Transcript Highlights:

• Again, Elyse Bailey, Budget Director of the Department of Human Services.
• we had previously presented in this committee on the governor's budget.
• The revised governor's budget updates that to 2% per year.
• This is a budget-neutral change that clarifies the financial eligibility for housing stabilization services
• We are including two additional budget-neutral items in this page.

Transcript Highlights:

• We're talking about budget lines.
• budget. So thank you, Madam Chair. budget. So thank you, Madam Chair.
• school readiness to economic stability. school readiness to economic stability.
• somebody's whole financial stability. somebody's whole financial stability.
• . budget. budget.

Keywords: 1187, senate, all

Transcript Highlights:

• and an unfavorable budget.
• Ending legislation from increasing the federal budget deficit requires the Office of Management and Budget
• As we saw in the 25-26 state budget, closing budget shortfalls without raising revenues results in discriminatory
• Our network helps stabilize families food budgets during disasters, economic downturns, and day-to-day
• We got $60 million for a program called Cal Food in this year's budget.

Keywords: 988, house, all

Transcript Highlights:

• :17:20.600> and talked about budget priorities and talked about budget priorities and putting<
• We're in a budget crisis.
• <00:25:03.280> for provide the necessary stability for provide the necessary stability for
• We're in a budget<00:38:06.440> crisis. budget crisis. budget crisis.
• out of the budget?

Keywords: Continuation of today's legislative session, beginning at 7:45 pm., 981, all

Summary: The House took up House Bill 1410, the state’s long appropriations bill for the executive, legislative, and judicial branches and their agencies and institutions for the fiscal year beginning July 1, 2026. The committee first recessed and then adopted a motion to rise, report progress, and sit again later that day. The House also adopted a motion under House Rule 14 to limit debate on House Bill 1410 to one hour during special orders on April 10, 2026, by a vote of 40-20, with four excused and one absent. During consideration of House Bill 1410, members debated Amendment J82/54A, which would require funding for wolf reintroduction to come from gifts, grants, and donations rather than general fund dollars. Supporters argued the state should not use taxpayer money for additional wolf reintroduction, especially during a budget crisis, and said rural ranchers and livestock producers are bearing the costs and impacts of wolves. They emphasized depredation concerns, the strain on rural communities, and the view that the reintroduction effort has been costly and poorly managed. Opponents of the amendment said the funding line is part of broader wolf management, not just reintroduction, and argued the state has a legal obligation to carry out Proposition 114. They said gifts, grants, and donations are not a reliable funding source for that mandate and noted the program also supports conflict minimization efforts such as range riders. One speaker also defended the ecological role of wolves, citing their benefits to ecosystems, elk management, and biodiversity. The transcript does not show a final vote on the amendment before the excerpt ends.

Transcript Highlights:

• corporate interests that prioritize short-term profit margins over workers' well-being and family stability
• corporate interests that prioritize short-term profit margins over workers' well-being and family stability
• corporate interests that prioritize short-term profit margins over workers' well-being and family stability
• I'm happy to invest in paid leave because it will provide stability to my team when we need it.
• we know across we set the state's budget we know across the<00:15:39.720> state<00:15:40.160>

Keywords: 1183, house

Transcript Highlights:

• We are calling for the following: pass ongoing EMS sustainability funding to stabilize the EMS system
• <00:03:17.120> the sustainability funding to stabilize the sustainability funding to stabilize
• They're stretched in terms of managing their budgets.
• <00:15:18.000> They're terms of managing their budgets.
• They're terms of managing their budgets.

Keywords: 919, house, all

Summary: The meeting focused on the financial and workforce crisis facing Minnesota emergency medical services, especially ground ambulance providers in rural areas. Michael Johnson of the Minnesota Ambulance Association said EMS serves more than 600,000 Minnesotans a year and argued that reimbursement rates do not cover the cost of readiness, staffing, and 24/7 response. He and others called for ongoing EMS sustainability funding of about $50 million, higher Medicaid reimbursement, and continued support for EMT/paramedic scholarships, first responder training, and high school EMS programs. Senator Grant Hoschild and Representative Jeff Backer echoed the urgency, describing EMS as a moral imperative and emphasizing that rural communities cannot wait for ambulances when lives are at risk. Backer, who also volunteers as an EMT, described staffing shortages, reliance on volunteers, and a recent cardiac arrest response to illustrate the importance of local EMS coverage. Becca Hitch of PUM Area EMS said rural services are paid only when patients are transported, not for responding or treating on scene, and that one-time aid helped but did not solve underlying deficits. Bradley Peterson of the Coalition of Greater Minnesota Cities said local governments that hold ambulance licenses are being forced to absorb unrecovered costs through property taxes, and that state support is needed to prevent service failures and rising local burdens. In response to questions, speakers said a 2023 statewide study found about $120 million in need, with roughly half tied to operational deficits and half to volunteer support; last year’s aid included about $24 million for rural services and some improvements in volunteer call pay and equipment needs. They also discussed a proposed 10% Medicaid increase, possible special tax district ideas, and the need to target any new funding toward rural services most at risk.

Transcript Highlights:

• Budget cuts at the state level are impactful on the work we do.
• looks like as we enter the supplemental budget year and when we enter the biennial budget year in 2027
• This last session, integrated planning grants did not get funded because of budget constraints.
• or, a couple years ago, to the transportation budget.
• So their stability and their ability to... Ratepayer population.

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• It provides the centers with their original base funding from the last budget cycle of $311,000 each
• <00:03:03.159> cycle institutions and the last budget cycle institutions and the last budget
• The base budget is $6 million for the fiscal year 2026-27 biennium. Okay, thank you, Mr. Pinto.
• , this is such a good investment for the people of our state, for our budget.
• , this is such a good investment for the people of our state, for our budget.

Keywords: 1183, house

Transcript Highlights:

• It would also impact our county budget in Rio Arriba County.
• Small businesses know how to budget for incremental costs year to year.
• I haven’t seen any small business that can budget for a wildfire or a flood.
• Families who are stretched then need stability and predictability.
• Clear Horizons helps provide that stability.

Bills: SB12, SB36, SB92, SB120, SB133, SB151, SB18, SB96

Keywords: tax credit, physician, healthcare, income tax, rural health, quantum technology, infrastructure, economic development, New Mexico, corporate tax, research and development, innovation, affordable housing, gross receipts tax, tax deduction, construction materials, multifamily housing, low income, journalism, local news

Transcript Highlights:

• budget.
• budget.
• So one of my goals coming in is fiscal stability for the State Bar and budget stability.
• So one of my goals coming in is fiscal stability for the State Bar and budget stability.
• We went through the budget on personal service and contracts, reduced the budget by $3 million.

Keywords: 987, senate, all

Summary: The Senate Rules Committee first established a quorum and then approved several non-appearing gubernatorial appointments, including Rick Simpson to the Commission on Teacher Credentialing and Trinidad Solis, M.D. and Gerald Talbert, M.D. to the Medical Board of California. The committee also approved reference of bills to committees and floor acknowledgments, with all of those items receiving unanimous 5-0 votes. The main public business was the confirmation hearing for George Cardona, reappointed as Chief Trial Counsel of the State Bar of California. Cardona described reforms made in response to the Girardi scandal, including stronger conflict-of-interest and gift rules, improved auditing and investigative procedures, efforts to reduce discipline disparities, and steps to address a growing backlog amid staffing vacancies and rising complaints. Senators questioned him about Girardi-related safeguards, backlog and funding pressures, discipline disparities affecting Black and Latino attorneys, unauthorized practice of law by notarios, and the State Bar’s use of AI; public witnesses from the State Bar, SEIU Local 1000, and others testified in support. The committee advanced Cardona’s appointment to the full Senate on a 3-1 vote, with Senator Jones withholding support. The committee then heard Laura Enderton Speed’s confirmation as Executive Director of the State Bar. She emphasized fiscal stability, public trust, and operational improvements, and said the Bar is addressing the troubled February 2025 remote bar exam through audits, internal investigations, and a forthcoming recommendation to the Supreme Court on the exam’s future. Senators asked about the budget deficit, the bar exam failures, conflict-of-interest safeguards after Girardi, and how the Bar is preparing for future fee and staffing pressures. Supporters from the State Bar Board of Trustees, SEIU Local 1000, the California Defense Counsel, and a colleague testified in favor, and the committee approved her appointment to the full Senate on a 5-0 vote. The meeting concluded with thanks and a farewell to Senator Jones, who was leaving the committee, followed by a cake presentation and adjournment of the public portion.

Transcript Highlights:

• First up, we have Julie Tonis, budget director. Welcome.
• every year we meet with every budgeting every year we meet with every budgeting unit<00:02:56.599
• process and Associated annual budget process and Associated budget<00:04:57.800> entry<00:04:
• c> our<00:10:05.279> County almost 23% of our budget from our County almost 23% of our budget
• <00:20:43.799> of resources and having the stability of resources and having the stability

Keywords: 1187, senate, all

Transcript Highlights:

• > will The Legislative Budget Office will The Legislative Budget Office will compile<00:09:02.720
• has<00:40:11.520> to<00:40:11.720> adjust Our budget per month has to adjust Our budget
• budget, wages or health care." budget, wages or health care."
• , in this past budget, in the supplemental budget.
• It's stability for our school districts. It's stability for our school districts.

Bills: HF3119

Keywords: teacher compensation, educational staff, unlicensed staff, minimum wage, inflation adjustment, education finance, 1183, house

Transcript Highlights:

• It's not part of the typical budget that we have on an annual basis.
• This is just to correct their budget.
• It's also to correct that budget. And C is a request from ASU Beebe.
• We feel that it's stabilized.
• We feel that it's stabilized.

Summary: The committee met to review a large slate of fiscal year 2026 and 2027 appropriation, transfer, and continuation requests across multiple sections. Early items included temporary appropriations for agencies such as Health, DHS, Education, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, and Game and Fish, covering items like maternal health outreach, energy assistance repayments, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim reparations, aviation grants, conservation incentives, and emergency tower maintenance. Members asked questions on several items, including DHS aging carry-forward funds and Treasury custodial banking fees tied to COVID-era balances; the committee also approved a disclosure by the chair on the Game and Fish-related item before voting to approve the section. The committee then approved continuation requests, CARES Act and ARPA reallocations, and federal grant appropriations. Notable discussion included the Boonville developmental disability project, ALIGN program reallocations at several universities, a small business technical assistance grant at UA Little Rock, and a Department of Public Safety highway safety grant, for which members requested more detail on operating expenses and professional fees. Additional approvals covered a transfer to the Merit Teacher Incentive program, restricted reserve fund transfers for military medical command and university projects, and a state central services deduction held at 2%. The Department of Commerce also received approval for a reallocation of positions and spending authority tied to its organizational realignment. Later sections included shared technology and higher education transfers, cash fund appropriations for school Medicaid reimbursements, corrections, youth mental health, narcotics detection canines, bike safety equipment, a state motor pool pilot, and law enforcement safety costs. The committee also reviewed budget classification transfers, including a Governor’s Office legal fee transfer related to a California lawsuit, and heard explanations about E-Rate reimbursements affecting the Office of State Technology. Members asked about VOCA funding levels for crime victim services and about the National Security Grant Program for nonprofits and faith-based organizations; officials said federal funding had declined from prior highs but appeared to have stabilized, and that the nonprofit security grant is an annual federal program. The meeting concluded with review of pay plan requests, DHS overtime funding for child protection caseloads, and a year-end adjustment request allowing DFA to make up to $1 million in transfers to close the books, after which the committee adjourned.

Transcript Highlights:

• ’s Budget.
• In last year's budget?
• cycle versus the current budget cycle, which... ...budget cycle versus the current budget cycle, which
• You'll probably have more in the full budget committee, but across the budget overall, the May Revision
• been built into their budget.

Keywords: 988, house, all

Summary: The committee first took up the May Revision update on Proposition 98 and the school rainy-day fund. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with lower average daily attendance projections offsetting some of the revenue gains. Finance also described a reduced $3.9 billion settle-up proposal, increased deposits into the Public School System Stabilization Account, and an ending reserve balance of about $10.3 billion. The LAO said the revenue and LCFF adjustments were reasonable, but urged the Legislature to be cautious about delaying settle-up payments and to consider more budget resiliency, including larger cushions or other tools to protect ongoing programs. Members then questioned the administration and LAO about the size of the settle-up, the rationale for the reserve deposit, declining enrollment, and how lower attendance is creating savings that can be redirected to other school priorities. The LAO said the May Revision’s mix of one-time and ongoing spending was generally reasonable but recommended keeping a strong cushion and considering alternatives such as advance payments or pension-related savings. Questions also focused on how the May Revision’s funding mix affects districts if revenues weaken, and on the treatment of special education, discretionary block grants, and paid family leave costs for LEAs and community colleges. The committee next heard the community colleges portion of the budget. Finance described a higher SCFF COLA, increased apportionment costs, a student support block grant, deferred maintenance, Common Cloud, Calbright, credit for prior learning, and a one-time adult learner demonstration project. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the SCFF growth formula, and a COLA for Student Equity and Achievement. The LAO recommended funding the statutory COLA increase, noted a $52 million current-year apportionment shortfall not yet included in the May Revision, and suggested the Legislature could instead direct some funds to enrollment growth, categorical COLAs, or one-time uses. Members also clarified how COLA and hold-harmless rules apply to different community college districts. Finally, the committee reviewed the proposed state implementation of the federal Workforce Pell program. Finance proposed one-time funding for the Student Aid Commission and Cradle to Career data work, plus trailer bill changes to set up state approval of eligible programs. CSAC said the program is promising but highly complex, with new federal rules just released and significant data, regulatory, and systems work still needed; it said the state will not be ready by July 1 and that ongoing funding will likely be necessary. The LAO agreed that implementation will require careful trailer bill language and noted that ongoing administrative costs remain unresolved. Members asked about other states’ approaches and the practical effect on short-term workforce programs in California.

Transcript Highlights:

• We continue to try to stabilize our prices because most of our families can't afford lake shore homes
• We continue to try to stabilize our prices because most of our families can't afford lake shore homes
• We continue to try to stabilize our prices because most of our families can't afford lake shore homes
• We continue to try to stabilize our prices because most of our families can't afford lake shore homes
• > and<00:57:27.280> the about the Imp on local budgets and the about the Imp on local budgets

Bills: HF1359, HF1829, HF290, HF1933, HF926

Keywords: solid waste management, resource management account, environmental fund, taxation, Minnesota statutes, homestead, property tax, classification, disability, resort properties, recreational use, commercial property, tax refund, estimated tax, interest on refunds, income tax, corporate franchise tax, S corporation, partnership, corporation

Transcript Highlights:

• A little bit more on the budget in a moment.
• The framework of a budget is... There is a budget deal in place.
• The framework of a budget is in place for a $60.75 billion budget as introduced.
• As the Governor's budget was introduced, that will be the final budget number on the spend.
• On top of the 6%, they're already being asked to stabilize a system which isn't stabilized.

Keywords: 1146, all

Transcript Highlights:

• So that's the fiscal year 2027 budget.
• We also saw one budget that was nominally reduced from the budget signed by the governor the year before
• budget increases spending by 3.8%.
• signed to the FY27 budget signed.
• Now, under the governor's budget.

Keywords: 995, all

Summary: The Special Joint Committee on Initiative Petitions held a public hearing on two proposed ballot initiatives: one to reduce the state personal income tax rate from 5% to 4% over three years, and another to revise the state’s tax collection cap/62F process so it would be based on prior-year collections plus wage growth and include surtax revenue. The committee chair and House co-chair outlined the hearing process, and the first witness was Doug Howgate of the Massachusetts Taxpayer Foundation, who testified as the committee’s subject-matter expert on both measures. He said the income tax proposal would lower taxes broadly but would reduce state revenue by about $5.4 billion when fully implemented, with an estimated $800 million hit in FY27, and he discussed possible effects on competitiveness, taxpayer savings, and public finances. On the 62F proposal, he said the revised cap would make refunds more likely, could have produced several large refunds in recent years, and would reduce stabilization fund deposits and constrain recovery after recessions. Committee members questioned Howgate about competitiveness, outmigration, prior tax ballot measures, spending growth, MassHealth, and the interaction between the income tax and surtax. He emphasized that taxes are only one part of the state’s overall competitiveness and that housing, public services, and other factors also matter. He also noted that the surtax is constitutionally restricted but can still support ongoing spending choices. After his testimony, the committee moved to the proponents’ panel. Proponents of both initiatives, including representatives from Taxpayers for an Affordable Massachusetts, the National Federation of Independent Business, Pioneer Institute, and the Mass Opportunity Alliance, argued that the measures would improve affordability, help retain residents and businesses, and support job growth. They cited polling support, outmigration, small-business reinvestment, and comparisons to lower-tax states such as North Carolina. Their economist, Rebecca Paxton, said her model showed smaller revenue losses than critics claim and projected that the revised revenue cap would not create additional annual revenue losses while producing more regular taxpayer refunds. Committee members pressed the panel on competitiveness, prior ballot initiative implementation, and whether the measures would actually address broader affordability pressures; the hearing ended with the committee continuing to take questions from the proponents.

Transcript Highlights:

• We need to stabilize and grow creative economy businesses.
• But this sector is not just those big-budget projects.
• And at the end of the day, this is almost a $350 billion budget.
• And the budget asks right now that we're asking for is a total of $66 million.
• Please give our budget request. ...23% completion rate.

Summary: The Joint Committee on the Arts held an informational hearing on California’s first sector-specific creative economy strategic plan, “California’s Future Is Creative,” developed under AB 127 and related legislation. Chair Allen framed the plan as a response to California’s large but vulnerable creative economy, citing workforce losses, federal funding headwinds, and the need to support artists, cultural organizations, public media, museums, cultural districts, and film/TV production. He also highlighted budget asks including support for California Humanities, museums, public media, cultural districts, a post-production incentive proposal (AB 2319), and funding to implement the strategic plan. California Arts Council Director Danielle Brazel, Institute for the Future’s Rachel Hatch, CDE’s Allison Frenzel, and CWDB’s Michael Weoff described the planning process, which included a 30-plus-member work group, interagency coordination, and a phased approach from framework development to implementation and evaluation. They identified major forces shaping the sector over the next decade, including AI, climate disruption, affordability, access to capital, and social cohesion, and outlined six action areas: workforce preparation, business stabilization, cultural identity/tourism, cross-sector incentives, ROI/data tracking, and state capacity/infrastructure. Members and panelists repeatedly emphasized that the plan must be resourced and integrated across agencies rather than left siloed. A second panel of practitioners and advocates focused on workforce pathways and local implementation. Ricarlo Handy described the Handy Foundation’s registered apprenticeship pipeline into film and TV jobs and argued that current data systems undercount gig, 1099, and LLC-based creative work. Joanna Reynolds discussed Arts for LA’s Creative Jobs Collective, which aims to create 10,000 living-wage creative jobs in Los Angeles County by 2030, while Alejandro Gutierrez Chavez urged embedding artists in health, aging, and behavioral health systems as community problem-solvers. Roxanne Messina Kaptur spoke about the need to normalize arts careers and expand residency and school-based models. Senator Rubio, who joined later, shared her own arts and teaching background, supported arts access in schools and small theaters, and raised concerns about AI, asking how schools and educators can adapt. In the final panel, Rebecca Ratzkin reported on 26 statewide town halls with more than 1,100 attendees, which confirmed support for the plan but also highlighted needs for better information access, new financial models, stronger definitions and data, and more partnerships. Julie Baker of California for the Arts and California Arts Advocates urged sustained public funding, saying the plan is actionable only if the Legislature and administration provide resources, including increased California Arts Council funding and support for implementation. No formal votes were taken; the hearing was informational and concluded with calls for continued legislative and cross-agency collaboration.

Transcript Highlights:

• It's based on a Congressional Budget Office report.
• And then historically, general fund and sometimes budget stabilization account are used as fund sources
• So reversions were relatively close to what was assumed in the budget.
• Row five is the rainy day fund, the budget stabilization account, and row six is just the combination
• We need these for water supply budgets and planning.

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• <00:19:51.520> for office as uh they create the budget for office as uh they create the budget
• budget request.
• budget request.
• budget request.
• > received<01:42:25.199> $40 last budget session, we received $40 last budget session,

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:05 Approval of Minutes 00:01:48 Welcome New Members 00:02:03 Information Items 00:02:35 Review of Executive Branch Agency Plans 00:03:33 A. Cabinet for Health and Family Services 00:04:00 B. Kentucky Department of Education 00:17:03 C. Education and Labor Cabinet 00:29:33 D. Energy and Environment Cabinet 00:42:38 E. Finance and Administration Cabinet 0:53:30 F. Justice and Public Safety Cabinet 01:13:28 G. Personnel Cabinet 01:31:04 H. School Facilities Construction Commission 01:41:39, 958, all

Summary: The meeting was the first of the year for the Capital Planning Advisory Board. Members were called, a quorum was confirmed, new co-chairs and members were welcomed, and the board approved the prior year’s meeting minutes. The chair also reviewed the capital planning timeline, packet organization, and the list of agencies that submitted plans but would not testify. The Cabinet for Health and Family Services presented first, outlining priorities centered on public safety, protecting existing infrastructure, preventive maintenance, and improving service delivery. Its major requests included a $21 million maintenance pool for 14 campuses and 175 buildings, phase 2 construction funding for a new public health laboratory, an 18-bed psychiatric hospital for children and adolescents with severe mental health needs, and several projects at Western State Hospital, Western State Nursing Facility, Hazlewood, and Oakwood. Members asked about the youth facility’s relationship to a separate DJJ project, vacant buildings, the high per-bed cost of the children’s hospital, and how the cabinet determined the need for the youth facility. CHFS said the youth project would be a separate facility serving high-acuity youth, the cost reflected the specialized nature of the unit and an 18-bed cap, and the broader youth plan also includes prevention, in-home services, and coordination across agencies. The Kentucky Department of Education then described projects for its three state-operated facilities: the Kentucky School for the Deaf, the Kentucky School for the Blind, and the FFA leadership training center. It requested additional funding for the FFA classroom and activity building after bids came in higher than expected, plus funding for a new education finance application system to support SEEK budgeting. Other priorities included a maintenance pool, FFA pool renovation, electrical upgrades, campus education enhancements, lighting improvements, safety and security work, door and window replacements, and HVAC maintenance. Members asked about student outcomes, the size of the FFA pool, and construction cost assumptions; the department said it tracks students through the schools and short-course programs, the pool size figure may have been a typo, and current construction estimates are being adjusted upward because of inflation and supply-chain pressures. The Education and Labor Cabinet began its presentation with 12 priority projects, including a state labor exchange system to connect job seekers and employers, renovation of the McDow Vocational Rehabilitation Center, and a new adult education and family literacy management information system. The cabinet said the labor exchange would help match workers with employers at no cost, while the McDow renovation was needed because the 30-year-old facility has safety and code concerns. The adult education system was described as outdated and lacking adequate case-management and tracking capabilities.