Transcript Highlights:

• We have numbers of how much more money it costs developers to access ...more money it costs developers
• What are the costs or cost savings by these ...new agencies? Thank you so much for the question.
• as possible, looking at shared costs across ...that this is as cost-neutral as possible, looking at
• shared costs across the agency.
• operate those buildings.

Summary: The joint hearing focused on Governor Newsom’s 2025 reorganization plan to split the Business, Consumer Services and Housing Agency into two new agencies: a Business and Consumer Services Agency and a California Housing and Homelessness Agency. Secretary Tamika Moss and department leaders from Consumer Affairs, Cannabis Control, DFPI, and Alcoholic Beverage Control said the business-side reorganization would sharpen consumer protection and regulatory oversight without increasing licensee fees or office-space needs. Members generally supported the concept, but several raised concerns about the timing relative to the budget process, the May Revision, and whether the new structure would add costs or disrupt legal and regulatory work. Public commenters from industry groups largely supported the business-side proposal. The second half of the hearing examined the proposed Housing and Homelessness Agency and a new Housing Development and Finance Committee intended to streamline affordable housing funding. Moss, HCD Director Gustavo Velasquez, and CalHFA’s Rebecca Franklin argued the reorganization would reduce fragmentation, speed approvals, improve compliance and asset management, and better coordinate housing, homelessness, and civil rights functions. They said CalHFA’s statutory and financial independence would remain intact, that the proposal would not affect existing homelessness programs administered by HCD, and that the plan would be phased in over several years, with the new agencies and committee expected to become operational by July 2026. Members pressed on whether the plan would truly create a one-stop shop, how it would interact with tax credits and bonds outside the Governor’s control, whether it would include a single application and unified inspections, and how it would address Los Angeles homelessness oversight and federal uncertainties such as tariffs and Section 8 changes. Developer witnesses strongly backed the housing proposal, describing the current system as slow, opaque, and costly. Margaret Miller of the John Stewart Company and Jeffrey Morgan of CHISPA gave examples of projects delayed or lost because multiple funding sources required separate applications, awards, and closings; both said a cabinet-level housing secretary and a consolidated funding process could save time and money and produce more units. Public advocates including Housing California, the California Housing Partnership, and the California Housing Consortium supported the concept but stressed that success would depend on implementation, adequate funding, transparency, and broader coordination with tax credit and bond programs. No formal votes were taken; the hearing was informational, and the committees heard testimony and questions on the proposal.

Transcript Highlights:

• assumptions, debating things like the cost of operating an automobile in 2035.
• This is less than a year before shuttering operations.
• and risk of operating a refinery in California?
• It is costly, and it will add to the cost of operating a refinery.
• It will add to the cost of operating a refinery in California, yes.

Committee: Senate Environmental Quality

Transcript Highlights:

• So it costs a lot to grow things.
• Then they have overtime cost of $259. $147 a head. Then they have overtime cost of $259 a head.
• If you look at their labor costs and related costs, it ended up being about $6,485 an acre, and their
• It was about 10% of their labor costs. I mean, 10% of the... It was about 10% of their labor costs.
• cost.

Committee: House Agriculture & Natural Resources

Summary: The House Agriculture and Natural Resources Committee held an interim work session focused on Washington agriculture’s viability, competitiveness, and the effects of federal policy and trade. Department of Agriculture Director Derek Sanderson outlined the agency’s role in inspections, food assistance, pesticide and fertilizer oversight, disease control, and marketing, and described Washington agriculture as a diverse, export-oriented sector facing declining farm numbers, high labor and input costs, low commodity prices, trade barriers, drought, regulatory burdens, and pest and disease pressures. WSU CAHNRS Dean Raj Kosla emphasized the land-grant mission, extension network, education programs, and research capacity, highlighting precision agriculture, broadband needs in rural areas, and the importance of research and outreach to support growers and rural communities. Members asked about farm loss, workforce challenges, precision agriculture, and the cost of technology. Kosla said precision agriculture can help address labor shortages but is often cost-prohibitive and dependent on rural broadband; he described it as applying the right input, in the right amount, place, time, and manner. He also noted that WSU’s research and extension system supports crop development, soil health, forestry, youth programs, and agricultural training, and that the college is eager to partner with the legislature on priorities. Sanderson said the department is working on local food systems, farm-to-school grants, infrastructure, market development, pest and disease response, climate resilience, and access to land for new and underrepresented farmers. The committee then heard from WSU economist Randy Fortenberry on an agricultural competitiveness study and trade impacts. He said the study used producer surveys, case studies, and shift-share analysis for dairy, grapes, hops, potatoes, apples/tree fruit, wheat, and small/diversified farms, comparing Washington to national trends and peer states. His findings indicated that Washington’s competitiveness is declining in most sectors, with potatoes as the main exception; labor and regulatory compliance costs were especially significant in dairy, grapes, potatoes, and tree fruit, while small farms were more constrained by land access, capital, and profitability. On trade, he said Washington is highly export-dependent and vulnerable to retaliation, citing past losses in wheat, apples, pulses, and cherries when tariffs disrupted access to China and India, while noting current uncertainty around Canada, Mexico, Japan, China, and India. No votes were taken. The committee discussed next steps, including a December interim report on food security and agricultural viability and a final report expected by June 2026. Sanderson said the department had already held a stakeholder workshop and is continuing internal and external review, while the chair asked WSU to connect the committee with policy experts who could help identify practical solutions.

Transcript Highlights:

• So you could run it without an operator or with an operator.
• So you could run it without an operator or with an operator.
• Chair, I'd be happy to answer questions. costs these are the costs for us to run costs these are the
• can operate.
• can operate.

Committee: Senate Transportation

Transcript Highlights:

• We also want to improve statewide fleet operations stabilize our property insurance costs, increase the
• The next item is $821,000 for increased costs to operate Microsoft Office 365, our primary technology
• individual operating costs.
• We're under the belief that we can consolidate that effort, pull the operational costs down in perpetuity
• We can save just operating costs alone $2 million a year with what our day-to-day expenses are right

Transcript Highlights:

• </c> commercial providers is that the cost commercial providers is that the cost make<00:14:04.959><c
• That current facility that we're operating court operations out of was constructed in 1862.
• That current facility that we're operating court operations out of was constructed in 1862.
• </c> existing operations in Kentucky. existing operations in Kentucky.
• Uh the use and uh operate under.

Summary: The Capital Planning Advisory Board opened its fourth meeting, confirmed a quorum, approved the prior meeting’s minutes by unanimous voice vote, and then heard information items and agency presentations. The main substantive presentation came from the Council on Postsecondary Education, which outlined its capital planning recommendations for the 2026–28 biennium. CPE staff described the role of Kentucky’s research and education network (Kron), including connectivity to cloud services, Internet2, identity services, and new local AI/inferencing capacity, and argued that the network is now essential to higher education, health care, and extension services. They said the network’s recent upgrades were driven by privacy, security, redundancy, and the need to support modern research and AI workloads at lower cost than commercial providers. CPE also presented its broader higher-education capital request: $700 million for asset preservation and $1.73 billion for new construction, for a total recommendation of about $2.4 billion. Staff said they do not plan to recommend IT projects or equipment in this cycle, despite reviewing 48 IT submissions totaling nearly $1.4 billion and equipment requests totaling $322.6 million. For asset preservation, they said the recommended allocation method would remain based on each institution’s share of Category 1 and 2 square footage, and they noted that the state’s prior facility assessment is now 12 years old, with deferred maintenance still estimated in the $7–9 billion range. For new construction, they said the requests are heavily focused on STEM and health-related facilities that are difficult to retrofit into older buildings. Board members asked about how asset-preservation amounts were determined, including why Northern Kentucky University’s request was much larger than its prior allocation. CPE staff responded that campus size, building age, and institutional prioritization affect the requests, and that schools are asked to submit more projects than are likely to be funded. The board then moved on to an Attorney General capital plan overview, where senior counsel Will Schroeder began describing the office’s technology needs and the office’s prior reliance on a 2020 appropriation to replace legacy systems and improve security.

Transcript Highlights:

• We deal with insurance costs, contract costs, all the costs that you hear about.
• It can't be done without it, because the gap between what people can afford and what it costs to operate
• for financing and construction so long as we come in with the funds to cover operating costs.
• also impacting cost.
• Costs: you've heard a lot today about costs.

Committee: Joint Joint Committee on Housing

Summary: The Joint Committee on Housing opened its second hearing of the session with remarks from Chairs Haggerty and Cyr emphasizing that the hearing was a broad look at Massachusetts’ housing crisis rather than a single bill. They highlighted topics including zoning, permitting, rental assistance, public housing, homelessness prevention, and housing production. The first witness, Housing and Livable Communities Secretary Augustus, reviewed implementation of the Affordable Homes Act and the state’s new housing plan, citing a 1.6% vacancy rate, a projected need for 222,000 new homes over 10 years, and ongoing efforts such as ADUs by right, fair housing enforcement, eviction record sealing, seasonal communities planning, and new funding for affordable housing, public housing, and the Momentum Fund. He also discussed infrastructure support for municipalities, technical assistance for ADUs, and concerns about possible federal funding cuts. Committee members questioned the secretary about ADU financing and technical assistance, the likely unit yield from the Affordable Homes Act, infrastructure barriers in suburban and rural communities, public housing waitlist management, supportive housing, and federal budget risks. MassNAHRO then testified that public housing authorities are facing rising operating and capital costs, a statewide waitlist nearing 300,000, and uncertainty over federal Section 8 and HUD funding. Witnesses described recent state support for operating subsidies, capital improvements, vacancy turnover teams, and resident service coordinators, while warning that proposed federal cuts could sharply affect voucher issuance and agency operations. CDAC’s executive director Roger Herzog described the agency’s role as a quasi-public source of early-stage financing and technical assistance for nonprofit housing developers, noting its loan capital, supportive housing bond programs, home modification loans, and preservation work under Chapter 40T. He said CDAC has helped produce or preserve more than 55,000 units and stressed the importance of patient capital and preservation tools. CHAPA CEO Rachel Heller urged the committee to focus on production, preservation, planning, and political will, supporting goals for affordability, supportive housing, and homeownership, and endorsing policy changes such as YIGBY, clearer site plan review rules, stronger fair housing funding, and more support for vouchers and public housing. MassHousing then outlined its financing role, including mortgage lending, down payment assistance, the Community Climate Bank, and the Momentum Fund, while noting that permitting delays, capital gaps, and possible federal changes could affect production. Members also asked about transparency, prevailing wage compliance, and a recent internal restructuring related to diversity and business engagement.

Transcript Highlights:

• high cost of living.
• Energy costs are also rising rapidly.
• , energy costs, insurance costs.
• in which we operate.
• But I'm also looking at the increased costs of benefits.

Summary: The committee heard Senate Bill 1277, which would create a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide refundable relief to low- and middle-income Californians facing high housing, fuel, energy, and general living costs. Senator Grove and supporters, including the California Policy Center and some local government representatives, argued the bill would put direct relief into the hands of working families. Opposition came from the California Tax Reform Association and the California Teachers Association, which said California already has progressive tax credits and that the proposal would be costly to the General Fund and reduce money for schools and other services. After extended debate, the bill was not advanced; a roll call vote on a motion to pass it to Appropriations failed 1-4, and the bill was held/fails on the floor with a request for reconsideration noted. The committee then heard SB 1287, which would create a capped tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the measure would improve safety, reliability, emissions, and freight movement, especially for rural communities and agriculture, and that it was a public-private partnership rather than a handout. Opposition from CTA and the California Tax Reform Association argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call without a final vote in the transcript. Members also considered SB 1407, which would fully exempt military retirement pay and surviving spouse benefits from state income tax, increasing the prior partial exemption. The author, State Treasurer Fiona Ma, and veterans’ groups said the change would help retain veterans in California, support local economies, and align California with most other states. CTA and CTRA opposed on General Fund grounds. The committee approved the bill on a due-pass-as-amended motion to the Committee on Military and Veterans Affairs, with the roll call showing support and the bill placed on call. Later, the committee heard SB 1349, directing the Legislative Analyst’s Office to review major tax expenditures and evaluate their goals, beneficiaries, and effects on revenues and Proposition 98 funding. CTA, CTRA, and several local government and labor supporters backed the bill as a way to improve accountability for roughly $94 billion in annual tax expenditures. The bill was accepted with committee amendments and placed on call. The committee also heard SB 1078, authorizing Santa Cruz County to ask voters for a temporary half-cent sales tax to help fund health care and safety-net services amid federal cuts; it was placed on call. SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries, received strong support from business and manufacturing groups and was passed on a due-pass-as-amended motion to Appropriations. Finally, SB 1275, which would replace the state sales tax on vehicle purchases with a vehicle license fee structure intended to increase federal deductibility for Californians, was passed 4-0 as amended to the Committee on Transportation.

Transcript Highlights:

• beyond the existing operational costs that average about $1.3 billion annually.
• So the costs aren't even the same.
• In a time when we're dealing with added fees, high cost in energy, high cost in water, SB 924 modernizes
• We oppose SB 1011 as a cost driver.
• We oppose SB 1011 as a cost driver.

Committee: Senate Energy, Utilities and Communications

Summary: The committee heard a long agenda of energy, water, and utility bills. SB 952, SB 1417, SB 924, SB 925, SB 1011, SB 1168, SB 1196, and SB 1350 were all discussed, along with consent items SB 1008 and SB 1245. SB 952 would give the Department of Water Resources more flexibility in meeting clean energy procurement goals for the State Water Project; it drew support from the State Water Contractors and California Municipal Utilities Association and no opposition. SB 1417 would extend transparency and notice requirements to mutual water companies, especially in response to wildfire-related rate increases in Altadena; supporters described lack of notice, meeting access, and public accountability, while the California Association of Mutual Water Companies opposed the bill as overly prescriptive and potentially conflicting with existing law. SB 924 would modernize low-income energy assistance and weatherization programs to better measure affordability outcomes and tenant benefits, and it passed with broad support. SB 925 would direct the Energy Commission to develop a statewide roadmap for fusion energy; it was supported by industry and clean energy groups and passed without opposition. SB 1011 would require CPUC standards for human review of utility AI systems and labor consultation; supporters framed it as a safety and workforce protection measure, while utilities and business groups warned about cost, duplication, and overbroad regulation. SB 1168, now a study bill, would have the CPUC examine how data centers pay for load growth and rate impacts; it drew mixed reactions, with some industry opposition and some labor support after amendments. SB 1196 would speed utility hookups for ADUs and JADUs by allowing earlier applications and setting timelines; housing advocates supported it and it passed. SB 1350 would allow renewable portfolio standard credit for power plants using green hydrogen, with strong support from hydrogen, labor, and utility interests, but TURN opposed it unless amended, arguing it lacked safeguards against greenwashing and resource shuffling. The committee also approved the consent calendar and several bills were reported out on recorded votes, with most measures advancing on strong bipartisan support and a few no votes from Senators Strickland and Dahle on selected items.

Transcript Highlights:

• costs that you incur when you do a project.
• Whether we're using our, you know, a new build cost for a combined cycle or costs from maybe five years
• And so as we move and... ...low dispatch costs.
• costs than kind of that existing average.
• If I operated my utility like that...

Committee: Joint Public Utilities, Energy, and Technology Interim Committee

Transcript Highlights:

• Today, California operates as a fuel island.
• operating expenses, but they are included.
• And that goes to the cost-of-service model.
• of a cost.
• So they are operating in silos.

Committee: House Utilities and Energy

Transcript Highlights:

• comparables to outside vendors and compare those costs to some of the state contract costs and trying
• “Outside vendors and compare those costs to some of the state contract costs and trying to narrow those
• comparables to outside vendors and compare those costs to some of the state contract costs and trying
• “Outside vendors and compare those costs to some of the state contract costs and trying to narrow those
• The total cost identified includes costs for all claim types, so it's other programs, headquarters, incarcerated

Summary: Assembly Budget Subcommittee No. 6 heard the Governor’s May Revision proposals for the judicial branch, the Board of State and Community Corrections, the Department of Justice, and the California Department of Corrections and Rehabilitation. The Legislative Analyst’s Office opened with a warning that the state budget remains structurally imbalanced and urged the Legislature to avoid new ongoing spending unless offset by reductions elsewhere. In the judicial branch discussion, the Judicial Council highlighted language access funding, appellate court security, a backfill for the state court facilities construction fund, and an extension of the lactation room mandate; Finance supported most items but suggested reporting language on interpreter costs and reducing the General Fund backfill. Members raised concerns about judicial vacancies, long-term salary freezes, remote hearings, and the lack of progress on court staffing in some counties. For the Board of State and Community Corrections, the administration proposed $10 million one-time each for the Missing and Murdered Indigenous People grant program and a human trafficking vertical prosecution grant program. The LAO said both should be weighed against other priorities and suggested the Legislature consider whether the Tribal Nations Grant Fund could support MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. Members strongly supported MMIP funding and asked whether ongoing support would be considered. On the human trafficking grant, Finance said BSC was a good fit because of its grant administration experience and prior vertical prosecution work, while legislators asked why the program was not placed with the Office of Emergency Services as originally contemplated in prior legislation. The Department of Justice presented antitrust litigation funding, Medi-Cal Fraud and Elder Abuse staffing, completion of organized retail criminal enterprise cases, and trailer bill language for a continuous appropriation from the Victims of Consumer Fraud Restitution Fund. The LAO supported the antitrust account use but questioned the Unfair Competition Law Fund’s ability to cover the full request without General Fund repayment, and recommended against a continuous appropriation for the restitution fund in favor of a more limited mechanism with legislative oversight. Finance said the fund would remain solvent and defended the continuous appropriation as necessary to pay victims promptly. In the CDCR portion, the largest discussion centered on the Boston Consulting Group efficiency review and sharply reduced savings estimates; LAO said the department had not fully explained the proposed position eliminations or future $100 million savings target, while Finance said the work reflected deeper analysis and ongoing efforts to find savings. Members repeatedly pressed CDCR and Finance on the gap between earlier promised savings and the revised figures. CDCR also outlined population projections showing continued declines in prison and parole populations, while LAO again urged the state to close an additional prison to save ongoing costs. The department then walked through several May Revision items, including workers’ compensation funding, a Corcoran honor housing dorm, incarcerated firefighter pay implementation, an incarcerated menopause program, mental health receiver staffing, mental health resource teams and crisis intervention teams, medical classification staffing changes, and AI note-taking for the electronic health record. LAO generally recommended limiting-term funding and more reporting for many of these proposals, while Finance defended them as necessary ongoing investments or court-ordered obligations. Members questioned the cost of workers’ compensation, the need for more prison closures, the lack of funding for women’s facility violence prevention, and the timing and transparency of the BCG savings process. No votes were taken.

Transcript Highlights:

• the federal government passes and that the state of Minnesota passes, and they need to provide low-cost
• medications as they're obligated to do under federal law to our safety net hospitals for their operations
• been in such a critical situation in our state, and 340B funding is essential to their ongoing operations
• </c><00:09:40.840><c> So,</c><00:09:41.080><c> this</c> that is operated by Fairview.
• So, this that is operated by Fairview.

Summary: The meeting focused on a Minnesota Senate floor debate over a bipartisan 340B enforcement bill, with supporters arguing that the measure would require pharmaceutical companies to comply with federal and state law and continue providing discounted drugs to safety-net and rural hospitals. Senators and other speakers said the program is essential to hospital finances, especially for facilities facing operating losses and federal Medicaid cuts, and warned that without enforcement language hospitals such as Hennepin County Medical Center and rural hospitals could face severe financial harm or closure. Supporters also said pharmaceutical companies had spent heavily on media and lobbying to oppose the bill and that the Senate’s bipartisan vote showed the issue had broad support. Several speakers described how 340B revenue is used to sustain hospital services, including addiction treatment, trauma care, and other essential care in vulnerable communities. They said the program was designed to let hospitals buy drugs at low cost and bill insurers at standard rates, using the difference as a funding stream. When asked about claims that hospitals made large sums from the program, supporters said that was consistent with the program’s purpose. They also said some drug companies were not complying with 340B obligations, particularly around contract pharmacies, and that enforcement language was needed to ensure compliance. The discussion also addressed HCMC’s financial situation, with speakers saying 340B funding is not a full solution but is an important support and should not be reduced further. They rejected a proposed transparency/reporting amendment as too burdensome, while noting that federal authorities already have audit power over 340B dollars. The speakers urged the House to pass the same language, said eight Republicans joined the Senate vote, and expressed hope that the bill would advance despite concerns about House support and ongoing pharmaceutical industry opposition.

Transcript Highlights:

• B is Division of County Operations. It is $371,582 in spending authority.
• This is to operate the Community Assistance Grants Program.
• I’m just talking about items that might make up operating expenses.
• Those are all in our operating appropriation section.
• It's from operating expenses to professional fees.

Committee: All ALC-PEER

Summary: The committee reviewed a large slate of appropriation, transfer, and continuation requests across multiple sections. In Section B, members considered temporary FY27 appropriations for agencies including Health, DHS, Education, Treasury, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, Game and Fish, and others, covering items such as maternal health outreach, LIHEAP overpayment returns, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim claims, airport grants, conservation incentives, and emergency tower maintenance. Questions focused on the DHS senior services carry-forward and Treasury custodial banking fees tied to lower balances after COVID funds were spent down. All Section B items were approved. The committee then approved continuation requests, ARPA reallocations, and federal grant-related items in Sections B2, C1A, D1, D2, D3, E1, E2, E3, F1A, G1, H1A, I1A, J1/J2, K1/K2/K3, L1/L2, M1/M2, N1/N2, O1A, and P1A. These included university nursing and workforce programs, environmental and recycling grants, highway safety and emergency management grants, a transfer to the Merit Teacher Incentive Program, restricted reserve transfers for military, agriculture, UAPB, Game and Fish, and AETN, and various cash-fund and budget classification transfers. Several members asked for more detail on the State Police highway safety grant, VOCA victim compensation funding, the NSGP nonprofit security grant, and the Office of State Technology’s E-Rate-related transfer; agency officials explained the uses and noted that some funding levels depend on federal awards and collections. A notable discussion occurred on the Department of Commerce reallocation, which shifts 68 positions and $3 million among divisions to support an organizational realignment and avoid shortfalls. The committee also reviewed a state central services deduction request to keep the rate at 2%, a DHS overtime request for child protection caseloads, and a year-end adjustments request authorizing up to $1 million in temporary actions to close FY26 books without disrupting payroll or vendor payments. Most items were approved or, in some sections, simply reviewed without objection. The meeting adjourned after completing the agenda.

Transcript Highlights:

• way reduce the overall costs?
• not a low cost.
• Costs range from $10,000 to over a million dollars in terms of additional costs.
• The cost of the audits is covered by fees charged.
• It shows indeterminate costs.

Bills: SB5834 , SB5835 , SB5883 , SB5905 , SB6151 , SB6163 , SB6177 , SB6173

Committee: Senate Ways & Means

Keywords: Washington retirement systems, retirement trust funds, interest earnings, public employee retirement system, teachers retirement system, state patrol retirement system, judicial retirement system, judges retirement system, school employees retirement system, public safety employees retirement system, law enforcement officers and firefighters retirement system, PERS, TRS, LERS, legal expenses, medical expenses, administrative expenses, fraud prevention, overpayment recovery, trust fund protection

Transcript Highlights:

• The operations and maintenance costs pay for everything that you might imagine it takes to operate a
• of the vehicles, the cost of customer service, the cost of the operator in that vehicle.
• The cost of customer service, the cost of the operator in that vehicle.
• Frequency and ridership modeling have informed the transit operations cost, and as I mentioned, we're
• On the cost, I've got a voice out of concern I would have on the... ...more of the operating in on the

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Oregon-Washington Legislative Action Committee met for a work session and public hearing on the Interstate 5 bridge replacement program. Program staff outlined major milestones, including the recent biological opinion, the Coast Guard’s opening of a public comment period on the Navigation Impact Report, expected decisions in early 2026 on navigational clearance and the final supplemental environmental impact statement, and a possible amended record of decision in 2026. They also discussed the Bridge Investment Program grant amendment deadline, the need for an initial finance plan, and ongoing community outreach and contractor engagement. Greg Johnson announced he was stepping down as program administrator, and Carly Francis introduced herself as interim administrator. A large portion of the meeting focused on design and cost questions. Staff said the program is studying fixed and movable spans, single- and double-deck configurations, and one versus two auxiliary lanes, with final recommendations to be made through the federal environmental process. They said the Coast Guard’s decision is central to what bridge configuration is permittable and to the timing of the updated cost estimate, which has not yet been released. Members pressed for more detail on cost drivers, potential impacts to businesses upriver, and whether the states would need to seek additional funding. Staff said they had reached agreements with four impacted river users, but the underlying evaluation materials are protected and not publicly releasable. The committee also reviewed transit-related questions. Staff explained that light rail remains part of the modified locally preferred alternative and that ridership and operations estimates are being updated using federal modeling methods. They said projected opening-day transit operations and maintenance costs have dropped from an earlier estimate of $21.8 million to about $10.3 million annually because the current model assumes lower frequency, with Oregon and Washington shares split by geography and fare recovery. Members raised concerns about TriMet’s financial stability and the need for a funding plan by fall 2027, ahead of a planned federal transit funding application in fall 2028. During public testimony, several speakers criticized the delay in releasing a new cost estimate and argued the project scope should be reduced if costs continue to rise. Testifiers from City Observatory and the Just Crossing Alliance said the project appears to be avoiding bad news, urged the committee to consider scope reductions, and questioned whether the active transportation and freeway components align with the project’s core purpose. The meeting ended with thanks to Johnson for his service and a transition to public hearing testimony.

Transcript Highlights:

• </c> that allows us to maintain and operate that allows us to maintain and operate the<00:35:36.640><
• It’s a fixed cost.
• that's a cost share.
• Why have costs risen?
• That is largely due to us needing to operate, rationalize the cost of supporting our RIMS system.

Summary: The meeting began with testimony from Charlotte Harding of the Conservation Land Stewardship Program, who explained that the office protects the state’s interests in conservation lands by monitoring conservation easements and related stewardship obligations. She described the program’s funding sources: a land conservation endowment held at the State Treasury and administered by the Council on Resources and Development, plus transfers from Fish and Game for easements not covered by the endowment. Members discussed how the endowment is funded when new easements are created, the program’s staffing, the loss of a state vehicle, and the need to increase in-state travel so staff can use personal vehicles for field monitoring. Harding said the office has two full-time positions and a seasonal employee, that the work is mostly monitoring rather than hands-on land management, and that enforcement issues are referred to the grantee agencies or, if needed, to the Council on Resources and Development. She also noted that the office works directly with landowners to resolve smaller issues and that stewardship has become a greater focus in the conservation community because ongoing oversight requires funding. Members asked about examples of properties under the program, including LCIP lands such as Musquash Headwaters, Hidden Valley Boy Scout Camp, and Nash Stream, and the committee did not take a motion before moving on. The committee then heard from Paul Breen and Susie Anzelone of the Pease Development Authority regarding the Division of Ports and Harbors operating budget. They explained that the authority provides finance, legal, environmental, and engineering support to the division, which operates New Hampshire’s only deep-water berth at Market Street, as well as facilities in Hampton, Rye, the Portsmouth Fish Pier, and navigational waters in the Piscataqua and Great Bay. They described the authority’s history after the closure of Pease Air Force Base, the transfer of roughly 2,400 acres, and the creation of a self-sustaining enterprise fund tied to airport and port operations. They emphasized that the division does not draw on the general fund because revenues from wharfage, dockage, parking, registration, and mooring fees cover operating costs, with any surplus retained for capital improvements and replacement. Members questioned several budget lines, including a sharp increase in overtime and workers’ compensation. Breen said overtime is driven largely by security needs at the deep-water port and fluctuates with vessel traffic, such as salt shipments, while workers’ comp is a DAS-set cost and not something the division controls. He said the budget is conservative and that if revenues fall short, capital projects would be the first items scaled back. The discussion also covered fee-setting, with Breen saying rates are reviewed against the local market and infrastructure constraints, and that some smaller facility fees had recently been increased after being stagnant for years.

Transcript Highlights:

• </c> costs would would would would any cost costs would would would would any cost be<00:30:31.960><c
• according to markets, and everything else is still operating under sort of a regulated cost-of-service
• according to markets, and everything else is still operating under sort of a regulated cost-of-service
• according to markets, and everything else is still operating under sort of a regulated cost-of-service
• according to markets, and everything else is still operating under sort of a regulated cost-of-service

Committee: House Science, Technology and Energy

Transcript Highlights:

• And then the second one was cost. You talked about, well, we know the cost.
• The cost, the cost, the cost. All right, just being sure. And then the second one was cost.
• You talked about, well, we know the cost. The cost is $20 billion.
• But at what cost? What cost are we considering?
• It needs to be considered at what cost. At what cost?

Summary: The hearing opened with budget framing from the chair and the LAO, who said the May Revision addresses roughly a $14 billion budget problem and that the environment and transportation subcommittee’s proposals account for about $1.9 billion of the solution. The LAO urged members to focus on solutions that do not worsen out-year deficits, to preserve reserves, and to defer major policy changes that are not necessary to pass the budget, including the newly introduced water-related trailer bills. Members also raised concern about a late-dropped Olympic-related trailer bill, which the LAO likewise suggested should be deferred for fuller review. The first major item was the Delta Conveyance Project and related water quality control plan trailer bills. The administration argued the proposals would streamline permitting, water rights proceedings, judicial review, and land acquisition, and would clarify DWR’s bond authority for the project. DWR said the project is needed to protect water supply reliability against drought, earthquakes, sea level rise, and other climate-related disruptions, and that the tunnel would help move water when conditions are wet and safer for the environment. Committee members from both parties questioned the timing, the use of budget trailer bills for major policy changes, the scope of the CEQA and water-rights changes, the lack of a bond cap, cost growth, and eminent domain protections. The LAO recommended deferring both water trailer bills without prejudice. Public comment was sharply divided, with labor, water agencies, and some business groups supporting the project as climate adaptation and reliability infrastructure, while environmental, tribal, fishing, county, and community groups opposed it as an attempt to bypass public process and weaken protections. The committee then briefly heard the DMV’s Digital Experience Platform fee trailer bill, which would reinstate a $1 system improvement fee to help fund the vehicle-registration phase of the project. DMV said the fee would raise about $7 million annually and offset roughly $59 million to $60 million of project costs, while the LAO noted it would help but would not solve the Motor Vehicle Account’s broader structural gap. The hearing then moved to California High-Speed Rail, where the new CEO presented an updated plan and said the project remains a major climate and infrastructure investment. He reported a revised Merced-to-Bakersfield cost range of $34.9 billion to $38.5 billion, said the agency is trying to reduce risk through direct procurement of materials, and argued that stable annual funding is needed to avoid higher costs from delays.

Transcript Highlights:

• and IT costs.
• If you can't do that, the amount of dollars that cost. costs, and the backlog it creates is huge.
• The 88th legislature. appropriated 8.5 million dollars in GR for operating costs and personnel staffed
• We want to cover the increased cost for capital equipment and increased operating expenses and for For
• With rising facility and personnel costs, the college's ability to subsidize budget shortfalls to operate

Committee: House Appropriations - S/C on Article III