Transcript Highlights:

• In a time when our nation suffers extreme levels of income and wealth inequality, the Republican plan
• . that income.
• That's not a level. It's not a level playing field and what we want for our small business...
• levels or to foreign investors, as you say.
• We had an income tax in the mid-1800s.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: joint hearing, small business, Tax Cuts and Jobs Act, economic recovery, tax relief, job creation

Summary: In this joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, the primary focus was on the importance of making the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. The chair emphasized that small businesses are crucial for the nation's economic recovery, especially in the wake of current federal policies perceived as detrimental. Witnesses shared their experiences and highlighted how the tax cuts facilitated job creation and business expansion, stressing the need for continued support through ongoing tax relief measures. The meeting included discussions about the economic implications of the TCJA's potential expiration, with members voicing their concerns regarding how this could impact small businesses and the broader economy.

Transcript Highlights:

• An SRP benefit is equal to a goal income minus an assumed income, and I have some notes under each of
• An SRP benefit is equal to a goal income minus an assumed income, and I have some notes under each of
• minus the assumed income is positive.
• And that was a lot of information on the assumed income.
• that level until later.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on June 23, 2026, for a work session that began with an overview of the Higher Education Supplemental Retirement Plan (SRP) and a 2025 accounting valuation of that plan. Staff explained that the SRP is a closed defined benefit supplement for higher education employees hired before the 2011 closure, with employer contributions currently pre-funding benefits in institution-specific trusts while institutions still pay benefits on a pay-as-you-go basis. The State Actuary’s office reported that the plan’s accounting position has improved, with combined market assets of about $245 million against $377 million in accrued liability, and that strong market performance since 2022 has increased the asset-to-liability ratio. The office emphasized that this was an educational accounting valuation, not a funding valuation for rate-setting. The council then received the 2025 actuarial valuation report for the state retirement systems. Actuaries reviewed the recent demographic experience study, noting updated assumptions for mortality, retirement, termination, and salary growth, and said the net impact on most plans was small. They reported that most plans’ funded ratios improved, with all plans at least 94% funded and several at or above 100%, and that contribution rates for the 2027–2029 biennium are generally lower than current rates. They also noted that future rates could be affected by market volatility as deferred gains are recognized over the next few years. During public comment, a representative of the Association of Washington Cities urged the council to consider rate reductions to help local governments facing budget pressures. In executive session, the council first approved a motion directing the Office of the State Actuary to perform an actuarial evaluation and analysis of each institution’s Higher Education Supplemental Retirement Plan, including institution-specific contribution rates, asset sufficiency, and funding policy options, due by July 1, 2028. The council then adopted the 2027–2029 pension contribution rates based on the 2025 actuarial valuation report. Both motions passed 5-0, with one member excused. The meeting concluded with no further business.

Transcript Highlights:

• to campuses that are above their levels and looking to expand capacity.
• And as we move from left to right on the graph, we go from the lowest-income students to sort of middle-income
• students at both the graduate and undergraduate level.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding
• As we've talked about, students that are in that middle income, that maybe their income levels are outside

Summary: The Senate Budget Subcommittee on Education heard updates on higher education issues, beginning with California State University’s turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment is growing systemwide, but some campuses, especially in Northern California, face structural declines tied to demographics and community college pipelines. The plans focus on reengaging stopped-out and adult learners, expanding partnerships and guaranteed admissions, improving retention and student support, and reducing costs through program suspensions, hiring freezes, shared services, and procurement consolidation. The Legislative Analyst’s Office said the strategies were reasonable but urged regular legislative updates, and the Department of Finance had no additional comments. Committee members emphasized the need for implementation oversight, written updates, and attention to student outreach, financial aid, and privacy concerns around AI tools used in recruitment. The committee then reviewed the Bureau for Private Postsecondary Education’s request for a $10 million General Fund appropriation to repay litigation-related borrowing. Department of Consumer Affairs and bureau staff said the bureau has a long-standing structural deficit, has already cut positions and shifted some costs, and that the General Fund backfill would reduce future fee increases on institutions. The LAO opposed the request, arguing the bureau can cover near-term costs with its existing loan and that litigation costs should remain the responsibility of the regulated entities through fees. Finance supported the one-time backfill as a unique situation that would lower fee increases and avoid passing litigation costs on to schools and students. Members asked about preventing a repeat of the problem, and bureau staff said they are pursuing fee increases through the sunset review and have strengthened internal policies and disability accommodation practices. The subcommittee also heard a broad update on Cal Grant funding and student aid. The California Student Aid Commission, UC, CSU, and the community colleges described Cal Grant as essential to affordability, but the LAO noted spending has grown faster than historical averages and said the state likely lacks capacity for major expansion in the near term. The segments highlighted the importance of state aid in covering tuition and living costs, and raised concerns about federal changes to student loans and Pell Grants, especially the elimination of Grad PLUS for some graduate students and limits on part-time borrowing. Committee members pressed for data on students who are eligible but not served by current Cal Grant rules, including adult learners and students affected by age and merit restrictions, and asked for analysis of phased-in implementation of the Cal Grant Equity Framework. Finance said full implementation would cost hundreds of millions of dollars and that affordability remains part of the state’s multi-year compact with the segments. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC and the UC and CSU said the program is a key part of affordability and debt reduction, especially after the 2022 reforms that expanded awards to total cost of attendance and improved administration. They warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance and could affect enrollment and persistence, particularly for middle-income students who do not qualify for other need-based aid. The segments also noted that recent administrative changes have reduced award revisions and campus workload, but that data exchange and award volatility remain challenges.

Transcript Highlights:

• And as we move from left to right on the graph, we go from the lowest-income students to sort of middle-income
• and undergraduate level.
• Thank you. at various levels.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding
• As we've talked about, students that are in that middle income, that maybe their income levels are outside

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Transcript Highlights:

• </c> paying as much as 58% of their income paying as much as 58% of their income toward<00:42:37.359>
• or at the state level.
• or at the inspectors at the local level or at the state<00:57:35.039><c> level</c><00:57:35.359><c>
• </c><01:30:30.040><c> and</c> you look at sort of the incomes and you look at sort of the incomes and
• ><c> income</c><01:30:37.080><c> of</c><01:30:37.239><c> the</c> vulnerable the median income of the

Committee: House Housing

Keywords: 1189, house, all

Transcript Highlights:

• Thank you. in income in they did in the first three in income in they did in the first three quarters
• All their employees pay income<00:25:07.840><c> taxes.</c> income taxes. income taxes.
• or state income taxes.
• or state income taxes.
• ><c> taxes</c> pay income taxes, federal income taxes pay income taxes, federal income taxes or<00:49

Committee: House County and Municipal Government

Keywords: 1136, house, all

Transcript Highlights:

• Just some context on how that would work at the federal level.
• That credit ranges from 20% to 35% depending on your income and your expenses.
• That credit ranges from 20% to 35% depending on your income and your expenses.
• This is an individual income tax issue for taxpayers who have solar energy devices.
• And then we used to have that level as, and that's all we did.

Keywords: 1182, all

Transcript Highlights:

• Similar disparities exist for vaping. 12.6% of low-income adults vape compared to 6.5% of higher-income
• There are three levels of property tax relief depending on the income of the household.
• So if the household income is less than 70% of county median household income, property is exempt from
• And then if household income is less than 60% of county median household income, the exemptions that
• The household income has to be below 75% of county median household income.

Bills: SB6073 , SB6113 , SB6116 , SB6129 , SB6162 , SB6114 , SB5857

Committee: Senate Ways & Means

Keywords: SB 6073, LEOFF, Law Enforcement Officers' and Fire Fighters' Retirement System, retirement system, pension, public safety retirement, wildland firefighter, aviation firefighter, wildland fire, forest firefighter, Department of Natural Resources, DNR, firefighter benefits, retirement benefits, service credit, disability retirement, survivor benefits, employer contributions, Washington RCW, public employees

Transcript Highlights:

• We can have rich people living next to middle-income people, living next to low-income people.
• We found that nearly 905,000 renters with incomes below 60 percent of area median income are cost burdened
• So almost three-quarters of renters with incomes below 60% of area median income are cost burdened, a
• Then the orange line down at the bottom is the median income.
• So people have the income, they have a job, but... The need in terms of the income.

Committee: Senate Community Affairs

Summary: The Committee on Community Affairs met with a quorum present and first took up SB 122, which would repeal Chapter 205 governing local business taxes while allowing municipalities that already levy a gross-receipts-based business tax to continue doing so, with limits on changing the tax rate. The sponsor’s proxy and committee members discussed whether local business taxes fund identifiable services, with supporters saying the bill would reduce burdens on businesses and opponents arguing it would remove a capped home-rule revenue source used for general services, economic development, inspections, fire and police support, and business regulation. The Florida Association of Counties and the Florida League of Cities opposed the bill, citing a statewide revenue loss and concern that costs would shift to residential taxpayers, while one member noted the bill should be considered in the context of broader property tax changes. SB 122 was reported favorably by a roll call vote, with Senators Leek, Passidomo, Pizzo, Trumbull, and Chair McClain voting yes and Senator Sharief voting no. The committee then held an extended informational panel on Florida’s housing shortage and affordability challenges. Dr. Samuel Staley said Florida is in a housing crisis driven primarily by insufficient supply, arguing that the state needs far more units each year, that local comprehensive plans and zoning often fail to prioritize housing, and that the state should focus more on measurable impacts, density, accessory dwelling units, smaller lot sizes, and other ways to let the market respond. Ann Ray of the Shimberg Center presented data showing increased single-family and multifamily construction but limited condo growth, highly concentrated new development in a handful of counties, and continued high cost burdens for renters, especially lower-income and older households. Leslie Deutsch of John Burns Research and Consulting said the national housing market is slow, Florida prices are easing but remain well above pre-pandemic levels, and affordability problems are being driven by land, construction, financing, and insurance costs; she urged more product diversity, including build-to-rent, townhomes, manufactured housing, and higher-density redevelopment tailored to local demographics. Members questioned the panel about density, vertical development, impact fees, construction costs, and incentives for local governments. Several senators said local governments need clearer direction or incentives to approve more housing, while others emphasized preserving local character and avoiding overdevelopment. The panel generally agreed that no single policy will solve the problem, but that Florida needs more housing types, more density in appropriate places, updated zoning and building codes, and a more market-responsive regulatory framework. After the presentations and discussion, the committee adjourned with no further business.

Transcript Highlights:

• countable income.
• So the level of income will depend on the type of service a client is receiving, and I'll talk a little
• Waivered services have a higher income standard, and generally this is income up to 300% of that SSI
• There are income disregards, so not all income is counted, and clients who do receive Medicaid services
• Waivered services have a higher income standard, and generally this is income up to 300% of that SSI

Summary: The Ways and Means Committee held a work session to review how H.R. 1 (the One Big Beautiful Bill Act) could affect Washington’s Medicaid, long-term care, developmental disabilities, and food assistance programs, with a focus on implementation challenges, fiscal impacts, and likely coverage losses. Staff and agency officials explained Washington’s Medicaid financing structure, eligibility categories, caseload trends, and the role of the Health Care Authority and DSHS in administering Apple Health and related services. They also described how Medicaid expansion increased access to behavioral health services and how H.R. 1’s provisions are expected to affect the expansion population most directly. Health Care Authority and DSHS officials outlined several major H.R. 1 changes: new work and community engagement requirements for the Medicaid expansion population, six-month redeterminations instead of annual renewals, changes to immigrant eligibility, limits on provider taxes and state-directed payments, new cost-sharing requirements, reduced retroactive coverage, and changes affecting long-term care eligibility. They said Washington is still awaiting federal guidance on many details, but estimated that about 620,000 Apple Health expansion enrollees could be subject to work requirements, that roughly 30,000 immigrants could lose Medicaid eligibility under the new definition of qualified alien, and that some long-term care and developmental disability clients could be indirectly affected. Officials also said the state is working with other agencies to build shared verification systems and may seek a delay waiver, though they do not expect broad federal flexibility. The committee also heard that H.R. 1 immediately blocks Medicaid reimbursement for Planned Parenthood services for one year, with the state planning to backfill about $11 million to preserve access. In addition, officials warned that the law could reduce federal Medicaid revenue by billions over time and strain hospitals and emergency rooms as more people become uninsured. They noted that Washington’s rural health transformation grant application is due November 5 and could bring some funding, but not to offset coverage losses. No votes were taken; the session was informational only. The committee then heard a separate presentation on food assistance, where staff and DSHS described H.R. 1’s SNAP changes, including expanded work requirements, immigrant eligibility restrictions, higher state administrative costs, and a possible future state share of benefit costs tied to payment error rates. DSHS estimated a four-year fiscal impact of about $750 million for food assistance changes and said the state is working on system and policy changes across agencies before the new requirements take effect.

Transcript Highlights:

• </c> ownership among all income levels. ownership among all income levels.
• </c> levels of income. levels of income.
• </c><00:14:10.000><c> So</c> skewed at the highest income levels.
• So skewed at the highest income levels.
• </c> at all levels of income. at all levels of income.

Keywords: 1183, house

Transcript Highlights:

• At the same time, they passed the income tax.
• At the same time, they passed the income tax.
• But we should have some level of... ...qualification.
• But we should have some level of expertise.
• But we should have some level of expertise.

Keywords: 904, all

Summary: House and Senate Republican leaders held a press event to preview the final weeks of the legislative session and criticize several Democratic proposals. Their main focus was a proposed income tax on high earners, which they said is really an income tax that could later be expanded, and which drew what they described as record opposition in public sign-ins and testimony. They also objected to other fiscal bills they said would raise costs for food, agriculture, health care, energy, labor, and consumer goods, and they argued these measures would worsen affordability and encourage people and businesses to leave Washington. The caucus also highlighted bills they opposed on policy grounds, including measures affecting local authority over camping bans and housing permitting, an anti-initiative bill they called anti-voter, and a bill on sheriff background checks. They said they supported or were pleased to see movement on some Republican-backed measures, including tax exemptions for diapers, prepared foods, and certain licensing and continuing-education costs, as well as a repeal of last year’s services tax. They also said the Senate’s move to roll back the estate tax was a partial step in the right direction, though not enough to offset the proposed income tax. A major portion of the event centered on child welfare and the Keeping Families Together Act. Republicans criticized a House bill they said only partially addresses the “imminent harm” standard and does not adequately protect children in drug-affected homes, citing recent fatalities and critical incidents. They said they will keep pushing for changes and also mentioned support for adding fentanyl to the child endangerment statute. In closing, they said they would continue floor fights over the next week, and House Republicans announced they will issue their own media credentials to promote press access in Olympia.

Transcript Highlights:

• And the reality is if you're in that income bracket where you're above 300% the area median gross income
• </c> under this it's it's not poverty level under this it's it's not poverty level but<00:15:23.760><
• </c> reality is if you're in that income reality is if you're in that income bracket<00:15:58.399><c>
• </c><00:30:12.720><c> of</c> low as that in terms of the income of low as that in terms of the income
• </c> is where it is adjusting your income. is where it is adjusting your income.

Committee: Senate Education

Keywords: Call to Order and Roll Call: 0:03 Bills for Consideration: 3:10 Adjournment: 56:19, 958, all

Transcript Highlights:

• level.
• <00:05:04.880><c> level.
• level.
• There are many senior income level.
• They don't have an income level. It's the same tax, but the state tax don't have partial exemption.

Committee: House Mobile County Legislation

Keywords: 1136, house, all

Transcript Highlights:

• So we have these rigid definitions and formulas that refer to poverty levels and refer to income levels
• And this income category variety and levels of this bill really does cover a substantial part of that
• I believe that, again, as was mentioned earlier, I do think, you know, the income levels here, look,
• Health and Human Services says low income is only 100% of the federal poverty level.
• Homeschool parents of all income levels already have total freedom.

Committee: Senate Education

Summary: The Senate Committee on Education K-16 convened with a quorum, adopted its committee rules, and heard opening remarks from members introducing staff and outlining priorities for the session. Members from both parties emphasized education as a major issue, while several Republicans framed the committee’s work around school choice and parent empowerment. Senator West and other Democrats stressed protecting public schools, listening to Texans, and considering the effects of vouchers or education savings accounts on school districts and communities. Chairman Creighton laid out Senate Bill 2, the Texas Education Freedom Act, describing it as a universal education savings account program modeled on similar programs in other states. He said the bill would provide about $200 million for a universal eligibility pool and additional funding for students with disabilities and lower-income families, with priority weighting for former public school students. He also highlighted anti-fraud measures, vendor pre-approval, criminal background checks, cybersecurity protections, annual testing requirements for participating students, and the use of the Comptroller rather than TEA to administer the program. Creighton repeatedly said the bill is not a voucher and argued it would not take money from public schools, which he said would receive separate historic funding increases. Members questioned Creighton about the 500% of federal poverty line definition, the adequacy of the $10,000 ESA amount, whether the program would favor students already in private school, how microschools and homeschool pods would fit, and whether the bill protects religious liberty and private-school autonomy. Democrats raised concerns about disability protections, 504 students, foster children, public-school funding, open records, and the historical context of vouchers. Republicans generally supported the bill as a way to expand options for parents and students, while also asking about administration, fraud prevention, and data security. After member questions, the committee began invited testimony, with EdChoice President Robert Inlow presenting in support of SB 2 and citing the growth and reported success of school choice programs nationwide.

Transcript Highlights:

• I've already mentioned some federal costs, some maintenance level costs.
• We need $21.38 million simply to level fund current services.
• This included people at high care levels.
• This included people at high care levels.
• That level of unmet demand is symptomatic of extreme need.

Summary: The Senate Ways and Means Committee heard an overview from OFM Director Katie Chapman See on Governor Ferguson’s 2026 supplemental budget proposal. She said the budget was built in response to higher caseloads and inflation, a roughly $390 million revenue forecast drop, new federal costs tied to H.R. 1, and a relatively small ending fund balance. The proposal would increase near general fund spending by about $1.1 billion and solve an estimated $2.3 billion two-year gap through about $800 million in reductions, revenue shifts and tax preference changes, use of other funds, and about $1 billion from the budget stabilization account. She also noted the budget is balanced over two years but not fully over four years under the state’s outlook rules. Chapman See highlighted reductions in Working Connections Child Care, including a soft cap on enrollment and holding subsidy rates at the 75th percentile, delays to long-term care and developmental disability-related changes, and across-the-board reductions to higher education and administrative spending. She also described investments in wildfire suppression and preparedness, affordability programs like utility rebates and home energy assistance, housing-related planning and permitting support, One Washington IT replacement, behavioral health workforce programs, and continued support for some K-12 initiatives such as ninth grade success and homeless student stability. In response to questions, she said some proposed cuts were based on the governor’s subjective judgment about what was critically necessary, that current child care enrollees would not be cut off immediately, and that the budget would maintain services for about 500 highest-acuity Medicaid clients who lost eligibility under federal changes. Public testimony was largely critical of the proposed cuts in K-12, early learning, and higher education. School officials, educators, nurses, and advocacy groups opposed reductions to Transition to Kindergarten, Local Effort Assistance, Running Start, MSOC, school leadership and support grants, and higher education funding, arguing the cuts would worsen existing funding gaps and harm student outcomes. Several witnesses supported restoring or maintaining funding for ninth grade success, Treehouse’s foster youth graduation program, homeless student stability, and Science on Wheels. In early learning, child care providers and advocates opposed the Working Connections cap and subsidy-rate reduction, warning it would reduce access and destabilize providers. In higher education, campus leaders and labor representatives opposed across-the-board cuts and fund shifts, while some institutions and advocates supported targeted investments such as behavioral health workforce programs and DigiPen aid restoration. In human services, Planned Parenthood advocates praised restored abortion access funding and Medicaid reimbursements. The committee took no votes or final action in the transcript provided.

Transcript Highlights:

• level.
• level.
• It intends to provide education funds for lower-income families, middle-income families, high-income
• It intends to provide education funds for lower-income families, middle-income families, high-income
• Education should be a great equalizer, but all too often it's tied to zip codes or income levels.

Committee: Senate Education

Keywords: 1191, senate, all

Transcript Highlights:

• The fee levels proposed by the Bureau The fee levels proposed by the Bureau and their Sunset report include
• And as we move from left to right on the graph, we go from the lowest-income students to sort of middle-income
• students at both the graduate and undergraduate level.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding
• As we've talked about, students that are in that middle income, that maybe their income levels are outside

Keywords: 987, senate, all

Transcript Highlights:

• All right, so we've got all of these different types and levels of income levels.
• up to 150% of the federal poverty level, or perhaps eliminating all income-based special enrollment
• level, which had never been done before.
• You're keeping up with that individual's status, income status, through monitoring their income.
• I mean, if 50% of my income is not taxable and I don't report it as taxable income, do I get a green

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• There's about $655 million of not technically maintenance level, but other necessary policy-level increased
• We need $21.38 million simply to level fund current services.
• This included people at high care levels.
• Unaddressed is the persistent high level of food insecurity statewide.
• It maintains current staffing levels and service levels.

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care