Transcript Highlights:

• to campuses that are above their levels and looking to expand capacity.
• The fee levels proposed by the Bureau The fee levels proposed by the Bureau and their Sunset report include
• students at both the graduate and undergraduate level.
• And that's why we were very supportive of trying to do. at various levels.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding

Transcript Highlights:

• to campuses that are above their levels and looking to expand capacity.
• to campuses that are above their levels and looking to expand capacity.
• students at both the graduate and undergraduate level.
• And that's why we were very supportive of trying to do. at various levels.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding

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

Transcript Highlights:

• to campuses that are above their levels and looking to expand capacity.
• and undergraduate level.
• Thank you. at various levels.
• Final award levels are contingent upon the number of eligible students statewide and the level of funding
• This amount will also fund the scholarship at the 17.5% level of unmet need.

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

Transcript Highlights:

• The next level... The next level, the APPs, is where we're going to be recruiting.
• So there is some level of care closest to home.
• Are folks receiving more services on an individual level?
• Usually it's a high-level program administrator.
• You know, the level of appeals that we have.

Summary: The committee was called to order, the roll was taken, and the March 18 minutes were approved. Members then received several project and program updates, beginning with CHI St. Alexius’s behavioral health buildouts in Bismarck, Williston, and Grand Forks. St. Alexius reported that the Bismarck project remains on track for June 2027 completion, with demolition underway and final design work nearing completion. Williston reported construction is progressing, staffing recruitment is underway for psychiatrists and other staff, and an air handler replacement is creating a roughly $750,000 unbudgeted barrier that will slightly delay the timeline. Grand Forks reported its expansion is about 30% complete, with no major barriers beyond weather, and leaders said the project should be substantially complete in the first quarter of 2027. The Department of Health and Human Services then presented a series of budget and program updates. Donna Ockland explained several recent line-item transfers as technical corrections that net to zero and do not require new spending, then reviewed salaries, wages, and FTE counts, noting the department remains within its authorized staffing levels. Pat Rainer followed with an update on the Rural Health Transformation Program, saying 12 opportunities have been posted, 422 applications received, and $8.4 million obligated so far, with a goal of obligating the full $199 million by September. He described grants for workforce retention, rural rotations and housing, community gardens, school wellness, behavioral health promotion, safety net services, equipment, technology, EMS, and other initiatives, emphasizing that the program is intended to be transformational and tied to metrics. Members asked extensive questions about how rural eligibility is defined, how grants will support both rural facilities and hub hospitals, and how future years of funding will build on current awards. The committee also heard an update on certified community behavioral health clinics from Elena Zeller, who said North Dakota has been accepted as a demonstration state, implementation is underway in Williston, North Central/Minot, Fargo, and Dickinson, and care coordination and service counts are increasing. Rebecca Askins then reviewed SNAP payment error rates, saying the 2025 rate was finalized at 9.89%, with the state aiming to get below 6% through policy updates, training, data tools, and a quality assurance team. Members pressed her on the causes of the error rate, the role of the SPACES software system, and the need for accountability and improvements. Finally, Dirk Wilkie reported the state laboratory project reached substantial completion on June 12 and is on budget at about $69.95 million, though a service elevator had to be redesigned because it was too small for equipment.

Transcript Highlights:

• The next level The next level, the APPs, is where we're going to be recruiting.
• So there is some level of care closest to home.
• Are folks receiving more services on an individual level?
• Usually it's a high-level program administrator.
• These states are all below the level where you get fined. Why?

Summary: The committee met with a quorum, approved the March 18 minutes, and then received a series of updates on major health-related projects and programs. CHI St. Alexius representatives reported progress on behavioral health buildouts in Bismarck, Williston, and Grand Forks, including demolition and construction milestones, staffing plans, and timelines. The Bismarck project remains on track for completion in June 2027 with about $346,500 spent to date. Williston reported construction underway, a $750,000 unbudgeted air handler replacement, active recruitment for psychiatrists and other staff, and a projected substantial completion in early 2027. Grand Forks reported about 30% completion, weather-tight status expected in August, and continued staffing ramp-up as the facility expands from its current 24-bed operation. The Department of Health and Human Services then reviewed a set of technical line-item transfers, emphasizing that they were administrative corrections with no net change in funding. The department also walked through the Salaries and Wages Block Grant and FTE counts, noting overall staffing remained within appropriated limits and that behavioral health staffing had increased. Members asked about vacancies, consultant use, and the mix of in-state versus out-of-state expertise for the Rural Health Transformation Program. HHS said it had posted 12 funding opportunities, received 422 applications, obligated $8.4 million so far, hired 26 people, and was preparing additional grant rounds and a CMS budget submission. The department said the program is structured around workforce, prevention/healthy living, care closer to home, and technology/data, with ongoing stakeholder engagement and community forums. The committee also heard on the certified community behavioral health clinic implementation plan, SNAP payment error rates, and the state laboratory project. HHS said CCBHC certification is being implemented in four regions—Williston, Minot/North Central, Fargo/Southeast, and Dickinson/Badlands—with care coordination expanding and baseline data still being collected. On SNAP, the department reported a 2025 payment error rate of 9.89%, acknowledged cost impacts under HR1, and said it is using training, system changes, and pre-authorization quality checks to reduce errors toward a 6% target over the next 6 to 12 months. Finally, Public Health reported the state laboratory reached substantial completion on June 12, with total costs at $69.95 million of the $70 million budget, though a service elevator issue will require a new lift to be added using contingency funds.

Transcript Highlights:

• The next level, The APPs is where we're going to be recruiting.
• So there is some level of care closest to home.
• Are folks receiving more services on an individual level?
• Usually it's a high-level program administrator.
• You know, what the level of appeals that we have.

Summary: The committee met with a quorum, approved the March 18 minutes, and then received a series of updates on health-related projects and Department of Health and Human Services budget matters. Representatives from CHI St. Alexius in Bismarck and Williston, and Altru in Grand Forks, reported progress on behavioral health expansion projects, including demolition and construction milestones, updated timelines, funding status, staffing plans, and barriers such as an unbudgeted air handler replacement in Williston. Members asked about original completion dates, use of telehealth, recruitment of psychiatrists and other staff, and whether the new beds might reduce the need for patients to travel to Jamestown State Hospital. The projects were described as on track overall, with completion expected in 2027 for the larger builds and earlier openings for some phases in Williston. The committee then heard from HHS leadership on technical line-item transfers and the Salaries and Wages Block Grant. Donna Ockland explained that recent transfers were administrative corrections to place spending in the proper budget lines and did not involve new spending, and she reviewed FTE counts and vacancies across the department. Questions focused on behavioral health staffing changes and the use of consultants in the Rural Health Transformation Program. Pat Rainer outlined the rural health program’s first-year grants and priorities, including workforce retention, rural rotations and housing, community wellness initiatives, behavioral health promotion, safety net services, hospital equipment, suicide prevention training, technology, and EMS support. He said North Dakota’s plan was drawing positive national attention, but the department still needed to obligate roughly $199 million by September and was working with CMS on timing and compliance. The committee also received an update on certified community behavioral health clinics from Elena Zeller. She said North Dakota had been accepted as a demonstration state, with certification efforts underway in Williston, North Central, Fargo, and Dickinson. Members asked about care coordination, service growth, staffing, and whether certification would expand to all clinics; the department said it was still collecting baseline data and evaluating impacts before making future recommendations. Finally, Rebecca Askins reviewed SNAP payment error rates, explaining that the 2025 rate was finalized at 9.89 percent and that the department is working on training, system changes, and quality assurance steps to get below 6 percent. Members pressed on the causes of monthly variability, the performance of the SPACES system, and accountability for ongoing errors, and the department said it expects improvement over the next 6 to 12 months.

Transcript Highlights:

• We are very attuned, I think, at our department level.
• We are very attuned, I think, at our department level.
• We're not to the A-plus level.
• We are going to be providing a high-level overview today.
• down to the regional and local levels.

Summary: The Assembly Subcommittee on State Administration held a budget hearing focused heavily on housing, homelessness, and related administrative proposals. HCD reported that California housing production has increased, with 2023 completions up 13% from 2022 and entitlement and construction timelines improving, while members and advocates criticized the Governor’s January budget for zeroing out or sharply reducing several housing programs. Public testimony urged funding for affordable housing production, preservation, youth housing, CalHome, LIHTC, HAP, and related programs, and several speakers argued the state should not pull back after recent progress. A major policy item was trailer bill language to allow HCD to access “excess equity” in existing affordable housing projects and recycle those funds into new or preserved housing. HCD and the LAO said the proposal could unlock tens or hundreds of millions of dollars, but members wanted guardrails and clearer statutory direction to ensure the funds stay within the intended housing purposes. The committee also discussed encampment resolution funding; HCD said the proposal would shift expenditure deadlines to the date of award rather than appropriation, while the LAO raised concerns about limited outcome data and urged the Legislature to use upcoming reporting before deciding on future funding. The hearing also covered HCD trailer bills to consolidate default reserve funds into a centralized continuously appropriated account and to clarify reporting requirements for early rounds of the Homeless Housing, Assistance and Prevention program. HCD requested funding to implement chaptered legislation, including a new tribal housing program and reporting-related bills, and also sought extensions for certain reappropriations, including Homekey and REAP 2 deadlines. Public commenters and regional agencies supported flexibility for REAP 2 timing and other housing-related adjustments. Finally, the Business, Consumer Services and Housing Agency presented the Governor’s reorganization proposal to split the current agency into a Housing and Homelessness Agency and a Consumer Protection Agency. The administration said the change would improve focus, efficiency, and coordination, but the LAO and several members questioned whether it would truly save money or improve accountability, especially given the need for new leadership, possible staffing changes, and the fact that the plan had not yet been formally submitted for review. No votes were taken during the hearing.

Transcript Highlights:

• Those colors represent the level of risk to the embankment at each of those locations.
• a township level.
• available at a more granular level that would have been more applicable.
• Dollars that pass through our agency are also held to the highest level of compliance.
• In actually 13 areas, there are levels of compliance.

Committees: Joint Transportation , Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and its consultant described the study as focused on transportation mitigation, not on whether dam removal should occur. They outlined geologic risk work on drawdown and erosion, identified vulnerable embankments and nearby roads, rail, and utilities, and explained a total logistics cost model used to compare base conditions and several future scenarios. Those scenarios included no-dam conditions with new unit-train terminals, short-line rail options, a combined “many solutions” scenario, and a future scenario still to be defined. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could test reduced grain volumes; staff said the model can estimate transportation changes and costs, but not broader farm-economics impacts. WSU’s independent review said the model had improved but still had limitations in spatial detail, routing accuracy, and testing, and that stakeholder engagement remained important though delayed by model development. No votes were taken. The committee then received an update on the alternative sidewalk funding study. Consultants said the study is in its early information-gathering phase, with a statewide survey of cities and counties, interviews, national research, and legal review of possible funding mechanisms. They described current sidewalk funding as fragmented, with grants, transportation benefit districts, levies, and some utility-tax allocations used in Washington, but no dedicated statewide source. They said the study is especially examining a possible sidewalk utility fee, while parcel taxes appear unlikely under Washington’s property-tax rules. Members asked whether any new mechanism would duplicate existing taxes, how a sidewalk fee would be collected, and whether development requirements for sidewalks count as dedicated funding; the consultants said the study is aimed at expanding local options rather than mandating adoption. Deliverables include a preliminary draft by mid-December, a “Sidewalks 101” document by year-end, and a final report by mid-June next year. The committee also heard a brief update on the ocean-going vessels at berth emissions study. Staff explained that the report is nearing completion and will be presented at the next JTC meeting. They highlighted federal Clean Air Act constraints, noting that Washington’s options are shaped by California’s waiver-based standards and that deviations from California’s vessel-at-berth rules could invite litigation. Staff said stakeholder outreach is underway and asked for any missing participants to be identified before the final report is issued. Finally, the committee began hearing from county representatives on local transportation challenges. The county engineers’ association emphasized ongoing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs, but the presentation was cut off as the meeting moved on to the next item.

Transcript Highlights:

• at the state level.
• Abortion and reproductive health care services at the national level.
• I am again deeply concerned that we would be doing the same thing at the state level and undermining
• If you don't include those budget solutions, the revised spending level is actually much higher.
• What is the level of strictness that will happen? What will change in 2027?

Transcript Highlights:

• At the same time, including more foreign income in the tax base can not only affect revenue levels, but
• First, this chart shows, again, the U.S. national level, so essentially same as California, that it’s
• , as Professor Shansky noted. the federal and international level, as Professor Shansky noted.
• You've got to make a lot of difficult decisions in these budgetary times.
• I teach preschoolers with severe level three autism.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the Water’s Edge election versus worldwide combined reporting. Chairs opened by framing the issue as a review of whether current rules fairly and sufficiently tax foreign subsidiary income, given profit shifting concerns, budget pressures, and the long history since Water’s Edge was adopted in the 1980s. The first panel from the Legislative Analyst’s Office and Franchise Tax Board explained the mechanics of unitary taxation, apportionment, and the Water’s Edge election, and provided filing data showing Water’s Edge filers are a small share of returns but account for a large share of corporate tax liability. FTB witnesses said the agency already administers both methods and could handle a shift to mandatory worldwide reporting with education and outreach, though revenue estimates are difficult because foreign affiliate information is not directly available. Committee members asked about foreign government pushback, administrative burden, industries with more profit shifting, revenue uncertainty, and whether companies would leave California. LAO and FTB witnesses said pushback from foreign governments was plausible, but they did not expect major business flight because California’s tax is largely based on sales rather than physical presence. They also said worldwide reporting could reduce profit shifting but might increase revenue volatility and litigation risk. A second panel of academic and tax policy witnesses argued that Water’s Edge is a loophole that rewards aggressive tax planning, that worldwide combined reporting would better capture income tied to California, and that modern federal and international rules such as NCTI/GILTI, CAMT, and Pillar Two reduce compliance concerns and make a return to worldwide reporting more feasible. They also said California’s current system can create selection effects and may under-tax large multinationals. In the next panel, a California Budget and Policy Center witness urged eliminating the Water’s Edge election, calling it a costly loophole that benefits large global corporations over smaller domestic businesses and deprives the state of billions in revenue that could support health care and other services. A Silicon Valley Leadership Group witness gave historical context for why Water’s Edge was adopted and began outlining concerns about compliance, double taxation, and the risk of overreaching beyond income truly connected to California. No bill was voted on or advanced; the hearing was informational only, with members using the testimony to weigh the policy trade-offs and possible transition periods if the Legislature were to change the current rules.

Transcript Highlights:

• a township level.
• available at a more granular level that would have been more applicable.
• So taking away from that level of service does have an actual impact.
• So taking away from that level of service does have an actual impact.
• In actually 13 areas, there are levels of compliance.

Committee: Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and Jacobs described the study’s phases, including current work on geology, infrastructure risk, and a total logistics cost model. They explained that the study is examining how freight now moved by barge—especially wheat, fertilizer, and wood—could shift to rail and roads, and they outlined several scenarios ranging from no-dam future conditions to new unit-train terminals, short-line rail options, and a combined “many solutions” scenario. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could estimate transportation effects if grain volumes decline. The presenters said the study assumes current production levels continue, does not model irrigation changes or broader farm-economics impacts, but does account for transloading costs and can estimate transportation impacts under different volume assumptions. WSU’s independent review team said the model has improved substantially but still needed refinement, especially in routing, road data, and spatial detail, and that stakeholder engagement had been strong though delayed by model development. No votes were taken. The committee then received a presentation on the alternative sidewalk funding study. Staff and consultants said the study is exploring ways local governments could sustainably fund sidewalk maintenance, repair, and new construction, using a statewide survey, interviews, national research, and case studies in eight jurisdictions. They noted sidewalks are important for pedestrian safety and connectivity, but there is no dedicated funding source in Washington, and existing grants and local revenue tools are highly competitive or limited. The consultants highlighted sidewalk fees or utility-style charges as the most promising option to study, while a parcel tax was largely set aside because of state property-tax uniformity concerns. Members asked whether the study would duplicate existing funding or add to current taxes, and how a sidewalk fee would be collected; the consultants said the goal is to expand local options, not mandate adoption, and that fees would likely be billed through utilities rather than property taxes. A preliminary draft report is due December 15, with a final report due in mid-June. Next, staff gave a brief update on the ocean-going vessels study, which is examining shore power and emissions rules for vessels at berth. The presenter explained that federal Clean Air Act rules and California waiver authority create legal limits on how far Washington can go if it wants to adopt similar standards, and that deviations from California’s approach can increase litigation risk. The report will summarize stakeholder outreach and will be presented in draft form at the next JTC meeting. Finally, county engineers from Chelan and Douglas counties began a presentation on county transportation challenges, with the association’s director emphasizing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs. The county presentation was only beginning when the transcript ended, and no committee action or votes were recorded.

Transcript Highlights:

• than not continues to be the highest cost passed off to the homeowner, what ways can we at the state level
• Yeah, um I think just money-wise, budgetary, DOT's highway fund, I don't know if I want to say co-mingling
• We're only having these discussions because I think largely at the county level, we have not been able
• Yeah, um, I think just money-wise, budgetary, DOT's highway fund—I don't know if I want to say co-mingling—but

Summary: The House Transportation Committee met on March 31 and heard a series of resolutions focused on roadway safety, transportation access, and infrastructure coordination. Early measures included HCR 104/HR 96 on advancing coastal trails on O‘ahu’s North Shore and HCR 63/HR 57 on clarifying responsibility for Honouliuli Bridge and addressing safety, wildfire, and emergency access concerns. The Department of Transportation supported both, and a resident testified that the Honouliuli bridge is a single-lane emergency replacement on state land that has limited access for fire protection, heavy vehicles, permits, and repairs. DOT said it was working with DLNR and that jurisdiction may ultimately lie with the County of Maui, with research ongoing. The committee also heard HCR 62/HR 56 on alternative vegetation management along Hana Highway, HCR 43/HR 39 on raised crosswalks near Ala Wai Elementary, and HCR 52/HR 48 on integrating the safe system approach into county road design; these drew support testimony and no opposition. The committee then considered HCR 120/HR 112 on regulating transportation network companies under motor carrier law. DOT and the Public Utilities Commission offered comments, while Lyft opposed, arguing the legislature already created a TNC-specific framework in 2022 and that motor carrier law is not a good fit for app-based ride platforms. In questioning, PUC explained that TNCs would fall under both PUC motor carrier jurisdiction and DOT permitting, and DOT said it would follow up on enforcement questions. Members also discussed HCR 119/HR 111 on an indirect traffic disruption grant program, with the chair asking DOT to clarify how it enforces penalties when contractors or others fail to follow road closure requirements. Other measures discussed included HCR 96/HR 88 on moving to a demerit-point driver licensing system, which DOT supported; HCR 128/HR 120 on coordinating capital improvement planning for Hawaiian Home Lands developments, which DOT and DHHL supported; HCR 127/HR 119 on a state highway police force, which DOT supported; and HCR 125/HR 117 on a statewide plan for derelict utility poles and lines, which drew support from DOT, Hawaiian Electric, and Hawaiian Telcom, with DOT acknowledging it lacks current statutory authority to force immediate removal. The committee also heard HCR 58/HR 54 on school crosswalk safety for Mililani Elementary, HCR 55/HR 51 on using artificial intelligence to mitigate traffic and improve road safety, and HCR 54/HR 146 on expanding the Hele-On Shared Ride program on Hawai‘i Island. Supporters of the Hele-On measure said expanded service would help rural residents, kupuna, and people with disabilities reach medical appointments and daily activities, while noting cost and technology-access concerns; they said missed or delayed appointments are a real issue in remote areas. The final item discussed in the excerpt was HCR 64/HR 58 on minimizing rumble strip dimensions on Kūhiō Highway on Moloka‘i, with DOT saying it had already removed some strips where large emergency vehicles were affected on narrow curves.

Transcript Highlights:

• FDEM does not request and is not requesting any additional personnel from the fiscal year 2024-25 level
• Across all agencies and all levels of government.
• We are now taking that to an integrated level. Florida is the first in the country.
• So we're looking at not just at a macro level, but also a micro level.
• So we're looking at not just at a macro level, but also a micro level.

Summary: The subcommittee heard updates on several state technology modernization efforts, beginning with the Florida Division of Emergency Management’s Enterprise Business Solution (DEMS). FDEM said DEMS is about 50% complete, with some grants and finance functions already live, and is intended to replace manual disaster and grants processing with a cloud-based system. Officials described faster reimbursement timelines after recent storms, major return-on-investment claims, and a planned final phase focused on design, testing, communications, data governance, and additional functionality. Members asked about the total cost, the role of Florida Digital Service, deliverables-based contracting, and how much of the system is live; FDEM said the project is expected to cost about $16 million to $16.8 million and finish by June 2027, with some follow-up information to be provided. The Department of Legal Affairs presented its Office of Attorney General Modernization Program, a follow-up to an earlier effort that failed after spending about $26 million. Acting Attorney General John Gard said the department has now moved to an off-the-shelf case management product, LawBase, and is in development and testing, with the Office of Statewide Prosecution already live and full implementation expected by the end of the fiscal year. The request includes funding for staff augmentation, cloud storage, the LawBase license, redundancy through a backup site in Orlando, and OnBase support. Members questioned the prior failure, the use of Florida Digital Service standards, data location and cloud migration, and the redundancy plan; Gard said lessons learned included better scoping and that the current effort is on track. The Department of Highway Safety and Motor Vehicles then updated the committee on Motorist Modernization, including the Orion system and the MyDMV portal. Officials said Phase 1 and Phase 2 have modernized driver license and motor vehicle services, with Phase 2 statewide rollout scheduled to begin in April 2025 and Phase 3 proposed at $16.5 million for dealer services, data warehouse improvements, and call center modernization. Members asked about payment options, organ donor questions, staffing, cybersecurity, cloud strategy, and the digital driver license program. The agency said the portal already allows some sanctions to be cleared online, an ACH option is being developed, the digital driver license vendor has changed with a fall go-live anticipated, and the department is using security testing and a managed security service provider. Officials also said the system is currently on an on-prem private cloud, with future workloads expected to move to public cloud where appropriate. Finally, Florida Commerce presented on the Reemployment Assistance modernization system, Reconnect, and the FLWINS workforce system. Commerce said Reconnect is hosted in the Azure Government Cloud, has reduced claim filing time, improved fraud detection, and increased appeals capacity, and now needs $4.9 million in recurring funding to cover ongoing operations, cloud hosting, licenses, and staff augmentation. Members asked about adjudication issues, wait times, fraud prevention, and whether the system stores caller identifiers; Commerce said the average wait to speak to a representative is about 18 minutes and claims are generally processed in four to six weeks. The committee then began hearing about FLWINS, which is intended to create a “no wrong door” workforce portal under the REACH Act, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• It starts at the local level.
• And so I'll give you an local level.
• </c><00:09:00.480><c> I</c> it's it starts at the local level. I it's it starts at the local level.
• </c> at a local level. at a local level.
• And uh it's levels of government.

Committee: Joint Appropriations

Transcript Highlights:

• Well, at the federal level, the guidelines are voluntary.
• At the state level, it is a statutory requirement.
• At the state level, it is a statutory requirement.
• You really need to do it on the landscape level.
• That would bring us up to the current fiscal year level of $6 million.

Committee: Senate House Appropriations & Finance

Summary: The committee heard budget presentations from the Secretary of State, the State Land Office, the Attorney General, and the State Auditor. The Secretary of State said its requested general fund budget of $15.88 million was intended to maintain baseline operations, replace lost federal cyber and election support, and address a 12% vacancy rate. Officials warned that the House recommendation still left major gaps for election security, tabulator replacement, campaign finance system upgrades, overseas and military ballot services, ballot tracking, and a new tax lien filing system. Senators pressed about the election fund, county burdens, and the risk of underfunding election administration; the office said the House had provided $15 million for the election fund for the primary and another $15 million for the general election, but not enough for operations or all capital needs. The State Land Office said it was satisfied with the House budget action and had no additional request. Staff described the office’s record revenues, low vacancy rate, clean audits, and proposed new positions tied to forestry, economic development, petroleum, geothermal, and royalty compliance work. Senators asked about long-term revenue trends, forest thinning and biomass opportunities, and bookkeeping around the land maintenance fund; the office said the new positions were intended to generate revenue and support land management, including fire mitigation. The Attorney General’s office presented a budget built around a 0% general fund increase, greater use of the Consumer Settlement Fund, and $4.5 million in special/extraordinary litigation funding. The AG emphasized active litigation and investigations involving consumer fraud, Medicaid fraud, federal funding cuts, Meta and other technology platforms, AI and child safety, gaming compacts, tobacco, and possible litigation over abandoned uranium mine cleanup. Senators asked about scam enforcement, the structure of settlement funds, and whether the office could take on uranium-related litigation; the AG said the office could prepare a litigation budget but warned such efforts would require sustained funding. The State Auditor said the House budget added only modest increases while the office faced about a 40% vacancy rate, difficulty recruiting auditors, and a shrinking pool of public accounting firms, creating risks for constitutional audit responsibilities.

Transcript Highlights:

• I'm about to teach science under an emergency credential at the junior high and high school level and
• We, since we started this process, the level of hate and anti-semitism that these Jewish students are
• . levels of injustice.
• So in other words, there may be layered levels of protection.
• Patel that you know one of the, especially at the federal level, and Ms.

Committee: House Education

Transcript Highlights:

• Budgetary request is for after-school supports, you know, athletics.
• and the complex area level.
• </c><02:14:51.079><c> level</c> with a lot of the school level level with a lot of the school level level
• </c><02:14:58.480><c> beaws</c> funded uh School level beaws funded uh School level beaws particularly
• So hopefully we can maintain at least that current level.

Summary: The Committee on Education held an informational/budget briefing with presentations from the State Library System, the School Facilities Authority, and the Department of Education. The chair opened the meeting by outlining the order of presentations and noting that members would hold questions until after all three agencies had testified. The discussion focused on each agency’s priorities for the upcoming biennium and their budget requests. State Librarian Stacy Aldridge described library usage and services, emphasizing strong demand for physical and digital materials, internet and Wi-Fi access, programs, Kanopy streaming, and PressReader. She highlighted digital literacy classes, RFID self-check and smart shelving improvements, and the role of libraries as community hubs. The library’s budget request included an additional $1.2 million for security guards, $48.484 million for FY 26-27 to support popup libraries during temporary closures and other needs, $500,000 for repair and maintenance, $2 million for Kap planning and design, and $25 million each year for lump-sum capital funding. Mallerie Fujitani said the lump-sum funding is needed to keep roughly 50 projects moving and to avoid delays in construction. School Facilities Authority Executive Director Ricky Fujitani explained the agency’s startup history and its programs for preschools, Central Maui schools, and workforce housing. He said the authority is using standardized, prefabricated, programmatic approaches to speed delivery and improve maintainability, citing prior preschool renovations as a successful model. He reported that of $389 million appropriated, $106 million was released, with $81 million for preschools, $20 million for Central Maui schools, and $5 million for workforce housing; he also noted the workforce housing program was reduced after Maui fire-related reallocations. He said the pilot workforce housing site at Mililani High School has been awarded and pointed to University of Hawaiʻi student housing projects as a model. Superintendent Hayashi then began the Department of Education presentation, introducing DOE leadership and outlining the department’s mission to support academic achievement, character development, and student well-being. He noted the department serves more than 152,000 students in 258 public schools and employs over 42,000 people, with nearly 54% of students facing significant challenges. He framed the budget request around the department’s strategic plan to prepare graduates for college, careers, or military service. The transcript ends during the DOE presentation, before any committee votes or formal actions are taken.

Transcript Highlights:

• I am exceptionally proud that this budget provides the highest per-pupil funding level in state history
• It's one of the highest levels in the country.
• And I want to maintain a level of decorum here in the committee, which I think is really important.
• Maintain a level of decorum here in the committee, which I think is really important.
• This level of funding will allow CSU to meet its mandatory costs and address priorities we all share

Committee: House Budget

Transcript Highlights:

• Uh, we see that there are many things being cut at the federal level, and, you know, the intention to
• Uh, we see that there are many things being cut at the federal level.
• </c><00:55:45.119><c> This</c> programs up to the Medicare level.
• This programs up to the Medicare level.
• </c> long-standing level of 2%. long-standing level of 2%.

Committee: Senate Taxes

Transcript Highlights:

• to the Chair's point, I don't want to go too in depth, but I do want to just hit kind of the high-level
• There's also a concern that with increased prosecutor involvement, there could be an increased level
• The courts have decided that issue so far on the court appeals level.
• The courts have decided that issue so far on the court appeals level.
• The courts have decided that issue so far on the court appeals level.

Committee: House Children and Families