Transcript Highlights:

• We'll also share about some highly impactful impacts of HR1 on our program, and then we'll end with some
• Next. major impacts, uh, the the primary ones major impacts, uh, the the primary ones that<01:29:19.679
• One is on the individuals impacts.
• but um it will have have a slower impact but um it will have an<01:37:59.040><c> impact</c><01:37:59.360
• </c><02:14:41.280><c> individuals</c> factors that we know impact individuals factors that we know impact

Summary: The House Committee on Human Services held an informational briefing on the impacts of federal funding cuts, inflation, labor shortages, and chronic underfunding on Hawaii’s nonprofit social safety net. Hawaii Community Foundation opened with a story about a federal worker family relying on food pantry support, then described a “perfect storm” facing human services nonprofits: historically high demand, rising costs, staffing challenges, federal cuts, and state and county contracts that do not cover true service costs. The foundation said it has reactivated its Hawaii Resilience Fund, launched strengthened service grants, and is tracking policy changes and data to help nonprofits respond. Trey Gordner of UHERO presented research on the vulnerability of Hawaii’s nonprofit sector, explaining a framework that assessed political, financial, and structural risk. He said about 8,200 501(c)(3) nonprofits are active in Hawaii, but only about 200 receive direct federal funds; 74 grants to 59 organizations were flagged as politically at risk, totaling about $126 million in unpaid obligations. He said about 68 of the direct-funding recipients rely on federal funds for more than 20% of annual revenue, and that human services nonprofits are among the most exposed subsectors because they serve vulnerable populations and depend heavily on federal support. Catholic Charities Hawaii and the Hawaii True Cost Coalition said community-based organizations were already under strain before the current crisis, with most contracts not covering full costs and many groups depending on private philanthropy to fill gaps. They reported that half of surveyed organizations expect to reduce programs, more than a third may decline future contracts, and some are waiting months for reimbursements. Examples included reduced shelter admissions, fewer case management hours, and cutbacks in kūpuna services. The coalition urged higher contract rates, regular inflation and cost-of-living reviews, and timely reimbursement; no votes or formal actions were taken. Partners in Development Foundation described the loss of Native Hawaiian education funding as especially damaging, saying the federal Department of Education has zeroed out support that creates a roughly $46 million gap, including about $20 million for early childhood programs. The speaker shared a family story from the Nā Pono program to illustrate how early learning services support both children and parents, and warned that the organization’s federal funds make up 72% of its budget. The briefing ended with a call for continued emergency funding and longer-term structural changes to sustain nonprofits statewide.

Transcript Highlights:

• Chamber of Commerce for its positive impact on the community.
• Inflation and high prices is always a function of a supply-demand mismatch.
• ><c> solution</c><08:34:46.798><c> to</c> solution to inflation, the solution to solution to inflation
• Inflation and high lower uh the cost.
• </c><08:58:52.558><c> in</c> squeezed by the worst inflation in squeezed by the worst inflation in decades

Transcript Highlights:

• COST BY MORE THAN 10 PERCENT AND IN A RECENT VIDEO GEORGIA POWER CONFIRMED DATA CENTERS WILL NOT IMPACT
• WHEN YOU LOOK AT WHAT THE IMPACT IS TO A COMMUNITY $3 MILLION IS QUITE AN INFUSION INTO THE TAX BASE.
• SO BE COGNIZANT OF THAT AS YOU LOOK AT WHAT THE IMPACTS ARE IN YOUR COMMUNITIES.
• SAME IMPACT. JUST A SCALED DOWN VERSION FROM AN ECONOMIC PERSPECTIVE THE PULL ON THE RESOURCES.
• AND CONTINUE TO INNOVATE TO ENSURE THAT ANY ENVIRONMENTAL IMPACTS ARE MITIGATED ESPECIALLY AS ALL OF

Transcript Highlights:

• . has been less than inflation.
• State and local government employee salaries generally have not kept pace with inflation.
• So that Does have a very direct fiscal impact on the state.
• It's unfathomable for what it might impact in terms of society on the plus side and the negative side
• with that 30% refund, with an aggregate cap, so that it's not completely ambivalent to our budget impact

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• We just did the standard inflation index, but I cap it because if we have really bad inflation, I don't
• Inflation goes like this. And so we're trying to account for both.
• A sincere apology for just the oversight of this to those who have been impacted, and with the amendment

Committee: House House Commerce Committee of Reference

Summary: The Commerce Committee heard three bills after announcing that House Bill 2118 would be held. House Bill 2091 would raise the maximum asset-based assessment DIFI can charge domestic insurers to fund financial surveillance staff, with future increases tied to inflation and capped. The sponsor and industry witnesses said the fees had not been updated in 25 years, that Arizona’s insurance regulatory workload has grown substantially, and that the change should help DIFI hire staff, reduce reliance on more expensive contracted work, and not increase premiums. The committee voted 11-0 to give HB 2091 a due pass recommendation. House Bill 2138 would clarify workers’ compensation coverage for professional firefighters injured while traveling to or from work, defining firefighter for that purpose. The sponsor and witnesses from Queen Creek and the fire community said the bill was intended as cleanup language to restore the original legislative intent after a claim was denied because of a statutory loophole, and that the change would protect firefighters and support recruitment and response readiness. The County Supervisors Association said it was neutral but requested counties be removed from the definition because counties do not employ firefighters; a floor amendment was expected to address that. The committee approved HB 2138 11-0. House Bill 2122 made clarifying changes to last year’s reciprocity/endorsement law for registration of BTR-related professions, including reciprocity with the United Kingdom. The sponsor described it as a cleanup bill to fix an omission and support workforce development and commerce, and the only witness offered no additional testimony. The committee passed HB 2122 on an 11-0 vote, and the meeting adjourned after all three bills received due pass recommendations.

Transcript Highlights:

• of how you think about this bill and whether this bill should get signed, there's going to be an impact
• There was speculation that perhaps with inflation, it should have been increased. Mr.
• Colleton indicated we don’t increase those aggregate amounts with inflation like you do with some other
• Madam Chair, members, it doesn’t impact any clean candidates.
• So this wouldn’t impact that. Okay. Thank you. Okay. Thank you. Members, let’s move. Madam Chair.

Summary: The caucus reviewed a long calendar of bills spanning health care, education, tax, public safety, firearms, elections, and family law. On health and education, HB 283 would expand diabetes-related coverage for certain supplies; SB 1126 would require schools to provide records and cooperate with Department of Child Safety caseworkers; SB 1210 would require out-of-state private postsecondary institutions to register in Arizona; and SCR 1006, which would create private causes of action over restroom and pronoun policies in schools, drew strong opposition and was requested to be pulled from consent. Members also discussed HB 2308, which would bar dental insurers from owning dental practices, and SB 1049, which would cap spousal maintenance at four years and change how the marital standard of living is considered; both prompted questions and SB 1049 was pulled from consent. Several tax measures were also reviewed. SB 1293 would limit GPLET abatements by protecting school district revenue, and members noted prior opposition. SB 1294 would clarify county assessors’ authority to prorate destroyed property for tax purposes, though members said they were still researching whether it was necessary. SB 1430, the Tax Corrections Act of 2026, would make technical tax changes and remove redundant language, but members said they wanted Department of Revenue-requested corrections restored. SB 1053 would reduce concealed weapons permit fees for Arizona residents and was pulled from consent after concerns about fee impacts and unresolved amendment language. On public safety and firearms, SB 1058 would prohibit government records distinguishing firearm retailers and firearm owners and was pulled from consent after criticism and reference to a prior veto. SB 1093 would expand riot-related offenses to include property damage and add riot to conspiracy and racketeering provisions. SB 1160 would restrict drones near ticketed entertainment events, with supporters framing it as a public safety measure and clarifying that event-authorized drone use could still be exempt. SB 1211 would allow lifetime injunctions for felony aggravated harassment involving domestic violence. The caucus also considered election-related bills. SB 1006 would raise the threshold for aggregated campaign contribution reporting from under $100 to under $200, and it was pulled from consent. SB 1029 would create a process for terminating a campaign committee after a candidate’s death. SB 1038 would make cast vote records public records, SB 1057 would add fraud countermeasures for paper ballots, and SB 1237 would require consultation with county recorders and legislative leaders before the Secretary of State updates the Elections Procedures Manual. Several of these election bills were noted as having been vetoed previously, and the meeting ended by moving into closed caucus.

Transcript Highlights:

• to those in the state, then we should adjust that to the out-of-state fees, so that way there's no impact
• There was speculation that perhaps, with inflation, it should have been increased. Mr.
• Colleton indicated we don't increase those aggregate amounts with inflation like you do with some other
• Madam Chair, members, it doesn't impact any clean candidates.
• So this wouldn't impact that. Okay. Thank you. Okay. Thank you. Members, let's move.

Summary: The caucus reviewed a long calendar of bills spanning health care, education, tax, elections, firearms, and public safety. HB 283, as amended, would require diabetes-related supplies and monitoring equipment to be covered for people with diabetes. SB 1126 would require schools to provide records and information to Department of Child Safety caseworkers and allow school employees to speak with DCS investigators; it was on consent, though some members said they wanted to study it further. SB 1210 would require certain out-of-state private postsecondary institutions to register with the Arizona State Board for Private Postsecondary Education to protect students, especially those taking online courses. SCR 1006, which would create causes of action related to restroom, changing facility, and pronoun policies in schools, drew strong opposition and was requested to be pulled from consent. Several tax and property bills were discussed. HB 2308 would prohibit dental insurers from owning dental practices, and members noted the committee and Senate had not supported it. SB 1294 would clarify county assessors’ authority to prorate destroyed property for property tax purposes; members said they were still researching whether the bill was necessary. SB 1430, the Tax Corrections Act of 2026, would make technical tax changes and remove redundant language, but members said they wanted Department of Revenue-requested corrections restored. SB 1049 would cap spousal maintenance at four years and change the factors used in setting support; it was pulled from consent. SB 1053 would reduce concealed weapons permit fees for Arizona residents, and members raised concerns about state fee impacts and asked to pull it. The caucus also considered several election and public safety measures. SB 1006 would allow campaign committees to aggregate donations under $200 instead of $100, but members questioned the higher threshold and pulled it. SB 1029 would address committee termination after a candidate’s death. SB 1038 would make cast vote records public, and SB 1057 would add fraud countermeasures for paper ballots; both were noted as vetoed in the prior year. SB 1237 would require the Secretary of State to consult county recorders and legislative election leaders before issuing the elections procedures manual. Other measures included SB 1058, which would restrict government recordkeeping on firearms and merchant category codes and was pulled after members cited a prior veto, SB 1093 on riot, conspiracy, and racketeering definitions, SB 1160 limiting drone operations near ticketed entertainment events with public safety arguments offered in support, and SB 1211 expanding lifetime injunction eligibility for aggravated harassment involving domestic violence. The caucus ended by moving into closed session.

Transcript Highlights:

• The impact of this would prevent us from...
• This would have a significant impact on the... Minnesota Zoo.
• Attempting to address an incoming deficit requires difficult conversations and choices that will impact
• We understand the stress of not knowing what the impact of federal funding cuts and policies will have
• We do know that there's inflation out there, and I think Chair Heintzeman agrees with me on this.

Bills: HF2439

Committee: House Environment and Natural Resources Finance and Policy

Transcript Highlights:

• If we can address that market, it makes a big impact versus direct air, which we think is an important
• I always come back to impact, and one of the most cost-effective ways that we can drive these emissions
• The credit was then raised in 2018, and then again in 2022 with the Inflation Reduction Act.
• We know these barriers limit participation overall, but may especially impact underserved groups.
• Household hazardous waste programs are often among the first services impacted.

Committee: House Environment & Energy

Transcript Highlights:

• So HR 1 is in response to the passage of the Inflation Reduction Act under the Biden administration.
• The impacts to wildlife, community, and tribal perspectives, and direct benefits to local communities
• The impacts to wildlife, community, and tribal perspectives, and direct benefits to local communities
• So any significant delays negatively impact energy projects and the companies that develop them.
• So ratepayers are getting that impact.

Summary: The Assembly Committee on Utilities and Energy held an oversight hearing on accelerating clean energy development and helping projects capture expiring federal tax credits. The chair framed the hearing around federal actions under HR 1, which sharply shortens the timeline for wind and solar projects to qualify for tax credits, and Governor Newsom’s Executive Order N-3325, which directs state agencies to speed siting, permitting, and construction. Sarah Fitzsimmons of the Independent Energy Producers Association explained the federal deadlines, the shift from the 5% safe-harbor test to a physical-work test, and the main bottlenecks California projects face, especially interconnection delays, environmental review, and limited transparency around self-build options for network upgrades. Panelists from the Union of Concerned Scientists, Southern California Edison, and EDF Power Solutions largely agreed that transmission constraints, permitting, and queue management remain the biggest barriers. UCS emphasized long-standing transmission delays, the need for more accountability and standardized reporting, and the importance of keeping reforms focused on the projects most likely to reach completion. SCE said it has increased interconnection throughput through process changes, digital tools, and coordination with regulators, while noting that developers and utilities must work closely together on project-specific issues. EDF described how overlapping permitting, interconnection, and procurement timelines create risk, and argued that clearer policies on self-builds, equipment standards, and affected-system studies could help reduce delays. State agency representatives from the CPUC, CAISO, and Go-Biz reported strong recent clean energy progress, including record levels of new capacity and battery storage coming online, and described ongoing efforts such as the Integrated Resource Planning process, General Order 131-E updates, the Transmission Project Review Process, the Transmission Development Forum, and the TED Task Force. They said these efforts are helping identify delays, improve transparency, and coordinate solutions, including possible self-build arrangements and local permitting reforms. Committee members pressed the agencies on who is ultimately in charge of the effort, whether the state has quantified the ratepayer impact of losing federal tax credits, and whether the 90-day report required by the executive order is complete; the agencies said the report is still in development. Public commenters echoed the need to move beyond monitoring toward stronger prioritization and accountability to meet the 2029 and 2030 project deadlines.

Transcript Highlights:

• So HR 1 is in response to the passing of the Inflation Reduction Act under the Biden administration.
• The impacts to wildlife, community, and tribal perspectives, and direct benefits to local communities
• The impacts to wildlife, community, and tribal perspectives, and direct benefits to local communities
• So any significant delays negatively impact energy projects and the companies that develop them.
• So ratepayers are getting that impact.

Committee: House Utilities and Energy

Transcript Highlights:

• So it felt like that bill perhaps is better suited for the Ways and Means Committee, given the impacts
• That bill perhaps is better suited for the Ways and Means Committee, given the impacts to the general
• That's impacted by inflation on both materials and labor costs, as well as regulatory requirements.
• We've reached out to our members to try and get a sense of the impacts that they're feeling.
• We've reached out to our members to try and get a sense of the impacts that they're feeling.

Bills: SB5989

Committee: Senate Transportation

Keywords: aircraft fuel tax, tax revenue distribution, aviation funding, transportation, state revenue

Transcript Highlights:

• So it felt like that bill perhaps is better suited for the Ways and Means Committee, given the impacts
• That bill perhaps is better suited for the Ways and Means Committee, given the impacts to the general
• I don't think we talk about this enough, but this makes a direct impact for our state's residents to
• That's impacted by inflation on both materials and labor costs, as well as regulatory requirements.
• We've reached out to our members to try and get a sense of the impacts that they're feeling.

Summary: The committee first met in brief executive session and advanced Senate Bill 5989 without recommendation to the Ways and Means Committee. Staff explained the bill would redistribute sales tax on aircraft fuel, affecting general fund revenue, which was why it was better suited for Ways and Means. The motion passed by voice vote. The committee then heard a presentation from Transportation Secretary Julie Meredith on WSDOT’s 2025 work and 2026 priorities. She highlighted agency reorganization, safety initiatives, preservation needs, bridge strikes and storm damage, ferry service improvements, major projects such as Revive I-5, the Interstate Bridge Replacement Project, fish passage work, and preparations for the World Cup. Members praised the department’s communication and work, and asked about additional paving and preservation funding; Meredith said WSDOT had prepared projects that could be advanced if more money were available. Washington State Ferries Assistant Secretary John Vizina and staffer Jenna Forty followed with a detailed briefing on vessel and terminal preservation. They described the aging fleet, the need for new hybrid-electric vessels, the governor’s proposed funding for three additional ferries and life-extension work on older vessels, and the importance of terminal upgrades such as Fauntleroy. Senators asked about service contingency planning, the cost and timing of hybrid versus diesel vessels, and whether additional vessels would require rebidding; staff said hybrid-electric construction is the fastest path and that any expansion would depend on statutory direction and legal review. The committee then heard from local government representatives on preservation and storm recovery. The Association of Washington Cities and the Transportation Improvement Board described city road and bridge needs, limited local funding, and the importance of sustained preservation investment and programmatic grants. County representatives from the Washington State Association of County Engineers, Snohomish County, and the County Road Administration Board discussed the December flooding, road washouts, bridge damage, and recovery costs, emphasizing that counties face large preservation backlogs and need state and federal help for repairs and resiliency.

Transcript Highlights:

• Can you talk a little bit more about U of H's downtown's impact on Houston's workforce?
• Our next request is for $4.7 million to help us deal with increasing costs. and inflation.
• Slides 3 and 4 illustrate those priorities that impact all of our universities.
• So think of what a similar endowment could do. impact health care.
• Impacting campus security, cyber security in very significant ways.

Committee: House Appropriations - S/C on Article III

Transcript Highlights:

• Legislative Commission to study the future of payments and sales transactions by credit card and the impacts
• State-chartered banks would be impacted, while national and federally chartered institutions would not
• would be regulated by the Office of the Comptroller of the Currency, so the interchange law would not impact
• they would be regulated by the Office of the Comptural of Currency, so the interchange law would not impact
• The interchange fees that are charged on every card transaction act as an inflation multiplier and make

Summary: The Special Legislative Commission studying the future of credit card payments and their impacts on small businesses held what leaders described as its last public hearing, though they said the commission would continue meeting to develop a report and recommendations. Chair Paul Feeney and other members noted the issue is complex and that they had sought testimony from a wide range of stakeholders before moving into a more deliberative phase. The commission adjourned after hearing from several in-person and virtual witnesses. Banking and card-industry witnesses, including the Massachusetts Bankers Association, the Card Coalition, the Electronic Payments Coalition, and others, argued that payment cards provide major benefits to consumers and merchants, including convenience, fraud protection, fast settlement, and broad access to electronic commerce. They warned that state-level changes to interchange rules could create a patchwork of conflicting requirements, disrupt global payment systems, and especially affect state-chartered community banks and small businesses. Several also said recent federal actions and litigation, including OCC and NCUA preemption rules and the Illinois interchange-fee litigation, have limited the practical reach of state laws. Restaurant, retail, and convenience-store witnesses pushed for relief from swipe fees, saying independent businesses operate on thin margins and pay fees on amounts that are not really their revenue, such as sales tax and gratuities. They urged transparency, the ability to surcharge, vendor compensation for tax collection, and limits on interchange or related fees. Some witnesses said merchants bear significant fraud and chargeback costs and that banks and card networks have not offered enough direct relief. Commissioners asked questions about surcharging, fee regulation, fraud, and whether industry should share more of the burden. No votes or formal actions were taken beyond adjourning the hearing.

Transcript Highlights:

• the Commonwealth over the past several years while blunting the impact of the Trump administration's
• the Commonwealth over the past several years while blunting the impact of the Trump administration's
• They also rescinded vital funds from the Inflation Reduction Act.
• many of our neighbors, Bills rising far faster than inflation, forcing too many of our neighbors to
• He leaves behind a lasting impact on Fall River, Durfee High School, and the generations of students,

Summary: The House opened with the Pledge of Allegiance and then took up several procedural matters, including adopting a resolution recognizing the work of Ukraine Forward and suspending Joint Rule 12 for a number of petitions. The chamber also scheduled several bills for later consideration, including measures on unemployment insurance for fluctuating work schedules, the Medical Society mission statement, a youth training wage, bridge and intersection namings, handicapped parking fines, public-way safety, excavation restoration, motor vehicle safety, and a Newton police age requirement. Two engrossed local bills were passed to be enacted: one authorizing retired police officers as special police in Plainville and another allowing Orange to increase its Board of Selectmen membership. The main policy debate centered on House No. 5151, An Act relative to energy affordability, clean power, and economic competitiveness. Supporters described it as a broad affordability and clean-energy package that would cut costs for ratepayers, reform Mass Save, speed clean-energy procurement and interconnection, return a portion of alternative compliance payments to customers, and address biomass and other energy issues. Opponents argued the bill relied too heavily on long-term programs and new administrative structures while offering little immediate relief, and raised concerns about costs being shifted to consumers, impacts on natural gas, and the pace of implementation. Several amendments were debated and rejected, including proposals to shift public benefit charges away from peak hours, pause public benefit charges for a year, require greater utility disclosure before rate increases, and add a forest-clearing penalty for solar development. One amendment to the energy bill was adopted: a consolidated amendment that included budget-billing consumer protections for gas customers, requiring notice and conservation recommendations when usage rises significantly. The House also adopted an amendment to a separate conservation-restriction bill for Hanson, changing a figure in the underlying law, and passed that bill to be engrossed as amended. The energy bill’s consolidated amendment passed by roll call, while several other amendments failed by roll call votes. The House observed multiple moments of silence honoring Jaden Booker, Thomas Skip Karam, former Freetown Police Chief Carlton Abbott, and former Representative and Senator William Q. “Biff” McLean, Jr.

Transcript Highlights:

• Current thresholds have not been adjusted in about 40 years, not even to take into account inflation.
• Affordable access to child care is one of the most impactful. and their general planning.
• Why would the carpenters, who have made this their number one priority, support a bill that impacted
• That's nearly three times the rate of inflation.
• That's nearly three times the rate of inflation.

Transcript Highlights:

• What is the cost impact of the pilot and what is the financial impact when it comes to affordability
• , that certainly impacts my behavior.
• We already know that it can make an impact because we've seen it in action.
• We want to make sure that any impacts to this bill do not impact our public utility affordability, safety
• And those impacts could impact the city's ability to provide safe and clean drinking water to the community

Summary: The committee heard several energy and water affordability bills, with extensive testimony on SB 254 by Senator Becker, SB 541 by Senator Becker, SB 453 by Senator Stern, SB 292 by Senator Caballero, and SB 473 by Senator Padilla. SB 254 was presented as a broad utility affordability package addressing short-term climate credits, a Power Fund, tighter scrutiny of rate increases and utility profits, wildfire spending, securitization of future utility costs, and streamlining. Supporters, including TURN and several environmental and public power groups, said it could lower bills and reduce long-term costs; opponents from investor-owned utilities, labor, business, and local government raised concerns about market impacts, insufficient analysis, and the breadth of the bill. The committee approved SB 254 on a 6-3 vote and placed it on call. SB 541 focused on load flexibility and using existing grid capacity more efficiently. Senator Becker described it as a transparency and planning measure to identify cost-effective load shifting and reduce peak demand, while supporters said it could improve resiliency and save money. Several CCAs and utilities opposed the bill in print or unless amended, arguing that some language implied a mandate and that the concept needed more cost-effectiveness analysis; the author said amendments would remove language dividing the state goal among retail suppliers and clarify that the bill is not a procurement mandate. The committee passed SB 541 as amended to Appropriations on a 9-1 vote and left it on call. SB 453 by Senator Stern would return unspent ratepayer-funded microgrid program dollars and was described as a way to keep the lights on and redirect unused funds. It drew support from local government and environmental groups, with PG&E expressing concern about how the bill would affect its ability to spend awarded funds. The committee passed SB 453 as amended to Appropriations on a 12-0 vote. SB 292 by Senator Caballero would require more granular outage and reliability reporting, including census-tract-level data, to better inform resilience planning after PSPS events; utilities opposed unless amended, citing duplicative reporting and regulatory overlap, but the bill passed 12-0 to Appropriations. SB 473 by Senator Padilla would require or expand water utility decoupling to promote conservation and affordability. Supporters, including water utilities, labor, business, and local government groups, argued decoupling stabilizes revenue, supports conservation, and can keep rates lower for low-use customers. The Public Advocates Office opposed, saying prior pilot data showed no conservation benefit and about $1 billion in added costs, and that the CPUC had already rejected similar requests. Committee members questioned the conservation and capital-investment effects of the different rate structures; the author and supporters argued decoupling helps utilities fund infrastructure while allowing lower fixed charges for low-use customers. The transcript ends during that discussion, before a final vote on SB 473 is shown.

Transcript Highlights:

• But how has any of this translated into your economic impact or your jobs impact numbers as well?
• But how has any of this translated into your economic impact or your jobs impact numbers as well?
• international impact?
• but also the international impact I mean it's you know I don't know that we both local impact, but also
• the international impact.

Summary: The Assembly Committee on Arts, Entertainment, Sports, and Tourism held an informational hearing on the state of California tourism amid declining international visitation and broader economic and political headwinds. Visit California CEO Caroline Betetta said the industry remains a major economic driver, with 2024 visitor spending of $157 billion, 1.2 million jobs supported, and $12.7 billion in state and local tax revenue, but warned that 2025 forecasts show the first post-pandemic decline in visitation, driven largely by a projected 9.2% drop in international travel. She cited concerns about the strong dollar, visa wait times, border and immigration rhetoric, and a proposed federal visa integrity fee, while emphasizing Visit California’s marketing campaigns and the importance of upcoming mega-events like the World Cup and 2028 Olympics. A second panel of destination leaders described local impacts and strategies. Visit Sacramento’s Mike Testa said the city has diversified beyond conventions into music festivals, sports, and food events, but noted that international apprehension is affecting events like Terra Madre Americas and that California should do more to incentivize major festivals to stay in-state. Santa Monica Travel and Tourism’s Lauren Salisbury said the city is seeing lower international visitation, especially from Canada, Australia, and Europe, and that wildfire coverage and later federal troop presence in Los Angeles hurt local sentiment and caused cancellations. Yosemite Sierra Visitors Bureau’s Rhonda Salisbury reported steep drops in international visitation to the gateway region, ongoing concerns about wildfire, reservations, insurance costs, and park access, and praised a new federal requirement for quarterly meetings between national parks and gateway communities. San Diego Tourism Authority COO Carrie Verbeck-Cappich said tourism is the region’s second-largest sector, but 2025 is softer than 2024, with spending down despite modest visitation growth. She pointed to weaker Canadian and Asian travel, government-related meeting cancellations, and the need for more support to bid on and host major events; she also highlighted border-crossing delays, insufficient federal staffing at ports of entry, and the Tijuana River sewage crisis as major regional issues. Committee members discussed the effects of federal rhetoric, infrastructure, and cross-border conditions on tourism, and several witnesses urged continued support for Visit California, Brand USA, event incentives, and efforts to present California as welcoming and open. Public comment then opened, beginning with testimony from the California Attractions and Parks Association.

Transcript Highlights:

• um these programs for DCYF that impacted um these programs specifically<00:05:07.199><c> in</c><00:05
• </c> pro more programs that that in impact pro more programs that that in impact the<00:39:40.720><c>
• We've got the inflator for great base.
• </c><01:28:24.560><c> There</c> with inflation starting next year.
• There with inflation starting next year.

Committee: Senate Education Finance