Transcript Highlights:

• Preventing the drawing off of capital from the group to a member protects against potential conflicts
• </c> Preventing the drawing off of capital Preventing the drawing off of capital out<00:20:09.679><c>
• to cover the are sufficient capital to cover the future<00:20:22.640><c> claims</c><00:20:23.039><c>
• are also not uh ruined through assets are also not uh ruined through that<00:23:53.039><c> again</c>
• And in subdivision four uh capital A And in subdivision four uh capital A after<00:41:25.680><c> food

Transcript Highlights:

• It's human capital, financial assets, physical assets. So our job is to make sure it's protected.
• When they say, "Hey, give me capital outlay for a water project," call the league.
• We want the ability to deploy the capital that you all give us immediately.
• For allocating the capital sooner. What is the solution for the legislative authorization?
• I can't allocate capital today. We confront it and get reimbursed from the reinsurers.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• Maddie Hyatt, Capital Business Alliance, in support.
• Mattie Hyatt, representing the Capital Business Alliance.
• One of the property of the firm, the capital private, Sterling Groop.
• A company a property of the firm of capital private, Sterling Group.
• Most of the investable universe is not in the stock market; it's in private assets and alternative assets

Summary: The committee heard SB 921, which would create a tax credit to help agricultural employers offset overtime wage costs for farmworkers. Senator Grove and supporters, including farmworkers, the California Farm Bureau, Western Growers, and other agricultural groups, argued that California’s ag overtime law has reduced take-home pay by limiting hours and that the credit would help employers continue offering overtime while putting more money back into workers’ paychecks. Opponents, including the California Federation of Labor Unions and CRLA Foundation, argued the bill would subsidize employers for complying with the law, shift costs to taxpayers, and set a precedent for industry-specific carve-outs. The bill was held in subcommittee and taken up later when more members arrived. The committee then considered SB 1083, a follow-up to last year’s school employee misconduct database law. Senator Perez said the bill would add due process protections for classified school employees by requiring an administrative law judge review before placement in the statewide egregious misconduct database, require notice when an employee leaves during an investigation, and extend vetting to some contractors and non-permanent workers. Supporters, including the California School Employees Association and California Federation of Teachers, said the bill balances student safety with fairness for employees who could be wrongly accused. Opponents, including school business officials, joint powers authorities, administrators, and school employers, warned the bill could delay investigations, create conflicting timelines, and weaken child-safety protections. The committee approved SB 1083 on a 3-0 vote and sent it to Appropriations. SB 1089, authored by Senator Richardson, would require CalPERS health plans to cover GLP-1 medications for chronic weight management and direct CalRx to help make the drugs more affordable. The senator described the bill as a response to personal experience with coverage denials and high out-of-pocket costs, and said broader access could improve health outcomes and reduce long-term costs. The American Diabetes Association and other medical groups supported the measure, citing diabetes prevention and treatment benefits, while a pharmaceutical industry representative said there were still concerns but noted ongoing discussions. The committee passed SB 1089 4-0 to Appropriations. The committee also approved the consent calendar. The committee next heard SB 954, which would revise last year’s CEQA exemption for advanced manufacturing by narrowing the definition and adding environmental, tribal, labor, and community protections, including prevailing wage, skilled-and-trained workforce requirements, and review for projects near disadvantaged communities. Support came from labor unions, environmental groups, and community organizations, which said the bill would restore oversight and prevent harmful projects from bypassing CEQA. Business groups and chambers of commerce opposed, arguing the bill would make the exemption too restrictive, discourage investment, and worsen California’s manufacturing job losses. The bill passed 3-1 to Appropriations. Finally, the committee began hearing SB 1299, which would codify training and certification standards for fire sprinkler fitters after a court decision invalidated prior regulations on procedural grounds; the author and supporters said the bill is needed to protect public safety and ensure qualified installation of fire suppression systems.

Transcript Highlights:

• assets of the sewage and water board.
• The sewage and water board's assets, and not the state's assets.
• What would it take for it not to be quasi-state, for it to be a city, a total city asset?
• What would it take for it not to be quasi-state, for it to be a city, a total city asset?
• LMA was my first job in this capital.

Bills: SB348 , SB444 , SB485 , SB517 , HB87 , HB115 , HB162 , HB362 , HB368 , HB377 , HB431 , HB441 , HB466 , HB664 , HB741 , HB822 , HB990 , HB1243

Committee: Senate Municipal

Summary: The committee on local and municipal affairs met on May 7, 2026, approved the prior meeting minutes, and then took up a series of local bills. HB 362 creating the Regency Park Towns Townhomes Crime Prevention and Security District in Orleans Parish was reported favorably without objection. HB 822, dealing with nonprofit entities that hold appointments on boards and commissions while not in good standing with the Secretary of State, drew questions about whether it targeted a specific entity and about how long an entity should be out of good standing; the committee adopted an amendment changing the trigger to three consecutive years and then reported the bill as amended. A major portion of the meeting focused on HB 1243, which would give the Orleans Parish City Council more authority over the Sewer and Water Board. The sponsor, Council President J.P. Morrell, and Representative Hilfordy argued the bill would move New Orleans toward a more local, responsive public-works model and help address long-standing dysfunction. The Bureau of Governmental Research testified that it supported increased local control but urged a formal study or transition plan so the city would document the future governance structure. Despite those concerns, the committee adopted an amendment clarifying ownership of assets and then reported HB 1243 as amended. The committee also handled several St. George bills and other local measures. SB 348, allowing third-party administrative support for motor vehicle enforcement, and SB 444, granting expropriation authority for certain public projects, were reported favorably. SB 485, transferring insurance premium tax authority to the City of St. George, was initially amended but then reconsidered; the amendment was stripped and the bill was reported favorably. HB 990, concerning Jefferson Parish and unpaid water/sewer bills on multifamily properties, HB 466 on West Feliciana Parish property-tax rebates, HB 664 raising parish ordinance fines, HB 87 increasing per diem for a Livingston Parish gas utility district board, HB 115 abolishing the police chief for the Village of Edgefield, HB 741 creating emergency housing vouchers for human trafficking survivors, HB 377 removing civil-service pay restrictions for state examiners, HB 162 updating a crime prevention district fee, HB 368 raising fines for improper demolition of historic properties, and HB 441 returning Sewer and Water Board employees to city civil service were all reported favorably, most without objection. HB 431, requiring mayors to complete 16 hours of annual training, was amended to add continuing legal education and national conferences and then reported as amended. The committee adjourned after completing its agenda.

Transcript Highlights:

• In both reports, we noted that capital assets were not updated for additions and deletions.
• In both reports, we noted that capital assets were not updated for additions and deletions.
• Finding nine, capital assets were not properly maintained during FY25.”
• During our examination of capital assets, one of 10 items selected for observation was not available
• The charter school did not maintain capital asset records as required by section 5.9 of the charter agreement

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The committee met to review a large slate of education audit reports, with most of the discussion focused on the Blytheville School District. Legislative Audit summarized serious repeat findings in the FY24 and FY25 audits, including missing supporting documentation for payroll, receipts, disbursements, journal entries, and Title I spending; unreconciled bank balances; capital asset recordkeeping problems; missing performance bonds; and payroll errors. Audit staff said the lack of documentation led to qualified opinions on the financial statements, and the reports were referred to the prosecuting attorney and attorney general. Members questioned how the district had reached that point, what safeguards existed under state takeover, whether prior administrators had moved on to other districts, and how much money might need to be repaid. District and Department of Education representatives said Blytheville was under Level 5 intensive support, had a new superintendent, new finance staff, and a management contract with AMS, and that corrective action plans were underway. A motion to refer the matter to the Professional Licensure Standards Board was discussed, then withdrawn so the former superintendent, Dr. Veronica Perkins, could testify; she said the district had longstanding staffing and process problems, denied intentional wrongdoing, and described the changes now being made. The committee ultimately held the Blytheville report over until the September meeting and then filed it later in the meeting after further discussion. The committee then reviewed several other repeat-finding reports. KIPP Delta Public Charter School had multiple repeat issues involving missing documentation, improper use of Title I and federal funds, weak bank reconciliations, collateralization problems, capital asset recordkeeping, related-party transactions, and journal entry approval; that report had already been referred to the First Judicial District Prosecuting Attorney and the Attorney General. KIPP representatives said they had replaced personnel, improved oversight, and were working with outside support to correct long-standing finance problems, including a prior $3.6 million variance that they said had been reduced to zero. Hope Academy of Northwest Arkansas, which had voluntarily closed effective June 30, 2025, had repeat findings tied to financial statement errors, bank reconciliations, leave records, non-payroll expenditures, and journal entries; its former superintendent said the school closed without owing money to the state and that the organization had shifted its work into a new project serving students with behavioral needs. The committee also heard brief presentations on Brinkley, Lee County, and Marvel school districts. Brinkley’s repeat findings involved misclassified and unrecorded revenues and investments tied to bond and settlement accounts, plus bank reconciliation issues; the district said it had a new finance team, was working with outside support, and had reduced its variance to zero. Lee County’s repeat finding involved capital assets, including a bus that had been disposed of but remained on the asset list and several purchased items that were not added promptly; the superintendent said the district had improved overall and corrected the issue. Marvel’s repeat finding involved payroll errors, with one certified employee overpaid and another underpaid due to clerical mistakes. In each case, district representatives described corrective steps, and the committee voted without objection to file the reports that were ready for disposition.

Transcript Highlights:

• There is a if they even if they are black on the operating expenses, when it comes time for capital,
• So we need if we're going to make this an asset that's going to support industrial development, both
• Well, can you touch on how and give us a broad overview of how private investment and private capital
• So that's all private capital that could be brought to the table, whether that's at the spaceport or
• And all we're coming back to you is for one time or Significant capital outlays, significant capital

Committee: House A&B Transportation Subcommittee

Transcript Highlights:

• I joined the bipartisan consensus in our capital toward reducing taxes, and I'm glad to have done my
• I joined the bipartisan consensus in our capital toward reducing taxes, and I'm glad to have done my
• I joined the bipartisan consensus in our capital toward reducing taxes, and I'm glad to have done my
• But our responsibility to Kentucky doesn't stop at managing funds or returning assets.
• </c><00:19:57.720><c> through</c> their lost or forgotten assets through their lost or forgotten assets

Summary: The Budget Review Subcommittee on General Government met for its first meeting and heard budget-related presentations from the Auditor of Public Accounts and the Secretary of State, with the Treasurer beginning a presentation at the end of the transcript. Auditor Allison Ball reviewed her office’s 2024 and early 2025 work, including hundreds of county and state audits, several special examinations, and ongoing reviews such as the kinship care funding issue, the Kentucky Department of Education audit, and the Jefferson County Public Schools audit. She said her office is focused on waste, fraud, abuse, and legal compliance, and asked the committee to consider future budget changes, including aligning her appropriation with restricted funding and restoring a stronger performance-audit function. She also highlighted audits that exposed serious problems, including the Department of Juvenile Justice review, and said those reports are intended to serve as models for other entities to avoid similar failures. Secretary of State Michael Adams said his office is self-sustaining through fees and does not need tax dollars, but asked for greater access to its own revenues and more flexibility in using them. He highlighted the Safe at Home address confidentiality program, saying recent changes expanded protections for survivors of domestic violence, sexual assault, and human trafficking, and that the program has grown rapidly while remaining funded by offender fines. Adams also urged lawmakers to again adjust county election funding for inflation, noting the current per-voter and per-precinct amounts were set decades ago. In questioning, Representative Hart asked whether the Safe at Home program was self-funding; Adams replied that it covers only about 10% of its operating cost and said the best solution would be to let the office use more of the revenue it already collects rather than rely on tax dollars. Treasurer Martin Medcafe, introduced with staff member Russell Weber, praised the General Assembly’s fiscal discipline and described the Treasury’s work in managing state funds. He reported strong results from the Unclaimed Property Fund, saying the office returned $35.5 million to Kentuckians in its first year and $3.8 million in the first month of the current year, and said the State Investments Commission generated $682 million in returns last year. He also highlighted financial literacy efforts through the Kentucky Financial Empowerment Commission and said the Treasury is helping manage opioid settlement funds, which are now earning up to $200,000 per month through investment. No votes or formal actions were taken in the portion of the meeting provided.

Transcript Highlights:

• So what we've done is we've used a $6 million per megawatt as a proxy for nth-of-a-kind capital costs
• The one thing I do want to point out on the left-hand side is that when we look at the capital cost of
• So $6 million a megawatt, the capital cost is very high, but the life of the asset is very long.
• So $6 million a megawatt, the capital cost is very high, but the life of the asset is very long.
• Does the capital cost of the facility include fuel? It’s a great question.

Committee: Joint Advanced Nuclear Energy Committee

Summary: The committee met to hear a series of presentations on advanced nuclear economics, workforce, community impacts, and financing. Nucleon Energy’s William Bridge presented a report estimating the economic impacts of hypothetical 200-megawatt and 600-megawatt SMRs, including construction and operating jobs, local spending, tax revenue, and the private-sector conditions needed to attract investment. He said the report used nth-of-a-kind cost assumptions, discussed security and water siting considerations, and argued that early community engagement and permitting work should be timed to when projects are closer to being economic. Committee members questioned cost assumptions, security staffing, transmission and water siting, and whether large reactors or SMRs are more likely to be financed in the near term. Lori Brady of the Nuclear Energy Institute then outlined national nuclear workforce needs and NEI’s strategic workforce planning. She described declining labor-force demographics, the need for hundreds of thousands of new energy workers by 2050, and six workforce priorities: career awareness, pipelines, training and qualification, policy support, retention, and non-traditional pipelines. She highlighted the Nuclear Works career website, the Nuclear Energy Academic Roadmap, the new federal Energy and Natural Resources career cluster, and the Nuclear Uniform Curriculum Program for community colleges. Members asked about AI, robotics, and when training should begin relative to future plant construction; Brady said AI is not expected to replace workers broadly and that training timelines depend on the specific project and staffing plan. Red Wing, Minnesota Mayor Gary Yako described hosting the Prairie Island nuclear generating facility. He said the plant provides a large share of the city’s property tax base, supports well-paid jobs, contributes to local emergency preparedness, and is a strong community partner through donations and employee involvement. He said the city supports relicensing, has regular emergency drills, and has had no issues with dry cask storage. The committee also heard from NEI’s Benton Arnett, who reviewed the current financing landscape, including federal tax credits, DOE loan authority, offtake agreements, and the shift toward project developers and special-purpose vehicles. He said early projects face high first-of-a-kind costs, but federal support and long-term power purchase agreements are helping make projects financeable. Finally, DOE’s Julie Kazeraki described the Office of Energy Dominance Financing and its role in supporting new nuclear, restarts, uprates, and supply chain investments, emphasizing that federal loan and tax-credit tools are intended to reduce upfront risk and improve project affordability.

Transcript Highlights:

• One of the major ones is the capital cost of SMRs.
• A lot of vendors... ...as a proxy for nth-of-a-kind capital costs.
• So, $6 million a megawatt, the capital cost is very high, but the life of the asset is very long.
• Does the capital cost of the facility include fuel? It's a great question.
• The United States has been built under a regulated asset-based model.

Summary: The Advanced Nuclear Energy Committee met to hear a series of presentations on the economics, financing, workforce, and community impacts of advanced nuclear deployment in North Dakota. William Bridge of Nucleon Energy presented the committee’s economic impacts and private-sector financing report, estimating construction and operating job impacts, local spending, and state/local tax effects for hypothetical SMR projects. He said the report assumes first-of-a-kind costs are still high, used a $6 million per megawatt nth-of-a-kind proxy, and estimated peak construction workforces of about 500 for a 200-MW plant and 1,000 for a larger facility, with roughly 100 operating jobs for a 200-MW plant. Committee members questioned security costs, capital cost assumptions, water and transmission siting constraints, and whether the model included fuel and waste; Bridge said the report included initial fuel in capital cost and that waste disposal is funded through existing federal mechanisms. Lori Brady of the Nuclear Energy Institute then outlined national nuclear workforce needs and NEI’s strategic workforce planning efforts. She described declining labor-force participation, retirements, and the need for a much larger future workforce, and said NEI has organized recommendations around career awareness, pipelines, training and qualification, policy support, retention, and nontraditional recruitment. She highlighted tools such as the Nuclear Works career website, the Nuclear Energy Academic Roadmap, the new federal Energy and Natural Resources career cluster, and the Nuclear Uniform Curriculum Program for community colleges. Members asked about AI, timing for training relative to plant development, and whether advanced manufacturing would reduce staffing needs; Brady said AI is not expected to replace workers and that training timelines depend on the specific project and staffing plan. The committee also heard from Gary Yaco, mayor of Red Wing, Minnesota, who described Prairie Island’s role in his community. He said the plant provides a large share of local property tax revenue, supports well-paid jobs, contributes to emergency preparedness funding and training, and is broadly supported by the city despite periodic protests and public concerns. He emphasized the plant’s security, regular drills with local and federal responders, and the absence of problems with dry cask storage. Later, Benton Arnett of NEI discussed the current financing landscape for advanced nuclear, explaining how tax credits, federal loan support, off-take agreements, and new business models are helping projects move forward. He said early projects face high upfront costs and long lead-time procurement, but that investor confidence is improving as federal policy and regulatory streamlining continue. The committee asked about waste funding, comparisons with natural gas, the effect of political shifts on investor confidence, and whether the market will narrow to a few winning technologies; Arnett said the industry is still sorting that out, but expects clearer winners in the late 2020s and early 2030s. The meeting concluded with an introductory presentation from Julie Kazeraki of DOE’s Office of Energy Dominance Financing, who said the office is focused on accelerating nuclear deployment through financing support.

Transcript Highlights:

• And right now, spending is almost entirely concentrated among the families who have high asset values
• We think of capital exactly as you do: hard, tangible assets.
• Hard tangible assets, and the investments into those school facilities would be a hard tangible asset
• But the main point I want to make here is why the capitation rates have changed so much.
• You'll see a historic low capitation right there in 2024 at 0.81%.

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.

Transcript Highlights:

• the Metropolitan Transportation Commission from existing funds in the transit and intercity rail capital
• We provide capital support, which is great, especially during surplus years, but for the year-to-year
• I actually think the best way to do it is to get private capital investment.
• These assets were then Businesses and the money left behind by the detainees.
• These assets were then returned to the owners when the detentions ended.

Summary: The Senate first took up two budget-related transportation bills. AB 107, a junior budget bill, was described as a technical measure that updates federal appropriations by about $15 million, exempts certain Proposition 4 funds from the Administrative Procedures Act to speed spending, and makes other technical corrections without adding new projects or General Fund spending. Some senators objected to the APA waiver as reducing transparency, but the bill passed 28-10. AB 117, an early-action trailer bill for Bay Area transit, authorizes a $590 million loan from the state’s transit and intercity rail capital program to the Metropolitan Transportation Commission, which can then lend the money to Bay Area transit agencies for operating support, with repayment and interest secured by transit revenues. Supporters called it an emergency bridge to prevent major service cuts at BART, Muni, AC Transit, and Caltrain; opponents raised concerns about ridership recovery, accountability, and consolidation. The bill passed 28-9. The Senate then confirmed two California Air Resources Board appointees: Sonoma County Supervisor Linda Hopkins and Riverside Mayor Patricia Locke Dawson. Both were supported by colleagues who praised their experience and backgrounds, and both confirmations passed. The body also adopted SCR 89, a resolution by Senator Smallwood-Cuevas opposing federal attacks on diversity, equity, and inclusion programs. Supporters argued DEI is essential to civil rights, education, public service, and equal opportunity, while criticizing the Trump administration for dismantling related federal offices and funding. The resolution passed on a largely party-line vote after extensive floor debate. Finally, the Senate adopted SCR 78, commemorating the 84th anniversary of Executive Order 9066 and the incarceration of Japanese Americans during World War II. Senators from both parties spoke about the injustice of the internment, the resilience and military service of Japanese Americans, and the importance of remembering the history to guard against future abuses. The resolution passed unanimously, and the author then introduced survivors and guests in the chamber.

Transcript Highlights:

• We have seen it used for assets like pollution control equipment and other ongoing assets, and used successfully
• these public assets on a coordinated schedule.
• these public assets on a coordinated schedule.
• It is a strategic asset.
• It is a strategic asset. It reduces costs.

Committee: Joint Joint Committee on Telecommunications, Utilities and Energy

Summary: The committee heard testimony on H. 4144, the Governor’s Energy Affordability, Independence, and Innovation Act, with the administration arguing the bill would lower bills in the short and long term while expanding clean energy supply and innovation. The Governor and Secretary said the bill would reduce or restructure charges on customer bills, reform Mass Save, expand securitization as a financing tool, speed interconnection, create energy-ready zones, strengthen consumer protections in competitive supply, and allow broader state procurement of energy resources. They said the package could save consumers billions over time and would help address high energy costs, especially during extreme heat and winter spikes. Committee members pressed the administration on several provisions, especially securitization, asking whether the bill requires an apples-to-apples comparison of total costs over time, including interest and lost tax revenue, versus paying through rates. Administration witnesses said DPU review and public comment would be required and said they would work to clarify the language if needed. Members also questioned the bill’s solar and procurement provisions, including reduced net metering compensation for some large facilities, the scope of all-resource procurements, and whether hydro, solar, and nuclear would be included; the administration said those resources were contemplated and that procurement would still be reviewed by DPU. Other questions focused on the short-term relief from bill changes, the treatment of low- and moderate-income discounts, and whether the bill’s heat pump and Mass Save reforms would help customers who cannot afford upfront costs. Several witnesses and committee members discussed Mass Save reforms, including securitization of program costs, on-bill financing, pre-approval of rebates, and shifting program administration away from gas utilities. Administration witnesses said the changes were intended to reduce volatility, lower administrative costs, and better align costs with long-term savings. Questions also touched on geothermal permitting, municipal participation in offshore wind procurement, and the proposed repeal of the ballot requirement for nuclear power, which the administration defended as preserving future options under heavy review. No votes were taken during the hearing portion described. Supportive testimony came from labor, environmental, business, planning, and development groups. The AFL-CIO, NECA, and the Environmental League of Massachusetts backed the bill, emphasizing lower bills, job creation, labor standards, just transition protections, and cleaner energy. NAIOP, the Massachusetts Business Roundtable, and MAPC supported provisions on energy-ready zones, interconnection reform, microgrids, extreme-heat shutoff protections, and Mass Save improvements. A HEET representative praised the bill’s use of securitization, geothermal, and utility financing tools but urged guardrails and workforce protections. Overall, testimony was broadly favorable, with most witnesses calling for refinements rather than opposing the bill outright.

Transcript Highlights:

• And the third finding: while performing an observation of assets from a current capital asset listing
• for observation had no identifying tag number and/or serial number documented on the agency's fixed asset
• discovered having been transferred to marketing redistribution; however, the item remained on the fixed asset
• During our review of asset acquisitions, deletions, and observation, we also noted the following: two
• items were not capitalized at the correct amount; one item that was still on hand was removed from the

Committee: All LEGISLATIVE JOINT AUDITING-STATE AGENCIES

Transcript Highlights:

• Okay, we are going to shift to water, and I'm going to ask Senator Trudeau, our vice chair for capital
• It took the remaining assets beyond the 120% and deposited those in the pension funding stabilization
• Merger is a combining of the assets and liabilities of two or more plans into one big plan.
• And a reversion, or more commonly a reversion of assets, is when money is being taken out of the ...or
• more commonly a reversion of assets, is when money is being taken out of the trust fund to be used for

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• We know that segments and campuses are struggling to support capital programs.
• The demand within the CSU Capital Program is significant.
• One of the things we did in this ICAMP process—the Integrated Capital Asset Management Process—is that
• And those are to be used primarily for deferred renewal and capital.
• I'm heartened by the conversation you had this morning around capital and capital needs in the UC system

Summary: The committee’s first major discussion focused on higher education facilities across UC, CSU, and the community colleges, with Chair Alvarez framing the issue as a final budget hearing before the May Revise. The LAO presented findings that campuses have grown substantially in buildings and square footage, while classroom and lab utilization remains below legislative standards and deferred maintenance backlogs continue to rise. The LAO also emphasized that the state and segments lack comprehensive data on capital renewal spending and recommended better reporting, clearer funding targets, and long-term planning for renewal and maintenance. UC, CSU, and community college representatives each described large five-year capital plans, aging facilities, seismic and deferred maintenance needs, and the role of student housing, while noting that construction costs are rising faster than inflation. Members questioned the segments about debt service, utilization rates, and how projects are prioritized. UC said its debt service tied to state support is about $665 million annually and described a $30 billion five-year capital financial plan, including housing, medical centers, and building renewal. CSU said it has about $31 billion in five-year needs and more than $8 billion in deferred maintenance, with funding coming from a mix of state-related and one-time sources since the state shifted capital responsibility to CSU. Community colleges said their unmet facilities needs total about $33.5 billion and explained their use of a scoring matrix and FUSION system to rank projects. The chair and members pressed all three systems to better distinguish between projects that are truly shovel-ready and those that are long-term needs, and discussed whether facilities condition data, total cost of ownership, and more standardized metrics should guide future bond proposals. The committee then turned to Proposition 2 and the Governor’s proposed community college capital outlay projects. The Department of Finance said Prop. 2 provides $1.5 billion for community colleges and that the Governor’s budget proposes 29 projects, with two continuing Prop. 51 projects also included. The LAO supported the overall use of the funds but raised concerns about the current 65/35 split between modernization and growth, the unusually large share of gymnasium projects, and some scoring metrics that favor larger campuses and certain regions. Community college officials said the scoring system was developed through participatory governance and would take one to two years to revise, but they supported the funding and agreed to follow up on questions about project categories and the rationale for the weighting. Members also suggested giving more weight to modernization, regional access, and intersegmental or collaborative projects. A final item addressed the CalKids program. The Department of Finance proposed $56,000 ongoing General Fund for three positions, while the LAO recommended approving two positions but rejecting a manager position until the current $7.5 million marketing campaign is evaluated. ScholarShare’s executive director said CalKids has enrolled more than 5 million children, with nearly 600,000 claims and over $45 million distributed, and argued that additional staff and outreach are needed to reach a goal of 1 million claimed scholarships by the end of 2025 and to implement AB 2808. Members asked about marketing effectiveness, data sharing, and eligibility rules, and the program said it is expanding partnerships with Cradle to Career and CSAC. No final vote was taken in the hearing, and the chair indicated the facilities item would be held open.

Transcript Highlights:

• Overestimating demand results in stranded assets whose costs ratepayers bear through higher rates.
• Those four projects represent $3.1 billion in capital investment.
• Those four projects represent 3.1 billion in capital investment.
• That's how we fund our capital work.
• That's how we fund our capital work.

Transcript Highlights:

• Texas Water Capital Needs Survey is that utilities are facing rising operating costs, increasing capital
• This transfer is not getting in the way of us maintaining our assets.
• They can only be used for maintaining surface water-related assets.
• I'm Lee Torresstein, CEO of IDE Water Assets, for those who have not met me yet.
• Using exclusively private capital.

Committee: Senate Water, Agriculture and Rural Affairs

Transcript Highlights:

• So that program did experience... ...of what someone's asset value was.
• Some counties delayed capital improvements and deferred asset purchases.
• They're constantly comparing where they can best monetize the capital that they deploy.
• Any way to rank the best return for their investment capital. Yeah. Further questions for Mr.
• , not plug the assets.

Committee: Joint Tax Reform and Relief Advisory Committee

Transcript Highlights:

• </c><00:09:35.920><c> management</c> the transportation asset management the transportation asset management
• </c><00:10:29.920><c> planning</c> potential redundancy in asset planning potential redundancy in asset
• We take it out of what's called the capital investment bill.
• </c> out of what's called the capital out of what's called the capital investment<00:36:52.840><c> bill
• </c> their buildings through capital their buildings through capital investment<00:37:09.400><c> and<

Committee: Senate Transportation

Transcript Highlights:

• </c> regard to maintenance and Capital regard to maintenance and Capital Improvements<00:02:09.640><c
• </c><00:21:04.799><c> city</c> of the city of St Paul the capital city of the city of St Paul the capital
• </c> can use these incredible public assets can use these incredible public assets for<00:25:36.279><
• </c> highlight too how these big Capital highlight too how these big Capital Investments<00:30:51.960
• invest in your Capital City our capital<00:31:01.440><c> city</c><00:31:02.120><c> that</c><00:31:02.320