Transcript Highlights:

• </c> subject if time allows. subject if time allows.
• </c> that the same amount across the board. that the same amount across the board.
• Um, the language in the bill says that the distributable amount shall equal 5% of the average net asset
• Um one, we would favor a fixed amount and a more conservative amount of 4.5 instead of five.
• Um one, we would favor a fixed amount and a more conservative amount of 4.5 instead of five.

Committee: Senate Finance

Transcript Highlights:

• It should allow local government to do what it's doing right now, which is what we and so.
• The rules under city control allowed for lieutenants to be paid that overtime rate.
• operational need if the budget allows and if it's necessary.
• What are the amounts that we think will bring in?
• So at least it allows us to entertain people coming in to apply for these positions.

Committee: House Crime and Public Safety

Transcript Highlights:

• The hours of the day of operations exceed the amount of time that the funding allows.
• The hours of the day of operations exceed the amount of time that the funding allows.
• And on average, we work 21.67 days per month.
• And is that allowable without a waiver?
• And that restriction is equal to the amount of... 27, and that restriction is equal to the amount of

Committee: House Budget

Summary: The committee first heard the Office of the Governor’s FY 2027 budget request from Adam Gresham. He explained the office’s staffing and noted a $500,000 core reduction, along with a reallocation of three positions and about $168,000 from the governor’s office to the mansion operating fund to better reflect where those employees work. Members asked about the National Guard emergency line, which Gresham said had already spent about $63,457 in FY 2026 and could be used again for disaster activations, though he did not expect to use the full $4 million. He also said the agricultural resiliency transfer fund had not been used and had no current transfer plans. Several members commented on the size of the governor’s cut and whether the judiciary and other offices were also being asked to reduce budgets. No votes were taken. The committee then moved to the Department of Elementary and Secondary Education’s Office of Childhood and early childhood-related budget items. DESE staff described funding for the Office of Childhood, MoQPK child care provider grants, LEA pre-K grants, early childhood special education, Parents as Teachers, First Steps, preschool coordination, after-school programs, and child care subsidy. Members asked extensively about the MoQPK grants, including why Head Start providers were eligible, how curriculum approval works, and what safeguards exist against fraud or improper payments. DESE said it conducts physical inspections, desk reviews, payment-system checks, and investigations as needed, and that it had not had findings in this area. Some members questioned whether DESE or DSS was the right home for early childhood programs, while others defended the partnership and the role of early educators in identifying child needs. A major portion of the discussion focused on early childhood special education and the child care subsidy program. DESE explained that First Steps serves children birth to age three, while early childhood special education covers ages three to five and is driven by IEP eligibility; members asked for more data on diagnoses, trends, and how many children come off IEPs. The committee also discussed the child care subsidy budget and the governor’s proposed shift to paying providers based on authorization and at the beginning of the month. DESE said the change is being piloted, that a wait list is expected to begin around March 1, and that a May rollout is being considered, but only if software testing and fiscal projections show the system is sustainable. Members expressed frustration that promised changes had been delayed and that providers had been told different timelines, while DESE said the delay was driven by software issues, fiscal caution, and the need to avoid repeating prior payment problems. The hearing ended with the committee in recess before later resuming discussion of the subsidy program; no final votes or actions were taken in the portion provided.

Transcript Highlights:

• I don't remember the amount. Isn't that the case?
• You know, it is the average cost.
• It's over that amount.
• But $10 million is a substantial amount of money.
• We'll only spend that amount.

Committees: House Commerce , House Commerce, Consumer Protection, Energy and the Environment

Transcript Highlights:

• Now there are limits to the amounts.
• deduction</c><00:05:20.320><c> and</c><00:05:20.639><c> the</c> amount of the deduction and the amount
• </c> that required additional amount. that required additional amount.
• </c> standard depreciation tables would allow standard depreciation tables would allow in<00:12:58.240
• Is that allowed? All right.

Summary: The committee first approved the minutes and heard a brief member introduction before taking up an overview of major tax provisions in HR1, referred to by the presenters as the One Big Beautiful Bill Act. Representatives from the Kentucky Society of CPAs explained new federal deductions for tips, overtime, and car loan interest; a new tax-favored “Trump account” for children; expanded bonus depreciation and Section 179 expensing for businesses; changes to R&D expensing; and a new limit on wagering loss deductions. Members asked several clarifying questions about the duration of the provisions, W-2 and 1099 reporting changes, and how overtime deductions would work. The presenters emphasized that tips and overtime remain subject to payroll taxes and that many of the business provisions are permanent, while the individual deductions are temporary through 2028 or otherwise phased in over time. The discussion then shifted to individual and nonprofit provisions, including the increase in the state and local tax itemized deduction cap from $10,000 to $40,000 with income-based phaseouts, the temporary senior deduction, and a new deduction for car loan interest with income limits and vehicle qualifications. On charitable giving, the presenters described a permanent nonitemizer deduction, new floors for individual and corporate charitable deductions, and a new scholarship-granting organization credit that would allow donors to receive a dollar-for-dollar federal credit up to $1,700, beginning in 2027. Members focused heavily on the SGO provision, asking about state implementation, oversight, whether churches would qualify, and whether the credit could support both public and private education. The presenters said the state would need to establish the mechanism and that additional federal guidance is still pending. After the tax presentation, the committee heard from the Kentucky Chamber of Commerce on workforce issues, with a focus on child care and housing as barriers to labor force participation. Chamber representatives said they were not proposing large new government programs, but rather targeted policy recommendations for the 2026 session. They described Kentucky’s long-term decline in workforce participation since 2000, attributing much of it to demographic change, an aging population, and fewer younger workers entering the labor force. The presentation continued into a broader discussion of workforce trends and the need for practical policy responses, but no votes or formal actions were taken on these informational items.

Transcript Highlights:

• Line one shows the average state grant award amounts for each of the four proposals after appropriation
• Line two is the projected average award amount based on the state grant parameters that are currently
• 00:07:09.280><c> further</c><00:07:09.919><c> by</c> average award reductions further by average award
• </c> federal needs analysis that can allow federal needs analysis that can allow the<00:42:26.400><c>
• </c> allowed it to track 100% down to zero. allowed it to track 100% down to zero.

Summary: The Higher Education Conference Committee reviewed differences among the Governor’s, House, and Senate proposals for state grant parameter changes and their effects on state grant spending, North Star Promise spending, and average student awards. Nonpartisan staff explained that the proposals use different combinations of parameter changes, with the Governor’s and Senate plans modeled to avoid or minimize rationing, while the House plan would require rationing to balance the program. Staff reported projected biennium balances of a positive $29.836 million for the Governor’s proposal, a negative $60.758 million for the House proposal without rationing, a positive $994,000 for the House proposal with rationing, and a positive $3.623 million for the Senate proposal; North Star Promise balances also varied, with the Senate showing a positive balance and the Governor and House with rationing showing negative balances. Staff also said the Senate proposal would extend availability of the state grant appropriation and suspend surplus procedures through fiscal year 2029, allowing the balance to carry forward. The committee then focused on the House-only tuition and fee cap provision, which would limit the tuition recognized for state grant purposes for four-year programs to the University of Minnesota Twin Cities level, with 1% annual increases in fiscal years 2026 and 2027. House members said the cap was intended to address rising tuition, especially at the University of Minnesota, and to produce savings in the state grant program. The governor’s office confirmed the provision was not included in the Governor’s bill. Representatives from the University of Minnesota and the Minnesota Private College Council opposed the cap, arguing it would reduce awards for low-income students and shift costs to students rather than address underlying tuition pressures; they also said it could discourage enrollment at higher-cost institutions. Supporters from Minnesota State argued the cap would improve fairness because students at lower-tuition institutions are effectively capped lower, while students at more expensive institutions receive larger awards, and they said the legislature should intervene in a variable that has grown substantially over time. Committee members questioned how the cap would work and whether it was tied to the Twin Cities campus rate. Testifiers clarified that the state grant formula is tied to the University of Minnesota level, but because Minnesota State institutions are below that level, the cap effectively limits their students to their own lower tuition while allowing higher awards at the University of Minnesota and private colleges. No formal vote or final action was taken in the portion of the meeting provided; the chair indicated the committee would continue with item-by-item review of the remaining parameter changes and hear additional testimony from agencies and institutions.

Transcript Highlights:

• The school safety officers can make the exception to allow the big door to be open to allow the fumes
• We spent a good amount of time there learning about what happened there. much.
• We spent a good amount of time there learning about what happened that.
• We spent a good amount of time there learning about what happened that day and what we can do to make
• It takes, on average, four to five years, plus seven or more trips to specialists, plus overnight stays

Summary: The Education Administration Subcommittee heard and approved four bills focused on school safety, student health, and classroom environment. HB 1403, Safety of Students, would expand Guardian program participation to child care facilities, require substitute teachers to receive campus safety protocols, and allow limited exceptions for certain CTE classrooms; it drew supportive testimony from school safety and education groups and passed 16-0. PCS for HB 907, the Sunshine Genetics Act, would create the Florida Institute for Pediatric Rare Diseases at FSU and launch an opt-in newborn whole-genome screening program funded with $20 million; supporters said it could speed diagnosis, save lives, and reduce health care costs, and it passed 17-0. HB 949 would prohibit student use of wireless communication devices during the full school day, while allowing districts flexibility in implementation and medical exceptions; supporters cited distraction and bullying data, and the bill passed 17-0. The committee also approved HB 723, the Type 1 Diabetes Early Detection Program, which requires the Department of Health to provide school-based informational materials to parents and guardians about early warning signs, risk factors, and screening for type 1 diabetes. An amendment broadened the notification to include voluntary pre-K, kindergarten, and first grade and shifted the annual notice to September 30. Testimony in support came from diabetes advocates and pediatric groups, and members spoke about personal experiences with diabetes and the value of earlier education. The bill passed 17-0 after the amendment was adopted. Across the meeting, members from both parties generally praised the bills as bipartisan efforts to improve student safety, health, and learning conditions. Several members raised questions or concerns about implementation details, including school guardian tracking, cell phone pouches and emergency access, and how the diabetes notice would be distributed, but no bill faced opposition in committee. All four measures were reported favorably.

Transcript Highlights:

• </c><00:10:20.160><c> the</c> that we talked about also allows the that we talked about also allows the
• </c><00:14:51.360><c> that</c> funding or delaying it if we allow that funding or delaying it if we allow
• </c> the amount of uh houses that we have. the amount of uh houses that we have.
• </c> this is just an example of the amounts this is just an example of the amounts requested<00:49:04.559
• requested versus the amounts available requested versus the amounts available across<00:49:07.119><c>

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• </c> similar to other past policies allowing similar to other past policies allowing districts<00:55:
• </c> dollars above that amount. dollars above that amount. All<00:59:12.440><c> right.
• ><00:59:23.120><c> any</c><00:59:23.320><c> spending</c> amount and the amount of any spending amount
• amount amount this<01:46:40.680><c> is</c><01:46:40.920><c> $20</c><01:46:41.480><c> million</c><01:
• The amount of belt already exists.

Transcript Highlights:

• where the average um uh $400,000 right where the average um uh uh<00:15:29.120><c> income</c><00:15:
• Section two of the bill allows the commissioner to determine a formula to determine award amounts for
• Section two of the bill allows the commissioner to determine a formula to determine award amounts for
• Housing section two of the bill allows Housing section two of the bill allows the<01:05:31.240><c> commissioner
• </c><01:05:34.920><c> for</c> formula to determine award amounts for formula to determine award amounts

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• RESOURCES TO PUT BAND-AIDS AND PATCHWORK ON THESE PLACES AND WE SHOULD HAVE CENTRALIZED PLACES THAT ALLOW
• WE AVERAGE A SIXTH GRADE EDUCATION TO LET THE BASELINE AS WE'RE LEARNING TO READ AND GETTING A GED BUT
• WE HAVE A GOOD AMOUNT OF TIME FOR QUESTIONS AND DISCUSSIONS AND HEARING FROM THE PUBLIC.
• WE ALLOW FREEDOM IN DINING, SIT WHERE THEY LIKE.
• WE HAVE THE SAME AMOUNT ON OUR POSTCARDS THAN IN A NON-INCENTIVIZED PRISON.

Transcript Highlights:

• And we did about a monthly average of 5,644. All right.
• I was averaging 1,139... Invoices in our case management system was averaging 1,139 a month.
• This occurs when the amount of a tax levy owed is less than the amount of that total invoice.
• Average voting age is 55 and above.
• Each one of us have the same amount.

Summary: The committee met to receive a detailed financial operations presentation from the South Carolina Vocational Rehabilitation (VR) agency, with staff walking members through funding sources, budgeting, accounts receivable, accounts payable, and grants management. Sabrina Walker explained VR’s blended funding structure, including federal grants, state appropriations, program income, and interagency contracts, and emphasized that state funds are essential to meeting the federal match and maintenance-of-effort requirements. Members asked repeatedly about transparency, audit controls, and the risk that state cuts could reduce federal drawdowns; staff responded that all reports reconcile back to the SCEIS accounting system, are subject to state audits and internal reviews, and that even modest state reductions could significantly reduce total available funding. The committee also discussed pre-employment transition services for students with disabilities, with staff confirming services are offered through school districts, charters, and private schools, and that contracts are monitored for performance and compliance. The presentation then shifted to budgeting and internal controls. Walker described a zero-based departmental budgeting process, monthly monitoring reports, contingency reserves for unexpected expenses, and a formal annual cycle that culminates in board approval. Members asked about facilities tracking, culture, and how the agency maintains accountability; staff said facilities staff inspect buildings and equipment, supervisors justify line-item requests, and the process has become smoother over time as departments learned the system. Cynthia Johnson followed with an accounts receivable overview, describing invoicing, receipting, aging, customer verification, year-end reporting, and the use of cross-training, shared email inboxes, and spreadsheets as checks and balances. She also explained work training center billing, interdepartmental transfers, and the revolving fund used to issue consumer checks more quickly than standard vendor payments. Olivia Perez presented accounts payable operations, including invoice processing through SCEIS and OnBase, the three-way match, travel reimbursements, revolving fund checks, State Treasury Office interactions, and handling of reversals, rejections, and levy notices. She reported that AP processed 67,723 SCEIS payments, 13,670 case management system invoices, 3,379 travel reimbursements, and 15,693 revolving fund checks in fiscal year 2025, with only 70 payment rejections. The final portion of the meeting covered Grants and Funds Management, where Walker explained federal reporting, drawdowns, payroll allocation, asset tracking, lease and IT contract reviews, cost allocation, and closing packages. She noted upcoming system changes such as S/4HANA, Workiva, and SC Pro, but said the agency is receiving training and feedback opportunities. No formal votes or legislative actions were taken during the presentation portion beyond approval of the prior minutes and a brief recess.

Transcript Highlights:

• The average is six. Are you guys looking at that? Mr.
• The reason that was given is that I was not allowed to look.
• And maximum benefit amounts may change.
• It's did we deduct the correct amount for shelter? Did we deduct the right amount for child care?
• But less than 1% is quite a substantial amount of money.

Transcript Highlights:

• the amount of gambling, especially by young people, college-age students.
• In the amount of, I'm sorry? I believe it's $1.9 million. Yes, $1.9 million.
• There's a small amount in the general fund dedicated for veterinarians.
• Account to pay for the remaining bond obligation amount during that month, thereby allowing it to use
• It's kind of a rolling three-year average.

Committee: Senate Senate Regulatory Affairs & Government Efficiency Committee of Reference

Summary: The committee first heard the Arizona Auditor General’s 2025 sunset review of the Arizona Barbering and Cosmetology Board. The audit found the board generally processed licenses and complaints timely and had adopted required school curriculum rules, but it also identified inconsistent disciplinary actions, gaps in required infection-prevention and law education for some reciprocity and instructor applicants, weak application review controls, and noncompliance issues involving open meeting law, public records, and conflicts of interest. Auditors also recommended statutory changes on esthetics scope of practice, cease-and-desist authority, and eyelash technician training standards. The board’s executive director said the agency agreed with the findings, had already implemented some changes including updated disciplinary parameters, conflict-of-interest training, lawful presence verification, and revised cash-handling procedures, and was working through the remaining recommendations. After questions, the committee voted 7-0 to recommend the board implement the audit recommendations and be continued for six years, until July 1, 2032. The committee then took up the combined sunset review and performance audit of the Arizona Department of Gaming, the Arizona Racing Commission, and the Arizona Boxing and Mixed Martial Arts Commission. The Auditor General reported that while the department distributed tribal gaming funds and issued some licenses appropriately, it failed to consistently obtain and review required independent audit reports for event wagering and fantasy sports operators, did not fully comply with conflict-of-interest disclosure requirements, lacked comprehensive complaint-handling processes, and had delayed some compact trust fund distributions. Additional issues included IT security documentation, horse-racing suitability checks, fee-setting reviews, rulemaking, and public records procedures; the Boxing and MMA Commission also had licensing and fee-setting deficiencies. The department and commissions agreed to implement the recommendations, and the department director said the agency was already making changes, including updated guidance to operators, a new complaint-tracking process, conflict-of-interest training, and work on trust fund distributions and rule changes. Committee members pressed both the auditor and the department on why fantasy sports audit reviews had not been completed, whether underpayments would be recovered, and why no distributions had yet been made to certain Category 3 tribes under the 2021 compact trust fund. The director said the department was now doing a look-back review, would seek any owed fees, penalties, and interest, and was helping tribes resolve the baseline-revenue formula needed for distributions. Members also asked about conflict-of-interest practices, problem gambling, and whether prediction markets fall under gaming regulation. The discussion continued into the department’s broader presentation, with the director describing the agency’s regulatory role and ongoing modernization efforts.

Transcript Highlights:

• 30% above the national average after this package of legislation?
• 10% above the national average, At or below the national average energy costs after this package of bills
• Actually, in the State of New York, the average bill takes three years to pass. The average bill.
• ACTUALLY IN STATE OF NEW YORK THE AVERAGE BILL TAKES THREE YEARS TO PASS. THE AVERAGE BILL.
• You will get a solar device on your house that allows you to net meter it.

Summary: The Senate convened, approved the prior journal, and then took up a series of utility and public service bills and resolutions. A resolution sponsored by Senator Scarcella-Spanton designating April 9, 2026, as Yellow Ribbon Day was adopted after remarks honoring veterans, active-duty service members, and their families. The chamber then moved through several Public Service Law measures focused on utility affordability, consumer protections, and PSC procedures, with some bills laid aside and others advanced. Among the bills passed were measures by Senators Mayer, Cleare, Hinchey, Comrie, and Parker. Debate on the Mayer bill centered on limiting utility expenses and fees recoverable in rate cases; supporters said it was part of a broader package to reform PSC practices, while opponents argued it would not lower current bills and had been softened from earlier versions. The Webb bill creating a residential utility usage monitoring program drew extended debate over whether it would meaningfully reduce costs, who would pay for the program, and whether it could lead to government monitoring of household usage; supporters said it would give consumers more control and transparency, while critics said it would not lower rates. The Gonzalez bill, which would add consumer protections during PSC investigations and delay shutoffs in certain circumstances, also passed after questions about whether it applied to rate cases, with the sponsor saying rate cases were explicitly excluded. Several members explained their votes, with supporters emphasizing affordability, transparency, and consumer protection, and opponents arguing the package would not address immediate rate relief and could burden ratepayers or encourage nonpayment. Senator Tedisco and others criticized PSC appointments and state energy policy, while Democratic sponsors argued the bills were part of a longer-term effort to reform utility regulation and address climate and affordability concerns. The chamber restored multiple bills to the non-controversial calendar before final votes, and the recorded results showed passage of the major utility bills by substantial margins, along with one amendment appeal being ruled nongermane and rejected.

Transcript Highlights:

• I mean, the amount of people that are going to be unemployed, I think especially in...
• I mean, the amount of people that are going to be unemployed, I think especially in... ...the amount
• But it allows them to freeze those taxes for up to 20 years, so they'll pay the same rate, or sorry,
• And then third, the average area median income of residents occupying qualifying multifamily units is
• rent amount equal to or less than the rent amount for 80% of the area median income for one and one-half

Bills: HB310 , HB323 , HM51 , HB194

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

Summary: The committee first heard HB 310, which would appropriate $1 million to continue planning and development for a Lowrider Museum in Española. The sponsor said the project had already received prior capital outlay support and that the new funding would help complete the study and planning phase for a future world-class museum. Members asked about the increase from prior funding levels and discussed the broader cultural and economic value of the museum. The bill received a do pass recommendation. The committee then considered House Memorial 51, which addresses the economic and community impacts of ending civil immigration detention in affected rural counties. Sponsors said the memorial would call for planning around workforce retraining, economic diversification, community services, and possible repurposing of detention facilities. Testimony and discussion focused on the short-term harm to workers and local economies, the role of Workforce Solutions, and concerns about family disruption, housing, property tax revenue, and whether facilities might close or be repurposed. The memorial passed on a 7-0 vote. Finally, the committee took up HB 194, which would expand the Metropolitan Redevelopment Code to support housing shortage areas and workforce housing through property tax freezes and related incentives. The sponsor and Apartment Association representative described the bill as a tool to increase missing-middle housing, with affordability requirements, voucher acceptance, audits, and reporting provisions. Members raised concerns that the amendment was very large and difficult to absorb in the committee timeframe, and several said they preferred to see it as a substitute bill. No motion was made to adopt the amendment, HB 194 was rolled, and HB 323 was also rolled because the sponsor was unavailable. The committee then adjourned.

Transcript Highlights:

• There's also an indeterminate amount on... The plans more money.
• Why do we allow this to exist in this country?
• So we're going to make an adjustment and maybe allow a certain...
• up to whatever the amount is.
• Biosimilars come to market on average 40% lower than...

Committee: House Insurance

Summary: The House Insurance Committee met on April 1 with a quorum present and first took up House Bill 938 by Rep. Turner, which would overhaul pharmacy benefit manager (PBM) regulation by setting a flat administration fee, requiring dispensing fees and NADAC-based reimbursement, mandating rebate pass-through, giving the Department of Insurance access to PBM data, and creating a reverse-auction process for PBM procurement. Turner said the bill is intended to level the playing field for independent pharmacies, improve transparency, and reduce hidden PBM practices. The committee adopted amendment set 1444 without objection, and Turner said additional conceptual amendments were still being worked on. Supporters included independent pharmacies and the PBM Accountability Project; opponents included union plan representatives, benefits consultants, and PBM/insurance industry witnesses who warned of higher costs, ERISA preemption problems, and likely litigation. After extended questioning on cost, preemption, and vertical integration, the committee reported HB 938 with amendments. The committee then considered House Bill 870, also by Rep. Turner, dealing with formulary placement and cost-sharing for generic drugs and biosimilars and limiting certain utilization management practices. Amendment set 1540 was adopted, revising and tightening technical definitions. Turner and a representative of the Association for Accessible Medicines argued the bill would help lower-cost generics and biosimilars gain market share and reduce patient costs, citing examples such as insulin and Humira biosimilars. Opponents from Louisiana Blue said the bill would force coverage based on wholesale acquisition cost rather than net cost, would raise premiums for fully insured members, and would mandate coverage of drugs that are not always the lowest net-cost option. Rep. Jordan again raised ERISA and preemption concerns, and committee members discussed whether the bill would interfere with tiering and plan design. After closing comments and a motion by Rep. Glorioso, HB 870 was reported with amendments, and the committee adjourned.

Transcript Highlights:

• And so, here is the average salary of unelected prosecutors versus the average public defender: $73,000
• And so, here is the average salary of unelected prosecutors versus the average public defender: $73,000
• And so, here is the average salary of unelected prosecutors versus the average public defender: $73,000
• And so, here is the average salary of unelected prosecutors versus the average public defender: $73,000
• </c> from other judges who had allowed from other judges who had allowed defendants<00:32:14.720><c>

Summary: The Budget Review Subcommittee on Justice and Judiciary heard testimony from the Department of Public Advocacy (DPA) on attorney compensation and alternatives to incarceration. Because the committee lacked a quorum, the chair skipped formal roll call and minutes approval, then invited DPA Public Advocate Damon Preston, Deputy Public Advocate Melanie Lowe, and alternative sentencing worker Cena/Tina Mills to present. Preston said DPA is fully state-funded, has 698 funded positions, and was near full staffing with 673 filled positions and 42 new law graduates expected to join in August. He argued that DPA’s resources lag behind those of prosecutors, noting that local prosecutorial offices receive substantially more total funding and have additional revenue sources beyond the state budget. Preston focused on salary disparities and turnover. He said DPA trial-office attorneys total about $26 million in salaries, compared with about $41.9 million for prosecutors on publicly listed state funding, and estimated that more than 100 additional prosecutors are paid through other sources, bringing total prosecutor compensation to a little over $50 million versus DPA’s $26 million. He said starting DPA attorney pay is $58,200, experienced attorney pay averages about $73,000, and that these levels are too low given law school debt and the state’s constitutional obligation to provide defense counsel. He also said DPA attorney turnover is about 20%, median service time before separation was 15 months in 2024, and exit interviews often cite salary as the main reason for leaving. He gave examples of former DPA attorneys moving to prosecutor offices for raises ranging from 12% to 50%. Committee members asked about how often defendants are represented by private counsel versus DPA and how that affects workload. Preston said a 2017 study found about 50% of misdemeanor cases and about 75% of circuit court cases were handled by DPA, with DPA handling most of the most labor-intensive cases. He said DPA will step aside when a defendant hires private counsel or is found ineligible, and he acknowledged the system historically erred by denying counsel in some cases, though he said the current concern is whether DPA is now appointed too broadly. Members requested updated trend data on appointments over the past decade. Preston also described DPA’s pay scale and said the agency’s compensation structure makes retention difficult. Mills then described DPA’s alternative sentencing worker program, which she said has operated for about 20 years and has received national recognition. She shared a case example involving a client named Patrick, who faced a prison sentence on a possession charge and was referred to a horse-based treatment and certification program in Shelbyville. She said the client wanted treatment and a fresh start, a bed became available, and she and the client’s attorney presented an alternative sentencing plan to the court. The presentation was interrupted briefly by a technical issue, but the testimony continued.

Transcript Highlights:

• debt service, while CSU is allowed to spend up to 12%.
• It was about an equal amount of lease revenue bonds and GEO bonds.
• looking at the amount of deferred maintenance.
• looking at the amount of deferred maintenance.
• That allowed us to see incredible uptake on our college-age students.

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

Transcript Highlights:

• If Medicaid is covering these services at their allowable amount, it's actually not the patient that
• You have to state the amount, actually.
• It needs to be allowable amount of Medicare reimbursement.
• That's about the average amount of eligible unreimbursed and uncompensated medical care expenses is about
• this amount of money, we get this amount of return.

Committee: House House Health & Human Services