Transcript Highlights:

• As an agency, we are really limited to be able to operate programs within the sustainable funding that
• It's staffed by our agency.
• The work that the agency has done, that Beth Crutchins and her team has done, the work that the agency
• The new operating rooms will be operative when? In the first quarter of calendar year 2028.
• And so my lane is to tell you where the agency is, tell you what the agency requirements are for the

Summary: The subcommittee heard budget presentations and questions from several health and human services agencies, with members repeatedly emphasizing that agency numbers had been posted since October and that questioning should stay focused and brief. The Office of Juvenile Affairs said its $5.45 million request would support 162 employees receiving a pay adjustment, and members asked about juvenile care conditions and staffing. The Department of Human Services discussed major changes to child care subsidy funding, including a reduced subsidy request, a $11.5 million child care teacher recruitment/retention request, and planned eligibility and reimbursement changes; it also reviewed SNAP administrative cost shifts under federal law, the state’s SNAP error rate, and the risk of large future state costs if the error rate is not reduced. DHS also addressed TANF reserves, the DDS waiver wait list, the Greer Center buildout, the Advantage waiver supplemental, and meal service options for waiver members. OCCY described a largely personnel-driven budget, requests for more oversight staff, and workload pressures in juvenile competency evaluations. The Office of Disability Concerns reported a flat budget and said it relies mainly on mediation and informal resolution rather than enforcement. OSU Medical Authority said its Tulsa expansion, VA skybridge, and c-section suites remain on schedule, that psychiatric residency funding is being phased in over several years, and that it is working to reduce contract labor and evaluate service lines. J.D. McCarty Center reported its new ABA outpatient clinic is on time and on budget and is nearing full capacity. OMMA said its lab is following required standards, its FTE count is below budgeted levels because hiring depends on lab accreditation and other unknowns, and dispensary numbers continue to decline as the market matures. Oklahoma Rehabilitation Services said it needs about $1.4 million to avoid a maintenance-of-effort penalty and discussed aging campus capital needs and staffing vacancies. The Oklahoma Health Care Authority then outlined a very large budget requirement driven by utilization growth and the shift to value-based care, saying FY26 is currently stable but FY27 would likely require additional appropriations if the request is not fully funded.

Transcript Highlights:

• executive branch agencies.
• various agency information technology-focused staff in one state agency.
• This year, the agency...
• The agency also requested, in enhancement number eight, $278,700 ongoing for operating expenditures.
• This cash reconciliation shall occur for each fund and agency, including the control agency.

Summary: The committee met to review the general fund update and several budget-setting items, with staff explaining how to track the latest “green sheet” online and how JFAC actions were affecting the FY 2026 and FY 2027 bottom lines. Members also discussed whether work group progress should be summarized more broadly, but leadership emphasized that work groups were intended to remain independent and that members should consult analysts directly rather than have a running public summary of each group’s internal deliberations. The committee then acted on a series of agency budgets. It approved the Idaho State Tax Commission enhancement package after revising it to remove the chief operating officer personnel item and adopted language limiting use of $550,000 for fast tax collection vendor payments, with any unused amount reverting to the general fund. It also approved supplemental and enhancement requests for the Office of Information Technology Services, including Chinden campus furnishings, E-Core grant staffing and funding, enterprise security/firewall upgrades, the IT modernization transfer of 58 positions from Health and Welfare, and a one-time cash transfer language item to cover transition-year health insurance costs. The Military Division’s request for $120,000 for Office of Emergency Management indirect cost recovery was approved, but an alternate motion to also add $190,800 for the state education assistance program failed, and the original motion was later held in committee. The Industrial Commission and Public Utilities Commission budgets were both advanced with dedicated-fund increases for IRIS maintenance, training, disability fund needs, OITS hardware, and replacement laptops. The Department of Fish and Game budget was also advanced, with approval of a large package of dedicated and federal funds for fishery habitat projects, Good Neighbor Authority work, hatchery and laboratory inflation, temporary employees, wolf depredation response, communications, and replacement items, along with reappropriation authority for prior-year funds. The committee then took up the Department of Health and Welfare Division of Public Health Services, where competing motions focused on the Idaho Home Visiting Program, immunization assessment fund restoration, laboratory testing, HIV and hepatitis prevention, suicide prevention, and moving the home visiting program to Early Learning and Development. Both the substitute motion and the original motion failed after split votes in the House and Senate committees, leaving that budget held for later action. Finally, the committee considered new language for the State Controller and State Treasurer to require monthly reconciliation of cash balances between Luma and TARS from July 1, 2023 through June 30, 2026, with a report due by the fall interim JFAC meeting and documentation retained for audit. Members discussed the need for accurate cash reconciliation and the resources available to the Controller’s office, but no final action was taken before adjournment. The chair announced upcoming budget-setting meetings and reminded members to complete work group motions by the end of the day.

Transcript Highlights:

• Regarding that, you said separate agency, but this is not a separate agency under this bill.
• One would be a separate agency.
• We've stuck some agencies in some universities.
• Personally, I think [they] should be pulled out and operated as independent agencies.
• I think it is a separate agency. It reports to the governor. It's kind of a separate agency.

Bills: HB146 , HB150 , HB1500 , HB1545 , HB1562 , HB2067 , HB2520 , HB2818 , HB3214 , HB3250 , HB3466 , HB3512 , HB3623 , HB4063 , HB4395 , HB4464 , HB4668 , HB4690 , HB5331 , HB3833 , HB146 , HB150

Committee: Senate Business & Commerce

Summary: The committee took up several pending business items and reported a series of House bills out of committee, including HB 2467, HB 2468, HB 2518, HB 4310, HB 4386, HB 4490, HB 5323, and HB 149. Most of these were advanced on committee substitute motions and sent to the local and uncontested calendar or reported favorably to the full Senate. HB 2467 drew one nay vote, while the others were approved without opposition. HB 4310 and HB 4386 were described as committee-substitute versions with changes narrowing disclosure requirements and preserving attorney-client privilege in certain circumstances. A major portion of the meeting focused on HB 149, an AI governance bill. The substitute was explained as addressing biometric identifier capture and storage, exempting certain AI uses for security and fraud prevention, clarifying definitions, restricting AI systems that simulate explicit child sexual content, adjusting Attorney General investigative authority, refining sandbox program waivers, reducing Texas AI Council powers and membership, and adding DIR coordination provisions. The committee adopted the substitute and reported the bill favorably. The committee then heard extensive testimony on HB 1500, the DIR sunset bill. The author said the bill would continue DIR for 12 years, restructure its board, update advisory committees, require regular cybersecurity assessments and penetration testing for state agencies, improve IT procurement training, and transfer the e-grants program to the Comptroller. A Texas 2036 witness supported the bill as a way to strengthen governance, procurement, and cybersecurity. Members asked detailed questions about the bill’s structure and then left HB 1500 pending. The committee also heard a lengthy presentation on HB 150, which would create the Texas Cyber Command as a component of the University of Texas System, administratively attached to UTSA and located in San Antonio. The author argued the command would centralize cyber threat intelligence, incident response, and digital forensics, and would be able to support state and local entities, with optional services for local governments. Members raised concerns about university mission drift, governance, security, chain of command, procurement authority, gifts and donations, and civil liberties implications of proactive cyber monitoring. Witnesses from UTSA/NSCC and SecurityScorecard testified in support, emphasizing the security of the downtown San Antonio facility, the existing cyber ecosystem there, and the need for a dedicated cyber capability. The bill remained under discussion with no final committee action announced in the excerpt.

Transcript Highlights:

• If an agency does not go in there and review the data, attribute the officer's name and their agency
• Here's an example from a sheriff who operated in my area of operations in the Rio Grande City area.
• smuggling operations.
• Operational intelligence.
• use and operation of unmanned aircraft.

Bills: SB659 , SB1585 , SB2201 , SB2514 , SB2569

Committee: House Homeland Security, Public Safety & Veterans' Affairs

Keywords: smuggling, human trafficking, criminal penalties, felony offenses, law enforcement, foreign adversary, foreign-owned company, scrutinized company, China, national security, cybersecurity, information technology, communications technology, ICT, critical infrastructure, state contracts, government procurement, vendor certification, debarment, civil penalty

Transcript Highlights:

• These are the general fund operating adjustments for the Pollution Control Agency, totaling about 446,000
• Agency. Agency.
• I will note that the operating adjustments for all the agencies in fiscal year 2026-27 is about $30.5
• And all the other agencies were mostly just operating increases, so there's no new FTEs for that.
• </c><00:52:46.440><c> operating</c> agencies were mostly just operating agencies were mostly just operating

Transcript Highlights:

• Operation Guardian is our ongoing operation, the governor's initiative to work on deportation of illegal
• You'd be crazy not to go over to that agency.
• We could put our warehouse and operations center next door to their warehouse and operations center.
• And so, cars don't really operate well.
• Most agencies in the metro area have that.

Transcript Highlights:

• And that approval sometimes depends on other agencies, and other times other agencies depend on the IOUs
• CAISO is our transmission operator.
• KISO is our transmission operator.
• So we may be in a situation where we're operating in a very high level of demand and having to operate
• NCPA is a joint powers agency.

Committee: House Utilities and Energy

Summary: The committee first heard AB 1026 by Assembly Member Wilson, a bill aimed at reducing delays in utility energization applications that can hold up approved housing projects. Supporters, including the Housing Action Coalition, Mission Housing, and several housing and local government groups, said investor-owned utilities should follow clearer timelines and disclosure requirements so projects can move forward predictably. Opponents from PG&E and Southern California Edison argued the bill was unnecessary, could conflict with CPUC efforts already underway, and should wait for the ongoing energization rulemaking to conclude. After discussion of the bill’s amendments and timelines, the committee passed AB 1026 on a 15-0 vote, and also dispensed with the consent calendar on a 15-0 vote. The hearing then shifted to the committee’s annual oversight hearing on electric reliability. Representatives from the CPUC, CEC, CAISO, and DWR reviewed lessons from the 2020 rolling outages and 2022 heat events, emphasizing improved planning, better coordination, and the role of strategic reserves. They reported that California enters summer 2025 in a stronger position, with no expected shortfalls under traditional planning conditions and a surplus under standard reliability analysis, though they cautioned that wildfire and extreme heat could still create risk. They also highlighted major additions of battery storage, new procurement, and transmission and market reforms that have improved reliability and flexibility. Members asked about data center load growth, the future of Diablo Canyon, the strategic reliability reserve, wildfire costs, regional market expansion, and the balance between affordability and reliability. Witnesses said data center demand remains a major variable, Diablo Canyon should be planned for as if it may retire on schedule unless policy changes are made, and demand response and energy efficiency remain important tools. CAISO described the Western Energy Imbalance Market and the upcoming extended day-ahead market as major sources of savings and reliability benefits. The panel also said the new slice-of-day resource adequacy framework is working so far, with high compliance and ongoing monitoring.

Transcript Highlights:

• Article one is an agency bill. Article two, 25% of it is an agency bill.
• Article three, a third of it is an agency bill. Article four, a third of it is an agency bill.
• So we take care of our agencies because we feel an obligation to our governor's agency, and we do oversee
• That's in the agency bill.
• That's in the agency bill.

Bills: HF2436 , HF2929

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• oriented food supply or helping agencies, and looking in their operations for their only clients or
• looking into what each agency— ...agencies, without first looking into what each agency is currently
• how it operates in California. with this agency and how it operates in California, I did want to know
• agencies.
• . that's public. agencies that get most to spend are large agencies, in some cases, national agencies

Committee: Senate Governmental Organization

Transcript Highlights:

• We're operating over-occupancy, more demand, more need.
• The unit is operating. So it is fully operational today.
• We will continue to operate all 27 site offices.
• And we operate critical needs case management today.
• We're going to continue to operate the IRTP services.

Committee: Joint Joint Committee on Ways and Means

Summary: The committee heard budget testimony from Department of Mental Health Commissioner Brooke Doyle, who said DMH serves about 29,000 people and is facing rising demand, higher operating costs, and uncertainty about federal funding. She explained that the FY26 budget prioritizes fully funding the state-operated inpatient system, which is at 100% occupancy and often serves people transferred from Bridgewater State Hospital, while making reductions in other areas to balance the budget. Those reductions include a 50% cut to case managers, a pause on closing the Pocasset unit pending a working group on Cape access, and changes to youth and contracted services such as right-sizing IRTP and CIRT, reducing Youth PACT from seven teams to three, scaling back flex and jail diversion grants as ARPA funds wind down, and preserving the behavioral health helpline and community-based crisis services. Members from Western Massachusetts and the Cape raised concerns about access, staffing, and the impact of cuts, and Doyle said the department would continue operating IRTP services, improve the referral process, and work with stakeholders on the Pocasset review and other access issues. The committee also discussed school-based mental health, 988, loan forgiveness for workforce recruitment, and the role of co-response programs for law enforcement. Secretary Robin Lipson then testified for the Executive Office of Aging and Independence, describing a proposed FY26 budget increase of about 21% to support councils on aging, home care, elder abuse investigations, caregiver support, care transitions, and nutrition programs. She said the agency is managing rising demand, especially from the growing 80-plus population, and noted uncertainty around federal Older Americans Act funding after the federal disbursement agency was disbanded. To control costs, the office will manage intake and caseload growth in a fully state-funded home care program, but current clients will not lose services. Lipson also highlighted a new $1 million line item for local mini-grants to support age-friendly initiatives. In questions, members focused on elder scams, and Lipson said scams are increasing and the agency is working with banks, district attorneys, and public awareness campaigns. The Health Policy Commission’s Executive Director David Seltz presented the agency’s FY26 request and said the biggest challenge is health care affordability, with family premiums near $29,000 annually and many residents delaying care because of cost. He emphasized that recent legislation significantly expands HPC’s role through a new Office of Pharmaceutical Policy and Analysis, which will examine the drug supply chain and pricing, and a new Office of Health Resource Planning, which will support statewide planning around closures and access gaps. The new law also creates task forces on maternal health access and primary care, and adds transparency and oversight for private equity in health care. Members asked about pharmaceutical costs, GLP-1 weight-loss drugs, 340B, and maternal health closures; Seltz said the data show rapid growth in GLP-1 spending and that the new offices will help the state better understand cost drivers and access problems. The Center for Health Information and Analysis then began its testimony, describing its role as the state’s data hub for health care spending, utilization, quality, and affordability analysis.

Transcript Highlights:

• Next agency is the Division of Administration.
• There are $750,000 decreases within the agency for Act 413. $1,000 decreases within the agency for Act
• So it's an interesting agency to work at.
• This concludes my presentation for the agency.
• expenses of the facilities operated by LSD.

Committee: House Appropriations

Transcript Highlights:

• When I sent budget instructions to agencies for their agency decision package budget request back in
• We started off with really, really going through scrubbing agencies, doing our best to work with agencies
• Those are not necessarily uniform across every agency because not every agency was uniformly impacted
• Those are not necessarily uniform across every agency because not every agency was uniformly impacted
• As per standard practice, the operating budget usually has maintenance and operation funding for that

Summary: The Senate Ways and Means Committee heard an overview from OFM Director Katie Chapman See on Governor Ferguson’s 2026 supplemental budget proposal. She said the budget was built in response to higher caseloads and inflation, a roughly $390 million revenue forecast drop, new federal costs tied to H.R. 1, and a relatively small ending fund balance. The proposal would increase near general fund spending by about $1.1 billion and solve an estimated $2.3 billion two-year gap through about $800 million in reductions, revenue shifts and tax preference changes, use of other funds, and about $1 billion from the budget stabilization account. She also noted the budget is balanced over two years but not fully over four years under the state’s outlook rules. Chapman See highlighted reductions in Working Connections Child Care, including a soft cap on enrollment and holding subsidy rates at the 75th percentile, delays to long-term care and developmental disability-related changes, and across-the-board reductions to higher education and administrative spending. She also described investments in wildfire suppression and preparedness, affordability programs like utility rebates and home energy assistance, housing-related planning and permitting support, One Washington IT replacement, behavioral health workforce programs, and continued support for some K-12 initiatives such as ninth grade success and homeless student stability. In response to questions, she said some proposed cuts were based on the governor’s subjective judgment about what was critically necessary, that current child care enrollees would not be cut off immediately, and that the budget would maintain services for about 500 highest-acuity Medicaid clients who lost eligibility under federal changes. Public testimony was largely critical of the proposed cuts in K-12, early learning, and higher education. School officials, educators, nurses, and advocacy groups opposed reductions to Transition to Kindergarten, Local Effort Assistance, Running Start, MSOC, school leadership and support grants, and higher education funding, arguing the cuts would worsen existing funding gaps and harm student outcomes. Several witnesses supported restoring or maintaining funding for ninth grade success, Treehouse’s foster youth graduation program, homeless student stability, and Science on Wheels. In early learning, child care providers and advocates opposed the Working Connections cap and subsidy-rate reduction, warning it would reduce access and destabilize providers. In higher education, campus leaders and labor representatives opposed across-the-board cuts and fund shifts, while some institutions and advocates supported targeted investments such as behavioral health workforce programs and DigiPen aid restoration. In human services, Planned Parenthood advocates praised restored abortion access funding and Medicaid reimbursements. The committee took no votes or final action in the transcript provided.

Transcript Highlights:

• that we operate.
• And the agency that we operate.
• and variety of redemption operations.
• For present-day hazardous waste operations, we oversee inspections and permits for hazardous waste operations
• Operational issues may contribute... ...set event. Operational issues may contribute to that.

Transcript Highlights:

• , but my full written testimony will include agency by agency summary for the FY26H1 budget.
• operations for this location.
• to kind of refocus because you've gone from these huge agencies to our agency...
• We will not have the funds to support certain agency-wide operational expenses.
• This is despite the agency adopting extensive process changes to streamline operations and making the

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• And I'll show you which operators stepped up.
• What you'll note is, if you go back to that top operator slide, these are the top operators, not the
• And if you're a Bakken operator, you get X many years.
• Multiple agencies have multiple facilities receiving funding, allowing these agencies to address many
• Going into some more agencies here, we do have a new agency, the Office of Guardianship and Conservatorship

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity in North Dakota. Ron Ness said production is expected to remain relatively flat at just under 1.2 million barrels per day, with efficiency gains and longer laterals helping offset lower rig counts. He discussed oil and gas prices, gas taxation, flaring concerns, northward movement of drilling activity, and the importance of new infrastructure and enhanced oil recovery (EOR) pilots. Members asked about gas taxation, natural gas liquids, pipeline impacts, and the outlook for Continental and other operators. Ness said the industry is likely to remain steady rather than see a major ramp-up or decline. Matt Pearl of the State Tax Department then explained the federal “big beautiful bill” and its effect on North Dakota income tax collections. He said the law extends or makes permanent several federal provisions and creates temporary deductions for seniors, tips, overtime, and auto loan interest, with the biggest state impact coming from the standard deduction increase and business tax changes. He revised earlier estimates downward, saying the net cash impact on state collections is likely in the $30 million to $35 million range after accounting for business prepayments and one-time FY25 oilfield transaction effects. Committee members asked which provisions apply to standard versus itemized returns. OMB staff gave a detailed update on major capital projects and facility funding. Topics included Capitol grounds improvements such as 18th-floor renovations, wayfinding, seating, lighting, tree management, and restroom and lobby upgrades; security work at the governor’s residence, which has been delayed by the discovery of human remains; and space reconfiguration efforts in Bismarck-Mandan to reduce leases and create shared offices and conference rooms. They also reported on the State Facility Maintenance Fund, including roof, window, boiler, and kitchen projects at state facilities, and on the state hospital project in Jamestown, which remains on budget and on schedule for substantial completion in winter 2027 and opening in spring 2028. OMB also updated the committee on the Minot North Central State Office Building, the use of federal State Fiscal Recovery Funds, and the status of legislative intent and trust fund reports, including school aid turnback, the school construction loan program, the Foundation Aid Stabilization Fund, the Legacy Fund, and the Strategic Investment and Improvements Fund. The committee ended by discussing future agenda items, including government efficiency, cash management, Bank of North Dakota lines of credit, and the rural health transformation program, and then adjourned.

Transcript Highlights:

• Most agencies are reviewed on a 12-year cycle, and on average, we review about 22 agencies. agencies
• of all sizes so it's not a small agency mid it's agency or large agency issue great and so my last question
• We will now move on to our conversation on. agency operations.
• Okay, so that concludes today's testimony on agency operations.
• optimization. and a blueprint for agencies seeking to enhance operational efficiency. fiscal diligence

Committee: House Delivery of Government Efficiency

Transcript Highlights:

• With 46 agencies reporting positive employee productivity and 50 agencies reporting no impact on employee
• Agencies come before asking for more money for their agencies.
• They have, yeah, the agency.
• operations.
• You referred to sustaining client services and staff and on page 30, strengthening agency operations.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• Florida's first budget for general government agencies.
• The remaining $64 billion is funded through agency trust funds.
• While the Florida's first budget recommends increases in funding for agency operations and critical programs
• The first item up on the slide covers business operations.
• Six million is recommended for operational cost increases.

Committee: Senate Appropriations Committee on Agriculture, Environment, and General Government

Transcript Highlights:

• What’s your agency? B? Yes. If I could have the agency come down for a moment.
• This is to fund the agency needs in the areas of infrastructure or operating expenses.
• This is to fund the agency needs in the areas of infrastructure or operating expenses. All right.
• Those are all in our operating appropriation section.
• It's from operating expenses to professional fees.

Committee: All ALC-PEER

Summary: The committee reviewed a large slate of appropriation, transfer, and continuation requests across multiple sections. In Section B, members considered temporary FY27 appropriations for agencies including Health, DHS, Education, Treasury, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, Game and Fish, and others, covering items such as maternal health outreach, LIHEAP overpayment returns, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim claims, airport grants, conservation incentives, and emergency tower maintenance. Questions focused on the DHS senior services carry-forward and Treasury custodial banking fees tied to lower balances after COVID funds were spent down. All Section B items were approved. The committee then approved continuation requests, ARPA reallocations, and federal grant-related items in Sections B2, C1A, D1, D2, D3, E1, E2, E3, F1A, G1, H1A, I1A, J1/J2, K1/K2/K3, L1/L2, M1/M2, N1/N2, O1A, and P1A. These included university nursing and workforce programs, environmental and recycling grants, highway safety and emergency management grants, a transfer to the Merit Teacher Incentive Program, restricted reserve transfers for military, agriculture, UAPB, Game and Fish, and AETN, and various cash-fund and budget classification transfers. Several members asked for more detail on the State Police highway safety grant, VOCA victim compensation funding, the NSGP nonprofit security grant, and the Office of State Technology’s E-Rate-related transfer; agency officials explained the uses and noted that some funding levels depend on federal awards and collections. A notable discussion occurred on the Department of Commerce reallocation, which shifts 68 positions and $3 million among divisions to support an organizational realignment and avoid shortfalls. The committee also reviewed a state central services deduction request to keep the rate at 2%, a DHS overtime request for child protection caseloads, and a year-end adjustments request authorizing up to $1 million in temporary actions to close FY26 books without disrupting payroll or vendor payments. Most items were approved or, in some sections, simply reviewed without objection. The meeting adjourned after completing the agenda.

Transcript Highlights:

• and intra-agency cash flow characteristics and processes, reviewing state agency cash management technology
• These funds operate These funds operate on a larger horizon and offer insights into how the state could
• And are other agencies doing the same?
• You know, process type of gas operations is on.
• Gas plant, oil and gas, and power plant operators. Well, I just... ...and power plant operators.

Summary: The Leadership Division of the Budget Section approved the prior meeting minutes and then received an update from Senator Jonathan Sickler on the Cash Management Board’s interim work under House Bill 1278. He said the board has reviewed state cash, investments, and liquidity across agencies and concluded the state’s overall mix of long-term and short-term assets is appropriate, with about $35 billion in total liquid assets and investments and roughly 89% in longer-term investments. He highlighted process improvements already underway, including replacing more than 500 six-month CDs with a special-rate savings account to reduce administrative work, and said the board sees opportunities to improve forecasting, automation, and statewide coordination. Members asked about whether the CD change would increase returns, how the Legacy Fund transfer for the homestead tax relief bill affected earnings, and whether more state cash could be consolidated or better managed through BND; Sickler and BND staff said those issues are being studied and may lead to legislation for the 2027 session. Representative Nathan Toman then updated the committee on the Task Force on Government Efficiency. He said the group has focused less on cutting dollars and more on defining metrics and asking how the legislature knows whether programs are working. The task force is pushing a standard set of questions for new or expanding programs—who is affected, expected outcomes, alternatives, how success will be measured, and full funding—and OMB has agreed to require those answers in future budget requests. Members discussed possible use of dashboards, program evaluators, AI tools, and possible rule or statutory changes to require performance measurement. Toman said the task force will continue meeting with agencies such as the courts, university system, auditor, HHS, Commerce, and ITD to identify workflow bottlenecks and potential efficiencies. Phil Davis of Job Service North Dakota gave a workforce update, reporting that North Dakota’s unemployment rate is 2.5% and labor force participation is about 68.7%, both well above national performance. He described Job Service’s 15 workforce programs, including H-2A housing inspections for foreign agricultural workers, the job placement partnership program with DOCR, WOTC, and other federal and state workforce efforts. Davis said the agency served more than 11,000 individuals in 2025, operates nine workforce centers, and tracks outcomes through quarterly and annual reporting. In response to questions, he said job openings data reflect only positions in the system and may understate actual hiring needs, that child care and other assistance programs could be better tied to employment outcomes, and that the DOCR partnership has shown strong results with lower recidivism and higher earnings. He also said the H-2A inspection workload is growing quickly and additional staffing or less frequent federal inspection requirements could help. Allen Knutson then presented S&P Global’s updated revenue forecast. He said oil prices have risen sharply since the prior month’s outlook, improving the state’s near-term revenue picture, though the economy remains volatile and agriculture is facing weaker commodity prices. Based on the updated forecast, total major tax revenues for the current biennium are projected to be about $89 million above the legislative forecast, and the next biennium could be about $500 million higher, though that estimate is preliminary and may change. He also walked through an alternate oil-price scenario showing significantly higher oil and gas collections and a larger Strategic Investment Fund balance if prices remain elevated. Members asked whether another forecast should be requested once oil markets stabilize and about tribal allocation changes in the alternative scenario; Knutson said additional updates are possible through OMB and future forecast cycles.