layoffs and reduced work in Oregon because of limited preservation funding, while witnesses also said rising wages, equipment costs, fuel, and permitting delays are increasing project costs. Committee members asked about the role of prevailing wage, diesel equipment, hauling distances, and whether preservation work could be prioritized more effectively. Finally, economist Joe Cortright presented on recent ODOT megaproject cost overruns. He said Oregon has experienced persistent overruns driven by overly optimistic revenue forecasts, heavy reliance on debt, consultant costs, inflation above forecast, and projects that have become much larger in scope than originally presented. He cited major increases in the Interstate Bridge, Rose Quarter, and Abernathy Bridge projects and argued that some designs are far wider and more expensive than necessary. Cortright said better accountability, clearer priorities, and more disciplined project sizing are needed, and committee members pressed him on why agencies proceed with larger designs even when consultants recommend narrower, less expensive alternatives.

Transcript Highlights:

• The cost of the projects are going up.
• In 2023 and 2024, we replaced 32 units.
• So far this year, we're on schedule to replace 38 in one year.
• And airlines love to tell us all the time, keep your costs down.
• And then out of that builds what's called the cost per in-plane passenger.

Summary: The Transportation Committee met to consider two bills and then held a lengthy discussion on Florida airport infrastructure. SB 246, presented by Senator Rodriguez on behalf of Senator Gruters, would authorize a UFC specialty license plate, with proceeds supporting the UFC Foundation’s charitable work. A UFC Foundation representative described community beneficiaries and said the plate would help raise funds for local charities. With no questions or debate, the committee voted SB 246 favorably. The committee also took up SPB 7012, a Department of Highway Safety and Motor Vehicles public-records exemption bill that would remove the October 1, 2026 repeal date for certain active investigatory records. Senator Avila moved to submit it as a committee bill, there was no objection, and it was reported favorably as a committee bill. The remainder of the meeting focused on the Comprehensive Airport Infrastructure Program. FDOT Secretary Jared Perdue outlined Florida’s aviation system, the department’s airport funding programs, and the state’s role as a financial partner in safety, capacity, preservation, and economic development projects. He said Florida has 128 public-use airports, 21 commercial-service airports, and four large-hub airports, and noted that airport funding is largely supported by gas-tax-related revenues, with additional support from documentary stamp revenue and other fees. He also discussed the new airport infrastructure planning requirements created last session and said all required airports had submitted plans. Committee members asked about the loss of aviation fuel tax revenue, workforce development, project timelines, and how FDOT prioritizes funding, with Perdue emphasizing safety, preservation, capacity, economic return, and matching funds. A panel from Miami, Orlando, Fort Lauderdale, and Tampa international airports then described major capital programs, passenger growth, and funding needs. The airports highlighted terminal expansions, parking, baggage systems, airfield rehabilitation, people movers, and other modernization projects, along with the importance of maintaining aging facilities while accommodating growth. They said FDOT and FAA grants are helpful but increasingly insufficient for runway and taxiway costs, and several panelists said passenger facility charges and other revenue tools are important to future self-sufficiency. Members also asked about workforce shortages, small-business participation, landing-fee negotiations, and non-aeronautical revenue. The panel said workforce challenges are most acute in trades and maintenance, small-business programs are active at each airport, and landing fees are negotiated with airlines to keep airports competitive while funding needed improvements.

Transcript Highlights:

• <00:15:50.759> of leadership uh replacement of leadership uh replacement of approximately<
• replacement of windows at our Independence Elementary School and replacement of wall and floor coverings
• replacement of windows at our Independence Elementary School and replacement of wall and floor coverings
• and increasing future maintenance costs and increasing future maintenance costs we<00:21:33.679>
• million $50 million in one-time costs million $50 million in one-time costs and<01:27:18.080>

Keywords: 1187, senate, all

Transcript Highlights:

• I'm trying to focus on maintenance costs.
• replacement in San Felipe Pueblo.
• It will be a total bridge replacement.
• , costing $7.3 million.
• We have an estimated unit cost for each one and then a total cost. And then the quantity for it.

Transcript Highlights:

• And a potential cost for a plan there.
• would cost.
• These are projects such as the boiler replacement, the window replacements at the Capitol grounds, and
• Within the total cost, the construction costs, which are being provided by Mortensen, NDIT costs, which
• And they would be under the soft cost then, state and soft costs? That $50 million? Mr.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes before hearing a series of informational updates. The Petroleum Council reported that North Dakota oil production is expected to remain relatively flat at just under 1.2 million barrels per day, with activity shifting northward in the Bakken as technology improves and three- and four-mile laterals boost well performance. The presentation also discussed oil and gas prices, gas taxation, flaring concerns, the importance of pipelines and other linear infrastructure, and enhanced oil recovery pilot projects supported by state and federal funding. Members asked questions about gas production taxes, natural gas liquids, and the outlook for drilling rigs and future production. The Office of State Tax Commissioner then reviewed the federal “big beautiful bill” and its estimated effect on North Dakota individual and business income tax collections. Staff explained that most of the individual income tax impact comes from the permanent increase in the standard deduction, while temporary provisions such as senior deductions, tip and overtime exclusions, and auto loan interest deductions have smaller or limited-term effects. They also noted that business tax changes, especially depreciation and expensing provisions, create a larger near-term cash impact, and that some FY25 collections likely reflected one-time oil field transactions that may have inflated the baseline used in earlier estimates. OMB provided updates on major capital projects and facility funding. For Capitol grounds improvements, officials described plans for 18th-floor renovations, wayfinding upgrades, public seating, lighting, tree management, and possible restroom and lobby reconfiguration, while also noting the governor’s residence security project and the discovery of human remains on the Capitol grounds. OMB and its consultants also reported on the state facility maintenance fund, including window replacement, boiler work, roof and foundation repairs, and a new facility conditions assessment covering more state buildings. Updates were also given on the new state hospital in Jamestown, the Minot state office building, and the use of federal state fiscal recovery funds, including possible future reallocations to the Department of Corrections. Finally, Legislative Council staff summarized the interim compliance report on legislative intent and trust fund activity, highlighting the status of lines of credit, Bank of North Dakota profit transfers, the statewide litigation pool, the new Office of Guardianship and Conservatorship, corrections planning, HHS program updates, and a likely future general fund request for the unemployment insurance modernization project. No formal votes were taken beyond approval of the minutes; the meeting was primarily informational, with members asking clarifying questions throughout.

Transcript Highlights:

• Texas has already taken one step to address the pole challenge by reimbursing replacement costs in unserved
• However, because of utility pole replacement or placement is also an eligible cost within current and
• What's it, what's an average cost to replace one of these poles? That's a great question.
• The way the pole replacement program works though is that we can only reimburse either half cost or up
• cost allocation, the creation of a fund for pole replacements and a process for resolving disputes regarding

Transcript Highlights:

• would cost, and we'll compare that to the costs of a reinterment process.
• And then the boiler replacement...
• These are projects such as the boiler replacement, the window replacements at the Capitol grounds, and
• Within the total cost, the construction costs, which are being provided by Mortensen, NDIT costs, which
• The response was yes, and that they would be under the soft costs, including the state and soft costs

Summary: The Budget Section Leadership Division met with a quorum present and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity, which described North Dakota production as holding steady around 1.1 to 1.2 million barrels per day despite lower prices and market volatility. The presentation emphasized that efficiency gains, longer laterals, and improved completion technology are allowing operators to sustain output while activity shifts north in the Bakken. Members asked about gas taxation, natural gas liquids, flaring, and enhanced oil recovery; the witness said gas is taxed by volume, most liquids are handled through oil lines or gas processing, and the state’s EOR pilot projects and new gas infrastructure are intended to help hold production flat and expand future recovery. The committee then received a presentation from the Tax Department on the federal “big beautiful bill” and its effect on North Dakota income tax collections. The department explained that most of the federal changes were extensions of existing Tax Cuts and Jobs Act provisions, but several items — including the larger standard deduction, senior deduction, tip and overtime exclusions, auto loan interest deduction, and business expensing changes — affect state collections. Revised estimates showed a smaller-than-expected impact on individual income tax, with the department suggesting a net cash effect in the range of roughly $30 million to $35 million when business and individual effects are combined, plus a possible one-time distortion from large oil-field transactions in fiscal year 2025. Members asked which provisions apply to standard versus itemized returns, and the department clarified that most of the individual provisions apply broadly, while the SALT-related item is itemizer-specific. OMB then reported on major capital projects and facility funding. Updates included Capitol grounds improvements such as 18th-floor renovations, wayfinding, augmented reality displays for the Rough Rider Hall of Fame, tree management and lighting studies, and restroom and parking reconfiguration in the tower. OMB also described security upgrades at the governor’s residence, where human remains were discovered on site and are being handled with historical and legal review. The state hospital project in Jamestown remains on schedule for substantial completion in winter 2027 and opening in spring 2028, with costs currently estimated a little over $292 million and a line of credit expected to be drawn in April 2027. The North Central State Office Building in Minot is under construction, with a $5.6 million line of credit already accessed. OMB also reported on the State Facility Maintenance Fund, noting about $1.1 million spent so far on projects such as the Liberty Memorial Building roof and foundation work, Capitol window replacement, boiler replacement, and kitchen remodeling. Finally, Legislative Council staff reviewed the interim compliance report on legislative intent and state trust funds. The report highlighted the status of multiple lines of credit, including those for the state hospital and Minot office building, and noted that the executive budget will likely need to include repayment planning for about $350 million of expected outstanding balances. Other updates included the Bank of North Dakota profit transfer schedule, litigation pool spending, the new Office of Guardianship and Conservatorship, the Missouri River Correctional Center planning effort, HHS items such as FMAP and child care assistance, Job Service’s unemployment insurance modernization project, and DPI school aid turnback estimates. No formal votes were taken beyond approval of the minutes.