Transcript Highlights:

• So if the appropriation is a little bit higher than the actual cash balance, that means you're going
• fund goes into the red, obviously they have the spending authority to do that, but where does the cash
• Does it end up coming out of the general fund anyway, or where does that actual cash come from if they
• So the cash went into the Water Pollution Control Fund, and that is where those monies have sat until
• So the cash went into the water pollution control fund and that is where those monies have sat until

Summary: The Joint Finance-Appropriations Committee heard budget presentations for the Endowment Fund Investment Board, the Department of Lands, and the Department of Environmental Quality. The EFIB presentation emphasized its small staff, low administrative costs, and a modest request for a laptop replacement. The Department of Lands presentation focused heavily on fire suppression funding, the fire suppression deficiency fund, and the agency’s endowment and forest management work. Director Dustin Miller said 2025 fire costs were just over $40 million, noted that the Legislature had previously funded the deficiency account, and warned that current holdbacks could reduce staffing for fire operations, especially in eastern Idaho. He also explained a proposed shift of 1.25 FTE and $160,000 from the Abandoned Mines Lands Fund to the Navigable Waterways Fund, and discussed House Bill 511 as a possible future fire-preparedness funding source. Committee members asked detailed questions about how the fire suppression deficiency fund works, when it can be used, and whether it can cover prevention or only active fires. Staff explained that the fund is for active suppression and that any negative balance would later be settled through a supplemental request. Members also asked about staffing, vacancy rates, and the impact of budget reductions on fire readiness and forest health work. Miller said the agency had filled many key vacancies but still faced recruitment challenges, and he described the Eastern Idaho Forest Protective District and the agency’s growing Good Neighbor Authority work with the U.S. Forest Service. The Department of Environmental Quality presentation covered staffing, water infrastructure funding, loan and grant programs, air and water quality, and solid waste oversight. Director Jess Byrne said targeted pay increases had reduced turnover and vacancies, and that DEQ had distributed more than $835 million in grants and low-interest loans over five years, mostly to small communities. He also said the agency has fewer staff than 25 years ago despite a much larger population, leading to permit backlogs and reduced monitoring. Byrne explained that the Drinking Water Loan Fund is built from federal capitalization grants, state match, and repayments, and that its rising balance reflects awarded but not yet reimbursed projects rather than unused money. He also said DEQ is considering fee increases in air quality and drinking water programs, and supported a proposed solid waste transfer only if it includes a fee structure. No votes were taken, and the committee adjourned after the presentations and questions.

Transcript Highlights:

• He said his question probably centers around cash flow.
• You know, I'll make the payment, then I'll draw it down from CMS.
• And Donna, Representative Berg brought up a good phrase called cash flow. Thank you.
• And Donna, Representative Berg brought up a good phrase called cash flow.
• You know, they're not flush with cash.

Summary: The Appropriations Division met in a work session on the draft Rural Health Transformation appropriations bill, 25.1392.01000, with no public testimony taken. Legislative Council and the Department of Health and Human Services walked through the bill, which would appropriate about $397.8 million in federal grant funds over two federal fiscal years, provide transfer authority, allow certain federal funds to be used for salaries and wages without counting against existing transfer limits, and authorize OMB to adjust other agencies’ spending authority if they receive grant awards through HHS. The bill also includes several temporary statutory exemptions to help implement the program, plus recipient acknowledgement/reporting requirements, periodic reports to Legislative Management, and an immediate effective date upon filing. Committee discussion focused heavily on how the federal rural health transformation money can be used and administered. Department officials explained that CMS will review projects for allowability and sustainability, that the state has flexibility to move funds among categories, and that the grant is limited to 10% administrative costs. Members asked about whether the funding could support renovations, equipment, ambulances, bulk purchasing, food distribution, and other rural health ideas, and were told many details will depend on CMS approval and the eventual applications. Questions also addressed cash flow, timing of obligations and reimbursements, FTE funding, and whether grant recipients should be told the program will not continue beyond the federal period; officials said the language is meant to prevent expectations of automatic continuation, not to bar future legislative action. The committee also discussed the bill’s use of a two-year appropriation amount, with staff explaining that the state must appropriate enough authority to cover the federal grant cycle and that unused authority would lapse if the full amount is not received or spent. Members raised concerns about whether the bill’s language could limit creativity or future program design, but department officials and several members emphasized the need for flexibility because CMS may reject overly specific directives. After discussion, the committee voted to recommend the bill draft to the full committee; the motion carried on a roll call vote, and the chair said the full Joint Appropriations Committee would take up the bill at the special session next week.

Transcript Highlights:

• That avoids double payments, it avoids incomplete payments, and helps us make sure we know where these
• If we go to a monthly payment instead of an every other week payment, how will that affect your cash
• Instead of an every other week payment, how will that affect your cash flow?
• One, it creates a kind of predictable cash flow system so that we don't have two kinds of cash flow systems
• Every other... where she is in order for the payments to go forward every single day.

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several gallery introductions before taking up Committee Substitute for Senate Bill 168, the Tristan Murphy Act, on mental health. Senator Bradley explained that the bill is intended to divert clinically appropriate defendants with mental illness from jail to treatment, create pretrial mental health diversion programs, expand grant uses for mental health and substance abuse reinvestment, require evaluations and treatment follow-up in certain probation and prison settings, add Hillsborough County to a forensic hospital diversion pilot, and establish a Florida Behavioral Health Data Repository. Senators from both parties spoke in support, emphasizing treatment over incarceration, public safety, and the Murphy family’s role in the bill. The Senate passed the bill 37-0 and then recorded 37 co-sponsors. The chamber then moved into presentations on SB 2500, the 2025-26 General Appropriations Act. Chair Hooper said the Senate budget totals $117.4 billion, reduces overall spending from the prior year, maintains reserves, keeps employee health contributions level, and includes major investments in water quality, transportation, education infrastructure, and nearly $1 billion in education capital outlay. Committee chairs outlined their portions of the budget, including increased funding for K-12 schools and scholarships, higher education workforce programs, Medicaid and health services, corrections and courts, transportation and housing, and environmental restoration such as Everglades and water quality projects. Members then asked extensive questions, especially about education funding, school choice, AP/IB and accelerated programs, the Family Empowerment Scholarship, and the FEFP calculations. Senator Burgess repeatedly explained that scholarship funding is being moved “below the line” to improve tracking and that the Senate position is to preserve funding while giving districts more flexibility. Senators also questioned the APD wait list for disability services, opioid settlement spending, arts funding, the My Safe Florida Home condo pilot, and proposed IT and agency restructuring. Several chairs said some issues would be resolved in conference, and no final vote on the budget was taken in the portion provided.

Transcript Highlights:

• From initial annual payments over $1 million per year to the payment this year of $767,527.
• From initial annual payments over $1 million per year to the payment this year of $767,527.
• will</c><01:39:44.159><c> not</c><01:39:44.320><c> be</c> Payments on that bond will not be Payments
• </c> scheduled payments throughout the year. scheduled payments throughout the year. um<01:56:21.440>
• </c><01:57:02.400><c> It</c> improves cash flow temporarily. It improves cash flow temporarily.

Committee: House Finance

Transcript Highlights:

• She said she made cash payments. I tried to get proof from her that the payments were made.”
• Respondent filed an answer recommending payment in that amount.
• What was a warrant issued for payment to them? This is not a reissuance.
• this will So this is coming from the teachers' payment?
• And I have the ledger here that shows that they made payments, each payment. No further questions.

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT

Summary: The committee first reviewed litigation reports from the Department of Labor and Licensing involving wage claims brought under the Arkansas Minimum Wage Act. Members questioned the department’s authority, jurisdiction, use of attorney fees and costs, and whether defendants had to be licensed. The department explained it has long enforced wage and overtime laws, that the claims were small-dollar cases handled by investigators and counsel, and that one case had been paid and dismissed while others were unresolved or had service issues. The committee voted to review or batch-file the labor cases after discussion. The University of Arkansas System then reported three pending lawsuits: an age- and race-discrimination claim by a tenured professor that was resolved early; an ADA/FMLA retaliation claim by a former employee that survived in part on a motion to dismiss and was moving into discovery; and a Section 1983 claim against a UAMS sergeant arising from a parking-ticket dispute, with the university explaining that only punitive damages could create personal exposure for the officer. The committee reviewed each report and voted to accept them. The Department of Finance and Administration presented a proposed tax settlement reducing a sales-and-use tax assessment from about $48,000 to $20,000 and waiving interest and penalties, which the committee approved for review. The Claims Commission then presented several claims: an unpaid salary differential for a Department of Health employee, reissued warrants, unpaid DHS bills, and multiple negotiated settlements involving ATRS, UAMS, Arkansas State Police, and ARDOT. Members approved or affirmed most of these items, including a $65,000 settlement in the Tetronics/ATRS matter, a $150,000 medical-negligence settlement, and several vehicle-accident settlements. The most extended debate involved a tax-delinquent property sale claim by Sharon Greer and relatives. The claimant argued they were not properly notified and sought the $4,200 excess from the 2009 sale. Land Commissioner counsel explained the excess had escheated to the county after the statutory claim period expired, while members debated sovereign immunity, standing, heirs, and whether the committee could or should award money anyway. The committee ultimately chose to hold the matter over for further review in a future joint session rather than decide it immediately. The committee also heard appeals from dismissed claims, including a UAMS medical-negligence claim, a land-sale notice claim, a pothole claim against ARDOT, and a judicial-immunity claim against the Court of Appeals; most dismissals were affirmed, and the Simpson matter was held over for additional review after the claimant testified.

Transcript Highlights:

• WHAT HAPPENS IS, YOU CREATE A WALLET AND YOU BASICALLY GO TO THE ATM, PUT CASH IN AND PURCHASE BASICALLY
• WITHDRAW THE CASH FROM THE BANK AND PUT IN THE MACHINE.
• SHE WITHDREW $77,000 WORTH OF CASH AND SHE CAN'T TELL THE BANK EMPLOYEES BECAUSE THEY ARE PROBABLY IN
• WHAT ABOUT – WHAT ABOUT OVERPAYMENTS OF CLAIMS OR INAPPROPRIATE PAYMENTS OF CLAIMS.

Transcript Highlights:

• And they're also doing a cash flow and capitalization requirements study to get up and running.
• And they're also doing a cash flow and capitalization requirements study to get up and running.
• A key one is that it doesn't allow HPIA to accept payment other than by check and in full.
• </c> doesn't allow hpia to accept payment doesn't allow hpia to accept payment other<00:37:54.720><c>
• </c><00:37:56.720><c> in</c> other than by check and in payment in other than by check and in payment

Transcript Highlights:

• where is... 27 so where is that fund a part of the state revenue, the general revenue, or is that a cash
• And so the $49 million there, that's reimbursement or at least reflects the cash fund source.
• The appropriation that's listed on line two is for payments for foster care placements of children who
• Around SSI and state supplemental payments.
• Director Gary, can you talk to me a little bit about the 2019 levee mitigation cash fund?

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• disregard, folks would time out on aid because there is a 60-month time clock limit for receiving cash
• disregard, folks would time out on aid because there is a 60-month time clock limit for receiving cash
• And are we confident that the first loan payment will happen next year?
• Can you take out of the fund to pay for the workforce continuing payment? We did.
• One is to limit occupational license suspensions for past due child support payments to noncustodial

Summary: The hearing began with an overview of the California Health and Human Services Agency, which described its 2026-27 budget, major departments, and strategic priorities, including behavioral health, housing and human services integration, children and youth, and aging/disability services. The agency also explained a technical CalHHS/CalHires budget adjustment tied to HR1 compliance and eligibility system work. No LAO concerns were raised on that item. The committee then heard from the Office of Youth and Community Restoration on its budget, its SB 823 realignment report, and related issues. OYCR said county-based realignment has generally succeeded but outcomes and readiness vary widely, and it recommended more climate surveys, youth advisory councils, stronger behavioral management, better programming, improved transition planning, and integrated longitudinal data systems. Members pressed OYCR on “net widening,” county-by-county trends, and the gap between the detailed recommendations discussed in hearing and the more general recommendations in the public report. OYCR also described problems with federal Title II grant timing and a pending $14 million administrative funding adjustment, and discussed implementation of the juvenile justice realignment block grant formula. The Ombudsperson division separately requested two new positions due to rising complaints, site visits, and records-access disputes with counties; LAO noted the proposal would create ongoing General Fund costs. Several other departments presented budget change proposals. The State Council on Developmental Disabilities requested $730,000 General Fund ongoing to cover an interagency administrative support gap with DSS; LAO had no concerns. EMSA presented its department overview, said its AB 716 ambulance-rate report has been delayed after resources were reduced, and requested funding for disaster-response vehicle replacement, IT security assessment work, and additional HR/legal staff; members questioned delays, compliance, and the ongoing General Fund impact. The Department of Community Services and Development sought reappropriation of LIWIP funds and explained a new Proposition 4 process for continuing the farmworker housing component. The Department of Rehabilitation requested authority for $60 million in additional federal funds and 54 positions to meet growing vocational rehabilitation demand, with no General Fund impact. The Department of Child Support Services presented its budget and a supplemental report on full pass-through of child support collections. Members questioned why local agency funding was being restored despite declining caseloads, and staff explained that staffing costs have risen faster than caseload declines and that additional funding is needed to maintain service levels. The supplemental report estimated full pass-through would cost about $150 million General Fund annually, or about $80 million for a state-and-county portion, with $3 million to $5 million in automation costs. Finally, the Department of Public Health gave a broad overview of its $5.1 billion budget and its State of Public Health report, highlighting improved mortality and life expectancy, declining overdose deaths and STI rates, persistent racial and regional disparities, and increasing public health emergency demands. CDPH also warned that federal funding threats and policy changes are creating major uncertainty for state and local public health systems.

Transcript Highlights:

• They can't get automatic payments.
• They can't get automatic payments.
• They can't get automatic payments.
• and her car payments?
• </c> her bill payments and her car payments? her bill payments and her car payments?

Committee: House Children and Family Law

Transcript Highlights:

• payment payment so<03:34:58.279><c> the</c><03:34:58.520><c> legislation</c><03:34:59.239><c> is</c>
• payment facilities, uh, how do you respond to their concerns that the top payment source, the ones who
• payment facilities, uh, how do you respond to their concerns that the top payment source, the ones who
• </c><04:07:12.920><c> problem</c> that thirdparty payment problem that thirdparty payment problem that
• </c> removes the third party pay payment removes the third party pay payment system<04:10:29.159><c>

Committee: House Health, Human Services & Elderly Affairs

Transcript Highlights:

• inability of local governments to pay exact change to the last cent for residents paying a bill in cash
• For example, exact change to the last cent for residents paying a bill in cash.
• For example, when property taxes are paid in cash, the county tax collector must invest time, resources
• It caps consultant payments at 5% of the tax revenue being shared, or $250,000, whichever is less.
• Of the tax revenue being shared, or $250,000, whichever is less, and generally limits those payments

Summary: The Assembly convened with a quorum call, prayer, and Pledge of Allegiance, then handled a large procedural and floor agenda. Members suspended rules for adjournments in memory, guest introductions, and expedited committee action, rereferred AB 1199 to Health and AB 2728 to Local Government, and removed several items from calendars or returned bills to the Senate at authors’ requests. The chamber then moved through concurrence and third-reading files, with many measures passing on unanimous or near-unanimous votes, including AB 230 on Pierce’s disease control, AB 1636 on a Cerritos College seamless enrollment pilot, AB 1982 on alcoholic beverages, AB 2120 on school district employees, AB 2413 on political reform and billboard use, AB 2437 and AB 2453 on vehicles, AB 2596 on housing, AB 1760 and AB 1873 on technical clarifications, AB 2312 on tidelands, AB 2390 on housing cleanup, AB 2685 and AB 2778 on agriculture, and ACR 194 on Women’s Equality Day. The Assembly also adopted several resolutions and Senate measures. HR 112 designating Black Music Month drew extensive remarks about Black artists’ influence and was adopted with 62 coauthors. HR 132 declaring September Young Women’s Reproductive Health Awareness Month was adopted with 50 coauthors. SJR 8 urging federal immigration reform passed 45-2, with supporters emphasizing immigrant contributions and the need to modernize the registry system. SCR 7 on permanent standard time was debated at length, with supporters citing health benefits and opponents warning about darker mornings and voter intent; the resolution ultimately passed 41-3 after a roll call. Other Senate bills passed included SB 105 on penny rounding for local agencies, SB 928 on AI guardrails in CSU classrooms, SB 1038 on CalPERS audit notices, SB 308 on community college reporting, SB 1172 on tax-sharing consultant fees, SB 1159 on AI-generated public participation, SB 1055 on flood project procurement, SB 1285 on juvenile dismissals, SB 1274 on industrial cities and transportation funding, SB 965 easing library card access for 16- and 17-year-olds, SB 1375 creating a narrow CEQA exemption for certain transit projects, SB 952 on clean energy accounting for water agencies, and SB 917 expanding farmers market wine sales eligibility. Several measures drew notable opposition or discussion. On SB 965, one member objected that the bill should preserve parental decision-making, while supporters argued it would remove an unnecessary barrier to library access. On SB 952, one member criticized state energy policy and the bill’s project labor agreement, but the measure still passed 64-1. On SB 1375, supporters framed the bill as reducing duplicative environmental review for major transit projects like Diridon Station while preserving other protections. The chamber also added coauthors to consent-calendar resolutions and adopted the second-day consent calendar items without objection. The meeting concluded with multiple adjournments in memory, including tributes to Eric L. Washington Jr., Ivan Garza, Darryl Preston Jackson, Richard “Dick” Oliphant, and former Madera Mayor Santos Garcia. Members described Washington as a community leader and peacemaker, Garza as a young athlete whose life was cut short, Jackson as a mentor and founder of the 1020 Club, Oliphant as a civic leader who helped shape the Coachella Valley, and Garcia as a labor advocate and public servant who fought for working families and helped reopen Madera Community Hospital. The Assembly observed moments of silence in their honor before adjourning.

Transcript Highlights:

• inability of local governments to pay exact change to the last cent for residents paying a bill in cash
• For example, exact change to the last cent for residents paying a bill in cash.
• For example, when property taxes are paid in cash, the county tax collector must invest time, resources
• It caps consultant payments at 5% of the tax revenue being shared, or $250,000, whichever is less.
• Of the tax revenue being shared, or $250,000, whichever is less, and generally limits those payments

Transcript Highlights:

• Within the Department of Revenue, there is $75.2 million for payments to fiscally constrained counties
• Within the Department of Revenue, there's $75.2 million for payments to fiscally constrained counties
• And, you know, outside of having cash or dollars in a trust fund today, you know, we don't have much
• And, you know, outside of having cash or dollars in a trust fund today, you know, we don't have much
• But outside of that and outside of, you know, the state or the department using cash, it's probably not

Summary: The Senate took up the 2026-2027 budget package, beginning with an overview of the $115 billion General Appropriations Bill (SB 2500/HB 500). Appropriations Chair Hooper said the budget is smaller than last year’s, maintains strong reserves, and includes a 3% pay raise for all state employees and 5% raises for state law enforcement, firefighters, correctional officers, and park rangers. Committee chairs then highlighted major spending in their areas, including $34.9 billion for Pre-K-12 education, $11.9 billion for higher education, a $2.1 billion-plus increase in health and human services, $7.9 billion for criminal and civil justice, $16.8 billion for transportation/tourism/economic development, and major environmental and regulatory investments such as Everglades restoration, water quality, and land acquisition. Members asked detailed questions about several items. Topics included the Emergency Management Trust Fund, arts and cultural grants, Florida Forever land acquisition versus conservation easements, teacher salaries and charter school funding, New College funding, ADAP/HIV drug assistance, Medicaid rate reductions for non-critical access hospitals, DOC operational deficits and inmate health/food costs, judicial staffing, and school enrollment supplements. Chairs explained that some reductions reflected shifts in how scholarship and categorical funds are tracked, that the ADAP appropriation would take effect immediately upon enactment but would only cover part of the year, and that hospital reductions were tied to a broader DPP funding increase. Questions also covered lottery staffing, concealed carry licensing workload, and whether vacant positions were being eliminated as part of budget right-sizing. After the budget discussion, the Senate substituted House bills for the Senate budget bills and adopted amendments placing the Senate language onto the House vehicles. The chamber then passed HB 500, HB 503, and HB 5201, and agreed to conference on each. It also passed SB 7028/HB 5205 on retirement, SB 2506 on fuel taxes, SB 2508 on the state agency law enforcement radio system, SB 2510/HB 5401 on court trust funds, SB 2512 on judgeships, SB 2514 on K-12 education, SB 2516 on higher education, and SB 2518 on health, with each bill passing by unanimous or near-unanimous votes and then being sent to conference or requested of the House for concurrence.

Transcript Highlights:

• Within the Department of Revenue, there's $75.2 million for payments to fiscally constrained counties
• Benefits now because the DOH is cutting off premium assistance payments.
• And, you know, outside of having cash or dollars in a trust fund today, you know, we don’t have much
• But outside of that and outside of, you know, the state or the department using cash, it’s probably not
• But outside of that and outside of, you know, the state or the department using cash, it's probably not

Summary: The Senate took up the 2026-2027 budget and related implementing bills. Appropriations Chair Hooper presented a $115 billion General Appropriations Bill, saying it reduces overall spending from the prior year, preserves reserves, and includes a 3% raise for state employees and 5% raises for state law enforcement, firefighters, correctional officers, and park rangers. Committee chairs then outlined major budget areas, including K-12 education, higher education, health and human services, criminal and civil justice, transportation/tourism/economic development, and environmental/agricultural agencies. Highlights included increased funding for school safety, teacher and scholarship funding, workforce education, Medicaid and kid care, corrections operations, judgeships, affordable housing, hurricane recovery, Everglades and water quality projects, and arts and cultural grants. Members asked detailed questions about several items. Senators discussed the Emergency Management Trust Fund, cultural arts grant allocations, Florida Forever land acquisition versus conservation easements, teacher salary support, charter school capital outlay funding, Bright Futures and EASE funding, New College funding, DOC deficits and inmate health care/food service costs, the ADAP HIV drug program, Medicaid reductions for non-critical access hospitals, and the use of opioid settlement and COVID relief funds. Chairs explained that some apparent reductions reflected shifts below the line or reclassification, that the ADAP appropriation would only cover about six months, and that some vacant positions were being removed as part of a right-sizing effort. Questions also covered lottery staffing, concealed weapons permit processing, elections security funding, and arts grant selection and proviso language. The Senate then substituted House bills for the Senate budget and implementing measures, amended them into the Senate posture, and passed them. HB 5001 (the appropriations bill), HB 503 (implementing bill), HB 5201 (collective bargaining), and HB 5205 (retirement) all passed 36-0 and were sent to conference. Other budget-related bills also passed, including SB 2506 on fuel taxes, SB 2508 on the state agency law enforcement radio system surcharge, SB 2510 on court trust funds, SB 2512 creating 13 circuit and 12 county judgeships, SB 2514 on K-12 education, SB 2516 on higher education, and SB 2518 on health. Most of these passed unanimously, with the Senate requesting the House either pass the Senate versions or include them in budget conference.

Transcript Highlights:

• Sparks: Madam Chair, I was going to suggest that maybe we talk to Chick-fil-A for some cash.
• Merck is paying Texas a royalty payment, so last quarter our royalty...
• They're paying us about 0.115 percent in royalty payment.
• I think in 2017 or 2019, we would cash out so that they're in a better position to help manage that sort
• of cash out.

Bills: SB623 , SB1266 , SB1310 , SB1373 , SB1580 , SB1952 , SB2032 , SB2269 , SB2544 , SB2653 , SB2796

Committee: Senate Health & Human Services

Transcript Highlights:

• So this really doesn't represent a change in cash flows or anything that...
• So this really doesn't represent a change in cash flows or anything that's in the capital plan.
• And then I will also note that the Municipal Payment Program, which is included in this bill, does implement
• I was referring to the municipal payment program, where municipalities collectively are responsible for

Committee: Joint Joint Committee on Bonding, Capital Expenditures and State Assets

Summary: The Joint Committee on Bonding, Capital Expenditures and State Assets held a public hearing on H. 5279, a bill financing long-term improvements to municipal roads and bridges. MassDOT and A&F testified in support, describing the bill as a more than $5 billion transportation bond package centered on a four-year, $1.2 billion Chapter 90 authorization, plus funding for MBTA rail reliability and modernization, housing-related transportation improvements, a new DCR/MassDOT PRISM program for parkways and other DCR assets, and reauthorizations of the Municipal Pavement Program, Shared Streets and Spaces, and highway programs. They said the bill would support safety, resilience, housing production, and multimodal transportation, and noted that some bonds could be issued as special obligation bonds backed by the Commonwealth Transportation Fund and Fair Share revenues. Committee members asked about the size and structure of the authorizations, the federal match for highway projects, the source of MBTA vehicle procurement, bridge repair needs, and whether the housing-related funds could be used flexibly for items like sidewalks, bike lanes, bus stops, and other local transportation improvements. Administration witnesses said the bill is intended as a temporary refill of existing programs until a larger transportation bond bill is filed next session, that the federal-aid line includes the full spending authority while the state only borrows the 20% match, and that the housing-related program is deliberately broad and not limited to MBTA communities. They also said Chapter 90 includes a road-mile component that especially helps rural communities and that preservation and safety are built into the programs. The Massachusetts Municipal Association also testified in strong support, emphasizing that Chapter 90 is the most important tool municipalities have to maintain the roughly 30,000 miles of local roads and bridges they are responsible for. MMA urged timely passage before construction season and praised the continued $300 million Chapter 90 level, especially the $100 million road-mile distribution that helps communities with large road networks and smaller populations. No votes were taken on the bill, and the hearing concluded with adjournment after testimony ended.

Transcript Highlights:

• So this really doesn't represent a change in cash flows or anything that...
• So this really doesn't represent a change in cash flows or anything that's in the capital plan.
• And then I will also note with the Municipal Payment Program, which is included in this bill, does implement
• I was referring to the municipal payment program, where municipalities collectively are responsible for

Committee: Joint Joint Committee on Bonding, Capital Expenditures and State Assets

Summary: The Joint Committee on Bonding, Capital Expenditures and State Assets held a public hearing on H. 5279, a transportation bond bill financing long-term improvements to municipal roads and bridges. MassDOT and A&F testified in support, describing the bill as a major transportation investment package centered on a $300 million annual Chapter 90 local aid program, with $200 million distributed by the traditional formula and $100 million by lane miles to better support rural communities. They also outlined funding for MBTA rail reliability and modernization, transportation projects that support housing production, a new DCR parkway resilience and safety program, and reauthorizations of existing highway and municipal grant programs such as the Municipal Pavement Program and Shared Streets and Spaces. Witnesses said the bill would help address aging infrastructure, improve safety and resilience, support housing development, and leverage Fair Share surtax revenue through the Commonwealth Transportation Fund. They explained that some authorizations are structured to allow the state to issue special obligation bonds, and clarified that the bill authorizes the full spending amount for federally aided projects even though the state only borrows the 20 percent match, with the federal government reimbursing the rest. Committee members asked about bridge repair needs, the size of the backlog, how housing-related transportation funds would be allocated, MBTA vehicle procurement, and whether rural communities would have fair access to the new funding streams. Several members praised the administration’s financing approach but urged future Chapter 90 increases to keep pace with inflation and requested more attention to rural municipal capacity and bridge safety needs. The Massachusetts Municipal Association also testified in strong support, emphasizing that Chapter 90 is the most important tool for cities and towns to maintain local roads and bridges and urging prompt passage before construction season. No votes were taken; after testimony concluded, the committee adjourned.

Transcript Highlights:

• And with how many people they have enrolled in the program, that’s $1.23 million in cash pay—people that
• And with how many people they have enrolled in the program, that’s $1.23 million in cash pay—people that
• And with how many people they have enrolled in the program, that’s $1.23 million in cash pay—people that
• 33:44.880><c> that</c><00:33:45.000><c> are</c><00:33:45.200><c> maybe</c><00:33:45.360><c> in</c> cash
• pay that's people that are maybe in cash pay that's people that are maybe in a<00:33:45.559><c> high

Summary: The working session focused on the New Hampshire Prescription Drug Affordability Board’s budget request and its recent work. Early discussion centered on a technical question about a statutory dedicated fund for donations: members asked why the budget did not show a line item for accepting donations, and DHHS CFO Nathan White explained that the statute already authorizes the fund, but because no revenue has been received yet, it does not appear in the budget. He said any future donations would go through the normal process under RSA 14:30-a, with fiscal committee and Governor and Council approval and a memo to the Department of Revenue Administration. The chair clarified that the account was not a prerequisite to soliciting donations, and White said the fund would supplement, not replace, General Fund support. Kirk Williamson, the board’s executive director, then presented the board’s mission and budget. He said the governor’s budget provides about $256,500 in the first year and slightly more in the second, all General Funds, and that the board had distributed a technical amendment to continue the executive director position. He described the board’s role as analyzing prescription drug costs, identifying savings opportunities, monitoring market trends, promoting transparency, and making recommendations to the legislature and public payers. He also emphasized that the board operates publicly, with live-streamed meetings and a stakeholder advisory council that includes unions, state agencies, Medicaid, corrections, higher education, and other stakeholders. A major topic was the board’s estimate of $6 million in potential savings, based on Medicare’s newly negotiated prices for 10 drugs. Williamson explained that the board used those federal negotiated prices as a benchmark to estimate what New Hampshire public payers might be missing by not having similar leverage, and said the board is trying to build evidence for future recommendations rather than directly setting prices. Members asked how those potential savings could become actual savings, and Williamson said the board is sharing findings through its advisory council and feedback loops, though it has not yet sent a formal recommendation letter to specific purchasers. He also discussed the difference between pharmacy-benefit spending, which relies heavily on PBM-negotiated rebates, and medical-benefit spending, which is administered differently and is being added to the board’s next report. Williamson highlighted other work, including a model on Humira and a pending legislative effort to improve biosimilar competition, plus a proposed state-backed pharmacy savings card that would be no cost to the state and could save users about $240 per prescription based on Connecticut’s experience. No votes were taken during the session.

Transcript Highlights:

• </c><00:10:48.600><c> that</c> decline in the estimated payments that decline in the estimated payments
• </c> 1% but their estimated payments 1% but their estimated payments increased<00:16:50.199><c> by</c
• or an early payment.
• I know that Representative Opal asked about the liability and estimated payment thing.
• </c> your uh liability and estimated payment your uh liability and estimated payment thing<01:08:35.920

Summary: The committee received a Department of Revenue Administration update from Commissioner Lindsay Stepp focused on revenue estimates for fiscal years 2025, 2026, and 2027. She explained the department’s forecasting method, which uses five scenarios based on the first seven months of actual collections and different assumptions for the remaining months, then selects a reasonable high and low range for FY 25 and applies projected growth rates for FY 26 and FY 27. Members asked several clarifying questions about how the scenarios are chosen and how the estimates relate to economic growth and taxpayer behavior. For business taxes, Stepp reported FY 25 year-to-date collections of $110.3 million, 18.2% below plan and 17.2% below prior year. She said the shortfall reflects both economic conditions and a resetting of estimated payments after unusually strong pandemic-era profits, and noted that the department cannot fully separate changes in taxpayer liability from changes in estimated payment behavior. She said approximately just under $72 million was refunded in FY 24 due to the CCO cap, and that FY 25 year-to-date refunds are at 41.7%. For business taxes, the department’s FY 25 range was based on either continued underperformance versus plan or a return to prior-year levels, with FY 26 and FY 27 growth projected at 3% to 8%. The committee also reviewed meals and rooms tax, tobacco tax, and related trends. Meals and rooms revenue was $6.9 million, or 3.3%, ahead of plan and prior year; the FY 25 gross estimate was $475.894 million, with a net range of about $331.82 million to $335.259 million after municipal transfers and school building aid. Stepp said recent monthly results suggest some fluctuation tied to disposable income, weather, and travel patterns, but no clear sustained decline. Tobacco tax was $18.1 million, 14% below plan and 4.8% below prior year; she said cigarette stamp sales are declining while e-cigarettes and other tobacco products are growing, with FY 25 tobacco revenue projected at $182.5 million to $185.3 million and FY 26-FY 27 growth ranging from -5% to flat. No votes or formal actions were taken.