Transcript Highlights:

• We now project to end fiscal years 2026 and 2027 with a surplus of $3.7 billion, which is $1.3 billion
• Left unspent, that surplus will carry forward into fiscal years 2028 and 2029.
• Um, any increases need to be appropriated by the legislature.
• Um, any increases need to be appropriated by the legislature.
• If you include include uh appropriation If you include include uh appropriation carry<00:31:10.240

Keywords: 1183, house

Summary: Minnesota Management and Budget officials presented the February 2026 budget and economic forecast, saying the state remains in a strong financial position but faces continued structural imbalance and significant uncertainty. Commissioner Aaron Campbell said the FY 2026-27 balance is now projected at more than $3.7 billion, up about $1.3 billion from November, and the FY 2028-29 planning period is projected to end with a $377 million positive balance. He emphasized that the improvement comes largely from higher projected revenues, especially individual income and corporate franchise taxes, but warned that the state is increasingly reliant on more volatile sources such as capital gains, interest income, and corporate profits. State Economist Dr. Anthony Becker said the national outlook improved slightly, with stronger projected GDP, consumer spending, and investment, but weaker payroll growth and ongoing trade-policy uncertainty. He noted that the forecast was complicated by missing federal data because of the federal shutdown, and that tariffs, immigration policy, equity markets, and possible AI-related shifts all present risks. Revenue projections were raised for the current biennium, including individual income tax receipts, sales tax revenue, corporate franchise tax revenue, and other revenues, while Becker stressed that federal funding threats, especially involving Medicaid and other entitlement programs, could materially alter the outlook. State Budget Director Anna Mingi said general fund spending in the current biennium is projected to be $68 million lower than previously estimated, but planning-year spending is up $152 million. The biggest spending changes came from education, where special education costs rose sharply after updated local spending data, and from human services, where a new prepayment review process for certain Medicaid benefits reduced projected spending by $133 million this biennium and $105 million in the next. She also said discretionary inflation is now estimated at $1.04 billion, up $104 million from November. Campbell closed by saying the state’s reserve remains at a record $3.8 billion and that Minnesota’s AAA bond rating and reserve policy help protect against downturns. He cautioned, however, that the long-term structural imbalance remains about $3.4 billion in the planning years, or $2.3 billion excluding discretionary inflation, and urged policymakers to offset any new spending with reductions. No votes or formal actions were taken; the meeting was a presentation and question-and-answer session on the forecast.

Transcript Highlights:

• The question, rhetorically, in my view, is this appropriate?
• Muster the appropriate solution to this.
• budget surplus.
• We need to transfer risk where appropriate, among other considerations.
• Most appropriately, when the project review is done.

Keywords: 988, house, all

Transcript Highlights:

• And we need that revenue stream that could potentially do appropriation bonds as well to extend it to
• And we need that revenue stream that could potentially do appropriation bonds as well to extend it to
• And we need that revenue stream that could potentially do appropriation bonds as well to extend it to
• couple of years back, and I know that we're all getting tired of hearing about what was an $18 billion surplus
• couple of years back, and I know that we're all getting tired of hearing about what was an $18 billion surplus

Keywords: 1183, house

Transcript Highlights:

• <00:13:48.760> $2 uh current 2025 Bill appropriates $2 uh current 2025 Bill appropriates $2
• that was going to be appropriated that was going to be appropriated or<00:19:07.120> decisions
• <00:43:28.040> appropriation is where that appropri appropriation is where that appropri appropriation
• money with the capital bud appropriation money with the capital bud appropriation correct<01:45:
• It wouldn't be on the surplus statement because it's not an appropriation, but I do want to just get

Keywords: 928, house, all

Summary: The committee took up House Bill 2 retirement provisions, focusing on Group Two/Tier B changes in pages 25-39. Jan Goodwin of the New Hampshire Retirement System and deputy chief counsel Mark Kavanaugh explained that the 2025 bill is largely similar to prior versions, but it restores certain pre-2011 benefit rules for Tier B members, including changes to average final compensation and earnable compensation, and it also addresses the annuity multiplier for years of service. Members discussed the tier structure, with Tier A referring to vested members, Tier B to those hired before 11/1/12 who were not vested, and Tier C to later hires. Several members expressed concern that the bill’s purpose was to restore Tier B benefits, not to change Tier A rules or create broader changes affecting newer hires. The retirement system flagged two likely drafting problems. First, it said a provision appears to omit a special-duty/earnable-compensation limitation in the Group Two section, which they believed was a scrivener’s error caused by moving language out of the Group One definition without adding it back for Group Two. Second, they noted the bill’s multiplier language overlaps with changes already enacted in HB 1647, which increased the multiplier for service beyond 15 years for Group Two and carried an estimated $26 million cost. The committee discussed that HB 1647 was originally broader in the House, but the Senate narrowed it to Tier B only. The actuary’s comparison of the 2023 and 2025 HB 2 versions showed the bills are close, but the 2025 version differs in funding and timing. Staff said the 2025 bill appropriates $2.5 million more per year for 10 years, and that, together with updated actuarial assumptions and a larger share of the affected tier having already retired or otherwise left service, results in a larger reduction in unfunded liability than the 2023 bill: about $98.2 million versus $68.5 million. Employer contribution impacts were described as small overall, though the 2025 bill was said to be somewhat more favorable than the 2023 version. Members also questioned why House Bill 1 only funds $5 million in the first year, and staff said that was tied to the governor’s revenue estimate and that the full funding does not begin immediately. No votes were taken in the portion provided; the committee mainly received testimony, asked clarifying questions, and noted that some issues would be addressed in the fiscal note worksheet.

Transcript Highlights:

• Doesn't it, House Appropriations? Back home again.
• Basically, it's a work session on the appropriations bill that is before us.
• We do not need legislative appropriation to accept the grant.
• We do need the appropriation.
• It would not appropriate any additional funds.

Keywords: 908, all

Summary: The Appropriations Division met in a work session on the draft Rural Health Transformation appropriations bill, 25.1392.01000, with no public testimony taken. Legislative Council and the Department of Health and Human Services walked through the bill, which would appropriate about $397.8 million in federal grant funds over two federal fiscal years, provide transfer authority, allow certain federal funds to be used for salaries and wages without counting against existing transfer limits, and authorize OMB to adjust other agencies’ spending authority if they receive grant awards through HHS. The bill also includes several temporary statutory exemptions to help implement the program, plus recipient acknowledgement/reporting requirements, periodic reports to Legislative Management, and an immediate effective date upon filing. Committee discussion focused heavily on how the federal rural health transformation money can be used and administered. Department officials explained that CMS will review projects for allowability and sustainability, that the state has flexibility to move funds among categories, and that the grant is limited to 10% administrative costs. Members asked about whether the funding could support renovations, equipment, ambulances, bulk purchasing, food distribution, and other rural health ideas, and were told many details will depend on CMS approval and the eventual applications. Questions also addressed cash flow, timing of obligations and reimbursements, FTE funding, and whether grant recipients should be told the program will not continue beyond the federal period; officials said the language is meant to prevent expectations of automatic continuation, not to bar future legislative action. The committee also discussed the bill’s use of a two-year appropriation amount, with staff explaining that the state must appropriate enough authority to cover the federal grant cycle and that unused authority would lapse if the full amount is not received or spent. Members raised concerns about whether the bill’s language could limit creativity or future program design, but department officials and several members emphasized the need for flexibility because CMS may reject overly specific directives. After discussion, the committee voted to recommend the bill draft to the full committee; the motion carried on a roll call vote, and the chair said the full Joint Appropriations Committee would take up the bill at the special session next week.

Transcript Highlights:

• How much new money do we have to be appropriated for FY 26?
• But it is available to be appropriated.
• Okay, the total appropriations can grow by $892 million.
• appropriations are maintained as flat.
• So, multi-year appropriations for piloting things.

Transcript Highlights:

• to have to figure out how to do the community engagement, how much it would cost, and where the appropriate
• However, we did get a surplus and we tried to put these little fixes in there. do the updates and the
• However, we did get a surplus and we tried to put these little fixes in there.
• We did get a surplus, and we tried to put these little fixes in there.
• was rewritten to the current commission, I don't believe there was any packing forward of the appropriation

Keywords: 995, all

Summary: The commission approved the minutes from its March 11 meeting after a motion by Jeannie Costa and a second by Senator Michael Brady, with members noting a few possible corrections to attendance and wording. The meeting then focused on updates about the commission’s timeline and funding. Staff reported that an amendment to extend the commission’s deadline from December 31, 2026 to December 31, 2027 was filed in the Fair Share budget but was not accepted, and members discussed pursuing the extension through other budget vehicles, including the regular budget, a supplemental budget, or other legislation. Commissioners also discussed the need to fill a vacancy left by Julius Brito and to potentially extend the deadline for appointing new commissioners. A substantial portion of the meeting was devoted to brainstorming the commission’s community engagement plan for the proposed Cape Verdean Culture Center. Members revisited a three-part approach involving site visits, traditional listening sessions, and outreach at existing Cape Verdean events, while also emphasizing historical accuracy, youth engagement, visibility, and regional collaboration. Commissioners suggested using surveys, canvassing, social media, a website, and other digital tools to reach people across the diaspora, including those unable to attend in person. Several members recommended specific locations and institutions for engagement, including New Bedford, Brockton, Boston, Cape Cod, and Rhode Island, with references to museums, historical societies, clubs, and cultural organizations already doing related work. Testimony and comments also addressed funding and organizational structure for the future center. Legislators described possible funding sources such as House and Senate earmarks, a bond bill, and a nonprofit structure that could later support fundraising and operations. Members discussed examples from other cultural institutions, including the Holocaust Museum, the African American History Museum, and the Haitian Toussaint Louverture Cultural Center, as models for governance and public support. The group also raised the possibility of future collaboration with the Cape Verdean government and institutions in Cabo Verde, though one member urged waiting until after upcoming elections there before making formal contacts. No additional votes were taken beyond approving the minutes and adjourning the meeting.

Transcript Highlights:

• Section 15 allows a district to dispose of surplus school books by donating them to a family of a student
• > school<00:11:07.760> books<00:11:08.079> by dispose of surplus school books by
• dispose of surplus school books by donating<00:11:08.720> them<00:11:08.880> to<00:11:
• The next item relates to full-service community schools and the availability of the appropriation.
• Uh that was House Article appropriation.

Keywords: 1187, senate, all

Transcript Highlights:

• GNC approval but all the Appropriations GNC approval but all the Appropriations are<00:21:43.600
• <00:45:41.839> sales of money associated with Surplus sales of money associated with Surplus
• <02:49:59.720> has it it was okay you can't the Surplus has it it was okay you can't the Surplus
• General Highway fund for appropriation General Highway fund for appropriation to<03:25:35.920>
• The fire fund appropriations appear as revolving funds.

Keywords: 928, house, all

Summary: The committee met with New Hampshire DOT Commissioner Bill Cass and Finance Director Danielle Shandra to review the agency’s FY 2026 budget. Cass gave a high-level overview of DOT’s mission, organization, funding structure, and staffing trends, noting the agency has about 650 employees across five divisions. He said the Governor’s recommended FY 2026 budget totals $95.99 million, essentially flat from FY 2025, with funding primarily from Turnpike funds, Highway funds, federal sources, and a small General Fund share for non-highway units. Members asked about how Turnpike and Highway funds are treated in state accounting, and DOT explained that while they are enterprise funds restricted to their purposes, they are considered unrestricted from the statewide perspective and are appropriated through the budget process. A major topic was staffing and budget targets. DOT said its full-time staffing level has remained relatively flat since 2014 even as vehicle miles traveled increased and vacancies rose. To meet budget targets, the department unfunded seven permanent positions and nine temporary full-time positions, and later noted additional reductions in Finance, including the elimination of two full-time positions, reduced print shop equipment purchases, and deeper cuts to overtime, temporary help, equipment, and supplies in FY 2027. DOT also explained that it shifted funding for one unmanned aerial system position from General Funds to Highway Funds, saying the change was workable because the position supports highway-related work and federal-aid-eligible activities. Members asked for clarification on the state transit operating match, and DOT explained that the Legislature had previously provided about $1.8 million annually in General Funds to help local transit agencies meet federal match requirements, but that funding was not included in this budget. DOT said that could reduce the ability to draw down some federal transit funds, though the impact may not be immediate because those funds can be used over several years. The department also described its unmanned aerial system program, saying it has been used for about five years for mapping, survey work, construction oversight, and storm damage assessment, and that it now has about five drones and two full-time positions supporting the program. DOT said it is expanding cross-training so more employees can operate drones without adding positions. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• It directs surplus funds from the Alabama 21st Century Fund toward energy infrastructure and economic
• reallocation of these revenues that the Alabama 21st Century Fund is funded by an annual $16 million appropriation
• Any amount above those payments must be transferred to SIDA. the use of these surplus funds.
• The bill transfers accumulated surplus funds from the 21st Century Fund in the following amount: $50

Bills: SB311, SB322, SB304, SB313, SB315, SB316, HB489, SB90

Keywords: electric transmission, public highways, permit processing, economic growth, infrastructure, rural development, condemnation actions, state regulations, community development district, CDD, annexation, municipal annexation, wet municipality, dry county, wet county, Sunday alcohol sales, ABC Board, alcohol licensing, on-premises consumption, golf course

Transcript Highlights:

• And we were able to do that because we had a surplus and we've been spending down the surplus.
• But that surplus is coming to an end. And so you have to balance it.
• We are expressing an appropriating authority. We're expressing...
• We are expressing an appropriating authority.
• It is an expression of an appropriating authority.

Summary: The House took up a series of conference committee reports and third-read Senate bills near the end of session, with several members also recognizing House drafters and research staff. The chamber first adopted and finally passed Senate Joint Resolution 87, which drew debate over whether the measure would remove the City of St. Louis sheriff as an elected office; supporters said the change also applied to other charter governments, while opponents argued it reduced local autonomy. The report and final passage both succeeded on 95-46 votes. Members then adopted and finally passed Senate Bill 973, a package combining a wholesaler/real estate transparency measure with a land bank provision. Senate Bill 1421, a broad public safety bill, was also advanced after a motion to exceed the conference differences; supporters highlighted provisions on clean slate, masked intimidation, prosecuting attorney salaries, fentanyl, gift card fraud, unmanned aircraft, and other public safety items. The conference report passed 116-18, the bill finally passed 110-25, and the emergency clause for the drone-related portion passed 136-5. The House also adopted and finally passed Senate Bills 835 and 1111, a combined conference report that included insurance consumer protections, court administration updates, treatment court and judgeship provisions, a St. Louis civil case surcharge, and the Uniform Public Expression Protection Act. Senate Bill 1408 was stripped back to a single issue authorizing MoDOT to consider raising rural interstate speed limits from 70 to 75 mph, and it passed 93-46. Senate Bill 913, extending several agriculture tax credits and adding a short line railroad credit, prompted extended debate over tax credits, budget pressures, and whether such incentives should be extended now or later; a proposed child tax credit amendment was withdrawn, and the bill ultimately passed 107-30. The House then began debate on Senate Bill 1553, a critical minerals and pharmaceutical manufacturing incentive bill, with supporters framing it as a jobs and supply-chain security measure and opponents raising questions about tax incentives and local impacts.

Transcript Highlights:

• , but I agree with not huge surplus, but I agree with Senator<01:14:16.400> Gray<01:14:17.520>
• somewhere else if it's not appropriated somewhere else if it's not appropriated through<01:16:14.080
• It has about a $6.9 million appropriation estimation from the Department of Education.
• for the biennium ending, leaving the appropriation in for the food.
• appropriation in for the actual food.

Keywords: 10:00am HB 1260 11:00am HB 1574 12:00pm HB 1816 2:30pm HB 1499 2:45pm HB 1709, 928, house, all

Summary: The conference committee first met on HB 1260, a bill requested by municipal clerks to allow certain divorce-related records to be kept confidential. House members argued the Senate amendment would reverse the presumption of openness established in the Keene Sentinel case and raise constitutional issues under the state constitution’s privacy and open-government provisions. Senate members responded that the 2018 privacy amendment, the limited scope of the proposal, and modern internet risks justified the change, but the House maintained the issue needed a full hearing in a separate bill. The committee ultimately voted unanimously for the Senate to recede and adopt the House version, preserving the underlying bill without the Senate amendment, and both sides said they would revisit the topic in a future session. The committee then took up HB 1574, which extends free and reduced-price breakfast and lunch programs and provides funding for SNAP administrative costs. The main dispute was the Senate’s addition of $4.4 million for SNAP administration, which DHHS said was needed because federal law would shift more administrative costs to the state and could increase the state’s SNAP error rate, potentially triggering much larger future penalties. DHHS officials reported the current error rate was 7.57% for federal fiscal year 2024, below the national average, and estimated that if the rate rose above 8%, the state could owe about 10% of SNAP benefits, or roughly $12 million for a partial year and nearly $16 million for a full year. Some House members supported the added funding as a preventive measure, while others objected that the underlying bill was modest and the amendment resembled a previously rejected proposal. The discussion ended with the committee moving toward the House position and the bill’s future depending on the chamber’s vote on the Senate amendment.

Transcript Highlights:

• sales and and associated uh surplus sales and and associated uh surplus revenue<01:01:44.480>
• . appropriate. appropriate.
• I I think that's an appropriate<03:09:32.000> place<03:09:32.399> because, appropriate
• <03:20:14.399> request water would be an appropriate request water would be an appropriate
• discussed here in the appropriate way. discussed here in the appropriate way.

Keywords: 1189, house, all

Transcript Highlights:

• <03:38:22.000> And appropriating a contingency fund.
• And appropriating a contingency fund.
• All right, and I'm changing it to 3% of the total appropriation, the total budget.
• <03:57:17.120> and um of your prior year appropriations and um of your prior year appropriations
• undesated fund balance into surplus undesated fund balance into surplus account<04:29:04.319>

Keywords: 1189, house, all

Transcript Highlights:

• And I would have asked whether she believes it was appropriate for a political organization on whose
• Over that period, I staffed the Commerce Committee and the Appropriations Committee, so I spent a lot
• Is there any case that, you know, comes to mind that it's appropriate for your agency or others to, you
• The National Association of Insurance Commissioners has established a three-to-one premium-to-surplus
• Under the three-to-one premium-to-surplus ratio, the most it could have written in premiums was just

Summary: The Committee on Director Nominations met with four members present and approved the prior minutes without objection. Chair Jay Kaufman outlined the committee’s role in reviewing executive nominations and explained the hearing process for three nominees: Mary Foote for the Office of Economic Opportunity, Debbie Johnston for the Department of Health Services, and Chuck Bassett. Foote did not appear for her hearing, and members discussed her absence and alleged omissions in her disclosure materials, including prior service with Planned Parenthood-related organizations. The committee then moved to reject her nomination, and the motion passed 3-2, recommending that the full Senate reject Mary Foote. Debbie Johnston, nominee to lead the Department of Health Services, appeared and gave an opening statement describing her Arizona background, prior Senate staff work, and more than 20 years with the Arizona Hospital and Health Care Association. She said her priorities at ADHS include rebuilding trust in public health licensing, improving stakeholder engagement, standardizing rulemaking communication, addressing alleged religious discrimination and retaliation concerns in licensing, and using technology and AI to improve efficiency. In questioning, senators pressed her on her management style, conflict-of-interest safeguards given her prior industry role, enforcement priorities, budget pressures, behavioral health and assisted living oversight, and the department’s response to COVID-19. Johnston said she would follow statutes, recuse herself from enforcement matters involving former contacts, and resign if directed to carry out an unlawful policy. She also said the department does not regulate therapy itself, only facilities, and that it would rely on legal counsel regarding the governor’s conversion-therapy executive order and related federal civil-rights allegations. Several senators focused on public health trust and the department’s pandemic response, with Johnston acknowledging concerns about closures, data collection, and communication during COVID-19 while saying she would review past after-action materials and be better prepared in the future. Public testimony from stakeholders in aging services and health care strongly supported her confirmation, praising her accessibility, responsiveness, and collaborative approach. After testimony, the vice chair moved to recommend Johnston’s confirmation to the full Senate. The roll call was underway when the transcript ended, with several members voting aye and one member expressing reservations about her not reviewing the pandemic after-action report before another crisis occurs.

Transcript Highlights:

• /c><00:17:38.560> just some of these appropriations, just some of these appropriations, just glancing
• completed appropriately. completed appropriately. Thank<00:28:46.960> you.
• is appropriate. is appropriate.
• through an 18 billion dollars surplus through an 18 billion dollars surplus surplus<00:40:53.320
• Barajas, for your presentation. of an appropriation that um was grant of an appropriation that um was

Bills: HF4740, HF3940

Keywords: financial assurance, feedlot permits, manure storage, environmental compliance, agriculture regulation, abandoned infrastructure, pollution control, environmental impact, animal feedlot, livestock, regulations, Minnesota Rules

Summary: The committee approved the March 26, 2026 minutes and then heard House File 4740, authored by Rep. Hansen, which would require feedlots with at least 1,000 animal units to provide financial assurance for closure costs. Hansen argued the bill would shift cleanup responsibility from taxpayers to owners, citing abandoned feedlots, changing ownership structures, and the 2024 Pure Prairie Poultry bankruptcy as examples of why public funds should not be used for closures and cleanup. He also said the bill would apply to new or renewed permits and suggested a statutory definition of abandoned feedlot storage units may be needed. Farm and livestock groups testified in opposition. Minnesota Farmers Union, Minnesota Milk Producers Association, Minnesota Pork Producers Association, and Minnesota Farm Bureau Federation said existing MPCA and county permit rules already require closure planning and reporting, and that the bill would add unnecessary costs and barriers for family farms, beginning farmers, and expansion. They warned the financial assurance requirement could function like an animal-unit cap, encourage fragmentation or out-of-state relocation, and impose annual costs that would not improve environmental outcomes. Several testified that true abandonment is rare and that current permitting and closure processes already address it. MPCA staff said the agency has concerns with the bill, noted there is currently no formal fiscal note, and said the agency would need to ensure any appropriations cover ongoing staffing needs. MPCA officials explained that permitted feedlots already must notify the agency before closure, follow a checklist of closure requirements, and undergo follow-up inspection; they said abandonment notifications are uncommon and they are not aware of any currently permitted facilities in abandonment process. Members questioned whether the bill was needed, what form financial assurance would take, how other states handle similar requirements, and whether the proposal would unfairly burden smaller or family operations. No vote on HF 4740 was taken in the portion of the meeting provided.

Transcript Highlights:

• for the fiscal year 2025 to provide supplemental appropriations for certain existing appropriations
• for the fiscal year 2025 to provide supplemental appropriations for certain existing appropriations
• Thank you. ...million dollars worth of appropriations in this bill.
• This bill appropriates $259 million.
• Appropriations and for certain other activities and projects, Senate No. 2575.

Keywords: 995, all

Summary: The Senate first debated and advanced Senate Bill 2561, an act to promote student learning and mental health, centered on a statewide bell-to-bell restriction on student cell phone use in schools. Supporters argued the bill would reduce distraction, improve academic performance and mental health, and encourage social interaction, while preserving flexibility for districts and exceptions for emergencies, special education, health needs, and instructional uses. Several senators emphasized local control and the need for public input, and a number of amendments were considered: some were withdrawn, some were rejected, and others were adopted, including an amendment requiring consistent and necessary exceptions and another requiring public hearings and local public input. The bill was then ordered to a third reading and passed to be engrossed by a roll call vote of 38-2. The Senate also took up a conference committee report on a $259 million FY2025 supplemental appropriations bill. The report funded EMS costs, home care, the Healthy Incentives Program, DTA chip card technology, veterans benefits, the state police crime lab, the SSI state supplement, the Fair Housing Fund, and the National Guard, and included major indigent defense provisions: $40 million for 320 new CPCS staff attorneys, rate increases for private bar advocates, guardrails to reduce future work stoppages, and an independent review of the indigent defense system. Senators questioned the timing of the report, the inclusion of items not previously voted on by either branch, and the funding sources, including use of the transitional escrow fund and excess revenues. The report was accepted, the emergency preamble was adopted, and the supplemental budget was enacted. In addition, the Senate passed other measures, including a bill authorizing the Massachusetts Water Resources Authority to supply water to the Linfield Center Water District and a municipal roads and bridges financing bill, both by roll call vote. The chamber also enacted a health care protections bill, and it concurred in referrals on a governor’s municipal empowerment legislation. The session included a brief memorial tribute and adjournment in memory of Harry C. Christensen.

Transcript Highlights:

• What we have some certainty about is that it's become sort of a new normal for these one-time surplus
• funds and whether it's settled up or a one-time surplus funds and whether it's settled up or a one-time
• new normal for these one-time surplus funds.
• I'm happy to take questions at the appropriate time. Thank you.
• Usually the state appropriates that funding as soon as it recognizes a higher estimate of the guarantee

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• I think expensive is a little bit subjective, seeing as we had a $185 billion surplus.
• had<00:08:58.399> an<00:08:58.440> $185<00:08:59.079> billion<00:08:59.640> Surplus
• c><00:09:00.120> we<00:09:00.240> had<00:09:00.360> that had an $185 billion Surplus
• we had that had an $185 billion Surplus we had that 10<00:09:00.760> a.
• organizations to pop up overnight looking to benefit from this, but I also don't like direct grant appropriations

Keywords: 1183, house

Transcript Highlights:

• appropriations report. Senator Weissman. appropriations report. Senator Weissman.
• appropriations committee report. appropriations committee report.
• . appropriation. appropriation.
• . appropriation. appropriation.
• appropriation. Senator Amado. appropriation. Senator Amado.

Keywords: 981, all

Summary: The Senate met with a quorum, approved the previous day’s journal, and received committee and conference reports. Committee actions included favorable reports on several appropriations and local government bills, postponement of some measures indefinitely, and a conference committee report on House Bill 1357 concerning the teacher recruitment, education, and preparation program and related appropriations. The chamber also received a House message indicating House Bill 140 had been postponed indefinitely. The main floor action was consideration of Senate Joint Resolution 24, designating May 2026 as Motorcycle Safety Awareness Month. Supporters described motorcycle riding as part of Colorado culture and emphasized safety, rider education, and sharing the road. The resolution was adopted 33-0, and ABATE of Colorado was recognized in connection with the measure. The Senate then moved into special orders and took up Senate Bill 116, which as amended focused on property tax changes, including setting the business personal property exemption ceiling at $58,000 without future inflation adjustment and aligning dates for the portable senior property tax exemption pilot. Senator Weissman argued the changes simplified administration and were fiscally prudent, while Senators Pelton and Frizell opposed the bill, saying the business property tax cap would hurt small businesses and that the portable senior exemption’s sunset would raise taxes for affected seniors. The debate continued as the bill was considered in committee of the whole.