Transcript Highlights:

• And the increase interest rates we will suffer as a result of higher, as a result of the higher deficits
• It prohibits states from establishing any new provider taxes or from increasing the rates of existing
• If Congress adjourns having increased the deficit over either period, OMB must offset the increase by
• With respect to the error rates, right? Why do we need to talk about the error rates now?
• the error rate.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• This is a 400 million increase or an 88.8% increase. Thank you.
• The total is even higher when you include rate increases.
• It's a 5% increase.
• Those rates over 50 to 60 percent of that rate is about compensation, and so then the wage scale and
• And that was a state increase. Is there an equal increase on the federal side?

Bills: SB2

Transcript Highlights:

• increases or rate prioritizing rate increases or rate adjustments<01:24:45.320> to<01:24:45.480
• increase, the guardianship rate increase, the BDS service rate increase.
• service rate incre the rate increased service rate incre the rate increased the<01:53:51.679>
• :53:53.000> BDS the guardianship rate increase the BDS the guardianship rate increase the BDS
• > not<01:53:55.239> closing service rate increase you're not closing service rate increase

Keywords: 928, house, all

Summary: The Division of Long-Term Supports and Services presented its budget and program overview as part of the Department of Health and Human Services operating budget review. Leadership described the division’s three bureaus—Aging and Adult Services, Developmental Services, and Family-Centered Services—and explained that the division provides guidance, technical assistance, quality monitoring, and contracted provider oversight across the lifespan. Members also discussed staffing, with reported vacancy rates of 4% in Aging and Adult Services, 15% in Developmental Services, and 6% in Family-Centered Services; the division said the higher BDS vacancy rate is partly due to the small number of authorized positions. The governor’s budget had left eight positions unfunded in the division, including three in Aging and Adult Services and five in BDS. A major topic was the division’s roadmap initiatives, especially building a system of care for healthy aging and strengthening developmental disabilities systems through a new reimbursement rate structure. The division said it contracted with an actuary to study DD service costs and found rates had not been reviewed since 2017 and were significantly below actual costs and other states’ rates, contributing to provider shortages even when services are authorized. Members asked about the impact on service delivery and whether rates would need to rise overall; the division said its strategy is to focus on lower-cost services that help people remain in the community. The division also reported waiver enrollment figures, including about 4,161 people on the Choices for Independence waiver, 3,688 average nursing facility residents, 5,061 people on the DD waiver, 228 on the acquired brain disorder waiver, and 488 children on the in-home support waiver, while noting there is no funding waitlist but provider availability remains a constraint. The division highlighted IT modernization as a major accomplishment, especially moving Adult Protective Services and Developmental Services into the New Heights system. Officials said these changes improve case-note access, data retrieval, service authorization tracking, and transparency for providers, and they asked for future oversight discussion focused on IT leverage. Members noted that New Heights maintenance is budgeted in the Office of the Commissioner under class 27 and suggested better transparency on system costs and benefits. The division also reported that it closed out a long-running CMS corrective action plan for BDS on July 1, 2023, and said it is now focused on strengthening the system rather than compliance alone. Other discussion covered the Aging and Adult Services bureau’s name change from Elderly and Adult Services to Adult and Aging Services, intended to avoid negative connotations and better reflect preventative services. The bureau described Adult Protective Services trends involving scams, financial exploitation, self-neglect, and isolation, and explained that it administers the CFI waiver, determines medical eligibility for nursing facility level of care, and braids funding from Medicaid, state funds, Older Americans Act money, Social Service Block Grants, and other grants. Members asked about waiver growth targets and federal consequences if enrollment remains below projections; the division said it would explain the shortfall in a future waiver amendment and did not anticipate a federal penalty. The meeting ended without any votes or formal actions taken.

Transcript Highlights:

• at that five-star facility rate.
• error rate.
• So, error rates are affected.
• If we underpay them, it affects our error rate. If we overpay them, it affects our error rate.
• to increase.

Keywords: 914, all

Transcript Highlights:

• to the product of the population growth rate and the inflation rate.
• Whether it's the no new revenue rate, the voter approval rate, or the natural disaster rates, we have
• 18.8% rate increase, which dramatically increased the cost. ...me as a homeowner.
• So, you know, it's a $10 million increase in our budget, and then with labor cost increases, that's going
• the rates have definitely come down.

Bills: HB386, HB1449, HB1701, HB2142, HB2675, HB2857, HB3063, HB3171, HB3641, HB3732, HB4045, HB4370, HB4491, HB4505, HB4626, HB5267, HB5356

Keywords: construction contracts, change orders, local government, budget limits, Texas legislation, HB 1449, mobile food vendors, food trucks, mobile food service establishments, permits, county health permit, municipal permitting, Health and Safety Code Chapter 437A, Chapter 437, inspection agreements, permit reciprocity, fee cap, preemption, large counties, population over one million

Transcript Highlights:

• With 2020 2022. 2023 rates below the 2019 rate.
• decreased in calendar year 2021. 2022 compared to 2020 the rate increased in 2023.
• Increasing slightly in 2023.
• It increased in 2022.
• But increasing to 98% in individual plan rates in 2023. Ranged from 95% to 100%.

Transcript Highlights:

• My understanding is that because it fell below what is already assumed to increase in rates, then it
• Nursing homes are paid via the VBR rate methodology, which increases over time, and that rate methodology
• , that would result in increased cost to the rates over time.
• <01:04:07.160> increases<01:04:07.760> to mechanism for regular rate increases to mechanism
• <01:30:51.199> decade<01:30:52.040> we rate increases over the last decade we rate

Bills: HF1419, HF500

Keywords: nursing facilities, reimbursement rates, elderly care, minimum wage, healthcare funding, nursing home, employment standards, worker rights, Minnesota Statutes, labor compensation, 1183, house

Transcript Highlights:

• <02:23:41.880> and the Foster Care uh rate increases and the Foster Care uh rate increases
• funds to provide that rate increase.
• Did they have a rate increase?
• second provide that rate increase in the second provide that rate increase in the second year<02:
• <02:26:42.680> increase year so they got one rate increase year so they got one rate increase

Keywords: 1189, house, all

Summary: The Division 3 House Finance Committee opened a work session and announced scheduling updates, including a second Medicaid work session on March 5 at 9:00 a.m. and a reminder that recommendations or budget amendments must be moved to the full finance committee by the end of March. Members were told no motions, roll calls, or votes would be taken, and the chair also reviewed upcoming meeting dates and weather-related cancellation procedures. The day’s presentation was a budget work session on the Division for Children, Youth and Families (DCYF), with officials Marie Nunan and Nathan White introducing the agency’s budget materials and mission. DCYF’s presentation focused on its core mandates and recent operational changes. Officials described child protective services, juvenile justice services, and the Sununu Youth Services Center, then highlighted workforce improvements, including reduced vacancy rates for assessment caseworkers, juvenile justice officers, and youth counselors. They attributed the staffing gains to legislative pay raises, mass recruitment posting changes, a more stable and trauma-informed model at SYC, and broader flexibility after prior budget cuts and hiring freezes. Members asked about full-time versus part-time staffing, and DCYF said most positions discussed were full-time, with some harder-to-fill part-time youth counselor roles at SYC. The committee also discussed DCYF’s emphasis on serving families earlier through its Community Navigator hotline referrals and community-based voluntary services, which are intended to connect families to supports before abuse or neglect escalates. Officials said the Community Navigator program had received 807 referrals since August 2023. On juvenile justice, DCYF described its assessment and diversion process and said it had reduced juvenile probation involvement by 30% from 2019 to 2023; members were directed to slide 17 for 2024 data, and officials said the trend continued toward fewer in-home juvenile justice cases. The agency also reported progress in kinship care, saying initial out-of-home placements with kin now occur 74% of the time and that kinship placements are associated with more reunification. Officials said kinship caregivers are being licensed and paid similarly to foster parents, and that the legislature’s kinship law has helped. Finally, DCYF outlined transition-age youth supports, including the HOPE program, Youth Villages LifeSet, and housing vouchers. No votes or formal actions were taken.

Transcript Highlights:

• I came up here for years and years and years advocating for increases in reimbursement rates, help with
• It's going to increase worker wages. It's going to increase labor force participation rates.
• Child care wages in New Mexico have increased at the steepest rate in the nation...
• Child care wages in New Mexico have increased at the steepest rate in the nation, growing by 65% between
• There’s still base rates, enhanced rates, and universal rates.

Summary: The committee heard first from LFC staff on a brief about New Mexico’s universal child care expansion. Staff said child care assistance has clear benefits for parents and families, but LFC has not found evidence in New Mexico that it improves children’s educational outcomes; they argued pre-K is the better tool for that goal. The brief highlighted four concerns with universal access: an estimated annual cost of about $849.7 million, a sharp decline in registered homes, possible crowding out of lower-income families, and reduced access for children under age two. Staff also suggested possible mitigations such as prioritizing slots for low-income and at-risk families, reinstating sliding-scale co-pays, and tying quality improvements to workforce wages. Members raised questions about the cost estimate, funding sources, provider quality, and whether the data showed actual crowding out. Several lawmakers expressed support for child care generally but concern about the fiscal impact and whether universal access would divert resources from the families most in need. Others emphasized the importance of child care for workforce participation, rural communities, and family stability, and questioned how registered homes are counted and regulated. LFC staff clarified that the cost estimate was for child care assistance only, not the entire ECECD budget, and that the data showed declines in the share of lowest-income children and infants/toddlers served, though not causation. The ECECD secretary then presented the department’s response, saying universal child care is intended to complete a cradle-to-career system and that the department has already seen strong uptake, increased capacity, and rising workforce participation. She said 6,206 families were found eligible in the first month, the share of infants and toddlers served rose, and new provider applications and licensed slots increased after the November rollout. The department also emphasized wage increases, quality improvements, and a new wage scale/career lattice, while projecting a lower near-term cost than LFC’s estimate and requesting additional funding for child care, early pre-K, home visiting, workforce systems, and capacity-building. No votes or formal actions were taken in the portion provided; the discussion was informational and focused on questions and testimony.

Transcript Highlights:

• Finally, my last chart compares contribution rates, specifically the median employee contribution rate
• And I don't know what New Mexico's bond rating is. I suspect it's not the highest in bond rating.
• One different contribution rates.
• those rates automatically, it's an act of the legislature to make any increase or decrease to those
• rates.

Transcript Highlights:

• facilities, projects, or increase mileage rates.
• facilities, projects, or increase mileage rates.
• facilities, projects, or increase mileage rates.
• facilities, projects, or increase mileage rates.
• increase mileage rates. increase mileage rates.

Keywords: House streaming session for Thursday, February 12, 2026, 957, house, all

Summary: The House convened with 124 members present, opened with prayer, and approved the previous day’s journal. Members then adopted a congratulatory House resolution honoring the Kent Island High School boys lacrosse team for winning the 2025 Maryland Class 2A state championship. The House also journalized Baltimore City 2026 bond/loan authorization resolutions and moved a series of introductory House bills and bond initiatives through first reading and committee referral without objection. On the special order calendar, House Bill 28, concerning higher education/private career schools advertising, received a favorable report and was ordered printed for third reading. House Bill 226, creating a Department of Disabilities housing programs and affiliated foundations structure, was also reported favorably as amended. Two floor amendments were adopted to that bill: one clarifying that any affiliated foundation may only raise funds or provide support and may not run programs or set policy, and another restoring conflict-of-interest and ethics protections, including limits on family members and public ethics application requirements. A later amendment to HB 226 was rejected by a recorded vote of 95 in the negative, and the bill was ordered printed for third reading. The most extended debate centered on House Bill 229, which increases the Maryland Transportation Authority’s revenue bond limit from $4 billion to $5 billion to help finance the Francis Scott Key Bridge rebuild. One amendment sought to prohibit toll increases without General Assembly approval; its sponsor argued the added borrowing would likely lead to future toll hikes and that elected representatives should vote on them. The floor leader opposed the amendment, saying it would weaken MDTA’s independent rate-setting authority, harm its bond rating, and increase financing costs, while noting the bill is intended to cover bridge reconstruction costs and federal reimbursement timing. After debate, the amendment failed on a recorded vote, and HB 229 was ordered printed for third reading.

Transcript Highlights:

• points, which indicates that the increases in program expenditures are in part driven by increases in
• universal access for students is increasing rates of meal participation in communities most in need.
• Because there was an increase in USDA reimbursement rates, we are looking at a 4 percent increase in
• and the free meal rate.
• So we don't anticipate seeing an increase in the reimbursement rates mid-year, for example, but you never

Transcript Highlights:

• > meeting to increase tourism and increase meeting to increase tourism and increase meeting and
• . rate. rate.
• rate. Uh it's a has to be coupled with rate.
• rates.
• rates.

Keywords: 912, senate, all

Transcript Highlights:

• Total non-farm employment increased by.
• The first half of FY26 yielded record-level bonus payments, and there's also an increased royalty rate
• Have they said we're going to end up in our rating on ratings this year? Mr.
• Well, that in the long term will save us with a higher bond rating and a lower interest rate.
• Another big increase is kind of outside of our control: $937,000 just for increases in DOIT rates, GSD

Keywords: 996, all

Transcript Highlights:

• One of the reasons TUIA's rates continue to increase is the reliance upon bond debt to cover losses that
• Um, is it true that Tua's rates haven't increased at the same rate as the private market has in the same
• My concern with when we was seeking the rate increase is, uh, is it's the reinsurance.
• And so that was a primary contributor to the proposed rate increase and the concern I had at the time
• And once the rate is filed, the rate is the rate.

Transcript Highlights:

• and underlying treasury rate and increased debt can push that up.
• rates and when you set other consumer credit rates.
• , a car note rate?
• rates continue to rise.
• Will a 25% increase in tariffs?

Keywords: nomination, Deputy Secretary of Treasury, economic policy, inflation, tariffs, tribal nations, government relations

Summary: The meeting convened to consider the nomination of Mike Falkender for the position of Deputy Secretary of the Treasury. During the session, multiple members voiced concerns regarding current economic policies under the Trump administration, particularly around inflation, tariffs, and the impact on small businesses. Discussions frequently centered on the administration's approach to tariffs and taxation, and how these factors contribute to the rising cost of living and potential job losses. Additionally, the importance of bolstering government-to-government relationships with tribal nations was emphasized, highlighting the need for specialized offices focused on tribal affairs within the Treasury Department.

Transcript Highlights:

• Um, we've had an increase in employer rate. We've had some appropriations.
• Uh, we've increased the employer rate, and we're increasing it year over year for the next few years.
• uh and we're increased the employer rate uh and we're increasing<00:13:06.480> it<00:13:06.639
• it employer uh rate increase I think it employer uh rate increase I think it went<00:25:38.960><
• increases and cities, employer rate increases and cities, counties<00:47:52.160> or<00:47:52.400

Keywords: Finance - Room 216, 20 January, 2026; 10:30 AM, 925, all

Summary: The committee heard an update from PERS Executive Director Higgins, who reported that the system has about $38 billion in assets, earned roughly 11.7% last fiscal year, and is about 57% funded. He thanked lawmakers for a newly passed $1 billion funding bill and emphasized that funding the existing system remains the top priority. Higgins also noted that the board’s actuarially recommended contribution is about 26% of payroll, while the system is currently receiving about 18.4%, and said PERS will return later in session with a few requested bills. Higgins addressed several policy topics under discussion this session, including return-to-work rules, first responders, and Tier 5. He said return-to-work changes are possible if the law is changed and funding implications are addressed. For first responders, he said any special treatment should be done within PERS rather than by creating a separate system, with the affected group and parameters clearly defined and fully funded. He also said the new Tier 5 hybrid plan is being implemented on track for March 1 and is projected to improve the system’s long-term financial position by reducing future liabilities and helping pay down the unfunded liability. Members then questioned Higgins about the system’s funding policy, the 30-year closed amortization period used in the ADC calculation, and whether that approach should be revisited in light of recent funding actions and changes in assumptions. Higgins said the board reviews the policy annually, that the closed amortization approach was chosen to better pay down the unfunded liability, and that the annual valuation and experience studies already incorporate recent funding changes, Tier 5, and the phased employer-rate increases. He acknowledged that a significant new infusion of funding could justify reviewing the amortization period, but cautioned against changing it too often because it could undermine progress toward paying down the unfunded liability.

Transcript Highlights:

• So now that we want to cap that increase, they're still getting increased; personal...
• lowest rate.
• If that's the lowest rate.
• It will continue to increase.
• Nobody's wanted an increase.

Keywords: 959, house, all

Transcript Highlights:

• state employee health benefits, the GSD rate increases, and that also provides funding for positions
• So we've gone up 102% of an increase. You all saw the exciting news of our bond rating going up.
• rate increase and the 400 category for the due rate increases.
• Again, the increases are solely for rate increases that were implied on the Governor's Office.
• The rate is increased based on the amount of claims that are made with the governor's office.

Keywords: 996, all

Transcript Highlights:

• Higher rate of 10% of error rate share.
• Um, we had temporary federal policies that again contributed to an increase in SNAP error rates, not
• Um, we had temporary federal policies that again contributed to an increase in SNAP error rates, not
• Um, we had temporary federal policies that again contributed to an increase in SNAP error rates, not
• Increase in SNAP error rates not just in Kentucky but nationally as well.

Keywords: Meeting Start 00:00:00 FY 2025 Budget Close Out 00:02:55 Impressions of H.R. – 119th Congress 00:28:15 SNAP Payment Error Rates 00:37:05, 958, all

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.