Transcript Highlights:

• . 43% assumed in the budget.
• Another question, when we were talking about budgeting, we're budgeting for 100% ADA, right, average
• At the release of the 2021 Budget Act, the state projected that full fiscal implementation of the program
• The governor's budget moves forward with the plan from the Budget Act of 2021, with full implementation
• Our budget includes coaching.

Keywords: 988, house, all

Transcript Highlights:

• The fourth item that we'll be covering is a 2026 session budget overview from our budget coordinator,
• The project is currently on time and on budget.
• And we'll come to our last work session topic, which is the 2026 session budget review from our budget
• So what really drives operating budget spending?
• And by statute, the adopted 25-27 biennial budget, And by statute, the adopted 25-27 biennial budget

Summary: The committee held a work session focused first on juvenile rehabilitation system capacity. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth, and has longer lengths of stay, especially for “post-25” youth who must remain in secure facilities and cannot go to community beds. They described overcrowding at Green Hill School, placement limits at Echo Glen and Harbor Heights, staffing turnover, mental health acuity, and the need for more medium-security and specialized mental health beds. DCYF said it is pursuing a Parkland facility proposal, a staffing model decision package, and a broader feasibility study and master plan update. No votes were taken; members were asked to follow up with questions later. The committee then heard on behavioral health system capacity from the Behavioral Health Administration and the Health Care Authority. DSHS described growth in forensic and civil bed need, expansion at Olympic Heritage, Maple Lane, and Brockman, and construction of a new 350-bed forensic hospital at Western State expected to open in 2028. HCA reported progress on long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams, saying the community-based system is being expanded to support step-down care and reduce hospital reliance. Members asked about whether capacity is right-sized, the difference between facility types, and federal match eligibility for services. A federal funding update followed, covering the effects of H.R. 1 and H.R. 5371 on SNAP, Medicaid, marketplace coverage, long-term services and supports, K-12, higher education, and hemp regulation. OFM and agency staff said H.R. 1 adds work requirements, changes non-citizen eligibility, increases state administrative and benefit costs, reduces Medicaid and marketplace subsidies for some groups, tightens redeterminations, and may significantly affect provider payments and state-directed payments. H.R. 5371 extended federal funding through January 30, 2026 and included some agency appropriations and other provisions, including changes affecting hemp producers. Members asked about SNAP error rates and special enrollment periods. Finally, budget coordinator Mary Monroe gave a 2026 supplemental budget preview. She reviewed the state’s near general fund outlook, noting revenue declines since the enacted budget, the effect of reversions, and a preliminary maintenance-level outlook showing a projected increase in NGFO spending over the four-year period. She said the supplemental will reflect updated caseload and cost forecasts and mandatory impacts from H.R. 1, but not policy proposals. No actions or votes were taken during the session.

Transcript Highlights:

• I want to welcome everyone to the Budget Committee.
• for the fiscal year 26-27 and the implementing bill.
• So, our budget is PCB BUC 2601.
• Our total budget is a 2% increase over the current year budget.
• Now we're going into the presentation of PCB BUC 2601, BUC 602 by the Budget Committee implementing the

Transcript Highlights:

• And, student, the statewide student information system budget is in all the budgets Just in different
• So they got the full budget The same budget that a regular district school would get.
• And so we're implementing a much. more rigorous budget process that actually takes place year-round and
• about how to set budgets.
• We do budget planning with our budget directors at the school and district levels.

Keywords: 996, all

Transcript Highlights:

• Welcome to Assembly Budget Sub 4.
• We're at the final stage of implementation.
• revised budget and schedule.
• of our budget change proposals.
• This is not a budget committee, but I will tell you, I'm on the budget committee.

Summary: The committee first heard a DMV budget presentation on the state-to-state verification system required for Real ID compliance and the Digital Experience Platform (DXP) modernization project. DMV officials said the state-to-state system is a pointer-based exchange used when a person applies for a license in another state, with only limited identifying data shared initially and the full driver history sent only after a qualified request. Members raised concerns about privacy, possible misuse by other states or federal actors, notification to Californians, hacking, and whether California could detect or stop abusive access. DMV said it can monitor requests, see patterns of access, work with AAMVA and legal counsel, and seek to block or challenge misuse; LAO said California is in a difficult position and should consider guardrails rather than opt out. On DXP, DMV said the project is on its revised schedule and budget, occupational licensing is complete, vehicle registration is expected by the end of calendar year 2026, and the full system should be finished by fiscal year 2028-29, with phased rollout and reappropriated funding to keep costs controlled. The committee then heard from the California High-Speed Rail Office of Inspector General on a trailer bill and AB 1608. The Inspector General said current law does not clearly authorize public reports or establish a framework for retaining and disclosing work papers, and the proposed trailer bill would create that framework while also adding authority to hire needed classifications and purchase goods and services. He also said the office needs a clearer statutory definition of “proposed agreements” and notice when the High-Speed Rail Authority is reviewing them, so the office can review contracts and related agreements effectively. LAO raised no concerns with the trailer bill language, and Finance said any amendments would come in the May revision. Members debated the scope of confidentiality in the Inspector General proposal, especially whether reports could be held confidential when they identify weaknesses in fraud controls, security, or other vulnerabilities. The Inspector General said confidentiality would be temporary, tied to articulating the risk, reassessing it every 120 days, and releasing the report once the risk is no longer substantial; he also said the office had already published reports at its discretion and had found at least one procurement violation involving an amendment that added services not in the original contract. Several members pressed for stronger transparency and suggested time limits or broader disclosure, while others argued the bill would improve oversight and make the Inspector General’s authority clearer. No votes were taken during the discussion, and the item was left for further work on the trailer bill and AB 1608 language.

Transcript Highlights:

• The package delays implementation of several previously adopted Medi-Cal budget solutions and also does
• So we appreciate the opportunity to comment on this budget. ...budget act.
• Please keep this in the budget. We also $30,000. Please keep this in the budget.
• Included in the greater budget discussions, we'll reserve our detailed comments for when the implementing
• Included in the greater budget discussions, we'll reserve our detailed comments for when the implementing

Keywords: 987, senate, all

Summary: The Senate Budget and Fiscal Review Committee heard AB 109, the Budget Act of 2026, and related discussion of the legislative budget agreement. Committee staff and the Department of Finance described a two-year balanced plan with about $253 billion in General Fund spending, roughly $5.5 billion in higher assumed revenues than the May Revision, and about $36.5 billion in combined reserves. They said the package preserves or expands funding for schools and community colleges, child care, IHSS, Medi-Cal-related county administration, housing and homelessness programs, public hospitals, courthouse construction, and some criminal justice and prison-closure savings, while delaying or modifying several prior health care reductions and some Medi-Cal changes. Much of the member discussion focused on Medi-Cal, H.R. 1, and the impact on low-income and immigrant Californians. Several Democrats argued the budget protects vulnerable residents by delaying some cuts, funding county eligibility work, indigent care, public hospitals, and food banks, and rejecting the Governor’s IHSS cuts and asset-limit proposal. Republicans criticized the budget for assuming future revenues, relying on new taxes, and not doing enough to address the structural deficit or improve accountability. Members also raised concerns and support around homelessness funding, Prop. 36, judgeships and courthouse funding, transit and GGRF allocations, local journalism, Caltrans fleet spending, and a proposed “fair share” revenue measure that was not yet before the committee. Public testimony was largely supportive of the budget’s health and human services provisions, especially the rejection of IHSS cuts and the asset-limit proposal, and the inclusion of funding for child care, sickle cell centers, domestic violence services, trauma recovery centers, distressed hospitals, county eligibility work, and transit programs. Some witnesses representing hospitals and health plans cautioned about the effects of moving certain Medi-Cal populations to fee-for-service and about proposed tax changes affecting health care providers. The chair said revenue trailer bills were still being finalized and would likely come back later in the week; the committee then moved to public comment, with the chair limiting speakers to about one minute each.

Transcript Highlights:

• As chair of Article 3, the largest share of the Texas budget, I'm proud of this budget.
• Article 3, the largest share of the Texas budget. I'm proud of this budget.
• Updated budget forecasts for certain programs created new costs to the budgets.
• This is Mike Morrissey's 40th year, his 20th budget. budget.
• Basically, this makes sure that we stay within the budget parameters of what's budgeted.

Summary: The Senate opened with an invocation and then took up several conference committee matters and resolutions. It granted the House request for a conference committee on House Bill 46 and adopted a conference report on Senate Bill 37, which was described as higher education governance reform, including stronger board authority, changes to faculty senates, general education requirements, and a new ombudsman office. Senators also adopted a large package of resolutions and HCRs by voice vote. A major focus was Senate Bill 12, the “Parental Bill of Rights,” whose conference report was adopted after extended questioning. The bill was described as giving parents more access to school materials and grievance procedures, requiring parental consent for student clubs, and restricting school district employees from assisting with social transitioning or related gender-identity instruction. Senators raised concerns about effects on students already socially transitioned and on parental rights in medical or psychological decisions; the author said the House language was retained in key areas and that districts would need policies and parent notification. The report passed 20-11. The Senate then adopted a resolution allowing the conference committee on Senate Bill 1, the state budget for fiscal years 2026-2027, to go outside the bounds, and later adopted the budget conference report. Senators highlighted major funding for public education, property tax relief, public safety, health and human services, child care, water and transportation infrastructure, and the Texas Energy Fund. The budget discussion also covered higher education, mental health facilities, community attendant wages, rural hospitals, DFPS case management, child care assistance, and a study rider on TRS. The report passed unanimously, 30-0. Finally, the Senate suspended rules to take up Senate Bill 8 and adopted its conference report. The bill requires counties with jails or jail contracts to participate in the federal 287(g) immigration enforcement program, with sheriffs choosing among available models and counties receiving tiered grants to help cover costs. Supporters framed it as a public safety measure targeting criminal illegal aliens, while opponents questioned whether it would divert local resources and increase fear in immigrant communities. The report was adopted after debate.

Transcript Highlights:

• Subsequent budget acts.
• The 2022 Budget Act agreement established a new funding floor starting in this budget year 2025-2026
• Now, on to the Governor's budget proposals.
• budget requests, which was $10 million.
• We will implement in a way that reduces risk.

Keywords: 988, house, all

Transcript Highlights:

• This is Assembly Budget Subcommittee 2 on Human Services.
• And lastly, with the implementation of the Affordable Care Act, we've implemented the Covered California
• With the implementation of the Affordable Care Act, we've implemented the Covered California portal,
• With regards to the federal budget next year, we have not seen any official budget proposals for our
• budget of 2026 will have on our programs.

Summary: The Assembly Budget Subcommittee on Human Services heard an overview of efforts to streamline access to safety net programs and move toward more automatic, person-centered enrollment. CDSS, DHCS, and CalHHS described current cross-enrollment between Medi-Cal, CalFresh, and CalWORKs, including data showing high overlap among programs and a text-message outreach pilot that increased CalWORKs applications and enrollments but reached only a small share of potentially eligible people. Witnesses emphasized barriers such as differing federal eligibility rules, data-sharing limits, privacy concerns, and the need for better technology, consent management, and stakeholder engagement. Members pressed the administration on how to institutionalize these efforts across administrations and asked for concrete budgetary and regulatory steps to support “no wrong door” enrollment and automatic referrals. The committee also reviewed several chair priorities. On the proposed foster care multi-agency office, CDSS said existing coordination structures already address much of the intended work and asked to verify prior fiscal scoring. On the Employment First Office, CalHHS explained that the office’s $1 million budget was eliminated in the 2024-25 budget as part of deficit reductions, while noting that employment for people with intellectual and developmental disabilities remains an administration priority through existing departmental coordination. For the food insecurity proposal, CDSS said it could provide technical assistance but would need new data-sharing agreements, could not separately calculate a CFAP participation rate with current data, and would likely need until July 1, 2027, plus ongoing staffing, to complete the requested report. The mandated reporter proposal drew support for reform, with CDSS estimating low-millions in one-time training costs and ongoing costs in the hundreds of thousands. The subcommittee also discussed a guaranteed income proposal. CalHHS suggested drafting new statutory language and considering a county-administered model rather than a state-run competitive grant process to reduce administrative burden, while members and public commenters urged support for AB 661 and a study of a permanent statewide guaranteed income program. Public testimony also supported automatic enrollment, community-supporting mandated reporting reforms, and cash assistance for fire recovery. In the final items, CSD described how local nonprofit partners helped during the Los Angeles fires with food, housing vouchers, transportation, and emergency energy assistance, and explained that LIHEAP and CSBG remain important but limited tools for disaster response. CSD also said recent federal staffing cuts and possible future federal budget threats could affect LIHEAP and CSBG administration, though no immediate service disruptions had occurred and additional LIHEAP funds were expected to be released soon.

Transcript Highlights:

• we<00:16:04.680> need Implement had been implemented we need Implement had been implemented
• This is not implemented.
• This is not implemented.
• , a lot of the implementation of that budget happens through the private sector.
• <00:48:17.240> of a budget a lot of the implementation of a budget a lot of the implementation

Keywords: 1187, senate, all

Summary: The Senate Finance Committee met on January 9, 2025, to focus on internal controls, fraud prevention, and legislative oversight of state agencies. Legislative Auditor Judy Randall explained Minnesota’s internal control framework, based on the GAO Green Book, and described five core controls: assigning responsibility, separating duties, restricting access, maintaining policies and procedures, and keeping records. She tied each control to examples from recent audits, including DHS’s Medicaid provider debt recovery, the Minnesota State Academies’ travel reimbursement issue, privileged access at the Minnesota State Lottery, missing mileage-verification procedures at the Board of Firefighter Training and Education, and weak documentation in the Board on Aging’s senior nutrition program. Deputy Legislative Auditor Jod Mson Rodriguez then presented a new follow-up report on implementation of prior recommendations from 2022 through 2024, including special reviews. She said the office gathers agency documentation, evaluates progress, and categorizes recommendations from implemented to not applicable, while noting that some items require more work to verify and that this reflects OLA capacity rather than agency performance. Examples included the Department of Commerce, where some policy changes were verified but further work would be needed to confirm consistent investigator compliance, and the Metropolitan Council, where more data analysis would be needed to determine whether bonus payments were properly earned. She also noted that a legislature-directed recommendation to require grant manager training had not been implemented. Overall, OLA reported that state agencies had implemented or partially implemented close to 70% of its recommendations, while the legislature had implemented or partially implemented about 40% of recommendations from the last three years. Members generally praised the office’s work and discussed how agencies respond after reports are issued. Senator Westrom raised concerns about a recent media report on alleged fraud in CCAP, and Randall said OLA was aware of the issue but could not discuss details. Senator Draheim asked about post-report agency engagement, and Randall and Rodriguez said follow-up varies, with some agencies seeking private meetings and others engaging less, but that the follow-up process often prompts further discussion and improvement.

Transcript Highlights:

• budget neutral. Uh but it will show just budget neutral.
• budget bill um authored by the chairs. budget bill um authored by the chairs.
• implement statewide. implement statewide. Thank<00:35:18.160> you.
• the counties implement the legislation? the counties implement the legislation?
• statewide implementation. statewide implementation. Chair<00:36:11.040> West.

Bills: HF2436

Keywords: child welfare, economic assistance, child care, grant program, video security cameras, 1183, house

Transcript Highlights:

• budget.
• 18.160> our about 5% of the general fund budget our about 5% of the general fund budget our budget
• One of the most important benefits of the budget increase is the ability to implement the electronic
• budget historically.
• Yes, the FTE were increased last budget session, so two budget sessions ago.

Bills: HF2432

Keywords: HF2432, judiciary finance bill, public safety finance bill, corrections policy, crime victims, victim services, Minnesota victims of crime account, court fees, marriage license fee, financial crimes, fraud investigations, insurance fraud, Bureau of Criminal Apprehension, BCA, Commerce Fraud Bureau, wage theft, automobile theft prevention, nonprofit security grants, 911 funding, POST Board

Transcript Highlights:

• I consider the governor's budget dead on arrival.
• So, for example... ...to what is in the '26 budget.
• What percent of that bill has been implemented, and what has not been implemented?
• But what else has been implemented, I'm sorry, I can't speak to any of the other implementation.
• budget committee we are adjourned No other items.

Keywords: 1182, all

Summary: The committee first went into executive session and then returned to approve settlements in three risk management cases based on a motion to accept the Attorney General’s proposed settlement. After that, JLBC staff presented item 1 on the School Facilities Division construction cost index, recommending a 4.8% increase for fiscal year 2027 with retroactive application to December 10, 2025; members asked about why prior years had zero adjustments during the Great Recession, and the committee approved the item. Items 2A and 2B concerned Arizona Department of Education reports. For 2A, staff reviewed ADE’s annual federal monies report, noting fiscal 2026 federal funds of $1.38 billion, up from $1.27 billion the prior year, and the committee gave favorable review. For 2B, staff summarized the annual Career and Technical Education District report, including enrollment, expenditures, retention, and credential completion rates; members questioned the low 37% retention rate and asked for more comparative and explanatory data, but the committee still gave favorable review. Item 3A addressed a DES transfer of $3.3 million from the Home and Community-Based Services Medicaid line item to the state-only case management line item for developmental disability services. DES said both areas faced shortfalls and that the transfer would help immediate cash-flow needs, but members raised concerns about growth in the state-only program, possible migration into Arizona for services, fraud controls, and whether the department had formally notified the Legislature of the deficiency. The committee attached conditions requiring formal deficiency letters, monthly reporting on DDD populations by diagnosis, and a review of Minnesota audit findings, then approved the item. Item 3B, the Arizona Training Program at Coolidge annual review, was also approved. Finally, item 4 proposed transferring $650,000 from unused special election funds to the Secretary of State’s cybersecurity monitoring and management budget. The Secretary of State’s office said the money would support 24/7 monitoring, endpoint protection, and remediation of identified vulnerabilities, and members debated the office’s federal outreach and the March 1 deadline tied to county reimbursement for AVID-related costs. Despite concerns from some members about communication and the size of the remaining appropriation, the committee gave favorable review to the $650,000 transfer and then adjourned.

Transcript Highlights:

• However, this budget does the opposite.
• plan for 2020. 25-26, the budget year.
• as the cost to implement the legislation.
• budget change proposals.
• On this budget change proposal to provide funds to Cal ICH to implement legislation AB 799, we don't

Keywords: 988, house, all

Transcript Highlights:

• We had mentioned at the Governor's budget that we'd come back with funding to implement the Salton Sea
• I'm trying to find the reasoning why putting it in the budget proposal, especially a budget that talks
• , this budget year?
• this issue beyond the budget, this budget year?
• For budget reasons, it's supposed to be related to the budget.

Keywords: 988, house, all

Transcript Highlights:

• they move through implementation.
• So that's what we've implemented.
• So that's what we've implemented.
• So that's what we've implemented.
• So that's what we've implemented.

Keywords: 1187, senate, all

Transcript Highlights:

• budget when it comes to federal dollars, almost 50% of the total.
• And so their cost to implement was about $271 million.
• Long-term care has a budget of $12.9 billion.
• Another requirement is to implement cost sharing.
• This provision implements October 2026.

Summary: The Ways and Means Committee held a work session to review how H.R. 1 (the One Big Beautiful Bill Act) could affect Washington’s Medicaid, long-term care, developmental disabilities, and food assistance programs, with a focus on implementation challenges, fiscal impacts, and likely coverage losses. Staff and agency officials explained Washington’s Medicaid financing structure, eligibility categories, caseload trends, and the role of the Health Care Authority and DSHS in administering Apple Health and related services. They also described how Medicaid expansion increased access to behavioral health services and how H.R. 1’s provisions are expected to affect the expansion population most directly. Health Care Authority and DSHS officials outlined several major H.R. 1 changes: new work and community engagement requirements for the Medicaid expansion population, six-month redeterminations instead of annual renewals, changes to immigrant eligibility, limits on provider taxes and state-directed payments, new cost-sharing requirements, reduced retroactive coverage, and changes affecting long-term care eligibility. They said Washington is still awaiting federal guidance on many details, but estimated that about 620,000 Apple Health expansion enrollees could be subject to work requirements, that roughly 30,000 immigrants could lose Medicaid eligibility under the new definition of qualified alien, and that some long-term care and developmental disability clients could be indirectly affected. Officials also said the state is working with other agencies to build shared verification systems and may seek a delay waiver, though they do not expect broad federal flexibility. The committee also heard that H.R. 1 immediately blocks Medicaid reimbursement for Planned Parenthood services for one year, with the state planning to backfill about $11 million to preserve access. In addition, officials warned that the law could reduce federal Medicaid revenue by billions over time and strain hospitals and emergency rooms as more people become uninsured. They noted that Washington’s rural health transformation grant application is due November 5 and could bring some funding, but not to offset coverage losses. No votes were taken; the session was informational only. The committee then heard a separate presentation on food assistance, where staff and DSHS described H.R. 1’s SNAP changes, including expanded work requirements, immigrant eligibility restrictions, higher state administrative costs, and a possible future state share of benefit costs tied to payment error rates. DSHS estimated a four-year fiscal impact of about $750 million for food assistance changes and said the state is working on system and policy changes across agencies before the new requirements take effect.

Transcript Highlights:

• statewide budget pressures.
• Looking to the budget year 2025-26, the state budget plan for UC maintains the 7.95% base reduction,
• If you look at my budget, the budget I get to allocate is about 1.6 to 1.7 billion dollars.
• 2024 Budget Act.
• Into our budget, and we had the payments for that to pay it off in our budget.

Keywords: 988, house, all

Transcript Highlights:

• Last time we tried to implement Last time we tried to implement a<00:19:41.520> Medicaid<
• <00:35:23.760> So when we did the budget. Right. So when we did the budget. Right.
• of the budget.
• the back of the budget cuts.
• The difference line of the budget.

Keywords: 1189, house, all

Summary: The committee met on January 23, 2026, to approve prior minutes and receive an update from the Department of Health and Human Services. The main presentation focused on “Project Compass,” an internal cross-department effort to prepare for changes to Medicaid and SNAP eligibility. Department staff said the goal is to maintain continuous coverage for eligible people, align policy, operations, communications, legal, finance, and eligibility work, and use the new integrated New HEIGHTS system to streamline implementation. They emphasized outreach to beneficiaries, providers, managed care organizations, and other partners, and said temporary manual workarounds had already been used to stay in compliance with fast-moving SNAP changes. Members questioned how the department would avoid repeating the costly outreach effort used in a prior Medicaid work-requirement rollout. Department officials said they are focusing on ex parte processes, sharing eligibility information across programs, and using community partners to reduce duplicate contacts and paperwork. They also said the department is monitoring the SNAP error rate closely, expects automation and a planned system contract amendment to help reduce it, and noted that current error rates are trending downward and remain below the national average. Questions were also raised about possible future SNAP restrictions on certain foods; the department said it can implement whatever the legislature directs, but that defining and administering such restrictions would be complex. The commissioner and CFO then outlined the department’s budget reduction plan. They said the department has begun implementing required “back of the budget” reductions for fiscal year 2026, using contract savings and not cutting existing services where possible. Examples included dental and home-visitation contracts, where spending was adjusted based on utilization and projected need. Officials said they had already written down a little over $15 million in prior-year encumbrances, but that this one-time source will not be available next year, making fiscal year 2027 more difficult. They also explained the difference between legally required back-of-budget cuts and lapse, and said staffing remains a major challenge because vacancies have increased and customer-facing service levels are strained. Dr. Jonathan Ballard then began an update on opioid overdose fatalities, presenting the latest medical examiner data and describing the long-term rise in deaths after fentanyl entered the illicit drug supply, with a peak in 2017 and a later increase in 2022. The transcript cuts off before his full presentation and any further committee action beyond discussion of the minutes and receipt of the department updates.

Transcript Highlights:

• So these proceeds are for the implementation, the rest of the implementation of ServiceNow, which is
• Back to the Budget Stabilization Trust Fund for that.
• This is the proposed budget manuals guideline.
• for the budget hearings.
• We are working with CMS and this body to get those implemented.

Summary: The committee considered several appropriation and transfer requests, beginning with a $273,000 temporary appropriation for the Department of Labor and Licensing to cover administrative costs for its enterprise licensing platform, funded by license and application fees. It then reviewed two large Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation for the final quarter of the fiscal year, and $195 million for the State Broadband Office to support the Arkansas BEAD broadband grant program, including an extra help position and grants to internet service providers. The broadband item drew extensive questions about awardees, contract amendments, accountability, build-out timelines, backup plans if providers default, the definition of broadband serviceable locations, and the cost per location. The State Broadband Director said no providers had requested amendments, the program would use milestone-based disbursements and a four-year build-out period, and the first tranche would serve 51,566 homes and businesses with $126.1 million in grants. Both Section B and Section C items were approved. In Section D, the committee approved a $458,000 transfer within the Department of Correction from the female work release program to the Tucker Unit water treatment plant, a $25 million transfer within the Department of Education to cover declining enrollment, teacher incentive, school recognition, and Easter Seals funding, and a $229,000 transfer for the Department of Shared Administrative Services to support two project management office positions. The education transfer prompted questions about how declining enrollment funding is calculated, how many districts receive it, and how long districts can continue to receive it; agency staff said 152 districts were on the preliminary list and the formula is based on the prior two-year average ADM compared with the previous year. The committee also gave favorable advice on a proposed $4.7 million loan for the Office of State Technology to implement ServiceNow and related IT modernization tools; agency officials said the loan would be repaid through cost recovery rates over five years and would replace an existing loan that is ending, with expected savings from consolidating applications but no precise savings estimate yet. The committee then reviewed cash fund and federal grant requests, including $200,000 for wage and hour claimant payments, $15 million for unclaimed property claims, $8,000 for a heritage program grant, and $1.1 million for a College and Career Coaches grant to expand services in rural districts. It also reviewed pay plan and budget manual items without objection. The most extensive report discussion focused on the Medicaid trust fund, where DHS and DFA officials said the balance has been declining and that the state may need to add capital back into the fund. Senators and representatives asked about the current balance, the projected year-end level, the role of the $100 million set-aside, the impact of outstanding Medicaid rules from the prior session, and whether future federal funding could help reduce long-term Medicaid costs. Officials said they are still working through more than 10 outstanding rules with CMS and do not yet have a final price tag for those changes. The meeting ended after the reports were reviewed and the committee adjourned.