Transcript Highlights:

• So it wouldn't necessarily, in my mind, affect the rate because the rate is...
• So it wouldn't necessarily, in my mind, affect the rate, because the rate is prior to the insurance.
• were, what, a thousand, which is the current rate right now?
• Some companies don't rate less than the municipality level.
• It faces similar criticisms to other rating factors.

Committee: Joint Joint Committee on Financial Services

Keywords: 995, all

Summary: The Joint Committee on Financial Services held a public hearing on a wide range of auto insurance and vehicle-related bills. Testimony focused heavily on autonomous vehicle regulation, auto insurance rating by ZIP code, rental car liability coverage, and surcharge thresholds for minor accidents. Representative Polito supported a bill to regulate autonomous vehicle testing and deployment, arguing for school-zone restrictions, slower speeds, a remote kill switch, and minimum insurance requirements to protect the public. Representative Mendez and Senator Payano testified for legislation to reduce racial and socioeconomic inequities in auto insurance pricing by limiting the weight insurers may place on territorial loss costs, while the Mass Insurance Federation and Consumer Federation of America offered opposing and supporting views, respectively, on the fairness and actuarial impact of geographic rating. The committee also heard support for a bill to remove inspection-sticker violations from license-point calculations, and for a bill to raise the damage threshold for insurance surcharges and minor/major accident classifications. A substantial portion of the hearing addressed House Bill 1301 on rental car liability. Enterprise Mobility, the American Car Rental Association, and a small Massachusetts rental company supported the bill, saying personal auto insurers should be primary when their insureds drive rental cars, that Massachusetts is an outlier compared with most other states, and that the change would reduce costs and simplify claims handling. The Mass Insurance Federation opposed the bill, arguing that current Massachusetts law already clearly makes the vehicle owner’s policy primary and that shifting liability would raise costs for private-passenger policyholders. Committee members asked detailed questions about how rental coverage works, whether premiums or rental rates would change, and how other states handle the issue. The committee also heard testimony on a bill to adjust surcharge rules for at-fault accidents, with sponsors arguing that repair costs and vehicle values have risen sharply and that the current thresholds are outdated. Members discussed how the point system affects drivers, whether the proposal should apply cumulatively or per incident, and how Carfax and out-of-pocket repairs factor into consumer costs. At the end of the hearing, the chair noted written testimony could still be submitted and, during a brief personal privilege, recorded support for two underinsurance bills, H. 1109 and S. 748. The committee then moved and seconded a motion to adjourn, and the hearing ended without any votes on the bills themselves.

Transcript Highlights:

• Victoria touched on adequate rates. Victoria touched on adequate rates.
• We talked about the rates a lot.
• to get our rate increase through.
• It shows the inadequate rate. I mean, the last rate increase was in 2021.
• It shows the inadequate rate. I mean, the last rate increased 2021.

Summary: The Assembly Insurance Committee held an oversight hearing on the California Fair Plan, focused on the plan’s rapid growth, its financial stability after the January Southern California wildfires, and its role as the insurer of last resort. Fair Plan officials explained that the plan was created in 1968, is a not-for-profit involuntary association of licensed property insurers, and is intended to be a temporary safety net until policyholders can return to the admitted market. They emphasized that the plan is not a state agency or taxpayer-funded, but is regulated by the Department of Insurance and supported by member-company assessments if claims exceed available funds. Victoria Roach and Armand Feliciano said the Fair Plan has grown sharply since 2018 and especially after market pullbacks by major insurers, reaching about 575,000 policies and roughly $600 billion in exposure by spring 2025. They noted that growth is increasingly occurring in lower wildfire-risk areas, where the plan can sometimes be cheaper than the voluntary market, and said this undermines depopulation back into the private market. They also discussed recent policy expansions, including coverage for farms, higher residential and commercial limits, and pending or proposed changes such as AB 290, SB 525, and AB 226, which would add tools like a line of credit and bond access. A major portion of the hearing addressed the January wildfire losses and the plan’s financial response. Fair Plan officials said they assessed member insurers for $1 billion after determining claims and cash flow would exceed available resources, and that the process was approved quickly and paid smoothly, with more than 80% of the assessment collected within 10 days. They also described the reinsurance tower, the plan’s limited surplus, and the need for actuarially sound rates to reduce future reliance on assessments. On claims handling, they said the plan has received over 5,500 claims from the fires, has paid more than $2.9 billion so far, expects total payments near $4 billion, and has focused on advancing payments quickly for total losses and other urgent needs. Members questioned the plan’s solvency, the growth in non-wildfire areas, claim denials, smoke-loss coverage, and how depopulation works. Roach said most closed claims without payment were duplicates rather than denials, and that smoke claims require direct physical loss under the policy, with coverage determined case by case. Public commenters from the California Building Industry Association and the Independent Insurance Agents and Brokers of California said the Fair Plan’s growth reflects a weak voluntary market, inadequate rates, and insurer fear of future assessments, and urged support for rate increases and AB 226. The hearing concluded with no vote, but with a commitment from Fair Plan officials to follow up on unanswered questions and continue providing more transparency through public data and website disclosures.

Transcript Highlights:

• So market rate survey Market rate survey looks at an overall picture of the health and expense of child
• Can you tell us what the current rate, the current market rate is?
• So we said, We set our school readiness assistance rates at 75% of the market rate survey.
• of care versus market rates?
• What is the rate of pay?

Committee: All EDUCATION- HOUSE EARLY CHILDHOOD SUBCOMMITTEE

Keywords: 1204, all

Transcript Highlights:

• Pursuant to Act 634, we have increased that administration rate to match the Vaccines for Children rate
• I can't remember, the NDAS document that we used to set the rates, the orthodontic rates actually dropped
• I can't remember, the NDAS document that we used to set the rates, the orthodontic rates actually dropped
• So what rates are you increasing? All pediatric rates. Okay.
• And those rates all will go up.

Committee: All ALC-ADMINISTRATIVE RULES

Summary: The Arkansas Administrative Rules Subcommittee met to review a large set of agency rules and reports. Early items were routine filings: emergency-rule reports, subcommittee review reports, and administrative directive reports were filed without objection. One rule from the Department of Agriculture on maternal health providers and remote monitoring was noted as pulled by the agency and not considered. The committee then reviewed and approved several Agriculture rules, including repeal of equine ID-chip rules after Act 703 of 2025, updates to finance rules adding a new water and sewer treatment facilities grant and consolidating revolving-fund rules, and a pesticide rule creating a Class J pesticide category for feral hog toxicant use. It also approved a Commerce/Insurance rule removing duplicative workers’ compensation plan provisions, and a Corrections rule creating a unified visitation rule for correctional facilities and community correction centers. A member asked about prison visitation hours during COVID, and staff said they would check on that. The committee next approved multiple Department of Human Services rules. These included marketing rules for provider-led organizations under Act 301 of 2025, a comprehensive revision of the DCFS policy manual, changes to Medicaid eligibility to include fictive kin placements and to expand ABLE account eligibility under Act 875, presumptive eligibility changes for pregnant women to align with federal rules, and a follow-up SNAP/TEA/Work Pays rule with updated work requirements, mandatory employment and training, alien eligibility changes, and job-search requirements for certain applicants. DHS also presented a rule implementing federal coverage for certain incarcerated youth before and after release, and the committee approved it. Another DHS rule updated nurse aide training requirements to match federal CNA hour standards and moved criminal-records-check procedures to the agency website. The most extended discussion involved DHS Division of Medical Services’ dental rate rule under Act 1025. The agency explained that it was increasing pediatric dental rates and certain oral-surgery-related rates, but not orthodontic rates or a broader special-needs benefit limit because CMS would not approve a diagnosis-based limit. Members debated whether the statutory language was intended to cover general dentists performing oral surgery procedures, with legislators, the Dental Association, and DHS discussing legislative intent, fiscal impact, and whether a future fix or emergency rule might be needed. Despite the disagreement, the committee approved the rule. The committee also approved other DHS medical rules: adverse-decision appeal changes and prior-authorization posting requirements, an increased RSV administration fee for children, expanded emergency treat/triage/transport ambulance authority, and clinic-based physical and occupational therapy coverage. Later, the committee approved permanent rules for the new state insurance program under Shared Administrative Services, procurement rule revisions recommended after an ACASO review, and commodity-management rule updates including a new revenue distribution model. Under Act 595 of 2021, the committee granted two Department of Commerce/Insurance requests to be excluded from rulemaking requirements: one for Act 772 on forced organ harvesting, and one for restorative reproductive medicine, with the department saying it would promulgate rules later when clinical guidelines are available. Finally, the committee accepted a recommendation to keep and extend the Department of Education, Division of Career and Technical Education rules, filed outstanding rulemaking updates, and adjourned without further business.

Transcript Highlights:

• These rates are updated twice per year.
• The latest prevailing wage rate.
• prevailing wage rates.
• And then so you knew what the rate was for the workers.
• And so when we are freezing that minimum rate for the when we are freezing that minimum rate for the

Bills: SB5944

Committee: House Labor & Workplace Standards

Keywords: language access, collective bargaining, labor relations, employment rights, worker protections, 904, all

Transcript Highlights:

• The potential for increasing the error rate, unfortunately.
• Our error rate goes up.
• Our error rate goes up.
• What I am seeing is that error rates are not just for Mr.
• eligible for, we still get an increased error rate.

Summary: The Senate Health and Welfare Committee approved the February 19, 2026 minutes and then took up House Bill 863, which dealt with a roughly $22 million reduction tied to a program serving people with disabilities. Supporters said the bill would add transparency and oversight and help remove bad actors, while opponents warned the cut was too large and too abrupt and could destabilize services and harm good providers and clients. The committee voted 6-3 to send HB 863 to the floor with a due pass recommendation. The committee then heard House Bill 730, a SNAP program integrity bill sponsored by Senator Van Orden. The bill would require more frequent eligibility checks, including quarterly reviews, cross-checks with death, incarceration, labor, tax, lottery, residency, and citizenship data, and lower the asset threshold for certain categorical eligibility. Supporters argued the bill would protect taxpayers, reduce fraud and improper payments, and help Idaho avoid future federal penalties under the One Big Beautiful Bill framework; they also said the state’s current low error rate could be preserved or improved. Opponents, including the Idaho Food Bank and the Hunger Coalition, said the bill would add bureaucracy, create barriers for eligible households, and could raise error rates and state costs, while the Idaho Center for Fiscal Policy warned of significant potential penalties if error rates rise. After testimony and debate, members split over the bill’s new fiscal note and the added administrative burden, but supporters said the measures were needed as federal costs shift to the state. The committee voted 7-2 to send HB 730 to the floor with a due pass recommendation, and then adjourned because they were late for the floor session.

Transcript Highlights:

• An employer's final rate is its applicable base rate for its risk class, as modified by an experience
• If L&I limits the maximum premium rate increase for any class below that actuarially indicated rate,
• It must also publish the rate classifications limited by L&I and the respective proposed rate, what the
• Last year, L&I had an actuarial rate that was an average of 13%.
• And, of course, buying down rates with reserves is sometimes prudent. Rate caps can be prudent.

Summary: The Labor and Workplace Standards Committee held public hearings on several Department of Labor and Industries request bills and related workplace measures. Senate Bill 6039 would allow L&I to send notices electronically with an opt-out option; Senator Curtis King and L&I supported it as a simple modernization and the committee heard no opposition. Senate Bill 6136 would require L&I to publish actuarially indicated workers’ compensation rates and explain when rates are capped below those levels; Senator King and employer groups described it as a transparency bill, while L&I said it would disclose how reserve funds and rate caps affect different classes. Senate Bill 6188 would expand L&I’s authority over asbestos certification rulemaking beyond rules specifically required to match federal standards; Senator Victoria Hunt and L&I argued this would strengthen worker safety and training, while the Building Industry Association raised concern about diverging from federal rules and asked for narrower authority. Senate Bill 6014 would create a Public Records Act exemption for people involved in pregnancy-accommodation complaints or investigations and fix a cross-reference in last year’s pregnancy accommodation law; Senator T’wina Nobles and Moms Rising said it would restore intended protections and privacy for pregnant and postpartum workers. The committee also heard testimony on Senate Bill 6058, which would give L&I discretion to investigate wage complaints under the Wage Payment Act and assess penalties for willful violations when it initiates an investigation; L&I supported the bill and noted a House amendment to reduce costs and avoid conflict with another wage-recovery measure. For Senate Bill 6136, hospitality, construction, and self-insured employer representatives all supported the measure as a transparency step, with the self-insurers noting the impact of PTSD presumptive claims on rate classes. For Senate Bill 6188, L&I said the bill would let the department set stronger certification standards for asbestos workers and supervisors, while BIAW argued the bill should be limited to specific EPA model standards rather than removing the current statutory limitation. In executive session, the committee took action on five bills. On Engrossed Second Substitute Senate Bill 5061, which requires annual prevailing-wage adjustments in public works contracts, an amendment allowing change orders for wage increases over 5% failed, a one-year effective-date delay was adopted, and the bill passed 7-2 as amended. Substitute Senate Bill 5874, allowing ESD to waive penalties for minor unemployment-insurance reporting errors, passed 9-0. Senate Bill 5944, making missed-appointment payments part of bargained compensation for language access providers, passed 9-0. Substitute Senate Bill 5972, expanding binding interest arbitration for correctional officers in city and county jails, rejected two amendments that would have limited the binding effect and required consideration of local fiscal ability, then passed 8-1. Engrossed Substitute Senate Bill 6302, addressing misclassification of independent contractors on public works projects, passed 9-0. The committee then adjourned.

Transcript Highlights:

• This is a change from the average commercial rate which was a previous cap.
• Are we looking at actually funding that billion dollars on a annual rate?
• But yeah, we're going to have to pay billions and rate because of the rate.
• Yes, thank you because I'm looking at. >> How do we get an error rate of 15%?
• The proper rates are not and why so much. And it doesn't affect our services.

Transcript Highlights:

• </c> cost share based on higher error rates cost share based on higher error rates in<00:02:32.160><c
• </c><00:02:44.959><c> uh</c> history, why is our error rate uh history, why is our error rate uh higher
• </c><00:03:37.519><c> And</c> get lower than that 6% error rate.
• And get lower than that 6% error rate.
• </c> should get to that 6% air rate or less. should get to that 6% air rate or less.

Keywords: 1187, senate, all

Transcript Highlights:

• ,</c> rate because if we don't give the rate, rate because if we don't give the rate, the<00:45:10.240
• We're not going to ever give<00:48:40.160><c> rate.</c> give rate. give rate.
• A 2024 rate study benchmarked the CFI case management rate against its own existing rate rather than
• </c> rate setting principles. rate setting principles.
• . rate. rate.

Committee: Senate Health and Human Services

Keywords: 1191, senate, all

Transcript Highlights:

• Correct, it's that rate; the amount of earnings would be that rate.
• Correct, it's that rate; the amount of earnings would be that rate.
• </c><01:09:36.199><c> for</c> the rate for the replacement rate for the rate for the replacement rate
• rate.
• per. but the rate the rates by 5 plus per. but the rate there<04:36:18.400><c> is</c><04:36:18.920><c

Committee: House Labor, Industrial and Rehabilitative Services

Keywords: 1189, house, all

Transcript Highlights:

• We request an additional increase of a base rate of Medicaid reimbursement for this base rate this time
• We're requesting an additional increase of a base rate of Medicaid reimbursement for the base rate this
• We have a 62% turnover rate.
• Percent in staff vacancy rates.
• I pay $12 an hour and can't hire at that rate. We have a... 62% turnover rate.

Bills: SB1 , SB 1

Committee: Senate Finance

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:

• 55 to 65% funding rate.
• The program's funding has been divided into two tiers known as rate one and rate two.
• The program's funding has been divided into two tiers known as rate one and rate two.
• So there is, while it's not officially a fixed rate, there is a redistribution of funds and Rate 2 local
• 1 and Rate 2 going back to Rate 2.

Summary: The committee heard presentations on the Governor’s education budget proposals for the Local Control Funding Formula (LCFF), Learning Recovery Block Grant, and Expanded Learning Opportunities Program (ELOP), followed by testimony from State Board of Education President Linda Darling-Hammond. On LCFF, Finance outlined the proposed 2.43% COLA, repayment of prior deferrals, and a trailer bill penalty for LEAs that fail to adopt Local Control Accountability Plans on time. The LAO said its COLA estimate was slightly lower and raised concerns that the Governor’s proposed TK staffing ratio increase may be more costly than estimated. Members also discussed whether the current COLA formula should better reflect California-specific or district staffing costs, and whether TK should be more clearly separated from the K-3 grade span adjustment to avoid larger K-3 class sizes. The chair asked staff to work with the LAO on both the TK/K-3 issue and alternative COLA calculations. For the Learning Recovery Block Grant, Finance proposed restoring the first of three delayed payments, $378.6 million one-time Proposition 98 General Fund, while the LAO recommended adopting the proposal but extending the expenditure deadline by at least a year. The LAO reported that districts had spent $1.6 billion of the $6.8 billion received through 2023-24 and said most districts were only now shifting from federal COVID relief to block grant spending. Members questioned whether the large state and federal investments were improving outcomes, citing declining reading and math trends, while Finance and the State Board president pointed to some signs of improvement, especially in math, attendance, and gains for some student groups. Darling-Hammond emphasized that student needs have grown, that recovery spending has gone to devices, ventilation, staffing, tutoring, summer school, and community schools, and that targeted interventions appear to be helping some districts recover faster than others. On ELOP, Finance proposed adding $435 million to expand universal access by lowering the Tier 1 threshold from 75% to 55% unduplicated pupils, bringing ongoing funding to $4.4 billion. The LAO said the estimate was reasonable but recommended delaying implementation for a year, aligning ELOP with ASES to reduce overlap, moving toward funding based on participation rather than enrollment, and considering a fixed Tier 2 rate. Members and witnesses discussed staffing challenges, the use of funds for students with disabilities, and uncertainty in Tier 2 funding caused by unspent dollars and opt-outs. Darling-Hammond supported ELOP as part of California’s broader after-school and summer learning strategy, said most districts are now offering full-day TK and expanded learning, and urged the state to reduce fragmentation across categorical programs and build more unified systems for funding, reporting, and support.

Transcript Highlights:

• </c><00:15:32.040><c> and</c> change the first year premium rate and change the first year premium rate
• </c> yes so the new we assuming the new rate yes so the new we assuming the new rate is<00:51:57.599>
• </c> authority to establish that premium rate authority to establish that premium rate at at at 0.78%
• first year I think the rate would have been 70; maybe then the second year the rate would have been
• um the assumed centered around the rate um the assumed rate<01:35:47.560><c> at</c><01:35:47.760><c>

Bills: HF3

Committee: House Ways and Means

Keywords: legislative auditor, reporting, accountability, state finance, executive agency oversight, 1183, house

Transcript Highlights:

• The Supreme Court benchmarked the interest rate to the Wall Street Journal prime rate, which today is
• 7.5 percent, which is a lending interest rate, and much higher than the Fed Funds rate, which today
• The comparability rate allows for a higher rate than that.
• The comparability rate allows for a higher rate than the floor, so it acknowledges the change that the
• And I actually hear in the bill analysis it says most states that have a safe harbor rate have rates

Summary: The committee considered a long agenda of bills, with most measures reported favorably after brief sponsor presentations, amendments, and roll calls. Early bills included SB 658 on lien waivers/releases, SB 736 on Brownfields redevelopment, SB 1002 on utility service restrictions, SB 1132 on right-to-repair for certain equipment, and SB 1378 on restitution for leaving the scene of a crash involving property damage. Each was amended or discussed as needed and then approved by the committee. The committee also advanced SB 768 on foreign control interests in health care licensing, SB 772 on school diabetes management and access to glucagon, SB 1400 on removal of altered sexual depictions posted without consent, SB 1696 on prearranged transportation services, and SB 1374 on school district reporting requirements for educator arrests and misconduct. Several bills drew notable public testimony and debate. SB 1132 prompted strong support from the sponsor and agriculture interests, but opposition from equipment dealers, technology groups, and wireless industry representatives who argued the market already provides repair options and that the bill could harm dealer networks and security. SB 1730, the Live Local/affordable housing bill, received extensive discussion about parking reductions, height and density preemption, attorney’s fees, local government authority, and impacts on Monroe County and other areas; the committee adopted an amendment and reported the bill favorably despite concerns from some members and advocates about parking, due process, and local control. SB 606 on public lodging and food service establishments also generated significant debate, with opponents warning it could displace long-term guests and vulnerable families, while the sponsor said it clarifies transient occupancy and removes ambiguity in the removal process; the bill passed after the committee rejected a related amendment. Other measures advanced with less controversy. SB 576 updated service-of-process rules, and SB 1164 authorized email delivery of landlord-tenant notices if the parties agree in writing, though tenant advocates urged clearer safeguards and the sponsor said he was not yet committed to the House version. SB 940 prohibited the resale of restaurant reservations without consent and was supported by restaurant interests. SB 1690, allowing infant safety devices or “baby boxes” as a legal surrender option, drew emotional support from several witnesses who said it would provide anonymous, life-saving alternatives for mothers in crisis; the committee continued discussion into the latter part of the meeting. Throughout, the committee adopted several amendments, heard both support and opposition from industry, advocacy, and local-government witnesses, and reported the discussed bills favorably by recorded vote.

Transcript Highlights:

• There were a number of provider rate increases to expand There were a number of provider rate increases
• Changes to capitation rates.
• We don't actually set their rates. The feds do, and they set an updated rate every year.
• error rate.
• And, you know, I talked to us... ...error rate, eligibility error rate.

Committee: House Health and Welfare

Keywords: 989, all

Transcript Highlights:

• I think that, um, the evidence that I see that the, that the rates are, the rate increases are consistent
• It doesn't say you can't increase rates. It just says, hey, you.
• The market usually dictates what the rates are.
• As he stated, carriers already provide their rate filings well in advance.
• regulation system in Texas does not allow for excessive rates.

Committee: House Insurance

Transcript Highlights:

• There are individual district rate maximums and aggregate rate maximums to keep the total tax rate for
• The tax rates are as follows... The tax rates are as follows.
• The rate is calculated by multiplying the applicable local renewable energy tax rate by the excess levy
• by the applicable excess levy rate.
• We'd like to see higher per-megawatt rates and an annual growth rate.

Summary: House Finance met on Friday, January 23rd, and heard three bills. On House Bill 2194, staff explained that the bill would allow a county and a city within that county to both impose the cultural access sales and use tax at the same time, with the county providing a credit for the city tax. Representative Parsley said the change would let more jurisdictions support cultural, arts, science, and school-related programs. Olympia and Thurston County officials testified in support, describing grant funding for cultural organizations, free programming, and school access benefits; a committee member raised a question about how the change could affect county bond obligations. The committee then heard House Bill 2089, which would narrow a B&O tax preference for first mortgage interest by removing the requirement that a financial institution be located in 10 or more states, and direct the resulting revenue to the wildfire response, forest restoration, and community resilience account. Staff said the bill would raise significant revenue and have implementation costs for the Department of Revenue. Representative Scott said the bill was intended to restore wildfire funding and limit the preference to community banks, while opponents from the Washington Bankers Association and Community Bankers of Washington warned the bill could harm community banks and mortgage lending if not drafted carefully. The Department of Natural Resources and a public employee representative supported restoring wildfire preparedness funding. Finally, the committee heard a proposed third substitute for House Bill 1960, which would replace property taxation for new or repowered large renewable energy facilities and battery storage systems with a state and local excise tax structure, while also creating a local investment distribution account and a tribal capacity grant program. Staff and the sponsor described the bill as a way to reduce property tax shifts onto nearby taxpayers and provide more stable, predictable revenue for local governments and tribes. County officials, assessors, treasurers, and some clean energy and conservation groups supported the concept but asked for clearer definitions, payment timing, and rate adjustments; utilities and renewable developers said they supported the goal but opposed the bill as drafted because of concerns about the rates and the treatment of centrally assessed utilities. No votes were taken, and the committee adjourned after closing the hearings on all three bills.

Transcript Highlights:

• , through their Fed funds rate.
• That's the Fed funds rate.
• mortgage rates.
• have, and we saw that 30-year rate going up and up, even though they keep on lowering rates.
• If you think about the CAGR, or the compound annual growth rate, of rates, of electricity rates, over

Summary: The committee was convened to review Idaho’s economic outlook and general fund revenue projections, with members instructed to complete and submit individual “homework” revenue projections for fiscal years 2026, 2027, and 2028 by noon the next day. Chairmen explained the binder materials, the committee’s constitutional charge, and the plan to compile member projections into an average and median for deliberation and a recommendation to JFAC. They also noted the meeting was being broadcast publicly and thanked staff and presenters. Keith Bybee of Legislative Services Office outlined the state’s general fund budget picture, emphasizing structural imbalance between revenues and expenditures, the impact of statutory spending growth, and the need to decide whether to address the gap through spending cuts, cash balances, or other policy changes. He highlighted major budget drivers such as Medicaid expansion, public defender costs, IT consolidation, public school funding changes, and water resources spending, and discussed available cash reserves, including the budget stabilization fund. Committee members asked about Medicaid’s net cost, the treatment of the $330 million school funding adjustment, the Millennium Fund, and whether rainy-day funds or interest earnings were being used in the governor’s budget. Aaron Phipps of the Division of Financial Management presented the executive revenue forecast and explained changes in reporting for sales tax and the tax relief fund, including how certain transfers would now be treated as accrued general fund revenue. She described a sharp but likely temporary drop in corporate income tax collections tied to federal tax changes and taxpayer behavior, especially the One Big Beautiful Bill Act and the SALT workaround, and said the overall income tax forecast remained relatively steady. Robert Spindlove of Zions Bank described national conditions, including lower Fed rates, a re-steepening yield curve, higher tariffs, mixed inflation signals, slowing but not contracting labor markets, and continued consumer spending, and said 2026 looked like a rebuilding year. Sam Wilkenhauer of the Idaho Department of Labor reported that Idaho’s labor market remained strong, with low unemployment, steady job growth, balanced industry expansion, and wage growth moderating from the overheated post-pandemic period; he forecast continued but more sustainable growth over the next two years.

Transcript Highlights:

• </c> increases on those rates. increases on those rates.
• ,</c><00:31:34.880><c> their</c> scheme of Xcel Energy's rates, their scheme of Xcel Energy's rates,
• It's the rate payers in Colorado.
• </c> bill, and Xcel Energy also rates bill, and Xcel Energy also rates operates<00:34:06.280><c> in</
• </c><00:35:00.120><c> So,</c> we would be saving rate payers. So, we would be saving rate payers.

Keywords: 1183, house