Transcript Highlights:

• and today we will be Michael Harbour, an actuary with OSA.
• by the state actuary.
• And again, this state actuary would continue to serve as a plan actuary for the restated Left 1.
• So what if actual experience varies from our assumptions?
• mention the fact that pension actuaries and health care actuaries use very different assumptions and

Keywords: 904, all

Transcript Highlights:

• Now we'll move on to Michael Harbour, the actuary, for an actuarial update. Great.
• Now we'll move on to Michael Harbour, the actuary, for an actuarial update.
• Yes, so as we looked ahead to September, two big actuarial presentations—our deputy actuary, Lisa, mentioned
• , which gets back to my actuarial comments about how there are other assumptions related to the economic
• the assumptions as well, right?

Summary: The Select Committee on Pension Policy Executive Committee approved the June minutes and received a brief update from Assistant Attorney General Jesse Yoder, who had no litigation updates but offered to answer questions. Actuary Michael Harbour then previewed the September full committee meeting, which will include a report on the financial condition of the DRS-administered pension plans and the state actuary’s recommended economic assumptions. He also cautioned that any actuarial pricing done over the summer could change if assumptions are updated, and suggested taking votes on potential legislation later in the interim, possibly in November or December. A discussion followed about the Left 1 benefit improvement and where the funding came from. Harbour said the benefit tied to SSB 5791 (2022) was paid from the Left 1 trust fund, while a separate Left 2 benefit improvement was in SHB 1701, and he agreed to double-check the issue with DRS after members raised conflicting information. Members then discussed the broader Left 1 study, including whether IRS approval is a key barrier and whether options are limited to merger or closure. Several members asked to hear from Ice Miller, which has been advising on the tax issues, and staff said the committee should receive a written response in the next couple of weeks and could have Ice Miller appear in October. The committee reviewed and adjusted its interim work plan. September will include the actuarial presentations, a more detailed Left 1 study update, and a presentation on PERS and TERS Plan 1 COLAs, including a recap of the bill recommended this year and initial considerations for an ad hoc COLA. October is expected to include DRS administrative and performance updates, with November reserved for the State Investment Board update and a final Left 1 study update, and December may include an educational presentation on excess compensation. Members also requested a future briefing on the month-of-death benefit discussion. The September agenda was adopted, correspondence materials were noted, and the meeting adjourned.

Transcript Highlights:

• and is also the chief actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This is a presentation for the CAP, or the California Actuarial Advisory Panel meeting.
• We can talk about the role of the investment return assumption.
• Basically, the investment return assumption...

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for roughly two million members and the importance of actuarial assumptions to state budgeting and long-term pension health. Scott Tarando, CalPERS chief actuary and a CAP member, presented the report with Michael Cohen of CalPERS’ investment office available for questions. Tarando explained the statutory disclosure requirements under Government Code Section 2029, including sensitivity analysis around CalPERS’ 6.8% discount rate, and discussed how investment return assumptions and the 20-year amortization period affect contribution rates, unfunded liabilities, and budget volatility. He said shorter amortization periods would raise near-term costs but reduce long-term interest costs, and noted that CalPERS’ current approach is intended to smooth contribution changes over time. He also described the timing of the annual valuation process, explaining that contribution rates for a given fiscal year are based on the most recently audited year-end data and are approved by the board before being used in the budget process. Members asked about the relationship between average employee service life and amortization, whether more current data could be used, the effect of AI and labor-market changes on future assumptions, whether retirees’ benefits change with annual valuations, and CalPERS’ funded status. Tarando said the average expected working lifetime is about 11 to 12 years, while CalPERS uses a 20-year amortization period; he also said retiree benefits are set at retirement and do not change based on later valuations. He estimated CalPERS’ funded status had risen from the mid-60% range about 10 years ago to around 79% at June 30 and above 80% more recently. Cohen said CalPERS had complied with federal information requests and that no formal federal review had been released. During public comment, a county association representative praised the improved funded status and PEPRA reforms. The chairs closed by reiterating fiduciary responsibility and the need to protect CalPERS’ long-term stability, and the meeting adjourned.

Transcript Highlights:

• and is also the Chief Actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This is a presentation for the CAP, or the California Actuarial Advisory Panel meeting.
• We can talk about the role of the investment return assumption.
• Basically, the investment return assumption...

Keywords: 987, senate, all

Summary: The joint hearing of the Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement focused on CalPERS and the independent report from the California Actuarial Advisory Panel. Opening remarks emphasized CalPERS’ importance to retirement security for public workers and the state budget, with concerns raised about economic volatility, inflation, federal policy, and how those factors could affect pension funding and contribution rates. Scott Tarando, CalPERS Chief Actuary and a CAP member, explained the statutory reporting requirements under Government Code Section 2029, including disclosures based on a discount rate of 6.8% and sensitivity analyses using plus or minus 2% assumptions. He described how the investment return assumption affects liabilities, contribution rates, and budget stability, and how CalPERS uses a 20-year amortization period for new unfunded liabilities, with a five-year smoothing period for investment gains and losses. He also noted that the report uses 2024 data for 2025-26 contribution rates, while the 2025 valuation is already being prepared for the next cycle. Committee members asked about the relationship between amortization periods and employee service life, whether more current data could be used, the impact of AI and workforce changes, retirement ages, retiree benefits, and CalPERS’ funded status. Tarando said the plan’s member experience is relatively stable year to year, that AI’s long-term effects are still uncertain, and that retiree benefits do not change based on annual actuarial updates. He estimated CalPERS’ funded status had improved from the mid-60% range about 10 years ago to around 79% at the last valuation and over 80% more recently. Michael Cohen said CalPERS had complied with federal information requests and that no formal federal review had been released. During public comment, a representative of the California State Association of Counties praised PEPRA reforms and said CalPERS’ funded status had improved substantially. The hearing ended with closing remarks reaffirming fiduciary responsibility and support for CalPERS, and no votes were taken.

Transcript Highlights:

• This hearing is required by law to hear an independent report from the California Actuarial Advisory
• and is also the chief actuary at CalPERS.
• I'm Chief Actuary for CalPERS. I'm also a member of the California Actuarial Advisory Panel.
• This presentation is for the CAP, or the California Actuarial Advisory Panel meeting.
• We can talk about the role of the investment return assumption.

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

Transcript Highlights:

• used for actuarial purposes.
• What that means is that's the assumption over a long period of time, that's the assumption for actuarial
• What that means is that's the assumption over a long period of time, that's the assumption for actuarial
• So every year we, the, through the assumptions, through the estimating conference, there's an assumptions
• conference that goes and reviews what that actuarial return assumption is going to be.

Summary: The Government Operations Subcommittee met with a quorum and began with member introductions and remarks from the chair emphasizing the committee’s focus on government efficiency, accountability, and oversight of executive branch agencies. Members shared their districts and backgrounds, with several noting hurricane recovery in their communities and a shared interest in reducing bureaucracy and improving service to Floridians. The committee’s only presentation was from Chris Spencer, Executive Director of the State Board of Administration, who gave an overview of the SBA’s governance structure, investment responsibilities, and divestment policies. He explained the SBA’s management of more than $257 billion in assets, including the Florida Retirement System, the Florida Hurricane Catastrophe Fund, and Florida PRIME, and reviewed the Protecting Florida’s Investments Act restrictions covering Northern Ireland, Cuba, Venezuela, Israel, Sudan, Iran, and China. He also described the implementation of HB 7071, including the required divestment from direct holdings in Chinese companies, and said the SBA had reduced its direct Chinese holdings from 33 companies totaling over $172 million to 13 companies totaling about $64 million, with completion expected ahead of the September 1, 2025 deadline. Members asked detailed questions about the Israel boycott list, Morningstar and MSCI, how the SBA gathers information, whether Cuba’s federal designation changes affect Florida law, how companies are removed from scrutinized lists, and whether divestment timing could affect returns. Spencer said the SBA uses public and paid research sources, gives companies a 90-day cure period in some cases, and brings list changes to the trustees for approval. He also explained that the China benchmark change is intended to reduce passive exposure while still allowing active investment decisions, and said the PFIA restrictions have had a modestly positive overall effect on pension performance. The chair also asked about the Florida Retirement System funded ratio and the CAT Fund’s capacity; Spencer said the pension fund is at 80.7% funded, that actuarial assumptions are reviewed regularly, and that the CAT Fund currently has more than $10.5 billion in liquid claims-paying capacity and is expected to remain well positioned for hurricane losses. No votes were taken, and the meeting adjourned after the presentation and questions.

Transcript Highlights:

• aims to strengthen oversight to ensure rate increases are fully justified and grounded in sound actuarial
• House Bill 3780 is an independent actuary bill.
• Insurance companies have their own actuaries, staff actuaries.
• So this would require an independent actuary at the cost to the insurance company.
• So I would say that they were already paying for these actuaries.

Bills: HB3048, HB3259, HB3646, HB3696, HB3780, HB3781, HB3802, HB3818, HB4294, HB4488, HB2929

Keywords: insurance, nonadmitted insurers, surplus lines, insurance regulation, Oklahoma, health insurance, contracting entities, medical providers, enrollment, beneficiary rights, property and casualty, rates, filing, Insurance Commissioner, regulation, property, regulations, actuary, rate filing, independent review

Transcript Highlights:

• independent living communities that make no promise to provide future care and therefore do not have Actuarial

Bills: SB500, SB1522, SB1137, SB1266

Keywords: SB 500, Texas adoption law, Family Code, DFPS, Department of Family and Protective Services, child-placing agency, prospective adoptive parents, adoption records, confidential information, nondisclosure agreement, child history report, health history, social history, educational history, genetic history, termination of parental rights, permanency plan, single source continuum contractor, privacy, redaction

Summary: The Committee on Human Services met with a quorum and first voted out Senate Bill 1589, relating to contract requirements between a single-source continuum contractor and DFPS. The motion to report the bill favorably to the full House with a recommendation that it do pass and be printed prevailed on a 7-0 vote. The committee then heard Senate Bill 500, which would set deadlines for providing foster care adoption records, including health, social, educational, and genetic history reports, to speed adoptions. The bill’s author and witnesses from Addie’s Hope Social Services supported it, saying delays in redacted files can take months, slow permanency for children, and increase costs to the state. Members asked about redactions and sibling/family information, and witnesses explained the bill would mainly speed the preliminary file used to decide whether to proceed with placement. SB 500 was left pending. Members also heard Senate Bill 1266, which would require regular reevaluation of the Medicaid provider support team and add written notice of provider disenrollment at least 30 days in advance. There were no witnesses, no questions, and the bill was left pending. Senate Bill 1522, concerning continuing care retirement communities, was then laid out and supported by LeadingAge Texas and counsel, who said it updates outdated definitions, clarifies licensing and disclosure rules, and strengthens consumer protections for seniors. It was also left pending. After a brief recess, the committee heard Senate Bill 1137, which would prohibit group home consultants from referring people to unlicensed or unpermitted group homes except in limited circumstances, require disclosure of complaints, and create a Class B misdemeanor for violations. Members discussed whether consultants are regulated and noted concerns about unlicensed referral practices. The bill was left pending, and the committee adjourned after completing its agenda.

Transcript Highlights:

• </c><00:13:43.920><c> and</c> out against all other assumptions and out against all other assumptions
• actuaries actuaries phase<00:13:52.079><c> in</c><00:13:52.399><c> the</c><00:13:52.639><c> investment
• What actuaries do is they take assumptions and they take experience and those things get plugged into
• Uh that be is is there an assumption?
• Uh but I can assumption about spiking.

Keywords: Meeting Start: 00:00 Attendance Roll Call: 01:02 Approval of Minutes: 02:03 Annual Investment Review: 04:10 Adjournment: 37:34, 958, all

Summary: The committee met with a quorum, approved the prior meeting minutes, welcomed new staff member Sean Parks, and announced that it would not meet in November. The next meeting was scheduled for December 8 at 10:00 a.m., with the chair noting that pension bills would be heard then and emphasizing that all pension bills must go through the full process and include actuarial analysis. Brad Gross of the Public Pension Oversight Board presented a detailed review of Kentucky retirement systems’ investments and funding. He said fiscal year 2025 ended with about $50.5 billion in pension assets and $12.52 billion in retiree health assets, both up from the prior year. He reported strong investment performance across the systems, with all Kentucky public pension funds exceeding their policy benchmarks and the median peer return of 10.4%. He also discussed long-term return trends, asset allocation differences among the systems, fee levels, and cash flow, noting that cash flow remains a key monitoring issue and that supplemental appropriations have improved the cash position of some funds, especially the Kentucky State Police and TRS systems. Gross also explained that assumed rates of return have generally fallen over time, which increases unfunded liabilities and required contributions, and said the systems’ current assumptions range from 5.25% to 7.1%. He noted that the committee’s materials included peer comparisons and historical charts, and that all asset classes were within target ranges. In response to a question from Senator Funky From, Gross was asked about pension spiking and whether supplemental general fund contributions could create a false sense of security in cash flow analysis; the question was raised but not resolved in the portion of the transcript provided.

Transcript Highlights:

• As the LCPR's actuary, we provide independent actuarial advice and another perspective to the LCPR.
• Examples of our work include actuarial audits and replications, review of actuarial assumptions, expert
• Audits and replications review Actuarial Audits and replications review Actuarial<00:41:07.280><c> assumptions
• </c><00:41:08.079><c> expert</c><00:41:08.599><c> testimony</c> Actuarial assumptions expert testimony
• Actuarial assumptions expert testimony and<00:41:09.520><c> legislative</c><00:41:10.119><c> cost</c

Keywords: 1187, senate, all

Transcript Highlights:

• We prepare our annual actuarial valuation reports. We're in the midst of doing that.
• All that is to say the actuarial team is kind of at capacity right now.
• With the actuarial study of the left one study plan. Mr.
• It could also change if assumptions change.
• It could also change if assumptions change. We review these on a two-year cycle.

Summary: The committee approved the May minutes by roll call vote and then received brief updates from the Attorney General’s office and the Office of the State Actuary. The AG’s office said it would handle legal analysis related to the committee’s work, while the actuary reported that staff were at capacity this summer due to annual valuation work, experience studies, and other retirement system projects, but would have more capacity in the fall. Members also requested access to fiscal note and actuarial materials related to the LEOFF 1 study and related legislation. The main discussion focused on the LEOFF 1 study, including actuarial funding, a proposed merger/termination/restatement approach, and the possibility of a permanent COLA for Plan 1 members. Several members supported keeping COLA recommendations in the committee’s work, while others raised concerns about whether merging or restating plans could affect benefits, legal status, or IRS tax treatment. The actuary explained that the temporary pause in certain funding rates reflected prior overfunding buffers and assumptions about future investment returns, and said future base-rate funding could still be needed depending on experience. Members also discussed constituent correspondence, which staff said largely fell into four categories: the LEOFF 1 study, Plan 1 benefits and COLAs, fossil fuel divestment, and ESSB 5357. The committee agreed that divestment concerns are more appropriately directed to the State Investment Board, not this committee. In reviewing the draft interim work plan, members added or adjusted several topics for future meetings, including a July educational briefing on LEOFF 1 history and tax/IRS issues, a September discussion of COLAs, and a December placeholder for excess compensation/pension spiking, pending coordination with the LEOFF 2 Board. The committee then approved the July agenda and adjourned.

Transcript Highlights:

• So this is just, so your current actuarial valuation.
• Your mortality assumption does have an explicit assumption, assuming future mortality improvement.
• Recommended actuarial contribution change.
• We actually refer to that as what we call a termination assumption or a retirement assumption.
• We make these assumptions.

Transcript Highlights:

• Improving mortality assumptions really became codified during this period.
• Next, we'll look at the investment return assumptions on this chart titled "Investment Return Assumptions
• They have been contributing significantly more than is actuarial.
• I should say, 'actuarially determined.'
• That's the actual term, the actuarially determined contribution.

Transcript Highlights:

• Again, for the record, Michael Harbor, actuary for OSA.
• on that long-term economic assumption.
• And then separately,... ...on that long-term economic assumption.
• Be happy to try to answer any questions you might have on our actuarial fiscal note for...
• Because, you know, the actuary, actually, in conversations with our actuary, I was told that the 15-year

Summary: The Select Committee on Pension Policy executive committee met to approve the November minutes, which were adopted by voice vote. The committee then received an update from the Attorney General’s Office on two ongoing cases, Fowler and Joel Lynn, with briefing and oral argument timelines still pending. Michael Harbour of the Office of the State Actuary provided an actuarial update focused on ESSB 5357, explaining that the bill raised the assumed investment return from 7% to 7.25%, suspended UAL contribution rates for four years, and changed amortization for past benefit improvements; members asked for clarification on how those changes would affect long-term funding and contribution rates, especially for Plan 1 systems. A substantial portion of the meeting was devoted to committee discussion of interim priorities and the need for more analysis of recent pension legislation. Members emphasized the importance of understanding the fiscal impacts of ESSB 5357 and related pension changes before the September economic experience study, and several asked staff to provide a more preliminary walkthrough of the bill’s effects. The committee also discussed the LEOFF 1 study and broader questions about overfunding, including when a plan should be considered overfunded and whether overfunding should be addressed through merger or closure proposals. One member suggested reviewing the operating budget’s excess compensation proviso during the interim as well. Staff reviewed the draft 2025 interim work plan, proposing June topics including election of officers, a presentation on SB 5357 and its actuarial implications, and an initial LEOFF 1 study kickoff based on SB 5085 and HB 2034. The committee also placed excess compensation and demographic experience study items in a parking lot for possible later scheduling. The June agenda was adopted by roll call vote, with three ayes and three members absent or excused, and the meeting adjourned after no further business.

Transcript Highlights:

• Next item is the LCPR 25M1 approving changes to the actuary assumptions for MSRS.
• The use of the assumptions allows the actuaries to calculate assets and liabilities into the future,
• The pension plans board then approves the assumption changes recommended by the plan actuary.
• </c><00:02:31.440><c> to</c> assumptions allows the actuaries to assumptions allows the actuaries to
• Uh, discussion to the motion or the actuarial assumption changes.

Keywords: 1187, senate, all

Transcript Highlights:

• </c><00:17:27.480><c> advice</c> following Actuarial advice following Actuarial advice they<00:17:29.200
• c><01:41:46.360><c> shopping</c><01:41:46.760><c> I</c> actuary so if I go actuary shopping I actuary
• American Society of Actuaries, as our actuary is, so we really would have to take it back to our actuaries
• American Society of Actuaries, as our actuary is.
• actuary to perform degree the actuary actuary to perform that<02:02:33.400><c> audit</c><02:02:33.840

Keywords: 1191, senate, all

Transcript Highlights:

• So it's a change of assumption.
• And there is a—it's all assumptions-based.
• So whatever the actuarial rate is—which I forget what the actuarial rate is, 29%, something probably
• I think the actuarial rate is fine so long as we have reasonable assumptions that are honest, and we're
• So were there similar assumptions made that resulted in a change in our ongoing cost assumptions?”

Keywords: 959, house, all

Transcript Highlights:

• </c> monetary policy assumptions. monetary policy assumptions.
• <00:20:47.440><c> about</c><00:20:47.840><c> future</c><00:20:48.240><c> bonding</c> assumption about
• future bonding assumption about future bonding authorizations.<00:20:49.919><c> In</c><00:20:50.080>
• about future bonding bills assumption about future bonding bills and<00:20:56.080><c> this</c><00:20
• </c><00:35:45.359><c> to</c> when DHS is working with actuaries to when DHS is working with actuaries

Keywords: 919, house, all

Summary: Minnesota Management and Budget Commissioner Aaron Campbell, State Economist Dr. Tony Becker, and State Budget Director Anna Mingi presented the November 2025 budget and economic forecast. Campbell said the state now projects a nearly $2.5 billion surplus at the end of the 2026-27 biennium, about $575 million better than the end-of-session estimate, but also a projected negative balance of about $2.9 billion in FY 2028-29, reflecting a worsening structural imbalance. He said the budget reserve stands at $3.4 billion, with cash flow and budget reserves totaling $3.8 billion after a $244 million addition, and emphasized that Minnesota’s AAA bond rating and reserve policy remain strengths even as future sessions will need to address the long-term gap. Becker said the national economic outlook has changed only modestly since February, but growth remains below trend through the forecast horizon. He cited slower consumer spending, weak private investment, continued tariff uncertainty, lower projected immigration, and modest inflation that stays near 3% through 2026 before easing. Revenue forecasts for the next biennium were revised up to $66.3 billion, driven mainly by higher individual income tax receipts and other revenue, partly offset by lower sales and corporate tax forecasts. He also noted risks from federal policy changes, the recent shutdown’s effect on data availability, and possible equity market volatility. Mingi said general fund spending is projected to rise sharply, with current biennium spending up $3.4 billion from end-of-session estimates and planning-year spending up $1.9 billion. She attributed much of the increase to carryforward from prior one-time appropriations, discretionary inflation, and especially Medical Assistance. MA costs are projected to be about $2.5 billion higher over 2025-29, largely because managed care rates rose more than expected due to higher utilization and higher-cost services, including pharmacy costs, while long-term care and disability waiver costs also increased. In response to questions, officials said the federal reconciliation bill had only a relatively small effect on the health care changes, and that the carryforward amounts reflect unspent prior appropriations that now show up in later years rather than new spending.

Transcript Highlights:

• And the prior assumptions hadn't included any assumptions about part of the policy, which was that if
• And the prior assumptions hadn't included any assumptions about part of the policy, which was that if
• Every two years, we commission an actuarial study.
• Aaron Gutierrez with the Office of the State Actuary. Thank you.
• It wouldn't be an actuarial slide if I didn't have a disclaimer.

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• Um, I'm hearing what you're saying, and based on the assumptions of the actuaries, they took the risk
• the assumptions of the actuaries,<00:42:55.599><c> they</c><00:42:55.839><c> took</c><00:42:56.079><
• Sullivan clearly explained, their actuaries had flawed assumptions that put their multi-billion dollar
• Sullivan clearly explained, their actuaries had flawed assumptions that put their multi-billion dollar
• flawed assumptions that actuaries had flawed assumptions that put<01:25:06.239><c> their</c><01:25:06.480

Keywords: 1191, senate, all