Transcript Highlights:

• </c><01:30:54.480><c> would</c> say Department of Revenue would say Department of Revenue would calculate
• <01:30:55.400><c> the</c> calculate the calculate the total<01:30:57.480><c> and</c><01:30:58.199><c>
• Revenue so we we're not a part of it so Revenue so we we're not a part of it so that<01:33:19.080><c>
• revenue.
• aid revenue, the second column.

Keywords: 928, house, all

Summary: The committee first discussed HB 443, which would change terms and vacancy language for members of a higher education commission. Members raised concerns that the bill was too narrow to address broader issues with commission membership, including expired appointments, attendance expectations, and whether the Department of Education could replace the commission’s role. Several members suggested the bill was not ready for action and favored holding it for further work, possibly through a subcommittee or work session. One member suggested that if attendance standards were added, no more than two unexcused absences should trigger removal, given the commission’s meeting schedule. The chair said he would defer action and form a small subcommittee to report back before the committee deadline. The committee then moved to HB 484, dealing with repurposing Career and Technical Education classroom space after 20 years of exclusive use. The chair explained that the bill was aimed at the Milford CTE project, where shared use of space could allow a school to repurpose part of a CTE facility while still using it for CTE-related instruction. Members discussed other possible situations around the state, including Claremont, North Conway, and Jaffrey/Rindge, and whether the bill should be limited to Milford or broadened to allow local districts more flexibility. Some members favored passing the bill now to help CTE projects move forward, while others argued for an amendment removing the requirement that the space be vacated specifically to expand the CTE program occupying it. Testimony and discussion emphasized that the Milford project had state approval but reduced funding, requiring a smaller scope and repurposing of existing space. Supporters said the bill could help preserve CTE programs while also benefiting general education space needs, and that local districts should have flexibility after 20 years. Opponents or cautious members noted that the language might not fit every district situation and asked for feedback from Director Beard and Steve Rothenberg before final action. The committee did not take a final vote in the portion provided, and instead discussed waiting for an amendment and additional input before acting.

Transcript Highlights:

• Have you done any calculations?
• So we calculate a power cost customers?
• Uh the revenues from this lowered costs.
• Have you done any calculations? Meyer. Have you done any calculations?
• a full calculation of the<00:15:10.240><c> total</c><00:15:10.560><c> savings.

Keywords: 1183, house

Transcript Highlights:

• Revenue to the nonprofit? Yeah, revenue to the nonprofit. Thank you. Great. Any further questions?
• And that's how we calculated it.
• And so the revenues grew by 5.5%, which is just above our long-run average for revenue growth.
• And so the revenues grew by 5.5%, which is just above our long-run average for revenue growth.
• And so the revenues grew by 5.5%. That's just above our long-run average for revenue growth.

Committee: House Finance

Keywords: 904, all

Transcript Highlights:

• No, this doesn't change the date at which tax revenues are still going to be coming.
• It actually has to count toward that revenue cap.
• It would change the calculation. And so... It would change the calculation.
• But what we're doing is we're banking in higher revenue, higher revenue targets at that time.
• We're just going to get it from you because it's still in our CPI calculation.

Committee: House Special Committee on Property Tax Reform

Keywords: 959, house, all

Transcript Highlights:

• Rural hospitals do disproportionately rely on Medicaid revenue.
• On slide 8, just a couple of potential impacts here that we've calculated.
• And I know we've seen some stuff on revenue and revenue projections, and that looks good.
• I think that the payment error rate calculation has been around for decades.
• The revenue from it comes from the surcharge tax, and it's a separate fund.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• </c><00:21:50.320><c> is</c> Allenstown their swept revenue is Allenstown their swept revenue is 638k
• And this is... look up and see what other Revenue they look up and see what other Revenue they collect
• </c> funding lot of any tuition Revenue funding lot of any tuition Revenue coming<00:40:16.079><c> in
• </c> coming in there's a bunch of Revenue coming in there's a bunch of Revenue that<00:40:17.480><c>
• </c> there's other some some other Revenue there's other some some other Revenue sources<00:56:19.520

Keywords: 928, house, all

Summary: The Department of Education’s Bureau of School Finance provided an adequacy-funding training for Division II, led by Mark Mello. He walked the committee through the adequacy formula using Albany, Allenstown, and Alton as examples, explaining average daily membership, base adequacy aid, and differential aid for free/reduced-price meals, special education, and English language learners. He also noted a recent change requiring home-education differential aid and emphasized that these aid streams are generally unrestricted district funding rather than money tied to specific students or programs. A major focus was the ongoing litigation over the adequacy base amount and the statewide education property tax, or SWEPT. Mello explained the historical basis of the current base amount, the 2008 legislative report that set the original methodology, and the later court ruling that the adequacy amount should be $7,356, which is now before the Supreme Court. He also described how SWEPT currently raises a fixed statewide amount of $363 million and how that revenue is used to offset the state’s adequacy obligation. For the example towns, Albany and Allenstown receive state adequacy grants because their SWEPT revenue is below their calculated adequacy cost, while Alton is an excess SWEPT community because its local SWEPT revenue exceeds the cost of adequate education. The discussion then turned to the pending “excess SWEPT” issue in the Supreme Court and what would happen if excess collections had to be remitted to the state. Mello said the Department is preparing a hypothetical walkthrough and explained that, if the court upholds the Superior Court ruling, DRA would likely be directed to collect excess SWEPT. Members raised concerns about whether SWEPT must be used for educational purposes and about the cash-flow burden on towns if money had to move from municipalities to the state and then back to districts. Mello and members discussed possible administrative workarounds, such as credits against other state aid distributions, and noted that the committee would continue reviewing the mechanics if the court decision comes down during budget work.

Transcript Highlights:

• in revenue available to spend in each biennium is revenue collected during that biennium plus the remaining
• It will be general revenue in 26-27.
• this time is due to severance tax revenue that is retained in general revenue instead of going to the
• gas tax revenues as well.
• tax revenue in fiscal 24.

Committee: House Ways & Means

Transcript Highlights:

• So that would be included in the calculation of the luxury vehicle tax.
• in the calculation of the luxury vehicle tax.
• For Section 702, dealing with traffic safety camera local traffic safety camera revenue going to the
• Beginning July 1, 2028, there is an apportioned share of revenue from automatic traffic safety camera
• revenue to be deposited into the account, specifically $5,000 annually for each camera active within

Summary: The Transportation Committee met in executive session on Gross Substitute House Bill 2711, a transportation resources measure, after a staff walkthrough of the Senate striking amendment S-5820.4. Staff explained that the striker largely replaced the bill with provisions from Senate Bill 6352 and related transportation revenue and policy changes, including updates to mobile driver’s licenses, account interest provisions, recreational vessel and luxury vehicle tax clarifications, peer-to-peer tax administration changes, fuel tax timing changes, aircraft fuel tax and account changes, bicycle education grants, ferry payment-card fee authority, traffic safety camera revenue and rebuttable presumption rules, online driver education regulation, transit annexation tax/liability clarification, Sound Transit 75-year bond authority limits, stolen copper protections for light rail and DOT communications infrastructure, and a highway contracting threshold change. Staff also reviewed fiscal impacts, including revenue gains from trade-in value clarifications and aircraft fuel changes, and losses from the diesel tax delay, motorhome exemption, and repeal of the luxury aircraft tax. Members asked several clarifying questions, including the luxury RV tax threshold, how trade-in value is treated under the luxury vehicle tax, whether ferry debit-card fees are authorized, and the legality of passing card-processing fees to customers. Staff and counsel said the luxury vehicle tax applies to value over $100,000, trade-in value is added back for the luxury tax calculation, and the ferry provision is intended to clarify that both credit and debit card surcharges may be passed through. On the traffic safety camera section, staff described a revised approach that would require stronger proof from registered owners to rebut presumed responsibility, and on Sound Transit bonds, staff clarified that bonds over 40 years would be limited to federal transportation loan purposes and would affect eligibility for certain state grants. After caucus, the committee returned to executive session, waived the amendment posting deadline under Senate Rule 45, adopted the striking amendment, and then voted to advance ESHB 2711 as amended with a do pass recommendation to the Rules Committee. The motion carried, and the chair thanked staff before adjourning the meeting.

Transcript Highlights:

• And then there's the JFAC adopted revenue number.
• Conformity and then the adopted revenue number from JFAC.
• When JFAC did their revised numbers, this is the revenue forecast.
• When JFAC did their revised numbers, this is the revenue forecast.
• Revenue.

Committee: Senate Local Government and Taxation

Keywords: 989, all

Transcript Highlights:

• Yeah, that's a different problem than revenue. That's a completely different problem in revenue.
• Yeah, that's a different problem than revenue. That's a completely different problem in revenue.
• , losing out on revenues.
• consensus revenue estimate.
• This is that we're not generating more revenue. is our revenue neutrality piece.

Keywords: 959, house, all

Transcript Highlights:

• Is that an FTE calculation, or is that a student body?
• that will not be general fund revenue to support operations that you see.
• Can someone walk me through how that calculation ended up being what it is?
• So anything on top of that will be based on a per-pupil calculation.
• Can you talk to me about your calculation to the number? Yeah, absolutely.

Summary: The committee heard an overview of the May Revision’s Proposition 98 changes for K-12 and community colleges. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with higher guarantees in each year, full payment of the prior settle-up, and larger deposits into the school rainy-day fund. The LAO said the revenue and LCFF updates were reasonable, but urged caution about the settle-up approach and recommended using more of the available funding to protect ongoing programs and build budget resilience. Members focused heavily on the size of the proposed $3.9 billion settle-up, the $10.3 billion reserve deposit, declining K-12 enrollment, and how much of the new funding should be ongoing versus one-time. The committee then reviewed the community colleges portion of the budget. Finance described the May Revision’s higher SCFF COLA, additional funding for enrollment growth, a student support block grant, apprenticeship adjustments, and continued funding for deferred maintenance, Calbright, Common Cloud, and credit for prior learning. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the growth formula, and a COLA for Student Equity and Achievement. The LAO recommended prioritizing the statutory COLA increase, noted that more than half of districts are already above current-year growth targets, and said the new adult learner demonstration project should be rejected because districts already have tools to support similar services. Members also discussed a $52 million current-year apportionment shortfall, which Finance said was discovered too late for the May Revision and would need to be addressed later. Finally, the committee took up the proposed implementation of the federal Workforce Pell program. Finance proposed one-time funding for the California Student Aid Commission and Cradle to Career to build eligibility and data systems, along with trailer bill changes to set up state approval processes. CSAC said the program is promising but highly complex, that California lacks the needed infrastructure, and that the state will need emergency regulations, data linkages, and ongoing funding beyond the one-time proposal. The LAO agreed that some initial funding is needed but warned that the amounts and ongoing costs remain uncertain and that the Legislature should carefully draft the trailer bill language. Members asked about timing, other states’ actions, and how the state would ensure the program is ready for students and institutions.

Transcript Highlights:

• It is RS 33142, Internal Revenue Code conformity.
• It is RS 33142, Internal Revenue Code conformity.
• It was already in the revenue number.
• It was already in the revenue number.
• A senior citizen in my calculation, an average senior citizen is, A senior citizen in my calculation,

Committee: House Revenue and Taxation

Keywords: 989, all

Transcript Highlights:

• These auctions bring in revenue to the state, which is then distributed to five different accounts that
• in one of two ways, depending on Ecology's projected revenue for the year.
• would not be a net change in that revenue.
• is being spent, and the results that revenue produces.
• is being spent, and the results that revenue produces.

Bills: HB2251 , HB2254 , HB2385

Committee: House Appropriations

Keywords: climate change, commitment act, emission reductions, sustainability, environmental policy, HB 2254, Washington, Health Care Authority, partnership access line, psychiatric consultation line, first approach skills training, behavioral health, mental health, assessment, administrative costs, health insurance, health carriers, self-funded plans, multiple employer welfare arrangement, MEWA

Transcript Highlights:

• The revenue side includes inflation in the income tax model, which informs the income tax revenue projections
• </c> operations the estimate was calculated operations the estimate was calculated by<00:31:03.720><c
• </c> fund is excluded from our calculation fund is excluded from our calculation because<00:32:07.320
• </c><00:34:45.000><c> for</c> $22 there's a similar calculation for $22 there's a similar calculation
• </c><00:48:29.640><c> against</c> discretionary um calculation against discretionary um calculation against

Bills: HF3

Committee: House Ways and Means

Keywords: legislative auditor, reporting, accountability, state finance, executive agency oversight, 1183, house

Transcript Highlights:

• </c> the impact will be on the revenue the impact will be on the revenue forecast<00:02:21.200><c> so
• </c> should consider the financing uh revenue should consider the financing uh revenue streams<00:52:
• </c> a word about what compensatory revenue a word about what compensatory revenue is<00:59:20.400><c
• </c> allowance is compensatory Revenue allowance is compensatory Revenue compensatory<00:59:38.400><c
• Is the basic formula allowance the compensatory revenue, transportation sparsity revenue, which is what

Committee: House Education Finance

Keywords: 1183, house

Transcript Highlights:

• All right, we'll adopt that as nonrecurring revenue.
• Mineral revenue, well, I don't know.
• So the Department of Revenue required employers to withhold 3.9%.
• I'm looking at particular revenue sources.
• Those are calculated numbers. So those are not part of the issue.

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• All right, we'll adopt that as non-recurring revenue.
• Mineral revenue, well, I don't know.
• So the Department of Revenue required employers to withhold 3.9%.
• Those are calculated numbers, so those are not part of the issue.
• allocated to that special fund from a particular revenue source.

Keywords: 965, house, all

Summary: The Revenue Estimating Conference met with four members present and first approved the December 11, 2025 minutes. Members then recognized the FYI end-of-balance of $577,077,871 as non-recurring revenue. The main business was revising the state revenue forecast for FY 2026, with the Division of Administration recommending a reduction of about $113 million, driven primarily by weaker individual income tax collections, softer general sales tax receipts, and a substantial cut to corporate income tax forecasts. The Legislative Fiscal Office presented a somewhat different but still cautious outlook, and members discussed withholding rates, refund growth, corporate collections, and the effects of the franchise tax repeal and tax reform changes. After questions to the Department of Revenue about collections, refunds, enforcement, and settlements, the conference adopted the Division of Administration’s FY 2026 forecast. The conference then reviewed the FY 2027 recurring forecast. The Division of Administration again recommended a reduction, this time about $104 million, citing continued caution on individual income and corporate taxes, while the Legislative Fiscal Office projected a net increase of about $127 million, largely from sales tax, severance, royalties, vehicle sales tax, and other revenue streams. Members discussed the practical budget impact of the revised forecasts, including the need to reduce spending and the difficulty of funding a possible teacher stipend if a constitutional amendment fails. The FY 2027 recurring forecast was adopted. Members also adopted the long-range forecast, the proposed inflation rates for the Millennium Trust and parish severance allocation, and the incentive expenditure forecast. The incentive discussion noted that reported incentive costs reduce available revenue before appropriations, and members raised the possibility of reviewing or capping such incentives. The Treasurer’s Office then reported that the General Fund cash balance was $404.1 million as of May 5, 2026, and the interfund borrowing base was about $9.18 billion, with cash positions generally similar to the prior year. The meeting ended with a note that another REC meeting might be needed after the May 16 election, followed by adjournment.

Transcript Highlights:

• You'll see that we have general revenue and we also have dedicated general, or dedicated tax revenue,
• It also includes calculated projections in local property revenue growth to accurately fund state foundation
• So that's the general revenue.
• machine revenues.
• They have their designated state revenue, which many years ago was an allocation from general revenue

Keywords: 1204, all

Transcript Highlights:

• You'll see that we have general revenue and we also have dedicated general, or dedicated tax revenue
• First, beginning with general revenue.
• It also includes calculated projections in local property revenue growth to accurately fund state foundation
• It also includes calculated projections in local property revenue growth to accurately fund state foundation
• So that's the general revenue.

Summary: The House and Senate Education Committee first approved minutes from February 2 and 3, then heard an interim study proposal on Arkansas adult education and the Excel Center model, presented by Goodwill Industries of Arkansas and the University of Notre Dame’s Lab for Economic Opportunities. Witnesses argued that about 300,000 Arkansas adults lack a high school diploma or GED and described the Excel Center as a diploma-granting public charter option for adults 19 and older, with wraparound supports such as child care, transportation, tutoring, life coaching, and career services. They said the Arkansas campuses are not state-funded, highlighted growth in enrollment and graduation outcomes, and cited research showing improved employment, earnings, and reduced criminal justice involvement for graduates. Committee members discussed the role of Goodwill’s nonprofit mission, the need for multiple adult education pathways, and the relationship between adult education challenges and broader state efforts such as LEARNS and ACCESS. The committee then debated the interim study proposal procedure, including whether questions should have been taken before the vote. The motion to adopt the ISP passed, and members noted that the study would broadly examine adult education, GED testing, high school diplomas, charter schools, in-person adult education, and funding allocation. Several members asked for follow-up information on current adult education funding, the availability of Excel Centers, and the criminal justice study results. After that, staff from the Bureau of Legislative Research gave a detailed adequacy funding overview for Arkansas K-12 education. They reviewed national funding principles and then explained Arkansas’s revenue streams and distribution system, including general revenue, the Educational Excellence Trust Fund, the Educational Adequacy Fund, local property-tax revenues, and facilities partnership funding. They also walked through the state’s foundation formula, categorical aid, supplemental aid, and additional funding, including the per-student matrix amount of $7,771 for 2025 and how funds are allocated to districts and charters. Members asked about student support staff, special education high-cost occurrences, ALE funding, teacher salary equalization, and the Excel Center’s treatment in funding totals; staff said some of those questions would be addressed in a later spending presentation. The meeting ended after the committee was told the department was present mainly to answer questions and no further business remained.

Transcript Highlights:

• In terms of revenue.
• Again, this can result in gains to revenue or loss to revenue depending on the company.
• “It may bring revenue to California, may lose revenue for California depending on how profitable those
• stream and utilize that revenue stream.
• More state revenue isn't just a line item.

Keywords: 988, house, all