Transcript Highlights:

• That being said, over a five-year period, when inflation rose 23%, our employee comp increased 2%.
• :25:29.360> 5-year<00:25:29.919> period<00:25:30.919> when<00:25:31.720> inflation
• <00:25:32.200> Rose over a 5-year period when inflation Rose over a 5-year period when inflation
• <01:27:08.119> the<01:27:08.320> backdrop<01:27:08.800> of<01:27:08.960> inflation
• ...against the backdrop of inflation.

Keywords: 928, house, all

Summary: The committee received an orientation from University System of New Hampshire Chancellor Katherine Preventure and Senior Director of Government Relations Lauren Banker on the system’s enrollment, finances, workforce role, and academic programs. They described the system as consisting of UNH, Keene State, and Plymouth State, with about 23,000 students, $928 million in FY24 operating expenses, a $3.7 billion economic impact, and UNH’s R1 research status. They emphasized the system’s role in graduating students into the New Hampshire workforce, its statewide Cooperative Extension and regional campus presence, and its alignment of degree offerings with top occupations identified by New Hampshire Employment Security. The presentation also highlighted partnerships with businesses, internships, and collaboration with the community college system, including 100 transfer pathways and a direct-admit program. A substantial portion of the discussion focused on tuition, state support, and student costs. The chancellor said the state invested $95 million in FY25, with about $81 million used to reduce resident tuition and about $14 million for statutory programs such as Cooperative Extension and the Agricultural Experiment Station. She said the state subsidy is about $7,300 per New Hampshire student, and that resident net tuition averages about $7,000, while nonresident net tuition averages about $16,600. She provided published tuition figures for UNH, Plymouth State, and Keene State, and explained that resident tuition has been held flat for five years while financial aid has increased, reducing average net tuition and fees for New Hampshire students from about $10,500 in 2020 to $9,800. Members asked for clarification on how residency and workforce-retention percentages were calculated, and the chancellor said she would follow up. Members also asked about comparisons with peer institutions, housing and meal costs, research funding, and the reasons for declining enrollment and staffing reductions. The chancellor said peer comparisons were based on flagship universities for UNH and smaller regional publics for Plymouth and Keene, and noted that out-of-state tuition has risen about 2.5% annually. She said housing for a UNH double room is $8,536 and a meal plan is $5,100, and offered to provide a consolidated cost document. On research, she said the system’s direct research spending includes federal funding and that indirect costs were about $34 million last year, with a follow-up promised on the federal/state and direct/indirect split. She attributed enrollment declines largely to demographics and said the system is responding by reducing costs, selling buildings, exiting leases, moving the system office to NHTI, and implementing Workday. She also noted that Plymouth received approval for five three-year bachelor’s degree programs and that members praised the shorter, workforce-focused pathways, especially for manufacturing and other in-demand fields.

Transcript Highlights:

• We believe that belts during inflation.
• So, this would just pause it for the time being. brackets to inflation, there is um brackets to inflation
• <01:03:17.840> increases opted instead of the inflation increases opted instead of the inflation
• , to that year, adjusting for inflation, to that year, adjusting for inflation, that's<01:17:22.320
• Is that inflation?

Bills: HB2459, HB1616, HB1799, HB1604, HB1732, HB1736, HB1931, HB772, HB2153, HB2122, HB2009, HB2012, HB1779, HB2296, HB2397, HB2398, HB1596, HB2233, HB1976, HB1563, HB815, HB1655, HB1851, HB1941, HB2037, HB1635, HB2201, HB1943, HB1163, HB2452, HB2429, HB2148, HB2306, HB2007, HB2049, HB2616

Keywords: food innovation, agribusiness, food safety, market access, branding, economic diversification, performance indicators, agriculture, aquaculture, commercial activity, swine production, Korean natural farming, housing development, commercial projects, county authority, public works, construction standards, exemption, zoning, housing

Transcript Highlights:

• Um, I will say that those agreements with Indiana, I know in 2020 when the inflation rate was so high
• Um, I will say that those agreements with Indiana, I know in 2020 when the inflation rate was so high
• Thank you, Chairman. >> Those agreements with Indiana, I know in 2020 when the inflation rate was so
• Thank you, Chairman. 2020 when the inflation rate was so high 2020 when the inflation rate was so high

Keywords: 958, all

Summary: The committee first approved the minutes from its June 3 meeting and received an opening update on transportation revenues. Leadership noted that the gas tax formula dropped 4.1 cents on July 1, reducing road fund revenue by about $125 million, and warned that city, county, rural, and secondary road funding will be affected. The chair said the committee would likely have to be selective about transportation project requests given the reduced revenue outlook. The main presentation was an update on the I-69 bridge project. Kentucky Transportation Cabinet officials said the project is the missing link in the Henderson-Evansville corridor and is being delivered in three sections, with Kentucky leading section two. They said section two is a $933 million project, with Kentucky’s share described as $58 million and the balance Indiana’s, and that toll revenue will be used to finance the project through a TIFIA loan and Garvey bonds. Officials said Kentucky and Indiana have executed an agreement under House Bill 546 to use tolls, are working on a broader bi-state development agreement, and will ask the General Assembly next session to carry forward $150 million in general funds without conditions and to ratify the agreement. Members asked about the timeline, toll sharing, whether tolls would sunset, and whether US 41 bridges would remain open for local traffic; officials said construction is planned for 2027, tolling would begin in 2031, toll revenue would be shared 50/50, and at least one US 41 bridge would remain open for local use. The committee then heard a combined update from the Department of Vehicle Regulation and the Division of Motor Vehicle Licensing on implementation of several recent changes. Officials reported that the new registration category for special-purpose vehicles is fully operational statewide, with all counties enrolled and 292 vehicles processed so far; they also said counties received at least five plates each and that the program is permissive, not mandatory. They described implementation of Senate Bill 43’s medical review board reforms and third-party driver’s license issuance framework, saying the medical review process has been updated and that third-party partners may eventually handle easier transactions such as renewals, name changes, and address changes, while initial issuances would remain at KYTC regional offices. They also reported that the sheriff’s inspection process has been integrated into CAVIS, reducing paperwork and fraud and improving tracking. Members asked about communication to counties and cities with differing local rules, the number of counties participating, and how to coordinate multiple policy changes; officials said all counties are enrolled, though not all have submitted applications, and that they are still finalizing the scope of third-party services.

Transcript Highlights:

• And one of the two areas I'm really proud of protecting were linking the general formula to inflation
• And one of the two areas I'm really proud of protecting were linking the general formula to inflation
• the general protecting were linking the general formula<00:04:07.439> to<00:04:07.599> inflation
• <00:04:08.400> and<00:04:08.720> universal formula to inflation and universal formula
• to inflation and universal meals.<00:04:10.560> um<00:04:11.280> uh<00:04:11.519> funding

Bills: HF1049

Keywords: school library aid, education finance, school districts, charter schools, funding eligibility, 1183, house

Transcript Highlights:

• Obviously, in the intervening time, there have been changes in cost factors, inflation of course being
• Obviously, in the intervening time, there have been changes in cost factors, inflation of course being
• We had a single year of almost 9 percent... ...inflation, of course, being a big one.
• Programs without reauthorization are more vulnerable to flat funding that does not keep pace with inflation
• Programs without reauthorization are more vulnerable to flat funding that does not keep pace with inflation

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on developmental services, rehabilitation, and related supports, with no votes taken. The first major topic was the Master Plan for Developmental Services. Administration officials described a year-long, community-driven process that included a steering committee, work groups, and statewide engagement sessions, and said the final draft would be released that Friday with about 170 recommendations. The Department of Developmental Services said the plan would inform future work, but did not offer a detailed implementation roadmap. The LAO said the plan contains significant policy and budget implications, may require statutory changes, and needs further analysis to turn recommendations into actionable proposals. Advocates and regional center representatives urged the Legislature and administration to avoid letting the plan sit on a shelf, called for prioritization and ongoing stakeholder oversight, and emphasized the need to address equity, workforce, service coordination, and cross-system collaboration. The chair said he wanted to work with the LAO on trailer bill language and future reporting to create a clearer path forward. The second topic was the Office of Employment First and competitive integrated employment. Administration witnesses said California has ended subminimum wage under SB 639, but that moving people into competitive integrated employment remains a major priority. They described existing efforts such as DDS’s coordinated career pathways pilot, paid internships, job development services, benefits counseling, and DOR’s career counseling and referral services, along with pilot projects in San Diego and Orange County. The State Council on Developmental Disabilities and advocates argued that employment outcomes have remained stuck at roughly 15% and that a dedicated Employment First Office is needed to coordinate across agencies, align goals, and improve outcomes. The LAO recommended regular legislative oversight on people transitioning out of subminimum wage and asked for technical assistance on coordinated career pathways. The chair criticized the administration’s decision to effectively eliminate funding for the office, requested a detailed implementation timeline and quarterly transition reports, and said the committee would continue pressing for the office to be implemented. The final issue was respite services, utilization trends, and access. DDS reported that in-home respite use and spending have risen sharply over several years, with about 150,000 people using respite in 2023-24 and expenditures reaching about $1 billion. Officials said access depends on families knowing the service exists, service coordinators identifying need, and having enough providers, especially in rural and linguistically diverse communities. The San Diego Regional Center said utilization generally mirrors statewide trends, but access is stronger in some areas, such as Imperial County, where families often prefer family-directed or agency-supported models that allow them to hire trusted workers. Committee members emphasized the importance of respite for family health and caregiver well-being, asked whether service coordinators are asking practical questions about sleep and stress, and discussed the need for better identification of complex behavioral and medical needs. DDS said a standardized family support tool and updated IPP process are intended to improve consistency, transparency, and person-centered assessment for respite and related services.

Transcript Highlights:

• The pharmaceutical industry raises drug prices at rates that outpace inflation, all while cutting back
• The pharmaceutical industry raises drug prices at rates that outpace inflation, all while cutting back
• :26:37.720> rates<00:26:38.360> that<00:26:38.520> outpace<00:26:39.120> inflation
• prices at rates that outpace inflation prices at rates that outpace inflation all<00:26:40.399><

Keywords: 00:00 Introductions 02:46 Roll Call 03:35 Discussion on SB 14 46:13 Vote on SB 14 48:07 Discussion on SB 17 50:38 Vote on SB 17, 958, all

Summary: The Senate Standing Committee on Health Services opened with the chair welcoming several new members and outlining session rules: hearings would start and end on time, the committee would limit the number of bills heard each meeting, prioritize bills heard during the interim, and generally avoid using the consent calendar except in extreme circumstances. The committee then briefly considered administrative regulations, which were treated as approved if members had no questions. The main item was Senate Bill 14, a measure addressing the 340B drug discount program. The chair said the bill had already passed the Senate in a prior session and had been heard in interim, so he did not present it again. He described the bill as prohibiting drug manufacturers from discriminating against 340B covered entities by refusing 340B pricing when the same drug is offered at that price in the state. He also said the committee would not debate the federal 340B program itself, but would hear testimony on the bill. Hospital leaders and Kentucky Hospital Association representatives testified in support, arguing that 340B savings are essential to rural hospitals, oncology services, transportation support, chronic care, addiction recovery, and new service lines such as chemotherapy and hepatitis treatment. They said the program helps keep care close to home and that manufacturer restrictions on contract pharmacies have reduced access and cost hospitals millions. Opponents from BIO Kentucky and the National Alliance of Healthcare Purchaser Coalitions argued the bill would expand federal law beyond Congress’s intent, create administrative burdens, and not lower patient out-of-pocket costs. The chair repeatedly pressed opponents to address why Kentucky should be denied the same 340B pricing available in other states. No vote on the bill was taken in the portion provided.

Transcript Highlights:

• health care costs are increasing pretty astronomically, certainly faster than the pace of general inflation
• It has made a difference, but I think with inflation and all the other demands, raising it to $80,000
• And that also includes a $50,000 increase for operational increases due to inflation. ...and staffing
• This minuscule increase is not adequate, given the inflation we're experiencing in our other expenses
• Why it's so critical that their hourly rate goes up because of the cost of doing business, inflation,

Keywords: 995, all

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• share of costs in IHSS has been set by a maintenance of effort that primarily grows annually by an inflation
• The second to last bullet on page 26 talks about an inflation adjustment.
• It's been at $250,000 for a couple of decades, and as I mentioned in the opening, an inflation adjustment
• We think it's an appropriate inflation adjustment, and it goes up $50,000 every five years as an inflation
• Okay, so this 3.2 with inflation will always be a request to continue to pay these consulting services

Keywords: 987, senate, all

Summary: The subcommittee heard an overview of the governor’s IHSS budget proposals and then took public testimony from the administration, LAO, county representatives, labor, consumer advocates, and an aging/disability advocacy group. The administration described IHSS as a large Medi-Cal long-term services program serving more than 900,000 recipients and proposed three changes: shifting some growth costs tied to authorized hours per case to counties, eliminating the statewide backup provider system, and aligning IHSS terminations with Medi-Cal terminations. The administration also discussed the earlier CFCO reassessment penalty change for counties and said overdue reassessments had dropped significantly. LAO said the governor’s overall IHSS cost estimates appeared reasonable, but raised concerns about the hours-per-case cost shift, including unclear root causes for growth, limited county control over statewide averages, and uncertainty about the eventual savings. County Welfare Directors Association, SEIU, and consumer/advocacy witnesses opposed the hours cost shift, arguing counties use state tools, the proposal would pressure counties to cut services, and it could harm older adults and people with disabilities by increasing institutionalization and shifting costs elsewhere. The chair and members repeatedly questioned the rationale for the proposal, the lack of a defined baseline, and whether the current assessment tools or MOE structure should instead be revisited. On the backup provider system, the administration said the program is underused and costly to administer relative to service spending, while LAO suggested the Legislature consider whether administrative costs could be reduced instead of eliminating it. County, labor, and consumer witnesses opposed the cut, saying the system is a critical emergency safety net even if utilization is low, especially for rural areas and people with complex needs. Members also asked about data quality, county backup systems, and whether consumers know the program exists. On the Medi-Cal/IHSS alignment proposal, the administration said automation would stop General Fund-only spending when recipients lose Medi-Cal and restore IHSS automatically when Medi-Cal is regained; LAO and others noted the proposal had been rejected before and urged better notices and safeguards. Witnesses warned that automatic termination could create gaps in care and unpaid work for providers, while the department said counties already manually terminate in some cases and that automation is ready if approved. No votes were taken in the excerpt, and the chair indicated the committee would continue with public comment and later items before a hard adjournment time.

Transcript Highlights:

• We don't want to expend every dollar at the front end and then not have an inflation adjuster for rent
• So between rent inflation, variable family size, and unpredictable sales tax revenue, and no reason to
• We don't want to expend every dollar at the front end and then not have an inflation adjuster for rent
• We don't want to expend every dollar at the front end and then not have an inflation adjuster for rent
• So between rent inflation, variable family size, and unpredictable sales tax revenue, and no reason to

Bills: SF2434

Keywords: housing, development fund, affordable housing, Minnesota Housing Finance Agency, expenditure provisions

Transcript Highlights:

• <00:25:14.640> the<00:25:14.799> ground<00:25:14.960> with<00:25:15.200> inflation
• , happening on the ground with inflation, happening on the ground with inflation, what's<00:25:16.320
• Like I said, this isn't a matter of inflation increasing the cost of the project if we don't do something
• > increasing<00:37:31.040> the<00:37:31.119> cost<00:37:31.359> of know inflation
• increasing the cost of know inflation increasing the cost of the<00:37:31.680> project<00:37:

Keywords: 916, all

Transcript Highlights:

• And then the second part is you haven't mentioned inflation at all. in this conversation, and so I'm
• Tremendous inflation, right? Their teachers are not swimming. in cash.
• abatements, we've had enough revenue. to continue to fund operations, even in the face of... of inflation
• Representative Bernal talked earlier about inflation and the impact it's had on local governments.
• The change in inflation that's been experienced in the construction industry has been very significant

Bills: HB19, HB30, HB851, HB1663, HB1681, HB1769, HB1937, HB1979, HB2428, HB2433, HB2825, HB3159, HB3424, HB3486, HB3487, HB3504, HB3605, HB3879, HB3994, HB4382, HB4752, HB5444, HB5446, HB5447, HB3199, HB4847, HB19

Keywords: local government debt, property tax, ad valorem tax, bond election, certificate of obligation, anticipation note, school district tax rate, voter-approval rate, debt service cap, municipal finance, county bonds, flood control district, hospital district, public works, tax transparency, property tax notice, November uniform election date, general obligation bonds, local debt reform, taxpayer notice

Transcript Highlights:

• <00:10:47.040> um<00:10:47.200> as<00:10:47.399> these that outpace inflation
• um as these that outpace inflation um as these weather<00:10:47.880> events<00:10:48.279>
• He said the pressures of the insurance market, inflation, and other issues come down to volunteer board
• <00:35:14.160> all<00:35:14.320> of Market being broken um inflation all of Market
• being broken um inflation all of these<00:35:14.720> issues<00:35:15.359> uh<00:35:15.480

Bills: HF2228, HF46, HF856, HF2149, HF2215

Keywords: homeowners insurance, property insurance, commercial property insurance, insurance affordability, insurance market stabilization, reinsurance, catastrophic reinsurance fund, self-insured pool, premium costs, coverage notice, liability reform, climate risk, climate change, housing affordability, multifamily housing, rental housing, common interest communities, cooperatives, small business insurance, Minnesota Commerce Department

Transcript Highlights:

• So, this doesn't prevent them from raising over the cost of inflation.
• Uh, section three has an automatic inflation adjustment, uh, again with the idea that ideally these programs
• seeking to implement SUD rates from the outpatient study at 100% of model rates with annual automatic inflation
• :50.000> increases<01:14:50.800> and<01:14:51.120> general<01:14:51.960> inflation
• of wage increases and general inflation. of wage increases and general inflation.

Bills: HF2216, HF1978, HF2354, HF1963, HF1994, HF1995, HF1894

Keywords: assisted living, nursing home, long-term care, guardian, conservator, resident rights, arbitration, mandatory arbitration, consumer protection, fee increase, rate increase, price hike, private pay, public funds, Medicaid, waiver services, elderly, seniors, older adults, disability rights

Transcript Highlights:

• First, it includes an adjustment for inflation in the exclusion base, so, you know, we just heard that
• And so if we pass the bill, you know, without that inflation adjustment, the value starts eroding the
• <01:25:18.360> in<01:25:18.880> the adjustment for inflation in the adjustment for
• inflation in the exclusion<01:25:19.840> base<01:25:20.239> so<01:25:20.600> you
• adjustment uh it without that inflation adjustment uh it the<01:25:31.560> value<01:25:31.920

Bills: HF169, HF195, HF194, HF1756, HF2133

Keywords: HF169, Minnesota insurance, health plan, summary of benefits and coverage, SBC, patient assistance program, deductible, health insurer, consumer disclosure, out-of-pocket costs, medical assistance funds, copay assistance, health coverage transparency, chapter 62Q, enrollee, HF195, Fairmont, street reconstruction, bonding bill, capital investment

Transcript Highlights:

• It's normally just two, and those years had some incredibly high inflation, so the numbers, if you compare
• It's normally just two, and those years had some incredibly high inflation, so the numbers, if you compare
• It's normally just two, and those years had some incredibly high inflation, so the numbers, if you compare
• It's normally just two, and those years had some incredibly high inflation, so the numbers, if you compare
• inflation inflation annually<01:21:49.639> um<01:21:50.320> this<01:21:50.840> uh

Keywords: 1187, senate, all

Transcript Highlights:

• It's then adjusted by inflation.
• So, in in statute it's 0.06 inflation.
• It's it's, um, then adjusted by<02:18:36.040> inflation.
• So, this current year by inflation.
• , and inflation has been kind of high lately.

Keywords: 927, senate, all

Transcript Highlights:

• So, it's not inflation adjusted.
• Is it inflation<00:52:42.079> adjusted?
• What happens if uh inflation adjusted?
• So, it's not inflation adjusted. I >> Yeah. So, it's not inflation adjusted.
• > more<01:09:12.880> demand inflating because there's more demand inflating because there's

Keywords: 1189, house, all

Summary: The meeting began with roll call and introductions of commission members and guests, followed by approval of the agenda and a motion to approve the February 10 minutes with a correction clarifying that one quoted statement was misattributed. The commission then moved into presentations. The main presentation came from the Conference of State Bank Supervisors on implementation of the federal GENIUS Act for stablecoins. The speaker reviewed the OCC’s recent 367-page proposed rule, noting it raises many open questions and design choices for states, and discussed expected upcoming rulemaking from the FDIC, Federal Reserve, and Treasury. The presentation focused on six areas: permissible issuer activities, reserve assets and redemption, risk management and supervision, treatment of state-qualified issuers, capital/operational backstops, and foreign issuers. It also flagged unresolved issues around Bank Secrecy Act/AML requirements and the meaning of “digital asset service provider” activities. A substantial portion of the discussion addressed yield restrictions, with the presenter explaining the OCC’s broad definition of yield and its rebuttable presumption against issuer-affiliated or related third-party yield arrangements. The speaker said this likely forecloses many existing white-label structures but leaves some room for third-party payments depending on distance from the issuer, and noted ongoing Senate debate over similar provisions. The presentation also covered reserve valuation, liquidity and diversification requirements, redemption timing, and supervisory expectations such as third-party oversight, IT security, exam cycles, and reporting. No additional votes or formal actions were taken beyond approving the amended minutes.

Transcript Highlights:

• for a number of reasons, but probably the most important was the reduced purchasing power due to inflation
• The cumulative rate of inflation between 2016 and 2022 was approximately 27.9%.
• costs $67,000. of reasons, but probably the most important was the reduced purchasing power due to inflation
• The cumulative rate of inflation between 2016 and 2022 was approximately 27.9%.

Keywords: 995, all

Summary: The Joint Committee on State Administration and Regulatory Oversight heard testimony on several procurement-related bills. Senator Lovely and steel industry witnesses supported S. 2167/H. 3411, which would require preference for U.S. manufacturers on public construction projects using steel and other materials. They argued that Canadian and other foreign fabricators underbid Massachusetts firms because of exchange rates, subsidies, and different labor-cost structures, causing local job losses and economic leakage. Committee members asked about tariffs, market share, and whether the bill should be folded into broader municipal legislation; the witnesses said public work should stay in Massachusetts and that the bill would help preserve local industry and jobs. The committee also heard strong support for S. 2107, a bill to increase employment opportunities for people with disabilities in state and municipal contracting. Work Inc. testified that a preference for contractors employing people with disabilities would expand competitive employment, reduce reliance on public assistance, and generate net savings for taxpayers. Members asked about the estimated savings and whether recent federal changes to benefits would affect the numbers; the witness said the figures may need updating but that the underlying employment opportunity remains important. Another bill, H. 3339/S. 2187, would prohibit state and municipal contracts for new artificial turf fields containing zinc, plastic, or intentionally added PFAS. Sponsors and supporters cited health risks, heat retention, injuries, and PFAS contamination, while committee members discussed local bans, disposal problems, and whether indoor facilities or alternative materials could be used. Inspector General Jeffrey Shapiro testified in favor of H. 12 and H. 13, which would update Chapter 30B procurement thresholds and allow municipalities to bundle snow hauling and removal with plowing contracts. He said the changes would give local governments more flexibility, reduce confusion between school and municipal procurement rules, and make snow contracts more attractive to vendors. Members questioned whether quasi-public agencies and state entities should also be subject to 30B, and Shapiro said many public entities have their own procedures but that transparency and fairness should apply across the board. The committee also heard support for S. 2150, a software licensing bill aimed at preventing vendor lock-in by ensuring state agencies can run purchased software in the infrastructure that best fits their needs; the witness said restrictive licensing can drive up costs and create cybersecurity and modernization problems, and that similar laws have already passed in several other states.

Transcript Highlights:

• What's that attributed to: construction cost, inflation? Can you elaborate?
• It is construction cost and inflation, as well as the original estimate was based upon conceptual design
• What's that attributed to that construction cost, inflation? Can you elaborate?
• It is construction cost and inflation, as well as the original estimate was based upon conceptual design

Keywords: 988, house, all

Summary: The subcommittee held a May Revision budget hearing on state administration and related issues, hearing presentations from multiple departments and agencies. Early items included the Public Employment Relations Board on funding for implementation of AB 1 and a reduced request tied to AB 288, the Governor’s Office of Service and Community Engagement on a technical College Corps adjustment, and the Secretary of State on building security upgrades, election security grant matching funds, and payroll system readiness costs. The Department of Consumer Affairs presented a Board of Pharmacy modernization request and a General Fund backfill for the Bureau for Private Postsecondary Education; the LAO raised no concerns on the pharmacy item but recommended rejecting the private postsecondary backfill and questioned interest-free loan language. The Employment Development Department outlined several large workload and benefit adjustments, including EDD Next document management funding, UI loan interest, DI/PFL benefit increases, WIOA adjustments, school employee benefits, an EMT training reappropriation, and a technical reversion correction; the LAO flagged the size of the DI/PFL increase and the expansion of the document management scope, while members asked about program impacts and timelines. The California Workforce Development Board presented an April adjustment to reimbursement authority for an interagency agreement with Caltrans, which the LAO said raised no concerns. Public comment on that item and others included support for workforce and apprenticeship initiatives, including the Jails to Jobs proposal and renewal of the Apprenticeship Innovation Fund, though those were not part of the May Revision package. The Department of Industrial Relations then presented several proposals: reclassifying legal positions, continuing modernization of the workers’ compensation EAMS system, Cal/OSHA data modernization, creating a Cal/OSHA emerging technologies unit, reappropriating funds for the California Opportunity Youth Apprenticeship program, and trailer bill changes requiring electronic payment of employer assessments and adjusting the statutory treatment of the workers’ compensation administrative director’s salary. The LAO generally found the IT and salary proposals reasonable but urged close monitoring of the new emerging technologies unit. Committee members, especially Assemblymember Ortega, pressed DIR on long vacancy rates, wage theft claim delays, low collection rates for Cal/OSHA fines, and whether new resources would improve outcomes; DIR said it was pursuing recruitment, classification reviews, and process modernization, while the LAO noted that staffing alone may not explain the delays. The Workers’ Compensation Appeals Board also sought to make permanent a 2024 change to the 60-day reconsideration clock, saying it had reduced backlog and interim orders; the LAO had no concerns. Finally, the Department of Human Resources presented a statewide Employee Assistance Program contract consolidation that would lower costs compared with renewing separate contracts and requested one program manager position to oversee the contract and first responder services; the hearing continued with Finance’s response after the transcript ended.

Transcript Highlights:

• like a 90% goes into the Public Safety Parity Fund, but a 10%, which would be more than, I hope, inflation
• And so then the corpus, even accounting for inflation, would actually grow.
• goes into the public safety parity fund, but a 10%, which would be more than, I hope it's more than inflation
• And so then the corpus, even accounting for inflation, would actually grow.

Bills: HB2063, HB2271, HB2416, HB2478, HB2593, HB2692, HB2813, HB2992, HB2993, HB4044

Keywords: corrections oversight, appropriation, independent office, public safety, funding, firefighters, insurance rates, workers' compensation, firefighter cancer reimbursement, rate deviations, cost analysis, premiums, border security, drug trafficking, human smuggling, law enforcement funding, Arizona, immigration, education reform, K-12

Summary: The committee heard several appropriations and policy bills, with testimony often focused on public safety, education, and procurement. HB 263 would appropriate $1.5 million in FY2027 to the Independent Correctional Oversight Office; the sponsor and supportive testimony argued the office is needed to address serious problems in the corrections system, and the bill received a due pass recommendation, 17-1. HB 2993, as amended, would allow DPS to spend on legal services independent of the Attorney General and redirect $5 million from the Consumer Protection/Consumer Fraud Revolving Fund to the Gang and Immigration Intelligence Team Enforcement Mission Fund; the Speaker framed it as supporting law enforcement and public safety, and it passed 17-0. HB 2271 dealt with firefighter cancer coverage and insurance rates. The bill would allow an insurer covering firefighters and fire investigators to file a uniform rate deviation only if it is not reimbursed by the municipal firefighter cancer reimbursement fund. Testimony described the measure as a temporary shell pending a broader consensus agreement to bring fire districts into the reimbursement system; members stressed that firefighters should not see changes in claim handling, but several said the bill still needed work. It received a due pass recommendation on a 16-1-1 vote. HB 2416 would appropriate $20 million to DPS for local border support, including law enforcement positions, prosecution and detention costs, and equipment; sheriffs and the Arizona Sheriffs Association supported it as a continuation of existing funding for drug interdiction and border-related crime, and it passed 11-6-1. The committee also advanced HB 2692, which revises public construction procurement rules and authorizes progressive design-build and one-step competition for certain federally funded projects. Construction and procurement stakeholders said the bill was the product of a long consensus process, while some members worried about taxpayer impacts and the move away from standard procurement; it passed 10-7-1. HB 2478, as amended, creates the Arizona Commission on Student Outcomes to study K-12 accountability, standards, graduation requirements, early childhood education, and a trade pathways diploma, funded by Classroom Site Fund dollars; members debated whether the work should instead be done by ADE or the State Board, and the bill passed 11-7. The committee also heard HB 4044, which would create a Public Safety Parity Fund to support DPS and corrections salaries using investment earnings from the Budget Stabilization Fund and proceeds from forfeited digital assets; the sponsor and a troopers association witness argued it would provide a stable long-term funding source to address chronic vacancies and pay gaps.