Transcript Highlights:

• Students participating will have to maintain a 92% attendance rate.
• I'm here to support evaluation specifically around scientifically based programs, evidence-based research
• Again, we've had low proficiency rates.
• We are one of the highest chronic absenteeism rates. Fortunately, that rate is going down.
• I think seeing those high participation rates...

Transcript Highlights:

• This rate climbs to 65% when you look out six years.
• Where we've made more progress is in graduation rates.
• That rate was created in many ways to deal with.
• In FYI 21, the six-year graduation rate yielded 23%.
• surpasses the 85% historical rate.

Transcript Highlights:

• So those are based on actual budgets that have passed and aren't impacted by interest rates.
• So those are based on actual budgets that have passed and aren't impacted by interest rates.
• So those are based on actual budgets that have passed and aren't impacted by interest rates.
• what what were those interest rate what what were those interest rate increases?
• nation with the submitt rate that high. nation with the submitt rate that high.

Keywords: 1187, senate, all

Transcript Highlights:

• allowed to re uh negotiate costs based allowed to re uh negotiate costs based on<00:07:46.479>
• our collection rate low?
• rate up some. rate up some.
• Does that go into that figure, or is that solely based on beds? That's just based on beds.
• solely based on beds? solely based on beds?

Keywords: Call to Order and Roll Call- 00:00:00 Approve Minutes from November 13, 2025- 00:00:55 RiverLink Tolling Operations for Louisville Bridges-Quarterhill Testimony- 00:01:48 Staff Report on Veterans’ Centers- 00:26:45 Kentucky Department of Veterans Affairs Response to Staff Report- 0:58:53 Adjournment- 1:18:00, 958, all

Summary: The committee first approved the minutes from the November 13, 2025 meeting and then heard testimony from Quarter Hill, the tolling subcontractor for RiverLink on the Indiana-Kentucky bridge system. Quarter Hill described its role in back-office support and call center operations for the Lincoln, Kennedy, and Lewis and Clark bridges, and said the contract began in 2021 with go-live in September 2023. The company reported that revenue has increased since it took over, customer service response times have improved, and it has been operating at a loss because the contract was based on outdated transaction estimates and did not account for higher-than-expected volume and added support costs. Members questioned Quarter Hill about the role of consultants, the low reported collection rate, and why the company was leaving the contract. Quarter Hill said a single large consulting engineering firm had been hired to help shape the RFP and contract, but argued that consultants and overly detailed requirements can create disputes and hinder efficient service. On collection rates, the company said the reported 85% rate reflects the absence of registration holds and other enforcement tools, and that the remaining unpaid tolls are the hardest to collect. The company also said it had lost significant money on the contract and had reached a change order and termination agreement, while emphasizing that the system itself was functioning well. The committee then received a staff report on Kentucky veterans centers. Staff said quality of care is generally high and staffing has improved, but reported occupancy figures are misleading because they are based on certified beds rather than functional capacity after conversions to single-occupancy rooms and capital projects. The report said actual occupancy is closer to 85% than the commonly reported 56%, and that increasing occupancy would not necessarily increase revenue because the state’s cost of care exceeds reimbursement and private-pay revenue. Recommendations included adopting functional occupancy reporting, continuing the move to single-occupancy rooms, reviewing modernization needs at Thompson Hood, including Eastern Kentucky in planning, and referring the Radcliffe HVAC procurement and installation to the Auditor of Public Accounts and Attorney General for review.

Transcript Highlights:

• these rates constant. these rates constant.
• So it's a different rate that we base ours on.
• based on the years of service. based on the years of service.
• we >> So it's a it's a different rate that we base<00:49:08.240> ours<00:49:08.480> on
• We showed here the single rate.

Keywords: Meeting Start: 00:00:35 Attendance Roll Call: 00:00:55 Approval of Minutes: 00:02:56 Deferred Compensation Authority Update: 00:03:12 Retiree Health Update - TRS: 00:15:58 Retiree Health Update - KPPA: 00:56:13 Adjournment: 01:08:10, 958, all

Summary: The Public Pension Oversight Board met with a quorum, approved the prior minutes, and heard updates from the Kentucky Public Employees Deferred Compensation Authority and the Teachers Retirement System. The deferred compensation update highlighted continued growth in assets to about $4.787 billion and roughly 88,000 participants, strong retention from auto-enrollment, a marketing campaign tied to pay raises that generated additional participation, and a new self-directed brokerage account expected to launch July 1 of the coming year for participants with at least a $40,000 balance, allowing up to 25% of their account to be moved into the brokerage window. The director also described the free financial planning service, which has been used by about 3,500 participants with a high return rate, and said the plan is currently in a fee holiday; if fees are charged, they are capped at $237 per year for most participants. Members asked questions about who provides the CFP service, the fee structure, and the brokerage eligibility threshold. The director said the CFP service is provided through the authority’s service bundle with Nationwide, not as a separate paid service, and explained that the fee cap and current fee holiday are intended to keep the program low-cost. Board members praised the deferred compensation program’s performance and asked for a copy of the legislation referenced in the presentation. TRS then presented on retired teachers’ health insurance. Barnes first clarified how declining federal contributions for federally funded school positions affect the retirement annuity trust, explaining that if those federal dollars fall, the amounts would need to be covered through the SEEK formula and that the projection for those contributions is about $80 million over the next three years. He then reviewed TRS retiree health coverage, distinguishing between KEHP for retirees under 65 or not Medicare-eligible and MEHP for Medicare-eligible retirees, and explained that TRS recently completed RFPs for both prescription drug and medical coverage. TRS will keep Express Scripts for prescription drugs, but will move the Medicare Advantage medical plan from UnitedHealthcare to Humana on January 1, 2026, while keeping the plan design, provider access, and out-of-pocket structure largely unchanged, with a new hearing-aid benefit of $500 per ear. Barnes also reported the 2026 premium and contribution changes: the maximum TRS contribution toward KEHP will rise to $1,144.96 from $930.76, an 18% increase that he said will require roughly $15 million to $16 million more in the state budget, while the MEHP premium will drop to $200 per month from $210. He said the TRS board has statutory authority to set these amounts and that the changes will have mixed actuarial effects, with the KEHP increase being negative overall and the MEHP decrease positive.

Transcript Highlights:

• on holding the rest of the rate base harmless.
• rate cases. and this is because Leak-prone pipe should be recovered in base rate cases.
• customer base, and those rates will rise for the remaining customers.
• So GSEP spending starts outside the rate base and traditional rate making in the bar chart to the right
• So GSEP spending starts outside the rate base and traditional rate making in the bar chart to the right

Keywords: 995, all

Summary: The committee heard testimony on two related issues: gas utilities’ climate compliance plans filed with the Department of Public Utilities and the recent DPU orders reforming the Gas System Enhancement Program (GSEP). Chair Creem and other senators emphasized that Massachusetts must reduce gas use, shrink the gas distribution footprint, and move customers to alternatives such as heat pumps, network geothermal, and non-gas pipeline alternatives (NPAs). DPU Chair Jamie Van Nostrand said the new GSEP orders lower the annual revenue cap from 3.0% to 2.5%, phase it down toward 1.5%, eliminate carrying charges, require more rigorous risk prioritization, and push utilities to consider advanced leak technology, relining, repairs, and NPAs. He also described the climate compliance plans as the start of a longer process covering decommissioning, stranded costs, line extension allowances, integrated energy planning, and targeted electrification demonstrations. Senators pressed the DPU and utility witnesses on the lack of specificity in the climate compliance plans, especially the absence of numeric goals for gas usage reduction, customer conversions, and near-term deployment of NPAs. Utility representatives from Eversource and National Grid said their plans include NPA frameworks, integrated energy planning, targeted electrification pilots, network geothermal, and workforce transition efforts, but argued that implementation takes time, requires customer participation, and depends on coordination with electric utilities and communities. They said some NPA and electrification projects are being evaluated now, while larger-scale deployment is expected later in the decade. Senators also raised concerns about line extension allowances, with utilities explaining that new customers may be charged based on whether existing ratepayers would otherwise be harmed, while National Grid said it has begun increasing customer contributions to send stronger price signals. Attorney General Mary Gardner supported the DPU’s GSEP reforms and said the office favors eventually stepping the GSEP cap down to zero by 2030, with repair and replacement costs recovered in base rate cases instead. She argued that the utilities’ plans still rely too heavily on business-as-usual approaches, do not adequately quantify scope 3 emissions, and leave unresolved questions about the obligation to serve and the future of line extension allowances. Advocacy witnesses from the Conservation Law Foundation and Acadia Center were more critical, saying the plans lack the detailed modeling, targets, and transparency needed to show how the utilities will help meet the Commonwealth’s heating and cooling sublimits and broader climate goals. No votes were taken; the hearing consisted of testimony and questioning.

Transcript Highlights:

• You know, something like this certainly is a worthy thing to raise the rates.
• So, right now, determination is based on several assumptions.
• The feedback I get from the county-based purchasing has always been positive.
• This is based on the provider level.
• Hope, if I'm completely off base, or he's nodding yes, so I'm not way off base.

Transcript Highlights:

• So based on your funding level, what's the maximum, or what's the best vacancy rate you could come down
• unfunded in the government So based unfunded in the government So based based<01:15:34.480> on
• I did want to spend a little bit of time on some of our engagement rates and quit rates and vacancy rates
• I did want to spend a little bit of time on some of our engagement rates and quit rates and vacancy rates
• Can you tell me what your daily rate is? Sure. Our current daily rate is $1,599.

Keywords: 928, house, all

Summary: Division 3 opened a work session focused on direct care agencies, with the chair saying the day would center on the Veterans Home and other state hospitals and homes. Members first discussed the upcoming Finance Committee process, including how many bills would be assigned to Division 3, whether they would appear on the House calendar, and how much time would be allowed for each bill. The chair said the division would likely spend about an hour on each bill, then return for a second day of review before making recommendations. Staff later identified three bills expected on the calendar: House Bills 704, 751, and 54. Members also raised a question about the use of educational trust fund money in the budget, but that issue was deferred. The main presentation came from Kim McKay, commandant of the New Hampshire Veterans Home, who described the facility as a long-term care intermediate facility serving eligible veterans. She said the home is licensed for 250 beds, budgeted for 225 veterans, and currently has 135 residents with four more scheduled to arrive. McKay highlighted improvements over the last two years, including a reduction in the admission wait list from more than a year to about three to six months, the creation of an LNA training program, energy-saving and Wi-Fi upgrades, and a new electronic learning management system that will provide mandatory training and continuing education units for staff. She said the home’s long-term goal is to return to a 225-bed census, but staffing remains the biggest hurdle. Members asked about admissions, wait times, staffing, vacancies, and the home’s use of contract nurses. McKay explained that the wait time is measured from the initial application date, not from a completed packet, and that staff now help families gather records and paperwork more quickly. She said the home averages about 45 deaths per year, residents stay about 2.5 years on average, and the vacancy rate is around 35 percent, though some positions are intentionally held open until census grows. She attributed staffing shortages largely to retention problems, citing higher private-sector pay, bonuses, and more flexible hours, and said the home has a handful of contract nurses, mainly on second shift. On finances, she said pharmacy services are contracted, the VA reimburses some medication costs based on disability, and the home is pursuing federal changes to cover high-cost medications and catastrophic disability cases. The discussion also covered the home’s off-book donation account, which is overseen by the state and transferred into the state system when funds are spent.

Transcript Highlights:

• upon the risk rating that is assigned.
• You can calculate your incarceration rate based upon what your population projections will be into the
• So we are able to take current incarceration rates, uh, based upon your historical twelve-month average
• So it's based upon.
• Under either current tax rate or again most years we've been able to lower the tax rate um but we've

Transcript Highlights:

• Some are through just like the user rates, some may be special assessed.
• I'd like it to be in the base budget or not the base budget, come out of the base budget for the coming
• It's all based on data.
• It's all based on data.
• On the department shall increase rates limits 2% for inflation.

Bills: SB2015

Keywords: corrections, rehabilitation, prison budget, department of corrections, adult services, youth services, correctional facilities, Heart River correctional center, Missouri River correctional center, James River correctional center, minimum security facility, county jails, regional jails, deferred maintenance, capital construction, strategic investment and improvements fund, Bank of North Dakota, line of credit, tasers, body cameras

Summary: The committee first discussed a wastewater infrastructure bill, centered on whether state support should be provided as a grant or through the existing Clean Water State Revolving Fund as a low-interest loan program. Department of Environmental Quality official David Brushwine explained that the SRF already finances wastewater projects, can leverage federal funds with state bond proceeds, and could accommodate the Washburn, Lincoln, and Peasant projects if they are ready to proceed. Members noted that losing federal grant support would make projects harder for local residents to afford because costs would be recovered through utility rates or special assessments, but the projects would still be eligible for loans. Senator Magrum indicated he would likely concur with the budget after this discussion, and the bill was set aside for later consideration. The committee then turned to a proposed amendment for a four-plex housing project for people with disabilities or other special needs. Senator Mathern described Sections 7 and 8 as creating a design consultation appropriation and a revolving loan fund modeled on existing hospital and nursing home loan programs, while Section 9 would transfer $3.3 million from the state infrastructure fund. Members debated ownership, rent subsidies, repayment terms, and whether the state should finance the project directly or leave it to a private developer with Department of Human Services oversight. Concerns were raised that the state should not own the housing and that the proposal needed more work to be workable, but the committee ultimately reached consensus to adopt Sections 7 and 8 and leave out Section 9 for further conference committee discussion. The committee also reviewed provider inflation and long-term care rate issues, with members discussing whether to support a 2% and 1.5% inflation adjustment and how to handle the $5-per-day basic care rate. Staff explained that the $5 payment was already in the base budget, but members debated whether it should remain ongoing or be treated as one-time funding and paired with a study of rate rebasing. The committee agreed to have draft language prepared to remove the $5 from the base budget and add study language, then moved the bill forward for drafting.

Transcript Highlights:

• Now, California's rate of food insecurity, that 13%, is pretty close to the national rate of about 14%
• at a rate of four a day.
• The participation rate is high.
• The participation rate is high.
• Broad-based categorical eligibility.

Summary: The joint oversight hearing focused on food insecurity in California and how state and federal nutrition programs, agricultural production, and food distribution systems intersect. Assemblymembers emphasized that many Californians, including farmworkers, seniors, children, and communities of color, remain food insecure despite California’s agricultural abundance. Panelists and members discussed CalFresh, WIC, school meals, Sun Bucks, food banks, and the impact of federal policy changes, including possible nutrition cuts, tariffs, and immigration enforcement, on access to food and the agricultural workforce. Secretary Karen Ross described CDFA programs aimed at improving access to fresh food and supporting local agriculture, including the senior farmers’ market program, California Nutrition Incentive Program, Healthy Refrigeration Grant Program, Community Food Hubs, Farm to School, urban agriculture, and a proposed tribal food sovereignty program. She said these efforts help connect local producers to consumers, expand healthy food access, and build infrastructure such as refrigeration, mobile markets, and aggregation hubs. Department of Social Services Deputy Director Alexis Fernandez Garcia outlined CalFresh, CFAP, Sun Bucks, CACFP, emergency food programs, and tribal nutrition assistance, noting that CalFresh and related programs significantly reduce poverty and food insecurity, but participation gaps remain for non-English speakers, some Asian American communities, and undocumented households. PPIC researcher Tess Thorman presented data showing that 13% of California households experienced food insecurity in 2023, with higher rates among households with children and Latino, Black, and other households. She said nutrition programs reduce poverty and food hardship, but federal rules, income thresholds, immigration restrictions, and high living costs limit their reach. Members asked about simplifying applications, improving call center access, increasing outreach in multiple languages, and adjusting benefits for inflation. Officials said the state has used available federal options to streamline enrollment, improve customer service, and target outreach, but many core rules and benefit levels are set federally. The second panel shifted to food production and market access. A farmer, a UC food systems leader, and a produce distributor described efforts to connect small and medium farms with food banks, schools, universities, and Medi-Cal food-as-medicine programs. They highlighted programs such as Farms Together, the USDA Southwest Regional Food Business Center, Farm to School, food hubs, and climate-smart infrastructure grants as ways to create stable markets for local growers while improving food access. Speakers also raised concerns about land tenure, consolidation, regulatory burdens, labor constraints, and the loss of federal funding, and members discussed whether state investments and Prop. 4 funds could help sustain and expand these efforts.

Transcript Highlights:

• Plan out when they will be inspected based upon the risk rating that is assigned.
• A countywide population of 30,000, you can calculate your incarceration rate based upon on what your
• So we are able to take current incarceration. rates based upon your historical 12-month average and then
• based upon the size of the facility.
• Appraisals and tax rates are set at what the tax rates are, but I think. that uh not unlike the uh the

Keywords: 1184, house, all

Transcript Highlights:

• That's the issue with the interest rate.
• And what I've done here is I've juxtaposed the 30-year fixed-rate mortgage rate in green against our
• And the growth rate since then has been relatively muted.
• Of that going to be on the homeownership rate.
• I'm just talking about market-rate housing.

Summary: The Senate Housing Committee heard a series of work-session presentations focused on transit-oriented development, commercial-to-residential redevelopment, building code implementation, housing market trends, and the Covenant Homeownership Program. The first presentation, from the Urban Institute, reviewed research on HB 1491 and TOD feasibility, arguing that Washington has made major progress but faces diverging conditions across transit areas. The presenter said rising construction costs, higher interest rates, and lower rents in some markets have made many projects less feasible, and recommended targeted infrastructure funding for lower-market communities, adjustments to MFTE and affordability requirements by local market conditions, more support for very low-income housing in high-market transit areas, minimum density standards near stations, expanded public land/joint development tools, and better tracking of TOD outcomes over time. Committee members asked about AMI calculations, immigration’s effect on construction labor, developer input, and whether a tracking mechanism had been removed from the bill. The Department of Commerce then outlined implementation of HB 1491 and demonstrated the new Washington Zoning Atlas, which is live and intended to help visualize zoning, overlays, and station-area conditions. Commerce said local governments will designate station areas, update zoning and MFTE policies, and handle anti-displacement measures, with Vancouver and Spokane first to implement and Puget Sound following later. Staff described a timeline for updated MFTE guidance, station-area implementation guidance, a TOD model ordinance, and later rulemaking on variances. The committee also heard from the Lieutenant Governor’s office on a report about converting commercial properties to housing, which found substantial potential for redevelopment on vacant or underused commercial land, especially near transit, but noted barriers such as ground-floor retail mandates, affordability requirements, infrastructure costs, private covenants, and slow implementation. The office urged by-right residential use on commercial land and faster rollout of new housing laws. The State Building Code Council updated the committee on its three-year code cycle and several legislatively directed actions, including minimum dwelling size, emergency shelters, and especially single-exit stairs and multiplex housing. Council staff said those code changes are nearing completion and will provide prescriptive solutions, while noting that elevator size and requirements were not changed and would require separate legislative direction if the committee wanted to revisit them. Members discussed the cost impacts of building and energy codes and the council said it is required to consider economic impacts and is increasingly looking at performance-based approaches. Later, the Washington Center for Real Estate Research presented its annual housing report, showing that higher mortgage rates have sharply reduced affordability, flattened house prices in many cities, and slowed single-family permitting and completions, while multifamily construction has recently cooled after a prior surge. Finally, the Washington State Housing Finance Commission reported strong first-year results for the Covenant Homeownership Program, which provides zero-interest down payment assistance to eligible first-time buyers with family ties to Washington before 1968; the program assisted 547 homebuyers in its first fiscal year, with more than $60 million loaned, and the agency said participation has continued to grow after income-limit changes enacted in 2025.

Transcript Highlights:

• I think we need to have a base; this committee needs to understand what at least the appropriations base
• And the article based...
• Well, now that Medicaid rate needs to go up that 5% too.
• Provider rates.
• On the error rate, you know, the error rate on page 21...

Transcript Highlights:

• California's error rate in 2024 was above 10%.
• upon science and not based upon ideology?
• Based on what we are seeing right now, what I want to spend my time talking about is the triaging based
• With respect to the error rates, right? Why do we need to talk about the error rates now?
• With respect to the error rates, right?

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• you our NCLEX RN pass rates, where in 2020 the gap was the greatest between Florida and U.S. pass rates
• Our BSN rates per region—here, again, in that south region, you can see that BSN rates per region: here
• So based on 19,623 test takers and the passage rate, that means 15,851 passed.
• . ...and collects pass rates.
• I mean, pass rate, 96% pass rate, if I'm not mistaken.

Summary: The subcommittee met to examine Florida’s nursing education pipeline and the state’s persistently low NCLEX passage rates. Chair Tuck opened by noting the projected nurse shortage and Florida’s ranking near the bottom nationally for first-time NCLEX pass rates. The Department of Health explained the Board of Nursing’s approval process for nursing programs, including application requirements, probation standards, and termination for programs that repeatedly fail passage-rate benchmarks. The Florida Center for Nursing then presented statewide data showing Florida has more test takers than most states, but still trails the national average; the gap has narrowed in recent years, though Florida remains below average. Members focused heavily on why the state continues to underperform, with discussion of faculty shortages, clinical placement constraints, accreditation, student preparedness, and the large share of newer private for-profit programs among those placed on probation. Committee members asked about how probation works, what happens when programs improve, and whether the board requires corrective plans. They also questioned the relationship between program type and outcomes, the effect of Operation Nightingale, and how many students fail and retest. The Florida Center for Nursing said first-attempt pass rates are the standard measure and that students who fail are expected to remediate and retest, though costs vary. The center also said Florida’s data shows accredited programs outperform approved or probationary ones, and that the state’s nursing workforce challenges are tied to broader issues such as faculty vacancies, clinical site competition, and student demographics, including many students balancing work, family, and language barriers. A panel of nursing school leaders from public, private nonprofit, and private for-profit institutions then described strategies used to improve outcomes. These included transparent recruitment, early orientation, tutoring, success coaching, stronger faculty development, curriculum mapping to NCLEX standards, higher course benchmarks, mandatory remediation, simulation labs, and commercial NCLEX prep tools such as ATI, Kaplan, and HESI. Several panelists said their programs had improved after probation or had very high passage rates, and they emphasized that student success depends on academic preparation, clinical experience, and support services. Members also asked about tuition, program length, translation into other languages, and faculty recruitment; panelists said costs vary widely, faculty hiring is difficult because hospitals pay more, and some schools are considering medical Spanish and immersion options rather than full curriculum translation.

Transcript Highlights:

• rate models and the associated quality measures introduced as part of rate reform.
• program rate structure.
• rate models and the associated quality measures introduced as part of rate reform.
• program rate structure.
• In other words, rates have increased since the 2019 rate models were established.

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:

• , which is really an artificial constraint on the rates based on what the legislative appropriation is
• So the July rates are based on a February picture date.
• The January 1st rates are based on an August 31st picture date.
• So the July rates are<01:39:32.080> based<01:39:32.239> on<01:39:32.400> a<01:39
• rates are based on an the January 1st rates are based on an August<01:39:36.719> 31st<01:39:37.280

Keywords: 1189, house, all

Transcript Highlights:

• , the taxable value rate, at 8.3% compared to 9.5%, which is the current rate.
• spot, uh establishing the rate at 8.3%. spot, uh establishing the rate at 8.3%.
• assessment rate to 8.3%. assessment rate to 8.3%.
• So, but yeah, that number in there is based on the 2025. looking at a 7% interest rate.
• Those get added, but they're added based on the base year values.

Keywords: 916, all

Transcript Highlights:

• <02:14:29.000> um rate or close to that Medicare rate um rate or close to that Medicare rate
• Well, the nursing home rates are adjusted twice a year, and they're based on what's called case mix,
• Well, the nursing home rates are adjusted twice a year, and they're based on what's called case mix,
• Well, the nursing home rates are adjusted twice a year, and they're based on what's called case mix,
• Well, the nursing home rates are adjusted twice a year, and they're based on what's called case mix,

Keywords: 1191, senate, all