Transcript Highlights:

• have access to some of those trades through the billions of dollars that are happening throughout our bonds

Committee: Senate Rules

Keywords: 987, senate, all

Transcript Highlights:

• We passed a bond. So we have 18. We were capped at 18 on TTK. Okay, thank you.

Summary: The committee met to hear an overview of Washington’s alternative learning experience (ALE) programs and then an update on artificial intelligence in schools. OSPI’s Anissa Sherritt explained that ALE is a course-level funding designation for instruction that occurs partly or wholly away from the traditional seat-time model, with online, site-based, and remote course types. She emphasized that ALE is still basic education, subject to the same public school requirements, and that OSPI provides technical assistance, annual reporting review, and program reviews. Representatives from several programs described different models: Washington Virtual Academy (a large online ALE operated through Omak School District and partnered with for-profit Stride), Columbia Virtual Academy in Valley School District (a district-run, nonprofit online/remote program), Pearl in Quilcene (a K-8 remote parent partnership program), and River Home Link in Battleground (a site-based hybrid program). They discussed student supports, special education, enrichment, family choice, transportation, and how they measure outcomes. Members asked for follow-up information on funding, demographics, racial and ethnic data, multilingual learners, and post-graduation outcomes, and OSPI agreed to provide additional data where available. The committee then heard from OSPI and several districts about AI guidance and implementation. OSPI’s Holly Ryan Calloway described the agency’s human-centered AI framework, three guidance documents for schools, statewide professional learning, an AI innovation summit, and new AI literacy and informatics course frameworks and CIP codes. Quincy School District described a multi-year effort to integrate AI by centering student needs, creating district policy and classroom guidance, and training teachers to use AI responsibly while building an AI readiness plan from elementary through high school. Peninsula School District described its AI action research team, teacher professional learning, and classroom uses of generative AI to support science instruction, communication, and prompt engineering, while stressing that AI should enhance rather than replace learning. Members raised questions about privacy, energy and water use, prompt engineering, workforce and university connections, and the need for clear standards and ongoing educator training. No votes were taken.

Transcript Highlights:

• General obligation bonds. How's that going? To the best of my knowledge, it's been going well.

Keywords: 958, all

Summary: The committee first approved the February minutes and noted there had been no March meeting. Staff then provided a series of information items, including quarterly capital project status reports from state agencies and postsecondary institutions, a University of Kentucky equipment purchase report, notice that the committee took no action on certain March transactions, school district debt notices for Fayette and Jessamine counties, lease-space advertisements due to building conditions, a Kentucky Asset/Liability Commission report, and asset preservation project reports from KCTCS and Eastern Kentucky University. The committee then heard and unanimously approved Murray State University’s request for interim authorization to use institutional revenues for a $1.5 million roof replacement at the Curs Center student center. University of Kentucky also received unanimous approval for a $115 million public-private partnership project to expand Parking Structure 7 and the Johnson Center recreation space; testimony emphasized the loss of parking from hospital expansion, increased student enrollment, a planned $21 per semester recreation fee increase, and the goal of improving student retention and campus capacity. Next, the committee received a report on a Kentucky State Police Post 11 renovation in London funded at $1.138 million, with members asking how long the repairs would extend the building’s useful life; KSP said the work was a long-term investment and replacement was still many years away. The committee also approved multiple real property lease actions, including a new CHFS lease in Scott County, several lease renewals for the Commonwealth’s Attorney, CHFS, Transportation Cabinet, and a Secretary of State relocation lease tied to a capital renovation project. Members questioned one Jefferson County lease rate and the witness said it had been in place since 2007. Finally, the Kentucky Infrastructure Authority presented three water loan items, which were rolled and then approved: an $841,383 East Clark County Water District loan for waterline upgrades, a roughly $6.13 million Oldham County Water District loan for US 42 improvements, and a $619,180 increase for Canonsburg Water District’s Schopes Road project due to higher-than-expected bids. The committee then approved eight K-12 school facility issuances, including projects in Clinton, Franklin, Fulton, Lincoln, McLean, Paris, Somerset, and Spencer counties, covering early childhood, new school construction, HVAC, energy conservation, and renovations. The meeting ended with notice of the next meeting date and adjournment.

Transcript Highlights:

• We're going to limit testimony to a very hard two minutes.
• eight-hour limit.
• But I am going to try to limit them given the hour.
• Because it violates the limit. test. Well, we no longer have the lemon test in place.
• All right, we do have a two minute maximum time limit.

Bills: HB4 , HB54 , SB 10 , SB 24 , HB4 , HB54 , HB775 , HB850 , HB 1122 , HB 1249 , HB1405 , HB2336 , HB2757 , HB3372 , HB3622 , HB4442 , HB4687 , HB4893 , HB5089 , HB5515 , HB5606 , SB10 , SB24 , HB1573 , HB3369

Committee: House Public Education

Keywords: district composition, congressional election, Texas, legislature, voting districts, citizenship, U.S. citizen, non-citizen, public office, advisory board, task force, state government, local government, political subdivision, commission board, appointment eligibility, officeholder qualifications, public service, naturalization, Texas Government Code

Transcript Highlights:

• Suspensions are explicitly time-limited.
• Suspensions are explicitly time-limited.
• I support HB 1806 because it creates a limited and careful process for the Department of Education to
• it creates a limited and careful process<00:41:34.079><c> for</c><00:41:34.319><c> the</c><00:41:34.560
• And there could be a thousand scholarship organizations. ...it doesn't limit us to what we could call

Committee: House Education Policy and Administration

Keywords: 1189, house, all

Transcript Highlights:

• powers of an economic development authority under existing state law, except the power to tax, issue bonds
• law, uh, except the power to<01:58:01.920><c> tax,</c><01:58:02.320><c> issue</c><01:58:02.719><c> bonds
• > the</c><01:58:03.520><c> powers</c><01:58:03.760><c> of</c><01:58:03.840><c> a</c> to tax, issue bonds
• , and the powers of a to tax, issue bonds, and the powers of a housing<01:58:04.320><c> or</c><01:58:

Committee: Senate State and Local Government

Keywords: 1187, senate, all

Transcript Highlights:

• With the current statues, we’re really limited in our ability to enforce consequences and to help all
• 03:32.000><c> statues,</c><00:03:32.560><c> we're</c><00:03:32.879><c> really</c><00:03:33.200><c> limited
• </c><00:03:33.599><c> in</c> current statues, we're really limited in current statues, we're really limited
• So the commissioner must approve, must include that this new data on the school fights in the aggregated

Committee: Senate Education Policy

Keywords: 1187, senate, all

Transcript Highlights:

• you know, I guess what I'm trying to say is that it it does seem I've been involved with trying to limit
• You may also hear that it limits the options for the general consumer.
• You may also hear that it limits the options for the general consumer.
• You may also hear that it limits<01:15:11.520><c> the</c><01:15:11.920><c> options</c><01:15:12.320><
• c> for</c><01:15:12.719><c> the</c><01:15:12.960><c> general</c> limits the options for the general limits

Committee: Senate Energy and Natural Resources

Keywords: 1191, senate, all

Transcript Highlights:

• Which counties and cities can issue those industrial revenue bonds?
• So, it really takes it out of just their limited area.
• And then my last question is, so will this be limited as far as how much one entity or one area could
• take, you know, say geographically limited?
• how much an individual project limited how much an individual project could<01:29:56.159><c> get.

Keywords: Meeting Start 00:00:07 Roll Call 00:00:14 Discussion of Pro-Growth Housing Policies 00:02:01 Discussion of Historic Rehabilitation Tax Credit 01:11:13 Adjournment 01:40:27, 958, all

Summary: The Kentucky Housing Task Force met and heard first from the Kentucky Chamber of Commerce, which presented findings from a housing study done with the Home Builders Association. The chamber said housing is now a major economic-development issue, citing survey results that 90% of community leaders said their region could not absorb a major job announcement and 66% said housing is holding back Kentucky’s economy. The chamber described Kentucky’s housing shortage, rising home prices, declining permits since 2008, and the need for more production to support growth. It urged policy changes including zoning and land-use reform, tax incentives, regional approaches, and especially a residential infrastructure fund modeled on Indiana’s low-interest loan program to help communities finance roads and other infrastructure needed for new housing. Members asked about the severity of the problem, workforce shortages in permitting and construction, the loan interest rate, repayment, and whether Kentucky could replicate Indiana’s results; the witness said the issue is a crisis and that the program would be a revolving public-private partnership, likely around 3% interest, with implementation details still to be worked out. The Kentucky Bankers Association then testified that the housing gap is especially acute for households at 80% of area median income and below, which it said represents about 70% of Kentucky’s housing need. It emphasized that the shortage affects both urban and rural counties and pointed to examples such as Rowan County, where workers at major employers must commute long distances because local housing is unavailable or unaffordable. The bankers said high interest rates remain a major barrier and proposed a $20 million bank commitment for a revolving fund tied to tax credits to finance new housing, not refinances. They cited Hope of the Midwest as an example of a successful tax-credit housing model with a long track record and no defaults, and said the proposal would leverage public-private partnerships to create new units. Committee members questioned how the proposed fund would compare with industrial revenue bonds and whether it could be structured like Kentucky’s tobacco settlement fund, with seed money, a review board, scoring criteria, and possible population thresholds to ensure smaller communities benefit. The bankers said the proposal would be another tool for cities and counties, specifically tied to residential infrastructure, and that larger cities should not be able to capture all of the resources. No formal votes or actions were taken during this portion of the meeting.

Transcript Highlights:

• I grew up during a major rise in technology, from having limited access as a child to a world in which
• ,</c><01:24:23.280><c> but</c><01:24:23.440><c> I</c><01:24:23.520><c> do</c> significantly limited,
• But it is also very limiting to only have them.
• But it is also very limiting<01:31:05.960><c> to</c><01:31:06.120><c> only</c><01:31:06.440><c> have<
• </c> limiting to only have them. limiting to only have them.

Bills: HF4213 , HF4198 , HF3930 , HF3585 , HF3451

Committee: House Education Finance

Keywords: education finance, school funding, K-12, prekindergarten, pre-K, early childhood education, general education aid, special education, literacy aid, school meals, free school meals, school breakfast, school lunch, charter school lease aid, charter schools, nonpublic pupil aid, private school aid, transportation aid, desegregation aid, integration aid

Transcript Highlights:

• We build a lot of bonds with these people in the outdoors, and they confide in us when they're having
• therapy with individuals that are, I believe, in the fire departments currently, but that's all very limited

Committee: House Public Safety Finance and Policy

Keywords: 1183, house

Transcript Highlights:

• It holds money and bonds and lands and other property.
• It was hard to see just from the limited Form 9 that we had.
• It was hard to see just from the limited Form 9 that we have.
• Were there some family income limitations and things like that?”
• There’s still limitations. There’s still income limitations. There are other limitations.

Summary: The House convened with prayer and the Pledge of Allegiance, approved the previous day’s journal by a 126-0 vote, and suspended business for the Speaker to sign several bills and substitutes. Members then spent much of the day introducing guests, including county assessors, students, civic groups, and visitors from local schools and universities. The chamber then took up House Bill 2002, the elementary and secondary education budget. Members adopted several amendments, including technical fixes to allow board-operated schools to use personal service funds for career ladder payments, clarifications to child care subsidy language, and changes to Parents as Teachers rules so that enrollment remains voluntary and virtual visits are not reimbursable. An amendment to shift $1 million from one child care facilities line to Child Care Works passed, as did an amendment to fund a new Success-Ready Student Assessment with $2 million to help replace the MAP test. A proposal to pay child care subsidies for foster children based on enrollment rather than attendance failed 53-93, and an amendment to divert $10 million in Title I funds into a competitive grant program also failed. A later amendment to send budget reports to the ranking minority member passed, while an attempt to remove child care subsidy language from the bill failed. The House then moved to higher education and workforce development appropriations. Members approved an amendment broadening a pre-apprenticeship program statewide and supported funding for Coyote Hill Foster Care Ministries through a transfer from dual credit scholarship funds. The most extensive debate centered on House Bill 2003’s higher education funding model, where the chair defended an FTE-based approach as more transparent than the long-standing status quo, while opponents warned it would sharply cut funding for institutions such as Harris-Stowe, Lincoln, Truman State, and some community colleges, and would ignore factors like graduation rates, research, and workforce needs. A compromise amendment to soften the transition was withdrawn, and a separate amendment to restore the governor’s recommendation was also debated at length, with members arguing over the fairness and consequences of the proposed model.

Transcript Highlights:

• In this limited situation, it's creating some challenges.
• Please limit it to name, organization, and position only.
• There's no term limits, sir.
• We now have limited that to 500, 600 youth at any one time.
• We now have limited that to 500, 600 youth at any one time.

Summary: The committee heard several public safety measures, with extensive testimony on firearms regulation, disability and sexual assault, mental health diversion, emergency response, and law enforcement masking. SB 704 by Senator Arreguín would require firearm barrels to be purchased through licensed dealers with a background check, as a response to the rise in ghost guns and 3D-printed firearms; supporters said barrels are a key component of untraceable guns, while opponents argued the bill burdens lawful gun owners and does little to stop criminals. SB 258 by Senator Wahab would eliminate the remaining spousal rape exception for victims unable to consent because of disability; supporters called it a needed closure of an archaic loophole, while disability-rights advocates opposed it unless amended, warning it could worsen misunderstandings about capacity to consent and harm disabled people’s autonomy. After debate, SB 258 passed the committee on a due-pass motion to Appropriations, with several members voting aye and the bill held on call. Senator Umberg presented SB 398, which closes a loophole in the law prohibiting paying or offering money or other value to induce someone to vote or register to vote; there was little opposition, and the bill passed on a due-pass motion to Appropriations and was held on call. He also presented SB 27, a CARE Court cleanup measure that would allow certain misdemeanor defendants found incompetent to stand trial to be routed into CARE Court and would expand eligibility to some people with mood disorders with psychotic features. Supporters said it would improve access to treatment and reduce unnecessary incarceration, while county behavioral health directors and disability advocates warned it could blur the line between voluntary civil treatment and coercive criminal proceedings and expand CARE Court beyond its intended scope. SB 27 passed on a due-pass motion as amended to Appropriations. The committee also heard SB 36 from Senator Umberg, a price-gouging measure tied to wildfire-related emergency conditions that also expands search-warrant authority for certain misdemeanor investigations. Public defenders opposed the search-warrant expansion as unnecessary, while a late supporter from the Los Angeles County District Attorney’s Office spoke in favor; the bill was moved on a due-pass motion as amended to Appropriations and held on call. SB 571 by Senator Arreguín would increase penalties for impersonating emergency personnel and related conduct during disasters; supporters cited post-fire looting and impersonation, while opponents argued longer sentences do not deter crime and that existing law is sufficient. The bill passed on a due-pass motion as amended to Appropriations and was held on call. Finally, Senator Wiener presented SB 627, which would prohibit law enforcement from wearing extreme masks except in limited circumstances, aimed largely at masked federal immigration enforcement operations. Supporters said masked, unidentified officers create fear and undermine trust, while law enforcement groups argued the bill wrongly sweeps in local officers, is too broad, and should instead target federal agents or impersonators. Testimony was still underway when the transcript ended, and no final committee action on SB 627 is shown here.

Transcript Highlights:

• </c><00:55:12.640><c> the</c> removing the one-year limitation the removing the one-year limitation the
• No, we'll just limit it to I don't Okay.
• Truly, the impacts are limited to 200.
• Limit it to permit renewals as is suggested in that testimony.
• Limit it to permit renewals as is suggested in that testimony.

Keywords: 910, house, all

Summary: The joint hearing covered three measures. SB 1602 would appropriate funds to DLNR for monitoring wells for the Koho aquifer system; DLNR and HHFDC supported it, and written testimony from several organizations and individuals was also in support. Members asked whether monitoring wells are a statewide function rather than a county function, and staff confirmed they are done statewide. The second bill was an administration measure clarifying that criminal water pollution enforcement remains with the Department of Health rather than DLNR. The Attorney General’s office said it was a cleanup clarification and that DOH has stronger enforcement powers and better testing capability; DOH and DLNR supported it, and there was no opposition noted. The final and most heavily debated measure was SB 1074 on environmental impact statements. The bill would let previously authorized or permitted commercial activities continue for up to one year while an agency determines whether environmental review applies after a challenge, and would allow permit renewals during that review. DLNR said it stood on written comments and suggested aligning the bill with similar House language. Supporters, including several ocean tourism and Maui business representatives, argued the bill would provide certainty and keep families and small operators working while environmental review is completed, especially in the wake of the Lahaina fires and ongoing business losses. Some supporters said the measure should be narrowed with a sunset or limited to recently renewed permits. Opponents, including the Office of Planning and Sustainable Development, Earthjustice, the Sierra Club, and other environmental advocates, argued the bill was overly broad and could weaken HEPA/NEPA-style environmental review, especially for fisheries and other commercial activities. They said the bill could be used as a “Trojan horse” to avoid review and that DLNR could resolve the underlying disputes more quickly through settlement or existing exemption processes. No votes were taken during the hearing.

Transcript Highlights:

• I'm just concerned that we're limiting in some capacity by not talking about local districts rather than
• I'm just concerned that we're limiting in some capacity by not talking about local districts rather than
• <04:04:03.880><c> to</c><04:04:04.040><c> any</c> limited to any limited to any particular<04:04:06.199
• </c> people testifying um I'd like to limit people testifying um I'd like to limit the<04:38:04.600><
• Too many Granite Staters have hit their limit where property taxes are concerned.

Keywords: 928, house, all

Summary: The committee opened with House Bill 184, which would create a committee to study changing school start times. Members discussed Amendment 0394, which made the study committee’s duties more investigative and adjusted reporting recipients, including the Governor. Several members raised questions about whether the committee should review evidence-based studies, local district decisions, and existing district reports; supporters said the amendment would better allow the committee to gather information and recognize local control. The amendment passed 17-0, and the bill as amended also passed 17-0. Representative Litchfield noted that no one had testified in opposition and encouraged the future study committee to review an Oyster River School District report on school start times. The committee then took up House Bill 394, concerning cooperative school district budget committees and board member representatives. Amendment 0476 was adopted 17-0 after discussion that it clarified the bill’s language and reflected work with the School Boards Association. The committee then voted OTPA on the bill, which also passed 17-0. House Bill 738, requiring background checks for employees and volunteers at certain non-public schools or education service providers receiving public funds, was moved inexpedient to legislate. Supporters said the bill would create practical and legal problems for private citizens and homeschooling families, and the motion passed 15-2 with no minority report, placing the bill on consent. The committee next considered House Bill 235, which would amend the educator code of ethics and conduct to add responsibilities to parents. Supporters argued parents should be explicitly included in the code, while opponents said parents were already covered in existing ethics language and statute. The bill passed narrowly, 9-8. The committee then returned to House Bill 532 on alternate dispute resolution and individualized education plan team meeting facilitation. Amendment 0480H clarified that different rules would apply separately to neutral conference, mediation, and IEP facilitation; it passed 17-0, and the bill as amended also passed 17-0. Finally, the committee moved to House Bill 564, concerning adoption of school administrative unit budgets, and voted to retain the bill for further review because members said there was still confusion about how it would apply to single-district and multi-district SAUs.

Transcript Highlights:

• profitability, because you know very well that we have kind of regulated them into a corner where it's very limited
• > then</c><00:46:38.480><c> for</c><00:46:38.960><c> transportation,</c> >> I'm talking about an aggregate

Keywords: 958, all

Summary: The committee first approved the minutes from its September 24 meeting after a motion and second. It then heard a presentation from New Mexico Early Childhood Education and Care Secretary Elizabeth Gragensky on that state’s early childhood system and planned universal child care rollout. She described how New Mexico consolidated multiple prenatal-to-age-five programs into a cabinet-level department, expanded pre-K to a longer day, and uses a cost model to set reimbursement rates intended to cover true provider costs, including wages, benefits, occupancy, food, and reserves. She also said the state created an Early Childhood Trust Fund and secured a constitutional amendment to dedicate 0.60% of the land grant permanent fund to early care and education, with the department’s budget growing from about $400 million in 2021 to just under $1 billion this year. Gragensky said families can begin applying for universal child care on November 1, with participation voluntary for both families and providers. She reported that New Mexico is aiming to expand capacity by adding 1,000 registered home providers, 120 group homes, and about 55 more centers, supported in part by a $13 million low-interest loan fund and a request for an additional $20 million. She said the state has seen growth in early childhood professionals, including a 64% increase over the last three to four years, and pointed to reported outcomes such as a 21% increase in literacy and a 75% kindergarten readiness rate, while noting that some measures are new and baseline comparisons are still being developed. Members asked about the funding sources, provider profitability, workforce development, and measurable outcomes. Gragensky said the program is designed to support provider sustainability through rates tied to true cost and includes allowances for sick leave, vacation, benefits, and reserves. She also said maternal labor force participation is 10% higher than the national rate and attributed that in part to child care access. The committee then moved to a separate presentation by Department for Community Based Services Commissioner Lisa Dennis and Division of Family Support Director Roger McCann on anticipated cuts to TANF and SNAP, beginning with an overview of TANF as a federal block grant with a fixed annual Kentucky allocation of about $180.7 million.

Transcript Highlights:

• I was up in Red Lake two weeks ago to visit your nursing home and to discuss a bonding project that I
• The bill's funding would be used to provide direct grants to farmers experiencing limited land access
• </c><00:45:59.640><c> land</c> to farmers experiencing limited land to farmers experiencing limited land
• Food shelves have limits to how and when they can distribute food.
• Um food shelves have limits to question.

Committee: Senate Agriculture, Veterans, Broadband, and Rural Development

Keywords: 1187, senate, all

Transcript Highlights:

• So, um, I work for the Indiana Finance Authority, which is the bond issuer on behalf of the state of
• </c><00:56:14.079><c> So,</c> spend a limited pool of money. So, spend a limited pool of money.
• And just to add on to that, when... their limited income and as their limited income and as representative
• &gt;&gt; So<01:16:28.159><c> we</c><01:16:28.320><c> got</c><01:16:28.480><c> limited</c><01:16:28.800
• </c><01:16:29.440><c> the</c> &gt;&gt; So we got limited infrastructure. the &gt;&gt; So we got limited

Keywords: Meeting Start 00:00:03 Roll Call 00:00:08 Discussion of Indiana Residential Infrastructure Fund 00:01:27 Discussion of Affordable Housing Trust Fund 00:33:30 Discussion of Urban Infill 01:12:37 Approval of Minutes from July Meeting 01:39:00 Adjournment 01:39:42, 958, all

Summary: The Housing Task Force heard a presentation from Anita Sanford of the Homebuilders Association of Kentucky and Sheri Cybert of Indiana’s Residential Infrastructure Fund about Indiana’s low-interest loan program for local housing infrastructure. They described the program as a voluntary, locally driven model that helps communities finance roads, sewers, sidewalks, traffic lights, turning lanes, and other infrastructure needed for new housing development. Sanford emphasized that infrastructure and regulation are major drivers of housing costs, citing estimates that infrastructure can account for up to 30% of a home’s cost and regulations another 25%, and said the association is studying Kentucky-specific regulatory costs. She also noted that every $1,000 added to new home construction can price out about 2,000 Kentucky households. Cybert explained that Indiana’s program, administered through the Indiana Finance Authority, began in 2023 with $75 million appropriated over two years and has since closed 17 loans totaling $60.7 million, with more than 2,700 projected housing units. The program reserves 70% of funds for rural communities and 30% for urban communities, requires applications from local governments rather than developers, and asks communities to show need through a market study, describe the infrastructure and housing to be built, and provide preliminary engineering plans and a repayment source. She said the loans currently carry an interest rate around 3.5%, reset quarterly, and that the program has generated about $25 million in savings to communities compared with private borrowing. She also described recent Indiana legislative changes that encourage higher density and other zoning reforms, and said a majority of those local ordinance changes must be adopted for an application to be fundable. Members asked about the ordinance requirements, the funding split between rural and urban areas, repayment mechanisms, and whether there were caps on project size. Cybert said repayment is worked out case by case, often through existing or project-specific TIFs, temporary tax agreements, or letters of credit, and that the program has no cap on request size or income/affordability restrictions. She said the largest request funded was $19 million for a 700-unit project. Co-chair Mills and others discussed whether Kentucky could adopt a similar model and what it would cost, while Sanford and Cybert said they were still refining budget estimates. Later, Scott Welch, president of the Homebuilders Association of Kentucky, testified that upfront infrastructure costs are a major barrier in his projects, citing a $1 million pump station and road-widening and utility relocation costs as examples, and said an infrastructure fund would help get projects off the ground.

Transcript Highlights:

• Our AA+ bond rating enables us to borrow money to repair our roads, build and renovate schools, and so

Committee: Joint Joint Committee on Ways and Means

Keywords: 995, all

Summary: The Senate and House Ways and Means chairs opened the FY 2027 consensus revenue hearing by emphasizing the need for a balanced, fiscally responsible budget amid federal funding cuts, health care cost pressures, and uncertainty around the federal tax law changes referred to as OB3. They also noted the state’s current revenue performance is slightly above benchmark and paid tribute to the late Representative Anne Margaret Ferranti. Secretary of Administration and Finance Matthew Gorkowitz echoed the call for caution, saying Massachusetts has protected core services while building reserves and that the FY27 budget process begins with a careful revenue estimate. Department of Revenue Commissioner Jeff Snyder, along with DOR staff, presented FY26 and FY27 tax forecasts and identified major drivers and risks: OB3’s negative impact on state revenue, surtax collections, labor market conditions, capital gains, and corporate/business excise taxes. DOR estimated OB3 would reduce FY26 revenue by about $664 million and FY27 by about $282 million, while surtax and capital gains were expected to remain strong in FY26 but soften in FY27. Members questioned the outlook for surtax, capital gains, and the potential fiscal effect of a ballot question reducing the income tax rate from 5% to 4%; DOR said that proposal could cost roughly $4.2 billion to $4.8 billion annually, with a smaller but still significant impact in FY27 because of phase-in timing. Treasurer Deb Goldberg testified next on the stabilization fund, lottery, PRIM, unclaimed property, and the Alcoholic Beverages Control Commission. She reported the rainy day fund at about $8.1 billion, said the lottery was on track for $1.5 billion in FY26 net profit and projected $1.25 billion in FY27, and highlighted that iLottery is expected to launch in summer 2026 with revenue beginning in FY27 and dedicated to child care initiatives. She also described strong PRIM performance and record unclaimed property returns, while members asked about the child care use of iLottery revenue, multilingual outreach, and the economic impact of expanded liquor licensing. Mass Taxpayers Foundation President Doug Howgate and Tufts’ Evan Horowitz then offered differing revenue outlooks and policy warnings. Howgate projected modest growth, cautioned against overusing reserves for ongoing obligations, and urged caution on federal tax conformity changes and health care spending pressures. Horowitz projected higher FY26 and FY27 revenues than other witnesses, warned that the surtax and capital gains make the tax system more volatile, and said a 4% income tax ballot question could reduce FY27 revenues by roughly $800 million to $1 billion. He also flagged the rent control ballot question as a potential risk to municipal finance and suggested the state consider giving a permanent home to the independent revenue model used by Alan Clayton-Matthews.

Transcript Highlights:

• . >> Whereas fishing recreational fishing bonds family and community members, offers physical and mental

Keywords: 926, house, all