Transcript Highlights:

• It can't increase rates for other customers, and that's something that's important that gets decided
• It can't increase rates for other customers, and that's something that's important that gets decided
• It can't increase rates for other customers, and that's something that's important that gets decided
• It can't increase rates for other customers, and that's something that's important that gets decided
• It can't increase rates for other customers, and that's something that's important that gets decided

Keywords: 912, senate, all

Summary: The joint Senate hearing focused primarily on SB 1201, a wildfire measure that would create a wildfire recovery fund and allow securitization for electric utilities. Hawaiian Electric strongly supported the bill, saying it would help protect customers, property owners, insurers, and the broader economy from future catastrophic wildfire liability while improving the utility’s credit profile and lowering financing costs. Support also came from DCCA Consumer Advocacy, the Attorney General’s office on written comments, Ulupono Initiative, Clearway Energy Group, IBEW Local 1260, Par Hawaii, KIUC, the Chamber of Commerce Hawaiʻi, Plus Power, and numerous organizations and individuals. Opponents or commenters raised concerns about the liability cap, victim compensation process, and fund structure, including the Hawaiʻi Association for Justice, the Hawaiʻi Regional Council of Carpenters, and the Hawaiʻi Insurance Council; Henry Curtis of Life of the Land supported the concept of a fund but questioned the catastrophe threshold and whether the fund would be empty without a prudency finding. Much of the discussion centered on whether the proposed fund would actually help restore Hawaiian Electric to investment grade, with senators comparing the proposal to California’s wildfire fund. Hawaiian Electric said the bill was only one part of a broader process, alongside physical risk reduction and settlement finalization, and argued that without the bill the utility would not regain investment grade. Senators also questioned the proposed $1 billion fund size, the fairness of ratepayer contributions versus shareholder contributions, and whether customers should pay for consulting and administrative costs; Hawaiian Electric said its proposed amendment would remove those consulting-related charges. The company also said the fund would accrue interest and, if unused, could be returned to customers, and that there would be replenishment and supplemental contribution mechanisms if the fund were exhausted. The Attorney General’s office said it still had further amendments to discuss, and the departments had not yet resolved where the fund should reside administratively, though Hawaiian Electric said it believed DCCA was the appropriate place but was open to alternatives. KIUC requested two amendments. No vote or final committee action was taken during the hearing, and the measure remained under discussion with questions and proposed amendments still outstanding.

Transcript Highlights:

• So, yes, increasing those salaries at least into a competitive rate so that we can compete with even.
• One of the largest ones being that we've seen insufficient rate increases in place. The...
• During COVID, we didn't have to do drastic rate increases, as Director Bock mentioned, because nobody
• on what happened as far as the rate increase is concerned.
• So, for example, if the budgets are tight and we're trying to do a rate increase, if the budgets are

Keywords: 916, all

Transcript Highlights:

• Based on the projected loan payment, we won't have to increase the rates over where they are now because
• That's the only reason I mentioned the other loan, is because we won't have to increase the rates because
• So there's no increase to the rates just because of this loan.
• And may I add that those funds and monies that will be distributed cannot be used for rate increases,
• For rate increases, and they cannot supplant anything that's currently in place.

Summary: The committee met with a quorum, opened with a prayer recognizing the death of Reverend Jesse Jackson, and then worked through a series of appropriation and transfer requests. In Section B, it approved a $273,000 temporary appropriation for the Department of Labor and Licensing. In Section C, it approved two Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation and $195 million for the State Broadband Office to support Arkansas BEAD broadband grants, including an extra help position. Members questioned the broadband awards, provider amendments, buildout timelines, accountability, and the status of unawarded locations; the broadband director said no provider had requested speed changes, awards would be monitored with milestone-based payments, and remaining locations would be addressed later as federal guidance is received. The committee also approved transfers in Section D, including $458,000 for the Department of Correction, $25 million for Department of Education programs such as declining enrollment and teacher incentive funding, and $229,000 for Shared Administrative Services project management support. In Section E, the committee considered a $4.7 million budget stabilization trust fund loan for the Office of State Technology to implement ServiceNow and related IT modernization, cybersecurity, and governance tools. Members pressed agency officials on repayment, cost savings, and whether the loan would simply roll over existing costs; officials said repayment would come through agency rates over a five-year period and that the new payment would be lower than the current loan being retired. The committee voted to give favorable advice to the Governor on the loan request. In Section F, the committee reviewed cash fund requests for wage and hour claims, unclaimed property, and a heritage grant; in Section G, it reviewed a $1.1 million federal grant to expand college and career coaching in rural districts; in Section H, it reviewed pay plan and performance fund requests totaling millions across multiple agencies; and in Section I, it reviewed budget manual formatting changes. The latter part of the meeting focused on reports, especially the Medicaid trust fund. DHS and DFA officials reported the fund balance had declined from prior years and was down to about $394 million after seven months, with further decline expected by year-end. Senators and representatives asked about the appropriate reserve level, the impact of pending Medicaid rules and legislation, FMAP changes, and whether additional funding would be needed in the upcoming budget. Officials said projections are updated regularly, more than 10 rule packages remain pending with CMS, and the governor and legislative leaders will discuss additional capital needs during budget development. Members also discussed the importance of balancing Medicaid spending with new federal funding and maintaining flexibility for critical areas such as labor and delivery. The committee then adjourned without further action on the reports.

Transcript Highlights:

• <01:25:10.800> increases bottom quarter uh of the rate increases bottom quarter uh of the
• I would say is that um you know our rate I would say is that um you know our rate increases<01:27
• did file a rate increase um um across did file a rate increase um um across all<01:35:52.719>
• Um so, I you know, in a rate increase.
• <01:44:37.760> next rates are planning to increase next rates are planning to increase next

Keywords: 912, senate, all

Summary: The joint informational briefing by the Health and Human Services and Commerce and Consumer Protection committees focused on projected impacts to Hawaii consumers from federal changes affecting Med-QUEST and the ACA marketplace, including the loss of ACA premium tax credits, OBVA/HR1-related Medicaid changes, immigrant eligibility restrictions, and new Medicaid work/community engagement requirements. Committee members noted the meeting was being streamed live and emphasized the need to explain potential coverage losses affecting a significant share of the state population. Med-QUEST administrators reported current enrollment at 390,766, about 27% of Hawaii’s population, and broke that down into major groups including roughly 128,000 ACA expansion adults and about 52,000 parent/caretaker relatives. They said the expansion adult population would be most affected by the new federal requirements, which will shorten renewal periods from 12 months to 6 months and impose community engagement rules beginning in late 2026 and 2027. They described the work requirement as 80 hours per month of work, community service, work program participation, or half-time education, with an income-based pathway tied to $580 per month at the federal minimum wage; they also noted a long list of exemptions, but said many details are still awaiting federal guidance and rulemaking. The administrators said federal changes to immigrant eligibility would eliminate Medicaid coverage for certain noncitizen categories, with an estimated 1,200 to 2,400 people affected, though about 200 may remain covered through a state-funded program for otherwise eligible individuals. They also said marketplace subsidies would no longer be available for some immigrants under 100% of the federal poverty level starting January 1, 2026, with further restrictions expected in 2027. For Hawaii overall, they estimated the new Medicaid work and renewal rules could push an additional 19,000 to 38,000 people into uninsured status, with another estimated 6,000 at risk from the six-month renewal process alone. Members asked about how exemptions would be determined, especially for medically frail and seriously mentally ill individuals, and administrators said they were still awaiting detailed federal rules and were working on data-matching and verification processes to reduce coverage losses.

Transcript Highlights:

• increased the other cost category by $3.8 thousand for telecommunications and DUI rates.
• premium rate increases and board-approved raises, resulting in a $178,800 or 22.2 percent increase.
• The remainder of their request is for $13,200 to cover IT and risk insurance rate increases budgeted
• a $22,300 or 1.2% increase in the other cost category for increased DOIT and GSD rates.
• Request included a 38.7 thousand personnel increase for raises and rate increases, 21.2 thousand increase

Transcript Highlights:

• Rate increases. Ms. Care services in the Medicaid program rate increases. Mr.
• The rate increases for personal care services were not in either recommendation from the executive or
• The rate increases for personal care services were not in either recommendation from the executive or
• There was a significant amount of discussion amongst the committee for increasing those rates for those
• It's about a 5% rate increase, and we've talked to the associations that represent those groups about

Keywords: 996, all

Transcript Highlights:

• The rest of them saw increases.
• The rest of them saw increases.
• The rates by the institutions.
• rate.
• Yeah, 4% to, yes, the rate increased by 4%. We didn't do any averaging based on that.

Summary: The Higher Education Funding Review Committee met to continue work on a draft higher education funding formula and related capital building fund changes. Lisa Johnson of the North Dakota University System updated the committee on the board’s developing policy for low-producing academic programs. She said the board is using a five-year rolling window, with thresholds of fewer than 10 undergraduate graduates or fewer than 5 graduate graduates, and that programs flagged in three consecutive review cycles would go to the board for review. Possible outcomes include continuation, continuation with modifications, inactivation, or termination. Members asked about how the policy would account for enrollment, program costs, workforce need, and programs that serve students outside their major. Johnson said the board would likely use an accompanying procedure to consider those factors. She also reported that about 200 programs could potentially be reviewed under current guidance, with 135 inactivated and 112 terminated, and said the process is intended to support quality and stewardship rather than simply cut programs. Jamie Wilkie then reported on the Capital Building Fund. He reviewed the fund’s history, matching requirements, and use for extraordinary repairs, deferred maintenance, and some legislatively authorized projects. He said about $334 million in state and matching dollars has been invested overall, with roughly 78.7% going to deferred maintenance and extraordinary repairs. Committee members pressed for updated information on how much deferred maintenance has actually been reduced, and several members said they wanted clearer reporting on the return on investment from new buildings versus repairs. NDSU representatives said the tier funding has helped significantly reduce deferred maintenance and allowed demolition and renovation work on campus. The committee also discussed the need for updated five-year facility plans and space-utilization information from the institutions. The committee then began a section-by-section review of a draft bill that would replace the current higher education funding formula with an FTE-based model and restructure the capital building fund. The draft would fund UND and NDSU differently from the other nine institutions, use fall enrollment rather than completed credits, add performance funding for completions in in-demand fields, create research incentives for UND and NDSU, and combine capital building fund tiers while changing matching requirements and eligible uses. Members raised concerns about the treatment of professional students, the use of CIP codes, incentives for waivers, and whether the formula should rely on more current data. The committee did not take final action on the draft during this meeting, but it continued detailed discussion and indicated more review would follow.

Transcript Highlights:

• Out-of-district placements are projected in our district to increase at a rate of approximately 4 to
• Out-of-district placements are projected in our district to increase at a rate of approximately 4 to
• Out-of-district placements are projected in our district to increase at a rate of approximately 4 to
• Out-of-district placements are projected in our district to increase at a rate of approximately 4 to
• rate if our towns do not want increase rate if our towns do not want increase do<04:20:44.279>

Keywords: 928, house, all

Summary: The hearing focused on HB 563, which would revise the education funding formula for pupils receiving special education services by replacing the current single special education amount with three differentiated categories. Representative Rick Ladd, the prime sponsor, said the bill largely tracks a House-passed version from the prior session with minor figure adjustments, and explained that the proposal uses projected FY26 amounts for three categories based on time in general education versus more intensive placements. He also noted that the bill does not address catastrophic aid directly, but that special education aid, CAT aid, and proration all remain issues for later work sessions. Ladd and supporters argued that weighted categories better reflect actual costs and are more sustainable than treating all IEPs the same. Representative Margaret Drye said the approach was one of the best ideas from the education funding subcommittee and urged the committee to support differentiated aid. Representative Ames asked how the category amounts were derived, and Ladd said Category A follows the FY26 base, Category B is a higher weight, and Category C is a still higher weight for more intensive services, though he acknowledged the exact multipliers were developed earlier and could be revisited. He also said the committee would continue discussing whether the weights are appropriate and how they interact with CAT aid. Testimony from Bonnie Dunham strongly opposed the bill. She argued that funding based on placement rather than actual service need would create incentives to move students into more restrictive settings, could stigmatize children with labels such as "Category C," and would undermine the least restrictive environment requirements under federal special education law. She described her son’s experience in inclusive settings as beneficial and said the bill would have penalized the district for serving him there. In response to questions, she said schools and parents should base funding on the child’s actual needs and costs, not on placement, and urged the committee to recommend the bill inexpedient to legislate.

Transcript Highlights:

• HB 5170 by Letterback, relating to increasing the minimum term of imprisonment by changing the eligibility
• HB 5173 by Dean, relating to the annual reports of the adoption of title insurance premium rates, is
• HB 5252 by Shaheen relates to the authority of a municipality to adopt, increase, or decrease the rate
• that exceeds the voter approval tax rate, is referred to the Committee on Ways and Means.
• that exceeds the voter approval rate is approved for the Committee on Ways and Means.

Keywords: 1184, house, all

Transcript Highlights:

• So, on the replacement rate, both. Provide workers with a replacement rate of over 100%.
• And had a cash flow rate of negative 2.1%.
• We got an increase in 22; we got another increase in 23. We're on a pathway.
• . increasing your Sharpe ratio at all?
• Yes, it might increase the return, but it does increase our risk.

Transcript Highlights:

• What we've done in OPA is that the federal government has now increased and made the increased standard
• increase.
• But we also saw tribal governments increase rates in the last couple of years, but I would put that in
• in provider rates.
• Do we help hospitals stay open by increasing the provider rates? And do we keep that steady?

Transcript Highlights:

• Uh we're also increases in fees.
• Section 31 increases the fees for solicitors. Section 32 increases the fees for multiple locations.
• ><00:24:26.480> uh<00:24:26.640> from increasing the tuition minimum uh from increasing
• So just very large increases in enrollment and then also increases in tuition and fees.
• So just very large increases in enrollment and then also increases in tuition and fees.

Keywords: 1187, senate, all

Transcript Highlights:

• Now, why would the in-city rates increase? You say that that will pay for the out-of-city rates?
• Because when this rate was adopted by the City of Tucson Mayor and Council, instead of increasing rates
• But what I am saying is that yes, the City of Tucson has adopted a rate in August of 2025 that increases
• the cost for out-of-city customers and slightly reduces the amount of rate increase that went to in-city
• But this complicated rate-setting mechanism, which nobody understands, and was just an excuse to increase

Bills: HB2042, HB2052, HB2055, HB2056, HB2094, HB2098, HB2185, HB2328, HB2758, HB2798

Keywords: solar radiation management, environment, prohibition, Arizona Revised Statutes, public health, complaint process, Attorney General, groundwater management, water conservation, irrigation, water supply, brackish groundwater, water supply development, desalination, water infrastructure, financial assistance, environmental reviews, brackish water, groundwater, water resources

Summary: The committee first received an update from Arizona Department of Water Resources Director Tom Buschatzky on Colorado River negotiations and post-2026 operating rules. He described the legal framework governing Arizona’s allocation, argued that Arizona and the lower basin have already made substantial conservation cuts, and said the upper basin is pressing positions Arizona views as inconsistent with prior Supreme Court rulings. He emphasized the need to move water from upstream reservoirs to Lake Mead, warned of continued shortage risk, and said the state is seeking an equitable deal through ongoing federal and interstate negotiations. Members asked about outside water use, tourism and recreation impacts, and tribal water rights, including the Navajo-Hopi-San Juan Southern Paiute settlement. Buschatzky said the state’s delegation and bipartisan support have been helpful and urged continued public and legislative backing. The committee then heard House Bill 2758, which would expand McMullen Valley groundwater transportation authority and add related requirements and guardrails, including an amendment increasing the La Paz County transportation cap from 10% to 50% of the annual volume and adding conditions for sales or leases from historically irrigated acres. Supporters, including bill sponsor advocates, the Arizona Municipal Water Users Association, and the Home Builders Association, said the bill would create a lawful, regulated transfer option similar to the Harquahala model, support housing growth, and include oversight through hydrologic studies, pumping limits, and monthly reporting to ADWR. Opponents, including La Paz County Supervisor Holly Irwin’s statement, local residents, Sierra Club, and rural advocates, argued the bill would accelerate aquifer depletion, harm private wells and subsidence conditions, and benefit a New York hedge fund at the expense of rural communities. After debate, the committee adopted the Griffin amendment and then passed HB 2758 as amended on a 6-4 due-pass vote. The committee next took up House Bill 2098, which would modify bonding authority and public hearing notice requirements for county water augmentation authorities and allow local repayment agreements with WIFA. Pinal County Supervisor Stephen Miller and other supporters said the bill would clean up statutory language so the Pinal County Water Augmentation Authority can finance future water augmentation and infrastructure projects, including potential Bartlett Dam-related work, and better prepare for future Colorado River uncertainty. The Home Builders Association also supported the bill, saying it included proportionality protections for private utility water charges. The bill was moved for a due-pass recommendation and the committee proceeded to a roll call vote, with the transcript ending before the final vote result was shown.

Transcript Highlights:

• Now, what's really frustrating for Blue Cross is we just increased all of our rates.
• And what this will require us to do is increase the reimbursement rates so that everyone's paid like
• And what this will require us to do is increase the reimbursement rates so that everyone's paid like
• We're seeing requests now over 600% of Medicaid, Medicare reimbursement rates as requests for increased
• What I don't know is whether or not United had underlying increased the base rates or adjusted.

Bills: HB2176, HB2333, HB2435, HB2447, HB2617, HB2683, HB2686, HB2725, HB2726, HB2906, HB2953, HB2958

Keywords: health care, licensure, complaints, investigation, safety, patient care, regulatory compliance, prosthetics, orthotics, health insurance, Medicare, medical necessity, disability rights, coverage, reimbursement, internationally trained physicians, medical board, clinical training, provisional license, healthcare workforce

Summary: The committee heard and acted on several health care bills. HB 2726 would require Access contractors to cover diagnosis and treatment of mild obstructive sleep apnea, including a new prescription tongue-stimulation device; supporters said it offers an effective, less burdensome alternative to CPAP and could improve adherence and outcomes, while Access was neutral and raised concerns about cost and bypassing its normal clinical review. The committee adopted the Bliss amendment and then approved HB 2726 as amended on an 8-4 due-pass vote. HB 2435 would create a pathway for internationally trained physicians to receive a provisional Arizona medical license, with a later amendment adding a four-year supervised rural practice requirement and automatic conversion to a full license if criteria are met. Supporters argued it would help address severe physician shortages in rural and underserved areas, especially for cardiology and other specialties, and several doctors testified about their experience and the need for more access. Opponents, including the Arizona Medical Board, said the state already has a case-by-case licensure process for foreign-trained physicians and warned the bill could weaken safeguards and allow insufficiently vetted applicants. After adopting the amendment, the committee approved HB 2435 as amended on a due-pass recommendation. HB 2958 would require Access to cover comprehensive dental care for pregnant women age 21 and older, with a $500,000 pilot program and reporting requirements. The sponsor and public health advocates said preventive dental care during pregnancy can reduce infections and improve maternal and infant outcomes, and the bill drew broad support from health and advocacy groups. The committee passed HB 2958 on an 11-1 due-pass vote. The committee also approved HB 2176, which changes criteria and timelines for health care institution licensing complaints and informal dispute resolution, with supporters saying it would improve transparency and predictability for hospitals while preserving enforcement authority. Finally, the committee heard HB 2447, which would bar insurers from paying certified registered nurse anesthetists less than physicians for the same anesthesia service; opponents argued it would interfere with contract negotiations and raise costs, while supporters said insurer reimbursement cuts are harming rural access and shifting costs to hospitals. The transcript ends during testimony on HB 2447, before any committee vote on that bill.

Transcript Highlights:

• . rate. rate.
• per student increase. per student increase.
• If you look at the 2018 cohort, you can see that, and we've increased our six-year completion rate by
• So, UK and UofL have to beat those above-average growth rates in order to increase their share.
• average growth rates in order to<01:17:15.720> increase<01:17:16.160> their<01:17:16.320

Keywords: 958, all

Summary: The House Postsecondary Education Committee held its first-ever meeting and first meeting of the session, with Chairman Tipton outlining committee procedures, attendance rules, and the process for submitting committee substitutes. After a roll call confirmed full attendance, the committee heard a presentation from Senator David Givens on the history and purpose of Kentucky’s performance-based funding model for postsecondary education. Givens said the model was created to replace an older “shares” approach that distributed funds based largely on prior-year allocations, and argued the new system better aligns funding with student success and the state’s long-term educational attainment goals. Council for Postsecondary Education President Aaron Thompson and CPE staff then explained the model in more detail. They said the system was designed to address long-standing funding disparities among institutions, reward outcomes such as degrees, credit-hour progression, and completion in high-demand fields, and support the state’s “60 by 30” goal of having 60% of Kentuckians hold a postsecondary credential by 2030. Thompson said Kentucky is now at 56.2% attainment, above the national average, and highlighted gains in graduation and retention rates, lower student borrowing, and improved completion outcomes. He also emphasized that the model is part of a broader strategy that includes affordability, adult learners, low-income students, and wrap-around support services. CPE staff described the work group process that developed and periodically revises the model, noting that the General Assembly created the framework in House Bill 303 and later enacted Senate Bill 153 and Senate Bill 191 to codify changes. They explained that in 2016 the legislature carved out about 5% of institutional budgets, roughly $43 million, to be redistributed through the new model, and that the model has been reviewed every three years with changes made each time. Recent revisions included increasing the student-success weight, adding a premium for low-income students, creating a premium for adult learners, and redefining underrepresented students as first-generation college students. No votes were taken at this meeting, and the committee adjourned after the informational presentation and discussion.

Transcript Highlights:

• Finally, the bill also sets the reimbursement rate for that pre-65 at the lowest rates, which also exacerbates
• We have never seen rates increase by that much.
• The increase in workforce, in turn, increases the number of clinical supervision sites available for
• So there is a significant increase.
• Why not get the same rate?

Keywords: 1182, all

Summary: The committee heard House Bill 2433, which would require insurers offering Medicare supplement policies to people 65 and older to also offer them to Medicare beneficiaries under 65 with ALS or end-stage renal disease, with enrollment periods and premium protections tied to 65-year-old rates. Supporters, including dialysis and ALS advocates, said the bill would help a small population facing high out-of-pocket costs and could improve access to transplants and care; opponents argued it would shift costs onto older seniors and raise Medigap premiums. The committee recommended the bill do pass on a 12-0 vote. The committee also heard House Bill 2593, appropriating $1.5 million to the University of Arizona for the Arizona Perinatal Psychiatry Access Line. The sponsor and physicians testified that the line helps obstetric and pediatric providers quickly consult on perinatal depression, postpartum psychosis, suicidality, and other mental health crises, improving outcomes for mothers, children, and families and reducing costly emergency and crisis care. The bill received a do pass recommendation on a 10-1 vote. House Concurrent Resolution 2013, proclaiming June 2026 as Celebrate Life Month, drew emotional testimony from a young woman with spina bifida and another speaker supporting the sanctity of life. Some members objected that the state should focus on practical supports such as paid leave, child care, and health care access, while others supported the resolution as a statement of human dignity. The resolution passed the committee 7-5. The committee then approved House Bill 4010, creating a Board of Genetic Counselors and licensure standards, after testimony from genetic counselors and a patient advocate about the need for qualified counseling and better access; it passed 11-1. Later, the committee approved House Bill 2196, which would require pharmacy benefit managers to reimburse non-affiliated pharmacies at least their acquisition cost and pay a dispensing fee, and establish an appeals process. Independent pharmacists and their coalition said PBM practices are driving closures and unfairly favor affiliated pharmacies, while PBM and employer representatives warned of major cost increases and said the bill would interfere with private contracts; the bill passed 11-1. The committee also adopted a strike-everything amendment to House Bill 2182 requiring insurers and health plans to report claims denial and prior authorization data to DIFI, and then gave the amended bill a 12-0 do pass recommendation. Finally, the committee approved House Bill 2189, directing the Board of Nursing to update rules for licensed health aides and collect annual data, with the sponsor and board staff saying it would help implement routine ventilator care in the home; it passed 12-0. The committee then began hearing House Bill 2404, a strike-everything amendment on inter-facility transports for behavioral health patients, but the transcript cuts off before action on that bill.

Transcript Highlights:

• There's a 52% decrease in substance use, and their hours worked are increasing and their income is increasing
• We've increased waiver utilization, and we've increased provider participation.
• And we had an approval rate of 55.2%. In 2025, we had 33 requests and an approval rate of 69.7%.
• In summary, we've increased federal funding for North Dakota, more support, In summary, we've increased
• As of July 1st, with our inflation increases, that rate will go to $165.99.

Keywords: 908, all

Transcript Highlights:

• I I don't know how or retention rate.
• > the<00:25:56.320> current that's an increase from the current that's an increase from
• these rates constant. these rates constant.
• We showed here the single rate.
• some of that increase into 2026.

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:

• Because you said it would limit rate caps, rate caps in specific, along with a regulatory regime that
• Are they high default rates? High litigation rates? I don't have that information.
• The committee substitute does remove the rate.
• And so, yeah, we're experiencing price increases.
• Compare interchange rates to rises in retail prices, both in terms of dollars and rate of increase.

Bills: HB245, HB700, HB2783, HB3526, HB3900, HB4061, HB4124, HB4166, HB4395, HB4534, HB4609, HB4641, HB4736, HB4738, HB4739, HB4945, HB5015, HJR175, HB245

Keywords: military service, retirement, law enforcement, custodial officer, Employees Retirement System, commercial financing, brokers, registration, disclosures, finance, consumer protection, fees, deferred compensation, automatic participation, county employees, payroll deductions, retirement plans, fiscal transparency, local government, bond issuance

Transcript Highlights:

• At one point, it was a rate, so the rate was frozen.
• At one point, it was a rate, so the rate was frozen.
• <01:31:20.320> of<01:31:20.960> each<01:31:21.280> rate differences and increases
• of each rate differences and increases of each rate uh<01:31:21.960> from<01:31:22.239> 2017
• increase District adequacy the rates increase District adequacy the rates that<01:34:22.000>

Keywords: 928, house, all

Summary: The Department of Education’s Bureau of School Finance provided an adequacy-funding training for Division II, led by Mark Mello. He walked the committee through the adequacy formula using Albany, Allenstown, and Alton as examples, explaining average daily membership, base adequacy aid, and differential aid for free/reduced-price meals, special education, and English language learners. He also noted a recent change requiring home-education differential aid and emphasized that these aid streams are generally unrestricted district funding rather than money tied to specific students or programs. A major focus was the ongoing litigation over the adequacy base amount and the statewide education property tax, or SWEPT. Mello explained the historical basis of the current base amount, the 2008 legislative report that set the original methodology, and the later court ruling that the adequacy amount should be $7,356, which is now before the Supreme Court. He also described how SWEPT currently raises a fixed statewide amount of $363 million and how that revenue is used to offset the state’s adequacy obligation. For the example towns, Albany and Allenstown receive state adequacy grants because their SWEPT revenue is below their calculated adequacy cost, while Alton is an excess SWEPT community because its local SWEPT revenue exceeds the cost of adequate education. The discussion then turned to the pending “excess SWEPT” issue in the Supreme Court and what would happen if excess collections had to be remitted to the state. Mello said the Department is preparing a hypothetical walkthrough and explained that, if the court upholds the Superior Court ruling, DRA would likely be directed to collect excess SWEPT. Members raised concerns about whether SWEPT must be used for educational purposes and about the cash-flow burden on towns if money had to move from municipalities to the state and then back to districts. Mello and members discussed possible administrative workarounds, such as credits against other state aid distributions, and noted that the committee would continue reviewing the mechanics if the court decision comes down during budget work.