Transcript Highlights:

• When a system gets a D or an F, the bill says that the system is operationally unacceptable and allows
• to buy safe water from a better run system so families are not left paying. ...or require the system
• But so these water systems that fail, But so in these water systems that fail, is it the water or is
• it the system itself?
• done by water systems.

Committee: House Conservation and Natural Resources

Keywords: 959, house, all

Transcript Highlights:

• So, a system of care.
• , services and supports, and system infrastructure.
• A system of care with a capital S really means that we have a very well-coordinated system that covers
• The system today is failing families.
• And I come from a system of second-generation foster care.

Summary: The committee began with a work session on recommendations from the Children and Youth Behavioral Health Work Group. Tisha Kirshbaum of the Health Care Authority described the Washington Thriving Strategic Plan, a prenatal-to-25 system-of-care framework meant to reduce fragmentation, improve coordination across multiple state agencies, and expand early, community-based behavioral health supports. Members asked about duplication among agencies, simplification of the system, and upstream services such as community health workers, school-based supports, and crisis access. The committee then heard House Bill 2429, which would direct the governor and state agencies to align with the Washington Thriving plan, create an executive coordination officer and leadership council, extend the work group, and require broader alignment by state, tribal, local, and nonprofit entities. The bill received strong support from the governor’s office, the Health Care Authority, parents, youth, providers, and advocates, while a few testifiers raised concerns about government overreach, cost, or the need to address non-psychiatric causes of distress. No vote was taken during the hearing. The committee then heard House Bill 2364, which renames and expands the Legislative Executive Work First Poverty Reduction Oversight Task Force into the Legislative Executive Economic Justice and Well-Being Task Force and updates the related advisory council to align with the state’s 10-year plan to dismantle poverty. Staff and the prime sponsor said the bill reflects the evolution of the poverty-reduction effort and adds agencies such as the Department of Revenue, Health Care Authority, and Workforce Training and Education Coordinating Board. Testimony from DSHS and advocates was uniformly supportive, emphasizing bipartisan collaboration and the need to update statute to match current work. Next, the committee heard House Bill 2171 on supporting foster youth. The bill would create an endangered foster youth alert system, require county rapid-response protocols, establish a foster youth empowerment account, create an oversight board through the Ombuds office, and expand training for foster parents and child welfare workers. The prime sponsor and several advocates described the bill as a response to lived experience and a way to improve accountability and long-term support. DCYF said it supports the intent but raised legal and cost concerns, and some youth advocates warned that public alerts could increase risk or trauma for youth who run away from unsafe placements. The hearing then moved to House Bill 2314, which would create a pilot allowing certain community-based clients with developmental disabilities to receive dental care at residential habilitation centers. Supporters said the bill would use existing dental capacity to address severe access gaps and long waits in the community, while opponents from disability advocacy groups argued it would pull people back into institutional settings instead of building community-based dental capacity. Testimony on the bill was mixed, and no final committee action was taken in the transcript.

Transcript Highlights:

• The original idea for the Florida College System, when it was the community college system, is that nobody
• The original idea for the Florida College System, when it was the community college system, is that nobody
• That will guide the system over the next five years.
• to join our university system.
• Institutions have stepped up in the Florida College System to join our university system in a bigger

Summary: The Higher Education Budget Subcommittee met for an introductory overview of the higher education programs under its jurisdiction. After roll call and member introductions, Chair Busatta outlined that the subcommittee oversees programs in the Department of Education and the State University System, including vocational rehabilitation, blind services, private postsecondary licensure, student financial aid, career and adult education, the Florida College System, and the Board of Governors. The chair and staff also noted that these areas represent roughly $9 billion in current-year funding. Officials from the Department of Education presented on several programs. Vocational Rehabilitation Director Kelly Rogers described services for adults and youth with disabilities, including pre-employment transition services, job coaching, assistive technology, and employer support; she said the program served more than 55,000 people last year, has no wait list, and reported a return of $7.61 to the economy for every $1 invested. Division of Blind Services Director Robert Doyle explained services from birth through older adulthood, including early intervention, school-age support, vocational rehabilitation, independent living, the Business Enterprise Program for blind vendors, and the Braille and Talking Book Library; he said the division serves about 12,000 people annually and also has no wait list, though some community rehab providers may have one. Tiffany Hurst of the Commission for Independent Education described licensure and consumer protection for independent postsecondary institutions, reporting oversight of about 1,100 institutions and 721 non-degree schools, along with enforcement actions against unlicensed operators. Sean Haskin of Student Financial Assistance reviewed 22 scholarship and grant programs totaling about $1 billion for more than 200,000 students, including Bright Futures, Benacquisto, need-based grants, EASE, EASE Plus, veterans’ scholarships, dual enrollment reimbursement, first responder scholarships, and the Ocoee and Rosewood scholarships. Members asked about surplus funds, marketing, Bright Futures eligibility requirements, and whether EASE awards had changed; Haskin said any unused funds are reverted to the Legislature, that the department markets through schools and the Florida Lottery, and that EASE remained at $3,500 per FTE for the last two fiscal years. Several members raised concerns that students and parents may not learn about aid programs early enough, especially in economically disadvantaged communities. Chancellor Kevin O’Farrell then presented on Career and Adult Education, highlighting record participation in career and technical education, adult education, and apprenticeship. He said about 800,000 secondary students and 480,000 postsecondary students are in CTE, adult education serves about 183,000 learners, and apprenticeship/pre-apprenticeship programs include more than 22,000 participants. He also described the workforce development fund, Perkins, WIOA Title II, the Pathways to Career Opportunities Grant, workforce capitalization grants, CAPE performance funding, and the Pipeline nursing initiative, noting strong NCLEX outcomes and expanded outreach through the Get There, Your Way, Future of Work Florida, and Zello platforms. Kathy Hebda began the Florida College System presentation by emphasizing open access, workforce preparation, statewide reach, and strong enrollment and completion growth, including more than 672,000 students, over 131,000 degrees and certificates, and significant dual enrollment savings for students and families.

Transcript Highlights:

• The formal child welfare system.
• These large systems, you know, in these large systems, foster youth are a very small population.
• This is our main method of measuring performance within the child welfare system. system.
• Creating the level of care system.
• and the child welfare system.

Keywords: 988, house, all

Transcript Highlights:

• system in the nation.
• I'm talking about system-wide. Sir, are you talking system-wide?
• Lenz on the system-wide.
• , our K-12 education system.
• for the system.

Summary: The joint Assembly Higher Education and Budget Subcommittee hearing focused on the future of the California State University system, with opening remarks emphasizing CSU’s major role in California’s economy, workforce, and degree production. Chairs and members said the hearing was intended to inform 2026 budget decisions and to examine three main issues: declining enrollment at some campuses, cost controls and possible consolidation, and oversight of recent state investments at campuses such as Humboldt and Sonoma. The meeting was briefly delayed by microphone and sound problems before reconvening. The first panel featured CSU Academic Senate Chair Dr. Elizabeth Boyd and Cal State Student Association Vice President Katie Karam. Boyd urged the Legislature to protect academic freedom, strengthen faculty governance, provide stable ongoing funding, end unfunded mandates, support student food and housing security, fund flexible course schedules, improve transfer systems such as ASSIST, avoid over-centralizing academic programs, protect immigrant students, and expand intersegmental collaboration. Karam said students are feeling the effects of budget shortfalls through fewer course sections, reduced advising and services, longer time to degree, and tuition pressure, and she called for transparency, meaningful student involvement in budget decisions, and sustained state investment rather than cuts that harm the student experience. The second panel covered enrollment management and included CSU Chancellor’s Office and campus administrators from Chico State, Cal State L.A., and San Diego State. Dr. Delcy Perez said CSU Forward and the new systemwide enrollment plan are aimed at expanding access, aligning programs with workforce needs, and increasing resident enrollment; she reported systemwide enrollment gains and strong application numbers, including a direct-admissions pilot that expanded from Riverside to more campuses. Campus representatives described local recruitment and retention strategies, including early outreach to high school students, community college partnerships, guaranteed admission programs, and expanded advising and student support. San Diego State highlighted record enrollment and high demand, while Cal State L.A. described efforts to recover from impaction and rebuild enrollment. Members pressed CSU officials on the accuracy of enrollment data, the gap between funded targets and actual enrollment, and the system’s reallocation formula. CSU staff explained that campuses below target will see a 5% ongoing reallocation beginning in 2026-27, with one-time reserve funding also being directed to campuses that can grow, and that fiscal health reviews have been completed for 21 of 22 campuses. Legislators also asked about turnaround plans required by the budget act; CSU said those plans are being developed and will be shared in the spring after campus consultation. No formal votes were taken.

Transcript Highlights:

• These large systems, you know, in these large systems, foster youth are a very small population.
• And our collective family support systems, how are we developing referral systems, infrastructure, and
• It's a bidirectional, two-way exchange with our current CalSAWS system, our state eligibility system,
• So we do rely on other systems.
• and the child welfare system.

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing on child welfare, foster care, child support, and related prevention efforts. The chair opened by emphasizing mandated reporting reform, foster care system improvements, and community-based prevention, and noted that no votes would be taken. Public testimony focused first on mandated reporting, where a lived-experience advocate and several organizations argued that the current system overreports families, especially Black, Native, and Latino families, causes trauma, and should be reformed through standardized training, clearer thresholds, and stronger community supports rather than more hotline referrals. Casey Family Programs cited data showing nearly 90% of reports are unsubstantiated, while CDSS said it is already forming a Mandated Reporting Advisory Committee, updating training, and exploring community pathways and possible changes to the list of mandated reporters. CWDA and SEIU supported training and alternative response concepts but stressed child safety, county capacity, funding, and the need for careful implementation and accountability. The committee then discussed a proposal to create a foster care multi-agency office within the California Health and Human Services Agency, led by a chief foster youth advocate with authority to coordinate across departments. Advocates said foster youth often need services from education, health, housing, and behavioral health systems that do not coordinate well, and argued that a central office with real authority could improve placement stability and access to services. CDSS responded that existing structures already provide coordination, including AB 2083 interagency teams, the Child Welfare Council, complex care steering committees, and the foster care ombudsperson, but said it was open to technical assistance. Members raised concerns about whether the new office would have enough authority and funding to avoid becoming another layer of bureaucracy, and the chair emphasized the need for real “teeth” and better interagency action. The final major topic was the continuation and expansion of Promise Neighborhoods. A community leader described strong early results from the state-funded neighborhoods, including improved kindergarten readiness, reduced chronic absenteeism, higher graduation rates, food access, housing supports, and mental health services, but warned that current funding sunsets in June 2025 and that a fiscal cliff could jeopardize staff and services. CDSS said the four funded neighborhoods have reported positive outcomes and valuable flexibility, but also noted challenges with one-time funding, student mental health, and long-term planning. Assemblymember Mia Bonta urged continued investment, saying the place-based model is difficult to rebuild once lost, and the chair asked LAO to help identify the minimum funding needed to preserve the existing infrastructure while evaluation results are still pending.

Transcript Highlights:

• , the state's accounting system and property inventory system, with what's in FleetWave.
• on the system?
• So things that happen between the two systems, FleetWave is a fleet management system.
• FLAIR is the state's accounting system and inventory system. FleetWave is very specific.
• And so those systems, when they compare the two data systems, they don't match, right?

Committee: Senate Governmental Oversight and Accountability

Summary: The Committee on Governmental Oversight and Accountability met for its first meeting of the session, took roll, and heard a presentation from Ken Plant of the Joint Administrative Procedures Committee on SB 108, the 2025 law overhauling Florida rulemaking. The presentation focused on new deadlines for agencies to begin and publish rules, limits on automatic sunset provisions, changes to emergency rule procedures, expanded public input on statements of estimated regulatory costs, a five-year review cycle for existing rules, and new licensing-reporting requirements. Members asked about the review timeline and emphasized the need to keep agencies accountable for meeting the new requirements. The committee then reviewed the Department of Management Services’ response to Auditor General Report 2025-1096 on fleet management. DMS said the audit found 10 issues, most of which it believes it has addressed, and described the statewide fleet system as tracking about 27,000 assets with limited staff. DMS highlighted two major improvement ideas that would require funding: an enterprise telematics system to automate vehicle data and improve tracking, and centralized fleet procurement to reduce duplication and save money. Members questioned the status of FleetWave implementation, missing vehicle records, integration with other state systems, and access controls for separated employees. DMS explained that FleetWave is fully implemented but still relies on manual data entry, that discrepancies with the state accounting system largely reflect mismatched or inconsistent entries, and that policies and procedures were updated after the audit. The department said it now works more closely with People First to deactivate access when employees leave. After discussion, no further business was raised, and the committee adjourned without objection.

Transcript Highlights:

• So we've done—I watched from the old STAR system to the implementation of the new data systems and the
• s funding system.
• How do we pull together more streamlined and unified application systems and reporting systems?
• We could pull together more streamlined and unified application systems and reporting systems.
• And we are working to rationalize our accountability system and our statewide system of support.

Summary: The joint hearing focused on coherence in California’s education planning and reporting systems, especially the Local Control and Accountability Plan (LCAP) and related grant plans. Committee chairs and members described widespread frustration with duplicative, lengthy, and sometimes conflicting reporting requirements, while emphasizing that the goal was not to reduce accountability but to make planning more useful, stable, and student-centered. State Superintendent Tony Thurmond also previewed the Governor’s education budget priorities, including expanded learning, community schools, universal transitional kindergarten, literacy supports, and concerns about the proposed Prop. 98 deferral. Panelists from the State Board of Education, Fresno County Superintendent of Schools, and the Legislative Analyst’s Office said the LCAP was intended to balance local flexibility with statewide transparency, but has become overloaded by repeated revisions and additional requirements. They argued for fewer core reporting elements, more stability over time, better alignment of planning cycles, and integrated systems that reduce duplication. Fresno County staff described a multi-year calendar and support tools that help districts manage timelines, but said these tools only ease the burden rather than solve the underlying problem. The LAO noted that some newer plans, such as expanded learning and transportation plans, are narrative-heavy and often less informative than separate reporting requirements. Local district leaders and county officials described the practical effects of the current system: staff time diverted from instruction, multiple portals and forms, audit risk aversion, and planning documents that can exceed 100 pages. Several superintendents said coherent systems work best when districts have clear priorities, stable governance, and aligned budgets, and when state requirements are predictable and tied to outcomes like literacy, attendance, and student achievement. The California Federation of Teachers added that coherence also depends on meaningful collaboration with educators, classified staff, parents, and communities. Committee members repeatedly asked whether the state should streamline reporting, create a uniform portal, or develop a more unified grant-reporting structure, and Thurmond said the department was piloting a simplified common form and was willing to work with the Legislature and districts on broader solutions.

Transcript Highlights:

• Also, we had to get staff fully trained on the PFL system being moved to the SDI system, so that took
• The way we see in IT these systems is you need proper caring and feeding of these systems.
• bring the UI on top of the system. ...to handle the workload, stabilize the system, and then bring the
• UI on top of the system.
• And is there different turnaround times between the online system versus the paper-based system?

Keywords: 988, house, all

Transcript Highlights:

• But another major system is METS, the Minnesota Eligibility Technology System.
• </c> Eligibility Technology System. Eligibility Technology System.
• . system. system.
• </c> and it's made worse by these systems. and it's made worse by these systems.
• </c> systems every day. systems every day.

Keywords: 1183, house

Transcript Highlights:

• I also want to thank the community college system, the UC system, and the CSU system for their continued
• The students who may not have received an acceptance letter from the UC system or from the CSU system
• The systems.
• And so us coming to a system-to-system level articulation, it is very difficult for me to put into words
• The CCC system serves over 2.2 million students and is one of the most diverse systems of higher education

Summary: The Joint Legislative Audit Committee held an oversight hearing on a state audit of California’s community college transfer process, with members and witnesses broadly agreeing that transfer pathways remain too complex and inconsistent. Opening remarks emphasized that community colleges serve a large, diverse, often first-generation and low-income student population, but only about one in five transfer-intending students move to a UC, CSU, or other university within four years. Members highlighted disparities by race, region, campus, and major, and pointed to the Associate Degree for Transfer, TAG, and Cal-GETC as helpful but incomplete tools because requirements still vary across campuses and systems. State Auditor’s Office staff said the audit found that while UC and CSU overall enroll substantial numbers of transfer students, individual campuses and high-demand programs often do not, especially in STEM fields. They described barriers including missing prerequisite courses, unclear information, limited counseling, and inconsistent articulation between campuses. The audit used a computer science example to show how different UC and CSU campuses require different courses for the same major. The audit issued 22 recommendations, with 10 fully implemented and four partially implemented; remaining work centers on articulation, counseling, data sharing, and better use of ASSIST. UC, CSU, and the Community Colleges each said they support transfer and are taking steps to improve it. UC cited a new public dashboard, data-sharing agreements, new transfer pathways, and an ADT pilot at UCLA, while saying campus capacity and program differences limit systemwide mandates. CSU pointed to its strategic plan goals, the Transfer Success Pathway program, direct admissions outreach, and efforts to expand ADT alignment and credit applicability, while acknowledging that many students never reach the application stage. Community Colleges emphasized that transfer reform is central to equity and baccalaureate access, and called for stronger common course numbering, broader ADT acceptance, and more student-centered articulation. Members pressed the systems on why more uniform requirements and better coordination have not been achieved, and on how to reduce barriers for placebound and working students.

Transcript Highlights:

• Two state-owned regional systems, two non-state-owned regional systems.
• A system with a lot of pipe would use closer to 80 to 100 years to depreciate, as opposed to a system
• by systems and ...been done by systems in the region in general, in particular by systems in North Dakota
• And systems can get a maximum of 100 points out of that entire ranking system.
• water out of the system.

Committee: Joint Water Topics Overview Committee

Keywords: 908, all

Transcript Highlights:

• </c> system. Thank you so much. system. Thank you so much.
• </c> of the cash bail system. of the cash bail system.
• And it is a systemic problem within our system.
• ,</c> system.
• And under that current system, system.

Committee: House Rules and Legislative Administration

Keywords: 1183, house

Transcript Highlights:

• No system can.
• I've often heard it said that the regional center system is a gap-filling system.
• those other systems.
• Things like system of care reform from the child welfare system.
• system.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on developmental services, rehabilitation, and related supports, with no votes taken. The first major topic was the Master Plan for Developmental Services. Administration officials described a year-long, community-driven process that included a steering committee, work groups, and statewide engagement sessions, and said the final draft would be released that Friday with about 170 recommendations. The Department of Developmental Services said the plan would inform future work, but did not offer a detailed implementation roadmap. The LAO said the plan contains significant policy and budget implications, may require statutory changes, and needs further analysis to turn recommendations into actionable proposals. Advocates and regional center representatives urged the Legislature and administration to avoid letting the plan sit on a shelf, called for prioritization and ongoing stakeholder oversight, and emphasized the need to address equity, workforce, service coordination, and cross-system collaboration. The chair said he wanted to work with the LAO on trailer bill language and future reporting to create a clearer path forward. The second topic was the Office of Employment First and competitive integrated employment. Administration witnesses said California has ended subminimum wage under SB 639, but that moving people into competitive integrated employment remains a major priority. They described existing efforts such as DDS’s coordinated career pathways pilot, paid internships, job development services, benefits counseling, and DOR’s career counseling and referral services, along with pilot projects in San Diego and Orange County. The State Council on Developmental Disabilities and advocates argued that employment outcomes have remained stuck at roughly 15% and that a dedicated Employment First Office is needed to coordinate across agencies, align goals, and improve outcomes. The LAO recommended regular legislative oversight on people transitioning out of subminimum wage and asked for technical assistance on coordinated career pathways. The chair criticized the administration’s decision to effectively eliminate funding for the office, requested a detailed implementation timeline and quarterly transition reports, and said the committee would continue pressing for the office to be implemented. The final issue was respite services, utilization trends, and access. DDS reported that in-home respite use and spending have risen sharply over several years, with about 150,000 people using respite in 2023-24 and expenditures reaching about $1 billion. Officials said access depends on families knowing the service exists, service coordinators identifying need, and having enough providers, especially in rural and linguistically diverse communities. The San Diego Regional Center said utilization generally mirrors statewide trends, but access is stronger in some areas, such as Imperial County, where families often prefer family-directed or agency-supported models that allow them to hire trusted workers. Committee members emphasized the importance of respite for family health and caregiver well-being, asked whether service coordinators are asking practical questions about sleep and stress, and discussed the need for better identification of complex behavioral and medical needs. DDS said a standardized family support tool and updated IPP process are intended to improve consistency, transparency, and person-centered assessment for respite and related services.

Transcript Highlights:

• And then, of course, our system actors.
• of the current system leads to many challenges.
• And as for the system infrastructure, the goals are to make help easy, And as for the system infrastructure
• Again, in connection with the broader system.
• This bill's intent is to build that system infrastructure so that we can... ...build that system infrastructure

Bills: HB1634

Committee: House Education

Keywords: mental health, behavioral support, education, school districts, student assistance, 904, all

Transcript Highlights:

• I deferred to how this is administered by the CSU system as well.
• So the university system is not looking at, has no awareness of what inputs are being put into the system
• in your closed system talking about suicide?
• “As staff in the system, we don't feel that we were included.
• policies to ensure consistency across the system as well.

Summary: The Assembly Committee on Higher Education and the Assembly Privacy and Consumer Protection Committee held an oversight hearing on the California State University’s AI-empowered initiative, including the systemwide rollout of ChatGPT EDU and broader AI integration across CSU campuses. Opening remarks emphasized both the promise of AI for student success, workforce preparation, and access, and the need to address risks such as bias, privacy, misinformation, environmental impacts, and mental health harms. CSU representatives said the initiative grew out of Academic Senate recommendations and a systemwide generative AI committee, and that the goal was to provide equitable access, training, governance, and workforce alignment across the 23-campus system. CSU officials described systemwide contracts for AI tools, the AI Commons training hub, and faculty grant programs supporting AI-related curriculum innovation. They said more than 93,000 ChatGPT EDU accounts had been activated, over 4,300 faculty had taken voluntary training, and $3 million had been awarded to 63 faculty-led projects from more than 400 submissions. San Jose State University highlighted its own AI-focused programs, courses, orientation training, faculty fellows, student ambassadors, and interdisciplinary efforts to build AI literacy and responsible use into instruction and co-curricular programs. CSU also said it was tracking metrics on adoption, academic outcomes, workforce outcomes, and environmental impacts. Faculty, staff, and student representatives welcomed the educational potential of AI but raised concerns about the rollout, saying it had moved quickly and without enough consultation or consistent systemwide policy. They urged stronger protections for academic freedom, intellectual property, privacy, equity, and worker input, and warned about bias, surveillance, job displacement, and the environmental cost of AI. Legislators pressed CSU and OpenAI representatives on training requirements, data privacy, bias reporting, discipline for misuse, liability, sycophancy, and safeguards against harmful uses such as non-consensual imagery or self-harm-related interactions. CSU said interactions in the licensed tool are private, data are not used to train models, and campuses retain their own conduct processes; members also asked CSU to follow up on systemwide training, policy consistency, and additional safeguards.

Transcript Highlights:

• So we've done, I watched from the old STAR system to the implementation of the new data systems and the
• funding system.
• How do we pull together more streamlined and unified application systems and reporting systems?
• We could pull together more streamlined and unified application systems and reporting systems.
• And we are working to rationalize our accountability system and our statewide system of support.

Keywords: 988, house, all

Transcript Highlights:

• THE SYSTEM IS DYNAMIC. ASSETS COME AND GO OUT OF THE SYSTEM.
• >> THIS SYSTEM IS NOT IN PLACE YET.
• IN BOTH SYSTEMS.
• THE SYSTEM IS BETTER.
• SYSTEMS?

Transcript Highlights:

• They try to gain access to our learning management system and email systems with the purpose of creating
• OUR NEW STUDENT INFORMATION SYSTEM.
• THIS A QUITE EFFECTIVE SYSTEM.
• of the other systems such as this.
• Could they notify the system and... Update the system, and, you know, as they see it.

Committee: Senate Higher Education

Keywords: 1187, senate, all

Transcript Highlights:

• and after 2030 when for HR in the system and after 2030 when the<00:02:29.360><c> system</c><00:02:29.680
• c> the</c> states are uh on new systems within the states are uh on new systems within the last<00:13
• ,</c> integrate um and implement the system, integrate um and implement the system, they<00:18:22.880
• But a SAP our current system.
• Got the current system up there.

Keywords: 958, all

Summary: Personnel Cabinet and Kentucky Employees Health Plan officials presented a request to replace the Kentucky Human Resources Information System (CHRIS), the state’s HR/payroll ERP system procured in 2007. They said the system supports core HR and payroll for about 48,000 state employees, 24 sheriff and county clerk offices, and the Kentucky Employees Health Plan, which covers more than 300,000 lives. Officials emphasized that SAP has said the system will be end-of-life and out of support by 2030, which would eliminate security updates, vendor maintenance, and tax-compliance support. They argued that replacement is necessary to protect sensitive personnel and health data, maintain payroll accuracy, and avoid major operational and cybersecurity risks. Officials described the project as a true replacement, not just an upgrade, and said the proposed $151 million request covers a five- to six-year implementation, stabilization, and ongoing maintenance period. They broke down the estimate as including roughly $54 million for software licensing and hosting, about $76.5 million for systems integrator/professional services, and additional amounts for independent verification and validation, dependent verification for the health plan, FSA administration, contingency staffing, and hardware-related needs. They said the cost increase from prior estimates was mainly due to inflation and updated requirements. They also noted that payments would be tied to deliverables and checkpoints, with third-party IV&V oversight, and that the cabinet expects to continue normal quarterly IT reporting to LRC while also providing at least monthly project updates because of the 2030 deadline. Committee members asked about the total cost of ownership, recurring operating costs, the size of the integrator contract, how vendor costs were estimated, and how progress would be tracked. Officials said they used market research, peer-state comparisons, vendor discussions, and independent reviews, including input from AON and a third-party QA resource. They explained that the integrator would handle requirements mapping, system design, configuration, training, change management, and implementation support across the Personnel Cabinet, KHP, and other stakeholders. No vote or formal action was taken during the discussion; the meeting consisted of testimony, questions, and answers on the funding request and implementation plan.