Transcript Highlights:

• Some are doing cost versus revenue analysis.
• The calculation wouldn't have changed.
• That's just a placeholder for calculations.
• That's a federally recognized way to calculate the FTE.
• Keeping it revenue neutral.

Summary: The Higher Ed Funding Committee met to review how North Dakota might identify and address low-producing academic programs and to discuss draft funding formulas for the university system. Lisa Johnson of the NDUS explained that the State Board of Higher Education is already developing a system-wide policy, using models from other states such as Texas, Virginia, North Carolina, Colorado, Kentucky, Ohio, and Connecticut. She described how low-producing programs are typically flagged by multi-year enrollment or completion thresholds, then reviewed for workforce demand, mission fit, cost, accreditation, and regional need before any action is taken. Committee members asked about what counts as a program, how costs are analyzed, whether certificates are included, how exemptions work for mission-critical or high-demand fields, and whether the board or legislature should set the rules. Johnson said the board is the appropriate body to lead the process, but legislators could use funding leverage if they wanted to encourage action; the chair asked the board to bring a detailed proposal to the June meeting. The committee then heard a Legislative Council presentation on a draft formula for UND and NDSU. The proposal uses fall census FTE enrollment, with a placeholder undergraduate rate of $7,000 per FTE and a graduate/professional rate of $10,500, plus incentives for completions in in-demand fields and research productivity. Alex from Legislative Council walked through the projected funding effects, noting that the model would increase funding for NDSU and reduce it for UND in the current biennium, with different results in the next biennium as enrollment changes are recognized. Members questioned the use of the placeholder rates, the definition of in-demand programs, the treatment of research funding, and the exclusion of state-appropriated dollars from the external grants calculation. The chair emphasized that the numbers were illustrative and that appropriators would set the actual dollar amounts later. A second draft formula for the other nine institutions was also reviewed. That model uses fall census FTE without a weighted economic factor, applies a higher undergraduate rate, and adds completion incentives for in-demand credentials and all other completions. Members noted that the formula would benefit some institutions, such as Bismarck State College, while reducing funding for others, such as Mayville State, and discussed whether the nine institutions should be treated more uniformly or split into smaller groups because of their different missions and sizes. Committee members and staff repeatedly stressed that the formulas are still being refined and that some institutions would likely need hold-harmless adjustments or other transition measures. The meeting ended with the chair directing the committee to continue the discussion later and to expect further work on both the low-producing program policy and the funding formulas.

Transcript Highlights:

• Time for House Revenue and Taxation to meet, and we are called to order.
• It is RS 33142, Internal Revenue Code conformity.
• There's a lot of assumptions in all of these calculations and projections.
• It was already in the revenue number.
• A senior citizen, in my calculation, an average senior citizen is...

Summary: The House Revenue and Taxation Committee met on January 29, 2026, to consider RS 33142, an Internal Revenue Code conformity proposal presented by Rep. Jeff Ehlers. Ehlers said the revised RS would preserve individual tax relief retroactive to 2025, update Idaho’s treatment of research and experimentation expenses by allowing full expensing for new costs starting in 2025 while phasing out prior-year amortization, continue Idaho’s nonconformity with bonus depreciation, and prevent double-dipping by disallowing the same expenses for both deductions and certain credits. He said the changes were intended to spread corporate costs over time and reduce the immediate budget impact. Members focused heavily on the fiscal note and the range of outside estimates. Rep. Gannon cited estimates from ATI, the Tax Foundation, and the Idaho Center for Fiscal Policy that were higher than the sponsor’s figure, and asked whether the fiscal note should reflect a broader range. Ehlers responded that the committee must choose a single fiscal note number and defended the $155 million estimate as a reasonable middle-ground projection, explaining differences in how various analysts treated R&E timing and other assumptions. He also said nonconformity would reduce tax benefits for individuals, including seniors and working taxpayers, and noted the corporate impact was much smaller than the individual-side relief. Several members asked for more context on how the bill’s fiscal impact would fit into the broader state budget picture, and Ehlers said he would work with JFAC co-chairs and provide more information later. Rep. Birch supported introduction but emphasized the uncertainty around the fiscal note, while Rep. Monks argued that fiscal notes are attachments prepared by the bill sponsor and should not determine whether a bill is introduced. The committee voted to introduce RS 33142, and the motion carried with Rep. Gannon recorded as opposed. The committee then adjourned and announced it would not meet the following day.

Transcript Highlights:

• House Bill 2153 conforms state statute to the Internal Revenue Code as of January 1, 2026, including
• Gras, on top of the Department of Revenue, what the Department of Revenue did with the assumption of
• So, again, the Department of Revenue didn't do anything wrong. Let me just say that.
• The Department of Revenue always assumes that. Please explain above the line. Right.
• the Department of Revenue, I'm not aware that it's ever happened.

Keywords: 1182, all

Summary: The caucus focused on HB 2153, a tax conformity bill that would align Arizona statute with the Internal Revenue Code as of January 1, 2026, including retroactive provisions affecting tax year 2025. Staff explained that the bill excludes three federal provisions from H.R. 1: the additional $6,000 senior deduction, the increase in the state and local tax (SALT) deduction to $40,000, and the deduction for interest on new car loans. It also adds several Arizona-specific provisions, including a $6,000 deduction for certain retirement distributions for taxpayers age 65 or older, a $6,000 deduction for Roth IRA contributions, an increase in the dependent tax credit from $100 to $125, and a deduction for child and dependent care expenses above the federal credit. JLBC’s fiscal note was cited as a negative $441.3 million in year one, declining over the next two years. Chairman Livingston and other Republican members argued the bill was needed immediately because the Department of Revenue had already issued tentative forms assuming full conformity, creating confusion for taxpayers and businesses. They said the state needed a signed law as soon as possible to avoid amended returns, inconsistent filing rules, and uncertainty for small businesses. Livingston emphasized that the bill was intended to protect small businesses from having to keep two sets of books and said he was advising taxpayers not to file until the issue was resolved. Members also discussed the practical impact on small businesses, citing testimony that Arizona has about 700,000 small businesses employing well over a million people. Several exchanges clarified the difference between the governor’s November direction to the Department of Revenue and the bill before the committee. Staff explained that DOR normally assumes “simple conformity” and that the governor’s directive attempted to add “below-the-line” deductions through a worksheet, but that those items still require statutory authorization. Members said the governor’s action was confusing and characterized it as a press release rather than binding law. The committee also discussed the child care provisions, describing them as a federal-style deduction Arizona has not previously adopted and as one of the main new benefits in the bill. The caucus ended without a vote, and members were told the floor would begin at 10 a.m.

Transcript Highlights:

• That's not revenue of the Commonwealth.
• count and other types of revenue do not.
• the rise in revenue versus wage growth.
• Number one, this is revenue, unmistakably. We collect it, we spend it.
• And when we say that revenue isn't revenue, we have a serious problem.

Keywords: 995, all

Summary: The Senate took up a higher education capital bond bill, House 4769, and considered a long series of amendments focused largely on campus facilities, housing, and related policy issues. Many amendments were adopted, including funding or project language for MassBay Community College HVAC and window replacement, Massachusetts Maritime Academy, Springfield Technical Community College, Cape Cod Community College nursing/allied health expansion and housing-related land use, Worcester State University and Quinsigamond Community College, Middlesex Community College, Salem State’s Sullivan Building, Roxbury Community College’s Center for Economic and Social Justice, UMass Boston’s Manning College of Nursing and Health Sciences, and several Massachusetts State College Building Authority updates. Some amendments were rejected, including proposals on a sustainable hand hygiene incentive program, unlocking housing on surplus land, a Senator Bill Owen Center designation, Urban College of Boston, and a board membership change. A number of amendments were held or withdrawn during the process. A major debate centered on an amendment by Senator Tarr to dedicate $300 million of surtax revenue to K-12 education, framed as a response to Chapter 70 funding concerns and the need to modernize school aid. Supporters argued that local districts face rising costs and that the state should set aside fair share revenue for school funding and future school building investments. Opponents said the bill was the wrong vehicle and noted the Commonwealth already dedicates substantial surtax revenue to K-12 programs. The amendment was defeated by roll call. Tarr also offered amendments on a safety valve for surtax revenue declines, equity analysis of surtax allocations, bond covenant requirements, and Chapter 62F taxpayer protections; those were not adopted. The Senate also adopted a separate amendment on AP credit policies at public higher education institutions, though the transcript reflects some procedural confusion around that vote. After completing amendments, the Senate ordered the bill to a third reading and then passed it to be engrossed by a recorded vote of 38-0. Senators then adopted several extension orders giving committees additional time to report on pending bills, including Environment and Natural Resources and Municipalities and Regional Government. The chamber also adopted an order to meet again the following Monday at 11 a.m. The session concluded with a unanimous memorial adjournment in honor of Bolton Police Chief Luke Hamburger, followed by a brief statement recognizing Rare Disease Day and the challenges faced by patients seeking diagnosis and treatment.

Transcript Highlights:

• That's not revenue of the Commonwealth.
• count and other types of revenue do not.
• Because the calculations, you measure the rise in revenue versus wage growth.
• And when we say that revenue isn't revenue, we have a serious problem.
• Tarr, stabilization fund protections for surtax revenues.

Keywords: 1212, all

Transcript Highlights:

• AND WE ALSO DO CONDUCT ADJUSTMENTS FOR LOCALLY COLLECTED REVENUE.
• FOR EVERY FTE THAT WE CALCULATE WE ARE WEIGHING THEM.
• AND WE CALCULATE THE TOTAL FUNDING NEEDED FOR EACH OF THE 56 DISTRICTS.
• WE BACK OUT TUITION REVENUE AND WE ARRIVE AT THE STATE FUNDING NEED.
• CAN WE CALCULATE TWO IMPORTANT THINGS.

Keywords: 999, senate, all

Transcript Highlights:

• with a population of less than 10,000, the revenue growth is limited to 1%.”
• facilities being removed from the levy growth calculation.
• of the Department of Revenue and discussions thus far.
• of the Department of Revenue and discussions thus far.
• Lastly, I would just note that as the CCA revenue, Climate Commitment Act revenue, declines, those tribal

Summary: House Finance met on Friday, January 23rd, and heard three bills. On House Bill 2194, staff explained that the bill would allow a county and a city within that county to both impose the cultural access sales and use tax at the same time, with the county providing a credit for the city tax. Representative Parsley said the change would let more jurisdictions support cultural, arts, science, and school-related programs. Olympia and Thurston County officials testified in support, describing grant funding for cultural organizations, free programming, and school access benefits; a committee member raised a question about how the change could affect county bond obligations. The committee then heard House Bill 2089, which would narrow a B&O tax preference for first mortgage interest by removing the requirement that a financial institution be located in 10 or more states, and direct the resulting revenue to the wildfire response, forest restoration, and community resilience account. Staff said the bill would raise significant revenue and have implementation costs for the Department of Revenue. Representative Scott said the bill was intended to restore wildfire funding and limit the preference to community banks, while opponents from the Washington Bankers Association and Community Bankers of Washington warned the bill could harm community banks and mortgage lending if not drafted carefully. The Department of Natural Resources and a public employee representative supported restoring wildfire preparedness funding. Finally, the committee heard a proposed third substitute for House Bill 1960, which would replace property taxation for new or repowered large renewable energy facilities and battery storage systems with a state and local excise tax structure, while also creating a local investment distribution account and a tribal capacity grant program. Staff and the sponsor described the bill as a way to reduce property tax shifts onto nearby taxpayers and provide more stable, predictable revenue for local governments and tribes. County officials, assessors, treasurers, and some clean energy and conservation groups supported the concept but asked for clearer definitions, payment timing, and rate adjustments; utilities and renewable developers said they supported the goal but opposed the bill as drafted because of concerns about the rates and the treatment of centrally assessed utilities. No votes were taken, and the committee adjourned after closing the hearings on all three bills.

Transcript Highlights:

• That's not revenue of the Commonwealth.
• count and other types of revenue do not.
• the rise in revenue versus wage growth.
• And when we say that revenue isn't revenue, we have a serious problem.
• Tarr, stabilization fund protections for surtax revenues.

Summary: The Senate considered and amended House 4769, a major higher education bond bill titled an act to build resilient infrastructure to generate higher education transformation (the BRIGHT Act). Members adopted a series of amendments funding deferred maintenance and capital projects at public colleges and universities, including MassBay Community College (HVAC and window replacement), Massachusetts Maritime Academy, Springfield Technical Community College, Cape Cod Community College, Worcester State University, Quinsigamond Community College, Roxbury Community College, UMass Boston, Middlesex Community College, Salem State University, Berkshire Community College, and MCLA. Several amendments were rejected, including proposals related to a sustainable hand hygiene program, board membership, and some other institutional or policy changes, while a number of amendments were held or withdrawn. The bill ultimately advanced through third reading and was passed to be engrossed by a unanimous roll call, with senators emphasizing the need to address deferred maintenance and modernize higher education facilities statewide. A major floor debate centered on an amendment by Senator Tarr to dedicate $300 million of Fair Share surtax revenue to K-12 education. Supporters argued that many school districts face rising costs, minimum aid, and an outdated Chapter 70 formula, and that the amendment would create a marker for future reform. Opponents said the Commonwealth already dedicates substantial surtax and other funding to K-12 education and that the amendment was not the right vehicle. After a roll call, the amendment was rejected. The Senate also rejected several Tarr amendments on fiscal safeguards, equity analysis, bond covenant requirements, and Chapter 62F taxpayer protections, while adopting others related to UMass Gloucester Marine Station housing and coastal erosion work, and to modernizing Massachusetts State College Building Authority bonding and office-location rules. The chamber also adopted a motion to adjourn in memory of Bolton Police Chief Luke Hamburger, who was remembered for his service, leadership, and community ties. Before adjournment, senators took brief statements on other issues, including a call for greater awareness of rare diseases and the need for improved access to diagnosis and treatment. The Senate also approved extension orders giving committees additional time to report on pending environmental and municipal bills, and it set its next meeting for Monday at 11:00 a.m.

Transcript Highlights:

• The gross gaming revenue is the revenue, all the payouts, okay, whether it's table games or the machine
• The gross gaming revenue is the revenue, all the payouts, okay, whether it's table games or the machine
• The gross gaming revenue is the revenue, all the payouts, okay, whether it's table games or the machine
• The gross gaming revenue is the revenue, all the payouts, okay, whether it's table games or the machine
• </c> but then they said 75% of HHR Revenue but then they said 75% of HHR Revenue going<00:12:32.360><

Keywords: 1189, house, all

Summary: The public hearing opened on HB 728-FN, which would authorize video lottery terminals at charity gaming facilities and repeal historic horse racing licensing. Representative Om explained that the bill would convert the current historic horse racing terminals into true video lottery terminals/slot machines and change the revenue split, reducing the operator share from 75% to 70% while increasing the state share from 25% to 30%. He also noted the bill would increase the amount going to charities and other state beneficiaries. Former State Rep. Pat Brammy, who had served on the Charitable Gaming Study Commission, testified in support of the bill’s basic structure. He said a consultant’s report found historic racing machines cost facilities 12% to 18% more to operate because of totalizer and track-related fees, and that slot machines would be cheaper because there are more manufacturers and more competition. He argued that although the operator share drops by 5%, facilities could still benefit from lower operating costs, and he said the commission concluded that moving to slot machines would increase revenues to facilities, charities, and the state. He also said the bill would create a more stable stream of funding for problem gambling, since the current HHR “breakage” funding mechanism is limited and dependent on a single vendor. Brammy also discussed the commission’s concerns about market concentration in HHR machines, saying the commission found the market was dominated by only a few manufacturers and recommended legislation to address that issue under Article 83 of the state constitution. He interpreted the bill as allowing a phase-in of slot machines upon passage, with the remaining HHR provisions phasing out by January 1, 2028, and said facilities would likely transition as leases expire. Committee members asked about HHR contracts, machine programming, testing, and whether removing HHR would reduce competition; Brammy said he believed leases were likely short-term, machines are tested by a lab, and the legislature could decide whether the change is appropriate. No vote or final action was taken at the hearing.

Transcript Highlights:

• Revenue. Revenue.
• Section four talks about the calculation of deposits of revenues into this new account.
• </c> in state and local tax revenue. in state and local tax revenue.
• revenue.
• c> revenue.

Keywords: 1187, senate, all

Transcript Highlights:

• our revenues are projected.
• So now, looking at the revenue forecast based on the different revenue categories, these are the six
• Those strong revenues will...
• And we are seeing a revenue decrease. Part of that is because we've had... A revenue decrease.
• forecast, or the... ...component of the general revenue forecast or the general revenue fund.

Keywords: 989, all

Summary: The committee was convened to review Idaho’s economic outlook and general fund revenue projections for fiscal years 2025-2028, with members instructed to submit “homework” revenue estimates by noon the next day so staff could compile committee averages and medians for deliberations and a final recommendation to JFAC. Opening remarks emphasized the committee’s constitutional charge, the use of the binder materials and online packet, and that the committee would meet again the next day to discuss and vote on the revenue projection recommendation. Staff and agency presentations focused on the state’s budget and revenue picture. Legislative Services Office staff described structural imbalance concerns, noting that statutory spending changes and earmarked sales tax distributions have crowded out flexibility, while cash reserves remain substantial. The Division of Financial Management’s economist explained the official revenue forecast, including revised treatment of sales tax and tax relief fund accruals, and said the forecast largely held steady overall even as corporate and individual income tax categories shifted. She also discussed the impact of the federal One Big Beautiful Bill Act on SALT deductions and said recent corporate collections had rebounded sharply, suggesting timing and behavior changes rather than a broad economic downturn. Outside economists and labor experts painted a generally stable to positive economic picture. Zions Bank’s economist said the Federal Reserve is likely near the end of major rate cuts, long-term rates and mortgage rates remain elevated, tariffs have risen sharply, but inflation has not yet shown broad tariff-driven acceleration; he described the national labor market as slowing but not contracting and said 2026 could be a rebuilding year. The Idaho Department of Labor reported that Idaho’s unemployment remains historically low, job growth is steady, wage growth is moderating from overheated pandemic-era levels, and the state’s labor market remains healthier and more balanced than the national picture. The committee also heard from Idaho Power’s economist, who began a presentation on broader economic conditions and utility-related demand trends before the transcript ended.

Transcript Highlights:

• Tools like ultrasound are more accurate in calculating this gestational age.
• The 340B revenue hospitals receive doesn't just come out nowhere.
• When you have an entity with revenue, how they spend it is up to them.
• And where I so... ...with revenue, how they spend it is up to them.
• These revenues are out there and they're making a bunch of money for pharmacies.

Summary: The Senate Health and Long-Term Care Committee held a hearing on several bills. SB 5904 would prohibit non-human entities from using nursing titles; the sponsor and nursing groups said it is meant to increase transparency around AI and ensure patients know when they are interacting with a real nurse. SB 5915 would change Health Technology Assessment Program review criteria and timelines, with supporters arguing it would better account for Medicare coverage and national guidelines, especially for rare and life-threatening conditions. SB 6025 would update the definition of fetal death to allow gestational age to be determined by the best clinically accurate method rather than last menstrual period, and medical professionals and the sponsor said this would reduce emotional, financial, and legal burdens on grieving families. SB 5933 would require near real-time sharing of overdose data into ODMAP; public health, local government, and recovery advocates said it would improve overdose response, while one witness asked that poison center data be included and clarified separately. SB 5990 would allow APRNs and physician assistants to serve as local health officers in counties under 100,000 population; rural county officials supported the added flexibility, while public health groups and naturopathic physicians raised concerns about qualifications and asked that naturopathic doctors be included as well. SB 5981 would restrict drug manufacturers from limiting 340B drug access through contract pharmacies or requiring data as a condition of discounts; safety-net hospitals, community health centers, pharmacies, and patients said it protects access and reinvestment in care, while manufacturers, employer groups, and industry representatives argued it increases costs, lacks transparency, and may not ensure savings reach patients. No votes or final committee actions were taken in the transcript; each bill was heard and testimony was closed. Sign-in counts were reported for several bills, including strong pro support for SB 5904, SB 5915, SB 5933, and SB 5981, and mixed or substantial opposition on SB 6025 and SB 5990.

Transcript Highlights:

• Despite the increase in revenues, we are Despite the increase in revenues, we are forecasting a budget
• serious revenue downturn, a double-digit downturn in our revenues.
• So much of our revenue, as Ms.
• The level of revenues.
• I mean, I guess we lose the tax revenue. All those jobs lost created tax revenue.

Keywords: 987, senate, all

Transcript Highlights:

• That revenue can be used in that corridor or elsewhere.
• So first and foremost, we're not facing an EV-generated revenue issue.
• This slide shows some of the expenses and revenues for the program.
• You can see under this scenario RUC revenue goes up dramatically while the annual fee revenue goes way
• I'll go into the highway use fee calculations in a later slide.

Summary: The Assembly Transportation Committee first took up three highway naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar with 11 aye votes and no no votes, then adjourned the bill-hearing portion. Members also recognized committee science fellow AJ Mendeola for his service, noting his contributions to bill analysis and staff support. The committee then held an informational hearing on alternatives to the gas tax, focused on the projected decline in fuel-tax revenue and the need for a more sustainable transportation funding model. The chair and invited experts described how inflation, improved fuel efficiency, and growth in electric and other alternative-fuel vehicles are eroding gas-tax revenues. Presenters from the National Conference of State Legislatures and the University of California discussed state options such as higher or indexed gas taxes, EV registration fees, road usage charges, delivery fees, public EV charging fees, transportation network company fees, and managed lanes, emphasizing tradeoffs among revenue adequacy, fairness, administrative cost, and public acceptance. Committee members raised concerns that mileage-based fees or EV fees could function as new taxes on commuters and lower-income drivers, especially if the gas tax is not repealed. Presenters responded that road usage charges are generally intended as replacements for the gas tax, not additions, and argued that mileage-based systems better preserve the user-pays principle while being less tied to vehicle fuel efficiency. They also noted that flat EV registration fees are easy to administer but can be less equitable because they are not linked to actual road use. Officials from Hawaii, Utah, and Oregon described their state programs and policy choices. Hawaii said its new road usage charge began July 1, 2025, for EVs, offers a choice between a per-mile charge and a flat annual fee through 2028, and will transition to mandatory EV participation before expanding to all light-duty vehicles by 2033. Utah described its voluntary EV road usage charge program, quarterly reporting, privacy protections, and legislative scenarios for removing the cap or making participation mandatory. Oregon outlined its constitutional cost-responsibility framework and broader transportation funding challenges, including reliance on user fees and limited use of general-fund support.

Transcript Highlights:

• In 2023-2024, general revenue had over $48 billion of revenue that went in.
• General revenue had over $48 billion of revenue that went into the fund.
• The revenues get complicated.
• You know, the revenues get complicated because it's not just tax revenue; you get fees, you get grants
• So while there's growth in revenue, my understanding is that when we calculate the appropriation side

Summary: The Senate Committee on Finance and Tax convened with a quorum present, heard an introductory presentation of committee staff, and then received a staff briefing from Azar Khan on Florida’s state tax structure and revenue outlook. The presentation covered fiscal year 2023-2024 revenues, noting more than $127 billion in total state revenue, with general revenue exceeding $48 billion and sales and use tax making up the largest share. It also compared Florida’s tax burden to other states, highlighted Florida’s low per-capita revenue ranking and strong business formation numbers, and reviewed major and minor revenue sources, tax rates, and the revenue estimating conference process. Members asked about what drives revenue growth, including population, tourism, construction, and auto sales, and about Florida’s regressivity, corporate income tax participation, and investment earnings on state balances. Khan said the state’s revenue picture remains positive and stable, but that future growth is slower than during the COVID-era spike; he also explained that some negative forecast changes were tied to legislative actions such as the insurance premium tax credit, while others reflected lower tobacco consumption and severance activity. He noted that revenue and spending forecasts are separate and that budget-side growth is driving concerns raised in other state economic projections. The committee also discussed possible tax package ideas for the upcoming session, including tax holidays and homeowner relief, but no specific proposals were acted on. The chair announced the committee would not meet the following week and that the next meeting would be in week three of February. The meeting concluded with no objections to a motion to adjourn.

Transcript Highlights:

• There's also various revenue bonds and interfund loans.
• So, they have to calculate the amount of the excess increment.
• calculation of excess increment very<00:42:28.040><c> complicated.
• ><c> excess</c><00:42:49.680><c> increment</c> calculated so, and excess increment calculated so, and
• Those seven lines would be automatically calculated for you.

Keywords: 1187, senate, all

Transcript Highlights:

• As the revenue guy, I'm a little nervous.
• We're revenue guy, I'm a little nervous.
• Um, we only and we get our tax revenue.
• So, one of the things I noted looking at revenues, restricted revenues, and it's not very well explained
• where the revenues are coming from and why.

Keywords: 928, house, all

Summary: The Fiscal Committee met on December 19, with Senators Long and Lang serving as replacements. The committee approved the November 21 minutes and adopted the consent calendar after removing two Department of Health and Human Services items for separate discussion. It then took up an HHS request involving nursing facility rates, where Nathan White explained that $2.2 million would be transferred from a long-term care Medicaid eligibility contract to the nursing facilities budget. He said the funds would offset an otherwise projected 3.9% average rate decrease and bring the overall average change to zero for the next six months, with rates reset again in July under state law. Members asked about the budget adjustment factor, bed counts, and whether additional funds could raise rates further; White said the factor is statutory, capped at 28.76%, and that more money would lower the factor and increase rates. The committee also corrected a date in the request from February 1, 2025 to February 1, 2026, and approved the item. The committee next approved another HHS item related to rural health transformation grants. Members confirmed the request covered the full amount applied for this biennium, and asked about the technology component. HHS said the grant is not solely about AI, but about broader technology improvements such as electronic medical records, back-end systems, and tools to improve access and sustainability in underserved areas. The committee approved that item as well. The Judicial Council then requested funds for contract attorneys providing indigent defense on a fixed-fee basis. The council said current funds had already been exhausted and that the new appropriation would be used immediately. Members questioned the size of the request and the number of people awaiting counsel; the council reported about 150 incarcerated people and about 300 non-incarcerated people waiting for counsel, more than in recent years. It attributed the increase to competition for attorneys, public defender offices closing intake in some locations because of caseload limits, and broader case and court-system changes. One member raised constitutional concerns about delays in counsel for incarcerated defendants. The committee ultimately amended the request downward to $1 million, approved it, and then approved a motion to place several annual financial reports on file and release them to the public when available. The committee also discussed dashboard reporting from HHS, asking for more detail on community mental health center caseloads and budget-reduction information, and HHS agreed to provide more useful monthly detail.

Transcript Highlights:

• Senate Bill 1453 seeks to amend the definition of current debt for purposes of calculating an interest
• This bill does not prevent that; it is just part of the calculation of the voter approval rate.
• A couple of odd calculations inside the plan.
• look at the revenue.
• And obviously this is not in that calculation. It falls outside of it.

Bills: SB32, SB464, SB996, SB1163, SB1173, SB1277, SB1452, SB1453, SB1548, SB1882, SB1883, SB2016

Keywords: ad valorem taxation, tax exemption, franchise tax credit, income production, personal property, SB 464, school buffer zone, tobacco retailer, vape shop, e-cigarette, vaping, nicotine, tobacco products, retail permit, comptroller, Class A misdemeanor, school proximity, youth access, public school, private school

Summary: The Senate Local Government Committee heard several bills by Senator Bettencourt focused on property tax and local government accountability. SB 32 would provide about $700 million in business tax relief by raising the business personal property exemption from $2,500 to $25,000 and continuing a 20% franchise tax credit for inventory taxes paid. Witnesses from NFIB, the Texas Retailers Association, and Texas Realtors supported the bill, saying business personal property and inventory taxes are burdensome and especially hard on small businesses. After no opposition testimony, SB 32 was left pending. The committee also heard SB 1453, which would change how interest and sinking tax rates are calculated by using only the minimum debt service required under bond schedules, while still allowing a higher rate with a 60% governing body vote and a public explanation. A witness from the Texas Taxpayers and Research Association supported the bill as a way to keep debt rates from rising as property values increase and to preserve tax relief. The bill was left pending after testimony. SB 1883 would tighten rules on local impact fees by requiring 60 days of public availability for capital improvement plans and land use assumptions, raising the approval threshold for adopting impact fees from a simple majority to two-thirds, limiting how often fees can be increased, and expanding notice requirements. Builders and developers testified in support, arguing that impact fees are often poorly reviewed, lack accountability, and are passed on to homebuyers, worsening housing affordability. Committee members discussed adding audit provisions and questioned the lack of city testimony. The bill was left pending with subcommittee action. SB 1452 would require a voter election to decide whether a municipal management district continues to exist, with dissolution if voters reject it; supporters said it would add accountability, while others noted some districts provide essential services and infrastructure. The committee heard testimony from district representatives and builders, then left SB 1452 pending before recessing.

Transcript Highlights:

• Think of it like a calculator for words or language and ideas.
• Bad formulas or bad data put into a calculator will return bad results.
• When you talk about revenue and revenue shortfalls and we're having a double-dipping of tax-free, I just
• to find the partnership of the calculation of the partnership's tax liability.
• traditional revenues.

Summary: The Senate met with a quorum present, opened with prayer and the Pledge of Allegiance, and approved the previous day’s journal. Early in the day, members received committee reports and messages from the Governor and House, including the transmission of several bills and resolutions. The chamber also advanced a number of measures to later orders of business, and several bills were held on the calendar or referred to committees for further action or possible amendment. The Senate then considered and passed a series of bills on third reading. Among them were Senate Bill 1227 on generative AI in education, which passed after debate over teacher control, local control, and parent transparency; House Bill 603 on camping at the Capitol Mall, which passed after debate over free speech, public safety, and sanitation; House Bill 688 updating airbag and counterfeit airbag laws; House Bill 645 creating a voluntary portable benefits framework for independent contractors; House Bill 738 allowing LLCs to use a commercial registered agent’s address; House Bill 521 correcting background-check statutory placement; House Bill 615 clarifying disturbing-the-peace protections for houses of worship; House Bill 695 correcting a fee reference from possession to restitution; House Bill 568 repealing obsolete Department of Lands provisions; House Bill 774 repealing outdated fish and game penalty language; House Bill 762 revising charter school admissions preferences for foster and military children; House Bill 661 extending solid-waste competition rules to counties; House Bill 733 adopting a partnership audit procedure aligned with federal law; House Bill 749 revising city annexation rules to address hardship and property-rights concerns; House Bill 662 expanding milk testing provisions and Department of Agriculture dispute resolution; House Bill 664 eliminating differential speed limits for heavy trucks; and House Bill 716 revising transportation-funding distributions and increasing bridge inspection funding. Most of these measures passed by substantial margins, often using the same roll-call vote by unanimous consent, and titles were approved without correction. One bill, House Bill 684, was sent to the 14th order for possible amendment. The Senate also received committee reports on additional bills and gubernatorial appointments, then moved into the Committee of the Whole, where it began reviewing several measures and adopted amendments to Senate Bill 1297 and Senate Bills 1352, 1353, and 1354, with motions to report those bills back as amended without recommendation.

Transcript Highlights:

• But I didn't calculate it on my calculator, just doing that in my head. Sorry.
• But I didn't calculate it on my calculator. Just doing that in my head. Sorry.
• Calculated on my calculator. Just doing that in my head. Sorry.
• Any of just revenues beyond base revenues is... ...revenue forecast?
• Any of just revenues beyond base revenues?

Keywords: 1182, all

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.