Transcript Highlights:

• To do this, the executive office of the governor must designate a transition liaison.
• administration, overseeing and coordinating transition planning, creating a transition directory that
• training, and establishing instructions for agency transition liaisons.
• team, along with providing the transition staff access to agency leadership personnel during the transition
• team, along with providing the transition staff access to agency leadership personnel during the transition

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard and reported favorably several bills. CS/SB 800 would increase penalties for repeated unlicensed engineering practice and create an engineering student loan assistance program funded by licensure fees and fines; Senator Sharif asked about restitution for victims, and the sponsor said the bill does not create a reimbursement mechanism. CS/SB 576 would create a local government cybersecurity protection program administered by Florida Digital Service, with state purchasing support, grant access, and data-sharing requirements; local government and cybersecurity groups waived in support. CS/SB 1078 would establish transition procedures between gubernatorial administrations, including liaisons, briefing books, office space, IT access, and access to agency records under a signed confidentiality agreement. The committee also reported favorably CS/SB 314 on payment stablecoin issuers, CS/SB 530 updating lottery operations and security rules, CS/SB 1614 giving JAC/LAC-related audit findings more enforcement effect for local governments seeking state funds, SB 990 authorizing protective cell captive insurance companies, SB 1588 beginning implementation of the prior gold-and-silver legal tender law, CS/SB 1440 adding cybersecurity-related exemptions and reporting provisions for financial institutions, and CS/SB 1568 creating a stablecoin pilot program for DFS fee payments. Several bills had support testimony from state agencies and industry groups, and some included technical or guardrail amendments that were adopted without objection. The committee also received a budget overview highlighting major funding items, including more than $350 million for Florida Forever, $738 million for Everglades restoration, more than $500 million for water quality projects outside the Everglades, $60 million for Farmers Feeding Florida, and more than $250 million for citrus recovery. Members asked questions about school lunch funding, state park improvements, land acquisition, water quality funding, gaming enforcement offices, and staffing for PERC. After the bills and budget discussion, members recorded a few affirmative votes on selected tabs, and the committee adjourned.

Transcript Highlights:

• How's that transition?
• or does the cost vary widely between the 18 projects? I wouldn't say it varies widely.
• The total amount of projects under due diligence, is $5.3 billion, so divided by 18. Right.
• So these are tax dollars. subsidizing private projects, is that right? That's correct. OK.
• We work with them daily regarding their due diligence of these projects.

Keywords: 1184, house, all

Transcript Highlights:

• <00:04:46.320> with supporting demonstration projects with supporting demonstration projects
• <00:04:50.960> partners startups their local project partners startups their local project
• with three projects throughout the state with three projects throughout the state and<00:24:39.200><
• excess of5 billion dollars of projects excess of5 billion dollars of projects that<00:26:49.559>
• <00:50:02.960> I you all for considering the project I you all for considering the project

Bills: HF1013, HF1598, HF1656, HF2162

Keywords: energy, economic development, funding, renewable resources, Clean Energy Economy Minnesota, air ventilation, geothermal, school financing, Minnesota Climate Innovative Finance Authority, geothermal energy, renewable energy, construction funding, Como Zoo, energy efficiency, HF2162, Minnesota, planning grants, renewable development account, clean energy, Department of Commerce

Transcript Highlights:

• from 2009 to 2018 where I was a project from 2009 to 2018 where I was a project manager<00:02:26.319
• So, a 400 megawatt project So, a 400 megawatt project represents<00:11:32.480> a<00:11:32.800
• You all may have seen a similar stat for manufacturing projects, and manufacturing projects have exactly
• manufacturing projects and manufacturing projects<00:19:04.000> have<00:19:04.320> exactly
• and you know they do want to transition and you know they do want to transition to<00:55:44.400>

Keywords: Meeting Start - 00:00 Roll Call – 00:15 Approval of Minutes of the July 15, 2025, Meeting 00:55 Helping Power Kentucky’s Growth – 01:25 Powering and Deploying AI – 41:00 Fueling America’s Intelligence – 56:12 Adjournment – 01:10:37, 958, all

Summary: The Artificial Intelligence Task Force met with a quorum, adopted prior meeting minutes, and then focused on energy policy and economic development as they relate to AI and data centers. John Bevington of LG&E and KU, introduced by Caroline Clark of LG&E/KU and PPL, described the utility’s Kentucky-only service territory, vertically integrated system, 1.3 million customers, and about 7.5 gigawatts of generating capacity. He said the company has supported 76 Kentucky projects in 2024 totaling about $3 billion in announced investment and roughly 3,000 jobs, with a large share of statewide announcements occurring in its service area. Bevington said LG&E and KU’s current project pipeline is unusually strong, totaling about 170 projects and 8.5 gigawatts of requested power, with data centers accounting for about two-thirds of that demand. He broke the pipeline into existing customer expansions, new-to-Kentucky projects, and 20 data center projects representing about 5.6 gigawatts of potential load. He highlighted a Louisville data center project by PO Development Company and Powerhouse Data Centers that has announced a 400-megawatt facility and may expand to 525 megawatts, estimating that such a project could represent about $4 billion in investment. He also explained that large data centers generally must locate near transmission lines and that utilities must conduct studies, order long-lead equipment, and secure reimbursement commitments before proceeding so other customers are not harmed. Members asked about how Kentucky compares with other states, the size of data center projects, and whether regulatory reform is needed. Bevington said the 20 projects reflect current Kentucky interest, which he attributed in part to the state’s sales tax exemption for data centers, and noted that states like Ohio have had similar incentives for years. In response to questions from Senator Thomas, he confirmed that data centers can vary in size and said the state should have a regulatory environment that supports economic development, while emphasizing that the benefits would flow to the state, local communities, and schools rather than just the utility. He also cited national and regional data suggesting data centers generate indirect jobs and tax revenue, and said LG&E and KU are investing in transmission, reliability, solar, and gas generation projects, including proposed additional 645-megawatt natural gas units and other system upgrades, to meet expected demand.

Transcript Highlights:

• This project is really exciting for us.
• This project is really exciting for us.
• You know, talk about that project. We are actually on track with that project.
• So a lot of times you see these projects as larger, longer-term projects, and you don't see a lot of
• That project has kind of been in flux.

Summary: The Department of Public Safety presented its FY27 budget request, emphasizing three priorities: improving community engagement through a redesigned website and outreach, expanding statewide data and intelligence integration through intelligence-led policing, and improving emergency response and officer safety through fleet replacement, a driving track, and a requested helicopter. DPS said much of its increase is driven by rising health care premiums, and it is also seeking special appropriations for fleet replacement, the website rebuild, and an Honor Guard program created after the 2022 helicopter crash that killed four public servants. Members asked about vacancies, fleet costs, cybersecurity compliance, the real-time crime center, EV fleet participation, and the Metro DPS facility. DPS said its vacancy rate is about 9%, its fleet replacement needs are driven by mileage and condition, it is compliant with federal CJIS standards even though DoIT has raised concerns, the real-time crime center would be built as a regional model to complement Albuquerque’s center, and the Metro facility is moving toward a January groundbreaking. Committee members also discussed several DPS-related capital and IT requests, including the intelligence-led policing data lake, recurring maintenance for critical systems, and a $5.6 million reauthorization for state crime lab DNA backlog work and a $900,000 reauthorization for fingerprinting equipment. DPS explained that the website request is high because the current site must be rebuilt from scratch to support missing-person alerts, memorial updates, ADA compliance, and better communication with law enforcement and the public. Members also raised concerns about speed enforcement, construction-zone cameras, and whether EVs are practical for patrol use; DPS said it is not pursuing speed cameras and is only partially participating in the state EV initiative because patrol needs make full electrification difficult. The committee then received an LFC quarterly update on non-recurring appropriations from the 2025 General Appropriation Act. LFC reported that of the $1.4 billion appropriated in Section 5, $164 million had been expended and $333 million encumbered, leaving $897.4 million unspent, which is a slower pace than the prior year. Staff highlighted a number of reauthorization requests and slow-moving projects across agencies, including AOC cybersecurity funding, DFA housing and public safety grants, DoIT cybersecurity and higher education funds, EDD economic development and energy programs, OSI mitigation and malpractice funds, EMNRD energy and geothermal grants, Health Care Authority behavioral health-related appropriations, DPS crime lab and fingerprinting funds, PED career technical education and special education initiatives, and higher education loan repayment and technology funds. Members questioned why some large appropriations had little or no spending, discussed the need to monitor reauthorizations more closely, and asked for follow-up on several specific line items and project balances.

Transcript Highlights:

• , Charles County Transit, City and Annapolis, Harford, MTA, Montgomery County, Rydon, Partners and Care
• ,<00:09:21.760> Charles<00:09:22.080> County<00:09:22.399> Transit, Cecil Transit
• , Charles County Transit, Cecil Transit, Charles County Transit, City<00:09:23.279> and<00:09:
• , RTA of Central Maryland, Shore Transit, RTA of Central Maryland, Shore Transit, Harford<00:09:32.000
• In the case that it is pretty, you know, as significant as being projected, there's a chance we will

Keywords: Senate streaming session for Thursday, January 22, 2026, 960, senate, all

Summary: The Maryland Senate convened with an invocation by Reverend Abi Johni of Cedar Lane Unitarian Universalist Church, followed by the roll call establishing a quorum with 44 members present. The chamber then featured numerous introductions and recognitions, including legislative interns, a shadowing student, a constituent assisting this session, visiting advocacy groups such as the Maryland Bankers Association, the Transportation Association of Maryland, and the Maryland Association of CPAs, as well as several pages and other guests. Members also announced upcoming caucus and delegation events, committee briefings, and weather-related schedule contingencies. On the legislative side, the Senate received bill introductions, including Senate Bill 314 on immunity from liability for donations of pet supplies in judicial proceedings, and a bond initiative for a neighborhood community track and field project, which was referred to the capital budget subcommittee. The main floor action was consideration of Rule 116; after brief discussion, the Senate adopted the rule by a unanimous 44-0 vote, completing adoption of the Senate rules. Committee announcements noted upcoming hearings and briefings: Finance planned briefings on health insurance subsidies and private passenger auto insurance; Education, Energy, and the Environment scheduled briefings on climate-smart agriculture and federal policy impacts; Budget and Taxation planned an interagency commission briefing; and Judicial Proceedings announced 12 bill hearings, including two lengthy bills. The Senate also journalized the invocation, recognized the new leadership of the Maryland Legislative Black Caucus, and adjourned until the next pro forma session, with the adjournment also honoring Edward Risinger, a former Baltimore City Council member who had recently died.

Transcript Highlights:

• He had been born female, but he socially transitioned to male, and I saw his whole world open up.
• <03:24:51.000> is initiated assuming social transition is initiated assuming social transition
• <05:15:24.240> time<05:15:24.958> when this is a transitional time when this is a transitional
• <05:32:29.400> varies not continue with transition varies not continue with transition varies
• My son did not feel he should have female breasts at this stage in my son's transition.

Keywords: 1189, house, all

Transcript Highlights:

• <00:09:58.720> process during this transition process during this transition process is,<00
• So So I know that there's some project.
• mean the difference between a project mean the difference between a project coming<00:31:42.559>
• <00:31:44.480> staying coming to reality or a project staying coming to reality or a project
• . transitioning. transitioning.

Keywords: Meeting Start: 00:00:00 Roll Call 00:00:11 Discussion of County Clerks’ Land Records Update 00:02:42 Discussion of Area Development Districts 00:22:48 Discussion of Legislative Measures 00:50:09 Discussion of Local Taxing Sources 01:02:33 Adjournment 01:29:16, 958, all

Summary: The committee first took up an update from the Kentucky County Clerks Association on the transition to electronic recording and land records modernization. Testimony explained that legislation from the 2021 task force created funding and deadlines for counties to provide online search portals and complete a 30-year property record search, with a later move to a 60-year standard. Speakers said the money has been awarded to counties, but much of the work is still in progress because records must be scanned, indexed, and manually verified. They said only a handful of counties are fully compliant with electronic recording so far, while many are still working through staffing and vendor issues. They also noted that the 60-year standard may ultimately be easier and more efficient to complete than the 30-year standard, and that compliance is expected to improve by next summer. The clerks’ representatives also raised related issues, including deed fraud, the county document storage fee, and KDLA digitization grants. They said online recording can make deed fraud easier to attempt, so they expect to seek legislation next session to address it. They described an existing notification service available in many counties that alerts property owners when a document is recorded, which can help detect suspicious activity quickly. They also said the storage fee and separate county account structure has generally worked well, but that two recent KDLA grant cycles have not released money for clerks, limiting support for digitization work. Another topic was whether, once records are fully digitized and verified, some permanent records should remain publicly accessible or be moved to a safer archive under KDLA control. Members asked about the balance in the KDLA fund, what the General Assembly could do to help lagging counties, and how much of the $25 million modernization funding had been spent. Witnesses said they did not have the current fund balance but would try to get it, that the main obstacle now appears to be staffing rather than additional money, and that the funds have been awarded but not fully expended because work is still ongoing. They emphasized that counties are helping one another and asked members to alert association leadership if any county is struggling. The committee then heard a presentation from Dan London, executive director of the Lincoln Trail Area Development District, who described area development districts as regional staff extensions and technical resources for cities and counties, and highlighted their role in coordinating regional services and partnerships across county lines.

Transcript Highlights:

• These are going to be launch-ready projects.
• They're able to ...health project.
• I’ll start with that number three on the transitional.
• services caseload than previously projected.
• The caseload projection for this year is...

Keywords: 987, senate, all

Transcript Highlights:

• I just want to clarify that our projections are based on data from the agency, not the agency's projections
• By what year do you project that it will finally be resolved?
• Pearson, what do you project?
• Now to Item 2, Office of Community-Based Care Transition.
• And a lot of times what we see is that when people transition and region's transition to CBC and rightfully

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• Wolgamott represents. transition grants to help communities transition grants to help communities that
• production transition to new industries. production transition to new industries.
• :42.399> Renewable dollars and projects, the Renewable dollars and projects, the Renewable Development
• Thank you. district, even if the projects don't district, even if the projects don't happen<00:30:06.159
• <00:38:15.119> to you know, what what is projected to you know, what what is projected to

Keywords: 1183, house

Transcript Highlights:

• We have 27 projects.
• We see it ramping up over OK projects for as I mentioned.
• FY2025 was a transition year, resulting in nine awards.
• This slide outlines Zoey Keogh's priority projects for FY2027.
• This does include day one of our project budget.

Keywords: 914, all

Transcript Highlights:

• We have transitioned all hepc treatment to 340B pricing as well as HIV.
• One of our projects That we're going to go forward this year is tasers.
• Total number of inmates participating and Completing reentry transition.
• Projects for 27 are continued transition to mobile check-in access for probation and parole visits.
• This was two different projects.

Keywords: 914, all

Transcript Highlights:

• Our projections just continue to increase.
• There are a couple of replacement projects.
• One of the big ones, I joked that this is the never-ending project, the boiler replacement project.
• So that's a pretty substantial project.
• And so that's a pretty substantial project.

Keywords: 908, all

Transcript Highlights:

• How's that transition?
• I mean, it's been a while, but how's that transition been because you, you, you just.
• Um The total amount of projects under due diligence is 5.3 billion, so divided by 18.
• So this, these are tax dollars subsidizing private projects. Is that right?
• So that might be one consideration for continuing the projects.

Transcript Highlights:

• <00:03:14.319> plan establishment of a capital project plan establishment of a capital project
• worrying about funding the same project worrying about funding the same project over<00:08:08.319
• project by over three years. project by over three years.
• It had walkable access to Metro Transit It had walkable access to Metro Transit Hub,<00:18:48.000
• worked excited for that. the project has worked excited for that. the project has worked for<00:25

Keywords: 1183, house

Transcript Highlights:

• Things to focus on to prioritize these clean energy projects and affordable housing projects that we
• , that's when projects can die.
• or neighborhoods by clean energy projects.
• would meaningfully improve project would meaningfully improve project timelines,<00:15:45.600>
• This project is ready. The theoretical. This project is ready.

Bills: HB1979

Keywords: environmental review, affordable housing, clean energy, judicial proceedings, public participation, Hawaii Revised Statutes, 912, senate, all

Summary: The committee heard testimony on HB 1979 HD3, which would shorten the time to file certain judicial challenges to environmental assessments and environmental impact statements for affordable housing and clean energy projects, and would also affect transfer of some environmental court appeals to the Supreme Court. The Office of Planning and Sustainable Development supported the amended bill, saying the changes were improved from earlier versions and that the shorter filing period was reasonable for these priority projects. Hawaii Gas asked that the bill’s clean energy definition be broadened to align with existing renewable energy law so emerging technologies like renewable hydrogen and renewable gas would be included. Kauai Island Utility Co-op and Greenpeace Hawaii testified in support and opposition, respectively, with supporters arguing the bill would reduce litigation uncertainty and opponents saying the shorter deadline would limit public participation and not solve the real causes of project delays. Opposition testimony came from the Office of Hawaiian Affairs, Earthjustice, Sierra Club, 350 Hawaii, and others, who argued the bill could chill legitimate public-interest claims, especially where there is limited public notice, and that environmental review was being unfairly blamed for delays caused by permitting, financing, or infrastructure problems. Several speakers said the measure would reduce transparency and make it harder for communities to respond in time. One testifier from Earthjustice said the environmental review process itself is not the problem and should not be weakened for projects that still need public disclosure and community engagement. The committee then moved to decision-making and, citing the volume of opposition and concerns about public participation, transparency, and whether the bill would actually improve timelines, the chair deferred HB 1979 HD3 indefinitely. The hearing was adjourned after the vote decision was announced. The transcript then shifted to HB 2585, relating to tourism and statewide standards for agritourism. Testimony was mixed: farmers and agricultural groups described agritourism as essential to keeping small farms and ranches viable, while also urging safeguards so it would not be abused or displace real agricultural production. Some speakers warned the bill’s revenue-based limits could unintentionally shut down existing farm stays and related operations, especially in Maui County. The Hawaii Farm Bureau said it supported the intent but wanted clearer protections for bona fide agriculture and more flexibility around revenue requirements and force majeure situations. The discussion was still underway when the transcript ended.

Transcript Highlights:

• In particular, we support TOD projects, as we are co-chairs along with OPSD on the state's transit-oriented
• In particular, we support TOD projects, as we are co-chairs along with OPSD on the state's transit-oriented
• In particular, we support TOD projects, as we are co-chairs along with OPSD on the state's transit-oriented
• It also establishes a programmatic approach for affordable housing projects within transit-oriented development
• It also establishes a programmatic approach for affordable housing projects within transit-oriented development

Keywords: 910, house, all

Summary: The committee heard several measures, beginning with SB 946 on wastewater management, which would clarify that the ban on discharging wastewater or raw sewage into state waters after 12/31/26 applies to treatment plants. Testimony was in support from the Department of Health, Maui County Council, Mayor Bisson, and individuals, and no one testified in opposition. SB 849 on wildlife conservation would prohibit intentional taking, harming, or killing of the Hawaiian hawk (ʻio) and increase penalties for taking native aquatic life, wildlife, and land plants; DLNR supported the bill, noting the ʻio was delisted federally in 2020 and that the measure also updates penalties and adds a rehabilitation/community service option. No questions were raised, and the bill drew support testimony only. For SB 330 on invasive species prevention, the Attorney General raised a supremacy clause concern with language requiring state enforcement of federal quarantines and recommended reverting to a prior version with a catchall for federal regulation. The Coordinating Group on Alien Pest Species supported the bill as a way to close a biosecurity gap, while the Department of Agriculture said it supported the intent but wanted to avoid acting without a cooperative agreement with USDA and suggested deleting the portion allowing action without such an agreement. The committee also heard SB 1393 on public land use, which would require the School Facilities Authority to consult with DOE and other agencies before land conveyances or leases and repeal a requirement that DOE transfer title upon request; both SFA and DOE supported the measure, with DOE emphasizing the need for early communication and consultation, and members asked about possible disagreements or stalemates. The committee then heard SB 321 on private roads and ways, which would deem certain privately owned roads and similar ways transferred to adjacent owners or community associations if conditions are met. The Hawaii Land Title Association said the bill as drafted would create uncertainty and proposed a court process to clarify ownership and create a recordable order; written support came from the Mortgage Bankers Association of Hawaii, Hawaii Financial Services Association, and one individual. SB 66 on housing permitting would require permit decisions within 60 days for certain housing projects and deem permits approved in some circumstances; DLNR’s historic preservation office supported the intent but noted county historic preservation roles, OHA suggested amendments to clarify county duties, and DPP opposed the time limits as risky for health and safety reviews, warning about back-and-forth review cycles and possible mismatches between approved plans and field work. Realtors, NAIOP, Hawaii Food Industry Association, Hawaii YIMBY, and the Maui Chamber supported the measure, while Lahaina Strong, Hawaii Good Neighbor, and two individuals opposed it. Finally, the committee heard SB 1170 on expeditious redevelopment of affordable rental housing, which would speed permits for rebuilding permanently affordable multifamily rental housing damaged by natural disasters and exempt certain projects from EIS requirements. HHFDC supported the bill, citing the Front Street Apartments rebuild and the long SMA permit timeline on Maui, and the Office of Planning and Sustainable Development supported the intent while suggesting technical placement of amendments. Testimony in support also came from the Maui Chamber of Commerce and Joe Blanco, who described difficulties rebuilding a project originally developed under older statutory requirements and said the bill’s added language addressed those issues.

Transcript Highlights:

• Anyway, the project eventually got abandoned. They were halfway through doing it.
• This is Florida's next great restoration project.
• We did projects that had unintended consequences we were not aware of at the time.
• And so, you know, I know this is a big project. It's going to cost a lot of money.
• , as our firefighters and our fire districts start to transition to eliminating PFAS.

Summary: The Committee on Environment and Natural Resources heard and advanced several bills. SB 958, by Senator Bradley, would require local straw and stirrer ordinances to allow renewable, certified compostable, and marine-biodegradable products, with supporters arguing it creates standards and avoids patchwork local rules; it was reported favorably. SB 1066, by Senator Brodeur, proposed a phased restoration of the Ocklawaha/Rodman Dam area, including partial dam restoration, recreation and economic development planning, and a local advisory council; testimony was strongly divided between restoration supporters and local officials concerned about water supply, reservoir value, and community impacts. The committee adopted an amendment adding a Naval Air Station Jacksonville representative to the advisory council, then reported the bill favorably as amended. The committee also approved CS/SB 698 by Senator Martin, which would let builders proceed with home construction after applying for septic permits rather than waiting for the permit to be issued first. Testimony from builders and industry representatives focused on permitting delays, contract pricing, and the need for a glide path if DEP rules change; some senators raised concerns about the 120-day transition period, but the bill passed favorably with a technical amendment. CS/SB 1230, by Senator Harrell, would phase out PFAS-containing firefighting foam for non-emergency use, require inventory and disposal reporting, create DEP rules and a registry of alternatives, and establish grant/cost-savings support for local agencies; it was reported favorably after an amendment clarifying DEP references and penalty language. Finally, the committee approved CS/SB 1288, also by Senator Harrell, to designate a water body feature in the Jupiter Narrows area as the Andrew Red Harris Shoal in honor of a local environmental advocate who died rescuing a friend. The bill was amended to clarify the shoal identification and then reported favorably. At the end of the meeting, senators requested the record reflect additional affirmative votes on certain bills, and the committee adjourned.

Transcript Highlights:

• General Fund certainly having some issues, yet our K-12 and Prop. 98 fund in particular is seeing projected
• This issue will cover the Proposition 98 guarantee as projected in the governor's budget.
• The projected maintenance factor obligation at the 2024 Budget Act is approximately $8.3 million.
• So the proposals are focusing on expanding transitional kindergarten, literacy and math initiatives,
• If revenues meet projections, great, that funding can stay in the account and help the state prepare

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.