Transcript Highlights:

• We saw that on the prior slide, and then the rates kind of start to level off in the years to come.
• We saw that in the prior slide, and then the rates kind of start to level off in the years to come.
• Those high inflation levels have decreased, but high inflation still persists.
• Those high inflation levels have decreased, but high inflation still persists.
• It tends to be a little bit higher than the national level also, as Luke also pointed out.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on October 8 with introductions from council members and then heard a presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems were 100% funded as of June 30, 2024, with open plans above 95% funded, and explained that strong investment returns and prior funding policy decisions contributed to that position. The actuaries recommended increasing the inflation assumption from 2.75% to 3%, increasing general salary growth by 0.25%, keeping the Plan 1 membership growth assumption at 1%, and raising the assumed investment return to 7.25% for all plans. They also reviewed estimated budget impacts and explained that investment gains are smoothed over up to eight years, while other assumption changes flow directly into future valuations. The council also heard comments from the Economic and Revenue Forecast Council and the State Investment Board, both of which said their inflation and return outlooks were broadly consistent with the actuary’s recommendations. ERFC discussed inflation trends, the Federal Reserve’s 2% target, and why Seattle-area inflation tends to run above the national average, while SIB said its 15-year inflation assumption is 2.5% and that 7.25% is a reasonable long-term return assumption. Public testimony included support for maintaining Plan 1 funding efforts and caution from the Association of Washington Cities about the budget impact of higher assumptions and the risk of overfunding pensions. The council then considered and adopted a motion to maintain the current prescribed long-term economic assumptions, with a roll call vote of 4-2. It next considered the long-term services and supports trust program and, after hearing an overview from DSHS and OSA, adopted the recommended WA Cares premium rate of 0.58% by a unanimous 6-0 vote. OSA said the WA Cares program is still in its learning phase, with no benefits yet paid, and recommended no premium change at this time regardless of the outcome of the related ballot measure. The council also elected Katie Chapman as chair and then adjourned.

Transcript Highlights:

• um and and so I'm curious federal level um and and so I'm curious you<00:31:34.279><c> I'm</c><00:31
• </c> to a large extent at the federal level to a large extent at the federal level and<00:53:20.040><
• </c><01:09:25.920><c> where</c> going to keep our staff levels where going to keep our staff levels where
• There are statutes and regulations both at the federal level and the state level that cover apprenticeship
• </c> regulations both at the federal level regulations both at the federal level and<01:19:37.920><c>

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• Wan is the Associate Medical Director at Next Level Urgent Care, where she continues leading. with expertise
• in the city of Houston but they truly deserve to be recognized. statewide and even at the national level
• That's why we see at the federal level President Trump put forth on his first speech day I believe an
• Federal level and the state level. We should encourage more of that.
• Ethereum, and that is around 250 billion dollars, so it would fall below that. level.

Bills: SJR34 , SB10 , SB18 , SB19 , SB21 , SB72 , SB140 , SB262 , SB370 , SB480 , SB495 , SB627 , SB703 , SB767 , SB790

Transcript Highlights:

• I don't know that I'm qualified to give you the budgetary process.
• National Championship in October of 2025, earning a national title at the junior college level.

Summary: The House convened, completed the roll call, prayer, and Pledge of Allegiance, and then took up several measures. The main floor debate centered on House Bill 2787, a one-time $2 million supplemental for the Choosing Childbirth program through the State Department of Health. Supporters said the money would prevent a lapse in services for more than 4,000 mothers and children, especially in rural areas, until the organization can reenter the bidding process in 2028. Opponents questioned the nonprofit’s transparency, donor base, leadership, and prior use of state funds, arguing the Legislature should not provide another supplemental without clearer accountability. The bill passed 70-19, and the emergency clause also passed. The House also considered Senate Bill 546 on data privacy. After floor amendments removed the emergency clause and set a January 1, 2027 effective date, the bill was explained as a comprehensive consumer data privacy measure applying to certain businesses operating in Oklahoma. It would give consumers rights to access, delete, and opt out of the sale of personal data, with enforcement through the Attorney General’s Consumer Protection Division and civil penalties for violations. The bill passed 84-4. In addition, House Bill 2786 received a joint committee report and passed with no debate; it provides supplemental funding to the Department of Mental Health and Substance Abuse Services to complete fiscal year 2025 payments to CCBHCs and other vendors, and its emergency clause also passed. The House adopted House Resolution 1034 recognizing February as Black History Month. The chamber also heard several introductions and announcements before adjourning.

Transcript Highlights:

• federal monies to account for them in separate accounts or funds as necessary to meet accounting, budgetary
• from the previous session, and after hearing what the original intent was—to go after mid- and high-level

Summary: The caucus began with introductions from pages and interns, followed by a procedural reminder on consent calendars and how bills can be pulled for floor debate or amendment. Members were told that third-read consent bills bypass caucus debate, while caucus consent bills may have committee amendments adopted together unless pulled. The meeting then moved into Minority Caucus Calendar No. 2. A large number of bills were briefly presented, with several members pulling measures from consent or voicing opposition. Topics included appropriations and federal monies accounting (HB 2148), a Buffalo Soldiers memorial (HB 2062), school library funding restrictions (HB 2008), prayer at school governing body meetings (HB 2110), school safety center administration (HB 2142), parental rights and social transitioning disclosures (HB 2249), insurer assessments (HB 2091), agricultural property classification and inspection rules (HB 2104 and HB 2105), firefighter workers’ compensation definitions (HB 2138), truth-in-taxation bond notices (HB 2289), late tax filing penalties (HB 2016), engineering and professional licensing reciprocity (HB 2122), felony murder involving an unborn child (HB 2043), body concealment and mutilation penalties (HB 2044), domestic violence order-of-protection service rules (HB 2048), mandatory reporting of partial-birth abortions (HB 2074), unlawful flight sentencing enhancements (HB 2108), weapons trafficking and fentanyl sentencing changes (HB 2131 and HB 2132), drive-by shooting forfeiture rules (HB 2045), probation review notice changes (HB 2046), venue changes for cases involving court employees (HB 2126), and child support for pre-born children (HB 2144). Members repeatedly criticized several abortion-related bills, the library bill, and the tax and agriculture measures as harmful, unnecessary, or unfunded mandates. The latter part of the meeting focused on water and election legislation. Water bills included snowpack augmentation funding (HB 2024), water conservation grant disclosures (HB 2029), removal of education/research as an eligible water grant use (HB 2030), stormwater recharge mapping with an appropriation (HB 253), cesspool remediation assistance (HB 2096), groundwater pumping limits in INAs (HB 2097), Colorado River litigation funding (HB 2116), and natural resource conservation board changes (HB 2117). Election-related items included moving the primary date earlier and changing signature cure timelines and observer rules (HB 2022), a memorial urging designation of the Muslim Brotherhood as a terrorist organization (HCM 2001), a memorial urging review of CAIR for terrorist designation (HCM 2002), and a constitutional amendment on citizenship, voter ID, foreign contributions, and early voting limits (HCR 2001). Members raised concerns about voter access, anti-Muslim rhetoric, and the practical effects of the election changes. The caucus concluded with birthday acknowledgments and an announcement for Muslim Day at the Capitol before adjournment.

Transcript Highlights:

• years of effort in developing our language immersion-based program, starting at the early childhood level
• It also addresses budgetary concerns for the Commission for the Deaf and Hard of Hearing Persons.

Committee: House House Appropriations & Finance

Transcript Highlights:

• So it is at the granular level.
• savings go down to the course level.
• That level is not consistent across the entire system, and so they have an interest in leveling that
• —how much was this at a board level versus a state legislative level on these policies?
• Chair, but on the tuition levels.

Committee: Joint Higher Education Funding Review Committee

Transcript Highlights:

• Multiple studies show what matters is the therapeutic drug level needed to control the inflammation.
• Multiple studies show what matters is the therapeutic drug level needed to control the inflammation.
• Drug levels, and adjust the dose when medically necessary.
• And so all the guidelines are now saying, okay, check the levels, follow the patient.
• Benefits are defined at the federal level.

Summary: The Assembly Health Committee heard several bills on June 9. SB 1023 by Senator Laird would require insurers that cover injectable HIV PrEP under the medical benefit to also cover it through the pharmacy benefit, with supporters saying the change would reduce reimbursement delays and expand access, while health plans opposed it as an unnecessary mandate that interferes with benefit design. SB 964 by Senator Smallwood-Quivas would limit prior authorization for certain dose or frequency adjustments to covered medications, especially for chronic complex conditions; medical supporters said it would prevent harmful delays in care, while insurers argued it weakens safety and utilization controls. SB 1323 by Senator Rubio, as amended, would strengthen protections for people in immigration custody receiving medical care by requiring hospitals and facilities to inform staff how to respond to requests and allowing patients to notify family members of their location; it passed with one no vote. SB 1099 by Senator Reyes would clarify local governments’ authority to provide state and local public benefits to all residents under federal PRWORA rules, with supporters saying it would reduce legal uncertainty for safety-net services; it passed, though one member later changed a vote to no on the add-on roll call. The committee also took up SB 895 by Senator Wiener, a proposed $12 billion science research bond for the November ballot that would create a California scientific research funding institute. Supporters from UC, UAW, hospitals, and advocacy groups said the measure would help offset federal cuts, protect research jobs, and sustain California’s leadership in biomedical and other research; there was no opposition, and the bill passed on a party-line style vote with two no votes. SB 944, also by Senator Wiener, would stabilize Medi-Cal coverage for acupuncture, which supporters described as a cost-effective, non-pharmacological treatment for pain and other conditions that has repeatedly been threatened in the budget process; it passed unanimously. The committee also approved consent items SB 918 and SB 1202, and later cleared the remaining measures on call after roll votes and add-on votes were taken.

Transcript Highlights:

• There’s obviously different levels of conflict of interest, but that’s a real thing.
• There’s obviously different levels of conflict of interest, but that’s a real thing.
• There’s obviously different levels of conflict of interest, but that’s a real thing.
• So I'm part of this conversation at a national level, and it is all...
• Why certain contaminant levels?

Committee: House Conservation and Natural Resources

Transcript Highlights:

• Asking that we reject this amendment, this is a departure from our normal budgetary and tax policy, such
• And the legislation here says, well, we don't care how you file at the federal level.
• The bill is anticipated to have no revenue impact at the state level and an indeterminate effect for
• Income threshold one is 50% of county median household income, and folks under this exemption level are
• Several deductions are also allowed from this income level for the program, including things like the

Summary: House Finance met in executive session on Gross Substitute Senate Bill 6346, the proposed “millionaires’ income tax” package. Staff reviewed the bill and a long list of amendments affecting the new income tax, related business tax changes, and several exemptions and implementation provisions. The committee adopted amendments to exempt diapers from sales tax, allow certain tribal income treatment clarifications, create an advisory group to help implement the tax, move up the repeal date for some business tax changes, and require the measure to go to the voters; several other amendments on federal conformity, agricultural income, pass-through entities, and the marriage threshold were rejected or withdrawn. The committee then adopted the striking amendment as amended and advanced the bill on a 9-6 do pass vote, with supporters arguing it would fund education, health care, child care, and tax relief, and opponents warning about competitiveness, capital flight, and the state’s spending growth. The committee then held a public hearing on Senate Bill 6097, which would add federally recognized Indian tribes as eligible entities for county Conservation Futures Program funding. Staff said the bill would not change the tax levy structure and would have no state revenue impact, while tribal witnesses said it would improve voluntary conservation partnerships for habitat, farmland, and open space. Members asked about the bill’s scope, and staff confirmed it applies only to federally recognized tribes. House Finance also heard Senate Bill 6162, a property tax reform measure that would consolidate the state school levy, expand senior and disability property tax exemptions, raise income thresholds, and simplify the application process with a standard deduction. The prime sponsor and county assessors supported the bill as a way to help seniors, disabled persons, and disabled veterans stay in their homes and reduce administrative burden, while several testifiers opposed it as a tax shift that would raise costs for others and potentially strain local revenues. Finally, the committee heard Senate Bill 6113, an administrative and technical tax cleanup bill related to last year’s tax changes; the Department of Revenue supported it and noted a possible clarifying amendment, while nonprofits, schools, libraries, health care groups, workforce training providers, and trade associations asked for additional exemptions for live presentations and related educational activities. The chair announced that Senate Bill 6097 would be added to Monday’s executive session, Senate Bill 6114 was removed, and amendments for Monday’s bills were due by 5 p.m. that day.

Transcript Highlights:

• The qualified alien piece that we spoke about mentioned earlier at the federal level.
• If the state cannot me those budgetary gaps of some of that because that was seen of federally.
• So so the payment for this, right, that that these programs are are at that level.
• It's not a portion of it, but it's at that level different question.
• that are in level 4 over the last year in got to about 1400 as the population.

Transcript Highlights:

• limitation will ensure that the largest profitable corporations in California pay a reasonable minimum level
• At a time when we have historic levels of revenue, the reason why so much revenue has come into the state
• I appreciate the discussion on the minimum level of tax, because that's also an issue with this bill.
• proposal and suggestion is that all large profitable corporations pay at least some reasonable minimum level
• It helps stabilize the finances of the Medi-Cal program and reduces the need for additional budgetary

Transcript Highlights:

• concerns was, as a schoolteacher, having seen plenty of unfunded mandates at both the federal and state levels
• concerns was, as a schoolteacher, having seen plenty of unfunded mandates at both the federal and state levels
• they had it for a certain number of years or time, as they were seeing consistently in the state budgetary
• Now you must ensure that every survivor and every part of our state receives the same level of care and
• And it's these compounding unintended consequences that have raised it to a level of concern that we're

Committee: House Crime and Public Safety

Transcript Highlights:

• Expect that this level of carbon accounting to track and verify those RECs would not be different from
• Federal level.
• why we have the REC system already to ensure that the megawatt hours are being tracked at an annual level
• So this would just be increasing the level of granularity.
• My colleague, Nathan, has a few questions for you. of the budgetary elements of the project to share.

Bills: HF2928 , HF2912 , HF2297

Committee: House Energy Finance and Policy

Transcript Highlights:

• And so I'm happy... ...this large budgetary issue with data.
• at or below 100% of the federal poverty level.
• They have limits at the federal level.
• Now we know, just like we do in K-12, how much do you make at this level, at that level, based on different
• Under $5 million is kind of the level.

Summary: The committee heard first from LFC staff on a brief about New Mexico’s universal child care expansion. Staff said child care assistance has clear benefits for parents and families, but LFC has not found evidence in New Mexico that it improves children’s educational outcomes; they argued pre-K is the better tool for that goal. The brief highlighted four concerns with universal access: an estimated annual cost of about $849.7 million, a sharp decline in registered homes, possible crowding out of lower-income families, and reduced access for children under age two. Staff also suggested possible mitigations such as prioritizing slots for low-income and at-risk families, reinstating sliding-scale co-pays, and tying quality improvements to workforce wages. Members raised questions about the cost estimate, funding sources, provider quality, and whether the data showed actual crowding out. Several lawmakers expressed support for child care generally but concern about the fiscal impact and whether universal access would divert resources from the families most in need. Others emphasized the importance of child care for workforce participation, rural communities, and family stability, and questioned how registered homes are counted and regulated. LFC staff clarified that the cost estimate was for child care assistance only, not the entire ECECD budget, and that the data showed declines in the share of lowest-income children and infants/toddlers served, though not causation. The ECECD secretary then presented the department’s response, saying universal child care is intended to complete a cradle-to-career system and that the department has already seen strong uptake, increased capacity, and rising workforce participation. She said 6,206 families were found eligible in the first month, the share of infants and toddlers served rose, and new provider applications and licensed slots increased after the November rollout. The department also emphasized wage increases, quality improvements, and a new wage scale/career lattice, while projecting a lower near-term cost than LFC’s estimate and requesting additional funding for child care, early pre-K, home visiting, workforce systems, and capacity-building. No votes or formal actions were taken in the portion provided; the discussion was informational and focused on questions and testimony.

Transcript Highlights:

• That's an IOP-level problem.
• should be at your level.
• So thinking about how we can really continue from the state level and the local level, We can really
• continue from the state level and the local level, continue to think about how we scale investment in
• change, state-level, system-level change, would you recommend us to consider or think about?

Summary: The hearing focused on youth mental health and treatment access in California, with opening remarks emphasizing that youth distress, self-harm-related emergency visits, and difficulty obtaining care remain elevated, while workforce shortages and reliance on one-time funding continue to limit access. Assemblymember Lori Davies echoed concerns about unstable funding and said lawmakers need to hear directly from providers and families as they prepare for the budget and legislation. The chair framed the hearing as a chance to hear from county, school, provider, and student perspectives, especially in San Diego County, where needs are high and investments have not always matched demand. County and school officials described the current system and recent state initiatives, including the Children and Youth Behavioral Health Initiative, school-linked fee schedules, payment reform, and the Behavioral Health Services Act transition. San Diego County Behavioral Health said it serves Medi-Cal youth with specialty mental health needs through a broad continuum of care, including outpatient clinics, school-based services, crisis response, residential treatment, and new crisis and residential facilities. San Diego County Office of Education and San Marcos Unified School District described efforts to expand school-based services and reimbursement through CYBHI, but said implementation is slowed by complex billing rules, insurance-data collection concerns from families, administrative burden, and uncertainty about sustaining staff positions funded by grants or soft money. School counselor testimony highlighted reduced stigma through campus outreach and clubs, but also noted that counselor-to-student ratios remain well above national standards and that budget cuts threaten supports. Provider testimony stressed that the system remains fragmented and that youth often move between emergency rooms, inpatient care, outpatient therapy, schools, and county programs without smooth handoffs. A child psychiatrist described crisis cases in which the main choices are brief hospitalization or discharge with limited follow-up, and argued for stronger warm handoffs, more outpatient and intensive outpatient options, better school-clinic coordination, and broader use of mobile crisis and 988. Rady Children’s Hospital and Aurora Behavioral Health described large increases in behavioral health demand, expansion of integrated care, and major barriers tied to low reimbursement rates, delayed payments, and administrative complexity. Across the panel, witnesses called for more stable funding, clearer reimbursement rules, better parent education on warning signs, and stronger collaboration among schools, counties, hospitals, and community providers to reduce stigma and improve timely care for youth.

Transcript Highlights:

• We do the same thing at the federal level, and we try to work with federal agencies that manage former
• For the past two years, we have not received any budgetary increase, so although our costs increase,
• laws that would, again, recommunitize water to bring some of that decision-making back to the local level
• Nowadays, in terms of water scarcity, Asequia are very important stewards at the local level.
• the Asequia's primary function, even though we have this big legal framework, at their most basic level

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• </c><00:14:58.440><c> of</c> providers maintain the level of providers maintain the level of reimburse
• We continue to monitor at the federal level.
• It’s just you have to meet level of care for the waiver.
• </c> definitely meet um long-term care level definitely meet um long-term care level level<00:25:51.760
• We understand that there's lots of uncertainty on the federal level.

Summary: The Budget Review Subcommittee on Health and Family Services met with a quorum still coming together and first handled roll call and minutes. The main presentation came from the Department for Medicaid Services, with Commissioner Lisa Lee and CFO Steve Beckle giving an overview of Kentucky Medicaid, its federal-state financing structure, and the department’s 1915(c) home- and community-based waiver programs. They explained FMAP funding levels for traditional Medicaid, administration, IT, expansion adults, and CHIP, and noted the size of the program, including more than 600,000 Kentucky children eligible for Medicaid or CHIP, about 485,000 expansion adults, over 69,000 enrolled providers, and $18.5 billion in 2024 expenditures. A major focus was the waiver system, including the acquired brain injury waivers, model waiver, independence waiver, Michelle P. waiver, and Supports for Community Living waiver. The department said these waivers are intended to keep people with physical or developmental disabilities in home and community settings rather than facilities, and that many services are not covered by Medicare or commercial insurance. Officials described participant-directed services, interagency administration, and eligibility rules, including that some waiver programs use the child’s income only rather than family income. They also reported an unduplicated waiver wait list of 13,930 people and said the General Assembly had added waiver slots in the last budget, including 650 ABI slots and 1,275 more to be allocated July 1, 2025. The department also discussed a waiver rate study conducted by Guidehouse, explaining that CMS requires a defensible rate methodology because there is no Medicare or commercial benchmark for many waiver services. They said the study used cost and wage surveys, provider and stakeholder input, and aimed to improve transparency, provider stability, and rate parity. Officials reviewed prior COVID-era Appendix K rate increases and budget-driven increases, and said the budget ultimately funded rates at about 70% of the benchmark study, while preserving higher existing rates where needed so no provider would be cut. They highlighted larger differences in behavioral support and case management rates, and said a public report is available. Members asked several questions about the potential impact of federal FMAP changes, especially possible reductions in the enhanced match for expansion adults and Medicaid IT/admin activities. DMS said any FMAP reduction would require more state general fund dollars, estimating about $75 million for each 1% drop in the expansion match, while impacts on administrative IT funding would depend on the systems being built or implemented in a given year. Members also pressed for clarification on waiver wait-list procedures, funded versus filled slots, and what happens when someone on the wait list is later found ineligible. DMS said people on the wait list may not yet have been assessed, can be reevaluated if conditions change, and are still eligible for regular Medicaid state-plan services if they qualify, even if they are waiting for waiver services.

Transcript Highlights:

• We haven't seen quite the same level of storm losses, and as a result we're seeing some softening of
• /c><00:10:38.399><c> quite</c><00:10:38.640><c> the</c><00:10:38.800><c> same</c><00:10:38.959><c> level
• </c><00:10:39.200><c> of</c> we haven't seen quite the same level of we haven't seen quite the same level
• I'm not sure the state's in a budgetary position to be able to offer something like that.
• </c> not sure the state's in a budgetary not sure the state's in a budgetary position<01:35:00.239><c

Transcript Highlights:

• Were there changes that were made at the local level or at the state level?
• So first and foremost, there have been changes at both the local and state levels that have led to the
• CSU administrators also bear responsibility for their budgetary priorities.
• know that Black students in the California Community College system are performing at the lowest levels
• , and it's a reflection of our... ...system are performing at the lowest levels, and it's a reflection