Transcript Highlights:

• losses coming from the federal government's sustained attack on federally funded research projects.
• losses coming from the federal government's sustained attack on federally funded research projects.
• That's one project.
• projects.
• One of my recently impacted federal grants has been supporting an international project office that coordinates

Committee: Joint Joint Committee on Economic Development and Emerging Technologies

Summary: The committee on Economic Development held a hearing on the DRIVE Act, a proposal to invest $400 million in Massachusetts research and innovation without new taxes. Governor Healey and administration officials said the bill would direct $200 million to public higher education research and regional partnerships and $200 million to a research funding pool for hospitals, universities, and other institutions, with the goal of retaining talent, leveraging private and philanthropic dollars, and offsetting major federal R&D cuts. They argued that research is a core economic engine for the state, supporting jobs across labs, construction, services, and surrounding businesses, and said the bill would help protect the Commonwealth’s tax base and competitiveness during a period of federal uncertainty and cuts to SNAP, Medicaid, and other programs. Committee members raised concerns about whether Fair Share surtax dollars should instead be used for K-12 and other community needs, whether the proposal is enough given the scale of lost federal grants, and how the money would be allocated. The governor responded that the funds are one-time surplus dollars, that most surtax revenue already supports education, and that the bill is meant as a bridge to stabilize public higher education and research. She also said the legislation includes a review board and could support a revolving or matched-fund approach in some cases. Several members pressed for more detail on selection criteria, future funding, and whether private companies and large endowments should contribute more. University of Massachusetts leaders and researchers testified that federal grant cancellations and delays are already causing layoffs, furloughs, rescinded admissions, and lost research capacity. UMass officials said the bill would help preserve faculty, postdocs, graduate students, and research programs in medicine, climate science, marine science, Braille instruction, and AI decision-making. They emphasized that the funding should be merit-based and that the state needs to act quickly to prevent talent from leaving Massachusetts. Business, labor, and industry groups, including MassBio, the Massachusetts Taxpayers Foundation, AIM, the AFL-CIO, and Building Trades, supported the bill, saying it would protect jobs, sustain the innovation ecosystem, and reinforce Massachusetts’ national leadership in research and life sciences. No vote was taken in the hearing.

Transcript Highlights:

• I wonder if any of you can speak to the federal funding issue.
• also completing a similar project at the moment.
• leverages federal opportunities.
• WSDOT may use complete streets project funds to participate in local or tribal system projects and construct
• Complete streets projects provide similar value.

Summary: The House Transportation Committee met on February 18 and heard several Senate transportation bills, then announced it would caucus after the public hearings. Engrossed Senate Bill 5081, concerning unattended motor vehicles and remote starter systems, was briefly introduced and described as having no fiscal impact; the sponsor framed it as a public-safety and anti-theft measure, but no substantive testimony followed before the hearing was closed. The committee then heard Engrossed Substitute Senate Bill 5203 on wildlife habitat connectivity and safe wildlife crossings, which would require WSDOT and WDFW to develop and update a statewide connectivity strategy, create dedicated wildlife corridors and crossings accounts, and report regularly to the legislature. Supporters emphasized reduced wildlife-vehicle collisions, better habitat connectivity, and access to federal matching funds, while opponents from southwest Washington argued the bill lacked local landowner and county input and could push wolves or other wildlife into agricultural areas. No vote was taken. The committee also heard Engrossed Senate Bill 5705, which would double penalties for using a personal electronic device while driving in school, playground, and crosswalk speed zones and direct the additional revenue to school zone safety accounts. Testimony from the Traffic Safety Commission and the sponsor stressed rising distracted-driving fatalities, the vulnerability of children and pedestrians, and the need for stronger deterrence; members asked about messaging, enforcement, and how the new penalties would be used. Finally, Engrossed Senate Bill 5581 was heard, a broad active transportation and complete streets bill that would update roundabout and crosswalk definitions, integrate shared-use paths into highway planning, and allow WSDOT to use local or tribal facilities as mitigation when they provide equal or better access. Supporters from transportation advocacy groups and local governments said it would improve safety and clarify existing law, while one Lake Forest Park official warned that complete streets mandates can create unfunded costs that delay needed maintenance. The committee closed public testimony on all bills and adjourned without taking final action.

Transcript Highlights:

• The first project is the Electronic Adjudication Management System modernization project with the Division
• But it's my understanding the issue with these projects is that you have the resources, but the projects
• , five projects that we have.
• So we receive the federal—I mean— So, we received the federal allocation.
• And so that federal funding is—we have passed— So that federal funding is passed through to some recipients

Summary: The Senate Budget Subcommittee No. 5 held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department described funding for EDD Next document management work, updated UI loan interest costs, disability insurance and paid family leave benefit increases, WIOA adjustments, UI and school employee benefit changes, an EMT training reappropriation, and a technical correction tied to an EDD Next reversion. PERB discussed reduced funding requests for AB 288 due to litigation and a proposal to implement AB 1 covering legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language requiring electronic payment of employer assessments and removing a salary cap for the DWC administrative director. CalHR proposed consolidating employee assistance services into a statewide contract with enhanced support for first responders, and CalPERS and CalSTRS presented budget adjustments tied to investment costs, state contributions, and benefit overpayments. Members focused heavily on the unemployment insurance debt and interest payments, asking why the administration had no concrete plan to pay down principal. Finance and LAO explained that the state’s UI tax structure has long been insufficient and that any long-term solution would need to address both the outstanding federal loan and the structural imbalance in employer taxes. Questions also centered on EDD Next costs and timelines, with the chair asking for clearer long-term project cost estimates and Finance noting that future maintenance and operations costs will continue after implementation. On DIR’s emerging technologies unit, members asked whether it would address AI-driven workplace harms; DIR said the unit would focus on physical workplace safety issues involving AI, robotics, autonomous equipment, and related guardrails, while LAO noted broader labor-practice questions would likely fall outside Cal/OSHA’s scope. In the CalPERS discussion, members raised concerns about transparency in private equity and external management fees, while CalPERS said higher fees reflect a strategy of greater private-market and active-management exposure and are offset by higher net returns. Members urged more information on specific investments and future reporting. For CalSTRS, Finance presented routine contribution and overpayment adjustments, but members also raised broader transparency concerns that CalSTRS staff said they would follow up on separately. Public comment in Part A was dominated by strong support for an immigrant worker emergency relief fund, along with support for apprenticeship and workforce proposals and PERB staffing. The chair and members said they would follow up on where the immigrant relief proposal should be considered, noting it may belong in another policy area. The hearing then moved into Part B with an overview of Judicial Branch-related May Revision items, including court interpreter funding, appellate court security, workload cap changes, lactation room implementation delays, and a reduction to the state court facility construction backfill.

Transcript Highlights:

• Those are the original larger projects authorized in 2022, and the projects are listed out in the bill
• Those are the original larger projects authorized in 2022, and the projects are listed out in the bill
• The city awarded the project in January to meet timelines associated with the secured federal funds.
• Because the project is a local project rather than a WSDOT project, we believe the funds would need to
• The project improves emergency response time. The project will increase as our campus grows.

Summary: The Senate Transportation Committee held public hearings on three bills: SB 6225, a proposed substitute bond bill authorizing transportation funding bonds; SB 6005, the proposed substitute supplemental transportation budget; and SB 6354, a bill to expand access to electric vehicles through limited direct sales by qualifying EV-only manufacturers and changes to the documentary service fee. Staff explained that SB 6225 would authorize $1.1 billion in general obligation bonds, an additional $400 million for selected Move Ahead Washington highway projects, a $500 million increase in SR 520 bond authority, and the expiration of some older unused bond authorizations. For SB 6005, staff described a $17.5 billion supplemental budget with $1.5 billion in new funding, including reappropriations, preservation and maintenance spending, ferry investments, Climate Commitment Act-related adjustments, and a six-year balanced plan through 2031. For SB 6354, staff outlined the direct-sales framework for qualifying EV manufacturers, dealer licensing requirements, penalties for violations, and a fee increase that would direct revenue to EV rebates and multimodal transportation. Testimony on the budget and bond bills was broadly supportive from transit, local government, labor, construction, ports, and climate advocates, who praised preservation funding, ferry investments, safety programs, EV charging, rail electrification, and flood-response or local project funding. Several witnesses asked for specific project or account changes, including support for Skagit Transit, Day Road and Poplar Way bridge-related funding, Spokane TMC operating support, Kent corridor funding, and additional rail capital projects. Some speakers also urged more Climate Commitment Act funding for EV rebates, charging, and rail electrification, while others warned against deeper cuts to local programs and stressed the need for long-term preservation and bonding to stabilize the system. Testimony on SB 6354 was sharply divided. Rivian, Lucid, and several Washington auto dealers supported the bill as a compromise that would allow limited direct sales for EV-only manufacturers while preserving franchise protections and generating revenue for EV rebates. Climate advocates supported the bill as a way to accelerate EV adoption and asked that more of the fee revenue go to instant rebates for low-income buyers. In opposition, the Alliance for Automotive Innovation and Honda argued the bill creates unequal rules, weakens the franchise system, and was not the product of a true compromise. The committee announced that SB 6225 and SB 6005 would be in executive session Thursday at 8 a.m., with amendments due by noon the prior day, while SB 6354 would be scheduled for executive action later.

Transcript Highlights:

• project comes in.
• And whoever had a project that needed it would submit their project.
• Larger projects.
• Just a few weeks ago, my own lab felt those cuts directly when a five-year federally funded project on
• Another project for folks to know about is a project up in Butte County.

Committee: Senate Natural Resources and Water

Summary: The committee first heard SB 1135, which would reestablish the California Wildlife Coexistence Program to promote nonlethal human-wildlife conflict reduction and support coexistence efforts for species such as wolves, bears, and mountain lions. Supporters, including wildlife groups and local government representatives, said the prior program was effective and that proactive tools like fladry, guardian animals, deterrents, reporting, and outreach reduce conflicts and costs. Ranching and agricultural groups were opposed unless amended, saying they supported the concept but wanted changes to the wolf-livestock compensation program, including clearer practicability standards, protection of compensation funds, and more flexibility on nonlethal requirements. The bill was moved to Appropriations on a 2-0 vote, with the measure left on call. The committee then took up SB 1085, which would preserve water supply assessments for large development projects even when those projects are exempt from CEQA, so local agencies still receive information about whether sufficient water exists for the project. The author and sponsor argued the bill would keep water planning and land use planning linked and prevent “paper water” problems, while the California Building Industry Association opposed it, warning it could add delay, uncertainty, and litigation risk for housing projects already subject to other water-supply safeguards. Members discussed how the bill would affect different local structures, especially cities that also operate their own water systems, and whether the assessment adds value in those cases. The bill passed 4-1 to Local Government and was left on call. SB 1270 was next, expanding the California wildfire mitigation home-hardening pilot beyond the original six counties to include four additional high-risk counties identified by Cal OES and Cal Fire, and directing future funding toward those areas. Supporters said the recent Los Angeles fires showed the need to broaden access to home-hardening assistance, while members discussed whether the program should remain geographically targeted or be made available statewide based on need. The bill was amended in committee and passed 5-0 to Emergency Management, left on call. Finally, the committee heard SB 895, a major proposal to place a $23 billion bond on the ballot to create a California Foundation for Science and Health Research and stabilize scientific research funding in the state. The author, UC, UAW, and many research, labor, health, and university groups supported the measure, arguing that federal cuts and instability threaten California’s research workforce, innovation, and economy. Some members raised concerns about the size of the bond and about political issues involving one sponsor, but the author said the foundation would operate under California law and the bill is intended to keep science funding open and collaborative. The bill was moved out of committee on a 5-0 vote and left on call.

Transcript Highlights:

• as many of these clean water projects or potable water projects are being finished Clean water projects
• When we talked about a date, we talked about projects that had been cut by the federal government prior
• I think that's the All True project.
• And I think this acknowledges that state hospital is not just a building project, but a building project
• Federal funds? SIF funds? Funds, federal funds, SIF funds.

Bills: SB2015

Committee: Senate Appropriations - Human Resources Division

Summary: The Senate Appropriations Human Resources Division met with all members present and took up several bills, focusing most of the discussion on SB 1577 and SB 1619, along with a detailed review of the HHS budget bill draft. On SB 1577, Senator Magrum explained that the bill was being revised to focus on wastewater rather than raw water, possibly shifting the Washburn project to the Department of Water Resources so it could access matching funds, and potentially converting the bill into a line of credit if federal money is restored later. Members discussed whether to keep an emergency clause or instead use a date-based approach, and agreed the bill would likely be handled through the full committee and possibly reconsidered later. On SB 1619, Senator Davison said amendments were still being worked on, including changes requested by the Bank of North Dakota, and the committee planned to hold it for possible amendment before full committee consideration. The bulk of the meeting was a section-by-section review of the HHS appropriations bill draft. Members discussed one-time funding items such as technology projects, child care programs, housing programs, behavioral health facility grants, infant and toddler care provider support, juvenile justice diversion, medical housing, and other public health and human services projects. Several adjustments were noted, including reductions or changes to IMD-related funding, incarcerated-person treatment funding, the child welfare technology project, and the provider rate increase. The committee also discussed the FTE block grant structure at length, with staff explaining that the apparent increase in positions reflected budgeting mechanics, zero-dollar “phantom” positions, and positions approved previously but not counted in the FTE total. Members raised concerns about transparency and whether the bill should list FTE numbers, but staff said the block grant was intended to give the department flexibility while quarterly reporting would provide oversight. Other topics included Medicaid expansion funding and provider reimbursement rules, the move toward certifying human service centers as certified community behavioral health clinics, a moratorium on new ICF beds, and studies or reports on Medicaid, obesity, disability services, truancy, and behavioral health facility grants. The committee also discussed removing or revising broad intent language in Section 31 so the department would report findings rather than implement changes without further legislative action. No final votes were taken in the transcript; instead, members agreed to make a few technical adjustments, continue reviewing the bill, and likely revisit it the next day before moving it to conference committee.

Transcript Highlights:

• We were counting on that federal money coming in to complete that critical flood control project, and
• Again, we're not seeing any of our projects come out of it.
• We were counting on that federal money coming in to complete that critical flood control project, and
• That's a lot of discussion about that at the federal... Level.
• Then they’ll be building and negotiating the projects.

Committee: House Technology, Economic Development, & Veterans

Summary: The committee held a work session focused on the effects of tariffs on Washington’s economy and agriculture. An OFM economist said tariffs are raising prices, reducing output and jobs, and lowering state revenue, with the most affected sectors including aerospace, food and beverage manufacturing, and agriculture. Members asked about newer trade deals, crop-specific impacts, inflation versus some deflationary effects in fuel, and whether the net employment effect was negative; the witness said retaliation by other countries largely eliminates any tariff benefits and that updated analysis would be needed as tariff rates change. Washington Department of Agriculture staff then described how import tariffs raise costs for farm inputs such as equipment, parts, packaging, and fertilizer, while export retaliation has hurt key markets, especially China and, in some sectors, Canada. They said Washington agriculture is highly export-dependent, with major exports including wheat, potatoes, apples, cherries, dairy, and wine, and noted that some growers support tariffs on competing imports because they see them as leveling the playing field. Commerce officials followed with an overview of small business export assistance, financing, business recruitment, and industry-sector support, emphasizing the importance of federal STEP funding, foreign consulting networks, and state efforts to attract investment and help businesses adapt to tariff pressures. The committee then heard a series of emergency management updates. The Military Department described 2025 disaster response, including the denied bomb cyclone disaster declaration, wildfire activity, and concerns that FEMA is shifting more responsibility and cost to states and locals, with possible reductions or restructuring of preparedness, mitigation, and disaster grants. Members discussed the need for a funded state disaster assistance framework, mitigation priorities such as unreinforced masonry and tsunami shelters, and language-access support. A cybersecurity briefing followed, outlining the state’s advisory committee, grant program, and plans for a volunteer cyber incident response team, with concerns about the loss of MS-ISAC funding and the need to preserve state matching funds. Finally, emergency management staff reviewed disaster resilience and tsunami preparedness, saying federal support is becoming less reliable while state programs face budget pressure. They highlighted mitigation grants, outreach, and planning work, including tsunami vertical evacuation structures and coastal evacuation mapping, and said Washington’s tsunami program depends heavily on NOAA and FEMA funding. The session concluded with a detailed update on World Cup and counter-drone planning, including federal security grants, fan zones, base camps, and the need for authority to mitigate unmanned aerial systems; members asked how local jurisdictions would participate and what mitigation tools might be used. No formal votes or legislative actions were taken.

Transcript Highlights:

• So HIF comes in and makes a federal project be able to come to fruition.
• And when you look at the federal rental assistance programs, the Section 8 voucher, the project-based
• We have several projects that she will take on, and one of them is project management of Project North
• or non-EOR projects.
• And so in all of these projects, whether you're looking at the projects north of the lake, the projects

Summary: The committee met as the Regulatory Division of the budget section and received updates on several Industrial Commission-related agencies and programs. Legislative Council first reviewed base budget materials, then the North Dakota Housing Finance Agency reported on its current appropriation and staffing, noting that its new FTEs were being filled gradually and that it remained largely funded through special and federal funds. Agency leaders described homeownership lending, loan servicing, and housing incentive fund activity, including below-market mortgage rates, down payment assistance, and a growing servicing portfolio that has increased workload but not yet required additional FTEs. Housing Finance also detailed use of the Housing Incentive Fund and homeless grant dollars. Officials said the multifamily HIF round drew more than $73 million in requests and awarded $25 million, while the single-family program supported rural development and community land trusts. Homeless grant funding was split between emergency shelter, prevention, and rapid rehousing, with performance-based scoring used to renew or reallocate awards. Members discussed housing affordability, aging households, rental assistance, and the need to coordinate housing and site-preparation messaging with Commerce. The agency asked that HIF, single-family, and homeless funding be maintained or increased in the next session. The Department of Mineral Resources then presented its budget and operations update. Staff said the agency was on track financially, had filled most of its new reclamation FTEs, and was not expecting major litigation costs beyond normal late-biennium invoices. The director reviewed agency initiatives including Project North Star IT modernization, organizational restructuring, succession planning, rulemaking, and implementation of the development incentive well tax program and critical minerals rules. He also discussed oil and gas activity, explaining that longer laterals, especially three- and four-mile wells and the first five-mile spacing case, are helping keep production relatively flat even as rig counts ease. Members asked about gas capture, hedging, break-even prices, and the effects of Iran and Venezuela on oil markets. The committee also heard about enhanced oil recovery grants and the Pipeline Authority. The EOR program’s $25 million appropriation was fully allocated to six projects, with total awards reaching about $45.1 million when other fund balances were included, subject to a possible 5% reduction if federal DOE money does not materialize. Officials said the projects are public, reimbursement-based, and will produce results over the next several years. Finally, the Pipeline Authority outlined natural gas transmission projects, including the imminent Bakken Express line and the proposed Bakken East project, which WBI was selected to advance after an Industrial Commission RFI process. The project is moving through open season, survey permission, and regulatory work, with in-service dates projected for 2029 and 2030.

Transcript Highlights:

• to leverage the fund a lot of projects to leverage the federal<00:11:48.240><c> funding</c><00:11:48.640
• The state match for the FAA projects was added, and as a result the federal portion is added, which is
• The state match for the FAA projects was added, and as a result the federal portion is added, which is
• The reason it depends is if there was a federal match needed to continue a project, the capital project
• You know, if they said we aren't going to have federal funds to do our project, could the CPOC move some

Committee: Senate Capital Budget

Transcript Highlights:

• I'm hoping federal may also contribute.
• We're seeing the increase on these projects.
• Water projects in a timely fashion.
• Texas 2036 projects that existing state and federal funding programs will cover roughly 25 percent of
• Could Senator Hinojosa's great project also be used as a water supply project?

Bills: HB3077 , HJR2 , HJR7 , HJR7

Committee: Senate Finance

Transcript Highlights:

• And back then, a lot of projects... Projects were done, several of them.
• Project Fund.
• We're going In construction projects, whether it's receiving federal dollars or obtaining a right-of-way
• It supplements another project of ours, but it's supplemental to a project.
• It's a local lead project.

Transcript Highlights:

• have routinely penalized in the scoring process for affordable housing projects.
• As a result, these projects are... ...of the means to travel long distances to jobs.
• Currently, farm worker projects have a difficult time receiving even 10 points.
• project is difficult to get across the finish line.
• We see firsthand that manufacturing projects are highly sensitive to upfront project economics.

Committee: House Revenue and Taxation

Transcript Highlights:

• It's what's called a beneficiary-pays project. So the water agencies... ...taxpayer-funded project.
• Our State Water Project... Our State Water Project, south of the Delta, needs help.
• A lot of these key federal...
• Project.
• those 20 projects are.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy convened for its first hearing and heard an overview from the Legislative Analyst’s Office and the Natural Resources Agency. The LAO emphasized California’s strong current revenues but warned of a structural budget problem, projected out-year deficits, and the need for a high bar on new spending. It generally supported the administration’s Proposition 4 spending plan as reasonable and consistent with bond requirements, while urging legislative oversight and caution about using special funds and adding ongoing commitments. Secretary Wade Crowfoot responded with an overview of climate, wildfire, water, coastal, and conservation challenges and highlighted progress under the Newsom administration, including clean energy growth, wildfire resilience investments, land conservation, tribal co-management, and outdoor access initiatives. He also discussed federal staffing cuts affecting California’s response capacity and said the state has had to fill gaps in flood forecasting, land management, and park access. Members then questioned the secretary about the Delta conveyance tunnel and broader water reliability issues. Crowfoot said the project remains important, is being pursued as a beneficiary-pays project, and is moving through the State Water Resources Control Board’s permitting process, while also stressing that it is only one part of a broader water strategy that includes levee strengthening, subsidence, groundwater storage, recycling, and conservation. Senators also raised concerns about permitting delays, invasive species, and the impact of position cuts on agency capacity; Crowfoot said streamlining is needed but that staffing remains essential. The committee then moved to the Department of Parks and Recreation, where Director Armando Quintero described the state park system, tribal agreements, wildfire and deferred maintenance work, and outdoor access programs such as the State Library Park Pass and Adventure Pass. The LAO recommended rejecting the proposed ongoing $6.75 million General Fund transfer for the library park pass, arguing it did not meet the high bar for new ongoing spending, but several senators strongly supported the program as a low-cost way to expand access. Members also pressed Parks on reservation system problems and campsite no-shows. Department staff said they are updating website guidance, working with the reservation vendor, and implementing new no-show and reservation-modification rules effective July 1, including penalties for repeated no-shows and immediate reopening of vacant sites. The committee then heard a low-cost accommodations proposal, which Parks said would fund planning and construction at several sites using Proposition 68, reimbursements, and donations; the LAO said it had no concerns. Finally, the new director of the Department of Fish and Wildlife, Megan Hurdle, introduced herself and outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 requests, including funding for salmon genetic tagging, hatchery repairs, and public access improvements. She said the department is focused on biodiversity, permitting streamlining, law enforcement, and human-wildlife conflict prevention, and noted that the agency is still updating its service-based budgeting analysis to identify gaps and priorities.

Transcript Highlights:

• and tribal government road projects.
• and tribal government road projects.
• grants across three... $145 million of discretionary federal grants across three projects that need
• There, it's a GRO project, but they're just initiating the first phase of their project.
• And now the road projects in that bond are out, and there are 17 projects... ...and now the road projects

Committee: House House Appropriations & Finance

Transcript Highlights:

• Dollars from the federal government.
• It includes project management fees and BI.
• So we we take we've taken on that IT project.
• It's got some projects that three projects.
• I have federally supported family services.

Transcript Highlights:

• The federal government will accept our audits of federal awards and financial statements, and our audits
• And pursuant to the Federal Single Audit Act, we audit the state's administration of the various federal
• Pursuant to the Federal Single Audit Act, a single audit is an audit of the non-federal entity's financial
• the federal government's March 31 deadline.
• And a major federal program is defined as one of the entities— A major federal program is defined as

Summary: The Joint Legislative Auditing Committee met to receive annual overviews of its oversight responsibilities and the work of the Auditor General and OPAGA. Committee staff reviewed the committee’s authority over state and local governments, enforcement of audit-report filing requirements, repeated audit findings, Transparency Florida reporting, and lobbying compensation audits. Auditor General Cheryl Norman described her office’s independence, audit standards, quality control, and major audit areas, including the state’s annual financial and single audits, school district and university audits, operational and performance audits, and attestation work. She also noted staffing shortages, recruitment efforts, and a request for carry-forward funds to study salaries. Members asked about whether audits can quantify recoverable dollars, how school district spending comparisons are handled, and how to raise concerns about DCF-related audits or a local city audit that has been pending for years. Norman said her office can quantify findings when possible, sometimes compares costs across districts in operational audits, and that members can bring specific concerns to the appropriate deputy auditor general or the committee. She also explained that citizen or local-government audit requests may require payment of audit costs. OPAGA Coordinator Kara Collins-Gomez outlined OPAGA’s role as a legislative research unit that conducts studies directed by law, the presiding officers, or the committee, and described its policy areas, methodologies, contract monitoring, and recurring statutory reports. Deputy Auditor General Matthew Tracy explained how to read operational audit reports, including findings, criteria, condition, cause, effect, recommendations, and management responses. Deputy Auditor General Greg Senators explained financial audit reports, including audit opinions, required supplementary information, internal control and compliance findings, federal program compliance, and management letters. The meeting concluded with thanks to the presenters and a motion to adjourn, which passed without objection.

Transcript Highlights:

• Now, subsequently there's like any IT project, same as a road project, you know.
• Now, subsequently, there's like any IT project, same as a road project, you know, I don't know.
• Now, subsequently, there's like any IT project, the same as a road project, you know. I don't know.
• The STAR project is a bolt-on project to the CAHPS project, and it helps us replace some functionality
• The STAR project is a bolt-on project to the CAHPS project, and it helps us replace some functionality

Bills: SB 1 , SB1

Committee: Senate Finance

Transcript Highlights:

• </c><00:03:38.879><c> Highway</c> federal funds from the Federal Highway federal funds from the Federal
• </c> project in the amount of $6.5 million. project in the amount of $6.5 million.
• </c> emergency projects requiring no action. emergency projects requiring no action.
• So, these particular projects are reallocation projects, so either the project couldn't get designed
• </c> is necessary to finance this project. is necessary to finance this project.

Summary: The Capital Projects and Bond Oversight Committee met on July 16 and approved the June meeting minutes. Members received six information items, including quarterly capital project status reports, notice that the committee did not approve a Kentucky Community and Technical College System fire academy maintenance building project, reports of upcoming school district debt issues, leasehold improvements, a Northern Kentucky University asset preservation revision, and prior debt issues from the School Facilities Construction Commission. The committee then heard five project reports from the Finance and Administration Cabinet. Three new projects were presented for action and approved: a $1.3 million White Haven rest area renovation in Paducah, a $6.5 million Boone County north- and southbound rest area remodel and expansion to add truck parking, and a $4.5 million Bluegrass Station Building 14 modernization project funded by a Department of the Army grant. Members asked several questions about the Boone County rest area project, including truck congestion, restroom capacity, staffing, and the need to keep the facility open during construction; Transportation staff explained the project is meant to expand parking and improve facilities. Two emergency projects were reported with no action required: an amended Fort Boonboro flood remediation project in Madison County and a Kentucky Horse Park emergency flood repair project. The committee also approved three new leases after hearing from the Division of Real Properties. The leases included Department of Corrections parking spaces in Louisville, a Kentucky State Police office and lab lease in Hopkins County, and an Education and Labor Cabinet lease in Kenton County that was negotiated at a lower rate. Members asked about lease terms and how local match or negotiated rates were set, and staff explained that lease lengths are generally set by lessors and that the Kenton County lease was reduced through direct negotiation to stay within budget. A separate lease modification for the Cabinet for Health and Family Services, involving reception-area renovations, was reported with no action required. Finally, the committee considered seven grant reallocations from the Kentucky Infrastructure Authority, including six Clean Water Program grants and one EKSF-related reallocation. Members questioned whether some flood-related water infrastructure work, especially an Olive Branch subdivision storage tank project, fit the intended purpose of the funding; staff explained the reallocations were needed to keep federal dollars from being returned and to move funds to eligible projects. The committee initially failed to approve the package on a 4-4 vote, but after a member noted a missed vote and changed to yes, the grants passed with favorable expression. The committee then began hearing three Kentucky Product Development Initiative grants for industrial site development in Russell County, Cumberland County, and Berea/Madison County, with members asking about match requirements, funding sources, and the scope of the projects; the transcript ends during the roll call on those grants.

Transcript Highlights:

• Chairman, Senator Sorvaag, future project funding estimate: that would be a combination of federal funding
• The funding sources for this project have involved federal monies, state monies, local monies.
• As for future projections, what do we project for next biennium?
• , as far as what projects... ...projects as far as what projects should we truly be funding on high or
• But at the federal level, we are required to give top priority to projects that address the most serious

Committee: Joint Water Topics Overview Committee

Summary: The Water Topics Overview Committee met to review several interim studies and receive updates from the Department of Water Resources. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and welcomed Representative Hansen to the committee. Staff then reported that the watershed management study and the stormwater/wastewater study had both satisfied the presentation requirements in their study directives, with no further required testimony unless members wanted additional information. The department’s main presentation focused on major water projects and agency operations. Reese Haas and staff updated members on the NAWS project, the Southwest Pipeline Project, Devils Lake outlet operations, low-head dam safety work, floodplain management repository implementation, data center water use, and the 2027 Water Development Plan. Members asked detailed questions about NAWS funding sources, remaining project costs, capacity concerns for All Seasons and other users, and whether current construction is being designed for future demand. The department said NAWS remains on track for substantial completion by October, that remaining NAWS funding will come from a mix of federal, state, and local sources, and that current construction is designed for ultimate capacity while some future components will be adjusted for increased demand. A large portion of the meeting was devoted to the department’s cash management, Resources Trust Fund revenues, carryover balances, and the State Water Commission’s cost-share program. The department reported $340.6 million in carryover remaining, explained that much of it is already obligated to long-term projects, and noted that oil price forecasts and stripper-well exemptions will affect future revenues. Members raised concerns about large carryovers, affordability for local sponsors, and whether the state should continue obligating money multiple bienniums ahead. The department said it is working with the commission on a revised prioritization framework, including high/moderate/low project categories and a two-tier pre-construction/construction approach, to better manage obligations and affordability. The committee also reviewed Deloitte’s finalized studies on regional governance/finance and cost-share policy. Deloitte presented options for Southwest, NAWS, and Red River governance, with stakeholders generally favoring keeping NAWS largely as is, using the current Southwest model with improvements, and pursuing a more structured governance option for Red River. On cost share, the department said Deloitte’s recommended package would cover projected needs through the 2030s, but would require policy changes such as lower percentages for some project types, a 25% replacement-project rate with a cap, and possible bonding or delayed reimbursement strategies. No votes were taken on these policy questions, and the chair indicated the committee would continue the discussion at future basin meetings and the September Water Topics meeting.

Transcript Highlights:

• We don't, you know, project that, but we rely on the projections that Moody's Analytics has for that.
• One of the projects is a two-year project, and the other one we anticipate to take three years to build
• The application we put in for that project was a 50% state match, 50% federal match.
• And then federal grants revenue.
• I do project that many of these districts that did qualify will continue to qualify into I do project

Committee: Joint Budget Section