Transcript Highlights:

• On the specific activities that have been shared in the May revision for the utilization management,
• For the CalAIM reforms, I was struggling to understand utilization management of community supports.
• How do you utilize management if it's like a down payment, if it's, you know, stuff like that?
• These resources are requested to transform, manage, and transmit Medi-Cal data to H-QI and to utilize
• The imposition of utilization management for transportation services, which are critically important

Summary: The committee first heard May Revision child care and human services items. The Department of Child Support Services described two technical adjustments, which the analyst supported. The Department of Social Services then walked through child care proposals, including a reduction in federal and Proposition 64 funding absorbed through a shift from General Child Care to the Alternative Payment program, a 2.01% child care COLA, disaster-related infrastructure grants, a new administrative support cost structure for Alternative Payment agencies, the removal of prospective pay funding after a federal rule change, a reappropriation for existing infrastructure grants, and estimates of unspent child care funds. The Legislative Analyst’s Office recommended asking for more justification for shifting reductions to CAP, supported the COLA reduction but wanted consistency across programs, recommended removing prospective pay funding, opposed the administrative cost shift, and suggested further review of disaster grant alignment. Members pressed the administration on why more slots would be cut for the same savings, why the COLA was reduced, and whether the administrative percentage would grow over time. The administration said the changes were intended to avoid disrupting currently enrolled families, reflect point-in-time relinquishments and unspent funds, and stabilize contractor operations. Public commenters, including providers, advocates, and county representatives, urged full COLA funding, rejection of child care slot reductions, preservation of prospective pay, and continued investment in child care infrastructure and access. The subcommittee then recessed before moving to health items. In Part B, the Department of State Hospitals presented its May Revision proposals, including a central utility plant replacement project at Metropolitan State Hospital, funding for a continuum electronic health record system, reduced county bed billing authority to reflect phase-in of additional LPS beds, limited contract exemption authority for online clinical subscription services, reversion of prior-year unspent operating funds, and a workforce development proposal to use Behavioral Health Services Act funds instead of General Fund for training programs. The department said the EHR would modernize records and improve continuity of care, and that the contract exemption would prevent delays in essential clinical information services. No votes were taken in the excerpt provided.

Transcript Highlights:

• Under CETA, consumer-owned utilities consist of municipal electric utilities, public utility districts
• Expanding the definition of consumer-owned utilities to include port districts and all utilities with
• Expanding the definition of consumer-owned utilities to include port districts and all utilities with
• utilities under CETA.
• For utilities like ours, programs that encourage flexible demand are important to manage peak loads and

Bills: SB5982 , SB6008 , SB6050 , SB6056

Committee: Senate Environment, Energy & Technology

Keywords: consumer-owned utilities, clean energy, port districts, market customers, energy transformation, energy storage, residential battery, grid connection, renewable energy, incentives, distributed energy, renewable resources, energy policy, sustainable energy, state regulations, utility vehicles, emission standards, environment, regulation, exemptions

Transcript Highlights:

• Again, we utilize these plans really to help us with the management, both day-to-day and long-term planning
• So we are underfunded to adequately utilize those asset plans.
• And so we do utilize some of our preservation dollars to look at pavements and bridges and utilize a
• And so we utilize them.
• And so we would utilize that to get that work going.

Summary: The Senate Transportation Committee devoted its meeting to a presentation from Troy Suing of the Department of Transportation on state highway preservation needs. Suing said DOT is a leader in asset planning, but that current funding is not enough to keep up with the condition of highways, bridges, and other assets. He distinguished operations and maintenance from preservation, and described the preservation program’s main parts: pavements, bridges, and other highway facilities such as slopes, rest areas, signal systems, retaining walls, and culverts. Suing reported that about 40% of state roads are already overdue for preservation and that, with current funding, as much as 85% could need preservation within 10 years. He said there are more than 7,900 lane miles currently due, and that delaying work past the “lowest life cycle zone” increases risk and can cost three to five times more later. For bridges, he said the state has about 3,400 bridges, an average age of 52 years, and roughly 10% are over 80 years old; the share of bridges in poor condition is about 9.9%, near the federal threshold that could trigger more federal oversight. He also highlighted culvert failures, including one on SR-510, and the closed Carbon River Bridge on SR-165 as examples of how deferred preservation can lead to closures and community disruption. Committee members questioned the comparison to national asset management leadership, liability risk as roads deteriorate, the cost and regulatory burden of bridge projects, and whether DOT is relying more on its own crews for bridge work because of cost and urgency. Suing said the department is underfunded to fully implement its asset plans and is forced to focus on risk, emergent needs, and the most critical bridge work first. He said DOT’s 2026 supplemental budget identified preservation as one of five unfunded critical priorities and estimated a 10-year preservation need of $8 billion to address the backlog and become proactive again. Members discussed whether targeted funding in the next biennium could help move the state back toward the “green zone,” and the chair closed by emphasizing the real-world impacts of bridge and road failures and the need for legislative action.

Transcript Highlights:

• Hearing none, we will now take up the public utility.
• Utility Commission of Texas, also known as PUC.
• And that will be the basis of this case management system. OK.
• It states case management system 3.9 million for the legal, office of policy and docket management, compliance
• Okay, in that process... the acquiring utility, investor-owned utility. has the ability to raise rates

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Transcript Highlights:

• </c> lake modification and forest manage lake modification and forest manage management<00:40:29.119>
• </c> utility, a new and separate utility utility, a new and separate utility right<03:29:37.520><c> now
• </c> to manage surface water. to manage surface water.
• water drainage utility or charge fees for that management.
• water drainage utility or charge fees for that management.

Committee: Joint Select Water Committee

Transcript Highlights:

• There are the four large investor-owned utilities on the left.
• Last year, each utility managed their portfolio to generate more total system benefits than the goals
• That is a portfolio that is being actively managed.
• And then LADWP, a public utility, also is a funder.
• I've been part of utility programs. I work with the WRNs. I've been part of utility programs.

Committee: House Utilities and Energy

Transcript Highlights:

• I can work with our program manager.
• Are the utilities generally being responsive?
• Are the utilities generally being responsive?
• So this funding is primarily being utilized for new infrastructure.
• I'm joined by Jason Hattari, our capital programs manager.

Summary: The House Transportation Committee held a work session focused on Climate Commitment Act transportation spending and electrification programs. Staff first reviewed overall CCA transportation allocations, saying about $2.2 billion has been allocated over three biennia, with major categories including public transportation, active transportation, ferry electrification, zero-emission vehicle programs, rail/ports, and planning. Members asked for additional breakdowns comparing CCA dollars with total program costs across categories. The Department of Ecology presented on the zero-emission school bus grant program. Ecology said the program was codified in 2024 and supports the transition from diesel to electric school buses, including buses, charging infrastructure, and training. For 2025-27, Ecology received $38.3 million in CCA funding; $21.4 million is already obligated or spent, replacing 91 diesel buses in 28 districts, with the rest to be awarded by the end of the biennium. Members asked about cost parity, exemptions for rural and extracurricular routes, health data, and whether the funding covers chargers as well as buses. Ecology said OSPI is developing the parity formula and exemptions are available when electric buses cannot meet district needs. The Department of Commerce described its clean transportation role, including EV rebates, tribal charging and electric boat projects, and the EV Coordinating Council. Commerce said its rebate program was designed to lower monthly costs and prioritize low-income households, with 89% of recipients saying the rebate was essential to their purchase. It also reported strong demand for charging grants, progress on tribal projects, and concerns about utility interconnection timelines, vandalism, and range anxiety. The Department of Enterprise Services reported on state agency EVSE projects, saying it has completed 82 sites with 567 Level 2 ports and 46 DC fast chargers, and that current projects will add 152 more Level 2 ports; members asked about replacing aging chargers and the state’s EV fleet purchasing mix. WSDOT closed with updates on charging, transit, and port electrification. It said its corridor charging program has awarded 23 sites this biennium, with 13 in overburdened communities and five tribal sites, and that the Washington Zero Emission Incentive Program opened with $112 million for vouchers for zero-emission commercial vehicles and equipment. WSDOT also described transit grants, including bus and bus facility funding, commute trip reduction, paratransit, tribal transit, and zero-emissions access car-share projects. The rail freight and ports division reported $89.8 million for port electrification projects, including shore power and drayage trucks, but noted only about 10% has been spent so far because projects are still in design and permitting. Members raised concerns about funding gaps, supply-chain delays, utility capacity, and whether the programs are sufficient to meet broader electrification needs.

Transcript Highlights:

• There are the four large investor-owned utilities on the left.
• Last year, each utility managed its portfolio to generate more total system benefits than the goals set
• That is a portfolio that is being actively managed.
• And then LADWP, a public utility, also is a funder.
• I've been part of utility programs. I work with the WRNs, I've been part of utility programs.

Summary: The Assembly Committee on Utilities and Energy held a hearing on how California Public Utilities Commission energy efficiency programs are budgeted, evaluated, and measured for cost-effectiveness. The chair framed the issue as not whether energy efficiency works, but how to ensure ratepayer-funded programs continue to deliver value as the portfolio has shifted from simple measures like lighting to more complex retrofits, electrification, workforce, and equity programs. CPUC staff outlined the statutory framework, the four-year budget cycle, recent spending of about $795 million in 2025, and the use of total system benefit (TSB) and the total resource cost (TRC) test, noting that some programs are exempt from cost-effectiveness requirements at the individual program level but not at the resource acquisition portfolio level. Utility, regional network, implementer, and advocacy witnesses offered differing views on the current metrics. PG&E described its portfolio as cost-effective overall and argued that cost-effectiveness should remain at the portfolio level to allow innovation and multi-year program flexibility. SoCalREN and the Energy Coalition emphasized the value of local government delivery, equity-focused programs, and the need to credit programs for broader benefits such as workforce development, market transformation, and electrification. The Public Advocates Office argued that ratepayer-funded programs should produce benefits greater than costs and raised concerns about the growing share of budgets going to programs that have not met cost-effectiveness thresholds. Several witnesses said the current math is too complicated and that different program types may need different metrics. Committee members repeatedly pressed witnesses on the complexity of the TRC and TSB calculations, the treatment of participant costs, and whether the state should use a simpler or more transparent framework. CPUC staff said the relevant issues are already being addressed in two open proceedings, with one budget application proceeding expected to conclude in roughly the second or third quarter of next year and a broader policy rulemaking ongoing. No votes were taken and no formal action was reported; the hearing functioned as an informational discussion and policy review.

Transcript Highlights:

• It's managed by the agencies.
• New Mexico utility... Participate in.
• In the middle column, we have investor-owned utilities, like the investor-owned utilities that you have
• That, you know, connect Utility A with Utility B with Utility C. Thank you for that.
• The Construction Projects Manager is a position I added recently, along with the Contracts Manager and

Committee: House Science, Technology & Telecommunications Committee

Transcript Highlights:

• Do the SMRs utilize water in any major capacity?
• As a public utility ratepayer, I'm greatly concerned about the potential authority my public utility
• electric consumers who have no way to manage that risk.
• And to shift that burden from the developers who can manage the risk onto the ratepayers who cannot manage
• This bill puts a burden of utility failure on the taxpayer.

Summary: The committee heard public testimony on Senate Bill 5821, which would direct the Department of Commerce, if funded by gifts or grants, to develop a nuclear power strategic framework and integrate it into the state energy strategy. Supporters, including Sen. Braun, Energy Northwest, public power representatives, and several pro-nuclear advocates, said Washington needs to keep advanced nuclear on the table to address rising electricity demand, reliability concerns, and clean energy goals. Opponents, including the Sierra Club, Columbia Riverkeeper, tribal representatives, and other environmental advocates, argued the bill gives nuclear special treatment, lacks sufficient guardrails on waste, safety, cost, and public process, and was rushed without adequate tribal consultation. Several tribal testifiers said the bill should require early, meaningful government-to-government consultation and stronger protections for treaty rights and cultural resources. The committee then held a work session on a Washington State Institute for Public Policy report reviewing state policies supporting small modular reactors. Staff and researchers explained that the report surveyed 79 policies in 35 states and found most states are still in preliminary planning stages, with policies focused on feasibility studies, siting, workforce development, permitting, financial support, and market integration. Members asked about water use, waste, footprint, and whether the report covered fusion; the researchers said it was limited to fission and that water needs vary by reactor design. Some senators noted the need to consider lifecycle impacts and compare nuclear with other energy technologies. The committee also heard Senate Bill 6010, which would change FSEC tribal consultation procedures by exempting most government-to-government consultations from the Open Public Meetings Act when there is no deliberation or commitments, requiring all FSEC members to participate in consultation, and giving tribes a chance to review and correct the consultation summary before it goes to the governor. Tribal witnesses and environmental groups supported the bill as a way to improve confidentiality and meaningful consultation, while the Association of Washington Business opposed it, saying it could add delays and suggesting timelines. Finally, the committee heard Senate Bill 6004, which would update contracting statutes so public entities can contract for renewable or non-emitting generation capability under CETA definitions; utilities supported the update as a modernization, while consumer and environmental opponents warned it could shift financial risk to ratepayers, especially for nuclear projects. No votes were taken in the transcript.

Transcript Highlights:

• I'm a general manager responsible for our air pollutant, greenhouse... ...manager responsible for our
• Utilities are not liable for damage from the meter-mounted devices. solar generation devices, utilities
• And utilities must post specific device models.
• And finally, for small utilities specifically, section 201 sub 4 requires utility to respond within 90
• We think it has a lot of utility and possibility to help utilities meet CETA goals and both preserve

Bills: HB2272 , HB2285 , HB2296

Committee: House Environment & Energy

Keywords: ski areas, winter sports, terminology update, recreation, regulatory changes, carbon capture, clean energy, environmental regulation, sustainability, green technology, distributed energy, renewable energy, energy resources, energy policy

Transcript Highlights:

• Specifically, it would shift the financial burden of relocating private utilities from the utility themselves
• Utility relocation costs are. Not a small line item.
• Is there a commitment when a Utility for-profit utility says, "All right, we're gonna make an agreement
• The utility would still get to oversee the work and manage the project. to determine what was necessary
• standpoint, which is to manage the right-of-way.

Bills: HB3713 , HB3953 , HB4055 , HB4272

Committee: House S/C on Telecommunications & Broadband

Keywords: telecommunications, local exchange companies, universal service fund, rate maintenance, business expansion, broadband access, internet service, multiunit residential properties, urban areas, affordability programs, fiber-optic cables, public land, construction permits, environmental impact, notification requirements, municipal projects, infrastructure, facility relocation, public right-of-way

Transcript Highlights:

• Many of our local emergency managers are not just the emergency manager; they're the fire chief, they
• Many of our local emergency managers, they're not just the emergency manager.
• We talked quite a little bit about protecting utilities or how the utility can protect itself.
• These are specific utility industry functions.
• Slide five: Energy Conservation and Management Division.

Committee: Senate Senate Finance

Transcript Highlights:

• So 30% versus 570%, or there is a utility-specific inflation index, and utilities have been—the inflation
• Today it's a utility.
• Darrell Clifton, region manager for Utility Lines Construction Services (ULCS): "Good afternoon.
• I am the region manager for Utility Lines Construction Services, ULCS.
• I am the region manager for utility lines construction services, ULCS.

Bills: SB287

Committee: House Natural Resources & Energy

Summary: The House Natural Resources and Energy Committee met and considered three Senate bills. SB 287 with Senate Amendment 2, a DNREC cleanup bill on recycling, would tighten recycling collection rules for haulers and commercial generators, require multifamily recycling education, repurpose the Delaware Recycling Fund, and add annual reporting; after brief questions and no public comment, the committee motion to release did not initially receive enough votes, so the bill was circulated for signatures. SB 346, which would speed Environmental Appeals Board hearing and decision timelines so DNREC secretary decisions become final if deadlines are missed, drew support from the Nature Conservancy and also failed to get enough votes at the meeting, so it too was circulated for signatures. The committee then took up SB 326, a major utility-regulation bill sponsored by Senator Hanson and Representative Heffernan that would cap certain non-mandatory utility spending, limit interim rates, increase oversight and transparency, and streamline rate-setting. SB 326 generated extensive testimony and debate. Supporters, including the Public Advocate, Sierra Club, PSC staff, and some legislators, argued that Delmarva Power’s spending on non-mandatory infrastructure has risen far faster than inflation, that the company is a regulated monopoly, and that the bill would help restrain future delivery-rate increases without harming reliability because mandatory reliability, storm response, and vegetation management spending would remain allowed. Opponents, including Delmarva Power, business groups, contractors, labor representatives, and the Delaware Contractors Association, argued the cap would delay needed reliability and capacity projects, hurt economic development, reduce jobs, and interfere with utility planning; they also said supply costs, not distribution spending, are the main driver of recent bill increases. After public comment and additional questioning, the committee voted to release SB 326 on a split roll call, but because several members were absent the bill was also walked for additional signatures. The committee then adjourned.

Transcript Highlights:

• Land management: we manage 226,000 acres. We've got 451 miles of roads and 152 miles of trails.
• Johns region to look at utilizing highly treated reclaimed water and utilizing it for recharge.
• But our environmental resource permitting group, our land management—we have 10 land managers for over
• water management machines, right?
• And so there's a lot of land management activities. And that requires land management.

Committee: Senate Appropriations Committee on Agriculture, Environment, and General Government

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard budget presentations from all five water management districts for FY 2026-2027: Northwest Florida, Suwannee River, St. Johns River, Southwest Florida, and South Florida. Each district described its preliminary budget, major funding sources, staffing levels, and how most of its spending is tied to the four core missions of water supply, water quality, natural systems, and flood protection. Several directors noted budget reductions from the prior year largely because major projects were completed or because grant/appropriation funding is not yet fully reflected in preliminary budgets. Committee members repeatedly asked how districts project operations and maintenance costs, how projects are selected, and what share of staff and spending is devoted to core missions versus administration or regulatory work. Northwest Florida Water Management District said its preliminary budget is $93.4 million, down about 15%, with 97% of spending tied to core responsibilities and a request for additional regulatory services funding. Suwannee River Water Management District presented a $70.4 million budget, emphasized its rural/agricultural character and spring protection work, and highlighted the Water First North Florida reclaimed-water recharge project; members also discussed its need for an additional FTE to handle consumptive use permit reviews tied to a new lower Santa Fe rule. St. Johns River Water Management District presented a $181 million budget, highlighted major water supply, water quality, flood protection, and land management projects such as Taylor Creek Reservoir, Water First North Florida, Black Creek, Crane Creek, and Lake Jessup restoration, and said about 93% of its budget supports core missions. Southwest Florida Water Management District presented a $227.6 million budget, with major spending on alternative water supply, water control structure repairs, watershed projects, and land management; officials said 93.4% of the budget supports core missions and discussed rising construction costs for aging infrastructure. South Florida Water Management District presented the largest budget at $1.05 billion, focused on Everglades restoration, flood control, water supply, and ecosystem recovery; the director described major reservoirs and treatment projects, the EAA Reservoir, and ongoing efforts to improve water quality and restore flows to the Everglades and Florida Bay. The committee took no formal votes on the district budgets and adjourned after the presentations and questions.

Transcript Highlights:

• We're also supportive of innovative technologies and strategies that can help manage demand, help utilities
• We're also supportive of innovative technologies and strategies that can help manage demand, help utilities
• We're also supportive of innovative technologies and strategies that can help manage demand, help utilities
• We're also supportive of innovative technologies and strategies that can help manage demand, help utilities
• We're also supportive of innovative technologies and strategies that can help manage demand, help utilities

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• Land management: We manage 226,000 acres. We've got 451 miles of roads and 152 miles of trails.
• Johns region to look at utilizing highly treated reclaimed water and utilizing it for recharge.
• But our environmental resource permitting group, our land management—we have 10 land managers for over
• Of that, 435,000 acres are actively managed through prescribed fire, invasive vegetation management,
• And so there's a lot of land management activities. And that requires land management.

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard budget presentations from the Northwest Florida, Suwannee River, St. Johns River, Southwest Florida, and South Florida water management districts for FY 2026-2027. Each district described its preliminary budget, major funding sources, staffing levels, and priorities within the four core missions of water supply, water quality, natural systems, and flood protection. Common themes included reduced budgets from the prior year due to completion of major projects, continued reliance on state appropriations and ad valorem revenue, rising construction and maintenance costs, and the need to maintain aging infrastructure while advancing alternative water supply, springs restoration, flood control, and land management projects. Committee members repeatedly asked how much of each district’s budget and personnel were devoted to the core missions, how maintenance and operating projections were developed, and how projects were selected. The districts generally said most spending was tied to core responsibilities, with administrative overhead relatively small, and explained that budgets are built through a mix of staff analysis, governing board direction, strategic basin planning, and cooperative funding with local, state, and federal partners. Several districts highlighted specific projects, including Water First North Florida, Black Creek, Taylor Creek Reservoir improvements, Crane Creek, Everglades restoration, and various springs and watershed projects. The districts also noted challenges from hurricanes, inflation, cybersecurity, and aging water control structures. South Florida Water Management District’s presentation focused on Everglades restoration and the large-scale infrastructure needed to move, store, and clean water in South Florida. The director said the district’s $1.05 billion preliminary budget is largely for flood control, water supply, ecosystem restoration, and maintenance of extensive canals, levees, pumps, and reservoirs, and emphasized that recent restoration investments are producing measurable water quality and salinity improvements. No votes were taken on the district budgets, and the committee adjourned after the presentations and questions.

Transcript Highlights:

• So we have a paradigm where we're chasing not just utility risk, but also forest management in a way
• The second, by the way, was whether, if a utility was at fault, whether the utility paid.
• You have to have the fuel management done in an area.
• of its vegetation management program.
• of its vegetation management program.

Summary: The joint Senate hearing focused on California wildfire resilience funding, the SB 254 report on natural catastrophe resilience, and how the state should better prioritize community hardening, recovery, and financing. Senators emphasized that catastrophic wildfires have driven major property losses, insurance cancellations, and affordability problems, and several members argued that prevention and home/community hardening should receive far more attention than they have to date. Members also raised concerns about CEQA and other permitting delays, the need for ongoing rather than one-time funding, and whether the state should rely more on the General Fund, utilities, or other sources such as polluter-pays approaches. The Legislative Analyst’s Office said the state has appropriated about $4.7 billion for wildfire resilience since 2018-19, with most funding going to forest health, fuels reduction, and related landscape work, while only about $65 million has been specifically targeted to community hardening. LAO also noted that future one-time funding is likely to decline, that GGRF revenues may be limited under the new cap-and-invest structure, and that maintenance costs for treated areas could be substantial over time. Senators pressed LAO on why wildfire resilience is not more often funded through the General Fund and on whether current spending matches the scale of the risk. Cal Fire’s State Fire Marshal described the state’s community wildfire preparedness strategy, centered on home hardening, defensible space, and neighborhood-scale mitigation, and said the SB 254 report aligns with Cal Fire’s direction. He said California has roughly 4 million homes in the wildland-urban interface, most built before modern wildfire-resistant standards, and highlighted recent streamlining that approved 383 fuels-reduction projects in under 30 days during an emergency proclamation. Cal OES described the AB 38 pilot and FEMA hazard mitigation work, saying federal approval delays have been a major barrier and that the state has hardened 155 properties so far through the pilot, with many more in process. The Wildfire and Forest Resilience Task Force said the state has coordinated more than $6 billion in state and federal investments, treated over 700,000 acres annually, and is shifting toward more regional, data-driven planning and block grants. Task force staff and Cal Fire both said they are moving beyond simple acreage metrics toward models that estimate avoided loss and community risk reduction, but acknowledged major data gaps on parcel-level home hardening and defensible space. No formal votes were taken; the hearing was informational, with members discussing possible future legislation and budget changes, including home inspection reforms and continued CEQA streamlining.

Transcript Highlights:

• Reducing school utility costs.
• management.
• Real-time information allows them to manage the utilities down to the minute.
• their own utilities.
• their utilities over time, to reduce costs and know their utilities.

Transcript Highlights:

• </c> Slide the Medicaid members utilizing Slide the Medicaid members utilizing Behavioral<00:07:40.680
• </c> 421,000 individuals in 2023 utilizing 421,000 individuals in 2023 utilizing Behavioral<00:07:54.520
• </c> is an evaluation and management is an evaluation and management code<00:09:38.079><c> and</c><00
• </c><00:10:28.600><c> care</c> largest membership of the manage care largest membership of the manage
• </c> Arrangement it is not with the Managed Arrangement it is not with the Managed Care<00:25:50.760>

Summary: The Budget Review Subcommittee on Health and Family Services held its first meeting and received an overview from the Department for Medicaid Services on Medicaid’s behavioral health and substance use disorder services. Commissioner Lisa Lee and CFO Steve Beal said Kentucky Medicaid serves about 1.4 million members, including over half of Kentucky children, with 485,000 expansion members, more than 69,000 enrolled providers, and total fiscal year 2024 expenditures of $18.5 billion. They said Kentucky covers a broad range of behavioral health services, and behavioral health provider enrollment has grown from a little over 4,500 in 2019 to nearly 8,000 in 2024. They also described how Medicaid spending and utilization are tracked through claims and encounter data, with most members served through managed care organizations. Members focused on sharp increases in certain behavioral health billing codes, especially peer-to-peer services, and asked about reimbursement, utilization review, and whether the growth reflected increased need or expanded coverage. DMS said the rise was partly tied to combining facility and nonfacility behavioral health fee schedules in 2023, choosing the higher reimbursement rate to avoid cuts, and that the department has seen an uptick in peer-to-peer services. In response to concerns about overutilization, DMS said it mailed a letter to behavioral health providers, is considering limits and prior authorizations for some services, and plans to create a standardized monthly behavioral health report to monitor trends consistently and identify when controls may be needed. Lawmakers also asked whether the provider network is sufficient and whether access is adequate, especially for children. DMS said provider enrollment has expanded because behavioral health services were added to Medicaid in 2014 and because demand increased after COVID, but acknowledged studies showing children have less access than adults and said that would be an area of focus. The department said managed care organizations are required to ensure access to needed services and that current trends indicate access is available, though one member disagreed and said workforce shortages remain a major concern. Another member asked about non-emergency medical transportation spending, and DMS explained that it is handled through a capitated arrangement administered by the Transportation Cabinet rather than directly by the managed care organizations.